Just a quick update to my portfolio because there has been a flurry of activities.
Sale of Hyflux Preference Shares
Sold all Hyflux Preference Shares in my CDP to realize an approximate 10% gain. I managed to "pick some pennies" on this company debt instrument and have decided to allocate my capital to the below 2:
The thesis for Memtech was pretty simple. It is in the same industry as Fischer Tech and Sunningdale. With its strong cash position and cash flow generation ability, the price which i purchased at 0.705 seemed a good steal. Furthermore Memtech was trading at a 0.7x P/B ratio while Sunningdale and Fischer were being sold close to book value. In addition, Memtech Intl is a turn around stock with its profitability improving year on year. So given the industry it is in and how much its peers were being valued by Mr. Market, I have set a target of about 0.90 on the premise of revaluing it close to its peer values.
First Ship Lease Trust
The reverse can be said about FSL. Its prices has been declining and I used the opportunity to accumulate more at 0.124, 0.116 and very recently 0.103. In my view, the worries of the company''s inability to refinance and becoming a "rickmers" has caused Mr. Market to downgrade it "exuberantly". I will write a review on FSL at later date, (probably after its AGM and release of Q1 FY 17 results).