I was considering a few semiconductor companies at the beginning of the month. (You can find the links to previous articles at the end of the post.)
Based on managements’ discussion in the latest earnings reports, there are encouraging signs that the tide is turning for the semiconductor sector.
Therefore, I decided to increase my holdings in both UMS Integration (Ltd) (SGX: 55D) and AEM Holdings (SGX: AWX).
However, as you might recall. I had limited funds for investment and reached the stock limit for my CPF Investment Scheme-Ordinary Account (CPFIS-OA).
Hence, to fund these purchases, I needed to partially divest HRnetGroup Ltd (SGX: CHZ)and The Hour Glass Limited (SGX: AGS).
As mentioned in the previous article on The Smart Investor, both companies are resilient and should remain profitable despite current headwinds.
While I still value both businesses, I believe the two semiconductor stocks offer better potential returns when the sector eventually recovers.
I estimate a possible recovery in the latter half of 2025, but the timing is uncertain and influenced by various factors.
Similar to the recent surge in Singapore REITs, a more effective strategy is to position our portfolio for recovery rather than trying to predict the exact timing.
Regarding REITs, the recent script dividends of both Mapletree Industrial Trust (SGX: ME8U) and Mapletree Logistics Trust (SGX: M44U) provided immediate return.
The subsequent price appreciation added over 10% to the initial dividend value. However, this also means that future script dividends will likely be more expensive.
Finally, for my U.S. portfolio, I’ve bolstered my position in SentinelOne, Inc. (NASDAQ: S) Recent developments have been promising.
SentinelOne has secured FedRAMP authorisation for its AI-powered security solutions. This means more government agencies can now adopt its products due to increased compliance.
Additionally, the company has entered into a multi-year partnership with Lenovo. This deal will expose SentinelOne’s technology to millions of new Lenovo PC.
Related articles
AEM’s Sharp Decline: Why I am Holding on to My Shares
Investing Opportunities in Singapore Semiconductor Companies: A Return to UMS Holdings
Micro-Mechanics FY2024: Recovery Prospects and Dividend Sustainability
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