Month: November 2019

OCBC share price won the battle but lost the war

OCBC share price

It’s official. 3QFY2019 results for OCBC showed that the Hong Kong protests did not rupture its businesses nor impact its growth. On the contrary, OCBC Hong Kong actually reported an 11% increase in net profit on year-on-year basis. In this regard, many investors must be able to sleep better at night. But is OCBC share price really out of the woods?

Despite taming the menacing fallout from the Hong Kong protests, there are signs that OCBC share price have peaked. In today’s context, it is unlikely that OCBC share price will hit the giddy high of $13.80 in 2018. The latest financial results revealed some hits and misses for the venerable bank. In this article, lets delve into the quality of OCBC 3rd quarter earnings and the potential outlook for OCBC share price.

OCBC share price

Note that this is an opinion article and not meant to be a financial advice. Please do your due diligence or engage financial advisors before investing in the stock market. Furthermore, I am not vested and have never invested in this counter before. Whether OCBC share price will surge or collapse has no impact on me. Thus, this article is not meant to induce readers to …

Eagle Hospitality Trust to blow up in pieces?

Eagle Hospitality Trust

Will unit price of Eagle Hospitality Trust blow up in pieces? Investors of Eagle Hospitality Trust look set for plenty of sleepless nights following more stunning revelations, which came straight after The Queen Mary fiasco. This time round, the management’s response to SGX queries on 1 November raised more concerns than assurance to investors. Why is that so?

Eagle Hospitality Trust initial asset portfolio consists of 18 properties, out of which 12 properties were owned by the Sponsor under its USHI Portfolio. The other 6 properties were from the ASAP6 Portfolio in which the properties were purchased from “third party ASAP6 Portfolio vendors”. The latest issue centred around the ASAP6 portfolio, and the information could provide a plausible rationale for the massive sell-offs by the big boys in recent months.

Eagle Hospitality Trust

Note that this is an opinion article and not meant to be a financial advice. Please do your due diligence or engage financial advisors before investing in the stock market. Furthermore, I am not vested and have never invested in this counter before. Whether Eagle Hospitality Trust unit price will surge or collapse has no impact on me. Thus, this article is not meant to induce readers to make any …

UOB share price in royal rumble with DBS and OCBC

UOB share price

It is the 3Q financial reporting season for the banks again. Will UOB share price edge over DBS and OCBC? With only 3 branches in Hong Kong, UOB Group has significantly smaller exposure to the Hong Kong civil unrests as compared to DBS and OCBC. But this is not to say that it is going to be a jolly ride for UOB share price.

For UOB share price, the real battle to be fought is actually the home ground – Singapore. After all, Singapore market is responsible for more than half of its operating profit. With Singapore economy slowing down in 2019, the outlook for UOB seems to be challenging.

UOB share price

By and large, 9MFY2019 results reflected a resilient performance as net interest income and net profit grew 7% and 8% respectively on a year-on-year basis. The report suggests that the strategy by merger wizard, Wee Cho Yaw, to focus growth mainly in Singaporean and South East Asia region had been prudent. As a result, I do not see UOB share price being shattered by the on-going fallout from the Hong Kong protests. The situation is different for DBS and OCBC, which had extensive businesses in Hong Kong through Dao Heng …

Eagle Hospitality Trust to sink or swim with Temasek Holdings?

Eagle Hospitality Trust

What a bad start for a REIT that barely got listed for six months! Debut in SGX only in May 2019, US pure-play REIT is facing some sort of crisis lately. At the centre of the storm is an astonishing article by The Edge Singapore revealing toxic inspection reports and a letter from the City of Long Beach to Urban Commons, sponsor of Eagle Hospitality Trust. In that letter, it was alleged that Urban Commons failed to meet obligations under The Queen Mary ground lease to make certain repairs required under the lease agreement.

The Queen Mary is one of the 18 properties held by Eagle Hospitality Trust, with valuation of USD159.4 million. Only Holiday Inn Resort Orlando Suites Waterpark, with valuation of USD162.8 million, carries a higher valuation. In this regard, The Queen Mary is one of the key assets of Eagle Hospitality Trust and the loss of this asset would likely have significant impact to Eagle Hospitality Trust.

Eagle Hospitality Trust

Eagle Hospitality Trust in dark chapter

The 23 October article by The Edge Singapore spooked the hell out of investors and sent the unit price spiralling out of control. The counter fell from USD0.65 to USD0.55, prompting the manager to …