November update

Cash Portfolio

Celestial’s 3Q revenue increased by 62% while net profit increased by 7.8%.  The lower rate of increase in profit is due to due to non-cash component of interest expenses on convertible bonds.  Company was able to increase the price of its product to mitigate higher cost of raw material.   Company is in progress to expand into production of bio-diesel, high protein nutrient beverages, power, noodles and pastries for 2008.

Midsouth completed its move to Lingxian plant at end September.  3Q and 9M results are positive with 9M revenue increased by 32 % and net profit increased by 21.5%.  Main contributor for increase is vehicles FRP and PP parts.  It is expected that firm will produce a good 2007 results.

Pacific Andes posted a strong 20081H results with revenue increased by 65.4% and net profit increased by 41.5%.  It is expected the group to continue with strong performance in 2H.

Received dividend of $41 from KODA.  Thank you.

I have purchased a small speculative stake in Lantrovision (50 lots at $0.06).  The micro cap has turned around from its loss in 2005 (due to bad debt) and has posted a 40% and 160% growth in revenue and net profit for FY2007.  The company provides design, implementation and installation of structured cabling system services.  I am unsure if company can consistently produce good results but the potential of company’s growth in the next few years is there. 

CPF Portfolio

Metro has announced $0.04 less tax interim dividend to further utilize the group Section 44A tax credit.  The group has posted a creditable 1H results with the shortfall in net profit attributed to change in value of short term investment.  The group is expected to gain from its disposal of Gurney Plaza in Penang and at the same time the closure of Tampines Metro will result in a drop of revenue from retail.  Metro City Beijing officially opened in September 2007 and this will lead to an increase in rental.

Received $153 and $19 from First Reit for dividend and capital reduction.  Thank you.

ComfortDelgro produced a consistent 3Q results.

I have bought 1 lot of Singapore Land at $8.45 which was 70% off its peak in September.  I do not quite understand the property sector but with its RNAV above $12, $8.45 seems a good entry price.  Not sure if I made the correct decision but I am confident that it will perform better with raising office rental and its price possession in the Marina area.

I also purchased 10 lots of Food Junction at $0.56 in view of its move to bring in more exclusive food stores to its food courts.  The group reported a drop of 19.2% in net profit for FY2007 largely attribute to the full disposal of Anhui Food Junction at a loss of 1.1 mil.  Food courts at Bugis and Great World City re-opened for business in September and October 2007 with the management pleased with the operation to date.  FY 2007 dividend is at $0.045 which gives a dividend yield of 8% at my purchase price.