Year: 2019

DBS Group share price set for another hellish ride?

UOB share price

After delivering ten consecutive quarter of increasing profit, DBS Group share price should logically be in heaven right now. However, in life, things aren’t always so straightforward. Whilst the business fundamentals of the bank remained positive, the narrative for the global macro-economic conditions had turned dark. Against this backdrop, DBS Group share price hit the skid to reach the current $24.50 after smashing a record high of $30 in April 2018.

Question now is will Singapore’s DBS Group share price join Hong Kong protest? 11 November 2019 will be destiny day for DBS Group share price as the bank will announce its 3rd quarter financial results for FY2019. Many investors are holding their breath for the release of the financial data. This is because Hong Kong market contributed the second highest profit to the Group (due to Dao Heng bank).

DBS Group share price

To illustrate how important Hong Kong market is to DBS Group share price, the net income from its Hong Kong subsidiary for 1HFY2019 was $755 million while Singapore contributed $2.24 billion. The rest of Greater China contributed only $145 million while the rest of the world provided $118 million. Assuming that the property disposal gain of $86 million in last year was excluded, the net profit actually grew 15%. Thus, Hong Kong market turned in a very strong performance prior to the protest.

In my view, investors should brace themselves for another hellish ride upon the release of 3QFY2019 results. When 1QFY2019 results were released on 30 April 2019, DBS Group share price bombed out from $28.40 to reach $24 in end of May. Then 2QFY2019 results also led DBS Group share price to crash from $26.60 to a low of $24 in end of August. For the record, in both 1Q and 2Q, DBS Group had delivered …

Keppel DC REIT share price in unstoppable form

Keppel DC REIT

What an explosive bull run! From $1.00 in 2016, Keppel DC REIT share price went on a rampage to reach a high of $2.00 in 2019, representing a 100% increase in value within a span of just three years. Unitholders of Keppel DC REIT must be laughing all the way to the bank. Amid the current rally in S-REITs sector, is the current form of Keppel DC REIT share price sustainable?

Hailed as the first pure-play data centre REIT listed in Asia on SGX, Keppel DC REIT is certainly riding on Singapore’s aspiration to become the Smart Nation. During its IPO, the portfolio comprised of only eight data centres. In the blink of eye, the portfolio has grown to 15 data centres spanning across Asia and Europe. The number of data centres will rise further to 17 as Keppel DC REIT is recently acquiring two data centres in Singapore – KDC SGP 4 located in Tampines Industrial Park and 1-Net North DC in Woodlands. As 67% of the portfolio is in Asia while 33% is in Europe, the management has built a diversified portfolio indeed.

Keppel DC REIT

Being a data centre service provider, Keppel DC REIT is an interesting long-term REIT play because the business is relatively immune to economic cycles. During market downturns, people are likely to shop less at shopping malls and dine out at restaurants less often. However, it is unlikely that people will reduce their usage of data even during market downturns. Furthermore, with 5G rolling out, demand for data will only increase exponentially in the future. Thus, if the management played the cards right, the long-term prospect would be very bright for this S-REIT.

One of the biggest merits of Keppel DC REIT is that the weighted average lease expiry (WALE) is 7.8 years. This is much …

CapitaLand share price set for explosive bull run?

Sembcorp Industries share price

It has been a lost decade for CapitaLand share price as the real estate developer endured crisis after crisis ranging from the Great Financial Crisis to the European sovereign debt problem to the slew of property cooling measures unleashed by Singapore government. For sure, investors of CapitaLand had a roller coaster ride and suffered plenty of sleepless nights. But the sluggish CapitaLand share price looks set for a turbo-charged spin in the next six months. Read on to find out why CapitaLand could possibly stage a “return of the king” in the coming months.

Being one of the marquee assets of Temasek Holdings, CapitaLand is obviously one of the big boys in the real estate business. The company’s real estate and hospitality portfolio spans more than 120 cities in over 20 counties. In addition to this, CapitaLand also manages eight REITs and business trusts and twenty private funds. Given the diversified global portfolio (worth $129 billion), understanding this real estate giant is never easy but the biggest question among investors must be why CapitaLand share price had consistently been laggard for the past few years.

CapitaLand share price

If investors looked back, CapitaLand share price peaked at $7 to $8 back in 2007 but collapsed to the abysmal level of $2 during the Great Financial Crisis in 2009. Since then, CapitaLand share price never recovered to the peak and had been trading at the $3 to $4 bandwidth. Those who had bought at the peak in 2007 would have lost their pants even if the total dividends issued since 2007 ($1.20) had been factored in.

Despite the above, the current Price/Book Value is only 0.656, meaning that CapitaLand share price is trading at a level significantly below its book value. At current level, CapitaLand share price is certainly attractive in my point …

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 the bearish sentiments for this leading light of SGX.

Singtel share price lost form

Being one of the largest constituents of Straits Times Index (STI), Singtel share price had been pretty resilient despite the unfolding telco war. Current dividend yield is 5.6%. This means that Singtel share price is currently being traded at very attractive level.

Of course, whether the yield is sustainable hinges on the operating cash flow. To this end, 1QFY2019 result revealed that operating cash flow was $1.75 billion. If Singtel maintains its dividend policy of 17.5 cents per share for the financial year ending 31 March …

Mapletree Commercial Trust (MCT) share price on fire!

Lippo Malls 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 boys like Schroder Investment and NTUC Enterprise own stakes amounting to 10.2% and 2.35% respectively. With support from such stellar group of major shareholders, it is no wonder than MCT share price has been on fire.

Make no mistake, this article is not meant to bash MCT. On the contrary, I love this counter and had in fact written a positive article “Fairytale of Mapletree Commercial Trust” in 2018. With an asset portfolio of only 5 commercial properties in Singapore, MCT is the only local STI constituent without global footprint. In this regard, I thought Mapletree Logistics Trust …

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

Jardine C&C share

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 out another $780 million or so would not be a challenge for Mapletree Logistics Trust as it has a deep-pocket backer in Temasek Holdings.

For sure, an acquisition by Mapletree Logistics Trust would be a catalyst for unit price of Cache Logistics Trust, which had been battered by a series of unfortunate events for the last two years. Let’s examine this interesting S-REIT and see if it is worth to invest.

BullionStar

Cache Logistics Trust in bizarre narrative

During IPO in 2010, CWT Limited had granted right of first refusal to Cache Logistics Trust over the properties that it owned. However, …

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 important to ensure our skillsets remain relevant and that we have transferable skills that can be tapped on for future job opportunities. To make yourself more “employable”, you may consider reading up on the available retrenchment support programmes and industry insights in this Workforce Singapore portal.

Career Coach at WSG

The perennial complaint by those who suffered from retrenchments is the perceived lack of retrenchment support from the government. I used to think so too until the folks at Workforce Singapore reached out to me recently and shared with me their “Adapt and Grow” initiative. Most importantly, they shared …

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

SGX stocks

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, this S-REIT holds 137 properties with value at nearly $7.9 billion. Given the pedigree, where will MLT go from here? And is the bullish form of its unit price  and dividends even sustainable?

MLT billion dollar acquisition spree

Before investors get carried away, a look at the financial statement revealed that Mapletree Logistics Trust’s DPU may not be sustainable. But more on this later. Currently, this counter is basking in the limelight as investors are reaping the rewards from the mega acquisition spree made in FY18/19. This explains the explosive bull run in recent months.

BullionStar

In June 2018, Mapletree Logistics …

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 honest, Henry Chu’s pending departure (he will leave at end of the year) is unlikely to hit BreadTalk share price in the near future. This is because founder, George Quek, is taking over as the interim CEO. As a successful entrepreneur with a long history of track record in the F&B industry, I am 200% convinced that BreadTalk share price will recover in due time.

When NTUC Enterprise acquired Kopitiam in December 2018, it was a harbinger of things to come. Effectively, NTUC Foodfare became the largest food courts player with Kopitiam chain of outlets under its arm. With …

HPH Trust in bloodbath with Temasek Holdings

AEM share price

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 expect the collateral damage to be significant or fatal enough to sound the alarm bell. However, the same cannot be said for retail investors who did not practise sensible portfolio diversification.

Will HPH Trust sink or swim? Make no mistake, this business trust is 27.6% owned by “Asia Superman” – billionaire Li Ka Shing. When HPH Trust debut in SGX mainboard in 2011, the IPO price was between USD0.90 to USD1.10. But after the dream debut, unit price had a horror run of decline. Currently trading at USD0.16, shareholders must be having plenty of sleepless nights. Should existing investors run …

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 power of attorney (LPA) and how does it impact your financial journey? In this article, I will examine the merits of making an LPA. But I must caution that this article is not meant to be a legal advice. If in doubt, please consult financial advisors or seek legal advice. The content here is written to the best of my research. If there is any factual inaccuracies, please feel free to let me know.

Deadline for LPA application fee waiver

Basically, a lasting power of attorney is a legal document that [This is a premium article. The rest of the

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 the bearish sentiments for this leading telco.

The wheels finally came off the wagon for Singtel share price as the feel-good factor of Netlink Trust finally dissipated. Now, the telco is at a cross-road as it is fighting battles at two fronts – increasing competitions faced by its regional associates and perennially loss-making Digital Life Group. But in the midst of addressing these business issues, Singtel share price also suffered brutal decline resulting from short-selling activities and the impact from the economic downturn.

Singtel share price assaulted by big boys?

As one of the biggest Straits Times Index (STI) constituents, …

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 many people, the mere thought of removing urine for our fathers would have been grossly unpleasant. But for over three years, that’s what I did on a daily basis for my late father who suffered from the devastating stroke, followed by multi-system atrophy (MSA). Personally, it had been a humbling experience. I always told myself that Singapore certainly don’t owe me a living but I owe [This is a premium article. The rest of the content is blocked and can be accessible by SG Wealth Builder Members only. To read the full content, please sign up as member.]

SPH share price plunged to record 14-year low

Sembcorp Marine share price

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 …

Sheng Siong share price on a super bull run!

Sheng Siong share price

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 …

Yangzijiang share price to sink or swim?

Alibaba 9988

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 …

StarHub share price crashed into wall

StarHub share price

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 …

DBS Group share price thrashed by big boys

DBS Group Holdings share price

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 …

Accredited investors to rock the heaven

accredited investors

“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 …

OCBC share price lost its way

OCBC share price

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 …

Singtel share price 12% plunge left investors in tears

Singtel share price

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 …

KIT share price to suffer same fate as Hyflux?

Sembcorp Marine share price

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 …

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

Singtel share price

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

Sembcorp Marine share price to explode on potential merger?

Nanofilm share price

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 …

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

Medtecs share price

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 …

ST Engineering share price in explosive rally

AEM share price

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

BreadTalk share price lost steam

BreadTalk share price

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 …

Wilmar share price in lung bursting form

AEM share price

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

Suntec REIT in royal mess up!

SGX stocks

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 …

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

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 …