BreadTalk share price lost steam

What a revelation. Investors must have that “uh-oh” feeling as BreadTalk share price plunged by 39% since reaching a record high in July 2018. It has been nearly 2 years since I last covered BreadTalk share price. Back then, I predicted that BreadTalk share price would be bullish with the purported property divestments.

Indeed, since that article, BreadTalk had enjoyed a splendid bullish spell in 2018. But as the saying goes, what goes up must come down. This is the case for BreadTalk share price, which spiralled out of control from the peak of July 2018.

BreadTalk share price

Following the stock split of 1-into-2 shares in May 2018, BreadTalk share price went into some sort of concussion and subsequently lost its bullish momentum. What could have led to the devastating meltdown of BreadTalk share price and what is the outlook for this homegrown counter?

BreadTalk share price thrashed

Every dog has its day. BreadTalk share price used to be one of the top dogs in SGX, hitting a pre-split of $2.50 on 3 July 2018. But the dynamics for this counter had changed swiftly. In the blink of an eye, BreadTalk had transformed into a dead stock, with average 3-month trading volume of merely 6.2 million. For the past 12 months, big boys had also gave this counter the cold shoulder, with minimal buying and selling interests. Apparently, the fiery form of BreadTalk share price had fizzled out.

In my previous article in 2017, I warned that the bullish form of BreadTalk share price would not be sustainable because it was not built on business fundamentals. Evidently, investors still see BreadTalk as a food and beverage player and any further good news from property divestments would unlikely to fuel bull run in BreadTalk share price.

It seems that the management has …

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Wilmar share price in lung bursting form

Since my last coverage in 2018, Wilmar share price went on a stupendous lung bursting form, surging from $3.20 in May 2018 to reach a multi-year high of $4.00 in recent days. The catalyst for the bullish Wilmar share price performance should be the approval of its subsidiary’s IPO application in China.

On 12th July 2019, Wilmar share price climbed from $3.76 to $4.06 on 26 July 2019 upon the announcement of China Securities Regulatory Commission (“CSRC”)’s acceptance of Yihai Kerry Arawana Holdings Co., Ltd’ (YKA)s application for its proposed listing on the Shenzhen Stock Exchange. YKA is a 99.99%-owned subsidiary of Wilmar.

Wilmar share price

While the recent form of Wilmar share price had been quite bullish, this counter has not reached the mighty level of $7.00 seen in the giddy days of 2010 when palm oil prices were at the peak. In recent years, Wilmar share price had been hurt by the collapse of the palm oil prices. Will the China IPO ignite another phase of explosive growth for Wilmar?

Wilmar share price in enigma

As a growth stock, Wilmar share price performance is intricately tied to its revenue growth. If investors look back, revenue had risen steadily from USD38.8 billion in FY2015 to USD44.5 billion in FY2018. Correspondingly, Wilmar share price rose from $3.20 in January 2015 to the current $4.00 level.

But analysing Wilmar share price is not easy because the company is a massively diversified agribusiness with sprawling global reach spanning across China, India, Africa and South East Asia countries. With more than 500 plants and 90,000 workforce, it is considered one of the largest food giants in Asia.

On the other hand, Wilmar share price is also quite volatile, with 5-year Beta of 1.07. The reason for Wilmar share price volatility could be attributed to [This

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Suntec REIT in royal mess up!

What a royal mess up! It has been a long time since my last coverage on Suntec REIT and it appears to me that this counter had plunged into some sort of crisis. Revenue from its office segment declined for five consecutive quarters on year-on-year basis since end 2017. That dismal showing saw former CEO Chan Kok Leong throwing in the towel in October 2018.

How did the former CEO of Suntec REIT mess up is beyond my understanding. From the data, it was shown that since 2016, the committed occupancy for Suntec REIT’ Singapore office rose from 98% to 99.5%. This was an impressive performance against the average overall Central Business District Grade A occupancy of 92%. But in every quarter of FY2018, revenue from office declined on year-on-year basis. This can only mean one thing – that the office rentals had been renewed at lower rates, resulting in revenue destruction for Suntec REIT in FY2018.

Suntec REIT

Amid the current bull run across the sector-wide S-REIT, the ailing performance of Suntec REIT stands out like a sore thumb. The laggard performance of this venerable S-REIT is actually legitimate due to its lacklustre operational performance. Despite the struggle, DPU remained resilient, dropping only 0.2% to 9.988 cents for FY2018.

However, I have always urged investors not to judge an S-REIT purely on the DPU history. It is important to assess the business fundamentals before parting away your hard-earned monies. In this article, I will share my views on the outlook for Suntec REIT in FY2019.

Will Suntec REIT see daylight?

Whether the former CEO Chan Kok Leong was forced to resign or simply left to pursue his own interest is subject to speculation. But given the abrupt nature of his departure, his resignation hardly seems like long-term succession planning.

Chan Kok …

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Monetary Mindset: How to Think Like the Wealthy to Find Financial Freedom

financial freedom

Sure, the very wealthy are different than the rest of us — and in more ways than just the lavish lifestyles you see on television and tabloids. The rich also have a different mindset when it comes to handling and managing their finances.

You likely think the wealthy guard their wealth-building secrets closely. And to some degree, that’s true. But there are many ways you can emulate their fiscal practices to find your own way to financial freedom.

Work with Professionals

It’s a myth that financial advisers are only accessible by the wealthy. In fact, people with moderate incomes benefit more from expert advice than those who are already financially secure. For example, Singapore firms such as Asiaciti Trust serve private clients who want to make their money work for them, retire early and secure a solid financial future.

Working with the right financial advisor allows you to invest, save, and grow the money you have. Choose a firm that has years of dedicated service and proven results.

Embrace a Wealthy Mindset

To be sure, Singapore has many rich and famous people—and movies like “Crazy Rich Asians” can make it seem like a typical worker can never attain personal wealth. But that mindset can serve as a roadblock between a go-nowhere career and true growth.

Many extremely wealthy individuals believe financial security is a right and something they worked hard to achieve. Of course, some people inherited their wealth. But others began in situations similar to your own. Instead of thinking that financial security was out of reach, they took action and never looked back.

The simple truth is that if you do not believe you can become wealthy, you will not. Change the way you think about life, money and security. Become a positive thinker. Realize that if you …

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Gold price in fiery rally

Since the start of 2019, gold price went on a rampage to reach an euphoric high of USD1440 per ounce on 19 July 2019. This was a remarkable high of 11% increase since the beginning of the year. Of course this was still way off the peak of USD1900 per ounce seen in 2011, but current form of gold price reflected the resilience of the yellow metal.

What actually fuelled the surge in gold price? Many analysts could not really pinpoint the real cause but two factors could have caused gold price to become bullish in recent months.

Drivers for gold price rally

Firstly, the global trade war and the risk of a no-deal Brexit had increased the level of uncertainties in the financial market. Although most people would agree that the current situation does not reflect a recession, the global growth outlook remains pretty challenging.

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 to reach 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 gold price smash to another new high? Probably yes, because the world has not seen another alternative safe haven for financial assets. In 2016, the crash of China stock market, Brexit and the US Presidential Election saw gold price surging from USD1100 to USD1300 per ounce within a year. So it appears to me that gold price is absolutely capable of staging another magnificent run. It is only a matter of time.

gold price

In 2018, US stock market suffered a couple of bloodbaths in …

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SPH share price in disaster

What a disaster for SPH share price! In my previous article in May, I wrote that SPH share price would likely to face major headwinds in the coming months. True enough, SPH share price suffered a catastrophic meltdown, falling from $2.48 on 12 July to $2.28 on 17 July. This represented a drop of 8% of SPH share price within 5 days.

Obviously, the correction of SPH share price was attributed to its dismal 3QFY2019 results. While its struggle in the media business is well-known to most Singaporeans, what caught most investors should be the startling extent of the business decline.

SPH share price

Operating revenue dropped 1.6% to $246 million for 3QFY2019 while net profits collapsed 44.1% to $26.2 million. The latest results marked the fourth consecutive quarterly decline. No wonder SPH share price rolled off the cliff. On the basis of the strings of poor results, it takes an ardent fan to be bullish with SPH share price.

Question among investors must be whether CEO Ng Yat Chung is the right man to lead SPH out of this ring of fire. Given that Ng Yat Chung only took over the helm in 2017, it is too premature to judge him. Usually I would give a new CEO three years to prove his mettle. However, based on the abysmal performance of SPH share price, investors’ patience must be wearing thin. Since CEO Ng Yat Chung took over, SPH share price consistently fell from $3.00 to the current $2.28 level.

What is the possibility of SPH being privatised? With the consistent fall in SPH share price, should investors run for their lives or keep faith with the Great General?

SPH share price in train-wreck

In my opinion, the outlook for SPH share price is pretty gloomy. The poor 3QFY2019 results was caused by …

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StarHub share price in last tango

StarHub share price has suffered an explosive loss of form in recent years, causing much heart pains for long-time investors. But the local telco is not going down without a good fight. In December last year, StarHub rolled out three contract-free SIM only plans (I would have signed up for the $50 SIM plan if not for the fact that I am still bound by contract to M1). Recently, redOne became the latest MVNO to lease network from StarHub, which currently boosts a total of three MVNOs.

StarHub share price to face $282 million baptism of fire

StarHub share price trashed to 14-year low

Despite the above positive moves, the outlook for StarHub share price is grossly dim. Once the brightest star among the SGX counters, StarHub share price had lost its shine considerably. To rub salt into injury, StarHub was even booted out of the prestigious Straits Times Index (STI) in 2018. Fellow comrade, SIAEC, suffered similar fate back in 2017 and its share price went into tailspin.

StarHub share price

As the telco war continues to unfold, I fear the worst for StarHub share price. Can StarHub CEO Peter Kaliaropoulos really lead the telco to the Promised Land or is it the last tango for StarHub share price? Make no mistake, the fourth telco has not even started operations yet StarHub share price already collapsed to such outrageous level. I cannot imagine the situation for StarHub share price once TPG Telecom ignites the battle.

StarHub share price in false dawn?

CEO Peter Kaliaropoulos started off his tenure with a bang by announcing a massive staff retrenchment as part of its overall “strategic transformation” that is expected to reduce costs by $210 million over three years from 2019. As a result, Starhub share price went into a frenzy, surging to a high …

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DBS bank share price fighting dragons and tigers

It has been a gut wrenching ride for investors as DBS bank share price went into a tailspin following the release of Q1FY2019 financial results on 29 April 2019. During the media briefing, CEO Piyush Gupta revealed that mortgage growth for FY2018 was under $2 billion, vis-à-vis growth of $4 billion in the year before FY2018.

The chilling revelation knocked the wind out of DBS bank share price. On 27 April 2019, DBS bank share price had hit a high of $28.40 but investors were spooked by the bank’s dismay housing loan performance. The data confirmed investors’ worst fear – that DBS’ loan portfolio will be hit by the 2018 property cooling measures.

DBS bank share price

Since that fateful day, DBS bank share price plummeted from $28.40 to a low of $24 on 3 June 2019. The mayhem prompted management to take action to arrest the plunging DBS bank share price. From 14 May 2019 to 3 June 2019, DBS purchased back 3 million DBS shares. The shares buybacks provided much critical support for DBS bank share price.

Can DBS bank share price continue to fight gravity? As the bellwether of the economy, many investors often scrutinize DBS bank share price because it is sensitive to the health of the market. You can make money out of the volatility of DBS bank share price but you can also lose your pants if you don’t monitor this counter carefully.

Big boys punting DBS bank share price

For three consecutive months, DBS was among the top ten institution net sell list from April to June 2019. In April, $50.5 million of DBS shares were sold by fund houses; in May, $81.7 million were sold while in June, the amount surged to a staggering $123 million. If it is not for the shares buybacks, DBS bank …

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Temasek Holdings lost its pants in Lippo Malls Indonesia Retail Trust?

Investing in Lippo Malls Indonesia Retail Trust is no fun. Since IPO, this counter has never reached the giddy height of IPO price. For those who bought at IPO and hold the units till now, the massive decline in unit price would have wiped out the returns from the total DPUs collected. In fact, the total DPUs issued so far was $0.398 but the decline was $0.56.

Nightmare of Lippo Malls Indonesia Retail Trust

Lippo Malls Indonesia Retail Trust in dark chapter

Given the massive decline in unit price of Lippo Malls Indonesia Retail Trust, long-term investors would have lost their pants investing in this counter. Not to mention the opportunity cost if they had cut losses earlier. Then again, retail investors should take heart that even big boys like Temasek Holdings also make mistakes in their investment thesis.

Lippo Malls Indonesia Retail rust

The DPU of Lippo Malls Indonesia Retail Trust had fallen so much since IPO. And for good reason too. The number of issued units had surged from 1.065 billion to  staggering 2.89 billion. To rub salt into injury, the unit price has also fallen to an abysmal level since IPO. The question now is: given the state of play, is it safe to enter this counter now?

Temasek Holdings walloped by Lippo Malls Indonesia Retail Trust

The problem with Lippo Malls Indonesia Retail Trust is not its business model. In fact, when the REIT got listed in 2007, Temasek Holdings was a major shareholder, owning 12.8% in this REIT mainly through Mapletree  Investments Pte Ltd(Lippo Malls Indonesia Retail Trust used to be known as Lippo-Mapletree Indonesia Retail Trust). For Singapore investment arm to make an investment, there must be compelling value proposition from Lippo Malls Indonesia Retail Trust right?

However, for some unknown reasons, Temasek Holdings sold its stake in 2011.…

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Sembcorp Marine share price ripped apart by corruption probe

On 3 July 2019, Sembcorp Marine share price collapsed 9% after revelation that its subsidiary in Brazil, Estaleiro Jurong Aracruz Ltda (“EJA”), had been stormed by the Brazilian authorities. The raid was in relation to a corruption probe, nicknamed “Operation Car Wash”.

Sembcorp Marine share price see red

Sembcorp Marine to ride out the storm

After the news broke, I fear the worst for Sembcorp Marine share price.

Sembcorp Marine share price

The corruption crackdown came at a time when Sembcorp Marine is still struggling to handle the industry slump. The timing is definitely bad because it is nearly light at end of tunnel for Sembcorp Marine share price as oil price had recovered to a reasonable USD70 per barrel level in recent months. The latest bombshell is an unexpected setback for the oil rig builder. No wonder investors are riled by the latest news.

Should investors brave the storm with Sembcorp Marine or run for their lives? Make no mistake, it had been a long winter for Sembcorp Marine share price. Five years to be exact. For those who refuse to cut loss in this counter, they must brace themselves for yet another roller-coaster ride.

Sembcorp Marine share price walloped

Obviously, the big boys took the opportunity to whack Sembcorp Marine share price. Short selling volume surged from a low of 45,300 on 2 July 2019 to hit a mighty high of 3.8 million. Since then, the volume reduced drastically to the 100,000 to 160,000 range. However, the drop in the short selling volume does not mean that Sembcorp Marine share price is out of the woods.

Investors would recall the hefty $552 million fine slapped on Keppel Corp in late 2017. The monstrous penalty caused Keppel Corp to suffer net loss of a staggering $496 million in early 2018. Keppel share price …

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Hyflux to sink or swim with SembCorp Industries?

So PUB had taken over Tuaspring Desalination Plant in May 2019. Since then, affected investors never had a good sleep. But that does not really mark the end of Hyflux saga. While the spotlight had been on the Tuaspring Desalination Plant, it is important to note that Hyflux is more than just Tuaspring alone.

Hyflux saga stinks to the high heaven

The embattled home-grown water treatment company also has Tianjin Dagang in China, TuasOne Waste-to-Energy in Singapore and Qurayyat IWP in the Middle East. In this regard, there is still value left in Hyflux. But the burning question now is: should Temasek Holdings, via SembCorp Industries, rescue Hyflux from the ring of fire?

Hyflux

In my view, many signs point to SembCorp Industries becoming the ultimate white knight for Hyflux. Firstly, PUB’s role as regulator is to oversight water operators and develop policies. The function of PUB is not to operate water plants like Tuaspring. Secondly, why should Singapore taxpayers fund the staff salaries and maintenance of Tuaspring? Henceforth, it is only a matter of time that Tuaspring be transferred to a local operator.

In Singapore, SembCorp Industries remains the leading homegrown player in the utility sector, with business segments in power and water treatment. Thus, it will make sense for Temasek Holdings to rescue Hyflux via SembCorp Industries because of the opportunities of scaling for the latter. Incidentally, SembCorp Industries has both power plants and water treatment plants in Singapore, China and the Middle East. So in terms of synergies, SembCorp Industries also has the best fit with Hyflux.

Will the acquisition of Hyflux by SembCorp Industries be a match in heaven or a double trouble in the brewing?

SembCorp Industries should dance with Hyflux?

At the onset, SembCorp Industries has its own set of problems to deal with as …

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Singtel share price in dark chapter

What a ride! Singtel share price had been on a fiery form since the start of the year. From a low of $2.86 in January 2019, Singtel share price rose from the dead to hit the current $3.50. Given the current bullish form of Singtel share price, investors must be tempted to enter this counter. But before getting carried away, investors must be wary of walking into a trap.

Make no mistake, there are very few companies in South East Asia that boost 690 million mobile customers like SingTel. On this basis alone, SingTel is considered a force to be reckoned with in the region. The truth is that Singtel is a good company to invest for the long-term but it does not mean that investors should buy the stock indiscriminately without strategy. You need to be careful with your monies and determine the right entry level for Singtel share price.

Singtel share price

Singtel share price in turmoil

Singtel share in for terrifying ride

Lately, management had gone on a charm offensive by announcing massive pay cut for the CEO and dangling the possibilities of unlocking the value from its loss-making ventures – cybersecurity and digital life businesses. The market went into overdrive, thinking that another windfall like the NetLink NBN Trust in 2018 is on the card. Nonetheless, my view is that Singtel share price is entering a dark chapter and could be poised for another correction. This time round, the correction should even be more severe than last year’s.

Singtel share price ready to collapse again?

The month of May was the turning point for Singtel share price as big boys bought Singtel shares. This counter hit the top of the institution net buy list, with fund houses net buying $127 million worth of Singtel shares. Retail investors should be …

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AIA Triple Critical Cover Insurance

According to the Singapore Cancer Registry Annual Report 2015, about 35 Singaporeans are diagnosed with cancer every day. This is a frightening statistic which gives me countless sleepless nights. As a sole breadwinner, it is important that I am covered adequately so that my family will not be financial affected if I am struck with anything untoward. In my last update on my insurance coverage in 2018, I revealed that I had purchased an endowment plan from NTUC Income. But I have forgotten to update that I had also purchased AIA Triple Critical Cover.

In this article, I will share my motivations for buying AIA Triple Critical Cover. I will also share the merits and limitations of AIA Triple Critical Cover. Note that this article is not sponsored by AIA nor am I giving any financial advice. I am just sharing my personal experiences. Readers should engage financial consultants if in doubt because everyone’s financial situation and needs are different.

AIA Triple Critical Cover

What attracted me to buy AIA Triple Critical Cover insurance was because of its unique selling point of ‘Power Reset’ feature, which restores the critical illness coverage amount back to 100% even for early stage critical illnesses. However, there are a major drawback for this policy that I will like to share so as to provide a more balanced review. I will also reveal how I go about to mitigate this risk.

Review of AIA Triple Critical Cover

Since the age of 18, I had been buying insurance policies. My late father’s devastating stroke had inflicted much financial hardship and I am determined not to let my own family members go through the same journey. I view insurance as key shield in protecting my family against financial losses. Thus, in buying insurance policies, I had always prioritized protection over …

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