Sembcorp Marine share price collapsed

LIFETIME MEMBERSHIP What a mayhem for Sembcorp Marine share price! On 24 June, both Sembcorp Marine and Keppel Corp requested trading halts for their counters. The trading halts were in preparation for the release of the epic announcements in relation to the bombshell $1.5 billion rights issue and commencement of merger talks between Sembcorp Marine and Keppel Offshore & Marine (KOM).

Sembcorp Marine share price

For Sembcorp Marine share price, it is a case of lightning strikes twice. The previous rights issue of $2.1 billion took place just in September 2020. And now, within a span of less than a year, Sembcorp Marine has come back to ask for more money from shareholders. To rub salt into injury, the latest cash call amounted to a staggering $1.5 billion, representing 63% of the current market capitalization. Against this backdrop, Sembcorp Marine share price plunged by as much as 28% after trading halt was lifted.

For sure, the twin announcements raised more questions than answers for investors. A few SG Wealth Builders had written in to request for my insights. Understandably, confidence was shaken for Sembcorp Marine share price. The management shot itself in the foot by announcing the massive rights issue together with the merger talks with KOM.

Make no mistake, the official reason given by Sembcorp Marine for the $1.5 billion rights issue was to address working capital depletion, debt servicing and liquidity issue. This is a clear indication that the upcoming 1HFY2021 financial result could be a disaster, so investors must brace themselves for another wave of correction for Sembcorp Marine share price in July. An important thing to note is the rights issue is not meant to fund the potential merger with KOM.

Previously, I have indicated that a merger with KOM will be the perfect catalyst for Sembcorp Marine share …

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Sembcorp Marine share price to sink or swim?


Will Sembcorp Marine share price sink or swim in the coming months? In 2021, the rollout of COVID-19 vaccinations had led to gradual resumption of economic activities in various countries. While global economies had yet to recover to pre-pandemic levels, crude oil prices recently hit a 2-year high of US$73 per barrel. What is the implication of rising crude oil prices for local oil and gas stocks?

A long-time SG Wealth Builder member sought my insights on the recent recovery of crude oil prices and queried how this would affect SGX listed oil and gas stocks. The member did not specify any particular oil and gas stocks that he would like to cover, so I would share my views on Sembcorp Marine share price instead. This is because Keppel Corp and Sembcorp Marine are the top dogs in this sector. However, the former has announced its intention to exit the oil-rig building business to pivot in the renewable energy sector.

Source: Bullionstar

The second reason why I choose to analyze Sembcorp Marine share price is because I had a successful contra trade in this counter in April 2021. Through the volatility of Sembcorp Marine share price, I have made a small profit of $900. It is not exactly an amount to shout about. But the small win validated my thesis that there are opportunities to seize from the volatility of Sembcorp Marine share price. Due to the cyclical nature of the oil and gas industry, I do not advocate a buy-and-hold strategy for oil and gas stocks.

Sembcorp Marine share price to smash past $0.40?


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Biggest myths about CPF Nomination

LIFETIME MEMBERSHIP The Chinese has a saying “You come to this world with nothing, and you shall leave this world with nothing.” Death is an inevitable phase of life which everyone would have to go through. While your CPF savings certainly belong to yours, the ownership would cease upon death. This is a fundamental universal truth. However, being a responsible wealth builder, I believe in forward planning. In this article, I will share my thoughts on the biggest myths about CPF nomination.

In 2017, I have made my CPF nomination. The process was incredibly simple and easy. It is also free of charge. I was very impressed by CPF Board’s efficiency and service standard. Within three days, I got a follow-up call from a CPF officer confirming my nomination details were in order and within a week, I got an official letter from CPF Board.

CPF nomination

Will versus CPF nomination

The biggest myth about CPF monies is that you can make a will on it. Many Singaporeans are not aware that CPF savings are not covered under will. According to CPF Board website, CPF savings are not part of your estate. The policy intent is to protect from creditor claims on any outstanding debts. This arrangement aims to “protect your CPF savings and ensures that your nominees receive your CPF savings expeditiously”. If you wanted your CPF savings to be distributed according to your wishes, then the only way is to make CPF nomination.

In the absence of a valid CPF nomination, your CPF savings would be transferred to another public agency called Public Trustee Office (PTO) upon your death. The biggest irony of all is that CPF nomination is free of charge.

When you are alive, making a CPF nomination does not cost a single cent at all.  Yes, …

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Wilmar share price in explosive meltdown

LIFETIME MEMBERSHIP What a disaster for Wilmar share price. The wheel finally came off the wagon when Wilmar share price hit a 5-year high of $5.60 on 19 February 2021. Wilmar share price began to nose dive after crude palm oil (CPO) prices peaked at a record high of RM$4,400 per tonne in April 2021.

As of 17 June 2021, CPO price has plunged to a low of RM$3,377 per tonne. In view of this, there is further room for the correction of Wilmar share price. For sure, the train wreck of Wilmar share price caught many investors by surprise. Should investors run for their lives?

Wilmar share price

Wilmar is one of the largest oil palm plantation owners in Indonesia and Malaysia. As such, Wilmar share price is prone to the volatility of CPO prices. One of the driving factors for the surging CPO prices in 2021 is due to the huge demand for palm oil by India. In fact, palm oil exports from Malaysia to India rocketed 766% year-on-year from January to May 2021. However, due to the second COVID-19 wave in India, palm oil demand is expected to decline sharply in the coming months due to the lockdowns in the South Asia country.

It is still early to assess the impact of the demand destruction of India. Nonetheless, the drop in CPO prices would have been worse if not for the Malaysia’s lockdown, which caused a severe labour shortage among plantation owners. The labour shortage led to lower palm oil production, thereby mitigating the fall in the demand side of the house. Against this backdrop, what is the outlook for Wilmar share price in 2021?

In 2020, I invested in Wilmar and exited at a profit of $2,700 in early 2021. My lowest entry for Wilmar share price was $4.84 …

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Sembcorp Industries share price in India nightmare

LIFETIME MEMBERSHIP My last coverage on Sembcorp Industries share price was in February 2021. That was before the devastating second wave of COVID-19 infections took place in India. With a significant business exposure in India, what would be the impact levied on Sembcorp Industries share price? So far, the management had updated that its assets in Myanmar continued to be in operations despite the civil unrest. But there were no updates on the situation in India. On this note, investors have every reason to be concerned about Sembcorp’s India operations.

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Sembcorp Industries share price gave me 37% return!

Sembcorp Industries share price

Given the situation in India, there are plenty of uncertainties for Sembcorp Industries share price. It doesn’t help that there are no business updates for the 1st quarter financial performance. The Group is not required to file quarterly results as SGX had ceased the quarterly financial reporting requirement. Without clarity on this significant downside risk, investors are left wondering how Sembcorp Industries will fare in the upcoming 1HFY2021 financial result.

Through Sembcorp Energy India Ltd (SEIL), Sembcorp Industries has $1.57 billion worth of ownership interest in India. SEIL has wind, solar and thermal power assets (P1 and P2). Due to COVID-19 pandemic, net profit from India operation was $50 million, compared to $100 million in 2019. The drop was attributed to the lower demand in India, which declined 3% on a year-on-year basis, and Indian Energy Exchange (IEX) spot prices were 21% lower in 2020 compared to 2019.

The contribution from India would have been worse if it is not for the exceptional $98 million claim in favor of Sembcorp. Given the lock downs in India, it is only reasonable to expect the energy demand for industrial in India to plummet. In this regard, I …

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Sarine Tech share price to do an iFAST?

LIFETIME MEMBERSHIP Diamond, diamond, in the sky. Who’s the shiniest of them all? The raging form of iFAST has set many SGX technology stocks on fire, and Sarine Tech share price is one of those riding on the current wave. For perspective, the counter has surged by 45% since the start of the year. While Sarine Tech share price is still some way off the record high of $3.20 seen in 2014, its current share performance is impressive given the current market condition.

A loyal supporter of SG Wealth Builder wrote in to seek my insights on the outlook of Sarine Tech share price, so I feel obliged to write a balanced view on this counter. As I have mentioned before, my investment philosophy is that there are no good or bad stocks. In the stock market, there are only good or bad strategies. It is possible that investors make money out of risky stocks. Conversely, many seasoned investors have lost their pants investing in purportedly “safe” stocks like Hyflux and Eagle Hospitality Trust.

Sarine Tech share price

Before I share my view on Sarine Tech share price, let’s do a brief company background. Firstly, Sarine does not sell diamonds. Instead, the Israel company provides smart solutions throughout the entire diamond value chain, spanning from upstream (miners) to rough diamond polishing (mid-stream) to grading and trading (downstream). Essentially, like iFAST, Sarine is a software company. The competitive edge of Sarine is its patented solutions used throughout the diamond value chain.

To be fair to the management, the bullish form of Sarine Tech share price should be largely attributed to the recovery of the global diamond industry since the second half of 2020. Against this backdrop, the Group recorded first quarter revenue of US$17 million (best quarter since 2014) and net profit …

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DBS Group Holdings share price at record high!

LIFETIME MEMBERSHIP Has DBS Group Holdings share price fulfilled its destiny? On 14 April, I wrote that DBS Group Holdings share price could smash past $30 following the release of the first quarter business update. Indeed, DBS Group Holdings share price did not fail to disappoint investors. Recently, the counter hit the record high of $30 on the back of a stellar financial result.

For perspective, the Group’s first-quarter 2021 net profit doubled from the previous quarter and increased 72% from a year ago to $2.01 billion. Thus, the buoyant form of DBS Group Holdings share price is not unexpected. To put the icing on the cake, it was the first time that DBS’ quarterly earnings crossed $2 billion. The solid financial result is amazing given that global economy is still in the doldrum amid the global pandemic crisis. Question now is: where would DBS Group Holdings share price go from here?

DBS Group Holdings share price

DBS share price (SGX: D05) bottomed out?

DBS Group Holdings riding the storm

DBS Group Holdings share price & Piyush Gupta

Since November 2020, DBS Group Holdings share price basically went on a rampage. The counter surged from $21 to the current $30. The roll-out of COVID-19 vaccination had ignited hopes of a global economic recovery in 2021. Arising from this, institutional funds started to rotate out of technology stocks and poured funds into bank stocks.

Incidentally, the past six months also saw DBS making two strategic acquisitions that could shape the performance of DBS Group share price in the years to come. In November 2020, DBS completed the take-over of Lakshmi Vilas Bank in India. Then in April 2021, DBS acquired a 13% stake in Shenzhen Rural Commercial Bank for $1.079 billion.

As a leading light of SGX, DBS Group Holdings share price is closely watched by …

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OCBC share price to test $15?

LIFETIME MEMBERSHIP What a boisterous form for OCBC share price! In my previous article, I shared that OCBC share price could be on fire with the release of the first quarter financial result. Indeed, OCBC did not fail to deliver. Group net profit for 1QFY2021 of $1.50 billion was significantly higher than the $698 million a year ago.

But then again, Man proposes, God disposes. All local bank stocks, including OCBC share price, suffered a correction following news of the first COVID-19 case at Changi Airport. Since then, the growing number of infections linked to Changi Airport has turned it into the largest cluster in 2021. Against this backdrop, the narrative for OCBC share price turned sombre. From $12.60 on 10 May, OCBC share price tanked to $11.70 on 14 May. In this regard, volatility remains the name of the game for OCBC share price.

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OCBC share price in new dawn

OCBC share price

It certainly seems that the proverbial “sell in May and go away” syndrome is in play even as COVID-19 continues to rage in various countries. But the blip for OCBC share price did not last long as the Group embarked on an aggressive shares buyback mission to rescue OCBC share price. In the month of May alone, the bank conducted 13 share buybacks. As of 1 June, a total of 4.48 million of shares had been purchased from the market.

For perspective, DBS and UOB had not conducted any shares buybacks in 2021. Traditionally, OCBC is considered the most aggressive when it comes to share buybacks in recent years. In fact, the series of share buybacks in March and April 2020 enabled OCBC share price to make a swift recovery from the low of $7.80.

Incidentally, the share buybacks also …

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