Cory Diary : Trying to be Optimistic

To be frank I was kind of frustrated this week. 

Ascendas Reit ( Must have Stock for Dividend Player which I blogged previously) continues to run up this week to another all time high after selling half my position because I do not think market sentiment can be so exhilarating. I could have a couple of grands more.

I also decided to clear Ascendas-iTrust batch for a quick trade forgetting the result is coming up at the end of the day. It did a good price jump the next day to my dismay. What am I thinking ? Which probably cost me another grand.

MAS also announced 60% cap of bank dividends for Year 2020 to my surprise despite the banks are well within their capacity to provide more. This will decrease my dividend by a mile. This dividend cap affects market sentiment and the moment I bought MCT, the counter starts its correction.

Hong Kong virus situation hits another waves and social distancing is reimposed. This affects MNAC operation which show no emotion in reflecting into the stock price. This is bad because I just bought another batch for the yield. 

To top it off, PRC Covid-19 cases start climbing and CRCT weaken some for me to scope a batch of stocks. As I was deliberating to sell days after as there is a little gain in the backdrop of the broad market weakness, I did not execute it at that moment. The price then move to negative territory. .. ...

Not forgetting my Diary subject line, 

I manage to sell a batch of Ascendas Reit at $3.62 on ex-dividend day and bought back at $3.53 before the day ends. I am still not yet near my original allocation though since I first sold.

As for Ascendas-iTrust, the price weakened, and the delta is now within a few days fluctuation. Don't feel so bad now considering I have fewer counters to manage, and cash raised.

MAS calls for dividend cap put a dent on my dividends this year as Banks are core position in my portfolio. It could have been worst like Banks in UK where they could not distribute even a single cent for Year 2020.  With the reduced dividend from SG Banks, this put my investment at lower risk in current Covid Climate. I am not perfectly happy for the exchange but nonetheless there is some positives out of it at a time when many businesses are struggling.

Company like SIA with state support and major rights issue, I am not sure is sufficient as market speculation is Year 2024 full recovery. People who still buy a stake in it, i salute you for your "National Service" but I think valuation can be create or destroy out of thin air and not with our Real Money in such circumstances. Is just passing of wealth from one investor to another that's all.

The HK government has relaxed their Covid measures probably due to business pressure, and my stake in MNAC is smallish. But I feel personally in such congested location, Malls are the way to go when we recover so the future is what we should think about. Same applies to CRCT on yield front. So I am ok to hold on for cash flow for long term play in a diminishing yield portfolio..

Lastly,  MCT purchases are at relative low price. Despite the price went lower after, feel serene that I am able to hold another Maple counter after I sold this last year. Long term likely hard to go wrong.

What an unforgettable  week ! Key lesson is as blogged earlier that we need to diversify as a retailer and whatever largest holding we have, expect the unexpected.

Cory

2020-0802

Cory Diary : Increasing my active investment for Passive Dividends

The Goal

The Covid-19 throws a spanner on increasing Portfolio to $1.3M quickly from 1.2M as in we need to be careful in our investment injection by $100k which is part of Warchest. So why this amount ?

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Here's the link because of the compounding effect @1.3M per my lifestyle. (contingent to yield 5.3% able to maintain @ 1% growth). However if the stock price keeps increasing but business fundamental weaken or not enough improvement, the yield will be lowered. To compensate it, higher cash inject will be needed or expenses reset as we age. Hope I don't lose you by now !

Let me explain again using Reit term. if the stock price increase by 1% (Growth), and we have corresponding reduction in yield say -1% (DPU in cents maintain), it kind of neutralize the compounding effect. This is not good as we lose that year of compounding. So DPU has to increase accordingly to maintain the yield. If is not which could be, and to bring the portfolio backup,  we need to increase our investment through injection or we spend less to support the injection. Get it ?

Of-course we can increase our yield by investing in riskier asset to maintain it but this is not sustainable long term and will mean Portfolio keeps getting RISKIER over time .... . And that is Dangerous which some people may make, like me on what I feel right now  ? LOL

Therefore, come to think of it, is not so easy as the calculation is a simplified model. To mitigate it therefore using above example, if 1% growth of 1.3M that is equal to $13k has to come out of Real growth. When there is no DPU growth, we need to inject in this amount of $13k or spend less to support it roughly.

This is why advocating dividend re-investing is important or injection from saving if you have a job as changing stock aren't easy for same quality. But the key is capital gain has it's price to fulfill for dividend investing.

Something new today.

Cheers

Cory

2020-0726

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Cory Diary : Improving Parental life - Investment well worth the money

When I become a new father, no one taught me what to do in an up-to-date package. Is based on experience through trial and error, tips from sales people, advise from bloggers and friends.

After 1.5 year into parenthood, there are few things I like to share that can improve our life and that is value for money. This are good investment in my opinion and well worth my money. This are also not sponsored, and based on my limited experience and affordability so take it for your reference only. Please do your own due diligence as it may varies with one's situation.


1. Nappy :  About $20 per pack ... varies with pc, size and type. Buy in bulk !

We only use Pampers and it has to be made in Japan version. Wife swore by the quality and the safe. Some babies develop rashes in other brands. I would suggest to buy in bulk or whenever there is promotion. Upgraded to pant type as my child get bigger.

As I know most of the nappy in the market aren't environmentally friendly but there is limited options for the convenience. I guess mother earth will understand. 

2. Electric Sucker : $50 excluding accessories

Get a good one with enough suction power. Is well worth the money. It helps my babies to breath and sleep well. Keeps me worry at night if their nose is fully congested especially when they are hit with flu. I use BabySmile. Most babies do not like to have their nose sucked so there will be some wailing.

The brand I have has an adapter accessories for newborn which comes in very handy. Try not to plunge the adapter into the deeper part of nostril as they will feel uncomfortable or may irritate the linens inside the nose. Just enough to suck and from my experience wait for few seconds for the pull to materialize so be patience. Usually I will try to use my other finger to press the nose lightly to make sure a tighter seal for better suction. 

Clean the rubbery adapter thoroughly after each use. I always keep the batteries outside the compartment to avoid drainage. The sucker use is not effective if the battery power is not strong so do keep additional batteries handy.

3.  Floor Mat : $300
Good and large one can cost a few hundred bucks. A place where the toddler can rest and play.  Usually I have it near my sofa as she tends to climb up to them. Few times the mat has help to arrest the fall from the sofa. Goodness. I am not sure about other babies but mine keep moving constantly so hard knock from fall happens. Just one catch from hard fall is well worth the money. Do be careful that it won't be easy to cover entire area especially corners so may needs some fillers if you are worried.

4. Baby Bottle Sterilizer : $140

Get a big one that can hold a few bottles. Preferably those that can also sterilizer the loose parts, powder containers and pacifiers at the same time. Don't skim on this because it saves me a lot of headaches trying to handle the limited space in the kitchen and cleaning each of them.

I use below from Baby City. Make sure not to pour to much or splash the water on the heat pan as it can gets into the venting hole on the side.

5. Medical Syringe : In cents ... per pc

This are quite cheap and I use to buy in a large bag of 50 easily. I use this to feed the upright baby slowly by 0.1 ML at a time as they may get choke easily. Useful for liquid medicine, Probiotic-Digestive Enzymes (baby friendly ? ) and even water.

We don't need the needle portion so make sure they are carefully put away with their cover on. Older toddler will reach for anything and this must be carefully kept away.

6. Leak proof water bottle : $25

She carries it around, suck it upside down, and won't leak easily. Helps to keep her hydrated to poo. I don't have specific brand recommendation. Go for those that is baby safe materials, and has a tube weight in the bottle to support the sucking. There is long and thin brush provided for cleaning the flexi-tube if you saw one and if do not know what it is for.

7. Baby cot bed : $ 400

I prefer one with rollers as I found later they like to be rolled to sleep for certain period of their development time. I prefer to go for one that do not have adjustable side as I may forget to pull back and baby may roll off the bed if they flips or struggle around. Need to also make sure the elevation is low enough to prevent older toddler from climbing out.

I think is best to use the mattress that comes with the supplier as it fits perfectly and leaves no gap which can be dangerous to baby. I also bought some side linens from Amazon to protect falls from older toddler and their bites on the woods.

8. Changing Mat : $25 In the early months, the nappy may not seal properly due to the baby size or our inexperience in folding it resulting spillages. We do not want it to be too tight on our newborns. So a changing mat place under the mattress help to ensure we do not need to wash and clean it. It can be real hassle when all the things can contaminated.

Cory

2020-0716