SG Wealth Builder

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Disaster for SIA share price

SIA share price

As the year-end festive season approaches, investors of Singapore Airlines (SIA) have little to cheer about as SIA share price plunged to epic low of $9.17 on 30 October 2018. The last times that SIA share price was traded at such abysmal level were during the 2001’s terrorist attacks in United States and 2003’s SARS outbreak. Both events were black swan events that affected the industry immensely and changed the aviation landscape forever. But hey we are not having any crisis now, aren’t we?

As one of the major components among the prestigious Straits Times Index (STI), SIA is one of the biggest blue chips in the stock market. But investing in this leading light of SGX is not so straightforward as challenging operating environment and industry shifts make this stock highly unpredictable.

Given that SIA is the pride of our nation, can investors really sleep well with its stock? Are there any dark forces behind the recent meltdown of SIA share price? In this article, I will share my insights on the prospects for SIA share price and also explain why the ROE has always been terribly low.

SIA share price

Big boys fled SIA shares?

A review of market data on …

Dow Jones plunged 800 points

Dow Jones

On 4 December 2018, Dow Jones crashed 800 points due to concerns over the intriguing trade wars between United States and China. The devastating decline in Dow Jones wiped off billion of dollars from the stock market as investors ran for their lives. Evidently, the spectre of a recession looms large, casting a dark shadow on Wall Street as investors are not convinced of the trade tariffs ceasefire.

The latest stock market rout came as Dow Jones emerged from a black October in 2018 which saw Dow Jones plummeted from 26,800 to 24,400. The massive decline of Dow Jones must have freaked out investors new to the game. But then again, it is important to note that Dow Jones had one of the longest bull runs in stock market history, surging from 7,000 points in 2009 to a high of 26,600 in January 2018.

Obviously, what goes up must come down. Investors must brace themselves for such corrections and avoid making rash moves that could result in losses. Indeed, it turns out that 2018 is a year of revelation as Dow Jones had experienced serious bouts of corrections.

Dow Jones

On 5 February 2018, US Dow Jones plunged nearly 1,200 points, the …

Transforming the Concept of “Business as Usual”: How Augmented Reality (AR) is Impacting the Asian Marketplace

AR

It is no secret that Asia is quickly becoming a global economic powerhouse. In fact, some analysts believe that American dominance within this portion of the world is coming to an abrupt end (1). There are many reasons behind this paradigm shift and one of the most relevant involves the ways in which technology is being deployed across the online retail sector. Augmented reality is a perfect example of how smart businesses are leveraging the power of the digital revolution. Let’s take a closer look at how these innovative systems function before highlighting some of their primary benefits.

AR 101: Taking the Online Shopping Experience to an Entirely New Level 

We should first appreciate that the concept of AR has been in existence for some time. It was first seen within the real estate sector, as potential customers could access 360-degree perspectives of a home or an apartment. However, these systems were rather crude and their capabilities were decidedly limited. Technology has come a long way and AR can now be used by even smaller online enterprises in order to actively promote their top-selling products.

AR

AR essentially employs a series of images so that a specific item can be viewed …

Dark chapter for high-flying First REIT

First REIT

Is this the best window of opportunity to enter First REIT? The unit price of the health-care service provider had taken a severe knock after crashing 16% from 15 to 20 November 2018. Such devastating decline is unheard of among S-REITs and perhaps, illustrated a strange dark chapter for First REIT.

For sure, First REIT is widely regarded as one of the most established S-REITs and possesses a proven track record of solid distributions. First REIT was listed on the SGX mainboard on 11 December 2006. Since IPO, the unit price of First REIT had experienced an explosive bull run, surging from an IPO price of $0.53 to a peak of $1.47 in 2015.

First REIT

Even with the recent correction, long-term investors should be laughing all the way to the bank because of the mighty unit price appreciation and the long history of distributions paid out.

Notwithstanding the above, many investors should be having difficulty sleeping well at night as unfolding events threaten to derail the growth prospects for First REIT. Out of nowhere, First REIT unit price suffered an unexpected train wreck. Should investors start running for their lives? Or should investors stay put and hope for a windfall from …

Halcyon Agri share price suffered horrendous train wreck

Halcyon Agri

Despite being hailed as the world largest listed rubber supply chain manager, Halcyon Agri is ironically seldom covered by stock analysts in Singapore. In recent years, the company had experienced quite a massive transformation that saw them being acquired by China big boy, Sinochem. As a result, total revenue rocketed from $635 million in FY2014 to an amazing $2.66 billion in FY2017. Nonetheless, Halcyon Agri share price suffered a serious loss of form recently. What on earth has happened?

In investing, the key to winning is investing in companies with top market positions because you would want to invest in companies with competitive advantages and investment moats. Halcyon Agri has certainly positioned itself well by becoming the biggest listed rubber supply chain manager. But this does not mean that this counter is low-risk. On the contrary, the volatility of Halcyon Agri share price had been giving investors plenty of sleepless nights in 2018.

As a commodity supply chain player, Halcyon Agri share price can be vulnerable to the volatility of commodity prices. What this means is that market timing is important. So, you must set appropriate entry and exit strategies to avoid losing your pants.

Profile of Halcyon Agri

Halcyon …

Yanlord share price tumbled 30%

Yanlord share price

From a high of $1.86 in early 2018, PRC-based Yanlord share price suffered a severe decline to reach a startling low of $1.29. The crash of Yanlord share price is particularly mystifying given that it came on the back of a consistently solid financial results over the last 5 years.

Is the current Yanlord share price reflecting the true value of the real estate company or is the God of Wealth playing a trick on investors? To be frank, the issue facing Yanlord is not company-specific. Rather, the whole S-chip industry is currently suffering from a crisis of confidence among investors.

Loss of faith in S-chips

The lack of confidence in S-chips is not new and has been a well-known recurring problem in Singapore stock market for the past decade. It had been a devastating period of time as investors had lost much wealth when errant S-chips either went into financial difficulties or were “creative” in their accounting. As a matter of fact, the SGX Watch-list is littered with so many dead S-chips while there were cases of S-chips embroiled in corporate scandals.

Yanlord share price

Recent move by SGX regulators to require new S-chips to have cornerstone investors or state-owned enterprise brings …

Golden Agri Resources share price crashed to 10-year low

Golden Agri Resources

Golden Agri Resources holds a special place in my heart. This is the only blue chip which I tried to trade and subsequently lost $1200 in a single day more than 10 years ago. I can still remember that raw feeling when cutting losses on this counter. At the end of the day, I knew that I had made a mistake and decided to move on. Incidentally, Golden Agri Resources share price hit a low of 10 year recently. So I decided to initiate a review on this palm oil producer.

On looking back, losing money in stocks is never a good feeling but I had gained a lot of valuable lessons. Firstly, I had mentioned that there is no such a thing as good or bad stocks because in life, there are only flawed or right strategies.

At that point of time, I suffered losses on Golden Agri Resources because I had not done sufficient homework. I had failed to see that Golden Agri Resources operate in a cyclical industry and the shares are therefore prone to volatility. If I had held on the stock for a few more years, I would have enjoyed substantial capital gain because Golden …

Will gold price return to crazy high form?

gold price

Will gold price ever return to its crazy high form? The recent meltdown of Asian Pay TV Trust (APTT) share price must have depressed many investors. Indeed, the Straits Times Index (STI), as a whole, had been performing poorly in 2018. Wealth builders who had ignored the wisdom of diversifying their portfolio in different assets are paying a heavy price now. Should stock investors run for their lives and shift their attention to gold instead?

Recent stock market corrections do not represent a full-blown crisis. But it does not reflect a signal for investors to enter the stock market either. Wealth builders should heed the warning and start insulating their portfolios against the risks unfolding in the market. You certainly don’t want to be caught with your pants down when there is a violent stock market correction.

BullionStar

Then again, it is naïve to assume that the current unrest in the stock markets would lead to higher gold price in the coming months. This is because gold price is intricately linked to the monetary system, financial markets and central bank policies. In short, the drivers for gold price are not as simple as one would think.

Long seen as a safe …

Buying Silver as an investment in Singapore

Silver

The market for purchasing a variety of precious metals in Singapore has steadily increased in the last few years due to the removal of income tax or capital gains tax on imported investment grade precious metals such as gold and silver.

Investors are keen to take advantage of the savings they can make to ensure their deposits are even more profitable. Many of the products available include silver ingots but large numbers of silver coins are being imported from different countries around the world. Some of the coins have beautiful designs and are becoming popular as investments with collectors. You will probably recognise some of them fairly easily but others may be a little more obscure.

Silver

Canadian Maple Leaf

This incredibly popular coin was launched in 1988 and is produced by the Royal Canadian Mint. It has the country’s national symbol of the Maple Leaf on the front and overleaf has a portrait of Queen Elizabeth II.

Fiji Silver Taku

The beautifully etched turtle featured on this coin has seen it become an instant hit since its launch in 2010. It is issued on behalf of Fiji’s government by the Sunshine Minting Inc.

Australian Kangaroo

The purity of silver in …

Asian Pay Television Trust (APTT) share price on red alert

Halcyon Agri

Call it sheer madness or whatsoever. Within the span of two days, Asian Pay Television Trust (APTT) share price plunged by nearly 50%. Investors with weaker hearts might have suffered serious heart attacks watching in horror at the meltdown of Asian Pay Television (APTT) share price. After all, you don’t often get to see value of business trusts being eroded by so much in a matter of days. Well, that’s investing in SGX stocks for you.

In my previous article, Asian Pay Television Trust dances with the wolves, I wrote that investors should “hope for the best but expect the worst”. I was also bearish on this counter as I was not convinced that the management had the ability to turn around the trust. My view was that the unit price would come under further pressure. Recent Asian Pay Television Trust (APTT) share price vindicated my thesis.

As the saying goes, cheap things don’t come good and good things don’t come cheap. When a business trust is trading at such abysmal level, the price level may not represent value. There are investors who insisted on accumulating more units of Asian Pay Television Trust instead of cutting losses. Well, they …

Frasers Property Bond and CapitaMall Bond

Frasers Property

Another day, another market correction. The recent stock market performance must have freaked out many investors new to the game. Long-term investors and financial bloggers should be having great difficulties sleeping well at night as their stock portfolio plunged in value. Should stock investors run for their lives and turn to bonds like Frasers Property Bond and CapitaMall Bond?

In the pursuit of investment returns, many had ignored the age-old wisdom of wealth diversification. In this article, the investment merits of retail bonds (Frasers Property Bond and CapitaMall Bond) and government-linked bonds are discussed.

Frasers Property

Dark side of bonds

Most wealth builders dismiss bond investing because of the perceived low yields and illiquidity. Furthermore, investing in bonds is less exciting than stocks, which is comparatively more dynamic. In my perspective, I am not a big fan of bonds either because I am currently at the asset accumulation life-stage. However, as a fixed-income asset, bonds could offer a viable form of financial instrument, especially for retirement planning purposes.

In 2018, Temasek Holdings decided to join in the fun by offering the Astrea IV Private Equity Bond (4.35%) and the Temasek Retail Bond with 2.7% interest. The difference between the two is that …

Sembcorp Marine share price see red

Sembcorp Marine share price

The past is history and the future remain a mystery. Would Sembcorp Marine continue to fulfil its destiny as the world no.2 oil rig builder or would it collapse in style? Sembcorp Marine share price is set for a roller-coaster ride as the company faces yet another explosive full-year loss for FY2018. The last time Sembcorp Marine reported an annual loss was in FY2015, which saw it recording a massive loss of $289 million.

For sure, the winter had lasted longer than expected. It has been four years since Sembcorp Marine share price was trading at $4.00. Currently trading at $1.66, Sembcorp Marine share price is a shadow of its former self.

Although Sembcorp Marine is operating in a cyclical industry, there is no guarantee that the share price would restore to its heyday form. Should investors throw in the towel or keep faith with the management? In my view, I fear the worst for Sembcorp Marine share price if things do not improve in the coming quarters because of its grim financial data. In this regard, investors should brace themselves for a potential meltdown of Sembcorp Marine share price.

Sembcorp Marine

A whole new world

On looking back, 2018 has proven …

Programming your mind to financial success

AR

Have you ever been told that you are stupid and that you will never achieve financial success? I ever did suffer from such traumatic experience when my Chemistry tutor (who happened to be my civic tutor) labelled me as “stupid” in front of the class during a laboratory experiment.

In life, our encounters and experiences shape our perspectives. Subconsciously, the actions and words of those around us could have significant impacts on us,  though they may not harbour any ill-intentions. To achieve financial success, we need to overcome such negativity.

But simply telling people who are slow to “buck up” or “work harder” will not serve to motivate that person to improve. Conversely, you are likely to trigger a defensive mechanism than inspiring him to change for the better.

In this article, I will share my insights on how we can achieve financial success by programming our mind to accomplish greater things. Read on if you are interested to become a better wealth builder and achieve financial success in your life.

In school, we don’t learn such stuff. And nobody ever coached me on mind programming. Thus, when I was being labelled as “stupid”, I felt lost. But through this …

Return of the Structured Deposit and Structured Note

structured deposit

For many years, the loose monetary policy of United States led to a period of low interest rates across many countries, fuelling investors’ interest for alternative high yield products to grow their wealth. Singapore is no exception. Since 2014, Structured Products like Structured Deposit and Structured Note had been making their way back into Singapore market due to the low interest rate environment. Local banks have been promoting these financial products to satisfy investors lust for yields.

While Structured Deposit and Structured Note are in vogue (again), it does not mean you should throw all caution to the wind. On the contrary, you must understand the catch behind such alternative products to avoid losing your hard-earned money.

structured deposit

Era of wealth

Many wealth builders would recall that Structured Products like Minibonds and High Notes 5 were notorious for triggering the Great Financial Crisis in 2008. Thousands of Singaporeans lost their life savings when they bought these risky products, which they thought to be safe instruments.

As a result of the financial crisis, Monetary Authority Singapore (MAS) banned these products for a period of time to conduct investigations on whether the financial institutions selling these products complied to the guidelines and regulations. …

Best price for bullion in Singapore

BullionStar

Where can wealth builders find the best price for bullion in Singapore? Against the backdrop of plunging stock market performance, plenty of investors must be on standby to purchase gold bullion to protect and de-risk their wealth portfolios.

Best Price Guaranteed

Amid the challenging operating environment, BullionStar go one step further by signalling its intent to be the price leader for bullion in Singapore through its “Best Price Guaranteed” for bullion in Singapore. If you find a bullion product with a lower listed price for an available identical bullion product with the same delivery method at one of their Singaporean competitors, BullionStar will match this price and add a FREE GIFT to your order completely free of charge.

Since 2012, Singapore government exempted Goods and Services Tax (GST) for investment grade precious metals. This pro-enterprise move led to a slew of bullion dealers setting up shops in Singapore. Among the first movers was BullionStar. Initially located in the Marina Bay Financial Centre, BullionStar had gone from strength to strength and had expanded into its current location at 45 New Bridge Road, adjacent to both Clarke Quay MRT.

BullionStar

Over the years, BullionStar had become a leading bullion dealer in Singapore. Such …

OUE share price plunged to 14-year low

OUE share price

Since my last coverage on 28 March 2018, OUE share price had a devastating spell of run. Share price nose-dived from $1.80 to a shocking low of $1.37. After being walloped left, right, centre, OUE share is currently trading at a stunning 14-year low. Even during the dark days of The Great Financial Crisis, OUE share price had never crashed to such abysmal level. What could have happened?

A quick look at OUE shares revealed that the average 3-month volume stood at a mere 0.33mm. This means that OUE shares are thinly traded and may present some form of liquidity issue for long-term investors. In addition, despite having a market capitalization of $1.23 billion, this counter is seldom heavily shorted over the past three months. This means that even the big boys cannot be bothered with this real estate giant. Is OUE a value trap for retail investors?

OUE share price

Troubles come in troops

In all respect, 2018 has proven to be a mighty difficult year for most real estate developers in Singapore. The increase of Additional Buyer Stamp Duty (ABSD) to 12% and the tightening of loan limits had dampened demand for investment properties.  Of course, the unexpected cooling measures …

iFAST share price on steroid!

iFAST share price

Against the backdrop of market correction, the share price of numerous Singapore blue chips have retreated to new lows over the past one year. But one shining stock stands out among the sea of red. Of note-worthy, iFAST share price runs against the turn of tide and continues to be bullish despite headwinds in the market.

And I am still slapping myself for missing this multi-bagger as iFAST share price went on a majestic bull run since mid-June 2017. The stunning pace of iFAST share price caught many investors by surprise. Can iFAST share price continue to run? A lot will depend on how the management write the next chapter of growth for this enigmatic listed company, which has a lofty ambition of hitting $100 billion group asset under administration by 2028.

The attractive aspects of iFAST are that it is debt-free, has strong cash-flow and a scalable business that thrives in good times and bad times. Apart from Singapore Exchange, I struggle to find similar stock with such traits. In addition, iFAST has managed to reinvent itself successfully through significant capability enhancements recently. Henceforth, this article will examine whether iFAST share price is a good buy at current price …

Genting Singapore share price stormed by casino raiders

Genting Singapore share price

Being the only listed casino operator, Genting Singapore stands out as a rare breed of billion dollar enterprise among the pantheon of banks, GLCs and Reit counters in Singapore Exchange. Current market capitalization is $11.4 billion, while liquidity for this counter is also excellent, with average 3 month volume of 32.33 mm. Genting Singapore is also crazily rich, with $4 billion cash on hand. Given such pedigree, it certainly makes sense for investors to invest in Genting Singapore shares.

However, since the start of the year, Genting Singapore share price has corrected by 30%. The plunge in Genting Singapore share price had given investors a wild ride, not least plenty of sleepless nights. Indeed, it had been a turbulent period for Genting Singapore as it had to retrench 400 staff in 2016 as a result of regional economic slowdown and bad debts problem. Should investors run for their lives or hang on for their dear lives?

While the past has been a treacherous journey for Genting Singapore investors, the future could be an exciting one as the casino operator prepares its bid to enter Japan, the world’s third largest economy which recently just legalized gambling.

In my opinion, Genting Singapore …

Alibaba’s Jack Ma to revive SingPost share price?

SingPost share price

Nowadays, it is not surprising that many of the blue chips in Singapore Exchange suffer from poor stock performance because of the global headwinds and challenging operating environment. But this is certainly not the case for SingPost share price, which plunged after the announcement of 40% decline in net profit for Q1FY18/19.

Upon the release of the financial result in August 2018, investors sent SingPost share price reeling from $1.38 to as low as $1.03. Till now, SingPost share price has not recovered its form and is on course to retreat below the $1.00 mark. Should investors run for their lives?

Before writing this counter off, it should be noted that Alibaba’s Jack Ma is a major shareholder of SingPost, with stake amounting to 14.5%.

Question now is: will Jack Ma buy over SingTel’s stake of 21% in SingPost? Given that Alibaba’s stakes were bought in two tranches – 2014 and 2017 – at SingPost share price of about $1.40, the current valuation seems attractive for a surprise buyout. In life, never say never. Just look at M1 buyout offer by Keppel and SPH a couple of weeks ago.

Those who enter at current SingPost share price should be betting …

Is Imperium Crown Limited a nightmare investment?

Halcyon Agri

As an investment blogger, I think every stock deserves an unbiased coverage, no matter how good or bad the business or management performs. Thus, it is with an open mind that I decided to initiate a review on the investment merits of Imperium Crown, a Catalist-listed company that is based in Singapore.

Although Imperium Crown falls under the radar of many stock analysts, its story is nothing short of intriguing. Those who have invested in this counter would have a roller-coaster ride as the share price plummeted from $0.14 to $0.03. The stock would have been put under the SGX’s Watch List long time ago if not for the fact that this ruling is not applicable for Catalist-listed stocks.

When you have a stock trading at crazily cheap level like Imperium Crown, you do not know if there is any value left in the shares. After all, cheap does not equate to value. When investing in companies, there is a need to identify their competitive edge and then assess if the business fundamentals provide the sound basis for investments.

For investors of Imperium Crown, they would look back and lament that it is almost a case of a successful turnaround …

Black October for SGX stocks

SG Wealth Builder

On 11 October 2018, Wall Street ripped the world apart with Dow Jones plunging by 832 points. Local stock market index, Straits Times Index (STI) took the cue and fell by 84 points. The sharp decline marked the sixth consecutive day of losses for local stock market. Overall, it was a sea of red for SGX stocks.

The chaos in the market came on the back of new legislation by Monetary Authority of Singapore to report short selling activities. The move is aimed at reducing significant market disorders and improve transparency. Effective 1 October 2018, short sellers are not only required to disclose to SGX their short sell orders, but also to MAS if they hit the short sale threshold.

Whether the new policy would be effective in curbing the big boys’ movements remain to be seen. But I reckon the data collated would be helpful in allowing the authorities to do data analytics and make timely interventions during market chaos.

STI down syndrome

Since the start of October, STI has dropped by 200 points. At the rate of decline, STI appears to be on course to retreat below the support level of 3000 level. Is it the right time …

SingTel share price sitting on epic time bomb

SingTel share price

What a year it has been for the Singapore telecom industry. The crazy competition has seen StarHub retrenching 300 staff while M1 is the subject of buyout offer by Keppel and SPH. Despite the extensive shake-up in the local telecom industry, leading player SingTel stands tall against the relentless waves of changes. SingTel share price also remains resilient in the face of the unprecedented disruptions that had impacted StarHub and M1. With 735 million mobile customers in 21 countries, SingTel’s investment moat is indeed unassailable.

Investors would note that SingTel share price has been bearish in recent months. However, the recent M1 general offer had led to a mini recovery for SingTel share price because many observers deemed that the industry consolidation would benefit SingTel. But investors should not rejoice as a looming nightmare unfolds. As a matter of fact, the key battles to be fought for SingTel are in overseas markets, and not in Singapore.

In July, I wrote in the article “SingTel share price destined to collapse after ex-dividend day?”, that the sluggish performance of SingTel share price is due to seasonal trend but I anticipate a rough ride for this Singapore blue chip because of …

Can Creative Technology conquer the world again?

Creative Technology

For a company that has sold 400 million Sound Blasters, Creative Technology is an iconic homegrown company that I always admire and respect. The founder and CEO, Sim Wong Hoo is a legendary entrepreneur who had put Singapore on the world map and made us proud to be Singaporeans. Certainly, there are  not many people who could challenge technology giants like Apple and Huawei and sued them successfully for millions. But it really pains me that Creative Technology has fallen hard in recent times.

Can Creative Technology roll back the time and restore its former glory? Earlier this year, share price stormed back in style, surging from $1 to an incredible $9 within a week upon the release of its new marquee audio product. The resurgent share price indicated all is not lost for Creative Technology.

Indeed, it has been treacherous journey for investors of this venerable technology company. Share price of Creative Technology had plummeted from $60 in 2000 to an abysmal $1 as recent as 2017. Long-term investors could be forgiven for giving up on this counter. But is this stock really worthless?

Recent revival in the share price demonstrated that Creative Technology is still capable of …

StarHub retrenchment underscores dark chapter of telco industry

StarHub retrenchment

I can imagine SingTel CEO Chua Sock Koong rubbing her hands in glee as she read news of how arch rival StarHub struggles amid the unprecedent shake-up in the telco industry. Just months after StarHub failed to renegotiate contract with popular Discovery Channel, SingTel snagged the rights to broadcast the channels in October 2018. SingTel victory must be bitter to StarHub as the latter also lost the English Premier League broadcast to the leading telco more than ten years ago. Then, there is the StarHub retrenchment.

In my previous article, “StarHub share price to plunge after being booted out of STI”,  I have highlighted how StarHub share price is expected to face destiny after being demoted from the prestigious Straits Times Index.

But the announcement of the StarHub retrenchment was a bomb-shell and illustrated a dark chapter of the local telco industry. Perennially seen as one of the top dividend stocks in Singapore Exchange, should StarHub investors throw in the towel?

StarHub massacre

News of StarHub retrenchment raised eyebrows because of the sheer number of culling cited. According to the company’s press release, 300 full-time employees will be axed no later than the end of October 2018. The …

Top 5 dividend stocks with excellent ROE

dividend stocks

In Singapore, dividend investing has been gaining popularity among wealth builders seeking yield for their investment capital. However, dividend investing may not be so straightforward because there are many factors to consider when investing in stocks. This means that there is a need to delve deeper into a company business fundamentals instead of just using a screener to come out with a list of top dividend stocks to invest in.

In my previous articles, I have shared my insights on the top three dividend stocks in Singapore: Asian Pay TV Trust (dividend yield: 19.4% – 26%), Lippo Malls Indonesia Retail Trust (dividend yield: 9.9% – 12.9%) and HPH Trust (9.8% – 12.8%). In those articles, I have highlighted that although these counters offer mind-boggling high yields, there are risks involved as well.

In this article, I will share my research on the top 5 dividend stocks with excellent Return on Equity (ROE). The criteria used are minimum of 5% dividend yield for the past 5 years and minimum of 10% achieved for the past 5 years. The reason why I decided to refine the search is because I believe management’s efficiency in growing a company is important as well. A …

Nightmare of Lippo Malls Indonesia Retail Trust

Lippo Malls Indonesia

Dividend investing offers investors an opportunity of building wealth through passive income derived from periodic dividends. In recent years, real estate investment trusts (REITs) had emerged as a favourite among investors hungry for yields. However, simply looking at a stock or REIT from the perspective of dividend yield without gaining a deeper understanding of the business fundamentals can be dangerous. In this article, we will examine whether Lippo Malls Indonesia Retail Trust is a value trap.

As the adage goes, high returns comes with high risks. There are REITs like Lippo Malls Indonesia Retail Trust that offer yields above 5%. But whether such pay outs are sustainable is another issue. You also need to pay attention to other factors like the debts, growth momentum, management efficiency and tenancy profile. Sometimes macroeconomic plays a part too.

Lippo Malls Indonesia

Since the Great Financial Crisis in 2008, the quantitative easing by United States led to a slew of hot money flowing to emerging markets like Thailand and Indonesia. The aim of these hot funds had been to seek high yields that these emerging markets offered. Time flies and now the United States’ economy is improving. As a result, the Federal Reserves is deleveraging balance sheet, …

Bonds to the rescue for SGX

SGX

It is the right time to invest in SGX? Share price has fallen from a high of $8.50 in January 2018 to the current $7.30 level. The volatility in the share price of SGX is not surprising given that the financial market is very sensitive to the economy condition.

Over the years, I have seen SGX become more business-friendly vis-à-vis the antagonistic approach taken by the previous CEO, Magnus Bocker. The recent new rule on the dual-class listing of shares and the resumption of midday break in the securities market are just some of the examples of SGX trying to improve its corporate image. I am also excited over its on-going consultation to reduce the settlement cycle and streamlining of quarterly reporting. These changes would go a long way in making the investment community a progressive one in the long-term.

With dividend yield of 4.1%, I do think that current valuation may represent good opportunity to buy and hold SGX stocks for the long-term. But do you know that apart from a leading regional stock bourse, SGX is also the largest exchange in Asia for the listing of international bonds?

SGX

Volatility is good for SGX

If investors look back, …

Dark side of Ascott REIT

Yanlord share price

As a hospitality S-Reit heavyweight, Ascott REIT offers a form of passive income stream and exposure to a geographically diversified portfolio. Henceforth, for a period of time, I was very tempted to invest in this REIT supremo as revenue for Ascott REIT surged from $357 million in FY2014 to $496 million. Net income powered from $122 million to $214 million in the same period.

Indeed, it appears to me that investing Ascott REIT is an absolute safe bet. But certain aspect of its business strategies made me changed my mind. In this article, I will share my insights on Ascott REIT.

Profile of Ascott REIT

Since its establishment in 2006, Ascott REIT has grown into a top S-Reit with market capitalization of $2.33 billion and total assets worth a cool $5.3 billion. As a leading serviced residence player, its investment moat lies in having 11,430 apartment units across 37 cities.

Part of the reason for the success story of Ascott REIT is its unique business model of maintaining a balanced “stable income” and “growth income” management contracts for its property portfolio. I also love its growth strategies of acquisitions from its Sponsor (20 pipeline properties via ROFR) and the continuous …

DBS stock rallied on issuing of $1billion perpetual securities

DBS stock

It is the return of DBS stock. On 21 September 2018, DBS stock surged to a month’s high to reach $26. The performance of DBS stock is remarkable, given that the counter rose by 7% within 10 days. The rally followed the recent issuance of $1billion perpetual securities.

While DBS stock is still some way off the record high of $31 seen on 31 April 2018, recent data suggested that DBS stock may have been oversold. It is still too early to suggest that DBS stock price is poised for another bull run but recent recovery was supported by several factors.

As the bellwether of the economy, DBS stock price is obviously very volatile and sensitive to market conditions. Thus, I view DBS stock more of a growth stock instead of looking at it from a dividend stock perspective. In this regard, my opinion is that this counter is good to invest, but not ideal to invest and hold. Due to the volatility of bank stocks, the key to making money out of DBS stock is to set appropriate entry and exit strategies.

DBS stock

Then again, there are many critics who may argue that I should not advocate short-term …

Crazy Rich Mapletree Logistics Trust

Mapletree Logistics Trust

From a high of $1.36 in January 2018, unit price of Mapletree Logisitics Trust plunged to the current $1.24 level. The correction must have caused much agony for investors even if the DPU of $0.06 issued in 2018 had been factored in. In my humble opinion, the fall of Mapletree Logistics Trust unit price could be attributed to the equity fund-raising exercises in recent months.

Private Placements

On 19 September 2019, Mapletree Logistics Trust launched yet another private placement to raise estimated proceeds of about $475 million to fund the acquisition of the 5 logistics properties from CWT International Limited. A total of 309,917,000 New Units will be issued pursuant to the Private Placement, at discounted price between $1.196 and $1.234 per new unit.

This is the third private placement by Mapletree Logistics Trust in a row since August 2017. In May 2018, Mapletree Logistics Trusts launched a $220 million private placement to fund the acquisition of a 50.0% interest in each of 11 Hong Kong special purpose vehicles. Prior to that, in August 2017, a massive equity fund-raising consisting of private placement and preferential offering of $670 million was launched to fund the acquisition of Mapletree Logistics Hub Tsing …

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