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Summary of October 2016 Transactions

portfolio_201610_october

If you have been following my blog posts, you will know that I have made 3 sell transactions this month. I have sold off Sheng Siong, Cambridge Industrial Trust and MobileOne Limited (M1). My investment thoughts have slightly change a bit this month and I shall share with you why this is so.

Previously, I have been accumulating stocks which means I have always been buying but not selling. Most of the stocks that I have accumulate are either REITS or business trust because that is where the accretive dividend yield is. One of the thing I missed out doing is housekeeping. When more and more stocks get added to my stock portfolio, I find it hard to manage. Certain stocks in my portfolio has under performed but I am not aware. Thus, this month, I decided to do some housekeeping and also reduce the number of stocks in my portfolio. The ideal number of stocks is around 20. Read More

Goodbye M1

M1 Logo

I have been holding M1 for the longest time since 2008 for its good dividend payouts over the years. On 18th October 2016, M1 announced its 3Q2016 financial results. We can see how much the financials have deteriorated. Thus, I made the decision to divest M1 in my stock portfolio.

A telco operator’s revenue is very much predictable based on its prepaid and postpaid revenue. Operating revenue, profit after tax and prepaid, postpaid revenue all fell for M1 over the quarters.

Given the higher risks than benefits, below are few of the reasons I decided to divest M1.

Read More

Slow Growers – M1 Limited

M1 Logo

M1 announced its 2Q2016 unaudited financial results on 15th July 2016. In my previous post, I have classified M1 as a slow grower. In fact, I classify M1, SingTel and Starhub as slow growers. These are the three giants that have dominated Singapore Telco market for years with little or slow growth.

Here is the reason why:

Stable Service Revenue

Service revenue for M1 was stable at S$407.3 million. The main services are handset sales, fixed services such as fibre broadband, international call services and mobile services. This is generally nothing different from what Singtel or Starhub are providing.

Fibre Broadband, Postpaid and Prepaid

Fixed services revenue grew 26.7% to S$50 million with a total base of residential and corporate fibre customers amounting to 145,000. In the same quarter,  M1 added 14,000 postpaid customers and 24,000 prepaid customers. Since the other Telcos are also providing the same services, growing market share is pretty important for M1.

Conclusion

M1 declared an interim dividend of 7 cents. I will continue to hold M1 for its consistent dividend and predictable earnings.

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