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Summary of July 2017 Transactions

This month, I have divested StarHub and Keppel REIT from my stock portfolio. The above chart shows my current stock allocation. I am looking at divesting Soilbuild Business Space REIT from my stock portfolio as well but the current share price is not quite right yet and I need to do further research on its recent financial results as well prior to making a sell decision. Lippo Malls Trust was also on my strike off list but it seems that based on dividend yield, it is still yield lucrative based on current share price.

You can read more about my sale transactions this month below.

  1. Goodbye StarHub
  2. Goodbye Keppel REIT

The sale of Keppel REIT has caused my exposure to office REITs to be reduced to 2%. The 2% purely comes from Frasers Commercial Trust. After the sale of Keppel REIT, I will be on a lookout for another quality office REIT to add on to my stock portfolio.

There are no more Telecommunication stocks in my stock portfolio as M1 and StarHub share price starts to either plunge or go into a downtrend. I hope that is not due to the 4th Telco. It seems that SingTel is the sole survivor out of the three right now.

Goodbye Keppel REIT

Keppel REIT Logo

It is another sell transaction for me this month as I divested Keppel REIT from my stock portfolio. Total profit including dividends collected was 26.7%.

After Keppel REIT announced a set of disappointing results on 18th July 2017 due to softening office rents, the share price did not decline as badly. Distribution per Unit (“DPU”) fell 12.77% from 3.29 cents in 1H2016 to 2.87 cents in 1H2017.

Looking at the chart for Keppel REIT share price, it has been on an uptrend over the past 3 months. This proves that the stock market can be irrational. (more…)

Goodbye StarHub

Last week, I have sold off StarHub from my stock portfolio with a profit gain of 50.9% including dividends collected over the years. I guess Telecommunication stocks are not as resilient as everyone think it is. MobileOne has fallen and so has StarHub.

Below are the reasons why I sold off StarHub:-

Decreasing Dividends

Over the last 5 years, this was the first time StarHub has reduced its dividend from 5 cents to 4 cents that was paid out in May. Moving forward, I believe StarHub will continue to reduce its dividends.

Cable TV No Longer the Trend

With the increasing popularity of online video streaming websites such as Netflix, it is threatening the pay TV service business.

Are you still a Hubber?

Gone are the days where if you subscribe to StarHub’s cable TV, mobile line and internet broadband, you get perks or discounts off your bill. It is hard to fulfill the criteria nowadays with more choices out there. You may opt for Netflix instead of cable TV or internet broadband from myRepublic instead of Starhub internet fibre. I guess offering more discounts and perks is not sustainable for StarHub’s business.

Recycling Capital and Wait for Opportunity

I observed StarHub’s share price is on a downtrend, I want to sell it while still making slight profit. The capital plus profits from the sell transaction can be invested in another stock.

 

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