Sunday, August 22, 2021

Bought United Plantations (KLSE)

Bought a 5% position in United Plantations (on the KLSE), an efficient Malaysian Palm oil producer.

Its a steady, boring dividend payer.  Their cashflows generated cover their dividends and capex.  They should do well if CPO prices rise in an inflationary environment.  Last year, they paid 85 sen dividends at a 90% payout ratio with an ASP of RM 2613.

For their 1H results

  • Revenue increased 43%, but costs were up 66%, mainly due to a labour crunch in importing foreign workers.  PAT was up 3%.
  • The refinery segment took a ~30m hedging loss, which should be reversed upon delivery of goods in the coming quarters.  Around 3 sen per share.

The biggest risk is if covid is detected in their operations, they may have to stop them.

Unlike REITS, they are debt free, so will not be affected by rising interest rates.

This idea was from Asian Century Stocks (paid link)

Saturday, August 21, 2021

Sold my Gold. Stop Trading a while.

2 weeks after I build up my large 9% gold position, it hiccuped:

After that, I reduced the large position, losing ~USD 1K, and am now down to a manageable 3%.  Will probably sell it all.

The macro environment keeps changing too fast.  If I trade now I need to hold smaller positions for shorter times.  That doesn't suit me so I'll stop trading for now.  I trade best when I am willing to buy at times that no one else is - and thats not now.

The market is still reasonably priced, I'll just buy dividend stocks instead.