1Q 2025 Passive Income, OCBC and Alibaba.

Been a while since my last blog post.

Hope everyone is staying calm as stock markets crash around the world.

I produced a video last night which I hope helped to calm some nerves.

Here is the link,

AK71SG 

I do enjoy buying things when there is a sale.

I am dipping into my war chest and nibbling at OCBC and Alibaba 

OCBC because I think it is still the cheapest amongst the three banks.

Annualising the regular dividend gives me a 5.5% yield.

Based on a 50% payout ratio, this is attractive to me.

Of course, there is also a special dividend on top of this but that is a bonus to me.

As for Alibaba, I have made videos on this and why I thought there was a good chance of seeing HK$160 per share again.

So, I added to my position as its price plunged to around HK$110 per share.

I will probably add if it goes to HK$100 per share as that is where I see a major support.

I always say we can never be too sure and that is why we need insurance.

A war chest is insurance.

Insurance has a cost.

In the case of a war chest, opportunity cost.

Some people don't like paying for insurance and prefer not to have it.

Well, different strokes.

As for my 1Q 2025 passive income, it amounted to $37,008.44.

This is a slight reduction from a year ago primarily because of a reduction in exposure to Sabana REIT.

Contribution from CLCT also reduced this year as China struggles to recover.

The reduction amounted to $2,000 or so which isn't a tragedy, to be sure.

However, I am aware that I will probably see a larger reduction next year as I expect lower contribution from IREIT as their Berlin property is being repositioned.

The expected higher dividends from DBS, OCBC and UOB should provide some relief as they form almost 50% of my portfolio collectively.

In closing, I apologize for not replying to comments as I do not have the mental or emotional capacity with stuff that has been going on in my life these few weeks.

All of us should have a plan, our own plan.

If AK can do it, so can you.

Sold Alibaba For 51% Gain.

This morning, I sold half of my investment in Alibaba for a 51% capital gain.

It has been a long time since I last did any trading and this was a pretty nice one.

A 51% gain in less than 2 months was not something I was expecting.

However, this is what Mr. Market does.

We get surprises, pleasant ones and also nasty ones.

It is like opening a box of chocolates, someone said.

All we can do is to identify what we think are good entries and the rest is up to Mr. Market.

No one really knows what Mr. Market is going to do in the next few weeks, months or years.

I thought the downside was pretty limited.

I thought the numbers looked decent.

I got in when the chart said there was some long term support.

And I left the rest to Mr. Market.

If the price had gone lower, I had a plan as to where to buy more.

If the price should move higher, I had a plan on where to sell.

Alibaba wasn't a large investment for me and it has become a smaller investment now.

As it doesn't pay a meaningful dividend, the way to get more cash flow out of this is to trade.

This reminds me of the time when I was trading the Hang Seng Tech ETF and I think some of you might remember that.

So, what is my plan for Alibaba now?

My eventual target price for Alibaba is still HK$160 per share or so.

I talked about this before and in case you missed it, see:

Why sell now?

The rapid move higher in price does not seem sustainable to me and there is a chance we could see a pullback.

A pullback to HK$100 per share is possible.

A nice round number is an intuitive support level.

The SDR equivalent would be $3.40 per unit.

I could get in again then.

In case Mr. Market turns very pessimistic again, we could see price retracing all the way to the 200 days moving average once more.

This was at HK$80.00 but has moved higher and is now at HK$87.00 or so.

Naturally, with prices higher, this moving average is rising and we could see HK$90.00 soon.

That is just 10% lower than HK$100.

So, buying some at HK$100 looks OK to me and if price should sink another 10%, I might buy more as the uptrend would still be intact.

Anyway, just a short update.

If AK can do it, so can you!