Singtel share price (SGX: Z74) in perfect storm

NDP Special Offer! In my last article on Singtel share price, I wrote that this counter has bottomed out. Yet, following that article, Singtel share price plunged 8.5%, falling from $2.58 to a low of $2.36 on 30 November. Apparently, Omicron variant has emerged out of nowhere to cause the train-wreck of Singtel share price.

Singtel’s sprawling telco businesses are prone to the impact of the pandemic as a significant portion of the Group’s revenue is derived from roaming revenue from tourists. Hence, a protracted pandemic crisis could possibly shake confidence in Singtel share price. Nevertheless, as we entered December, Singtel share price stabilized to $2.40 level as the market digested emerging data on Omicron variant, which is deemed to be highly contagious but less likely to cause severe illnesses among patients.

Singtel share price

For the past two years, I reckon many Singtel investors did not have a good sleep as COVID-19 has caused plenty of uncertainties for Singtel share price. But that’s not all. On 17 December, another bombshell awaited investors. The Group announced that its subsidiary, Singapore Telecom Australia Investments Pty Ltd (“STAI”), has received an unfavorable judgment from the Federal Court of Australia over the acquisition financing of Singtel Optus Pty Limited in 2001.

The net tax exposure and related interest and penalties amount to A$304 million. Although the case relates to an incident that happened 20 years ago, it was actually reflected in the recent annual financial statements. In fact, I have always stressed that one of the key risks for Singtel share price is the contingent liabilities arising from the telco’s overseas acquisitions.

Given that Optus has evolved to become Singtel’s crown jewel over the decades, I am sure the telco will settle the tax penalty swiftly to avoid further negative publicity. Furthermore, the amount payable …

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DBS share price (SGX: D05) on the way to $50?

NDP Special Offer! What a roller-coaster ride for investors! This year’s November was one of the most terrifying months in recent years for DBS Bank as it endured market’s reaction to a subpar 9MFY2021 financial result and suffered one of the worst service disruptions in the past decade. Adding the emergence of Omicron variant, we have the perfect storm for DBS share price. But as we approach 2022, DBS share price is poised for an explosive bull run that could see the counter smashing the pivotal $50 mark.

DBS share price

Year-to-date, DBS share price surged 28%. In fact, the majestic run of DBS share price saw the counter hitting a record high of $32.60 on 8 November. However, the wheels came off the wagon after the bank reported a disappointing 9MFY2021 financial result that saw net income interest falling 9% year-on-year. The following Monday (8 November), DBS share price turned bearish.

Suffice to say, the much-publicised outage of DBS online services further dented investors’ confidence on DBS share price. And then Omicron variant arrived to cause DBS share price to plunge to a low of $30 on 30 November. Looking at the data extracted from SGX, it is evident that the massive correction of DBS share price was largely due to short-selling activities. Analysing the short selling activities could provide vital clue on the projection of DBS share price in the coming months.

DateShort sale volumeShort sale value
26 November468900$14.8 million
29 November1.5 million$45 million
30 November1.2 million$37 million
1 December877900$27 million
2 December769400$24 million
3 December873078$27 million
16 December964600$31 million
17 December1.33 million$43 million
20 December1.75 million$56 million
21 December621629$20 million
22 December748700$24 million

Source: SGX

Looking …

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Jardine C&C share price to storm back in 2022?

NDP Special Offer! And then, there are left with four of them. With the delisting of Jardine Strategic from SGX in April 2021, the four affiliated members of the Jardine Matheson group remains in Straits Times Index (STI) – HongKong Land, Dairy Farm, Jardine Matheson Holdings and Jardine C&C. These four “Hong Kong Heavenly Kings” had dominated STI for years and are all part of the Jardine Matheson Group. Recently, a Lifetime Member has requested me to do a research on Jardine C&C share price, which I will gladly do so in this article.

Previously, I had written an article on HongKong Land. For many Singaporeans, Cycle and Carriage needs no introduction. The company is the authorized dealer for automotive brands like Mercedes-Benz, Mitsubishi, Kia and etc. Their business includes automotive distribution, retail and aftermarket services, spanning across Singapore, Malaysia, Myanmar. Cycle and Carriage is one of the Direct Motor businesses under Jardine C&C portfolio. However, in analysing Jardine C&C share price, it is important to note the other key businesses of the Group. Take note that Direct Motor contributed to just 30% of Jardine C&C’s underlying profits in 2020.

Jardine C&C share

Although Jardine C&C is listed in SGX and has presence in Singapore through its automotive business, analysing Jardine C&C share price is not so straightforward. This is because the Group has a sprawling and diversified businesses in Southeast Asia. In this regard, it will not make sense for investors to analyse the stock based solely on its automotive business in Singapore as the bulk of its earnings are derived from its businesses in eight sectors and six countries in Southeast Asia.

For the uninitiated, Jardine C&C has a 50.1% interest in Astra, a diversified group in Indonesia, which is also the largest independent automotive group in Southeast Asia. …

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Three important money advices

NDP Special Offer! Season greetings to all readers of SG Wealth Builder! In the blink of an eye, we are heading toward the third year of the pandemic. It’s incredible how time flies! In this article, I will share my insights on three important money advices. The story is written from the perspective of Christianity but I have adapted the story to reframe it from the angle of wealth building. Note that I am not a Christian and this is definitely not an article meant to spread Christianity. Instead, I believe that readers can benefit very much from this sharing in the course of their financial journey.

In life, we will always receive money advice from well-meaning friends and relatives. Yet, very often, it is only those simple money advices that really withstand the test of time. As a matter of fact, the three money advices contained in this article served me rather well in my financial journey. Thus, I am sharing this article with readers.

money advices

The long journey

Once upon a time, there was a poor young man named David who just got married. The couple lived in a small farm. David wanted a better life for his wife and decided to venture out to find a better job. Before he left, he said to his wife,

“Dear, I will go and find a job that pays well so that both of us can have a better life. I am not sure how long I will be away but all I ask of you is to stay faithful and wait for my return.” The wife promised to do so.

And so, he left. David walked for many days until he met a farmer in need of help. The young man offered his services and was immediately given a job. …

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Vicom share price lost steam!

NDP Special Offer! Being the largest vehicle inspection and testing provider in Singapore, Vicom needs no introduction. In 2019, Vicom share price had been in a splendid form, surging from $6 in January 2019 to cap a high of $7.70 at end of 2019. In June 2020, the completion of the 1-to-4 stock split saw the counter trading at about $8.50 (in terms of pre-stock split level) at end of 2020.

In 2021, Vicom share price continued its fine form till May 2021. Since then, the counter fell to the current $2.05 bandwidth (which is about $8.20 in terms of pre-stock split level). The sudden loss of form of Vicom share price caught some investors by surprise. Is this the end of the road for Vicom share price? A long-time SG Wealth Builder Lifetime Member is concerned about the loss of form for Vicom share price and requested my insight.

Vicom share price

Vicom’s vehicle inspection and testing services are essential services. Thus, this business segment should be immune to the impact of the pandemic. Amid the pandemic, the Group even increased its market share in the vehicle testing business from 74% in 2019 to 75.2% in 2020. In view of this, investors must be wondering what could be the underlying causes for the mystery slump of Vicom share price in 2021.

In my opinion, the problem with this counter is that most investors tend to overlook its other core business – the non-vehicle testing business. This is probably because Vicom’s vehicle testing is a public facing business while its non-vehicle insection business, Setsco Services Pte Ltd (SETSCO), provides services to the Construction, Marine and Process sectors. As Vicom provides services to the oil and gas industry, there was a strong correlation between the crude oil prices and Vicom share price.

Looking …

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OCBC share price to rocket with Great Eastern Holdings exit?

NDP Special Offer! Will it be 3rd time lucky for OCBC Bank? The venerable bank tried to privatise Great Eastern Holdings (GEH) unsuccessfully in 2004 and 2006. In the 2006 attempt, OCBC Bank managed to raised its stake in Great Eastern to 87.1%. Since then, OCBC Bank has steadily increased its stake to 87.91% as at 31 March 2021. If a privatisation does materialise, what would be the impact on OCBC share price (SGX: O39)?

Under SGX Rule 723 of the Listing Manual, listed companies must ensure that at least 10% of their issued shares must be held by the public. As OCBC currently holds about 12% of Great Eastern, the bank would just need to acquire only 2% more of Great Eastern shares in order to trigger the mandatory delisting requirement. The impetus for the acquisition should be the ailing OCBC share price.

OCBC share price

Year-to-date, OCBC share price has increased by a mere 12.9%. In contrast, DBS share price has surged by a whopping 26.7% year-to-date. Notably, the explosive surge in DBS share price came after its acquisition of 13% stake in Shenzhen Rural Commercial Bank in April 2021 and India’s Lakshmi Vilas Bank in November 2020. The acquisitions signalled the growth initiatives of DBS and helped to diversify revenue sources. Hence, it is not surprising that DBS share price had been on fantastic form throughout the year. Over at OCBC, the lack of major acquisitions for the past two years coincided with the tepid form of OCBC share price.

OCBC share price (SGX: )39) went AWOL

OCBC share price (SGX: )39) to rocket to Mars!

OCBC share price in Ring of Fire

To be fair to OCBC, CEO Helen Wong has just taken over the CEO position in April this year. So it would not be realistic …

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SIA share price (SGX: C6L) so bad its good!

NDP Special Offer! What a roller coaster ride for SIA investors! From a high of $5.55 on 15 October, SIA share price languished to $5.00 following the torpedo from Omicron variant. Due to the countless twists and turns of the pandemic saga, analyzing the outlook of SIA share price is always a tricky business. Prior to the arrival of Omicron, SIA share price was in bullish form due to the launch of a slew of Vaccinated Travel Lanes (VTLs) with countries in US and Europe. And then Omicron emerged out of nowhere to wretch the form of SIA share price. Should investors run for their lives?

SIA share price

When news of Omicron broke, SIA share price took a hit as the market initially did not have a sense of how deadly or contagious this variant is. The fear then was that Omicron could lead to another wave of crippling lockdowns and borders’ restrictions among countries. The knee jerk reactions could be forgiven due to the lack of data. But recent release by health authorities suggested that this variant may not be as deadly as the Delta variant. In addition to that, Pfizer has claimed that three shots of its vaccines could neutralize Omicron variant based on laboratory tests.

SIA share price in explosive form

SIA share price (SGX: C6L) faces ambush from another cash call?

SIA share price rises from ashes

For SIA investors, the carnage of SIA share price must be déjà vu. During the peak of the Delta outbreak, the counter also collapsed, falling from $5.70 in early April to a low of $4.50 in May. So the recent correction of SIA should not be surprising. Obviously, short-selling activities played a major part in the collapse of SIA share price. From data extracted from SGX website, below is the data …

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UOB share price (SGX: U11) in power tailwind

NDP Special Offer! As the saying goes, a rising tide lifts many boats. The much-anticipated interest rate hikes in 2022 are expected to set fire on local bank stocks, including UOB share price. Despite the buoyant outlook, UOB share price has not reached the record level of $30 last seen in May 2018. This is unlike its peer, DBS share price, which has raced past the $30 mark in July 2021. If UOB share price had matched the form of DBS share price, UOB would have become Singapore’s second largest bank (in terms of market capitalization).

The last time that I covered UOB share price was on 15 May 2020. That was one of the darkest chapters for UOB share price as the global stock markets were reeling from the onset of the pandemic. In Singapore, there were plenty of uncertainties due to the implementation of Circuit Breaker measures. Subsequently, UOB share price staged a U-shaped recovery as the unprecedented three Budget stimulus packages worked their magic.

UOB share priceThe announcement of COVID-19 vaccine in late 2020 had sparked off a rally for UOB share price. Investors were given hope that the vaccine will spell the end of the terrible pandemic. As we entered 2021, we have not seen the light at end of tunnel due to the emergence of variants, the latest being Omicron. Throughout 2020, UOB share price had been affected by impacts inflicted by Delta variant. But of noteworthy is that UOB share price has increased 17.20% year-to-date.

The impending interest rate hike is expected to turbocharge UOB share price in FY2022. To put things into perspective, the narrative for the past two years for local banks is all about containing non-performing loans and impairments. Due to the gravity of the crisis, headline growth for UOB has been below …

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Gold price: Singapore government bought bullion!

On 30 November 2021, The Straits Times reported that Singapore government bought gold bullion to add to the national reserves for the first time in 20 years. According to data extracted from Monetary Authority of Singapore’s (MAS) International Reserves and Foreign Currency Liquidity reports, the value of gold reserves held Singapore in April 2021 amounted to US$211.7 million and (4.096 million troy ounces). But by June 2021, the amount of gold reserves surged to a staggering US$1.8 billion. Interestingly, the Singapore government bought bullion when gold price has bottomed.

Given that this is the first increase in gold reserve for the first time in decades, it is evident that Singapore government is not a big fan of bullion. Nonetheless, I would say the purchases were shrewd as they were bought after gold price bottomed out in April 2021. Unlike retail investors, central governments bought bullion as a means to diversify reserves. For Singapore government, this is no exception.

Source: BullionStar

Our official reserve assets amounted to US$385 billion in April 2021. However, the reserve soared to US$416 billion as of September 2021. The foreign currency reserves amounted to US$407 billion as of September 2021. As the foreign currency is in US dollar, it makes sense to me that Singapore government bought bullion to diversify the risk against the depreciation of US dollar.

Due to the devastating economy harm caused by COVID-19 pandemic, the US Federal Reserves had resorted to quantitative easing since March 2020 in a bid to prevent its economy from collapsing. This approach is similar to the one it had undertaken during the Global Financial Crisis (GFC) in 2009. Broadly speaking, this means that the US government is increasing money supply, thereby debasing its fiat currency. A decade ago, the quantitative easing had caused the value …

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AEM share price (SGX: AWX) in fairytale with Temasek Holdings

NDP Special Offer! Will AEM share price become the next fairytale of SGX? Following the release of the 3rd quarter business update, AEM share price (SGX: AWX) has been in rocket form in recent weeks. The bullish form of AEM share price sent the counter to a record high of $5.22 on 30 November. Based on the current run of AEM share price, there is a good chance that the stock could knock iFAST off the perch to become the best performing SGX stock of the year.

Despite the positive business outlook, AEM share price has been rocked by the recent market turmoil caused by the Omicron variant. Amid the market chaos, AEM filed an SGX disclosure that Temasek Holdings purchased 443,700 shares from the market on 25 November. Although the shares were bought before the Omicron variant news, it provided much stabilizing support for AEM share price.

AEM share price

My vision for AEM share price is that it would become a $10 stock in SGX Mainboard. Having a conviction is important in stock investing as it can provide a calming effect when the share price movements are not in your favor. Obviously, the current AEM share price is still some way off my target level but my conviction is not based on blind faith.

First off, the bullish form of AEM share price had fended off short-selling attacks. According to data pulled from Monetary Authority of Singapore (MAS) Short Position Reporting System (SPRS), open short positions against AEM share price fell to a low of 1.77 million as of 19 November 2021. Prior to this, the open short positions amounted to a staggering 8.4 million as of 8 October 2021.

The presence of short-sellers can exacerbate the downtrend of stock movements. As in the case of the recent …

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DBS Group Holdings share price (SGX: D05) in crisis

NDP Special Offer! Troubles come in troops for DBS Group Holdings share price. Looking back, the counter smashed a record high of $32.60 on 5 November following a splendid bull run. It certainly seemed that the sky was the limit for DBS Group Holdings share price. But unexpectedly, the wheels came off the wagon for DBS Group Holdings after the bank reported a subpar 9MFY2021 financial result that saw net income interest falling 9% year-on-year. The following Monday (8 November), DBS Group Holdings share price turned bearish.

Shortly after the release of the latest financial result, the bank suffered one of its worst service disruptions in the past decade, prompting Monetary Authority of Singapore (MAS) to mull taking regulatory actions against the bank in the coming days. The outage led to temporary crisis of confidence on DBS Group Holdings share price.

DBS Group Holdings share price

Just when investors thought that the worst was over for DBS Group Holdings share price, another nightmare unfolded. On 26 November, investors woke up to stunning revelation of a new COVID-19 variant that may be more contagious than the Delta variant. What spooked investors is that the variant could render current vaccines ineffective given its significant mutations. Due to the uncertainties, Straits Times Index (STI) suffered a carnage, and DBS Group Holdings share price was not spared from the market sell-offs.

From my assessment, I do not foresee the new variant to have a major impact on DBS’ core banking business. According to CEO Piyush Gupta, the loan exposure in FY2020 for aviation, oil and gas and SME sectors amounted to $6 billion, $23 billion and $39 billion. The major bulk of its loan portfolio is still concentrated in housing and building and construction. Hence, even if the authorities tighten the public health measures in the coming days, they …

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ISDN share price to rocket to $1.90?

NDP Special Offer! Will ISDN share price do an AEM? Since January 2020, ISDN share price has rocketed more than 300% to reach the current $0.75. The meteoric rise of ISDN share price has led investors to compare the counter to fellow SGX peer, AEM. Apart from this, what is the possibility of Temasek Holdings taking a stake in ISDN?

In life, never say never. Temasek Holdings investments in AEM and CSE Global showed that the sovereign wealth fund is open in taking majority stakes in promising home-grown companies listed in SGX mainboard. Like AEM and CSE Global, ISDN is an engineering company that provides technological solutions to its customers. In this article, I will examine the possibility of Temasek Holdings taking a stake in ISDN and the potential impacts on ISDN share price.

ISDN share price

The principal activities of ISDN are mainly on motion control, industrial computing, other specialised engineering solutions and construction of hydropower plants. The Group is listed on SGX Mainboard since 24 November 2005 and achieved a dual primary listing on the Hong Kong Stock Exchange on 12 January 2017.

In Singapore ISDN share price is largely under the radar of institutional investors. For the past one year, this counter did not feature in any of the monthly top ten institutional net buy or sell lists. Nonetheless, this is not a dead stock as average 3-month volume is 116 million. This suggests that the surging form of ISDN share price in recent months could be attributed to strong retail buying interests.

If we turn back the clock, we can actually see that ISDN share price rocketed from $0.11 in November 2012 to an incredibly high of $1.42 in June 2013. That was an amazing 12-fold increase within the span of just seven months! Back then, those who had …

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AEM share price (SGX: AWX) to hit $20 with new patent?

NDP Special Offer! For the past one week, AEM share price (SGX: AWX) has been in outrageous form. Apparently, the 3rd quarter business update had ignited the rally of AEM share price (SGX: AWX). At the point of writing, this counter is still in red hot form and showing no sign of cooling down. What truly confounded many investors was the fact that net profit for 9MFY2021 had plummeted 33.4% to $53 million. The rise of AEM share price (SGX: AWX) defied all sense of logic as poorer financial result usually leads to lower share price. Against this backdrop, what could be the triggering factor that led to the raging form of AEM share price (SGX: AWX)?

In my view, the sudden burst of form of AEM share price (SGX: AWX) may not be attributed to a potential Nasdaq listing nor the positive outlook for its chip testing business. Although these are important catalysts for AEM share (SGX: AWX), I honestly doubt that they played a part in the recent meteoric rise of 21% in AEM share price (SGX: AWX) in the past one month.

AEM share price AWX

Based on my hypothesis, I think the recent superb form of AEM share price (SGX: AWX) should be due to the application for the patent crucial for its next generation System Level Test platform (patent no: 20210325452). The Group filed the application for the patent on 16 September 2020. The patent may pave the way for the volume ramp up with its key customer, Intel. The patent award also coincided with the explosive form of AEM share price (SGX: AWX). Talk about being at the right time and right place!

AEM share price (SGX: AWX) to rocket to $8.30?

AEM share price rockets with Temasek Holdings!

AEM share price recovering from bloodbath

AEM

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Singtel share price (SGX: Z74) in Christmas mood!

NDP Special Offer! Christmas comes early for Singtel share price (SGX: Z74)! The counter is in buoyant form following the release of a set of stellar first half financial result that saw net profit more than doubled to $954 million. In my last article, I had suggested that winter may be over for Singtel share price (SGX: Z74). On the basis of the latest financial result, it seems that the telco has managed to turnaround.

Singtel share price (SGX: Z74) was also given a boost as the management made a couple of shares buybacks in the past few days. 620,989 shares were bought back on 12 November while 620,500 shares were bought back on 15 November. It is unknown if the shares repurchase will continue in the coming days. Year-to-date, Singtel share price (SGX: Z74) has climbed about 10%.

Singtel share price Z74

Looking at the results, there are several factors that led to the revival of Singtel’s businesses, namely the resumption in regional economic activities and Airtel’s turnaround. If the telco continues to perform like this for the next two quarters, Singtel share price (SGX: Z74) should be able to breakthrough $3.00 – the level at which Singtel share price (SGX: Z74) used to be traded during pre-pandemic period.

Despite the good showing, the Group announced interim dividend of merely 4.5 cents per share. This is even lower than the interim dividend of 5.1 cents per share given out in last year. Assuming the final dividend pay-out is also 4.5 cents per share and based on current Singtel share price (SGX: Z74) of $2.58, the annualized yield is just 3.5%.  Given the volatility of Singtel share price (SGX: Z74), the dividends are not exactly appealing to investors.

The lower dividend pay outs will weigh on Singtel share price (SGX: Z74) and this …

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AEM share price (SGX: AWX) to rocket to $8.30?

LIFETIME MEMBERSHIP Hurry! The train is leaving! What a swashbuckling return in form for AEM share price (SGX: AWX). Following the release of the 3rd quarter business update on 10 November, the counter surged 4.5% the next trading day. As of 12 November, AEM share price (SGX: AWX) rocketed 9% to hit a record high of $4.78. Can anything stop AEM share price (SGX: AWX)?

Although net profit for 9MFY2021 plummeted 33.4% to $53 million, the latest business update revealed a glowing outlook for AEM share (SGX: AWX).

AEM share price AWX

In the business update, the management raised the full-year revenue guidance to between $525 million and $550 million. For AEM to meet this revenue guidance, the Group needs to achieve about $200 million in the 4th quarter. The management has a strong track record of meeting its revenue guidance, so I am confident that AEM is able to meet this target. However, the key sentence in the business update that could turbocharge AEM share price (SGX: AWX) is “the Group expects the ramp to continue through 4Q2021 and into FY2022”.

Based on the above statement, AEM should be raking in about $200 million of revenue in each quarter of FY2022 due to the volume ramp of their test platforms to key customer, Intel. Assuming net profit margin of 16%, the full-year net profit for FY2022 could be $128 million. This will translate to earning per share of $0.42. Attaching a PE ratio of 20, the forward AEM share price (SGX: AWX) could be $8.30.

Given that AEM share price (SGX: AWX) is being traded at $4.38 at the point of writing, it would take a leap of faith for this counter to reach $8.30. Then again, AEM share price (SGX: AWX) does not follow the script. The counter is …

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Here’s why Raffles Medical share price (SGX: BSL) plunged 12%

LIFETIME MEMBERSHIP My last coverage on Raffles Medical share price (SGX: BSL) was in June 2020. Back then, the counter was recovering from the initial impact of the pandemic. Nonetheless, Raffles Medical share price (SGX: BSL) remained sluggish for most of 2020 until news of vaccines broke out in November 2020. Since then, global roll-out of vaccine programmes and easing of border restrictions led to Raffles Medical share price (SGX: BSL) rocketing to a near-record high of $1.55 in October 2021.

Unexpectedly, the bullish form Raffles Medical share price (SGX: BSL) was brought to a screeching halt when the shares plunged 12% to reach a low of $1.35 on 3 November 2021. To be honest, the volatility of Raffles Medical share price (SGX: BSL) is rather rare and it prompted a Lifetime Member of SG Wealth Builder to seek an insight from me.

Raffles Medical share price BSL

There are analysts who claimed that the recent correction of Raffles Medical share price (SGX: BSL) is due to the revised on-arrival COVID PCR test requirements for travellers arriving in or transiting through Singapore (from 7 Oct 2021 onwards, travellers from CAT II, III & IV countries do not need to do on-arrival PCR tests). For perspective, Raffles Medical conducted over 600,000 COVID-9 tests and screened more than six million travellers in 2020. So the latest changes on arrival test requirements for travellers could have a big impact on Raffles Medical share price (SGX: BSL) in the short-term.

Whilst the revised test regime for travellers may impact Raffles Medical’s revenue, I think a greater impact could come from the transition from Rostered Routine Testing (RRT) to Employer Supervised Self Swab (ESSS) as required by various government agencies.

Workers in Changi Airport, local airlines, construction, marine shipyard, process sectors and those workers living in dormitories are subjected …

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OCBC share price (SGX: O39) went AWOL

LIFETIME MEMBERSHIP It seems that OCBC share price (SGX: O39) have lost its way. On 3 November 2021, the local bank released a set of financial result that saw 3rd quarter’s net profit rose by an impressive 19% year-on-year to reach $1.22 billion. Nine months’ net profit rose by a staggering 58% to $3.88 billion. With such a solid performance, most investors would have popped the champagne. Yet OCBC share price (SGX: O39) confounded investors by retreating 0.75% on that fateful day.

To be honest, the tepid performance of OCBC share price (SGX: O39) is truly bizarre. Like many investors, I had expected plenty of fireworks for OCBC share price (SGX: O39) following the release of the excellent 3rd quarter business update. I do think that it is reasonable to expect OCBC share price (SGX: O39) when you see such good result. But then again, Man proposes, God disposes. OCBC share price (SGX: O39) went missing in action instead.

OCBC share price O39

The trend of OCBC share price (SGX: O39) is eerily similar to that of Wilmar, another Straits Times Index heavyweight. In October 2020, Wilmar share price suffered an explosive meltdown following the hugely successful listing of Yihai Kerry Arawana Holdings Co., Ltd (YKA). Then in February 2021, Wilmar share price lost form unexpectedly following the release of a set of great financial result.

Like OCBC, Wilmar management also went on the offensive to defend Wilmar share price and bought back a whopping 50.4 million Wilmar shares. As for OCBC, the management bought back 21.48 million of OCBC shares so far. CEO Helen Wong was forced into the titanic rescue mission of OCBC share price (SGX: O39) as the shares of the local bank had been the subject of brutal attacks by the financial big boys. For the month …

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Mapletree Logistics Trust share price (SGX: M44U) in rock and roll

NDP Special Offer! Will the latest financial result set fire on Mapletree Logistics Trust share price (SGX: M44U)? The counter has been in buoyant mood in recent days following the release of a set of stellar financial result that saw 1st half gross revenue increasing 24.4% year-on-year to $328 million while net property income surged 21.4% to hit $289 million. Amount distributable to unitholders increased 19.2% to $186 million.

It has not been a bed of roses for Mapletree Logistics Trust share price (SGX: M44U) in 2021. The counter crashed from $2.00 in January to a low of $1.78 in March. To be frank, I could not explain the root cause for the correction of Mapletree Logistics Trust share price (SGX: M44U). So far, there were no equity financing nor were there any adverse news affecting Mapletree Logistics Trust share price (SGX: M44U). Hence, the tepid performance of Mapletree Logistics Trust share price (SGX: M44U) had been puzzling.

Mapletree Logistics Trust share price M44U

Year-to-date, Mapletree Logistics Trust share price (SGX: M44U) increased by a mere 1.5% only. This is despite the S-REIT continuing to deliver good financial results for the past few quarters. Looking back, one of the plausible reasons for the lethargic trend of Mapletree Logistics Trust share price (SGX: M44U) could be due to the lack of interest from institutional fund houses.

A check with SGX website showed that the only period in which institutional fund houses entered this counter was in May 2021 – the counter was in the top ten institutional net buy list with $34.6 million being net bought. That buying spree sent Mapletree Logistics Trust share price (SGX: M44U) to a high of $2.15. Subsequently, the dearth of buying by the big boys led to Mapletree Logistics Trust share price (SGX: M44U) falling to a low of …

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Selling combs to monk

NDP Special Offer!  The story of selling combs to monk is an age-old story that never fails to inspire me to become a better version of wealth builder. Most people regard it as a motivational story for salesmen to achieve sales target. But I see it as otherwise because the learning points can also be applied in investing, career development and entrepreneurship.

I have adapted the story for the sake of my followers. But before proceeding, readers must note that this article is not meant to mock any religion nor aim to make fun of any professionals. My objective is to inspire readers to learn how to be better wealth builders. In today’s context, this is important because hard work alone would get you nowhere in this competitive society.

sell

Once upon a time, a merchant who owned a comb factory in Singapore wanted to penetrate the huge China. Thus, he advertised for a position of Regional Sales Manager in the newspaper. Understandably, many applicants applied for the job. Therefore, during the interview sessions, he asked the applicants on how they would sell combs to monks. Many of the candidates were stumped by his question because we all know monks do not need combs. Some of them also felt that he was mocking at them.

Eventually, three applicants impressed the merchant during the interviews with their attitude and they were dispatched to China to test out their strategies. After three months, all of them reported back to him with surprising results.

Candidate 1 told the merchant that he managed to sell a comb to a monk. Out of curiosity, the merchant asked how he did it. To this, he lamented “Every day and night, I traveled to all the temples in China and tried to sell the combs to the monks. …

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SGX stocks on ice and fire with energy crisis

NDP Special Offer! As the saying goes, one man’s poison is another man’s meat. While the energy crisis in China threatens to derail the country’s economic growth, it has inadvertently led to an increased in demand for oil. As a matter of fact, crude oil price is currently trading at a 3-year high of US$81.33 per barrel. Against this backdrop, what is the implication for SGX stocks?

For SGX stocks in the oil and gas sector, the current oil price boom is like a cup of hot chocolate amid the fierce winter. The last time that oil price was so buoyant was in October 2014. That was seven years ago. Since then, the emergence of US shale oil and supply glut from Organization of Petroleum Producing Countries (OPEC) caused oil price to plunge by a devastating 70%. The lowest point for crude oil price had to be April 2020. That was the peak of the pandemic which saw demand for oil vaporized due to the global lockdowns.

SGX stocks

Looking back, the meltdown of crude oil price and the fallout from the pandemic had been a turning point for many SGX stocks in the oil and gas sector. Big boys like Keppel Corp and Sembcorp Marine had signed a non-binding MOU in June 2021 to merge their oil-rig building businesses. The former has also announced plans to exit the oil-rig building business altogether. On the other hand, there are SGX stocks who sank into the abyss. An example would be oil exploration company, KrisEnergy, which submitted wind-up petition in June 2021.

The oil industry is highly cyclical. This means that we should be at the early stage of an oil boom. This is especially so given that major economies are just starting to reopen their borders in a frantic bid …

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SIA share price (SGX: C6L) in explosive form

LIFETIME MEMBERSHIP Christmas comes early for investors as SIA share price (SGX: C6L) went on a rampage following news of the launch of the eight Vaccinated Travel Lanes (VTLs) with countries in US and Europe. Surely, it is a case of being at the right time and right place for SIA share price (SGX: C6L). The year-end festive season is traditionally SIA’s best quarter as travel demands typically increase with the December school holidays. So is it really the proverbial “U-shape” recovery or yet another false dawn for SIA share (SGX: C6L)?

Expectation of a long-awaited recovery for SIA share price (SGX: C6L) has reached an almost hysterical level for many investors. After all, we are talking about Singapore Airlines, the pride of our nation.

SIA share price C6L

For SIA investors, it must have been a bitter sweet feeling. The rights issues and the two tranches of Mandatory Convertible Bonds (MCBs) had diluted the share’s value to the $3.50 bandwidth in 2020. That was really the darkest chapter for SIA share price (SGX: C6L) as air travel was decimated by the devastating pandemic with no ends in sight. Subsequently, the revelation of a 90% effective vaccine (Pfizer) sent SIA share price (SGX: C6L) soaring by 21% in November 2020.

Yet even with vaccines being rolled out globally at an aggressive pace in 2021, variants emerged to cause multiple waves of infections in many countries. As a result, border restrictions remain firmly in place across many countries. This threw a spanner in the works for SIA share price (SGX: C6L), which peaked in April 2021 at a high of $5.70. The peak of SIA share price (SGX: C6L) also coincided with the period when the highly infectious Delta ravaged India and then various countries.

SIA share price (SGX: C6L) faces ambush from another cash

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OCBC share price (SGX: O39) to rocket to Mars!

LIFETIME MEMBERSHIP Crisis? What crisis? Being the oldest bank in Singapore, OCBC has seen the ebbs and flows of Singapore financial landscape, overcoming crises after crises for nearly 100 years. The unfolding pandemic crisis is no exception. Yet as we enter the endemic phase, uncertainties engulfed OCBC share price (SGX: O39) over concerns of potential exposure over the China’s Evergrande Group.

OCBC owns two banks in China – Wing Hang Bank and a 20% stake in Bank of Ningbo. Thus, it is not unreasonable for investors to be worried over the potential fallout from the embattled Evergrande Group. To make matters worse, the bank had not made any official clarifications that it does not carry any bad debts from Evergrande, probably due to the banking secrecy law. Arising from the uncertainties, OCBC share price (SGX: O39) turned bearish from August to September 2021.

OCBC share price O39

Nonetheless, the lethargic form of OCBC share price (SGX: O39) did not last long as Monetary Authority Singapore (MAS) confirmed that Singapore banks have “insignificant” exposure to Evergrande. Following this revelation, OCBC share price (SGX: O39) surged 3.5% from 5 October to reach $11.90 on 14 October. On the basis of the current form, it seems that OCBC share price (SGX: O39) will recover lost ground and could smash past $14 by year end.

With the removal of Evergrande uncertainties, the next event that could shake things up for OCBC share price (SGX: O39) should be the upcoming third quarter financial report. Based on relentless daily shares buybacks carried out by OCBC management for the past two months, I expect the coming quarterly report to be good. Otherwise, the management would have a hard time justifying the aggressive shares buybacks conducted in recent months. As of 13 October, the bank has bought back a staggering 21 million …

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Medtecs share price (SGX: 546) in bloody crash

LIFETIME MEMBERSHIP What a devastating train-wreck for Medtecs share price (SGX: 546)! After reaching an incredible record high of $1.80 on 21 August 2020, Medtecs share price (SGX: 546) collapsed 78% to reach the current low of $0.40. What the hell has happened to this healthcare product provider?

The meteoric rise of Medtecs share price (SGX: 546) on the back of an unprecedented health crisis created one of the amazing fairy-tales in Singapore stock market. Prior to COVID-19, Medtecs share price (SGX: 546) was trading at merely $0.08 (similar to current Sembcorp Marine share price). With the onset of COVID-19, Medtecs share price (SGX: 546) turbocharged to high heavens. Those who exited at the highest price would have laughed their way to the bank. On the other hand, those who entered at the highest would have lost their pants when the stock crashed.

Medtecs share price

Buying into a hype always carry risks but I have to be honest with readers of SG Wealth Builder. When Medtecs share price (SGX: 546) was surging in 2020, I was actually contemplating to adopt a “hit-and-run” strategy for this counter. Ultimately, after much consideration, I chose to invest in AEM instead. The reason for writing this article is because a long-time Lifetime Member of SG Wealth Builder has requested an insight on the fall of Medtecs share price (SGX: 546).

Whilst it is expected that interest in Medtecs share price (SGX: 546) would cool with the improving COVID-19 situation, it is unclear to me the trigger for the swift collapse in August 2020. Back then, the pandemic was still raging globally with no vaccine being developed. Demand for Medtecs’ products, mainly personal protective equipment (PPEs) skyrocketed as hospitals and public institutions stockpiled PPEs to fight COVID-19. Against that backdrop, it certainly seemed that the sky was …

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Singtel share price (SGX: Z74) to rocket to the moon!

LIFETIME MEMBERSHIP It seems that winter may be over for Singtel share price (SGX: Z74). The counter has been on a bullish form in recent weeks following the announcement of its A$1.9 billion divestment of Australia Tower Network (ATN), a wholly-owned subsidiary which operates Optus’ passive telecommunications tower infrastructure. To put the icing on the cake, Singtel is also creating a regional data centre to capture digital growth. Has Singtel share price (SGX: Z74) reached a turnaround?

Singtel share price Z74

Singtel share price (SGX: Z74) has been on such a trashy form for the past two years that many investors have been left wondering will there be light at end of tunnel for this counter. Nevertheless, the revelation of three new pivots by CEO Yuen Kuan Moon on 27 May 2021 provided much hope for investors. The latest deals affirmed the management’s resolve to execute the CEO’s vision for Singtel growth.

In my previous article, it was highlighted that Singtel’ strategy is to focus on 5G network business, transforming NCS into a B2B powerhouse in Asia and divesting the telco infrastructure assets. Indeed, for the ATN divestment, the management shared that the proceeds will be used to fund “the rollout of 5G and other growth initiatives, including expanding the B2B digital services business in Singapore and Australia through NCS”. In my view, the latest move demonstrated management’s discipline in executing its strategic growth plan and this should bode well for Singtel share price (SGX: Z74) in the coming months.

In the short-term, the catalyst that will really propel Singtel share price (SGX: Z74) should be the divestment or listing of the telco infrastructure assets. Optus’ divestment of its tower assets was expected to close before the end of the year. According to the management, Telkomsel, Airtel and Globe had also completed similar transactions …

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SG Wealth Builder Special Offer

NDP Special Offer! Since 2010, I have been blogging about money and stocks in SG Wealth Builder. My spouse often asked why am I doing this through the years. After all, I am not compensated for the sharing and my blogging had led to a lot of sacrifice of my family time. Indeed, if I am doing this merely for fame or money, this blog would not have sustained till now. I am talking about 11 years of blogging, not 11 months.

Many bloggers would tell you that building a blog from scratches requires a tremendous amount of effort and time. Sometimes, after years of blogging, there is no guarantee that a blogger can find success in the readership. Along the way, I have seen so many promising bloggers giving up and turned to commenting in other investment forums instead.

The sole reason for the sustainability of SG Wealth Builder is passion. I love doing stock research and sharing my ideas with others. And I love writing because I always thought that to be able to inspire or create a change in others is a form of calling.

At certain stages in my life, I did consider giving up blogging because of my family and career commitments. Sometimes after a long day at work, the energy just wasn’t there to blog. But as I look back at the journey, the thought of deserting my followers was too unbearable. Through the comments, emails and feedback, there were many memories to be cherished.

I still remember the time when a reader dropped me a message to request for an article regarding accredited investor in SG Wealth Builder. She was attending an investment talk that was selling funds meant for accredited investors. That was when I realized how much value this blog …

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Sembcorp Marine share price (SGX: S51) in $500 million mystery

LIFETIME MEMBERSHIP It turns out that the mandatory offer by Temasek Holdings is a “non-event” for Sembcorp Marine share price (SGX: S51). Following the controversial $1.5 billion rights issue, Temasek Holdings’ stake in Sembcorp Marine increased to 46.6%. Consequently, this triggered the mandatory general offer in accordance with Rule 14 of the Singapore Code on Takeovers and Mergers. True to its words, the offer price from Temasek Holdings remains at $0.08 per share. Given that the current Sembcorp Marine share price (SGX: S51) is higher than the offer price, the chance of privatisation is extremely remote.

Sembcorp Marine share price S51

There has been so many twists and turns for Sembcorp Marine share price (SGX: S51) that investors must feel like the past two years had been a terrifying nightmare. Question now is when will this nightmare end? Will there ever be light at end of tunnel for Sembcorp Marine share price (SGX: S51)?

The next baptism of fire for Sembcorp Marine share price (SGX: S51) should be the upcoming proposed merger with Keppel Offshore and Marine (KOM). As part of the deal, Sembcorp Marine and KOM will combine to form a new listed entity. The newly listed stock would provide an opportunity to “reset” the ailing Sembcorp Marine share price (SGX: S51). Nonetheless, a lot would depend on the valuation by the investment bank working on the merger. And then there is no guarantee that the merger will even take place as the MoU is not binding.

Sembcorp Marine share price (SGX: S51) thrown under the bus

Sembcorp Marine share price plunging to $0.05?

Sembcorp Marine share price faces takeover offer

At the centre of the controversy must be the $500 million that Keppel Corp stands to receive if the deal goes through. And what could be the impact on Sembcorp Marine share price …

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SGX share price (SGX: S68) in biggest crisis

LIFETIME MEMBERSHIP Can CEO Loh Boon Chye make Singapore Exchange great again? Since the onset of the pandemic, SGX share price (SGX: S68) rocketed from a low of $8.20 in July 2020 to a mighty high of $12.05 on 4 August 2021. The bubble finally burst for SGX share price (SGX: S68) when the bourse announced a full-year financial result that saw net profit dropping 6% on year-on-year basis. While the drop is not alarming, the market reacted – SGX share price (SGX: S68) crashed by a staggering 18% by the end of August from the high of $12.05.

SGX share price S68

To put things into perspective, SGX share price (SGX: S68) thrives on crisis. In fact, the previous record high of SGX share price (SGX: S68) was $15.90 recorded in October 2007. That was the period of the Great Financial Crisis. Back in 2007, the average daily trading value was $1.6 billion and there were 46 new equity listings. Fast forward 14 years later, the average daily trading value shrunk to $1.4 billion while there were only 10 equity listings.

Yet the most worrisome thing about SGX share price (SGX: S68) is not really the short-term volatility. Rather, it is the devastating long-term decline of SGX that gives investors the jitters. Being a financial hub, it is a given that Singapore has a vibrant stock exchange to stay competitive in the region. Yet the dearth of IPOs and the horrifying valuations of listed companies in Singapore led to a slew of delisting in SGX in recent years.

Although SGX’s decline has been on-going for a long time, the decline was notably significant since 2015, which coincided with the departure of the previous CEO Magnus Bocker. When CEO Loh Boon Chye took over the helm, SGX was already struggling to deal with the …

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AEM share price (SGX: AWX) to rocket with Nasdaq IPO!

LIFETIME MEMBERSHIP When former Minister of Trade and Industry Chan Chun Sing visited AEM last year, it was a harbinger of things to come for AEM share price (SGX: AWX). With Temasek Holdings now officially onboard as the biggest shareholder of AEM, the narrative for AEM share price (SGX: AWX) has changed. For a Singaporean company to make it internationally, we need a Singapore Inc approach. After all, AEM is a home-grown company. The next step forward should be a Nasdaq IPO to enhance AEM’s visibility.

AEM share price AWX

The entry of Temasek Holdings, coupled with the presence of institutional investors like Morgan Stanley, Aberdeen Standard Investment (Asia) and Malaysia Employees Provident Fund, also means that the stars are finally aligned for AEM to IPO in Nasdaq. If so, AEM could be the first homegrown company to be dual-listed in SGX and Nasdaq in recent years, thereby turbocharging AEM share price (SGX: AWX) to high heavens. Non-executive Chairman Loke Wai San, who had rescued AEM from collapse in 2012, should know that the support from Temasek Holdings will be helpful in the IPO journey.

Temasek’s investment comes at a time when Temasek, MAS, EDB and SGX recently announced initiatives to help high growth technology companies raise funds through dual-listing in overseas exchanges and SPACs. Ironically, the move to assist homegrown tech companies came after a number of Singaporean companies like Grab and Razer chose to list in overseas markets. Against this backdrop, my view is that a dual-listing for AEM should be imminent within the next six months, providing plenty of fireworks for AEM share price (SGX: AWX).

AEM share price rockets with Temasek Holdings!

AEM share price recovering from bloodbath

AEM share price dented my portfolio

Speculative rumours of a potential Nasdaq IPO had been ongoing for two years. The market rumours …

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SIA share price (SGX: C6L) faces ambush from another cash call?

LIFETIME MEMBERSHIP Will SIA share price (SGX: C6L) do a Sembcorp Marine? The latter recently concluded a second billion dollars rights issue that took place less than a year, causing the share price to bomb out to less than $0.10. On 16 September 2021, SIA updated “that the remaining S$0.6 billion of the gross proceeds of S$8.8 billion raised from the 2020 Rights Issue has been applied towards aircraft and aircraft-related payments between 1 July 2021 and 1 September 2021”. Against this backdrop, investors must be wondering if another cash call is on the way.

In one year, SIA burnt through $9.3 billion of cash (including $500 million which had been used for the redemption of SIA’s 10-year Fixed Rate Notes on 9 July 2020). While there is more than sufficient cash for the airline to sustain till the end of this financial year, what will be the situation for the next financial year, which will begin in March 2022? Will there be another round of rights issue that rupture the form of SIA share price (SGX: C6L)?

SIA share price C6L

SIA share price rises from ashes

SIA share price in explosive destiny

SIA share price smashed into rock

The hallmark of Singapore Inc is its ability to plan ahead. This is no different for SIA. Given that the new financial year is less than six months away, it is timely to ponder the prospect of another round of capital call by the management in 2022. You certainly don’t want to wait until the company faces a potential liquidity crunch then you start to initiate a rights issue. That would be a perfect recipe for disaster for SIA share price (SGX: C6L). In fact, this was what happened to Sembcorp Marine.

Looking back, it was really a “touch and go” situation for SIA …

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