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Wednesday, 1 August 2012

Yield hogs will be slaughtered

Last month, I sold a Growth and Income REIT that I've bought 1.5 years ago.

It's was yielding 9% at price of purchase;and has since gone up by 40% in capital gains when I sold it.

Total returns is slightly more than 50% for 18 months of "waiting". (I am hiding behind percentages for a reason. A blogger friend's experience has taught me sometimes it's better to be coy!)

I replaced it with a beaten down S-chip that's "only" yielding 3%...  I am speculating that this S-chip will grow by at least 50% in capital gains within my 6-18 months time frame. (Some call it sector rotation)

Hey! I've told you I'm an equities man-whore didn't I? 






OK, I jest! 

The real reason is that I find this S-chip offers a better risk-reward margin of safety for me than the REIT that I've bought at "wholesale prices. 

And when others are willing to pay "full retail price" from me, I sell!


Funny... I never even call myself a value investor?


For those of you who are new to dividend plays, you may want to take a look at this Bloomberg's video:

Yield hogs will be slaughtered 

And if you want to know when you have fallen into a dividend trap, I've this old post:

Dividend trap




45 comments:

  1. Hi SMOL,

    Which blogger friend are you referring to har?

    Wah! You sold a REIT and made good money wor. Which REIT is that? This one, can share lah. Let me guess first... There I have said it. ;p

    ReplyDelete
    Replies
    1. AK,

      Ya hor! I wonder who? Hmm... I got friends meh?

      I am a rock! (Now humming that Simon & Garfunkel song)


      Now isn't nice to be civil and friendly even when we are going in opposite directions?

      What I do has no impact on you, and vice versa :)

      I am just the greedy speculator who is killing my Indonesian golden goose (take the 4.5 years of future dividends now), and switching to the Mainland Chinese chicken (younger and sweeter mah).

      Once I had my "fun", I'll probably come home to the mother goose. Hope she will take me back in 18 months time!

      I'm such a cad!

      Delete
    2. Aiyoh, really meh?

      I asked "Which blogger friend are you referring to har?" and you said "AK,..."

      Me? You consider me your friend? I am soooo touched. Sob, sob.... :_(

      I did not kill Indonesian goose although I did pluck some of its feathers to sell to young pillow makers. Wah! Multiple metaphors here. ;p

      I also bought some mainland Chinese chickens.

      So, you see, I am greedier than you... I want to have my goose and my chickens. ;p

      Delete
    3. AK,

      We are both single and with raging hormones...

      YES WE CAN!

      You like to talk to yourself too!


      P.S. Your goose bigger. I pluck feathers equal killing my goose liao!? Hee hee hee.

      Delete
  2. Haha, AK, I also can guess.. :D There's limited REIT and there's only one with such a good performance.. :D

    More interested in the replacement..

    ReplyDelete
    Replies
    1. Peroxide,

      "Call chicken" got risks one!

      Remember to wear rain-coat OK?

      LOL!

      Delete
    2. Wah, pero wanna call chicken?

      Delete
  3. I am single, yes. Hormones raging, I doubt. ;p

    I scared the mainland Chinese chickens die on me. So, having the Indonesian goose around gives me a peace of mind. No chickens, goose also good. ;)

    OK lah, I am getting giddy from all the metaphors. Haha... When I feel comfortable being invested, better chance of staying the course lor.

    ReplyDelete
  4. ooooi!

    i though you suppose to let me know what you are buying (or selling)??? i want to follow la.

    ReplyDelete
    Replies
    1. sorry, suppose to be le not la, sound more polite haha.

      Delete
    2. LOL!

      You made a request, I pretend I never heard it.

      How is that "supposed to"?

      If I wanted to give advice, I would convert to be a remisier instead!

      Although I must say Philip's Independent Trader Program looks mighty enticing...

      I have to tear myself away. Not now; maybe after I had my fun first as Man of Leisure ;)

      Delete
    3. i'm not asking you to give advise (what advise can you gives haha)! just asking what you bought or sold. wah loa like that also cannot?

      if cannot tell us, please also don't tell us your results, make us jelous.

      Delete
    4. ok la, tell you what i did today,

      short golden agri, olam, FCT, genting, capitalmall.

      bought FCT, wilmar.

      mind you these are not day trades.

      now can tell? haha

      Delete
    5. I was waiting for the "I don't friend you!" threat :)

      Hmm... Sell and buy FCT on the same day is not day trade?

      Once upon a time a girl told me "you show me yours, and I'll show you mine" ;)

      You think we still teenagers or what? LOL!

      Eh... Can you please zip up?

      Delete
    6. friend, friend, i'm not so cheap scate. everything also must calculate.

      Delete
    7. Good luck with your hunt!

      I've learnt this trick from my lady friends:

      Show a bit cleavage, hint a little with chiffon, now that's sexy!

      Reveal everything? Now that's cheap and vulgar ;)

      Don't sulk on me now...

      Delete
    8. haha left out one important trade, bought (covered short made yesterday 5.04pm haha) mapletree industry.

      Delete
    9. by the way, you know what is day trading or not?

      everyday trade is not necessary day trading, going in and out of the same position is also not necessary day trading.

      day trading simply means one don't hold over night position, please remember ok!

      Delete
    10. ok?

      ok now, i am just kidding to want to know your trade. please don't reveal them.

      it will affact your trading and your results, i don't want to be responsible for it.

      Delete
    11. Thanks for the practical definition on day trading :)

      Wow! You sure is brave to take on so many overnight positions just before the ECB decision this evening.

      Just to mess with your mind:

      If I do not have overnight positions; and I did not trade that day - what kind of trader am I?

      Delete
    12. haha, ok let see.

      hmm.. hey, my mom also like that what? haha.

      lets call them moonlight trader ok? or what they call moon lighting or fly by night?

      don't talking about ECB, sky falling i also must have position.

      Delete
    13. i'm shorting starhill global (new position) and buy some more FCT.

      Delete
    14. Phew! I feel like I've passed the test!

      You are like a Zen master testing my resolve ;)

      Ask me to share now say never mind!?

      I am like you when it comes to self-confidence.

      You don't care about ECB or sky falling. Similarly, if I don't feel like sharing, no sticks and stones will make me :)

      Delete
    15. coconut,

      I don't think I've said it enough. But I will say it again:

      I love you!

      You are one of the craziest and weirdest character I've met so far in blogging.

      No one ask you for your trades, yet you keep taking off your clothes one by one!?

      Are you trading in a arcade?

      Your fellow traders sitting next to you must either love you for brightening their day or hate you for your distractions!

      LOL!

      Delete
    16. managed to short starhill global but did not buy FCT, not enough quantity offered and wide spread.

      yes, confident first, then run like chicken later.

      Delete
    17. don't worry, i wore many layers haha.

      Delete
  5. Roar of the heart:

    It does not matter what we "call" ourselves as traders or investors.

    There's only 2 definitions that count:

    Make money traders/investors and lose money traders/investors

    1) If lose money, how would knowing the trades of others' help?

    2) If make money, why ask?

    Trading/investing is an individual sport; not a team event :)

    ReplyDelete
    Replies
    1. our mind is so far apart you know? i thought you know i was just kidding.

      by the way, there is nothing wrong to follow others if one do not have a clue whats going on. and market direction is definately one of them.

      individual sport is definately correct, winning or losing is depends on how the trader handle the situation, not predicting the market direction.

      lastly, why cannot ask? i might just do the opposite of what you do.

      Delete
    2. LOL!

      And that's why I don't tell ;)

      I am not your patsy indicator :)

      Congrats on your shorts!

      You knew Draghi will disappoint?

      Delete
    3. Hello coconut,

      The roar of the heart comment is not addressed to you. That's why I separate it. It's me talking to the wind!

      Your so vain! You probably think this post is about you, don't you, don't you!? (must sing one this sentence)

      Delete
    4. ok you win.

      please don't congrate me, yesterday was history, i'm concern what going to happen today. beside, things can change pretty fast. i'm tired of fighting this raging bull.

      Delete
    5. pai say, need to post this, it is the most rediculas thing that can happen in Olympic games!!

      disqualify becos i use a smart strategy and trying my best for the medal?

      reason, not playing my best? knn! in this case, all Olympician must be disqualify also, KNN!

      http://sg.sports.yahoo.com/news/tour-king-wiggins-goes-gold-034133397.html

      Delete
    6. can you immagin telling the 10,000m/ 5000m runner to "chong" right from the start or else disqualify???!!!

      no fxxking cowsense.

      Delete
    7. disqualify Michael Phelps also cos he did not swim his best and got third in the heat event! wah lao!

      Delete
    8. as a sport person myself, these people (i don't know who) really don't know what competition is all about. sportsman has becomes a puppet and an entertainer for them.

      Delete
    9. Cool down.

      Lucky I more into table-tennis!

      I happy we got an individual bronze after so many years since 1960!!!

      By the way, the badminton saga is not about playing our best - its about "collusion".

      Now that's a big no no - whether in sports or trading.

      I'm always amazed at how some syndicates churn the pennies and suck in retail like nobody business!?

      Delete
  6. who are these people who disqualify players? bloody no cowsense official! they the player are not cheating, they do not need to please the crowd. they played within the rules! @#$@$%$%&

    by the way, i'm also a ping pong (thats how it was called haha) player.

    p6, i got 4th in east district ok. the one who kick me out of the national tourament was no. 1 and 2 in national tourament. i remember that botak (champion) kick me out 21-6, 21-5 haha. what a disgrace.

    ReplyDelete
    Replies
    1. so i went on to become our sec school player, automatically ofcos.

      after about a few months, the coach fired me, really! cos i didn't go for training. i didn't know we really need to haha.

      we were playing football day and night, rain or shine even though we don't have an official school team.

      Delete
    2. and by the time i'm sec 4, i was invited to join the bedok junor team, not selected but just to join them for training.

      i said bye bye to football and hello to snooker.

      Delete
    3. Wow! You are very athletic!

      My table-tennis highest is South Zone team bronze medal only :)

      I play in the doubles as I not best of the best.

      I think that's the story of my life. I only good enough to join the school team; but never excel so that I can be top 3!

      I guess the bell curve distribution equivalent is that I belong to the "early majority" - not the top 5% elite.

      LOL! (I contented already lah!)

      Delete
    4. don't envy, you can see clearly whats "wrong" with me!

      the only thing i'm after is fun!, once thats gone, so as my interest. my learning curve is very steep but it also clashes very fast. it almost within a cycle of 2 to 3 years time frame.

      snooker a bit longer cos it contains element of gambling, so as trading. golf is the only sport i can't excel but still interested in.

      consistency and hardwork is my biggest "problem" (actually i don't see it as problems haha)

      Delete
    5. ey, one more..blogging!

      good right haha. (just see how many post i've done, yours + fats + another victim call jmot)

      Delete
    6. and somehow, thanks to blogging, i realised my english had improved a lot.

      don't forget, i'm a pure chinese educated guy where we learned a person who cook is a cooker, and the kitchen is in the chicken.

      Delete
    7. coconut,

      I googled "jmot" and found this guy not blogging anymore.

      What you do to Fats and jmot? LOL!

      I will do my best to keep having fun blogging so you can practice your England here.

      Delete
    8. ya, i like this guy cos he is such a generous guy (like me haha)...

      like you too la ok?

      ...i think i do contribute a little, the destruction of his dream to becomes a trader and i still think it is for the best interest of his family.

      as for fat, you should know why, that person responsible, i think still go around screwing people and having fun but making people misarable.

      Delete

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