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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StarHub retrenchment underscores dark chapter of telco industry

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 StarHub retrenchment is part of a so-called “strategic transformation programme”, which is expected to realise $210 million in savings over a three-year period from 2019.

For sure, the substantial cost savings would be of cold comfort to StarHub employees but investors bought into the news and sent the share price roaring to $1.95, the highest in four months.

The biggest victims of the telco battle are definitely StarHub’s employees. Laying off staff is obviously the easiest way for management to trim costs and improve earning margins. But what is galling is that the situation for StarHub has not even reached …

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Top 5 dividend stocks with excellent ROE

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 company that consistently has high dividend pay outs may not be sustainable if its growth lacks resilient in the context of a competitive market.

King of dividend stocks

The search for the best dividend stocks is quite interesting and threw up some outrageous observations.

Hafary Holdings Limited, a supplier of premium tiles, wood flooring and sanitary ware came out top of the list for top dividend stocks. With a market capitalization of only $71 million, Hafary is considered a very small cap. It made its way into SGX Mainboard after an upgrade from the Catalist in 2013.

dividend stocks

Although Hafary lacks …

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Nightmare of Lippo Malls Indonesia Retail Trust

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, causing funds to flow back to United States.

Indonesia is one of the emerging markets currently struggling against this wave of capital flight as rupiah weakened in recent years.

Profile of Lippo Malls Indonesia Retail Trust

Lippo Malls Indonesia Retail Trust debut in SGX mainboard in November 2007 with IPO price of $0.80. With market capitalization of only $769 million, this is one of the smallest S-REITs. This REIT started off with a portfolio of only seven malls in Indonesia with a net lettable area of 219,382 sq m. As at 30 June 2018, LMIR Trust’s property portfolio has grown …

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Bonds to the rescue for SGX share price

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 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 the shares 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, they would realize that the net profit for FY2008 was at $478 million, much higher than FY2018’s $363 million. Ten years ago, the Great Financial Crisis had ravaged the stock market, wiping off billions of market capitalization. And the share price was not spared either.

However, the business actually thrives on volatility in the stock market because the bourse operator charges clearing fees for both buying and selling of equities. Due to this factor, SGX recorded a massive net profit and benefit much from the upheaval in the local stock market in 2008.

SGX

Source: SGX

Arguably, the best performance of the bourse …

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