Afterthoughts on Genting Singapore

Sold Genting Singapore some 11 months. The stock, as we all know, has risen almost 40% since, mostly due to the opening of RWS and the proposed divestment of its UK operations. The rationale given then for my sale, was that I was not in a position to partake in the rights issue as I had to cough up a bit more cash.

Without the benefit of what we know now, I still think that my divestment was "alright". The point is, the Genting Singapore we are seeing now is an altogether different animal. Through a sleight of hand, Genting Singapore has become a pure Singapore IR play, unlike its Malaysian parent company. All the technical faults notwithstanding. Genting Singapore is a more attractive stock then it was 11 months ago.

On a side note, I am thinking of getting some stocks. My dilemma follows: should I sell some of the smaller holdings and inject the funds as well as new funds into existing stocks. Oh Well.

August Recap; Will I wake up when September ends.

Sorry for the belated postings. I have been flooded at work.

A quick recap of August.

The most notable has been the wild fluctuations in the the stock market. Notable stocks that have been steadily appreciating in price are: Sinotel, Genting Singapore and RTO Seroja Investments.

Going forward, there is one stock you should keep a look out for, Falmac.

It is also another RTO target this time by Peter Choo who might want to inject his mining assets into this troubled textile machine making company. I am suggesting only a small bet on the day it is lifted from suspension. This would take place after its EOGM at the end of Sept.

Before it got suspended, its last done price was $0.06. Also, Peter Choo and his associates own a large chunk of the company, despite its accounting iiregularities. What I dare hazard a guess as, would be that you should make a bid within 10 bids of this price ($0.06-0.11).

I do not know how they are going to solve the financial problems, but if they do, it would make Falmac at least worth $0.20.

you have been told.

Most of Life is about showing up

Woody Allen said that 70 per cent of life is just showing up. The same applies to investing in stocks. "Bears" waiting for the STI to plunge to 1200 and below are still in denial saying that it is just a suckers' rally. What should a retail investor do?

As mentioned before, buy on dips with money that you do not need for the next 5 years. If the world financial system were to collapse, life must still go on. People must still buy stuff.

There is the concern that the market is close to being fully valued and will trade in tight bands as it awaits or real signs of recovery. Heck! In Singapore, people are back to lining up for condo launches as if the worst was over?

What should you buy? I can't tell you explicitly as it is dependent on how you want to construct you portfolio. If you want something for 5 years out, put 50% money on the highest yielding stocks with market cap greater $1billion. Singpost and SMRT are not high yielding but their dividend consistency is something to look out for.

A small bet can be placed on Genting Singapore. This will be another one for at least 5 years. Remember, it makes money from both its Singapore operations and UK casinos, of which the latter has been under performing.

Lastly, small caps like FJ Benjamin can be considered to ride the economic recovery wave that is waiting to be unleashed in the shortest time of 6 months.

Good portfolio construction comes with good stock picking.