February 2019 – Portfolio Updates (Kraft Heinz Co. and more)

The second month of 2019 doesn’t bring too much happenings in my portfolio, apart from the fact that I have moved some of my funds around. I committed to being more aggressive with my fund allocation this year and pushed most of my extra funds into stocks within the past two and a half months.

In February, I made a divestment in AEM and sold all my shares at $1.06 per share. I can say that this decision has been rather quick, and although I did mention before that my target price for this stock was supposed to be $1.31, the actual intrinsic value based on more conservative calculations is in the range of $0.96 to $1.03.

The hard part was actually not to know what is the target price, but rather to foresee the growth of the business. I do not doubt that AEM has a strong order book for the next financial year as reported in their profit guidance for FY2019, and perhaps that can be attributed to having a good product, namely their patented test handlers. Nevertheless, I made the decision and sold all my shares at $1.06, locking in a profit of 40%, only to see it climb even higher to a $1.2x range at the moment of writing.

Oh well.

With the withdrawn funds, I pumped them into Kraft Heinz Co. (KHC) which made big news recently when its shares dropped by >30% in a single trading day. Not forgetting a 36% dividend cut.

Working in MNCs for the past 4 years, it has also made me realize how people can get comfortable with stable earnings without having the need to improve any processes. While this can be good news for a typical investor, sometimes the market demands shift and disrupts the big market players. When that happens, I believe that there is never, ever be a reason to justify for complacency.

I have to admit that this is a rather precarious decision on my part and I am not foreseeing any amazing growth likely for a big company like them. The main reason was purely because there is an opportunity that presented itself to me, and I believe that Kraft Heinz will still be around for a long time, and hopefully that they can find ways to bring their competitive edge out again in terms of their household brands.

More action and reallocation of my funds in March’s portfolio updates.

---

Portfolio Performance

Based on 28th February 2019:

Time-weighted returns: 11.82% V.S. STI ETF (3.24%)

Overall XIRR: ~10%

Still a far lead ahead of STI ETF and in line with my goals!

Dividends

AIMSAMP Cap REIT and Keong Hong were the contributors for February dividend income. I noticed that my dividend income for this month has increased by 44%, even though the stocks that went XD were the same in 2018. 😀

March will also be another exciting month for dividends because I made some strategic movements in my portfolio and coincidentally, most of the Ex-Dates for these stocks were also in March.

---

In addition, I would like to apologize in advance to one of my readers that requested for my income/expenses template. I think that request has been some time ago hidden in one of the comments in my recent blog posts. There has been some problem with my laptop trying to sync documents with Google Drive and I am working on the problem. Once the template has been correctly synced, I will blog about in another post.

Thank you for your patience on this matter. >_<

I’ll also be blogging about my expenses report for the first quarter of 2019. Do follow me (on the right side bar of my blog) if you want to know more about my financial developments. ^_^

Miss Niao xoxo.