Cash Dividends in July 2017

Received the following cash dividends in July:

  • SPC: ₱0.40/share, around 8.8%, annually*
  • CEB: ₱2.75/share, around 2.4%, annually
  • SMC2F: ₱1.27635/share, around 1.57%, quarterly
  • SMC2C: ₱1.50/share, around 1.86%, quarterly
  • HLCM: ₱0.98/share, around 7.9%, annually**
  • DDPR: ₱1.61945/share, around 1.54%, quarterly
  • MEG: ₱0.05410389/share, around 1%, annually
  • ROCK: ₱0.0594/share, around 3.3%, annually
  • SMC: ₱0.35/share, around 1/3 of 1%, quarterly

All above % estimates are against price on Sep 12, and are the gross value/share, not taking into account the 10% withholding tax for Filipino citizens.

Cash dividends in July 2017 are higher than my typical month and it made up 0.59% of my whole principal. Meaning if I always had as much cash dividends in a month, my principal would be getting around 7% p.a. gross. This is due to the quarterly SMC and DD preferred shares paying during the month, plus the annual cash div payable of higher yield shares, SPC, HLCM and ROCK (I consider anything above 3% as fairly high yield).

*This was supposed to have been paid on June 30, but it arrived to me in July, hence I’m accounting it in July.

**Noted this share fell in value in the past few weeks which has increased the cash dividend yield.

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Recent Sell transactions

Recently sold the following shares:

  • SSI @ ₱4.71 and ₱4.70 on Aug 30, 2017
  • SMPH @ ₱33.70 on Aug 31, 2017

I typically sell for just two reasons, one is to risk manage, the other is that the stock is just plain overpriced and I believe I can eventually pick up the stock at a lower price.

My recent sell of SCC was for reason 1, while WLCON @ ₱8.58, SECB @ ₱260.40, SSI @ ₱4.70 and ₱4.71 and SMPH @ ₱33.70 was for reason 2.

Since I sold WLCON, it has gone up to the ₱9.50 range (I’m still holding some shares) and I’m just wondering how much that stock can still rise.

SMPH is still around the same range as when I sold it. I simply don’t think that the multiples of SMPH justify its price (around 37 P/E), specially with a net income growth rate of around 15% Q/Q. As with WLCON, I’m still holding some SMPH.

SCC has gone up, notwithstanding the ₱5/share that I missed on. I am also still holding some SCC.

SSI and SECB have gone down. I’ve sold all my SSI and am still holding some SECB which I intend to buy again.

Bought BLFI @ ₱3.96, RFM @ ₱4.31

Bought some BLFI @ ₱3.96 last Friday (Aug 18) and RFM @ ₱4.31 earlier today.

Also received cash dividends from JGS for a total of ₱0.28/share last Aug 11 and CNPF yesterday for total of ₱0.18/share.

I should have bought LR when I had the chance. Looking into SPC and possibly FGEN.

It would be a good time to send some money to the Philippines now as the exchange rates are pretty good for OFW’s. It would also be a good time as the PSEi typically consolidates or is in negative territory around this time of year, meaning the next few months may be a good time to buy.

Sold SCC @ ₱175.20, WLCON @ ₱8.58, SECB @ ₱260.40

Sold some of my holdings in SCC @ ₱175.20 and WLCON @ ₱8.58 yesterday. I also sold some SECB @ ₱260.40 earlier today. The SECB I sold included what I mistakenly bought for ₱252.20 and some shares I bought last year.

I really like SCC for their earnings and the consistent cash dividends, however the price seemed a bit high. I’ll try to buy it again if the price lowers a bit. WLCON was a bit high, and it went even higher after I sold, but selling at around 68% above IPO is good enough for me.

Bought BLFI @ ₱3.96 which I intend to accumulate as long as the price stays low enough. My only concerns for this stock is the low trading volumes and its P/E of around 15 isn’t cheap. Its div yield of around 5% (at its current price) is great though. It typically ex-divs around the 1st week of March, payable at the end of March.

Still looking at LR, which maybe I should have bought earlier today before the price spiked to ₱4.32. Also looking into FGEN at ₱17.10 (52 wk low) which looks like a good price to buy it. PIP @ ₱2.90 and PBB @ ₱13.20 also look like good buys.

I should really start putting down the steps I use in deciding whether or not to buy and sell a stock and then continually improve it. Maybe I should put it in a flowchart. Typical steps I use are:

  • Is it relatively cheap in terms of its current P/E? B/V?
  • Does it give good cash dividends and its dividend history?
  • Earnings trends
  • How is the management team and reputation?
  • Price trends for the past week, month, 3 months, year, 2 years and 5 years.

Sold MEG @ ₱4.80, Mistakenly bought SECB @ ₱252.20

I sold some MEG today as I want to risk manage a bit. I was trying to sell some SECB but mistakenly bought as I was in a rush before my train was going into a tunnel and was afraid I might lose cell signal. Crap.

I think SECB is a bit high at that price and wanted to sell so I could buy some other shares on my watchlist I posted on previously (e.g. BLFI @ ₱3.94, LR, RFM, FLI… or even SHNG or ABA). At its closing price of ₱252.00, P/E is 22.42, with a P/B of 1.84 (courtesy of MS Money). That’s a bit too close to BDO (20.37 and 1.97) and BPI’s (17.89 and 2.43) valuations… I mean why not just buy the better valuations of MBT or CHIB right? Hence why I wanted to sell some. I’m just going to cross my fingers for now and hope it goes up a bit for me to sell… or it do what my MWIDE did when I also made the mistake of buying instead of selling.

The past few days have been pretty bad on my portfolio and I think I’m just up by around 22.90% on my principal with an XIRR of 13.95%… (if my calculations are correct) so maybe I’m not doing as bad as I thought.

Bought ALCO @ ₱1.01

So I bought ALCO at ₱1.01 yesterday… just before it crashed by almost 7% today. Sucks I know.

I haven’t done a recent XIRR but I’m around just 24% up from my capital/principal.

It’s been a bloodbath with recent IPOs, from SHLPH at around -4%, EAGLE at -0.8%, CLC at almost -8%, and CLI at around -3.4%. The only saving grace amongst IPOs is WLCON that’s up by around 63% (lower than its peak, but quite a gain nonetheless).

I’ve been unable to buy DDPR nor SMC2F since they’re both a bit high now.

I’m currently looking at FGEN (17.40), GTCAP (1168), HLCM (12.90), HOUSE (5.43), JGS (69.45), LR (4.19) and RFM (4.40).

Bought PIP for ₱3.16 on Aug 3, 2017

Bought some PIP for ₱3.16 on Aug 3 as the price is pretty low compared to its revenue. I also tried buying some RFM but no one matched at the price I bid… same with DDPR. I’ll just wait then. To quote W. Buffet, “What’s nice about investing is you don’t have to swing at pitches… No umpire is going to call you out. You can wait for the pitch you want.”

I’m also looking at LR as it has gone down considerably (approx 14%) since I last bought it a week or two ago.

I’m a bit surprised that the price of MEG didn’t go down even though the US Dems are proposing a bill on taxing US organizations that outsource. Maybe investors don’t see it affecting the Philippine economy.

I also tried selling most of my EDC at near its peak on Friday (Aug 4) but no one bit.

 

Bought CLC IPO, FDC @ ₱7.60, COSCO @ ₱7.79, HOUSE @ ₱5.92

In the past week I was able to obtain a few shares of the upcoming CLC IPO (@ ₱10.68), which in hindsight and totally basing on the P/E, looks quite expensive. Nevertheless, it’s just a few shares and maybe it will do a DD which I once held at around ₱4 before selling at around ₱5.

I also bought some FDC @ ₱7.60, COSCO @ ₱7.79,  and HOUSE @ ₱5.92. I think FDC is undervalued given how much EW has increased its profits (and will likely continue to do so… it also isn’t a ‘treasury’ bank). COSCO is a retail play which hasn’t budged much despite of PGOLD’s movement. HOUSE is a cash dividend play.

I’ve gained around 2.2% cash on my principal in the 7 months of this year (note not p.a.) as a number of companies I hold are cash dividend plays. But then again, more companies seem to give out cash dividends in the first half than the second half of the year.

I’m at a wait and see on HLCM since its profits dropped significantly and there is a lot of competition in the cement business within the next 3-5 years.

I’m still looking at getting more PIP, RFM and probably SMC2F (which has an optional redemption date of around Sep 2022).