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.

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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.

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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.

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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.

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OCBC share price in perfect storm

Lifetime Membership 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.

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DBS Group Holdings faces Asia Financial Crisis 2022?

Lifetime Membership 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.

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Grab share price crashed 80%

Lifetime Membership 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.

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SPH REIT to merge with MPACT or CICT?

Lifetime Membership 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.

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Keppel DC REIT in turbulence

Lifetime Membership 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.

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