Thursday, June 22, 2017

What did I buy in Jun 2017?

The previous posts
What did I buy in Nov 2016?
- What did I buy in May 2017?

I bought Silverlake Axis at $0.53 in late May. The price fell to near its 1 year low ($0.48 was lowest) and the yield looked attractive 5.6% assuming a 3 cent/year dividend. The business model was heavy on IT maintenance projects with banks which was a rather stable economic moat. However, before you plonk it your cash, be wary that they had a scandal in 2015 -- alleged inflated profits. The share price fell to as low as 35.5 cents on 26 Aug 2015.

Silverlake Axis past 3 years.

I sold some of my SIA Engineering shares in Jun. In the past 6 months, its price had risen 25%. If you recall, I bought some SIA Engineering in Nov 2016. The only reason why I sold some shares was to free up cash to invest in other companies.

I bought Design Studio shares in Jun. It has an attractive yield of 11% assuming a 6.5 cent/year dividend. The business model is doing interior design and renovation projects for condos and hotels. This share caught my attention because I regretted not buying when I saw it 6 months ago. It's price jumped from 46 cents to 64 cents recently. In any case, regretting doesn't justify why I bought. Overall, its business looks sustainable as more buildings are doing renovation, especially when occupancy is rising and rental yields are falling, so landlords usually will zhng their rooms to attract tenants. Before you plonk your money into this share, just to let you know, it's just 2% of my portfolio that is taking this risk. I would love to just throw more money at a 11% yield but I am unsure whether its a value trap.