SingPost share price crashed to 10-year low

Can SingPost share be your ticket to financial freedom or is it a value trap in the making? Perennially seen as a dividend counter, SingPost stock should have many supporters. But reality started to sink in for investors as SingPost share price plunged to a 10-year low recently.

On 28 December 2018, SingPost share price was trading at the level of $0.90, a complete disaster as the counter saw a massive correction of almost 30% since the start of the year. Indeed, the devastating spell of run for SingPost share price must be giving investors plenty of sleepless nights.

Defending SingPost share price

A reassuring note to SingPost investors is that the management religiously conduct share buy-backs throughout the year. Since January 2018, a series of share buy-backs saw the treasury shares rising from 9.3 million to 21 million in December 2018. The share buy-backs had provided much support for SingPost share price, which could have suffered a worse form if not for the share repurchases. SingPost share price Obviously, the case for SingPost share price is not unique as numerous counters were affected by the recent market sell-offs. But for SingPost, the correction started long time ago. In January 2015, the shares were trading at a sky-high of $2.14. However, a series of events combined to knock SingPost share price to the current dismal level. Thus, to attribute the poor form of SingPost share price to the toxic market condition may not be accurate.

Given the current situation, would SingPost be privatized? One cannot rule out such possibility against the backdrop of a slew of buy-outs for companies linked to Temasek Holdings in recent years – SMRT, NOL, Tiger Airways and M1. There may be impetus for privatization as both Alibaba Group and SingTel hold the key in reviving the ailing fortune …

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SPH share price plunged to record low

On 26 December 2018, SPH share price plunged to a record low of $2.33, a terrifying level not seen even during the dark days of The Great Financial Crisis in 2009. Given the devastating spell of run, investors must be sweating whether to run for their lives or buy on the dip.

And then there may be investors who are tempted to enter this counter on the premise that this could be a value stock in the making. For this group of investors, they must realize that fundamentally, SPH don’t make money from selling newspapers.

Traditionally, the media giant derives its revenue from selling advertising spaces. In this regard, the emerging challenges posed by social media and digital platforms are giving SPH a serious run for its monies. For SPH, revenue from print advertisements had been declining for the last few years. On this basis, whether SPH can stay relevant in this new digital economy would really depend on management’s execution in transforming its businesses to embrace digitisation. It is now or never. SPH share price For sure, the management is not fighting fire with fire. Rather, the strategy is to diversify revenue sources, with a focus in property investments. I guess as an institution, SPH carries the burden of promoting literacy among Singaporeans. So I don’t see the company ditching its core media business any time soon.

Falling knife of SPH share price?

As a venerable institution, SPH share is one of the major components of Straits Times Index (STI).  But then again, investors must really be careful of what they are buying into. For the past five years, SPH’s total revenue had collapsed from $1.2 billion in FY2014 to $982 million in FY2018. During this period, net income nose-dived from $404 million to $281 million. Given such alarming decline …

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SingTel share price and that “uh-oh” feeling

Apparently, the fierce winter has lasted longer than expected as SingTel share price hit the skids. On 17 December 2018, SingTel share price plunged to an outrageous 7-year low. The last time that SingTel shares were trading at such price level was in 2011.

In my previous article on this counter, I predicted SingTel share price to nose-dive to $2.60. While this nightmare scenario has not materialized (yet), the current SingTel share price bring little cheers for investors.

It has been an awful year for investors as SingTel share price suffered an explosive 19% correction since the start of the year. The rapid decline caught many analysts and investors by surprise. On the basis of the current run, it seems certain that this counter would enter 2019 in bad shape.

SingTel share price

SingTel share price see red!

All hell broke loose for SingTel share price after the announcement of 1H results which saw SingTel recording a massive drop of 60% in net profits. Excluding the divestment of NetLink Trust in 2017, underlying net profit fell 21%, due mainly to lower contributions from Airtel and Telkomsel, and a stronger Singapore dollar against the regional and Australian currencies. With such a report card, investors wasted no time in punishing the stock.

Despite the abysmal stock performance, I am sold on the long-term growth prospect of SingTel. Being a regional giant, the narrative for SingTel is compelling. Thus, the current correction could represent attractive buying opportunities. Note that I am not vested in SingTel at all, so this article is not meant to induce readers to buy SingTel shares. My investment philosophy is to make money at the point of buying, not at the point of selling. In this regard, my entry-level of [This is a premium article. The rest of the content is

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Dark side of Alibaba Group

When Alibaba Group got listed in NYSE in 2014, the IPO was considered an earth-shattering event among investment community. At that point, the market valued the e-commerce conglomerate at a staggering USD231 billion. While many investors salivated at the massive prospect of Alibaba Group, it is important to pay attention to the downside risks as well.

With a name based on legendary folklore, Alibaba Group’s rise to global prominence is nothing short of fairy-tale. Widely touted as the China’s answer to Amazon, can Jack Ma’s team fulfil their destiny?

A whole new world

Indeed, Alibaba Group share price didn’t fail to live up to its initial hype, surging from strength to strength to reach the incredible height of USD210 in June 2018. Back then, the sky is really the limit for this e-commerce giant as investors cheered the berserk run of Alibaba Group share price. Immense wealth has been created and many people became insanely rich overnight as Alibaba Group share price stormed to unchartered waters.

Alibaba Group

The recent trade war between United States and China has installed some form of sanity on Alibaba Group share price. But then again, will this trade dispute be able to hold the leash on the charging form of Alibaba Group share price for long? After all, the management is confident about the growth story and has embarked on aggressive shares repurchase program recently. As of November 1, 2018, Alibaba Group had repurchased approximately 9.12 million of their shares for a total purchase price of approximately US$1.33 billion.

For sure, the growth prospect of Alibaba Group is well-documented and there is absolutely no doubt about the tremendous growth of e-commerce in the huge Chinese market. But before investors get carried away, it is important to keep cool and assess the corporate governance of Alibaba …

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Can City Developments Limited CDL share price shake the blues?

Investors of City Developments Limited (CDL) can be forgiven for punching the wall. From a high of $13.50 in March 2018, CDL share price collapsed to the current dismal level of $8.23. Out of nowhere, CDL share price suffered a devastating train wreck, causing many investors to lose their pants. What has gone wrong with this leading light of SGX?

As one of the biggest real estate developers in Singapore, CDL share price has withstood the test of time and has weathered numerous property cycles through the decades. This time, I am absolutely convinced it will be no different. CDL share price With market capitalization of $7.6 billion, CDL is certainly one of the largest components among the prestigious Straits Times Index (STI). This means that CDL share price is extremely prone to fluctuations because short-sellers are likely to target the shares when Singapore property outlook turns sour. The 5-year beta of 1.125 vindicates CDL share price volatility. Of course, you can make money out of this stock but in my opinion, CDL share price remains an enigma to me.

If you look back, CDL share price went on a spell-binding bull run in 2017, surging from $8.30 in January 2017 to almost $13.00 in December 2017. With that sort of explosive run, it certainly seems that the sky is the limit for CDL share price. The magical run of CDL share price confounded many analysts because it came on the back of a declining financial results for FY2017, which saw net income decreased to $538 million versus $653 million recorded in FY2016.

But what goes up must surely come down. This is the universal law for investing. In this article, I will share my insights on CDL share price and provide a detailed analysis how major funds are influencing the CDL share …

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Perfect storm for Facebook share price

It is a battle that Facebook chief executive Mark Zuckerberg can ill-afford to lose. In July 2018, Facebook share price suffered a brutal decline, falling from USD218 to USD172. The devastating plunge of Facebook share price wiped out at least USD140 billion market capitalization from Facebook’s valuation. The frightening meltdown was largely attributed to its poor Q2 earnings and also a series of bad news. Since then, Facebook share price never looked back, continuing to roll down the slope.

For a social media giant like Facebook, its stock performance will always be measured by revenue growth. Indeed, for Q2’18, the revenue was an impressive 43% increase year-on-year. Thus, widespread concerns over its slowing growth had been grossly misplaced and blown out of proportion. For Q3’18, Facebook continued to achieve great revenue growth, recording 33% increase year-on-year.

Apart from its outstanding earning performance, another significant investment merit of Facebook is that it has zero long-term debts. For a technology company, this is indeed a very unique advantage because it does not need to leverage to fund its growth and investors do not need to worry about insolvency issues for Facebook. To put the icing on the cake, Facebook’s business is also very cash generative, with free cash flow (FCF) of USD 4.1 billion and cash and cash equivalent of USD 9.6 billion in Q3’18.

Facebook

Given the financial strength and performance of Facebook, it appears to me that there is simply no justification for its dismal stock performance. Nevertheless, the nightmare stock performance had given investors plenty of sleepless nights. On the back of an epic USD24 billion shares buyback program, should investors look at the big picture and buy on the dip? Or is the end-game nearing for Facebook?

In my point of view, Facebook is at an …

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Rampant Sheng Siong share price on magical form

Crisis? What crisis? In a year in which numerous SGX blue chips retreated to multi-year lows, Sheng Siong share price defied gravity and went on a rampant bullish form. The surprise form of Sheng Siong share price confounded many critics, including myself. How did the management achieve such feat against the backdrop of market correction?

Since IPO price of $0.33 in 2011, Sheng Siong share price had been surging in recent years and even smashed a record high of $1.18 in August 2018. The selling point for Sheng Siong is that it does not have any debts and the business model generates much cash flow. These drivers caused Sheng Siong share price to be immune to market uncertainties. Given the bullish form, should investors enter this counter or is it a value trap to avoid?

In response to my previous article, “From pork seller to CEO of Sheng Siong”, a member wrote an insightful view of Sheng Siong. I found his perspective refreshing and therefore decided to publish his reply (with his consent). In this article, I will also provide some updates and views in relation to the member’s reply.

Member’s view on Sheng Siong share price

Would it be the case that NTUC Fairprice and Dairy Farm are pricing their products at a premium increasingly and Sheng Siong seems to be more “co-operative”? Henceforth, Sheng Siong’s strategy could be to attract mainly the increasing middle to lower income group of consumers as well as the growing segment of retirees who are shifting to shop in Sheng Siong instead of NTUC Fairprice or Giant. Also  the group of shoppers that Sheng Siong attracted, tend not use mobile applications or do online ordering. 

A survey by AsiaOne indicated real situations with NTUC Fairprice. Although Sheng Siong was not

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Disaster for 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 institutional funds revealed an ominous trend for SIA share price. For four consecutive months (July – September 2018), SIA was among the top ten institutional net sell list. The most ferocious decline of SIA share place took place in July 2018, which saw SIA shares plunging from $10.94 to $9.67. The decline coincided with the massive net selling by institutional funds.

The big boys continued to sell SIA stocks until September. By October, SIA shares managed to stabilize at price range between $9.20 to $9.50.

Lightning struck twice for SIA share price

From a high of $11.70 in May 2018, …

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Dow Jones plunged 800 points

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 biggest single-day decline on record. The sell-off in the US market came after a smaller decline of 666 points on the previous Friday. As expected, Asia stock markets suffered similar carnage. Straits Times Index was down 121 points on mid-day 6 February 2018. Then in June, Dow Jones suffered yet another setback as it saw more than 1000 points being eroded within the span of two weeks.

Is this the start of a bear cycle or just a healthy correction? The nightmare performance of Dow Jones had given investors plenty of sleepless nights. Many analysts had been forecasting the trend …

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

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 from multiple angles. This helps customers better appreciate what is being offered. AR can be particularly useful during the buying process, as other functions such as the possibility of zooming in or out are also included. Whether referring to a piece of high-end furniture, a bicycle or a new car, products will be presented in an entirely new light. These are several advantages which can be directly attributed to such an approach. Some examples include:

  • Customers will have a better idea of what they are purchasing.
  • AR dramatically enhances the overall engagement process.
  • Products will literally “jump off of” the
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Dark chapter for high-flying 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 a potential fire sale by major shareholder, Lippo Karawaci?

Lurking troubles for First REIT?

The retreat of First REIT unit price was largely attributed to the Fitch Ratings Ltd’s downgrade of the credit rating of its sponsor, the Lippo Karawaci which had been under investigation by the Indonesian authorities for bribery. In addition, First REIT derives a substantial amount of rental income from Lippo Karawaci. Thus, if Lippo Karawaci do face cash flow issue, the impact to First REIT cannot be underestimated.

Source: First REIT 2017 annual report

Given the opportunities for bargain hunting, I have been asking myself whether …

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Halcyon Agri share price suffered horrendous train wreck

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 Agri’s business model is unique because it not only procures raw natural rubber from smallholders to feed their processing facilities, the company also owns about 122,000 hectares of rubber plantations in West Africa and Malaysia.

The production facilities in China, Malaysia and Thailand have a total production capacity of 1.63 million metric tonnes per annum. Overall, the Group owns 38 processing factories in most major rubber producing origins and produces sustainable natural rubber under its proprietary HEVEAPRO brand.

Apparently, Halcyon Agri’s impressive portfolio had attracted the attention of Sinochem International, a state-owned conglomerate from China. In 2016, Sinochem made a …

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Yanlord share price tumbled 30%

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 cold comfort to investors as well. After all, let’s not forget the near-collapse of China Aviation Oil (CAO) in 2004 after the employees engaged in massive derivative losses of USD550 million. CAO is state-owned and is controlled by the Chinese government. So having big boys behind the S-chips may not insure against their reckless business activities.

Incidentally, Yanlord share price started its free-fall mode after scandal of yet another S-chip, Midas broke out in early 2018. It was alleged that Midas, an aluminium alloy manufacturer for China’s railway system, was engaged in possible accounting frauds which saw the company transacting …

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Golden Agri Resources share price crashed to 10-year low

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 Agri Resources share price had ridden on the wave of high crude oil prices and surged to new highs.

Troubles come in troops

Fast forward a decade later, the operating condition is vastly different from then. In 2015, Golden Agri Resources was implicated in the worst haze in Singapore, leading the company to stop buying from a supplier alleged for causing the fire in Indonesia. The palm oil producer had denied the accusations and insisted that it maintained a zero-burning policy. Despite so, that episode had created an unwelcome negative publicity for Golden Agri Resources.

Golden Agri Resources

Subsequently, the Federal Reserves of …

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Will gold price return to crazy high form?

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 haven, gold is often regarded as the asset to hold in times of uncertainties. In fact, gold price went on a rampage bull form in the period of The Great Financial Crisis, hitting a peak of USD1,900 per ounce in 2011. The euphoria in gold was driven by the chaos in the financial markets and this fuelled the charge in the gold price. Will history repeat itself?

History of gold price

Gold’s intriguing place in the global monetary system dated back to 1870s, when central banks used the classical Gold Standard to manage money supply. Under this system, the value …

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Buying Silver as an investment in Singapore

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 this striking coin is 99.99%. It is issued by the Perth Mint of Western Australia and features a sunburst pattern with the kangaroo in the centre.

Suriname Silver Coin

As an official coin that was issued in 2013, the Suriname weighs one ounce of virtually pure silver. There is the country’s coat of arms on one side and a map on the other.

Armenia’s Noah’s Ark

Not many people immediately think of Armenia for silver investment but Singapore imports the Noah’s Ark which is available in various sizes from just one quarter of an ounce up to a hefty five …

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

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 had better be sure of what they are buying into.

Asian Pay Television Trust

Why should you invest in companies that produced declining profits in the first place? For all you know, you could be throwing good money after bad. This is not value investing. It is called speculative investing – buying on the hope of business turn around.

Nightmare for APTT investors

The devastating spell of run for Asian Pay Television Trust (APTT) underlies another dark chapter for this pay TV operator. Should investors run for their lives or buy on the dip? This is not an easy question to answer but I …

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Frasers Property Bond and CapitaMall Bond

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 the former is not guaranteed by Temasek Holdings or its subsidiaries while the latter is guaranteed by Temasek Holdings.

Nonetheless, it should be highlighted that bonds are not risk-free. The default of Swiber bond in 2017 and the Hyflux’s postponed coupon payment of its perpetual securities in 2018 revealed the dark side of investing in bonds (or bond-like instruments). Indeed, the risk of losing 100% of your capital is very real because of the default risk.

Swiber bond’s high coupon rate of 7.75% and Hyflux coupon rate of 6% should have been a warning sign that these are junk bonds …

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Sembcorp Marine share price see red

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 to be another false dawn for Sembcorp Marine as recovering oil price has not revived the global demand for new oil rigs.

According to data from the Baker Hughes website, the number of rigs in worldwide peaked at 3578 in 2014. However, since the start of the oil slump, the number has collapsed to 1400 in 2016. We are now approaching the end of 2018, and the number of rigs stands at 2271. Based on the data, it shows that the demand for new oil rigs is expected to be soft moving forward but is gradually picking up.

As a …

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Programming your mind to financial success

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 blog, I hope to encourage fellow Singaporeans to become a better version of themselves.

financial success

Taking ownership with IQ

As a 17-year old kid, being ridiculed as stupid was certainly a morale-crushing experience. It took me years to get over the rut because when someone of such authority made that sort of comment, you would surely have self-doubts. You would question your abilities and intelligence. And then, you might start to question life.

Instead of spurring me to become a better student, my teacher had inadvertently destroyed my self-confidence and ignited a slippery slope of identity crisis. For years, I have …

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Return of the Structured Deposit and Structured Note

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. The bans were lifted shortly after the completion of the investigations. Is Structured Product really the holy grail for yields?

To be frank, when it comes to investing, consumers have to play their part as well and not solely rely on the words of their financial advisors. Most of us forget [This is a premium article. The rest of the content is blocked and can be accessible by SG Wealth Builder Members only. To read the full content, please sign up as member.]

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Best price for bullion in Singapore

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 achievement is indeed notable because Singapore is a very small and competitive market. To gain market share in such niche industry is very challenging. In fact, the wave of consolidation in the gold market has claimed a number of casualties.

Changing bullion landscape

German gold dealer, Degussa Singapore, has closed shop in October 2017. The closure was stunning considering the fact that Degussa Singapore started operations only in 2015. Then Singapore Exchange also ceased its 25 Kilobar contract following poor market demand. Despite these, BullionStar continued to grow and recorded its 100,000th customer order on 9 May 2018.

In FY2014, …

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OUE share price plunged to 14-year low

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 knocked the wind out of many listed property developers’ share price. And OUE share price was not spared.

Then on 17 October 2018, URA announced the revised guideline to cap the maximum number of units for new private properties outside the central area from early next year. The move is aimed at curbing the growth of shoebox units but many analysts expect this latest move to bring down private properties prices. Following the release of this announcement, OUE share price never looked back and continue sliding from $1.45 to $1.37.

Beside the housing policies, OUE is also grappling with the …

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iFAST share price on steroid!

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 level.

iFAST share price

iFAST turns on the style

Indeed, what a journey it has been for iFAST, a trail-blazer fintech company listed in SGX mainboard only in 2014. For the uninitiated, iFAST is the parent company of online financial platform, Fundsupermarket.com. iFAST is well-known among the community for its innovative online products that result in much cost savings for consumers. But it is this competitive edge that riles its competitors and often lands it in hot soup.

In 2013, iFAST launched a special promotional offer through its online platform, Fundsupermarket in which [This is a premium article. The rest of the content

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Genting Singapore share price stormed by casino raiders

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 share price is currently trading at attractive level and this could be an interesting counter to invest because of the huge positive catalyst for Genting Singapore share price. However, to make money out of this stock, investors must be wary of the movements of the big boys and set appropriate entry and exit levels.

Genting Singapore share price

Show hand for Genting Singapore share price?

As of 19 October 2018, Genting Singapore share price was trading at $0.95. But the question now is whether current price level reflects the business fundamentals of Genting Singapore. After all, the consensus target price is $1.415. Against …

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Alibaba’s Jack Ma to revive 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 on potential Alibaba’s acquisition but a lot actually hinges on whether SingTel wants to unlock value through the divestment of stake in SingPost.

In 2017, SingTel had divested its stake in NetLink Trust and unlocked billion of cash. In this article, I will share my insights on why current SingPost share price may be a potential target for acquisition based on its book value and operating cash flow. And SingTel’s 735 million mobile customers may be key in unravelling the mystery of Alibaba’s investment in SingPost.

SingPost share price

Falling knife of SingPost share price?

The reason given for the recent poor financial …

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Is Imperium Crown Limited a nightmare investment?

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 as management had engineered a brief success in a very niche market. But it turned out to be a false dawn for investors.

Generally speaking, I don’t subscribe to the notion of business turnarounds in Singapore because they are rarely successful. But for some strange reasons, many investors found the term “transformation” sexy and often buy into business changes without realizing the risks involved due to the management’s lack of experience in project executions.

Transformation of Imperium Crown

For a company that was founded in 1995, you would expect Imperium Crown to have at least some form of track record …

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Black October for SGX stocks

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 to buy SGX stocks now? This is not an easy question to answer but a lot will depend on your investment strategies.

Those who bought into SGX stocks listed in the STI in early 2018 would have a lot of answering to do as STI crashed from 3600 to the current 3060. This is a major correction for the past 10 months and reflects investors’ jittery concerns over the unfolding global trade disputes between US and China and increasing interest rates.

There are investors who may be tempted to buy on the dip so as to dollar average their investments …

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SingTel share price sitting on epic time bomb

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 the company’s unique strategy of penetrating emerging overseas markets. This approach comes with a dark side.

SingTel share price

Venturing overseas

Since 1993, SingTel is left with no choice but to expand overseas because of the small market in Singapore. The move proved to be shrewd. Over the past three decades, the local market has saturated to such level that the current mobile penetration in Singapore is at a staggering 150%. In Singapore, SingTel remains the top player with 4 million mobile customers and holds 49% of the market share.

Currently, SingTel is not only the top mobile player in Singapore, but also …

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Can Creative Technology conquer the world again?

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 staging a comeback and we should not write off Sim Wong Hoo’s team yet.

Creative Technology

To make money out of Creative Technology stock, investors must be disciplined enough to set entry and exit levels. Fundamentally, this stock is not a growth nor dividend counter. As a growth stock, revenue growth is an important factor to consider for investors. But the problem for Creative Technology is that sales had free fall to such alarming level that it takes a very ardent shareholder to keep faith with the management. Will the much touted product, Super X-Fi, turn the tide for Creative Technology?

Legal

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