Market has not been too good to the blue chips and second-liner stocks recently as the major indices find no catalysts to move higher. STI is still range-bound between 2950 and 3000 while DJIA keep flirting with the 13K level.
There seems to be only two themes in the Singapore market for the past one month and now: churning the micro-penny stocks for potential multi-fold gain (hunting elephants), or stick with defensive high-yield counters (hunting rabbits). Any other categories will likely see prices sliding further or remain stagnant.
My 'Going for Growth' portfolio as mentioned in my Mar 19 posting has been disappointing till date, with only CapMalls Asia registering gain (have close this position fully), while OUE remain relatively flat (added more positions).
I have decided to cut loss on the rest and reduced exposure in China Minzhong, due to their deteriorating technical. I reckon there is a better opportunity to re-enter these counters again, on better risk-reward ratio.
On the other hand, my 'High-yield' portfolio did pretty well and it reaffirm my belief that this asset class is an excellent option to deliver consistent income and growth to one's investment portfolio. It is not just buy and hold, but with good trading opportunities to net me some extra gains. (See my earlier post on Trading REITs). Have you bought some CapitaMall Trust at below $1.80 too? Or Ascendas REIT at below $2? What about Mapletree Industrial Trust at $1.09? Sell before they go XD or hold on for the distribution - either way is a win to me.
I am pondering a move on SIA, which is expected to announce their 4Q and full yr result. There seems to be limited downside now and with the management still buying back the shares and market expecting a special dividend (although I am expecting a small one this year instead of the bonanza payout last year amounting to $1.20 per share), it could be a 'safe bet'.
