SPH share price plunged to record 14-year low

What a calamity for SPH share price! On 28 August 2019, all hell broke loose for SPH share price as the counter breached the all-critical level of $2.00 to reach a low of $1.93. It seems that dark forces had won the battle as a whopping 3.2 million SPH shares were shorted on 26 August 2016, causing SPH share price to plunge into the deep abyss.

Is it going to get any worse for SPH share price? To be frank, I don’t know but current trading level is at a stunning record 14-year low. During the dark days of the Great Financial Crisis 2009, SPH share price had not even touched such crazy level. So you can imagine the level of panic among shareholders. It seems that SPH share price is currently on a path of destruction and there is no end in sight. At least not so soon.

SPH share price

Confidence means everything in the stock market. Thus, to restore the confidence level of SPH share price, the management bought back 576,300 shares on 26 August 2019. But the action proved to be futile as SPH share price continued to retreat. Against the current backdrop, SPH share is trading at the level below its book value (P/Book Value was 0.947) and dividend yield was about 4.3%.

While SPH is traditionally viewed as a dividend darling, investors must not judge a stock solely on its dividend yield history or projection. It is important to understand the overall business fundamentals, growth outlook and market dynamics before making any stock investments. Then again, the meltdown of SPH share price would have scared the living daylight out of existing shareholders. Would Temasek Holdings intervene and privatize SPH in order to preserve the value in Singapore media conglomerate?

SPH share price lost its way?

SPH share …

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Sheng Siong share price on a super bull run!

August had been a torrid month for many investors as the unfolding trade war between US and China roiled the stock market. Amid the stock market upheaval, Sheng Siong share price stands out like a shining diamond. Investors are left confounded as the unfolding trade war has absolutely no impact on Sheng Siong share price. To top it off, this counter even surge to a record high of $1.18 in recent days.

Given the bullish form of Sheng Siong share price, investors should have no complaints. Since IPO in 2011, Sheng Siong share price had stormed from $0.33 to the current $1.15 level. Investors are laughing all the way to the bank because of the huge capital appreciation and the consistent dividend pay outs.

Sheng Siong share price

The strong business momentum of Sheng Siong saw CEO Lim Hock Chee receiving the SBA’s Businessman of the Year award in early 2019. In 2015, the CEO also received the same award. Indeed, the consistent growth and solid business fundamentals lend support to the form of Sheng Siong share price through the years. Can Sheng Siong share price sustain its blockbuster form in the second half of 2019?

Sheng Siong share price in wonderland

On looking back, 2018 had been a defining year for Sheng Siong as the super-market operator opened ten new stores, bringing the total retail area to an all-time high of 496,200 square feet. Their first store in China, Kunming had its full year of operation in 2018 but recorded a loss of $0.7 million. The management is opening a second store, also in Kunming in 3Q2019.

For FY2018, revenue increased by 7.4% to $890.9 million as compared to FY2017 while net profit grew to $70.5 million, representing a growth of 4.6%. It seems that the growth strategy is simply to increase number …

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Yangzijiang share price to sink or swim?

8 August 2019 would be remembered by many investors as a scary day because Yangzijiang share price plunged by 20% before trading halt. On that fateful day, 10.5 million shares were shorted by the big boys, making it the highest volume stock being shorted.

As usual, retail investors were initially left clueless on what’s happening. It was only on 14 August 2019 that the management revealed in a SGX filing that the Executive Chairman and major shareholder, Ren Yuanlin, was currently assisting the Chinese authorities in a “confidential investigation”.

Yangzijiang share price

The SGX filing provided nothing specific about the nature of the investigation and also stressed that it is “business as usual” for Yangzijiang as none of its directors and business units are affected by the investigation. Yangzijiang share price subsequently recovered from a low of $0.86 to the current $0.95 level.

The recovery of Yangzijiang share price could be attributed to a lower intensity of short selling activities for the past week and also the aggressive shares buy back made by the management. Following the lifting of the trading halt, the management repurchased 12 million shares (as of 23 August 2019), partially restoring the confidence level of Yangzijiang share price.

The fact that the company was able to launch such aggressive shares buybacks showed that the company has significant firepower to take on opportunistic short sellers. Thus, it is better not to mess around with Yangzijiang share price.

career

In this article, I will share my personal opinions on this counter. I must put a disclaimer that I do not own any shares in this counter nor am I engaged in any short-selling activities. Whether Yangzijiang share price tank or surge will have no impact on me. In addition, this article is not meant to be a form of advice. Investors should …

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StarHub share price crashed into wall

Since my last coverage, StarHub share price suffered a catastrophic meltdown, falling from $1.55 to the current $1.35 level within the span of only a month. The culprit is, of course, the disappointing 2QFY2019 financial results. Against the backdrop of the persistent bearish StarHub share price, the telco certainly looks like a company in crisis.

When Starhub was booted out of the prestigious Straits Times Index (STI) in 2018 it was a harbinger of things to come. Fellow comrade, SIAEC, suffered similar fate back in 2017 and its share price went into tailspin. On this basis, I don’t see how StarHub share price can fight destiny as its mobile services business is solely entrenched in Singapore.

StarHub share price

The massive plunge of StarHub share price since 2015 would have inflicted plenty of heart pains for long-time investors as this counter used to be a dividend darling among Singapore investors. For sure, the entry of TPG had soured the mood for telco stocks and dented the growth prospects for local telco players, which already face a saturated mobile market in Singapore.

As the telco war continues to unfold, I fear the worst 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 starts its operations. Should Temasek Holdings intervene as the sovereign wealth fund holds a 56% stake in StarHub?

In this article, the latest financial results will be examined and I will share my views on whether a “do-or-die” merger between StarHub and M1 is plausible.

StarHub share price in false dawn?

For those who entered into this counter in 2018, they must have bought into the news of massive staff retrenchment that is expected …

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DBS Group share price thrashed by big boys

Troubles certainly come in troops for DBS Group share price. The recent Hong Kong protests would likely to inflict damage to its earnings for the second half of the year as Hong Kong market traditionally contributes the second highest profits to the Group (due to Dao Heng bank).

As Singapore economic growth is slowing down to 0 to 1% for 2019, DBS Group share price will also be among the first to be hit by a market slowdown. On the other hand, housing loans continued to fall because of the 2018 property cooling curbs. As of 30 June 2019, housing loans decreased to $73.9 billion from $75 billion in December 2018. But of more concern is the unfolding trade war between US and China, which threaten to derail DBS’ trade loan portfolio.

DBS Group share price

Against the above backdrop, can DBS CEO still laugh all the way to the bank? Maybe so. Given the massive run-up of DBS Group share price since 2016, CEO Piyush Gupta is still sitting on a healthy level of paper profits. Currently, the CEO holds 1.17 million DBS Group shares worth $29 million. Similarly, for those who entered this counter in 2016, they should see good capital appreciation for their investments.

But the question now is whether those who had entered earlier should cash in now or accumulate more DBS Group shares. Lately, DBS Group share price had been in jittery form as big boys came out in full force to thrash this counter. In the last week of July, a whopping high of 8 million DBS shares were shorted, sending DBS Group share price straight to the bottom of the cliff.

Great 1HFY2019 results

1HFY2019 saw trade asset volume decreasing by $68 million as compared to last year, signifying the current climate caused by the worsening global …

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Accredited investors to rock the heaven

“Gerald, do you know anything about accredited investors? If not, why don’t you research and craft an article about it? But please do not ever reveal my name”.

It was 2013 when a former wealth manager-turned-entrepreneur made this request to me during a meet-up. He had come across my blog and knew that my mission is helping investors to make better investment decisions. Through the years, my research on accredited investors make me realize how warped the game is being played against investors.

accredited investors

Be very sure, don’t ever be blur

2019 will be a defining year for accredited investors as Monetary Authority of Singapore (MAS) effect major changes to the regulatory framework concerning accredited investors. These changes probably came on the back of many investment casualties.

And it’s happening all over again and again. From Hyflux perpetual bonds of 2018, to the Swiber bonds of 2016, to the Lehman Brother’s Minibond, numerous Singapore accredited investors had suffered significant losses after being exposed to risky investments. No thanks to the work of wealth managers and private bankers.

The latest case involving Hyflux perpetual bond is not the first nor will it be the last. But why should you care or bother about it?

Well, you should. This is because many people are not even aware that they are being classified as accredited investors. The worst thing is that you may have elderly parents or unwitty relatives who are being deemed as accredited investors, making them extremely vulnerable of being misled into buying risky investment products. Many accredited investors may not be sophisticated investors at all. For example, they might have thought that perpetual bonds are low risk fixed income assets when it may not necessary be the case.

Many of you would presume that you would not suffer the same fate …

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OCBC share price lost its way

It is the perfect storm for OCBC share price. The recent Hong Kong protests would likely to hurt its business in the former British colony (OCBC has a presence over there because of Wing Hang Bank). Singapore economic growth is slowing down to 0 to 1% for 2019 because of the global trade war. Being the economy bellwether, bank stocks are sensitive to economic condition. Thus, OCBC share price will be among the first line of stocks to be hit by a market slowdown.

OCBC share price comes under further pressure following the release of financial results which showed that its total housing loans portfolio continued to fall to $62.4 billion as compared to $65.9 billion in the same period last year.

OCBC share price

Notwithstanding the above, OCBC announced a set of good Q2FY2019 results that saw net profits rising 1% to $1.22 billion. Net interest margin has increased to 1.79%. Also, the decline in housing loans had been offset by the huge increase in building and construction loans, which surged to $59.5 billion from $40.9 billion in last year. Despite the rosy report card, OCBC share price turned bearish and lost support at the $11.00. Current OCBC share price is $10.65.

In my view, the recent correction of OCBC share price is not unique to the bank alone. Both the share prices of DBS and UOB suffered similar meltdowns due to market sentiments over the escalating trade war between United States and China. The fear is that the trade dispute could impact trade loans and lead to global economic downturn.

In the last round of trade tariffs between the two countries, stock market had tanked and local bank stocks were not spared. Nonetheless, fear of a full scale economy downturn proved to be unfound. It seems that the trade disputes had …

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Singtel share price 12% plunge left investors in tears

The recent volatility of Singtel share price must have caused many investors to shed tears. From a high of $3.56 in early July, Singtel share price spiralled out of control to reach a low of $3.12 on 14 August. The decline represented a correction of 12% for Singtel share price within the span of only a month.

Obviously, the knock-out punch for Singtel share price came from the latest 1QFY2020 which revealed net profit had plunged by a whopping 35% to $541 million. The latest results came on the back of seven consecutive quarter of declining profits.

Singtel share price

On 2 July 2019, I warned that Singtel share price would be entering a dark chapter but is still considered a good company to invest for the long run because of its massive economic moat. Although this counter is ideal to hold for the long-term, investors must set appropriate entry-levels. Some members have enquired my entry level, which I have revealed to be $2.60.

Based on the trend, it is possible that Singtel share price could reach the level of $2.60 in the coming months. The lowest level for 2019 was $2.86 recorded on 3 January 2019. So unless the management announced some hugely positive news, such as the monetization of its loss-making ventures (cybersecurity and digital life businesses), it would take a herculean effort to reverse the bearish sentiments for this leading telco.

Singtel share price in the mood for love

Not many CEOs could last for so long after delivering seven consecutive quarter of declining profits. On looking back, CEO Chua Sock Koong probably prolonged her tenure after the divestment of Netlink Trust in 2017. That move saw Singtel making record profits and subsequently sent Singtel share price to the high heaven.

The wheels finally came off the wagon for Singtel …

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KIT share price to suffer same fate as Hyflux?

Will Keppel Infrastructure Trust (KIT) do a Hyflux? I have never been a big fan of business trusts. Just take a look at Asian Pay TV Trust (APTT) and Hutchinson Port Holdings (HPH) Trust. The unit price of both business trusts plunged to incredibly abysmal levels in recent years due to declining business fundamentals. Could Keppel Infrastructure be different?

Bizarrely, all three business trusts are linked to Temasek Holdings. Even more strange is that there are eerie similarities between Keppel Infrastructure Trust and Hyflux.

KIT share price

Like Hyflux, Keppel Infrastructure Trust owns just one power-plant (Keppel Merlimau Cogen Plant), which has been making huge losses and still counting. Similar to the ill-fated Hyflux, Keppel Infrastructure Trust issued $300 million 4.75% Perpetual Bonds. Oh yes, KIT also owns a 70% stake in SingSpring Desalination Plant, which was built by Hyflux. Gulp, all these sounds quite ominous right?

Nonetheless, with sovereign wealth fund Temasek Holdings as backer, chances of KIT share suffering the same fate as Hyflux is low. Temasek Holdings would not allow it to happen. But will KIT share price collapse like APTT and HPH Trust? Read on to see my review of KIT share price.

KIT share price to sink or swim?

With a 5-year Beta of merely 0.50, KIT share price is very stable. For the past 5 years, KIT share had hovered between $0.50 to $0.60. Distributions per unit (DPU) had also remained resilient. In fact, the DPU per quarter had increased from $0.0082 in 2014 to the current $0.0093.

On the surface, it may appear that KIT share price had been cruising along. In actual fact, the past few years saw the infrastructure player struggling to meet expectations. Indeed, the past had not been kind to KIT which had been impacted by the competitive electricity market and a …

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Singtel share price and StarHub share price unleash new terror on investors?

One quarterly financial result does not define the long-term prospect of a company. But following the release of the latest financial results, can Singtel share price and StarHub share price really fight gravity? It appears to me that that both telco players are heading into two completely different unchartered territories.

It was only a few years ago that the local telco stocks were deemed as defensive stocks because of their stable stock prices and high dividend pay outs. But the market dynamics changed swiftly with the introduction of a fourth telco player, TPG, in 2016.

Subsequently, StarHub share price plunged from $4.00 to the current abysmal level of $1.45. As the dominant player, Singtel share price remained resilient so far but had lost plenty of the bullish momentum seen in its hey-days.

Singtel share price

Is this the end of the road for Singtel share price and StarHub share price? In this article, let’s examine the outlook for these two counters.

Singtel share price stung by Airtel

Singtel share price is expected to come under pressure after the management delivered a set of trashy 1QFY2020 results that saw net profit plummeted by 35% to $541 million. On 2 July 2019, I warned that Singtel share price would be entering a dark chapter. The latest results validated my thesis that the previous bullish form of Singtel share price was not built on business fundamentals as 1QFY2020 results marked seven consecutive quarter of declining profits. With such results, it is difficult to be bullish with the short-term outlook for Singtel share price.

Understandably, investors must be worried that Singtel share price will free-fall when the stock market opens next week. But in my point of view, the correction in Singtel share price should [This is a premium article. The rest of the content is

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Sembcorp Marine share price to explode on potential merger?

Could it be the straw that broke the camel’s back? Since 2014, there were persistent rumours of Sembcorp Marine merging with Keppel Corp. But the rumours remain as rumours until now. With the explosive revelation of potential corruption charges and the recent meltdown of Sembcorp Marine share price, Temasek Holdings could be forced to show-hand.

Sembcorp Marine share price ripped apart by corruption probe

Sembcorp Marine share price see red

Incidentally, Keppel Corp was involved in another merger and acquisition activity (M1) in 2018. That might have stalled the proposed deal between Sembcorp Marine and Keppel as substantial resources would have been expended to fund the exercise. But now that the M1 saga is over, it is timely to examine whether Keppel would make a move to rescue Sembcorp Marine share price. After all, both entities share the same parent company – Temasek Holdings.

Sembcorp Marine share price

The impetus for the merger came at a time when the oil-rig builder continued to struggle in the midst of a protracted slow-down in the oil and gas industry. For 1HFY2019, Sembcorp Marine reported losses of $8.77 million. To make matter worse, its subsidiary in Brazil, Estaleiro Jurong Aracruz Ltda (“EJA”), had been stormed by the Brazilian authorities in July 2019. A hefty fine, possibly up to a few hundred of million dollar, would virtually raze Sembcorp Marine share price to the ground.

But perhaps a more frightening news is that the management also warned investors that “the company is expecting the losses for the second half to be higher than the first half”. With this upfront disclosure, investors should anticipate a perfect storm for Sembcorp Marine share price in the coming months.

With a 5-year Beta of 1.38, Sembcorp Marine share price is surely very volatile. The question now is: should Sembcorp Marine …

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SGX share price on sparkling form after reporting highest profits in 11 years

SGX share price is in the form of its life following the release of solid full-year financial results for FY2019 that saw the bourse operator delivering the highest profits in 11 years. Revenue of $909.8 million was also the highest in 19 years. With such stellar report, no wonder SGX share price rocketed in recent weeks.

It has been 4 years since Loh Boon Chye took over as CEO of SGX. On the basis of the past four years of financial records, I would give Loh Boon Chye an A+ for his leadership performance. Under his tenure, net profits surged from $349 million in FY2016 to $391 million in FY2019. What is even more impressive is that the Return on Equity (ROE) has increased to 36%. Against this backdrop, will SGX share price hit $10, a level last seen in 2010?

SGX share price

On looking back, Loh Boon Chye certainly brought peace and stability to SGX share price. This is in deep contrast to his predecessor, Magnus Bocker, who presided SGX over the period of penny chip meltdown, trading breakdowns and the fallout from the S-chips saga. While these episodes had long blown over, SGX is dealing with a new set of challenges – dearth of IPOs and slew of companies applying to delist.

In my opinion, whether SGX share price can re-capture its giddy of height again will largely depends on the execution of the CEO’s multi-asset strategy. Currently, SGX is focusing its business in equities, bonds, derivatives and data connectivity. Read on to find out the prospect of SGX share price.

SGX share price turbocharged by derivatives business

In my opinion, SGX share price is unlikely to suffer the same fate as SPH, M1 and SingPost. This is because the management has managed to reinvent the wheel over the past …

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ST Engineering share price in explosive rally

It seems that Temasek Holdings had chosen the right man to lead ST Engineering. Prior to Vincent Chong taking on the top job in October 2016, ST Engineering share price had been roiled by a devastating corruption scandal news that broke in 2014. That episode saw ST Engineering share price collapsing from $4.40 in 2013 to a low of $2.70 in early 2016.

Since then, ST Engineering share price has finally seen glimpse of light at end of the tunnel. With a new CEO and a major rebranding exercise, this corporate behemoth appears to put to rest the haunting dark chapter.

ST Engineering share price

ST Engineering share price performance was indeed intriguing. I would have bought into this counter a couple of years ago if not for the appointment of the new CEO. Usually, I would avoid companies which experienced a change of leadership because of the need to give the CEO to implement his ideas. This is especially so as Vincent Chong’s background was previously from the oil and gas sector. But my concern proved to be invalid as Vincent Chong managed to revive the ailing ST Engineering share price.

As expected, the aerospace business provided the impetus for ST Engineering share price. In April 2019, ST Engineering announced a massive $1.3 billion aircraft maintenance contract win from a North America customer for its aerospace sector. Then in July, ST Engineering followed up another series of aircraft maintenance contract wins worth $809 million. ST Engineering share price rocketed subsequently.

As one of the two big boys in local aerospace MRO industry, will ST Engineering share price suffer similar fate as SIA Engineering share price? In my view, this is highly unlikely based on a few factors. In fact, the long-term outlook for ST Engineering share price should be positive.

ST Engineering share

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