Thursday, 2 February 2017

3 Potential munchies over the next few months

For those of you who have been following my blog, you would probably know that my current portfolio is heavily concentrated on the healthcare sector. And I had previously planned to keep the proportion of healthcare counters to about 50% of my portfolio. However, with my latest purchase of shares in ISEC healthcare which i blogged about here, healthcare sits at a significant 70% (approximately) of my portfolio. 

I am planning to balance my portfolio and I am currently, and will continue looking at counters from other sectors. Please note that whilst I believe balancing my portfolio is necessary, I will not do so unless I find suitable shares at prices I can swallow.

Here are some counters I am looking at;

Singapore Telecommunications (Z74)

If you had read my portfolio page, you would have realised that I do have a small parcel of Singtel shares already, and if you are interested, I blogged about it here recently. Potentially, I am looking at doubling my holdings in this counter, and my reasons for investing in it remains unchanged from what I previously mentioned. But in short, I believe Singtel remains an excellent defensive play due to its' significant diversification, good management track record, and little free-float. 

Frasers Logistics and Industrial Trust (BUOU)

(image credits: Frasers Logistics Trust)

I have never bought an industrial REIT before, and this is the first one on my watchlist. They have recently exceeded their maiden DPU forecast, and currently sits at approximately 99% portfolio occupancy. They also boast a WALE of about 7.0 years. This is higher than most other industrial REITs listed in Singapore. For those of you who are new to the term, WALE (Weighted Average Lease Expiry) essentially reflects how long the average remaining lease period is, to a tenant of the REIT. This is done by taking into account every tenant's respective contribution to the REIT and their remaining lease period, and aggregating the amount. In short, the greater the WALE, the less risk the REIT faces as tenants aren't going to vacate anytime soon.

The REIT also has sufficient room to acquire more properties, and they have recently made a good acquisition (The Martin Brower Property), which increased their WALE and reduced their average portfolio age.

I also like the fact that the REIT's properties are based in Australia, and collects rent in AUD. Although there is no risk of unfavourable/favourable currency swings at the moment due to hedging, in the next FY (FY18), it may not be the case. I am bullish on the Australian dollar, and its economy, and I believe that its' currency will continue to be on the upswing, which could potentially increase distributions in this REIT. We should also note that Australia has not experienced a single recession in the past 25 years. 

This counter is not that expensive yet, and is currently hovering right between the 52 week low and high. Hence, I am monitoring this counter closely for an opportunity to invest.


This is probably the least well known counter out of the three. This company specialises in facilities management and upgrading of the public housing estate in Singapore. Sounds defensive already doesn't it? Services they provide range from painting services, pest services to re-roofing and waterproofing. At the same time they do have a number of subsidiary companies which I will not be writing about here as it is not the main point. The problem though is that this may have already been factored into the share price, as you can see in the chart below and it is decently expensive, if not the most expensive for a counter classified under the construction sector: 

(image credits: yahoo finance)

I will probably be just monitoring ISOTeam for now due and will only strike if there's a window of opportunity.

On this note, that will be all from me today, and I'd like to thank you for your support!

Best Regards,
A 😁


  1. Hi A

    Flt is currently my biggest position. I owned 80,000 shares of them and I really like the properties they had in various growing cities of Australia.

  2. Hi A

    Flt is currently my biggest position. I owned 80,000 shares of them and I really like the properties they had in various growing cities of Australia.