SIA share price rises from the ashes

LIFETIME MEMBERSHIP Will SIA share price see daylight soon? Confidence in air travel has taken severe knocks following multiple waves of COVID-19 infections in various countries, not to mention the devastating second wave in India. Yet against this backdrop, USA and European countries are seeing drastic drops in COVID-19 infections and deaths due to aggressive vaccination programmes.

SIA share price

In March 2021, I wrote that SIA share price could be in for an explosive destiny following the release of full-year financial result FY20/21. Back then, I had predicted that the full-year losses to be around $3.5 billion but it turned out that the actual losses amounted to $4.2 billion. Prior to the result release, SIA share price suffered some correction, falling from $5.70 in April to the current $4.80.

SIA share price in explosive destiny

SIA share price smashed into rock

SIA share price in darkest chapter

SIA share price faces brutal meltdown

As expected, the correction for SIA share price is limited as most investors had anticipated the record losses prior to the release of the result. The question now is: how would the market react to the $6.2 billion mandatory convertible bonds (MCBs). For sure, the MCBs will strengthen the national carrier’s balance sheet. At the same time, the MCBs will not be immediately dilutive to SIA share price as the bonds will only mature in June 2030. In this regard, I am inclined to think that market should react positive to the cash call.

Of course, not all investors would agree with me. With rights issue, you don’t know if you are throwing good money after bad. But the good thing about this MCBs is that if existing shareholders choose not to take up the offer, their equity stakes are unlikely to be diluted. In my opinion, I …

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Seeking happiness amid pandemic

LIFETIME MEMBERSHIP It has been more than a year since the outbreak of COVID-19. Just when we thought that the vaccines would enable the world to see light at end of tunnel in 2021, mutant variants have led to multiple waves of infections across countries. In Singapore, we are in a month-long of heightened alert, with new measures being implemented to curb the spread of the virus. Against this depressing backdrop, I thought it is useful to pen down some thoughts on happiness habits.

No doubt about it. Pandemic has caused many to feel anxious, depressed and stressed out. The social restrictions and public health measures not only upend our social and work routines, they have also contributed to plenty of financial woes as those working in sectors badly hit got laid off. With these challenges confronting us on a daily basis, finding happiness may seem like easier said than done.

happiness

Indeed, I am not going to sugar-coat and claim that finding happiness is a straightforward thing. It does take effort but it is not unattainable. To achieve happiness, there is a need to shift our mental modal. Given that there are reports of rising mental health cases in Singapore, I hope this article will serve as a motivation to inspire people to take charge of their lives and harness the power of happiness.

Building wealth, fostering happiness

As wealth builders, we cannot ignore the importance of happiness. Many of us have the assumption that if we find success, then happiness will follow. To be honest, this is often not the case. Take for example, a person may think that nailing that promotion will give him a pay rise and creates happiness. But the positive feeling will surely fade away after a while. With more responsibilities, he could end up …

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Singtel share price to blow up in pieces?

LIFETIME MEMBERSHIP 27 May 2021 will be destiny day for Singtel share price as the full-year financial result will be unveiled. Yet on 14 May 2021, Singtel management shocked investors by revealing that the results for financial year ended 31 March 2021 are expected to include net exceptional losses of $1.21 billion. Should investors run for their lives before Singtel share price blew up in pieces?

In my opinion, credit must be given to the management for giving retail investors ample warning about the upcoming headwind. Hand on heart, I am impressed by the management’s transparency. With this upfront caveat, at least most investors will be mentally prepared for the 27 May result. However, at the back of most investors’ mind must be the scale of collateral damage on the final dividend.

Singtel share price

Widely viewed as a dividend stock, Singtel is extremely popular among Singaporean investors as many retirees depend on this evergreen counter for passive income. For FY2020, underlying net profit declined 13% to $2.46 billion. As a result, the total dividends decreased to 12.25 cents from 17.5 cents in FY2019. With the bombshell revelation of net exceptional losses, I expect Singtel share price to come under severe pressure next week.

One important thing to highlight is that the losses are attributed mainly to non-cash impairments from Amobee, Global Cyber Security Business and Optus. In this regard, I foresee that there is still healthy amount of cash sufficient for some “respectable” final dividends to be made, albeit at a much lower level as compared to previous years. Question now is whether Singtel share price will suffer carnage from the upcoming fallout.

Prior to the 14 May announcement, Singtel share price has enjoyed good support from the big boys. In the week of 10 May, this counter is the second …

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Mapletree Logistics Trust (SGX: M44U) is better than fixed deposits

LIFETIME MEMBERSHIP After I published my investment portfolio in the previous article, an SG Wealth Builder requested me to do a deep dive into another stock in my portfolio – Mapletree Logistics Trust (SGX: M44U). As this counter is my largest investment in 2021 so far, I am more than happy to share an in-depth analysis on this S-REIT.

I have been covering Mapletree Logistics Trust (M44U) since 2018. The reasons for my conviction in this S-REIT are due to the rising unit price and the distributions in recent years. Since IPO, share price has surged from $0.63 to the current $1.90. On the other hand, annual distributions had increased from $0.0686 in FY12/13 to $0.08326 in FY20/21. Loyal investors of Mapletree Logistics Trust (M44U) must be laughing all the way to the bank!

Mapletree Logistics Trust (M44U)

For the uninitiated, Mapletree Logistics Trust (M44U)’s principal strategy is to invest in a diversified portfolio of income-producing logistics real estate as well as real estate-related assets in the fast-growing Asia-Pacific logistics sector. Sovereign wealth fund, Temasek Holdings, has about 33.1% stake in this S-REIT, holding 1.42 billion shares.

During COVID-19, Mapletree Logistics Trust (M44U) went on an aggressive acquisition spree to scale its business across the Asia-Pacific region. Within the span of a year, the portfolio increased from 145 to 163 properties comprising 52 properties in Singapore, 9 in Hong Kong SAR, 18 in Japan, 30 in China, 12 in Australia, 15 in Malaysia, 18 in South Korea, 7 in Vietnam and 2 in India. The total value of assets under management is approximately $10.6 billion.

Mapletree Logistics Trust (M44U) to hit $2.50?

MLT share price at record high

Mapletree Logistics Trust in amazing form

The acquisition spree reflected the management’s confidence of a global economy recovery in 2021. Indeed, the best time to scale …

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AEM share price dented my portfolio

LIFETIME MEMBERSHIP As a matter of policy, I do not usually share my stock investment portfolio in this blog. This is because I do not want to create the impression that I am showing off my wealth. However, at the request of an SG Wealth Builder member, I will provide at an update on my investment portfolio as at 12 May 2021. The recent devastating meltdown of AEM share price has dented the market value of my portfolio. So this update will be quite unflattering to say the least.

Given the current crisis of confidence for AEM share price, the thought of cutting losses did cross my mind to be honest. But my portfolio diversification and contra gains helped to mitigate the unrealized losses from AEM. Furthermore, AEM constituted just 11.5% of my portfolio. Henceforth, the damage from the fallout of AEM share price is largely contained. In view of this, I have decided to hold this stock for the time being and give the management the benefits of the doubt to prove themselves.

AEM share price

From $4.18 on 29 April to a low of $3.40 on 11 May, AEM share price plunged by a whopping 18.7%. The crash of AEM share price followed the release of Q1FY2021 financial result which saw revenue collapsed 45.4% year-on-year. Obviously, investors were horrified and ran for their lives, causing AEM share to suffer carnage.

The volatility of AEM share price means that this counter is not for the weak-hearted. I have always emphasized that there are no good or bad stocks. Instead, there are only good or bad investment strategies. There are opportunities to make money out of the wild swings of AEM share price, provided you set the right entry and exit levels. More importantly, it also drives home the importance of …

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Hour Glass share price at 10-year high

LIFETIME MEMBERSHIP My last coverage of Hour Glass share price was in June 2019. That was nearly two years ago. Recently, a new member of SG Wealth Builder requested for my insights on the potentials of Hour Glass share price and Cortina share price. In this regard, I thought it is timely to blog about these two counters.

Between the two home-grown luxury watch retailers, Hour Glass has a much bigger market capitalization ($662.7 million) as compared to Cortina ($374.2 million). But what is puzzling to me is that both counters enjoy incredible bull runs from 2020 until now. Given that luxury watch retailers’ business is highly sensitive to economic condition, the performances of Hour Glass share price and Cortina share price have exceeded expectations.

Mind you, the global economy is still struggling under the devastating impacts of COVID-19. In view of this, what could be the key catalysts that turbocharged Hour Glass share price and Cortina share price?

Hour Glass share price

In my opinion, the biggest factor for the explosive runs of Hour Glass share and Cortina share price should be the restored stability of Hong Kong market, which is the world’s largest market for Swiss luxury watches. Back in 2019, Hong Kong was mired in never-ending civil riots, causing plenty of uncertainties among investors. However, Man proposes, God disposes. COVID-19 imploded out of nowhere in 2020 to install peace in Hong Kong.

In 2019, I also pointed out that Hour Glass share price had surged because the luxury watch industry has emerged from a perennial oversupply issue. As Cortina operates in the same sector as Hour Glass, I believe Cortina share price also benefitted from the turnaround. But apart from Hong Kong and the supply dynamics, COVID-19 has helped to swing the favour to Hour Glass share price and …

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Integrated Shield Plan (IP) with full rider

For the longest time, I wanted to blog about Integrated Shield Plan (IP) but have been putting it off due to various reasons. The impetus for this article is due to a recent request by a lifetime member. He is seeking my views on the recent saga between the medical professionals and the insurers over the Integrated Shield Plan (IP).

The latest sparring between Singapore Medical Association (SMA) and insurers came after Ministry of Health (MOH) banned the sale of new Integrated Shield Plan (IP) with full rider on 7 March 2018. What riled many Singaporeans was the manner in which the policy was implemented. To prevent people from rushing to buy full riders, those buying a rider from 8 March 2018 had to switch to the new scheme by 1 April 2021 at the latest. Back then, MOH has not mandated any change to the 1.1 million policyholders who have full riders.

Integrated Shield Plan (IP)

I am one of the 1.1 million policyholders who have full riders. When MOH announced that new Integrated Shield Plan (IP) must come with the co-payment feature, I feared that the insurers would do the same for existing policyholders. Indeed, my worst fear came true on 18 February 2021 when NTUC Income emailed me changes applicable to my Plus Rider.

My Integrated Shield Plan (IP) is Enhanced Incomeshield Preferred. Under this plan, I am entitled to a standard room in private hospital or private medical institution. The policy limit is $1.5 million. I have bought similar plan for my family as well. As Enhanced Incomeshield Preferred is basically an Integrated Shield Plan for private hospital stays, I have purchased Plus Riders for my family (including myself). The idea is to avoid paying the co-payment portion for medical bills arising from private hospital stays.

With …

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