In this aspect, I will be doing a front testing on this strategy, including all transaction costs, in order to ascertain whether this strategy will yield a positive result against the market STI ETF. I had made 2 modifications. One, to remove all S-chips from the list, which means to exclude all companies who have their main office in China. Two, to only select the top ranking 16 stocks from the list, as the marginal benefit from diversification becomes negligible at 16-18 stocks.
This is the top 16 stocks after ranking them in D/PTB and excluding S-chips.
Company Name
|
Ticker
|
Div Yield
|
P/BV
|
D/PTB
|
MFS Technology
Ltd
|
SGX:5BM
|
100.0
|
0.958
|
104.384
|
Rickmers
Maritime
|
SGX:B1ZU
|
16.2
|
0.276
|
58.696
|
Transcorp
Holdings Limited
|
SGX:T19
|
77.4
|
1.52
|
50.921
|
CH
Offshore Ltd.
|
SGX:C13
|
43.5
|
1.17
|
37.179
|
PNE
Industries Ltd
|
SGX:BDA
|
21.8
|
0.628
|
34.713
|
Aztech
Group Ltd.
|
SGX:AVZ
|
13.5
|
0.416
|
32.452
|
Ocean
Sky International Limited
|
SGX:O05
|
30.0
|
1.06
|
28.302
|
Fabchem
China Limited
|
SGX:BFT
|
4.69
|
0.167
|
28.084
|
Boustead
Projects Limited
|
SGX:AVM
|
34.2
|
1.32
|
25.909
|
Pacific
Radiance Ltd.
|
SGX:T8V
|
9.84
|
0.396
|
24.848
|
Hotung
Investment Holdings Limited
|
SGX:NT1
|
8.76
|
0.427
|
20.515
|
VibroPower
Corporation Limited
|
SGX:535
|
9.68
|
0.477
|
20.294
|
Excelpoint
Technology Ltd.
|
SGX:BDF
|
10.1
|
0.541
|
18.669
|
Willas-Array
Electronics (Holdings) Limited
|
SGX:BDR
|
8.34
|
0.447
|
18.658
|
Global
Investments Limited
|
SGX:B73
|
11.5
|
0.62
|
18.548
|
Marco
Polo Marine Ltd.
|
SGX:5LY
|
6.83
|
0.388
|
17.603
|
All stocks will be equally weighted, and price bought will be using the ask price from Standard Chartered trading account to better reflect the illiquid nature of the stocks. We start off with an initial investment of $10,000 to buy 16 stocks, and this is the breakdown. I try to equally weight them as much as possible.
Company Name
|
Ticker
|
Ask price
|
Lots
|
Cost
|
MFS Technology
Ltd
|
SGX:5BM
|
0.122
|
51
|
622.20
|
Rickmers
Maritime
|
SGX:B1ZU
|
0.215
|
30
|
645
|
Transcorp
Holdings Limited
|
SGX:T19
|
0.155
|
40
|
620
|
CH
Offshore Ltd.
|
SGX:C13
|
0.545
|
12
|
654
|
PNE
Industries Ltd
|
SGX:BDA
|
0.60
|
10
|
600
|
Aztech
Group Ltd.
|
SGX:AVZ
|
0.79
|
8
|
632
|
Ocean
Sky International Limited
|
SGX:O05
|
0.115
|
54
|
621
|
Fabchem
China Limited
|
SGX:BFT
|
0.21
|
30
|
630
|
Boustead
Projects Limited
|
SGX:AVM
|
0.755
|
8
|
604
|
Pacific
Radiance Ltd.
|
SGX:T8V
|
0.31
|
20
|
620
|
Hotung
Investment Holdings Limited
|
SGX:NT1
|
0.13
|
48
|
624
|
VibroPower
Corporation Limited
|
SGX:535
|
0.028
|
223
|
624.40
|
Excelpoint
Technology Ltd.
|
SGX:BDF
|
0.395
|
16
|
632
|
Willas-Array
Electronics (Holdings) Limited
|
SGX:BDR
|
0.79
|
8
|
632
|
Global
Investments Limited
|
SGX:B73
|
0.131
|
47
|
615.70
|
Marco
Polo Marine Ltd.
|
SGX:5LY
|
0.205
|
30
|
615
|
The total cost comes up to $9,991.30, with cash of $8.70. We will look at this portfolio again next year, 15 September 2016. As of now, the STI ETF cost $2.93, which we will be able to be 34 lots which cost a total of $9,962 with remaining cash of $38.
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