Quick update on my portfolio performance, it is probably the worst quarter I have experienced. I got a little too excited during the first few weeks of the downturn and bought too much. As the days turn to weeks, I felt like how the band continued to play when the Titanic was sinking. Depressing
What have I been buying? Well, oil tankers mostly, STNG, TNK, EURN, FRO, NAT(sold), INSW(sold), DHT(sold), you name it, I have it. They now comprise about 25% of my portfolio. With extremely low demand for crude and refined products like jet fuel, oil companies are starting to charter tankers to store oil and this had caused VLCC rates to rocket.
As for Singapore stocks, I have added to my existing holdings of Valuetronics, Powermatic Data etc which I have mentioned in my previous posts.
I also added Aercap (NYSE:AER), ,the largest airplane leasing company, somewhere near the lows. Main investment narrative is that AER is priced such that its clients will go bankrupt and not be able to pay the lease. However, we have seen numerous bailouts of national carriers which is positive for the airlines’ creditors like Aercap. Also, it is now trading at PEx2.5 (PEx1.5 when I bought it) which is extremely cheap.
By the way my favorite ratio to use now is EBITAC = Earnings Before Interest, Taxes, Depreciation, Amortization and Coronavirus haha. With so much stimulus going around, I believe that those with low EV/EBITAC will benefit the most as they resume to normal operations (NOT INVESTMENT ADVICE).
Moss Piglet Turns One!
Wow, when I first started to blog, it was mainly to record down my thoughts and investment thesis so that I have something to refer to when stock price performance are not going my way. Looking back my posts, I can’t believe that it has only been a year’s worth of writing.
Would like to thank my those that followed my blog and I’m also grateful to those that commented and post questions on some of my articles which made me revisit my thesis. Hopefully you guys are doing better than me right now.
Thanks for all your support!