Where to deploy next?
Its tough calling yourself a yield investor when your core portfolio is made up of cash. that is the situation that i am in right now.
I could have missed the run up recently in REITs indirectly but i can’t do much about that as I am still recovering and would not like to take so much stress out of stock selection. Now that i can, I find my choices limited. Problem now is that when the year end bonuses do come, i might be sitting on really a fair bit of cash.
This morning i took alook at a report on Mobile one and its lacklusture performance. Compared to its peers (Starhub and Singtel), its story looks of one that is running out of ideas or direction. Underlying, it still manages its cashflow well. Yield is forecast to be around 6%. That is satisfactory by my standards. The problem is where will the growth of the company come from? It is currently hovering at 1.97. That looks good to me.
Macquarie Infrastructure did not correct as expected. It did not fly as well. At 9% yield it does look very attractive. Problem is how long will this last. I think i did my fair share of searching on how the revenue was formed and no point delving back again. However, one still needs to be cautious. Technically, it looks like it has failed to break the resistance of 97 cents. looks to be trending lower. Cmon now, show me where to get in.
Another stock that i have been watching for some time is Telechoice. This is part of a group of companies that i am very very well acquainted. Solid balance sheet, very bad margin(3-4%) its trading at 32.
Another one to watch is MMP REIT. At pleasant its yield is near 6%, but technically it looks toppish, failing to break and important resistance. With the underground walkway situation looming over them, i believe i can find a better price to enter.
No related posts.
If you enjoyed this post, please consider to leave a comment or subscribe to the feed and get future articles delivered to your feed reader.
Comments
Hi dnhh,
long time no see. you tone so strong. its nice to be put down by people when you start looking at stocks after not looking at stocks generally since mid august. one has to start from somewhere. if they are boring to you then i cannot do nothing to change your opinon.
perhaps i shouldnt start again at all since i dun measure up quite well to your standard.
regards.
What is my standard? I don’t even know it myself. Anyway, what does it got anything to do with me on whether you invest or not?
I commented not because trying to make fun of you. From MIIF till now, all along I can sense that there is a lack of conviction when you invest. Perhaps lowest in this writing. That’s why I said something. I think you do understand the danger of investing without (min) conviction.
Stress? Don’t know why you are stressful but stock investing is not and should not be stressful. If it is stressful then one should look into his/her investment process to find out where does the stress comes from. And change it.
A huge pile of cash is not a problem. Although it is not the best situation to be in but it is much better than wasting them with bad investing decision. One stock at a time, unless you are superhuman or speculator.
Where to deploy next? Or lack of idea? I can only say that your candidates, inside the list of high yield stocks and REITs and in this article are boring. Boring because everywhere I go, I keep reading their names again and again. Mostly by dividend lover. Everyone seem to be telling me that “Hey, these are the only high yield stocks around.” Impossible right?
I would like to borrow the following from Ron Muhlenkamp. “The current investing climate in our market is normal”. With STI being price neither too high nor low and no bubble around, stable normal interest rate. It is a stock picker heaven.