What an exiting quarter to sum up the experience for 2Q. While 1Q has been shadowed with doom and gloom, 2Q shine like a bright star with local government stimulus policy to save their own economy and investor optimism that a quick recovery will resume as most countries starts to open up. While DJI has been facing the bear in 1Q, the bear was hastily defeated by the bull in 2Q and in some counters, it has recovered and exceeded its last high point. For the record, USA white house economic advisor is still saying they expected a "V" shape recovery, not sure it is to boost Trump's re-election chance or they genuinely believe so.
DJI ended at 25812, an increase of 3895 points (+17.77%) compared to 1Q 2020. For Singapore, STI ended at 2589, an increase of 108 points (+4.35%) compared to last quarter. For me, I have been buying in shares of good companies as they are battered down during 1Q. Though most of them has turn into profits as market recover in 2Q, as they have yet to trigger my "take profit" point. All the profits, for now are still on paper only. With the surge in COVID-19 cases as USA reopens their market, investor has turn bearish again the last 2 weeks. To sell or to hold? You decide. Below is just a summary of what I have done in 2Q:
A nice plot showing decreasing trend as USA lockdown and massively surge in trend as they hastily re-opens up. Well, that is what Trump wants right? No mask, no lockdown 😶
Transaction 1: Bought 1 batch (last batch) Marriott shares in April.
Marriott started their trajectory for recovery as USA began discussion opening up the economy in April. While travelers are not expected to swiftly return to pre-COVID level immediately, an estimated one year timeline will sufficiently be able to ride out the pandemic impact. Guess the counter will truly start recovering once management re-institute back the quarterly dividend and annual share buyback program.
Transaction 2: Bought 1 batch IREIT Global shares in April.
Share price are beaten down to unbelievable level with a potential 10% dividend yield. Time to load more.
Transaction 3: Bought 2 batches HPH Trust shares in April.
Share price are beaten down to unbelievable level with a potential 10.8% dividend yield. While the counter has a history of declining dividend partly due to the debt reduction program which started in 2017 where part of the distribution are used to pay back bank debt, this program will be coming to an end in Dec 2021. If management do not extend this program (Or rather, extend with a reduced scope), the price should start to recover.
Transaction 4: Bought 1 batch China Everbright shares in April.
Share price has touched an all time low back in April, giving a potential 6.3% dividend yield. Declared dividend, on another hand, has been increasing yearly. Part of China state company, it has won water projects from various provinces as China focus on industrial wastewater treatment to meet international standard and environment protection. Wastewater treatment plants built are typically given a 30 years operation concession, giving the company a recurring income, not forgetting the water tariffs charged can be subject to increase pending government approval.
Transaction 5: Bought 1 batch Amara shares in April.
Share price touched an all time low, giving a potential 5.8% dividend yield. Amara has transited from a pure hospitality and construction company, to building up a real estate third arm as a commercial landlord to provide it a stable recurring income. For the real estate, it has 100AM in Singapore, and the commercial mall (新百安商场) that was integrated with the Amara hotel in Shanghai which started collecting rental in end 2019. Guess the dividend will be at least 2 cents per year going forward.
Transaction 6: Bought 1 batch DBS shares in June.
Current share price has drop to a level giving it a 6.3% yield using the last cutback in dividend for calculation. Not a bad investment, as the potential for price recovery back to $28 level remains possible as economy recovers.
That is all for now. See you all in Q3 2020 update and thank you for reading thus far.
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