Still need a lot of work on my portfolio watchlist, looking to include shares from other developed nations. I'm paying off the balance transfer faster than I would and maybe do another one using Maybank. In addition, I'm on a steep learning curve for my side venture, as I'm gonna do everything DIY instead of letting people do it for me (more costly), let's see how it goes.
- Buy Kingsmen Creatives at 0.575
- Reasons
- Depressed earnings and dividends, already providing a 4% yield
- Get 4% yield while waiting to recover
- Margins are being squeezed due to a tough retail market for luxury brands, now catering to mid and low retail
- They are expecting a margin of at least 5%, target at 6-8% (have achieved over past 9 years)
- Management is looking to improve further
- Company is in net cash position, with net cash close to half of total equity
- Generating FCF to sustain dividends
Well, that's all for my money right now. Still holding to quite a bit of cash (~43%). I recently tried a balance transfer for fun to pay for the above two positions. Let's see how it works :)
For those of you who wanna see more information, my SGX portfolio is on SGXCafe too! You can find it here.
Hello Azrael!
ReplyDeleteHope the day's going well!
Thank you for sharing your investment analyses as well as insights that you gained from reading the various books! Your blog must've benefitted a lot of people!
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Thanks!
Although there are some good things about Kingsmen I decided to get out of it and sell. I'm quite concerned that their retailer customer base is going to shrink. Although they've got plenty of cash in the bank I have doubts that they're going to hand it back to the shareholders. Time will tell whether I was just being too impatient.
ReplyDeleteHi Jonathan,
DeleteI see it from the point of view that as the economy gets better, they see more orders, plus I feel that with more contracts in as well as events, we would see an uptick.
I got it at a reasonable price, but I do understand your worry. It kind of prevents me from buying much more.
I would also say that time will tell if my outlook is correct. :)