Thursday, May 31, 2007

End-May 2007 Portfolio Review

Below is a month-end review of share prices and and update of my companies' status:-

1) Ezra - Buy Price $1.30 (bonus adjusted), Market Price $5.65, gain 334%. On May 23, 2007, the company announced that it had awarded a US$25.6 million contract to Labroy Marine Limited to construct a 125m pipe-Laying, accommodation, well service & maintenance vessel. This comes as no surprise as CLSA had already mentioned that Ezra was planning to add 3 new vessels to its fleet for FY 2009. What is interesting is that these 3 vessels are going to be equipped with the latest technology to handle deep-sea O&G exploration. Management are indeed gearing up for the future and it is hoped that O&G activities will really move towards deep-water in time to come.

2) Boustead - Buy Price $1.295 (average), Market Price $1.93, gain 49%. As reviewed in one of my posts, Boustead still has a lot of potential moving into FY 2008 because they are well-positioned in the right industries at the moment. They have operations in energy recycling, wasterwater management as well as properties. The buoyant market for their services will surely see improved earnings and hopefully margins in time to come. Gross dividend is 4.5 cents/share and I am awaiting the Annual Report and AGM to be held.

3) Swiber - Buy Price $1.01, Market Price $1.72, gain 70.3%. Nothing much to report on Swiber except that it appears the price is trending towards my estimated intrinsic value for the company (in my previous post). This bodes well for investors who have assessed the long-term prospects of the company and wish to enter at a good price to ensure margin of safety.

4) Global Voice - Buy Price $0.1775 (average), Market Price $0.195, gain 9.9%. Just yesterday, GV has announced a contract with Deutsche Bourse to provide dark fiber connections. This is yet another contract snared (contract value not mentioned as per usual) by GB since my last review on May 15th. Investor relations has also improved with personal emails being sent to inform shareholders of the latest developments and contract wins. Capacity USA is coming soon on June 25-26, 2007 in USA New York and CEO Noel Meaney is expected to speak about the importance of good private fiber networks. Hopefully, this will further raise the profile of the company and land them more significant deals.

5) Suntec REIT - Buy Price $1.11, Market Price $2.00, gain 80.2%. No significant updates. The dividend of 1.965 cents/share was paid to me on May 29, 2007.

6) Pacific Andes - Buy Price $0.81, Market Price $1.16, gain 43.2%. As reviewed in yesterday's post, PAH has enjoyed good earnings growth and has declared a dividend of 1.08 cents/share pre-rights. A special general meeting is being held at the Grand Hyatt Hotel at 10.30 a.m. on June 18, 2007 to seek approval for the rights issue. I will try my best to attend this meeting as it gives me an opportunity to talk to the Management.

My overall portfolio has increased by 83.4% from cost as at May 31, 2007. Looking forward, nothing has fundamentally changed about any of my companies, and I will continue to monitor industry news about the fishing industry, network requirements in Europe, oil and gas industry as well as the property market. I do not expect much news in June 2007 as it is traditionally a quiet month. Positive catalysts would be new contracts from Ezra or Swiber (unlikely in June, maybe later in the year), more contracts for Boustead (Salcon is the one I am eyeing for FY 2008) and of course, even more contract wins for Global Voice. For Pacific Andes, there should be some write-ups by analysts in the next few trading days and I will review them accordingly.

My next portfolio review will be on June 17 or 18th (the day I return from my honeymoon). In the meantime, I have not done further research into any companies as I wish to review my financial position after my honeymoon (I expect to spend a significant amount in Europe !).

4 comments:

la papillion said...

Hi musicwhiz, let me compliment your views on swiber. From TA point of view, swiber should find support at 1.62 and thereafter at 1.37. I wanted to enter another batch of swiber with a good margin of safety.

I do not know your intrinsic value of swiber (still reading my intelligent investor) Could you share it over here?

Thks a lot!

musicwhiz said...

Hi la papillion,

Thanks for the TA but generally I don't bother about it as I will observe the business aspect only, not the price aspect.

As for intrinsic value, please go back a little to read my Swiber posting and you will see a rough intrinsic value stated there. The problem is intrinsic value is subjective and ever-changing so this must be re-assessed again once new information is revealed.

la papillion said...

Thks musicwhiz, it's after I posted this message that I knew how to search for postings in blogs :)

Thks anyway!

Anonymous said...

hi musicwhiz,
can you advice me on what to buy? =p you can email me @ angelo_strike@hotmail.com

Thanks!