For the past months or weeks I have list of stocks that I like to get but did not. So in Year 2021, allocated roughly 50k to indulge myself by casting my net wider for more stocks for diversification and gain some exposure to segments that I have been missing out. Broadly for now, excluded hospitality and transport stocks that are tourists dependent. There could be a recovery theme but feel is not at the right pace. SAT, SIA Eng and STE have dependency too. Commodity, Oil and Shipping industries I have no interests.
Selection edge will be Tech, Diversification, Sustainable Yield, Currency consideration and if possible management.
1. Sheng Siong
Sold some of the this share last year to consolidate the number of my counters as the amount it not huge but to my regret because it shoots up after. This is one thing I learned that don't consolidate for sake of it. After going one round, decide to explore this gain. There is a significant correction from peak though. As a Supermarket business, they also support online order which I find it interesting. With Covid still in play, expectation is the next Q report expects to continue to be colorful. The question is what happen after ? Will they able to continue to perform ? Get some first.
Tech Solution company. Doesn't look like is cheap and do not have a good feel on the company. Will need to do more homework and education to know the company better. Quite opaque to me to understand their operation and future. I won't have much conviction even though I really wish to add a Tech company to my basket but this is out.
This provides roughly 6% yield but there is currency risk due to their properties are in UK. Tenant wise is UK gov on triple net lease. The stock is traded in pound so there is need for special management on the invest money and rate. New IPO risk ? Diversification from Singapore ? Most of the building I see from the photos seems quite old but to be fair freehold afaik. Risk play wise, with Brexit and leadership in the gov, there are good chance GBP will strengthen. For risk adjust a stake as we monitor will be nice. This will help provide a small boost to the average dividend if this works well.
4. Boustead or Boustead Project
With the recent fund setup to hold properties of Boustead project which Boustead is vested, value is unlocked. There is interest due to the high NTA after but the dividend yield is low based on past record. This could change ? I could try Boustead Project instead but risk could by higher but returns look much higher. We could see a re-rating but need to do more homework if going invest deep. A small stake first to keep up my interest up first in Boustead. Will need to do more homework in Boustead Project.
5. Keppel DC Reit (KDC) or MIT (more)
The yield is very low but DC gives a nice story. Stock price has come down from high. Maybe 10% discount from peak. Is that cheap enough ? A better alternative could be MIT but still is not cheap. Their downside in rental during this period will likely be safe. I could wait a while longer but then missed an opportunity to ride on Tech related exposure which is sorely lacking in my portfolio for growth. A small initial investment in KDC. I already have some MIT in my portfolio.
What's your thought on my new selections ?
Articles in this Blog is personal take and educational purposes only. Reader should seek their own professional help when making financial decision and be responsible for their decision.