Migration to Maybank
1) Signed up for May-bank Share-builder plan. Will be going down to their branch tomorrow to setup the share-builder plan (300SGD /month STI ETF) and GIRO DDA Linkage.
2) I have to sell off all of my shares in Philips share-builder plan before I can close off the account. I have suspended the GIRO payment. Transfer to CDP or Maybank account is too expensive and not cost effective.
3) I have successfully sold off my 100 shares of OCBC (price 11.19) in the main market and 25 shares (price 11.16) in the unit share market. I have earned 19% returns (stopped DCA early). My initial hypothesis that the recession will be elongated was wrong and I successfully bought at market low and DCAed from $7 to $10.40 before I stopped the DCA. I didn't build up a sizeable position then due to risk aversion and limited cash flow. Still, I made a sizeable profit which I realised now.
Why Sell OCBC
i) OCBC is no longer cheap and the meat is all gone
ii) Migration from Philips to Maybank / CDP is too expensive
iii) This share may have limited upside as its fundamentals has deteriorated. (Huge drawdown to free cash flow, increase in debt to equity, No guarantee that Barclay business is profitable, Oil and Gas risks, Investment in Fintech will not benefit OCBC profit margin but only increased competition. Geopolitical risks with Kim shooting missiles over Japan). From a contrarian perspective if all the analysts are issuing a buy call there is no more meat left, the interest rate rally is fully priced in
iv) I need to raise up cash to invest in securities with better upside potential. I could be missing on the potential upside of OCBC but no one can really know what the future will bring.
SGX
SIlverLake Axis
Singtel
RMG
Tat Seng
Funeral Company
Why Sell STI ETF (Potential earned approx 8%)
i) Huge upside potential which is the reason I will continue DCA in Maybank, which has no custody or dividend fees, and lower transaction costs
ii) Forced to sell off now as transfer to CDP / Maybank is not cost effective.
iii) Need to liquidate my holdings to free up cash for my investments as well as overseas trip
iv) Potential escalation of regional armed conflict (Kim shooting missile over Japan) (Trump threatening the shutdown of congress) may have a impact on the price. I have 3 months to price the sale before closing off the Philips SBP
v) I suck at market timing. More so in a basket of 30 stocks whereby it is impossible to time its outlook precisely. DCA for the long run!
v) If there is a market correction in the banks again, I will revisit the stock and find a good entry point. As its fundamentals has deteriorated, I have to re-evaluate the entry price and margin of safety.
4) I need to do a EPS every month from my UOB account to Maybank Prepaid to fund the account before I can buy the shares. I will be completing my full analysis of Silverlake by this weekend before any decision will be made.
5) Once my STI and OCBC is completely sold off, I will withdraw all of my funds at one go and probably move them into my Maybank account. I will maintain an account balance of approximately SGD 1,500 at the pre-funded account in case I need to make any trades.
2) I have to sell off all of my shares in Philips share-builder plan before I can close off the account. I have suspended the GIRO payment. Transfer to CDP or Maybank account is too expensive and not cost effective.
3) I have successfully sold off my 100 shares of OCBC (price 11.19) in the main market and 25 shares (price 11.16) in the unit share market. I have earned 19% returns (stopped DCA early). My initial hypothesis that the recession will be elongated was wrong and I successfully bought at market low and DCAed from $7 to $10.40 before I stopped the DCA. I didn't build up a sizeable position then due to risk aversion and limited cash flow. Still, I made a sizeable profit which I realised now.
Why Sell OCBC
i) OCBC is no longer cheap and the meat is all gone
ii) Migration from Philips to Maybank / CDP is too expensive
iii) This share may have limited upside as its fundamentals has deteriorated. (Huge drawdown to free cash flow, increase in debt to equity, No guarantee that Barclay business is profitable, Oil and Gas risks, Investment in Fintech will not benefit OCBC profit margin but only increased competition. Geopolitical risks with Kim shooting missiles over Japan). From a contrarian perspective if all the analysts are issuing a buy call there is no more meat left, the interest rate rally is fully priced in
iv) I need to raise up cash to invest in securities with better upside potential. I could be missing on the potential upside of OCBC but no one can really know what the future will bring.
SGX
SIlverLake Axis
Singtel
RMG
Tat Seng
Funeral Company
Why Sell STI ETF (Potential earned approx 8%)
i) Huge upside potential which is the reason I will continue DCA in Maybank, which has no custody or dividend fees, and lower transaction costs
ii) Forced to sell off now as transfer to CDP / Maybank is not cost effective.
iii) Need to liquidate my holdings to free up cash for my investments as well as overseas trip
iv) Potential escalation of regional armed conflict (Kim shooting missile over Japan) (Trump threatening the shutdown of congress) may have a impact on the price. I have 3 months to price the sale before closing off the Philips SBP
v) I suck at market timing. More so in a basket of 30 stocks whereby it is impossible to time its outlook precisely. DCA for the long run!
v) If there is a market correction in the banks again, I will revisit the stock and find a good entry point. As its fundamentals has deteriorated, I have to re-evaluate the entry price and margin of safety.
4) I need to do a EPS every month from my UOB account to Maybank Prepaid to fund the account before I can buy the shares. I will be completing my full analysis of Silverlake by this weekend before any decision will be made.
5) Once my STI and OCBC is completely sold off, I will withdraw all of my funds at one go and probably move them into my Maybank account. I will maintain an account balance of approximately SGD 1,500 at the pre-funded account in case I need to make any trades.
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