Month: September 2019

Singtel share price smashed into wall

Singtel share price

What a gory correction. After delivering a set of disappointing quarterly results that saw Singtel clocking the seventh consecutive quarter of declining profits, Singtel share price tumbled from a high of $3.55 in July to a low of $3.12 on 27 September. The 12% correction would have caused long-term investors to panic. Question now is: where would Singtel share price go from here?

On 2 July 2019, I highlighted that Singtel share price would be entering a dark chapter but is still considered an excellent investment for the long run due to the telco’s massive regional presence. Thus, investors should stay calm despite Singapore share price volatility. To make money out of this counter, investors should set the appropriate entry price.

Singtel share price

Based on the current form, it seems that Singtel share price is likely to continue its bearish streak. Perhaps this could be a sign of things to come. For sure, the coming 1H results would dictate the form of Singtel share price. Unless the management announced significant moves that would provide positive catalyst to Singtel share price, such as the monetization of its loss-making ventures (cybersecurity and digital life businesses), it would take some serious effort to reverse …

Mapletree Commercial Trust (MCT) share price on fire!

MCT share price

There you go. The protracted Hong Kong protests claimed its first casualty among the prestigious Straits Times Index (STI) when it was announced on 5 September 2019 that Hutchison Port Holding Trust (HPH) will be booted out of the index. Replacing HPH Trust will be Mapletree Commerical Trust (MCT). The move should be a bid to contain the fallout from the Hong Kong protests. And it is not difficult to see why HPH Trust was chosen for the axe.

Currently, Hong Kong stocks make up 20% of the STI constituents. Other than HPH Trust (which was backed by the famous Li Ka Shing), the other five Hong Kong counters are all linked to the conglomerate Jardine Group – Hong Kong Land, Dairy Farm, Jardine C&C, JMH and JSH. Between HPH Trust and the Jardine Group, the obvious candidate to be dropped is HPH Trust, which has been a perennial falling star among the STI constituents. The question now is: why was Mapletree Commercial Trust chosen for the slot?

MCT share price

With a market capitalization of $6.11 billion, MCT is the largest REIT sponsored by Mapletree Investments Pte Ltd. Temasek Holdings has a majority stake of 35% in this REIT while other big …

Cache Logistics Trust to be gobbled up by Mapletree Logistics Trust?

Cache Logistics trust

Analysing Cache Logistics Trust is not easy. And it is not because of its business scale. In fact, with only 27 properties, Cache Logistics Trust is the smallest player among Ascendas REIT and Mapletree Logistics Trust. The difficulty in understanding Cache Logistics Trust is because the past two years had been such a whirlwind for this S-REIT that one wonders how on earth this S-REIT managed to stay the course till now.

When debt-laden HNA Group acquired the previous Sponsor of Cache Logistics Trust (CWT Limited) in 2017, it was a sign of things to come. In 2018, CWT sold off all its stake in Cache Logistics Trust to the manager, ARA. Currently, ARA is the largest shareholder of this S-REIT, with stake amounting to 9.6%.

Cache Logistics trust

With a market capitalization of merely $783 million, Cache Logistics Trust is considered a very small S-REIT. Given the current low market valuations and challenging operating environment, consolidation is inevitable in the S-REIT sector. In my view, Cache Logistics Trust could be an interesting acquisition for Mapletree Logistics Trust. After all, the latter splashed out a whopping $730 million in 2018 to acquire five ramp-up warehouses, which is a niche occupied by Cache. Forking …

Retrenchment support from WSG Singapore

retrenchment support

Nobody is ever prepared for retrenchment. And when retrenchment strikes, it certainly feels like the end of the world. This is especially so if you are a middle-aged white-collar PMET. With the job market saturated with young graduates and foreign talents, finding a position that matches your last drawn salary could be a challenge. Without retrenchment support, things can spiral out of control.

With the unfolding trade war between US and China, Singapore’s economic growth is expected to slow to 0 to 1% this year. Against this backdrop, the job market in Singapore currently looks hazy. According to Ministry of Manpower, the number of retrenchments in the first half of this year stood at about 5,500, slightly more than the 5,300 recorded in the same period last year.

retrenchment support

Whilst it is not possible to change the macro-economic conditions, Singaporeans can certainly take steps to safeguard themselves against the spectre of retrenchments. The worst thing in life is to be complacent and assume that your job will always be there. Such assumption may not be valid anymore given the structural changes in industries and the constant technological disruptions.

Our ability to earn income is key to building wealth. Therefore, it is …

Mapletree Logistics Trust (MLT) a dream or nightmare in the making?

Mapletree Logistics Trust

Crisis? What crisis? Mapletree Logistics Trust (MLT) rubbished all talks of market downturn as its unit price went on a rampant to smash a record high in July 2019. What a magnificent run!

Christmas certainly come early for MLT as it went on a billion dollar shopping spree. Not that investors are complaining of course as the unit price rocketed to a stunning high of $1.65 on 5 July 2019. Subsequently, the unit price was brought down to earth to the current level of $1.60.

Those who had bought MLT during its IPO in 2005 would have no regrets. Its public offer of 357.4 million units at $0.68 per unit was 43.88 times over-subscribed, reflecting the strong demand for the REIT. Over the years, the management had delivered the goods as the unit price of Mapletree Logistics Trust climbed steadily to reach the current $1.58.

Mapletree Logistics Trust

Till to date, MLT had distributed a total of $0.952 per unit to unit holders. With the massive capital appreciation, long-time investors must be laughing all the way to the bank.

Being 32.9% owned by Temasek Holdings, it is evident that MLT is destined to be one of the leading lights among the S-REITs. Currently, …

BreadTalk share price to sink or swim with Food Junction?

BreadTalk share price

It is the return of the prodigy as BreadTalk’s founder, George Quek, is reclaiming his throne – “Singapore Foodcourt King”. Since my last article on BreadTalk share price, this counter took on a life of its own when the bread company made headline news for splashing out $80 million for the acquisition of Food Junction. Many analysts balked at the price tag and there were plenty of critics claiming that BreadTalk had overpaid for a project that earned net profit of merely $3183.

On the contrary, I rate the acquisition positively despite the short-term harm it may cause to BreadTalk share price. In my view, the naysayers could be missing the forest for the trees. Many readers are not going to agree with my analysis but I do think that context is important here and one should not jump the gun just by looking at financial figures. You need to analysis the situation at big picture level when it comes to stock investing.

BreadTalk share price

The acquisition of Food Junction came at a time when CEO Henry Chu resigned due to personal and health reasons. Whether there is a power struggle behind the scene is subject to debate. But to be …

HPH Trust in bloodbath with Temasek Holdings

HPH Trust

It is case of lightning strike twice for Temasek Holdings! Investors of HPH Trust must be left punching the wall as the unit price of the business trust collapsed following the announcement of HPH Trust being given the boot from the prestigious Straits Times Index (STI) on 5 September 2019. Temasek Holdings is a major shareholder in both HPH Trust and Asian Pay TV Trust.

In 2018, unit price of Asian Pay TV Trust plunged after the business trust announced massive cut in distribution. For HPH Trust, the collapse of its unit price should be triggered by both the violent Hong Kong protests and the recent exit from STI. The exit from STI also came at a bad timing. When SIAEC (2017) and StarHub (2018) were booted out of STI, the share prices went into a tailspin. On this basis, I expect unit price of HPH Trust to crash into the wall in the coming weeks.

HPH Trust

The huge decline in HPH Trust and APTT would have inflicted some form of damages to Temasek Holdings as the sovereign wealth fund holds 14% stake in the former and 7.9% in the latter. Notwithstanding this, given Temasek Holdings’ widely diversified portfolio, I don’t …

Dark side of Lasting Power of Attorney (LPA)

LPA

According to a Well-being of the Singapore Elderly (WiSE) study conducted by Institute of Mental Health (IMH), the number of dementia cases in Singapore is estimated to be about 82,000 in 2018. And this figure could rise to a staggering 100,000 in a few years’ time as our population aged rapidly. This is a frightening statistic and hence set the context for the need to consider making a lasting power of attorney (LPA).

Life is fragile and unpredictable. You do not know when disaster will strike you. In my previous article, I wrote about how my late Dad’s devastating stroke left my family in a state of limbo for many years. Thus, it is never too early to start planning ahead because you never know when adversity will strike. But if misfortune does strike, make sure you are ready.

LPA

Like all things in life, there is a dark side for lasting power of attorney. In 2014, the court case of Yang Yin cast the spotlight on the role of lasting power of attorney (LPA). In that saga, Singapore saw how this legal document can be abused if it falls into the wrong hands.

So, what is exactly a lasting …

Singtel share price is so bad its good

Singtel share price

It seems like Singtel share price is in the mood for love again. After ex-dividend in July, Singtel share price suffered its seasonal meltdown, falling from a high of $3.56 in early July to the current low of $3.13. As one of the biggest telecom players in the region, Singtel is a blue chip. So the current bearish Singtel share price may represent a good opportunity to accumulate.

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.

Singtel share price

Based on the on-going market trend, it is possible that Singtel share price could reach the level of $2.60 in the coming months. According to data, 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 …

Personal finance: 20 years of winter in Singapore

personal finance

As an avid personal finance blogger in Singapore, I am passionate about personal finance and investment topics. My passion in personal finance stemmed from a challenging family financial background. So, it is definitely not by chance that I became a personal finance blogger. My goal for this blog is to share experiences relating to personal finance. In the process, I hope readers become better wealth builders.

Personal finance diary

The period 1994 to 2013 was the darkest chapter of my life, and also the longest winter for my family. We were very vulnerable then, and at the same time struggling to cope financially. My siblings and I were still schooling in secondary schools. Mom was a housewife and she received little education. Grandma was old and ailing. Dad was the sole breadwinner and his debilitating stroke plunged my family into an abyss of financial uncertainties.

I am a firm believer of working hard and smart to achieve success. In Singapore, regardless of social status and academic achievements, most Singaporeans should be able to earn good income if they are willing to work hard and smart. But what about those who are physically handicapped and struggling to make ends meet?

personal finance

For …