Geo Energy share price in last dance?

Sign up for only $19.99! According to the latest World Bank report, coal prices had reached an all-time high in March following the start of the war in Ukraine. The surge is due to the increased demand for coal as a substitute for natural gas in electricity generation. Against this backdrop, Geo Energy share price stunned many investors as the share price of the coal mining group crashed from a high of $0.58 in April 2022 to the current $0.38. The bizarre drop led to a query from a concerned SG Wealth Builder Member.

What made the meltdown of Geo Energy share price so extraordinary was that it came on the back of a stellar financial performance. In February 2022, the Group announced that net profit for FY2021 amounted to US$179.1 million, representing a complete turnaround from the net loss of US$11.5 million from operations in 2020. However, a deeper analysis revealed that the outlook for Geo Energy may not be so rosy in the near future. Apparently, the big boys are aware of this and are shorting the counter.

Geo Energy share price

In my previous article, I have shared with readers how to use SGX short-selling data to determine if a particular SGX stock has been targeted by short-sellers. In this article, I will apply the methodology and provide the explanation for the seemingly inexplicable fall of Geo Energy share price.

As a matter of personal policy, I have avoided investing in penny stocks in recent years after burning my fingers in a S-chip more than ten years ago. From my experience, investing in penny stocks may generate great returns when the share prices soar. Conversely, you may incur big paper losses when the tide turns against you. Many times, the volatilities of the penny stocks are driven by the …

Read more

Sembcorp Industries share price in hypersonic boom!

Sign up for only $19.99! Is CEO Wong Kim Yin the Special One to bring Sembcorp Industries to the Holy Land? Since the explosive divorce with Sembcorp Marine, Sembcorp Industries share price had gone from strength to strength, surging from $1.18 in September 2020 to the recent $2.87. Within the span of nearly 2 years, Sembcorp Industries share price rocketed 140%. Given the splendid form of Sembcorp Industries share price, credit should be given to the Group CEO, Wong Kim Yin, who joined the Group only in July 2020.

In 2022, against the backdrop of a challenging operating environment, Sembcorp Industries share price confounded many investors by continuing its fine run. Year-to-date, Sembcorp Industries share price rocketed 42% (at the point of writing). Given that pandemic is not still not over yet and the world is still coming to terms with the fallout from the Ukraine-Russia war, the rampant run of Sembcorp Industries share price is indeed puzzling. What could be the driving forces for this counter?

Sembcorp Industries share price

In my assessment, the clue can be gleaned from the full-year annual report. The annoying thing about Sembcorp Industries is that the company stopped publishing quarterly financial result since 2020 after SGX waived off this requirement. Thus, investors can only form their investment thesis based on half-year or full-year financial results.

In early 2022, Sembcorp Energy India Limited (SEIL), has signed a long-term power purchase agreement (PPA) to supply 625 megawatts of power to Andhra Pradesh state power distribution companies for 12 years. Subsequently, Sembcorp Energy India Limited (SEIL), signed a power purchase agreement with PTC India Limited to supply 200MW of power to Bangladesh till May 2033. The former will commence in 2023 while the latter was expected to commence operation in the first half of 2022.

Given that the 625MW

Read more

Importance of making your CPF nomination

Sign up for only $19.99! According to the Insolvency and Public Trustee Office (IPTO), as at 31 December 2020, the amount of unclaimed monies held at IPTO was $234 million, of which $150 million were unclaimed un-nominated CPF savings and $84 million were other unclaimed monies. The fact that there were $150 million of unclaimed un-nominated CPF savings means that there are still a number of Singaporeans who have yet to make their CPF nominations.

In 2017, I have made my CPF nomination. Subsequently in 2019, 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.

CPF nomination

The reason why I am sharing this article is because I hope Singaporeans can understand the implications of not making a 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.

BullionStarIn this article, I will pen down my thoughts on the importance of making CPF nomination. Take note that this is not a financial advice but just an opinion article to share my personal experience. If in doubt, please do seek advice from a certified financial planner.

Will versus CPF nomination

The biggest …

Read more

SGX short selling data

Sign up for only $19.99! Recently, a Lifetime Member of SG Wealth Builder enquired about the SGX short selling data. As such, I will share with readers on how to find this data in SGX website. Readers should find this data useful as it may provide important clues on the performances of a stock. From the SGX short selling data, investors may also know if short sellers are behind the volatility of a stock.

Disclaimer for this article: SGX did not pay me to write this article nor am I promoting short selling. In addition, the information contained in this article is based entirely on my research obtained from content provided in SGX website. I do not have experience on SGX short selling.

SGX short selling data

Generally speaking, short selling helps to prevent the market from becoming over-exuberance. This is especially so during bull market when share prices get ahead of the business growth. Therefore, short selling allows for efficient market pricing and enables investors to hedge their portfolio. Although short selling has it merits, such activity may be disruptive to the market if it spirals out of control. Hence, Monetary Authority of Singapore (MAS) and SGX publish information on SGX short selling activities so that there is transparency. In other words, the SGX short selling data will ensure a more “level playing” field among retail investors, who tend to take “long” positions on stocks.

Short selling refers to the sale of securities that the seller does not own at the time of the sale. Short selling may either be: ‘covered’ or ‘uncovered’ (also referred to as ‘naked’ short selling). In ‘covered’ short selling, at the time of the sale, the seller has borrowed the securities or has otherwise made arrangements to fulfil his obligation to deliver the securities. In ‘uncovered’ …

Read more

OCBC share price in perfect storm

Lifetime Membership Special Offer! The past few days had been absolutely chaotic as global stock markets tumbled over fear of recession and soaring inflation in US. Investors were bracing for US Federal Reserves to raise interest rate hikes aggressively to fight the raging inflation. Consequently, the Federal Reserves did raise interest rate – by a whopping 75 basis points, the biggest hike since 1994. Will OCBC share price rocket in the aftermath of the interest rate hike?

Conventional wisdom indicates that bank stocks should perform well in high inflationary environment as high interest rates generally lead to higher net interest incomes for the banks. This was my hypothesis when I invested in 6000 of OCBC shares in August 2021. Back then, I anticipated that US Federal Reserves would hike interest rates this year and that Singapore bank stocks would be the biggest beneficiary from the rate hikes. However, OCBC share price flatter to deceive. And I was humbled.

OCBC share price

Till date, US Federal Reserves had raised interest rate by 150 basis points (75 basis points on 15 June, 50 basis points on 7 May and 25 basis points on 17 March). Yet, OCBC share price remained stagnant year-to-date (at the point of writing). The sluggish OCBC share price prompted me to sell when OCBC share price was trading at $12.40 in May 2022. After factoring the interim dividend of $0.25 issued in August 2021, the yield amounted to 2% (I have exited before ex-dividend in May 2022).

The nine months of holding the OCBC shares was truly a frustrating experience as DBS and UOB share prices both had robust runs in that period. In comparison, OCBC share price had been lethargic and totally lack form. Thus, I am glad to have exited at $12.40 as OCBC share price fell following the …

Read more

DBS Group Holdings faces Asia Financial Crisis 2022?

Lifetime Membership Special Offer! The power tailwind may turn out to be a deadly headwind. Many analysts, including myself, had believed that the ongoing US Federal Reserve interest rate hikes will turbocharge Singapore bank stocks like DBS Group Holdings share price to high heavens. Yet that fantasy has not materialized despite the fact that US Federal Reserves had raised interest rate by 75 basis points (50 basis points on 7 May and 25 basis points on 17 March). Year-to-date, DBS Group Holdings share price had tumbled 8% instead. What the hell has happened to the leading light of SGX?

DBS Group Holdings share price

A concerned SG Wealth Builder Lifetime member has written in to enquire about the bizarre performance of Singapore bank stocks against the backdrop of rising interest rates. To be fair, US bank stocks like Bank of America and JP Morgan have performed worse in comparison to their Singapore counterparts, falling by an average of 25% year-to-date.

The prevalent thinking is that the surging inflation, coupled with the rising interest rates, could tip global economy into a recession. It also doesn’t help that the ongoing Ukraine-Russia conflict worsens the global supply-chain disruption brought forth by the pandemic. All these uncertainties create fear in the market. Although the contrarian would argue that one should invest when there is much fear in the market, investors should not throw caution to the wind. In my view, a storm may be brewing over in Asia. One that may wretch havoc to Singapore bank stocks like DBS Group Holdings share price.

Source: Bullionstar

Currently, Japanese yen is nearing a 24-year low against the greenback. The Japanese yen has been falling since early 2021 but the steepest fall occurred on 6 March 2022, a weak after the start of the Ukraine-Russia conflict. In the forex market, USD/JPY

Read more

Grab share price crashed 80%

Lifetime Membership Special Offer! What a devastating plunge! From $13.06 on its first trading day (2 December 2021), Grab share price plunged by 80% to reach the abysmal level of $2.90. The terrifying nose-dive made Grab shares one of the worst IPO performers in recent memory, triggering plenty of soul-searching among investors.

Lately, one of my Lifetime Members wrote in to enquire about the disappointing performance of the “Super App” in Nasdaq. He also enquired if Grab should be listed in Southeast Asia instead of US. Indeed, much ink has been spilled on the volatility of Grab share price. I will attempt to cover the poor performance of Grab share price from another perspective.

Grab share price

When Grab debut in Nasdaq, data revealed that the short interest volume (29.4 million) had already exceeded the average daily share volume (26.7 million). To be frank, this is nothing out of ordinary. In the US market, short selling attacks are very prevalent. But what is intriguing is that the short interest for Grab surged consistently since IPO to reach more than 4-fold.

Based on the short interest data, it appears to me that the short-sellers have very bearish outlook for Grab share price. In fact, the volumes of short interest in the past six months are also not showing any signs of peaking. In this regard, those who are on the long side need to be careful to avoid catching the proverbial falling knife. To compound matters, the sharp drop in Grab share price has led to a slew of class action lawsuits against the Singapore-based company.

In early March and April 2022, Grab faced two class action suits from a “class of persons who allegedly suffered damages as a result of alleged misstatements and omissions” in the SEC filings by Grab. Since then, there …

Read more

SPH REIT to merge with MPACT or CICT?

Lifetime Membership Special Offer! When SPH shareholders approved the acquisition by Cuscaden Peak on 22 March 2022, the writing was on the wall that SPH REIT would be the next to be acquired. Indeed, the consortium subsequently announced the chain offer of SPH REIT at $0.9640 per unit on 29 April 2022. Should unitholders accept, reject or run for their lives?

Cuscaden Peak is a consortium that is made up of entities linked to Hotel Properties (40%), CapitaLand Group (30%) and Mapletree Investments (30%). Given that CapitaLand and Mapletree are majority-controlled by Temasek Holdings and are sponsors of S-REITs, what is the possibility of the assets of SPH REIT being injected into MPACT or CICT? In life, never say never. After all, the S-REIT sector is undergoing a wave of consolidation post-pandemic.

SPH REIT

Before we talk about life after the chain offer, let’s take a look at the unfolding chain offer. It should be noted that after adjusting for the 1QFY2022 and 2QFY2022 distributions, the offer price is actually $0.9372 per unit. At the point of writing, SPH REIT unit price is being traded at $0.945. In this regard, some unitholders may feel that they were given a raw deal. One member of SG Wealth Builder even enquired if a delisting is on the cards.

In this article, I will share my opinion on the chain offer and provide my assessment the possibility of SPH REIT being delisted from SGX. Before proceeding, investors should be aware that cash offer and delisting requirements come under two different rules – the former falls under Singapore Code on Take-Overs and Mergers while the latter falls under Section 295A(1) of the Securities and Futures Act 2001 of Singapore.

As at 1 June 2022, Cuscaden Peak had already obtained 51.96% of the total SPH REIT units

Read more

Keppel DC REIT in turbulence

Lifetime Membership Special Offer! Since the start of the year, stock market sentiments have been pretty much bearish. The US Federal interest rate hikes, combined with the Russia-Ukraine conflict, have created much uncertainties for the market. For this reason, it is not surprising that the unit price of Keppel DC REIT (SGX: AJBU) turned sluggish, falling by 17% year-to-date. Several members of SG Wealth Builder have written to express their concerns on the falling Keppel DC REIT unit price.

From $3.00 in January 2021 to the current $2.05, the correction in Keppel DC REIT unit price has lasted for more than a year. As the plunge started before the events unfolded in 2022, the drop is indeed puzzling. In this regard, unitholders have every reason to be concerned. Some of them are also wondering if it is worthwhile to continue holding the stock. Although I am not vested in this counter and could not advise members or readers on the course of actions for their investments, I would like to share my investment approach for S-REITs.

Keppel DC REIT

Currently, I am vested in another S-REIT, Mapletree Logistics Trust. I entered at $1.96 in last year. Like Keppel DC REIT, Mapletree Logistics Trust has been in a severe bout of correction mode since last year, falling by 11.7% year-to-date. Hence, the predicament faced by Keppel DC REIT investors is not actually unique.

Notwithstanding the paper loss, I am not losing sleep because I invested in Mapletree Logistics Trust primarily for the long-term due to its stable distributions, which are paid on a quarterly basis. For me, Mapletree Logistics Trust is part of my retirement portfolio and I see the dips in prices as opportunities for accumulation.

My opinion is that those who had bought this counter should not be too focused over the …

Read more

SG Wealth Builder Lifetime Membership Special Offer

Lifetime Membership 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 12 years of blogging, not 12 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. Along the way, I have seen so many promising bloggers giving up and turning 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 can bring …

Read more

SIA share price (SGX: C6L) in wheel of fortunes!

SIA share price

Being the top dog in the aviation industry, SIA (SGX: C6L) is one of the leading lights of SGX. As the world emerges from the ravages of the COVID-19 pandemic, how will SIA share price (SGX: C6L) unravel in the coming months? To make money from stocks, it is crucial to buy low and sell high. In that perspective, I would like to share my insights on whether the current SIA share price is a good entry point.

My last article on SIA share price (SGX: C6L) was on 6 February 2022. In that article, I predicted SIA share price to be trading between the $6 to $7 bandwidths in 2022. So far, the counter is still some way off the levels that I have forecasted. However, it should be noted that the article was written before the implosion of the Russian-Ukraine war, the US interest rate hikes and the COVID-19 lockdowns in China. Given the dramatic change in the operating climate, let’s take a look whether my original thesis still stands.

Chart: BullionStar

Due to the countless twists and turns of the pandemic saga, analysing the outlook of SIA share price is always a tricky business. But one thing I think I got it right is the close correlation of SIA share price with the oil price movements. Looking at the above chart, we can see that crude oil price peaked at USD126.86 per barrel on 8 March 2022. On that day, SIA share price crashed to a low of $4.87 from $5.40 on 18 February 2022. Prior to the hit from oil prices, SIA share price had been on a roll as Singapore announced a slew of public health measure relaxations aimed at opening up the borders.

Needless to say, the spike in crude oil price was due …

Read more

Home loans in era of SORA

In perhaps the biggest shake-up for the mortgage landscape, the Monetary Authority of Singapore (MAS) launched the landmark interest rate in 2021 – SORA (Singapore Overnight Rate Average). This shift is considered a massive game-changer, and could have major impacts on existing home-owners and home buyers. So read on to find out what is this SORA is all about and how it may affect your financial decisions if you are looking at taking new home loans, refinancing or repricing of home loans.

SORA

Thus far, the US Federal Reserve has hiked interest rates by a total of 0.75% in 2022. Against the backdrop of record inflation rates in US, the Federal Reserve has also signalled their intention to increase interest rates further in the coming months. Incidentally, the rising interest rates take place at a time when MAS mandates the roll-out of SORA and discontinuation of SIBOR (Singapore Interbank Offered Rates) by 2024.

In the past, the volatility of US interest rates usually led to corresponding volatility in the SIBOR rates. However, with SORA, the situation has changed a fair bit as SORA works quite differently to SIBOR.

Before proceeding to explain what is exactly the difference between SORA and SIBOR, you should take note of the key dates:

31 March 2022 – 6-month SIBOR have ceased

31 Dec 2024 – 1-month and 3-month SIBOR will cease

Those who were on 6-month SIBOR home loans should have been notified by their banks to convert their loans. Anyway, the demands for 6-month SIBOR were typically not high. Thus, the affected borrowers should be quite few. For borrowers on loans that reference 1-month or 3-month SIBOR, details of your loan conversion will be released in due course, given that these benchmarks will only be discontinued after 31 December 2024. In any …

Read more

Alibaba share price (HKEX: 9988) in horror meltdown

From hero to zero, Alibaba founder Jack Ma’s fall from grace has been nothing short of spectacular. In October 2020, Jack Ma, blasted Chinese financial regulators for stifling innovation at the Bund Summit in Shanghai. The criticism did not go down well with the Chinese authorities who subsequently launched a slew of regulatory crackdowns targeting Chinese tech stocks. Since then, Alibaba share price (HKEX: 9988) had endured a torrid run.

The collapse of Alibaba share price (HKEX: 9988) has caused plenty of heart pains for investors. Numerous investors had entered this counter when Alibaba share price (HKEX: 9988) was trading between HK$150 to HK$298. Given that Alibaba share price (HKEX: 9988) is currently trading at about HK$80 bandwidth, the rout had been pretty devastating for investors. The question now is whether recovery is in sight for Alibaba share price (HKEX: 9988).

Alibaba share price 9988

Many investors had been buying on the dip – buying more shares as Alibaba share price (HKEX: 9988) continues to plunge. Although such strategy is not unsound, many investors are starting to panic as there is no sign of bottoming of share price. And what if the end-point for Alibaba share price (HKEX: 9988) is HK$1? That would be an absolute nightmare!

The prevailing negative sentiments on Chinese tech stocks are driven mainly by macroeconomic growth of China, geopolitical concerns and regulatory clampdowns. As such, business fundamentals are completely irrelevant for Chinese tech stocks like Alibaba share price (HKEX: 9988). From this perspective, recovery of Chinese tech stocks will depend largely on these factors.

Alibaba share price to surge ten-fold in value?

Alibaba share price in wonderland with Temasek Holdings

Dark side of Alibaba Group

In recent days, Alibaba share price (HKEX: 9988) has stabilized somewhat after reports of Chinese’s intentions to roll out policies to support the economy …

Read more

MLT unit price (SGX: M44U) looking sexy!

My last update on Mapletree Logistics Trust (MLT) unit price (SGX: M44U) was in January 2022. Since then, the counter went through some volatility, falling from $1.78 to a low of $1.69 in end of January 2022 and then surge to a high of $1.88 in early April before falling to the current $1.68. As a unitholder, the volatility of MLT unit price (SGX: M44U) is certainly unsettling, at least for me. What could be the reason for the trend of MLT unit price (SGX: M44U)?

For background, the principal activity of MLT is to invest in a diversified portfolio of logistics real estate in Asia Pacific with the aim of providing its unitholders with a stable distribution stream. As at 31 March 2022, the Group’s portfolio had grown to a portfolio of 183 properties, comprising 53 properties in Singapore, 9 in Hong Kong SAR, 42 in China, 19 in Japan, 19 in South Korea, 13 in Australia, 16 in Malaysia, 10 in Vietnam and 2 in India. The total value of assets under management is $13.1 billion.

MLT m44u

The recent correction of MLT unit price (SGX: M44U) was partially attributed to the counter being ex-dividend on 9 May 2022. The S-REIT announced distribution per unit (DPU) of 2.268 cents for quarter ended 31 March 2022. This was an increase from the 2.161 cents distributed in 31 March 2021. For 12 months ended 31 March 2022, the full-year DPU was 8.787 cents.

The current MLT unit price is actually very attractive in terms of accumulation. Assuming the full-year DPU remains stagnant at 8.787 cents and assuming that you bought at the current $1.66, the annual dividend yield should be about 5.3%, which is much higher than bank saving rates. In this regard, the falling MLT unit price (SGX: M44U) provides …

Read more

AEM share price (SGX: AWX) in whirlwind!

On 5th of May 2022, Dow Jones crashed 1063 points amid concerns of recession and surging global inflations. The following day, the Straits Times Index (STI) suffered a rout. In the sea of red, the bullish form of AEM share price stood out. At one point, AEM share price surged 2.5%, making it the top gainer in SGX. However, by the end of the trading day, the counter surrendered all the gains and fizzled out.

The volatile form of AEM share price came on the back on a solid first quarter financial updater for FY2022, which saw the semiconductor test equipment manufacturer posting its highest quarterly revenue and profit before tax in its history. Net profit rocketed more than three-fold to smash a high of $40.8 million while revenue hit $262 million.

AEM share price

Previously, I wrote that AEM may become a $1 billion revenue company. On the basis of the quarterly performance, that day will come sooner than I expect. In fact, I would have expected AEM share price to breeze past the $5.00 mark on 6th May 2022. If not for the overall stock market carnage, the stellar first quarter performance would have turbocharged AEM share price to high heavens.

AEM share price in holy grail with Temasek

AEM share price in $1 billion dream

AEM share price in perfect storm

AEM share price to jump 100% with new patent?

The first quarter performance is critical as it sets the stage for subsequent quarterly performances. In my view, the result validated the assumption on the volume ramp up from Intel and provided a good basis for my hypothesis of a $100 million net profit in FY2022. If the Group could perform like this for the subsequent quarters, then full-year net profit may possibly hit $160 million. If …

Read more

Xiaomi share price (HKEX: 1810) a good buy now?

Is Xiaomi share price (HKEX: 1810) at a good entry level now? My last coverage on Chinese tech stocks (Alibaba HKEX: 9988) was in February 2021. Back then, Chinese tech stocks were embroiled in a slew of regulatory headwinds following Jack Ma’s epic criticism against the regulators’ stifling innovation of the financial system. That action triggered an unprecedented storm that saw aggressive regulatory clamp downs on Chinese tech stocks.

Obviously, nobody in his right mind would have predicted the storm to last for two years. During this period, it is understandable that many investors are depressed after seeing their investments evaporated with the meltdown of Chinese tech stocks. Against this backdrop, many investors must be praying fervently for light at end of the tunnel. Recently, an SG Wealth Builder Lifetime Member requested for the coverage on one of the Chinese tech stocks: Xiaomi share price (HKEX: 1810), which I will duly oblige.

Admittedly, I have not invested in foreign stocks before, much less Chinese tech stocks. However, I have been watching the unfolding of the rout of Chinese tech stocks for the past two years. Like many Chinese tech stocks, Xiaomi share price (HKEX: 1810) had suffered huge carnage due to the crisis of confidence in Chinese tech stocks. However, recent announcement by the Chinese authorities to roll out policies to support the economy and stabilize consumption gave many investors some glimmers of hope that the slew of regulatory clamp downs may be coming to an end (finally)!

In investing, it is important to buy low and sell high. Xiaomi share price (HKEX: 1810) has plunged from an all-time high of HK$33.20 on 31 December 2020 to the current HK$11.70. This represents a staggering 45% correction from the all-time high. Although Xiaomi share price (HKEX: 1810) is at …

Read more

EnGro share price jolly holly with Ho Bee?

At the request of an SG Wealth Builder Lifetime Member, I am covering EngGro share price in this article. With a market capitalization of just $157.9 million, this is a very small cap stock in SGX. Admittedly, prior to the request from my member, I have not heard of this company before. I believe I am not alone as this counter falls under the radar of many analysts. However, a closer look on this company reveals some interesting findings.

EnGro’s history dates back to 1973 when it was formed as a tri-partite joint venture among SsangYong Cement Industrial Co. Ltd (South Korea), DBS Bank, and Afro-Asia Shipping Co. Listed on the SGX main board since 1983, the company was previously known as SsangYong Cement (Singapore) Pte Ltd. However, SsangYong Cement exited the business in 2005 and the company was renamed as EnGro Corporation Limited.

EnGro share price

As of 15 March 2022, the largest shareholder of EnGro is Dr Chua Thian Poh, Executive Chairman of Ho Bee Land, which controls Afro-Asia International Enterprises Pte Limited. Dr Chua holds 38.68% stake in EnGro. Ho Bee Land is known for being the developer of Sentosa Cove.

To be specific, EnGro is provider of building materials, specializing in specialty cement and high-performance concrete supply. Within SGX, its competitor is Pan-United Corporation. However, unlike Pan-United Corporation, EnGro has [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.]

Lost your Password?

For members of SG Wealth Builder logging in from Apple or Mac devices, please access through this link. This allows for one-time log in only (instead of having to key in user-id and password twice).

LIFETIME Read more

Singtel share price (SGX: Z74) returns from grave!

This will be my first coverage of Singtel share price in 2022. My last coverage on this counter was on 31 December 2021. Since then, Singtel share price has surged from $2.30 to $2.65 at the point of writing. Year-to-date, Singtel share price has increased about 14%. Is this yet another false dawn or light at end of tunnel for the leading regional telco?

Whilst it may be too early for investors to pop the champagne, the operating climate has certainly improved significantly as compared to 2021. The lifting of COVID-19 restrictions in March had pushed Singtel share price to an almost 2-year high as the incoming volume of tourists should increase revenue for the Singapore Consumer business. Nonetheless, the positive effect should kick in from the new financial year onwards (Singtel’s financial year ends on March).

Singtel share price

The coming weeks should see plenty of volatility for Singtel share price as the telco will release its full-year financial result. Based on the results of the past three quarters, the full-year result should be stellar, thereby providing a tailwind for Singtel share price. To put the icing on the cake, Singapore announced further relaxation of public health measures on 22 April 2022. Arising from this, number of tourists should spike in the coming months, providing another catalyst driver for 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, the lifting of border restrictions should benefit Singtel’s Singapore Consumer business. Furthermore, its regional associate’s businesses will also benefit from cross border travel as Southeast Asia countries start to ease borders’ restrictions too. Thailand, in which Singtel has operations, has also announced easing of borders’ restrictions on 22 April 2022 too.

Singtel

Read more

AEM share price in holy grail with Temasek

What a supersonic form! Investors must buckle their seat belts and brace for the wildest ride of their lives. AEM share price went on a rampage following a series of share purchases by its biggest shareholder – Temasek Holdings. Temasek’s entry in August 2021 saw the sovereign wealth fund taking an initial stake of 9.5% in AEM. Within six months, Temasek increased its stake to 12.08% following a slew of share purchases in 2022. What is the game plan that Temasek has in mind for AEM?

AEM share price

Whilst Temasek’s strategic investment in AEM may seem like a no-brainer, the narrative may not be so straightforward, at least for Temasek. To put things into perspective, Temasek used to have two major assets in the semiconductor industry – Chartered Semiconductor and Stats Chippac. Chartered Semiconductor used to be the world’s third largest chipmaker while Stats Chippac was the biggest Southeast Asia assembly and chip-testing company. Despite so, Temasek had disposed them during the previous downturn of the semiconductor industry.

Chartered Semiconductor was sold to Abu Dhabi in 2009 while Stats Chippac was sold to China’s JCET in 2015. Both companies were delisted from SGX following the buyouts. The rationale for Temasek to sell was understandable as both assets were struggling to turn around for years. Back then, stiff competition from Taiwan Semiconductor Manufacturing Company (TSMC) had led to razor-thin margins for chips. To compound matters, the higher manufacturing costs also mean that it is difficult to sustain operations in Singapore.

Given the notorious boom and bust cycle of the semiconductor industry, what could have caused Temasek to turn its head and invest in AEM? Surely, the motivating factors must be compelling enough after the experiences of Chartered Semiconductor and Stats Chippac. In this article, I will share my thoughts on the plausible …

Read more

OCBC share price so bad its good

Should it be “Sell in May and Go Away” or “Sell in March and Go Away”? In recent years, crises seemed to occur in March, leading to severe stock market corrections. In March 2020, we had the explosive market routs caused by the pandemic. And then in March 2022, the Russian war in Ukraine sent global markets into a devastating tailspin. Being one of the major Straits Times Index (STI) components, OCBC share price saw plenty of volatility.

To be frank, the recent March correction for OCBC share price could have been even more severe if its not for the timely ease of pandemic measures announced on 25 March 2022. The relaxation of measures should bode well for local banks as the operating environment improves significantly in the coming month. Rightfully, as we enter endemic, Singapore economy should recover and grow. Being the bellwether of the economy, OCBC Bank is likely to see healthy growth, thereby stimulating OCBC share price. Nonetheless, things are often not so straightforward in life.

OCBC share price

Inflation has thrown a spanner in the works for the recovery of global economy, which has barely emerged from the pandemic. And the Russia war has added even more fuel to the fire. So now the market concern is that the raging inflation rates could lead to US Federal Reserve raising interest rate by 50 basis points in the 4 May meeting. Question now is: how will this affect OCBC share price?

Under normal circumstances, rising interest rates should benefit banks as net interest income would increase correspondingly. Logically, OCBC share price should rise due to this tailwind. However, there are concerns that an aggressive interest rate hike could hurt the economy, causing non-performing loans to swell. In other words, there are fears that recession is on the way as …

Read more

iFAST share price so fast so good!

After surging from $1.00 in 2020 to an incredible high of $10 in 2021, how will iFAST share price unravel in 2022? The spell-binding run of iFAST share price was certainly stuff of legend among SGX stocks. Given that the counter has recently stalled at $6.00 levels, is it a good time for investors to enter?

For background, iFAST is basically an online platform company offering investment products to retail investors. At the same time, financial institutions and banks can distribute their investment products through iFAST’s platform. The supersonic boom of iFAST share price was due to the award of Hong Kong ePension scheme in early 2021. iFAST partnered with Hong Kong’s PCCW (owned by Li Ka Shing’s son Richard Li) to develop the digital platform for Hong Kong’s HK$1 trillion Mandatory Provident Fund.

iFAST share price

According to the latest disclosure by iFAST, the ePension division is expected to be the biggest driver for revenue and profits from 2023. This means that the project should be operationalized by end 2022. From now till end 2022 is less than a year. Against this backdrop, there should be tremendous catalyst for iFAST share price to take off within these two years.

For perspective, the management shared in the latest financial guidance that the net revenue target from the Hong Kong division should be more than HK$800 million in 2024 and HK$1.2 billion in 2025. In comparison, the revenue and profit for FY2021 amounted to just $216 million and $30 million respectively. For this reason, the Hong Kong ePension project could be a massive game-changer for iFAST share price.

One of the things I like about the Hong Kong ePension project is that it will add a recurring stream of service fees to the Group. iFAST business model predominantly involves growing their assets under administration …

Read more

Sembcorp Industries share price in cheeky run

Since my last coverage on Sembcorp Industries share price in June 2021, there was much volatility for this counter. The pandemic disaster in India had led to plenty of uncertainties for Sembcorp Industries’ India thermal projects, causing Sembcorp Industries to be bearish from June to October 2021. The litmus test arrived when the Group announced on 2 August 2021 the impairment of $212 million for its 49%- owned joint venture Chongqing Songzao Sembcorp Electric Power Co.

That announcement on 2 August 2021 caused Sembcorp Industries share price to tumble to a low of $1.80 in October 2021. Consequently, the management went on a rescue mission for Sembcorp Industries share price by embarking on a series of shares buybacks. As at 13 December 2021, the management repurchased 6,780,700 shares from the market. Based on the recent bullish run of Sembcorp Industries share price, it seems that the shares buybacks helped to revive the stock.

Sembcorp Industries share price

Since the fateful demerger of Sembcorp Industries with Sembcorp Marine, Sembcorp Industries share price had gone from strength to strength, surging from $1.18 in September 2020 to the recent $2.65. Within the span of just 1.5 year, Sembcorp Industries share price rocketed more than 100%. With the robust Sembcorp Industries share price, credit should be given to the Group CEO, Wong Kim Yin, who joined the Group only in July 2020.

Although CEO Wong Kim Yin joined the Sembcorp Industries only in 2020, he had steered the Group through a challenging and tumultuous period brought forth by the pandemic crisis. This is really no mean feat. Many critics would argue that Sembcorp Industries is backed by Temasek Holdings, so a corporate turnaround is a given. To this end, I would disagree. I have seen many cases of listed entities backed by Temasek Holdings failing to achieve …

Read more

OCBC share price rocketed amid acquisition rumors

Talk about being at the right time and right place! On 25 March, Singapore Prime Minister announced the ease of public health measures for the pandemic, thereby improving business sentiments for aviation, hospitality and F&B. The relaxation of measures should bode well for local banks due to the loan exposures to these sectors which had been hit by the pandemic. As the operating environment improved significantly, OCBC share price should enjoy some tailwinds in the coming months.

At the moment, OCBC share price should be at a turning point as the counter has largely factored in the Russia-Ukraine conflict and pandemic impacts. The series of interest rate hikes should be the key catalyst driving the share price upward. Is this a good opportunity to enter? I would say so if you have done your risk assessment and diversified your portfolio. Being the oldest bank in Singapore, this blue chip is an evergreen STI component that will withstand the test of time.

OCBC share price

Looking back, the past two months had been an absolutely gut-wrenching ride for investors as OCBC share price plunged into chaos. The day of Russia’s ‘special military operation’ in Ukraine coincided with the release of OCBC’s full-year financial result for FY2021. Consequently, investors were horrified to see OCBC share price plunging by as much as 6% on that fateful day.

Prior to the severe correction of OCBC share price in the middle of February, the counter had topped the list of institutional fund house net buys for six consecutive weeks as institutional fund houses had been pouring funds into OCBC shares. Subsequently, the invasion of Ukraine by Russia had rattled global stock market confidence on 24 February 2022. Global stock markets got routed and Straits Times Index fell 3.5% on that fateful day. The sell-offs by the big boys …

Read more

DBS share price: CEO laughing all the way to bank!

Amid the raging inflation and uncertainty inflicted by the ongoing Russia-Ukraine conflict, market sentiments had been gloomy in the past three months. And rightly so. After all, many analysts had previously predicted that 2022 could be the year of global recovery from the devastating pandemic. But the Russia-Ukraine conflict had emerged out of nowhere to torpedo global stock markets. Of course, DBS share price was not spared from the fallout.

Despite the chaos in the market, DBS share price appreciated 6.8% year-to-date. Looking back, DBS share price had been on a rather bullish form in the start of the year. Investors had bought into this counter with anticipation of a stellar full-year FY2021 result. And the bank delivered. Then again Man proposes, God disposes. Unexpectedly, Dow Jones fell 500 points on 11 February 2022 following news of a potential Russian-Ukraine conflict. In the aftermath, DBS share price had a minor correction.

DBS share price

Investors’ worst nightmare came true as the Russia’s “special military operation” in Ukraine unfolded. As a result, DBS share price tumbled from a high of $37.20 on 14 February to a low of $31.20 on 8 March, representing a correction of 16% within the span of three weeks. Yet the announcement of the much-anticipated 0.25% interest rate hike by the US Federal Reserve on 16 March had rescued DBS share price from the gallows. Then on 22 March, the Federal Reserve warned that it is prepared to hike subsequent interest rates by more than 50 basis points to fight inflation. The turn of events must have been a whirlwind for investors!

The booster shot for DBS share price came from its FY2021 financial performance as the record earnings provided a key support for DBS share price. As a growth stock, most investors should place more premium on the top-line …

Read more

Boustead share price (SGX: F9D) lost its way

The last time that I covered Boustead share price was in November 2016. Back then, the company was still struggling from the fallout due to the oil slump. Recently, a member of SG Wealth Builder requested for a coverage of Boustead share price, which I would duly oblige to do so.

Ten years ago, this counter had been on my watchlist as Boustead share price rose from $0.80 in January 2012 to an incredible high of $1.90 in April 2014. Back then, investors must have felt so surreal. By the time of my last coverage in November 2016, the bubble has burst for Boustead share price as the stock collapsed to the $0.80 bandwidth. The collapse of Boustead share price was largely due to the ailing oil and gas industry from 2014 to 2019.

Boustead share price

During the initial onset of the pandemic in 2020, Boustead share price came under further pressure as the counter plummeted to a low of $0.60 in April 2020. That was the period when crude oil prices were being traded at negative levels. Fast forward to 2022, as we approached endemic, Boustead share price has somewhat recovered to $0.90. Having said that, retail investors’ interest in Boustead share price has cooled considerably. In fact, the average 3-month trading volume amounted to just 1.4 million shares! This suggested an extremely poor liquidity for this stock.

To be fair to the management, the lack of retail investors’ interest in Boustead share price is not entirely due to the business fundamentals of the company. In my opinion, the issue faced by Boustead share price is prevailing among many SGX-listed companies. In the past decade, many Singapore investors had shifted interest to US and Chinese stocks due to the perceived higher returns. Hong Kong Stock Exchange has also emerged …

Read more

AEM share price in $1 billion dream

The year 2022 turns out to be a terrifying year for investors. Barely emerging from the protracted pandemic, the world economy looks set for another tumultuous ride as Russia’s “special military operation” in Ukraine continues to rock global community. Against this backdrop, AEM share price spirals out of control. Will AEM share price rise from the ashes like a phoenix to fulfil its destiny to be a $1 billion revenue company?

AEM share price rockets with Temasek Holdings!

Despite the gloomy operating climate, it is too early to write off AEM share price. On 7 March 2022, Temasek Holdings increased its stake in AEM to 10.29% following the acquisition of 1.41 million shares for about $3.95. The shares acquisition by Temasek Holdings is deemed by many to be a vote of confidence on the outlook for AEM share price.

AEM share price

AEM share price was then given further boost on 8 March when there was a transaction of 3 million shares for its USD counter. The AEM USD counter had been under pressure lately due to the perceived lack of turnover. On hindsight, the move by the management to launch the USD counter is prudent as we can extrapolate how well AEM may perform if it is dual-listed in NASDAQ.

The recent misadventure of Grab provides a sobering reminder that there are risks in NASDAQ listing. The shares of Grab plummeted to US$3.36 on 7 March 2022 after the company announced a fourth quarter loss of US$1.1 billion. Now, Grab is purportedly facing class action suits in US. Thus, it remains to be seen if AEM share price will suffer the same fate as Grab if the former is listed in NASDAQ.

Year-to-date, AEM share price fell by about 21%. The management tried to provide support for AEM share price by initiating …

Read more

Q&M share price to rocket with NASDAQ gambit?

LIFETIME MEMBERSHIP The last time that I had covered Q&M share price was in 2019. That was really the land before time! Recently, a Lifetime Member requested for an update on this counter. If you would like me to provide my insights on SGX stocks, please do sign up as member here!

The coverage of Q&M share price is timely as I realized that the company recently managed to turn around from years of stagnant revenue and profit. COVID-19 imploded out of nowhere in 2020 and the company rode on the wave to stage an impressive recovery. But what truly got me excited was Q&M’s stunning announcement in January 2022 to explore a proposed listing of Acumen Diagnostics on the NASDAQ stock exchange.

Q&M share price

Acumen Diagnostics is a joint venture of Q&M Dental and it researches, manufactures, sells and distributes COVID-19 diagnostic test kits, as well as provides COVID19 testing services. Question now is: what is the kind of impact that a NASDAQ listing would bring for Q&M share price?

It seems that Q&M Dental has hit the jackpot with Acumen Diagnostics. Q&M Dental recorded a record revenue and profit for FY2021 as gross profit for the COVID-19 medical laboratories rocketed nearly 20-fold from last year to hit $22.3 million. Probably because of this, Q&M Dental raised its effective interest in Acumen Diagnostics to 67% from 51% in October 2021. The strategic move was sound as I think Acumen Diagnostics could be a game-changer for the private dental healthcare group.

Acumen Diagnostics offers COVID-19 testing by polymerase chain reaction (“PCR”) for patients that require PCR test results and for travellers. It will also launch a panel of new PCR tests for infectious diseases, sepsis and cancer. The possibility to diversify its product offerings means that the business model of Acumen …

Read more

Global Testing share price (SGX: AYN) rocketed 130%

LIFETIME MEMBERSHIP On 24 February, Russia sent global markets into a devastating turmoil following the full-scale invasion on Ukraine. Yet on that fateful day, Global Testing share price stunned Singapore stock market when it took off like a rocket, surging an eye-popping 130% within a week to hit a high of $1.42. The incredible surge of Global Testing share price confounded many investors. Due to this, a Lifetime Member has requested a coverage on this interesting counter.

For background, Global Testing provides testing services such as wafer sorting and final testing for mixed-signal and logic integrated circuits to the semiconductor industry. Its testing services include test program development and conversion. In addition, they also help their customers to convert single-site testing to multi-site testing to shorter their turn around time. Being listed in SGX, the company’s main testing facilities are based in Taiwan. Its customers include Taiwan Semiconductor Manufacturing Company Limited (TSMC) and United Microelectronics Corporation (UMC).

Global Testing share price

Although Global Testing has been listed in SGX Mainboard since 2005, the market capitalization is very small – at about $43 million. The market capitalization would have been even much lesser if not for the meteoric rise of Global Testing share price lately. The total number of outstanding shares stood at just 35 million and 45% of the stakes are held by Yageo Corp, Mr Chia Soon Loi (Non-Executive Chairman of Global Testing) and Mr Chen Tie-Min (Chairman of Yageo Corp).

Due to the fact that most of the shares are held by a few major shareholders, the counter suffered from an extremely poor liquidity. Average 3-month volume amounted to just 930,000 shares. Against this backdrop, a question is whether Global Testing share price will do an AEM Holdings, which rose from the ashes like a phoenix to become a leading technology stock …

Read more

Healthway Medical share price faces another lost decade?

LIFETIME MEMBERSHIP The on-going Ukraine crisis has sent global stock markets into a devastating tailspin. The war occurs at a very bad timing as global economy is in the midst of recovering from the protracted pandemic. In this context, how will Healthway Medical share price unravel in 2022? A concerned Lifetime member has written in to enquire the lack of vitality for this counter.

Due to the request from a Lifetime Member, I am writing this article to provide my insights on Healthway Medical share price. Apart from the request, I have been wanting to cover this counter for some time because of my recent annual body check-up at one of Healthway Medical clinics.

Healthway Medical share price

For background, Healthway Medical is a private outpatient medical service provider operating more than 100 clinics and medical centres in Singapore. Within Singapore, Raffles Medical is a competitor of Healthway Medical. The difference between the two is that the former is listed in SGX Mainboard while the latter is listed in Catalist.

On 25 February, the Group announced a set of stellar financial result yet Healthway Medical share price remained moribund. Why is this so? Average 3-month trading volume amounted to just 19.75 million while 5-year Beta was 0.58. These suggested a poor liquidity for this counter.

In my opinion, the lack of market interest in Healthway Medical share price could be attributed to several factors. Looking back, the counter has endured a lost decade. In 2013, Healthway Medical share price peaked at $0.12. In the aftermath of the penny stock crash in SGX, the shares collapsed to the current levels. Due to the lack of confidence among investors in penny stocks, many investors could be giving this stock the cold shoulder. In fact, Healthway Medical share price has been trading at $0.030 to $0.035 range …

Read more

OCBC share price plunged into chaos

LIFETIME MEMBERSHIP What a bombshell revelation. On 23 February 2022, OCBC share price got ripped apart after the bank released its FY2021 financial result. It was supposed to be the day that investors pop the champagne. Instead, investors were horrified to see OCBC share price plunging by as much as 6% on that fateful day.

To rub salt into injury, OCBC share price bucked the trend of DBS and UOB shares, which increased on 23 February. This was the first time that DBS and UOB share prices rose while OCBC share price got bombed out. For years, these three counters had always moved in tandem. Evidently, investors ran for their lives, sending OCBC share price straight to the gallows.

OCBC share price

The subject of debate at here is: does the FY2021 result really justify the collapse of OCBC share price? Okay, the venerable bank missed the estimates of most analysts (including mine). But surely that doesn’t warrant the explosive meltdown of OCBC share price? We are talking about a financial institution that raked in higher net profit of $4.86 billion. If you claim that the bank suffered a financial loss over the year, I would have accepted the meltdown. But clearly, this is not the case.

In the stock market, sentiment plays an important role. The crisis of confidence in OCBC share price stemmed from several factors. Firstly, the invasion of Ukraine by Russia had rattled global stock market confidence on 24 February 2022. Global stock markets got routed and Straits Times Index fell 3.5% on that fateful day. OCBC share price was not spared from the carnage as the counter collapsed 4.5%.

In addition to the unfolding war, market reactions were adverse for OCBC share price following the release of FY2021 result, which saw net interest income dropping 2% year-on-year. …

Read more