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August 2010 was indeed an interesting month for me in terms of portfolio changes; as I made the somewhat painful decision to divest of my entire stake in FSL Trust (as I had previously blogged about in this post). The decision was a mixture of relief and regret, as the funds from this investment can finally be freed up to be redeployed into a more promising investment. What I dislike most is “deadweight” in my portfolio, and I will not hesitate to cut loss on a position in order to re-allocate the funds to another position should I objectively conclude that it would be in the best interests of my portfolio.
I had mentioned that I expected August to be a relaxed month; but it was not to be so as I spent quite a bit of time researching and poring over Annual Reports for my latest purchase – SIA Engineering Company Limited (“SIAEC”). In order to do a more comprehensive analysis as compared to my previous one on Kingsmen Creatives, I spent a lot more time dwelling on the Annual Reports, doing deeper analysis on each division, poring through SIAEC’s many associated companies and joint ventures; as well as doing a detailed competitive analysis for three of SIAEC’s competitors. The result is a rather lengthy report to justify my purchase of SIAEC which I will split into five separate sections (in order to keep each section readable). The full report is about 32 pages (along with 14 tables of figures) and it is my intention to post up as much of the analysis as I can in its entirety; as this is the first blue chip company (SIAEC is, incidentally, part of the Straits Times Index’s 30 component stocks) I have seriously researched on and I will need to get some feedback so that I can improve for future research and analysis work.
The five sections will cover aspects such as Financial Analysis, Divisional Review and Historical Progress, SIAEC’s myriad associated companies and joint ventures, cash flows and share of profits from these ventures, competitive analysis, the MRO industry; as well as prospects, plans and a pros and cons breakdown. These will be posted progressively (not consecutively) over a period of about 2 months, and also as I intend to compile the information to make it suitable for posting up. Note that this may be the first and final time I post such a comprehensive analysis of purchase on this blog; as subsequent purchases may simply rely on my own private research which I will justify in a succinct summary. Read more...
[caption id="attachment_2083" align="alignright" width="150" caption="Photo by Shermeee"][/caption]
August 2010 was indeed an interesting month for me in terms of portfolio changes; as I made the somewhat painful decision to divest of my entire stake in FSL Trust (as I had previously blogged about in this post). The decision was a mixture of relief and regret, as the funds from this investment can finally be freed up to be redeployed into a more promising investment. What I dislike most is “deadweight” in my portfolio, and I will not hesitate to cut loss on a position in order to re-allocate the funds to another position should I objectively conclude that it would be in the best interests of my portfolio.
I had mentioned that I expected August to be a relaxed month; but it was not to be so as I spent quite a bit of time researching and poring over Annual Reports for my latest purchase – SIA Engineering Company Limited (“SIAEC”). In order to do a more comprehensive analysis as compared to my previous one on Kingsmen Creatives, I spent a lot more time dwelling on the Annual Reports, doing deeper analysis on each division, poring through SIAEC’s many associated companies and joint ventures; as well as doing a detailed competitive analysis for three of SIAEC’s competitors. The result is a rather lengthy report to justify my purchase of SIAEC which I will split into five separate sections (in order to keep each section readable). The full report is about 32 pages (along with 14 tables of figures) and it is my intention to post up as much of the analysis as I can in its entirety; as this is the first blue chip company (SIAEC is, incidentally, part of the Straits Times Index’s 30 component stocks) I have seriously researched on and I will need to get some feedback so that I can improve for future research and analysis work.
The five sections will cover aspects such as Financial Analysis, Divisional Review and Historical Progress, SIAEC’s myriad associated companies and joint ventures, cash flows and share of profits from these ventures, competitive analysis, the MRO industry; as well as prospects, plans and a pros and cons breakdown. These will be posted progressively (not consecutively) over a period of about 2 months, and also as I intend to compile the information to make it suitable for posting up. Note that this may be the first and final time I post such a comprehensive analysis of purchase on this blog; as subsequent purchases may simply rely on my own private research which I will justify in a succinct summary. Read more...
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August 2010 was indeed an interesting month for me in terms of portfolio changes; as I made the somewhat painful decision to divest of my entire stake in FSL Trust (as I had previously blogged about in this post). The decision was a mixture of relief and regret, as the funds from this investment can finally be freed up to be redeployed into a more promising investment. What I dislike most is “deadweight” in my portfolio, and I will not hesitate to cut loss on a position in order to re-allocate the funds to another position should I objectively conclude that it would be in the best interests of my portfolio.
I had mentioned that I expected August to be a relaxed month; but it was not to be so as I spent quite a bit of time researching and poring over Annual Reports for my latest purchase – SIA Engineering Company Limited (“SIAEC”). In order to do a more comprehensive analysis as compared to my previous one on Kingsmen Creatives, I spent a lot more time dwelling on the Annual Reports, doing deeper analysis on each division, poring through SIAEC’s many associated companies and joint ventures; as well as doing a detailed competitive analysis for three of SIAEC’s competitors. The result is a rather lengthy report to justify my purchase of SIAEC which I will split into five separate sections (in order to keep each section readable). The full report is about 32 pages (along with 14 tables of figures) and it is my intention to post up as much of the analysis as I can in its entirety; as this is the first blue chip company (SIAEC is, incidentally, part of the Straits Times Index’s 30 component stocks) I have seriously researched on and I will need to get some feedback so that I can improve for future research and analysis work.
The five sections will cover aspects such as Financial Analysis, Divisional Review and Historical Progress, SIAEC’s myriad associated companies and joint ventures, cash flows and share of profits from these ventures, competitive analysis, the MRO industry; as well as prospects, plans and a pros and cons breakdown. These will be posted progressively (not consecutively) over a period of about 2 months, and also as I intend to compile the information to make it suitable for posting up. Note that this may be the first and final time I post such a comprehensive analysis of purchase on this blog; as subsequent purchases may simply rely on my own private research which I will justify in a succinct summary. Read more...
