Gold price in fiery rally

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

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

Drivers for gold price rally

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

Long seen as a safe haven, gold is often regarded as the asset to hold in times of uncertainties. In fact, gold price went on a rampage bull form in the period of The Great Financial Crisis to reach a peak of USD1,900 per ounce in 2011. The euphoria in gold was driven by the chaos in the financial markets and this fuelled the charge in the gold price.

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

gold price

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

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SPH share price in disaster

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

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

SPH share price

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

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

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

SPH share price in train-wreck

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

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StarHub share price in last tango

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

StarHub share price to face $282 million baptism of fire

StarHub share price trashed to 14-year low

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

StarHub share price

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

StarHub share price in false dawn?

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

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DBS bank share price fighting dragons and tigers

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

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

DBS bank share price

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

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

Big boys punting DBS bank share price

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

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

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

Nightmare of Lippo Malls Indonesia Retail Trust

Lippo Malls Indonesia Retail Trust in dark chapter

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

Lippo Malls Indonesia Retail rust

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

Temasek Holdings walloped by Lippo Malls Indonesia Retail Trust

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

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

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Sembcorp Marine share price ripped apart by corruption probe

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

Sembcorp Marine share price see red

Sembcorp Marine to ride out the storm

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

Sembcorp Marine share price

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

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

Sembcorp Marine share price walloped

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

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

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Hyflux to sink or swim with SembCorp Industries?

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

Hyflux saga stinks to the high heaven

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

Hyflux

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

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

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

SembCorp Industries should dance with Hyflux?

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

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Singtel share price in dark chapter

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

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

Singtel share price

Singtel share price in turmoil

Singtel share in for terrifying ride

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

Singtel share price ready to collapse again?

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

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AIA Triple Critical Cover Insurance

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

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

AIA Triple Critical Cover

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

Review of AIA Triple Critical Cover

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

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The Largest Forex Trading Markets in the World

The foreign currency exchange market is a global financial phenomenon. Global forex trading sessions are split into three main geographic regions: the London session (European), the US session, and the Asian session.

Each of these centres has its own particularities and unique traits. Because of this reason, traders have the opportunity to adapt their strategies and trading approaches, depending on what trading session is open at the time they exchange currencies. Getting a better understanding of these trading sessions allows traders to anticipate which the volatility and stagnation periods will appear.

best forex CFD brokers

The main forex trading sessions

Traditionally, the largest forex trading markets of the world establish the trading sessions. This way, we and differentiate between the Asian session, the European session, and the US session. Because these sessions take place at different times of the day, they are dynamic and change a lot in those intervals. And so, traders can adapt their strategies, depending on the hours of the day.

  • The Asian Session, with the hot spot in Tokyo, is open between 00:00 and 09:00 GMT.
  • The European Session, with the trading capital in London is active between 08:00 and 17:00 GMT.
  • The American Session, with headquarters in New York, thrives between 13:00 and 22:00 GMT.

For more information on each market and sub-markets, keep reading below.

The UK Forex trading market

This market is still one of the most dynamic in the world. And, according to analysts and professional traders, but also to the Office of National Statistics, in 2017, there were more than 270,000 Forex traders in the UK. Here are concentrated the most European Forex traders. Second in Europe, comes Germany, with over 150,000 traders.

The same data shows that at least 1 in 10 British people has traded online at least once in …

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Capitamall Trust (CMT) share price in berserk form!

Can anything stop Capitamall Trust (CMT)? CMT share price is simply irresistible as it went on a rampage multi-years bull run. From IPO price of $0.96 to the current $2.60, CMT share price had defied gravity as it consistently rose through the years. Nevertheless, the supreme form of the unit price has somewhat dimmed the yield, which has fallen to 3.7%. Is it the right time to enter CMT?

CapitaLand Mall Trust in explosive form!

While the surging CMT share price is a happy news for existing unitholders, new investors who are keen to invest in Capitamall Trust must be put off at the increasing unit price. In my view, at Price/Book Value of 1.26, I do not think that this counter is overvalued at the moment. In fact, based on my research, Capitamall Trust is considered a low risk counter based on several factors. In this article, I will share my insights on why Capitamall Trust should be a good investment despite the low yield.

CMT share price

CMT share price

The top three major shareholders are Temasek Holdings (29%), BlackRock (8%) and NTUC Enterprise Co-operative (2.5%). With such a stellar group of institutional investors, investing in CapitaLand Mall Trust seems like absolute no-brainer. Interestingly, NTUC used to be a substantial shareholder with 5% stake. However, since September 2018, NTUC had quietly pared down its stake in CapitaLand Mall Trust to the current 2.5%. Despite so, CMT share price had remained resilient and continued to be bullish.

Being the first REIT to be listed by CapitaLand in July 2002, Capitamall Trust went on to  become the largest retail REIT by market capitalisation, $8.8 billion (as at 31 March 2019) in Singapore. In the blink of an eye, seventeen years had passed. Through the years, CMT share price had increased steadily. To put …

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Q&M Dental share price is ripe for rights issue?

From $0.42 to $0.94, Q&M Dental share price enjoyed a breath-taking form back in early 2015. That magical run earned Q&M Dental the second best performing stock by SGX in 2015. Those good old days must be surreal to investors as Q&M Dental share price subsequently went on an awful run that saw the counter falling by 46% in value. Sentimental investors who did not exit in time would have lost their pants if they held on to Q&M Dental shares till now.

In investing, there are many variables or factors that can influence the share price of a company. Even though Q&M Dental operates in an evergreen field of healthcare, it does not mean that Q&M Dental share price will be stable or keep rising. Investors must be aware of the state of play and enter at appropriate levels or they may risk getting caught with their pants down.

Q&M Dental share price

Is Q&M Dental share price in the mode of falling knife? To be fair to management, Q&M Dental had been consistently profitable since its listing in 2009. In fact, net profits surged from $3.8 million in FY2009 to a record $33 million in FY2016. However, net profit dropped to $23 million in FY2017 and then tanked to $13 million in FY2018. Based on this data, the fall in Q&M Dental share price in recent years should be attributed to its poor financial performance.

As crazy as it sounds but should management issue rights now to spur the next stage of growth and re-ignite the explosive form of Q&M Dental share price? Read on to find out my thesis of Q&M Dental.

Game over for Q&M Dental share price?

It could be a mistake to dismiss Q&M Dental share price. The company’s competitive strength lies in its ownership of …

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UOB share price fought back after bizarre plunge

In the month of May, all three local bank stocks suffered carnage. UOB share price suffered the worst, with correction of 16% while OCBC share price retreated 13% and DBS share price fell 15%. For OCBC and DBS, the correction was understandable because data revealed that both banks were starting to feel the chilling effect of 2018’s housing cooling measures. However, the correction for UOB share price was considered strange because financial data revealed that the bank had not been affected so far.

Demolition of UOB share price left investors scratching heads

In fact, building and construction loans increased from $54.9 billion in March 2018 to $67.1 billion in March 2019. Housing loans increased from $66.5 billion to $68.7 billion in the same corresponding period. Singapore market still formed the lion share of its loan portfolio (51%) while China constituted only 15.9% of its loans. Based on these data, it is not right to attribute the sharp fall in UOB share price to either the property cooling measure or the on-going US-China trade dispute.

UOB share price

Needless to say, the big boys were the culprits behind the meltdown of UOB share price. This counter topped the most net sell list among fund institutions in May 2019, with $110 million worth of UOB shares being net sold. Apparently, big boys had been punting UOB to plunge because of its massive exposure to the property sector. But it seemed that UOB Chairman Emeritus, Wee Cho Yaw, had the last laugh.

UOB share price rose from the dead

As one of the major STI components, UOB share price is volatile because big boys like to punt this counter. Thus, it is not prudent for investors to adopt a buy and hold strategy. A better approach should be hit-and-run.

The most intriguing part was not the …

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DBS share price mauled by violent forces

What a brutal decline! DBS share price suffered a devastating 15% decline in the month of May. For sure, investors would love to see the back of May as DBS share price had one of the most terrible forms. Nonetheless, it should be highlighted that DBS share price is not alone in the carnage. Fellow competitors, OCBC and UOB suffered the same fate as well.

Apparently, the big boys decided to show hand after the release of a stellar Q1FY2019. On the surface, this is considered puzzling because DBS had actually produced a good financial performance. In view of this, it is only logically that DBS share price continued to climb. It is not unreasonable to assume that the solid results would fuel the bullish form of the DBS share price, which surged from $24 in January 2019 to $28.40 in end of April 2019. However, as the saying goes, Man proposes, God disposes.

DBS Group Holdings share price ready to hit $50?

DBS share price

Needless to say, the big boys were the ones extinguishing the fiery form of DBS share price. What is the intriguing reason(s) behind the sell-offs? Should investors hang on for their dear lives or throw in the towel?

DBS shares price in nuclear meltdown

As the leading light of SGX, big boys like to punt this counter. Thus, it is not prudent for investors to adopt a buy and hold strategy. A better approach should be hit-and-run. In life, don’t be too greedy.

Based on the below data compiled from SGX, DBS share price got stung by the big boys in the month of October which saw a high of 4 million DBS shares being shorted in the last week of that month. The heavy shelling caused DBS share price to fall from $26 to $23. The …

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The Hour Glass stormed back in style!

What a fightback! It has been a long while since I last covered luxury watch retailer, The Hour Glass. And boy, this counter recently rose from the tomb to stage a magnificent recovery after posting a stunning full-year financial result. Is this really the light at end of tunnel for The Hour Glass?

Can The Hour Glass roll back the time?

The Hour Glass Limited

Back in 2017, co-founder cum Chairman Henry Tay had warned of a severe winter ahead for The Hour Glass because of oversupply issue and a slow-down in the Hong Kong market. On the basis of the latest financial results, it appears to me that the management may have successfully turned. Revenue increased 5% to $727 million but net profits exploded by 41% to reach a whopping $71 million. To achieve this feat, the management had exercised cost discipline and pushed up top-line. No wonder The Hour Glass share price surged from $0.65 in March to the recent $0.80 mark.

Hour Glass

Indeed, investors of The Hour Glass must have that bitter-sweet feeling. Chairman Henry Tay’s warning proved to be proverbial as revenue had previously slowed from $707 million in FY2016 to reach $691 million in FY2018. Profit after tax dropped from $53 million to $50 million in the corresponding period. So the latest full-year financial result must have brought plenty of smile for long-time investors.

In this article, I will share my views on the key financial metrics of The Hour Glass, such as its increasing free cash flow, the gross margin and net asset value. Through these factors, I will explain why The Hour Glass share price is considered slightly undervalued.

The Hour Glass the forgotten stock

The Hour Glass started out as husband-and-wife luxury watch boutique shop in 1979 and had grown to become a …

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Singtel dividends as passive income stream?

On 15 May 2019, Singtel announced a set of disappointing full year FY2019 results that saw  the telco recording sixth consecutive quarter of declining profits. However, the market did not react adversely. Instead, Singtel share price had been creeping upward in recent weeks. No prize for guessing but investors must be biting the bait of Singtel dividends and buy into this counter.

Can Singtel dividends really be your ticket to financial freedom? With an operating history of 140 years, Singtel dividends track record is certainly impressive. But in this blog, I have always advocated readers not to judge a stock solely by its dividend yield. Thus, in this article, I will examine not just the quality of Singtel dividends, but its overall business fundamentals and growth outlook.

Singtel share in turmoil

Singtel share in for terrifying ride

Singtel dividends

Obviously, investors must have heaved a sigh of relief as Singtel share price recovered 14% from a low of $2.88 in the start of the year. However, it had not been a smooth ride as the recovery was tempered with several pull-backs. The recent announcement of Singtel dividends of 10.7 cents per share must have led to the bullish form as investors are finding Singtel shares attractive again. And rightly so. After all, many older folks out there are holding Singtel shares and depend on Singtel dividends for passive income.

Singtel share is one of biggest SGX-listed companies that had withstood the test of time because of its massive investment moats and fantastic free cash flow. Notwithstanding this, it does not mean that investors should buy this stock indiscriminately. For those who bought Singtel shares at a high of $4.00 in 2017, they would be sitting at paper losses even if the Singtel dividends distributed were factored in.

Whilst there is nothing wrong …

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Biggest regrets in life

It is often said that regret is the most terrible thing that can happen to anyone. When we talk about regrets, images of unfulfilled dreams and results of inactions may flash across your mind. Indeed, people tend to have the most clarity of mind in their dying moments. After all, there is a saying that goes “a healthy person can have many wishes but a sick person will have only one wish”. In one of the most poignant moment, a former nurse (Bronnie Ware) revealed in her blog the biggest regrets of the dying.

Bronnie spent several years caring for the dying and her job was to counsel terminally ill patients in their final moments. Her article on the biggest regrets of the dying is considered to be thought provocative and holds profound impacts for many. We can gain valuable insights from those are near the end of their life journey and make meaningful changes to our lives before it’s too late. In this article, I will share my thoughts on the top 3 biggest regrets of the dying.

  1. I wish I had the courage to live a life true to myself, not the life others expected of me.

Apparently, this is the most common regret of all regrets. I suppose [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.]

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SingPost share price stunned by bombshell revelation

Good grief! SingPost share price is expected to encounter plenty of headwinds following the release of a set of disastrous full-year financial results on 7 May 2019. Net profit collapsed by a whopping 86% to reach $18.9 million. In the previous quarter, the management had dropped hints of massive impairment for the latest quarter but nobody would have predicted that the impairment amounted to $98.7 million.  No wonder all hell broke loose for SingPost share price.

SingPost share price set to roil big time again?

Horror show of SingPost shares

In the aftermath of the revelation, SingPost share price slumped from $1.05 to the current $0.93. What riled investors is the impairment charges of the U.S businesses – TradeGlobal and Jagged Peak. The last time that SingPost recorded significant impairments was in FY2017 which saw SingPost suffered impairment charges of a massive $208.6 million for TradeGlobal. The huge impairment charges walloped SingPost share price upside down back then. The U.S businesses turned out to be black holes for SingPost, wrecking havocs to its business fundamentals and subsequently led to overhaul of the management and dividend policy.

SingPost share price

If investors are intending to buy on the dip, they must be mindful that SingPost share price could be in for a harsh winter for the rest of the year. This is because in the latest financial report, the management revealed that SingPost is exiting the U.S business and that “the Group expects to continue to account for operating losses on the U.S. businesses until it completes its exit”. But on the flip side, the planned disposal of the U.S businesses would finally put on end to the tragic chapter of its overseas e-commerce misadventure.

Is the latest news a silver lining in the making or just another false dawn for SingPost share price, …

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Hyflux saga stinks to the high heaven

In the end, PUB did take over the Tuaspring desalination plant. In theory, that would be the final nail in the coffin for the ongoing Hyflux saga. But like a broken record that refused to go away, the unfolding Hyflux saga took on a life of its own with United Arab Emirates utility company Utico emerging as potential white knight. And yet again, Hyflux debt moratorium got extended for a few months.

Hyflux in dark final chapter

Hyflux saga is so bad its good

Does Hyflux deserve a comeback like OSIM?

SembCorp Industries should invest in Hyflux

The holy water of Hyflux Perpetual Securities

To be frank, I am not sure whether the prolonged Hyflux saga is a good thing for investors. It is not the first time that white knight had emerged and vowed to bring investors to the promised land. Indonesia’s SM Investments appeared out of nowhere to dangle a $530 million rescue mission in late last year. But more than a year later, the whole Hyflux saga remains in a shambolic mess and getting nowhere near the end of the tunnel. There were plenty of interest parties and talks of cash injections. But none of them were legal binding yet. Perhaps the botched deal of SM Investments had deterred interested parties from making a firm commitment.

Hyflux saga

Looking back, it must have been a nightmarish ride for Hyflux investors as many of them lost their pants investing in the perpetual bonds and preference shares. Many of them are retirees or accredited investors looking for high yield products to grow their wealth. So you can imagine their pains as they saw their life savings being vaporised with the implosion of the Hyflux bankruptcy protection. Indeed, the Hyflux saga has become such a national disgrace that it stinks to the …

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OCBC share price faces lightning and thunder

Apparently, the management of OCBC Bank decided to press the panic button. On 10 May 2019, OCBC announced a set of pretty decent Q1FY2019 results that saw net profits rising 11% to $1.23 billion. Despite the rosy report card, dark clouds loom head for OCBC share price as chilling effect of the property cooling measures is starting to take effect. To rub salt to injury, the issue of the ailing oil and gas sector has returned to haunt OCBC share price yet again. Against this backdrop, management had decided to launch a rescue mission for OCBC share price.

To be fair to the management, OCBC had achieved a breakthrough in the latest quarter as net interest margin has increased to 1.76%, up from 1.67% in Q1FY18. Return on equity (ROE) for 1Q19 has also improved to 12.0%, as compared to 11.8% in 1Q18. In view of such impressive performance, OCBC share price should be bullish. Yet since the release of the latest financial results, OCBC share price had slumped from $11.40 to the current $10.95.

OCBC share price torpedoed by Great Eastern

OCBC share price at the threshold of an era

OCBC share price

In my view, the recent correction of OCBC share price is not unique to the bank alone. Both 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 mauled market sentiments but business fundamentals had not been disrupted, at least not …

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Genting Singapore share price hit by hurricane

Investors should brace for a wild ride as Genting Singapore share price looks set to come under severe pressure due to a series of unforeseen events. In early April 2019, the government of Singapore announced higher casino tax by 2022 and 50% increase in casino entry levies for Singaporeans and PRs effective 4 April 2019. Prior to this, Genting Singapore share price also come under heavy shelling due to sell-offs by major fund houses.

The impact of the tax hike cannot be underestimated. In late 2018, the Malaysia government implemented similar tax hike, causing Genting Berhad share price to tumble to a ten-year low. Although the Singapore casino tax hike will be implemented in three year time, the move will cast a dark shadow on Genting Singapore’s growth outlook and affect confidence in Genting Singapore share price. And confidence means everything in the stock market.

Genting Singapore share

As the saying goes, it never rains but pours. This is certainly the case for Genting Singapore as it shot itself in the foot by announcing a disappointing Q1FY2019 that saw revenue dropping 5% to $640 million and net profit declining 5% to $205 million. Against this backdrop, Genting Singapore share price went on bombshell meltdown, correcting from $1.07 in April to the current $0.88 level.

Genting Singapore share price stormed by casino raiders

Civil war at cash-rich Genting Group

Is this a good time to enter this counter and buy Genting Singapore share? It really depends who you choose to believe. On one hand, stock analysts like DBS Bank had been mightily bullish and set a target price of $1.20 for Genting Singapore share price. On the other hand, big boys had been selling off this counter since February. Should investors throw in the towel or hang on for their dear lives?

Genting Singapore

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SIA share price in moment of madness

It seems like SIA share price is destined for an apocalyptic correction. On 16 May 2019, Singapore Airlines reported a record annual revenue of $16.3 billion for FY2018/19. However, net profit collapsed 47.5% to $683 million. Since the announcement of the results, SIA share price went into an epic free-fall to reach the current low of $9.25.

On the basis of the current bearish run, it appears to me that SIA share price is likely to be bearish in the coming weeks. In my opinion, the correction of SIA share price could be an opportunity for long-term investors to accumulate this counter. The 5-year beta for SIA share price is only 0.43. This means that while in the short-term, SIA share price can be pretty volatile, in the long run, this counter is actually quite stable. The average 3-month volume is 23 million and Temasek Holdings shareholdings in SIA amounted to 54.9%. Based on this data, SIA should be a good stock to hold for the long-term.

SIA share price

The correction in SIA share price is attributed to the plunge in net profit. However, it is important to put things into context. SIA had an exceptionally good FY2017/18 because oil prices were trading at the range USD45 – 60 per barrel and total fuel costs amounted to $3.9 billion. Because of that, SIA was able to achieve a net profit of $1.345 billion for that year. Fast forward a year later, oil price has surged, thereby wrecking havocs to the bottom-line.

Notwithstanding the dismal net profit for FY2018/19, there is a silver lining from the latest financial performance. In my view, I do think that the coming months should see SIA share price facing plenty of headwinds. Then again, fortune favours the brave. Investors who set the right entry and exit price …

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Selling combs to monks

Whether you are an employee or entrepreneur, you must always strive to master the art of selling. As an employee, you are always selling your skill-sets to your employer and prospective customers. For a business owner, to be able to sell is a given. In this regard, I cannot emphasize enough how important it is to master the art of selling because it is considered the single most important factor that determines whether you can succeed in life.

In 2017, I wrote an article, “you can sell combs to monks”. Readers can subscribe as members to access the full article but I would like to succinctly use that article to expand on several learning points on how to be a successful wealth builder. In this blog, it is my desire to help people become successful in their wealth journey because it gives me joy to know that people have learned from my articles.

selling combs

In the story of selling combs to monks, three candidates were selected by a Singaporean merchant to sell combs to monks in China. We all know that monks do not need combs as they are bald, so selling combs to monks is like asking the candidates to do the impossible. Nevertheless, one of the candidates incredibly managed to sell 10,000 combs to a monk and eventually clinched the coveted job. The reason for his amazing success can be distilled in several points.

Sell what people want, not what they need

There is phrase that you must always remember in life: sell what people want, not what they need. What does it actually mean? I am sure most readers can differentiate between needs and wants. But from a marketing perspective, the difference may not be so straightforward.

In most cases, providing what people want will …

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Best World unleashed terror with stunning revelation

What a revelation! On 13 May 2019, after a probe by SGX RegCo, Best World finally revealed that Koh Kim Chuan, the legal representative and shareholder of Changsha Best, is the brother-in-law of the Group’s CEO and Managing Director.  Currently, Best World shares are suspended from trading and hapless investors are once again left high and dry.

In recent years, corporate governance issues had dogged numerous SGX-listed companies like Yuzoo, Noble Group, Midas and the likes. Even blue chips like Keppel Corporation are also not spared (Keppel was fined a whopping $560 million by US authorities in 2018 over corruption scandal). Against this backdrop, I am not surprised if Best World turns out to be yet another falling knife. It seems to be disaster after disaster for SGX-listed companies, to the extent that it is turning out to be a national disgrace. How can Singapore Exchange claim to be “Asian Gateway” when its listed companies keep making headline news for all the wrong reasons?

Best World

The meltdown of Best World followed swiftly after the resignation of its non-executive independent director, Chan Soo Sen, on 15 February 2019. To be factual, Best World share price started to spiral out of control on the day of Chan Soo Sen’s resignation announcement.

Best World and Chan Soo Sen

Chan Soo Sen was a former influential politician in Singapore. At one time, he was even a Singapore Minister of State for Trade and Industry. Chan Soo Sen was also non-executive independent director and member of audit committee with Midas since 2006. Incidentally, Chan Soo Sen held the same position as he did in Best World – non-executive independent director and member of audit committee. He joined Best World only in 2016. For the record, Midas was an S-chip company that was razed to the ground …

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Raffles Medical share price in state of emergency

Sometimes life is stranger than fiction. On paper, Raffles Medical share price should have risen steadily for the past 5 years because of increasing revenue and net profits. For most investors, that would be a reasonable assumption. In reality, Raffles Medical share price plummeted from $1.58 to the current $1.00 level. The massive correction of Raffles Medical share price represented a horrifying 37% decline within the span of three years. The unfolding meltdown of Raffles Medical share price must have scared the living daylight out of investors.

Can Raffles Medical share price ever rock again?

Perennial Real Estate Holdings versus Raffles Medical

My stock analysis of Raffles Medical Group

Sure, many analysts claim that the healthcare is an evergreen sector because of Singapore ageing population and that investors should stay calm. On this note, I do not disagree. In fact, revenue for Raffles Medical increased from $374million in FY2014 to $489million in FY2018. Net profits increased from $67million to $71million during this period. But against the backdrop of such consistently good financial performances, what were the intriguing dark forces behind the rupture of Raffles Medical share price?

Raffles Medical share price

Make no mistake, the devastating plunge of Raffles Medical share price would have wiped out whatever meagre dividends that investors collected for the past few years (assuming they had entered at the high of $1.58). Given the current Raffles Medical share price level, let’s examine whether the time is ripe to enter or avoid this counter.

Raffles Medical share price decline

First off, Standard Life Aberdeen stunned the market by selling 1.12 million shares on 26 February 2019. In the process, Standard Life Aberdeen ceased to be a substantial shareholder of Raffles Medical. That was a killer blow as Raffles Medical share price got bombed out, dropping from $1.10 and never looked back …

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Changing my CPF nomination

A couple of weeks ago, I changed my CPF nomination after an annual review with my spouse. Previously, I did not include my children in my CPF nomination. In doing so, we thought that this could be a risk in the event that both my spouse and I passed on at the same time. Thus, we made our way to the CPF office to change my CPF nomination. As usual, the process took only 5 minutes and the officer was very competent in answering our queries.

So in my case, what is the difference between nominating and not nominating CPF monies to include our children? Are there any benefits in doing so? Previously, I have nominated my spouse to receive 100% of my CPF monies should I passed on. That is a pretty straight-forward situation. But in the scenario of us passing on at the same time, how would my young kids receive the monies? Even if they do manage to take out the CPF monies, being kids, they will definitely lack the financial judgement to handle the monies. With these in mind, we thought it is important to amend my CPF nomination to ensure that our children will not face financial difficulties in the event of our deaths.

CPF nomination

The reason why I am sharing this article is because I hope Singaporeans can understand the implications of not making CPF nomination. There are many myths and misconceptions of CPF monies out there and I have read many sad cases of Singaporeans being left in the lurch after the sole-breadwinners died without making any CPF nomination. Then there were court cases involving family fights over CPF monies. Very often, family harmony is destroyed due to ambiguity over money legacy.

In this article, I will pen down my thoughts on the rationale …

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CapitaLand share price and the golden job

Like many of its peers, CapitaLand share price is volatile because of the cyclical nature of the real estate business. Arising from this, the 5-year beta for this counter is 1.11. In spite of this, I like this counter very much because of its unique business strategies and diversified asset portfolio. Under the founding CEO, Liew Mun Leong, CapitaLand had embarked on a “asset recycling” approach, resulting in the real estate giant deriving majority of its revenue from recurring sources like commercial, retail and serviced residence.

Indeed, CapitaLand investors may think that volatility is undesirable but I view it otherwise. You can make money out of the volatility  of CapitaLand share price, provided if you used the right strategies. Looking at the past four year data, there is a clear pattern concerning the movement of CapitaLand share price.

CapitaLand share price

Hit and run with CapitaLand share price

In October 2014, CapitaLand share price surged from $3.00 to reach a high of $3.75 in April 2015.Subsequently, the counter plunged to a low of $2.80 in September 2015. Following that, CapitaLand share price surge again to reach a high of $3.40 in December 2015. For most of 2016, the stock languished to a low of $3.00 in December 2016. And then following that, CapitaLand staged a might rebound to reach a high of $3.70 in March 2017.

The pattern for CapitaLand share price continued in 2018 and early 2019. Based on the data, it appears to me that the best time to enter CapitaLand is during the period September to October. This is the window whereby CapitaLand share price often starts to bottom and then likely to rally until the start of the next calendar year. The perennial bullish form during this window period may be attributed to the attraction of the annual …

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SPH share price prime for another devastating ride

The data certainly looks grim for SPH share price. 1HFY2019 results revealed that despite aggressive efforts to revive its fortune, SPH revenue and net profits continued to free fall like no tomorrow. This is indeed puzzling because the dismal financial performance came on the back of various recent acquisitions aimed at stimulating growth.

Figtree Grove (85% stake) Shopping Centre in Australia was acquired in December 2018 for A$175million. Then M1 was delisted following the successful acquisition of all the remaining shares from the open market through SPH joint venture with Keppel, Konnectivity. UK Student accommodation portfolio added 380 beds with 2 new acquisitions for $369million. Yet despite all these moves, revenue continued to slide, rupturing the form of SPH share price in the process.

SPH share price

It is really mind-blowing to note that total revenue for 1HFY2019 decreased 5.2% while net profit collapsed 32% to reach $33million. With such result, it takes an ardent fan to be convinced of SPH long-term growth prospect. The disruption of the traditional newsprint business is well-known and everybody knows that SPH had embarked on a transformational journey to digitize its businesses and diversify revenue sources through property investments. But it has been more than 5 years in the work, yet total revenue plunged from $1.2billion in FY2014 to $982million in FY2018. No wonder SPH share price spiralled out of control – falling from a high of $4.00 in 2016 to the current $2.40 level.

At this rate, full-year revenue could shrink to $930million for FY2019. Dividends are likely to continue to decline as well. Against this backdrop, SPH share price should come under pressure again in the coming months. Should SPH investors bite the bullet or throw in the towel?

SPH share price in disaster

The problem for SPH share price is that it is …

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StarHub share price to face $282million baptism of fire

It’s that “uh-oh” feeling for investors as StarHub share price faces another torrid run following the release of a terrible 1QFY2019 results that saw net profit plummeted by 23% on a year-by-year basis. Investors must be having that sinking feeling again and wondering when will StarHub share price ever see daylight again.

The problem for StarHub share price is that it tends to shoot itself in the foot. In February 2019, StarHub share price corrected from $1.94 to $1.610 following the release of a dismal FY2018 results and the cut in dividends for FY2019. Since then, StarHub share price had struggled to maintain its form. With the latest results, surely the counter will go into yet another tailspin.

StarHub share price

Given the latest financial performance, it takes an ardent fan of StarHub to have conviction in StarHub share price. Revenue for mobile, Pay TV and Broadband segments all declined. Cyber security services recorded an impressive 41.4% in revenue but suffered a whopping $11.4million losses in 1QFY2019. Sales from equipment was the only bright spot as revenue surged by 33.3% but the profit margin from this segment is razor thin, thus it cannot be the game-changer for StarHub.

Apart from the disappointing results, investors must be wondering if StarHub would fall into the abyss like Hyflux. This is because like Hyflux, StarHub had raised capital through a $200million subordinated perpetual bonds back in 2017. That exercise was meant to raise fund for the coming $282million 700 MHz spectrum which StarHub won in 2017. Let’s examine whether StarHub investors should run for their lives or buy on the dip.

StarHub share price and perpetual bonds

In my view, it is unlikely that StarHub share price will suffer a similar fate like Hyflux. With Temasek Holdings’ 56% stake in StarHub, I don’t expect the telco …

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Is NetLink NBN Trust a value trap?

Investors must be wondering if NetLink NBN Trust would do an Asian Pay TV Trust (APTT) or Hutchison Port Holdings (HPH) Trust. Both the unit prices of APTT and HPH suffered catastrophic meltdowns in recent years due to declining business fundamentals. Incidentally, Temasek Holdings is a major shareholder in all the three trusts.

Even though both APTT and HPH Trust are favoured by investors for their high yields, the plunge in their unit prices would have offset the returns. Thus, the important lesson for NetLink NBN Trust investors is never judge a trust by its yield. Always make the effort to understand the business fundamentals when investing in equities. While big boys like Temasek Holdings can afford to lose monies in their investments, retail investors surely don’t have such deep pockets.

NetLink NBN Trust

There are analysts who claimed that NetLink NBN Trust is a low risk counter. But the funny thing is, NetLink NBN Trust never made it to the top ten institutional net buy list for the past one year. This means that for some unknown reasons, fund houses had been giving this trust the cold shoulder. Obviously it is still early days to judge NetLink NBN Trust but let’s take a look at its investment moat and examine the underlying risks.

NetLink NBN Trust competitive advantage

NetLink NBN Trust designs, builds, owns and operates fibre network infrastructure of the Next Gen NBN. The company’ strategic advantage lies in its monopoly in the fibre network in the residential market. As of 31 December 2018, NetLink NBN Trust supports approximately 1.3 million residential end-user connections. The residential connections provide the basis for the strong cashflow because of the recurring fee business model.

The revenue sources primarily come from the one-off installation for each termination point (upon the initial connection) or service activation; …

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