SG Wealth Builder Special Offer

Xiaomi share price

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

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

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

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

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

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

Sembcorp Marine share price S51

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

Sembcorp Marine share price S51

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

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

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

Sembcorp Marine share price plunging to $0.05?

Sembcorp Marine share price faces takeover offer

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

SGX share price (SGX: S68) in biggest crisis

SGX share price S68

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

SGX share price S68

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

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

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

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

AEM share price AWX

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

AEM share price AWX

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

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

AEM share price rockets with Temasek Holdings!

AEM share price recovering from bloodbath

AEM share price dented my portfolio

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

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

SIA share price C6L

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

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

SIA share price C6L

SIA share price rises from ashes

SIA share price in explosive destiny

SIA share price smashed into rock

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

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

DBS Group Holdings share price (SGX:D05) in $10 billion IPO?

DBS share price

LIFETIME MEMBERSHIP It could be an event that will move Heaven and Earth, at least for DBS Group Holdings share price (SGX:D05). In a bombshell revelation, DBS CEO Piyush Gupta mentioned in the transcript of DBS second quarter 2021 conference call that the bank is looking at unlocking one of its assets, Remit, through IPO for an eye-popping $10 billion. If the plan does materialize, it will be one of the largest IPOs to grace the Singapore stock market in recent years.

In 2019, I wrote that DBS Group Holdings share price (SGX: D05) will hit $50. Though that day has not arrived, I do think that it is only a matter of time that DBS Group Holdings share price (SGX: D05) reaches this incredible milestone. On 10 August 2021, DBS Group Holdings share price (SGX: D05) hit a record $31.70 after Monetary Authority of Singapore (MAS) lifted the dividend restrictions on local banks. On the basis of its current run, it is not impossible for the counter to hit $40 by year-end if the bank continues to deliver good financial results and lists its digital assets.

DBS Group Holdings share price D05

Question now is when will CEO Piyush Gupta set fire on DBS Group Holdings share price (SGX: D05) by unleashing the Remit $10 billion IPO? It is not CEO Piyush Gupta’s style to talk up prospect of his company nor do I think that he made that comment out of jest. Most Singaporeans know that Piyush Gupta puts his money where his mouth is. His purchase of 200,000 DBS shares for $2.8 million in February 2016 was driven by his conviction that the shares were grossly undervalued. Indeed, his move was later vindicated as the DBS Group Holdings share price (SGX: D05) climbed by 100% within two years.

DBS’ plan to list …

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

AEM share price

LIFETIME MEMBERSHIP For Sembcorp Marine share price (SGX: S51), is it a case of light at end of tunnel or light from an on-coming train? Given the devastating meltdown of Sembcorp Marine share price (SGX: S51), investors can ill-afford to ignore this rhetoric. The $1.5 billion announced on 24 June 2021 had erased more than 50% from Sembcorp Marine share price, causing the counter to plunge from $0.17 to $0.08. Question now: is there any value left in Sembcorp Marine share price? Make no mistake, sometimes cheap does not mean value.

Sembcorp Marine share price S51

Investors who had subscribed to the 2020 and 2021 rights issues should be betting on the recovery of Sembcorp Marine share price (SGX: S51). While that day may eventually come, it could be a long wait. To put things into perspective, the oil and gas industry suffered a severe downturn since 2015 due to the collapse of oil prices and emergence of US’ shale oil. The pandemic arrived to cause a protracted downturn for Sembcorp Marine. In addition, the long-term demand for crude oil is likely to drop as countries commit to the United Nations Framework Convention on Climate Change (UNFCCC) pact signed in 2015.

Looking at the financial track record, the road ahead will be challenging for Sembcorp Marine share price (SGX: S51). Due to the series of “unfortunate events” in recent years, the Group’s financial performance had been affected, resulting in pre-tax losses of $101 million in FY2018, $177 million in FY2019 and $671 million in FY2020. The Group also recorded a substantial net loss attributable to owners of the Company of $647 million for 1H2021. Barring a miracle turnaround, the loss for FY2021 should be double that of FY2020.

Needless to say, the crisis of confidence for Sembcorp Marine share price (SGX: S51) centred on the …

OCBC share price recovers from Dr Mahathir effect

OCBC share price

LIFETIME MEMBERSHIP It seems that OCBC share price has a strange affinity with Dr Mahathir. When Mahathir became the Prime Minister of Malaysia for the second time in May 2018, it promised to be a political fairy-tale that will be remembered for generations to come. But surely no one in his right mind could have predicted the kind of impact it would have on OCBC share price, which tumbled from a high of $13.65 in May 2018 to a low of $10.40 in October 2018.

OCBC share price

Even more bizarrely, when Dr Mahathir announced his resignation on 24 February 2020, OCBC share price crashed from $11.00 in February 2020 to a low of $8.35 in March 2020. For unknown reasons, it appears to me that Dr Mahathir has that TVB drama “Ting Hai” stock market effect, at least for OCBC share price. Although I am not exactly sure about the correlation between OCBC share price and the venerable leader, one thing for sure is that Dr Mahathir’s B40 policy has a massive impact on OCBC’s Great Eastern Holdings.

When Dr Mahathir returned to power in 2018, one of his many initiatives was the B40 Health Protection Fund, which was meant to address social welfare protection coverage for the lower income group in Malaysia. Great Eastern Holdings, the crown jewel of OCBC Bank, was affected by this policy as the insurer was required to contribute a whopping RM2.0 billion in lieu of the local shareholder requirement imposed on its subsidiary, Great Eastern Life Assurance (Malaysia) Berhad.

In my view, it is not uncommon for Singaporean companies to “pay a price” for doing businesses in foreign countries. Singtel’s billion dollar fine by India Supreme Court in 2019 was a classic example. Nevertheless, the RM2.0 billion donation by Great Eastern had weighed on …

Keppel DC REIT (SGX: AJBU) share price in mystery slump?

Nanofilm share price

LIFETIME MEMBERSHIP Keppel DC REIT (SGX: AJBU)’s ascend to the Straits Times Index (STI) has been the stuff of legend in SGX mainboard. Debuted in SGX only in 2014, the data centre REIT knocked the former CapitaLand Mall Trust off the pedestal in October 2020. That spectacular feat sent Keppel DC REIT (SGX: AJBU) share price flying to a record high of $3.04. Since then, the stellar form appears to lose plenty of steam in recent months. What on earth has happened?

Keppel DC REIT AJBU

A Lifetime Member has written in to request for an explanation of the recent downtrend of Keppel DC REIT (SGX: AJBU) share price. If you are keen on coverage of other stocks, do sign up as member! For the longest time, I have been contemplating to invest in an S-REIT with special focus in data centres. Hence, I have been monitoring Keppel DC REIT and Mapletree Industrial Trust (MIT). Both counters are majority-owned by Temasek Holdings and listed in the Straits Times Index (STI). Between the two players, Keppel DC REIT stands out for being a “pure-play” data centre REIT but the acquisition of M1 started to complicate things.

Year-to-date, Keppel DC REIT (SGX: AJBU) share price has slumped by 9.32%. Comparatively, its peer Mapletree Industrial Trust share price increased 1.74% on a year-on-year basis. Indeed, the subpar form of Keppel DC REIT (SGX: AJBU) is a concern among many investors. But to be fair to the S-REIT, the counter is still trading at 25% above the levels of pre-pandemic. Looking back, the onset of pandemic has triggered a surge in e-commerce activities and digital transformation of businesses. As a result, Keppel DC REIT (SGX: AJBU) rocketed to high heavens in 2020.

Then again, I have always stressed that what goes up must surely come down. …

Wilmar share price plunged 25%

AEM share price

LIFETIME MEMBERSHIP In my last article on Wilmar share price (20 June), I wrote that this counter could face huge turmoil in the short-term. Indeed, Wilmar share price continued to meltdown since 20 June, falling from $4.55 to the current $4.16. At current trading level, Wilmar share price is 25% off the 5-year high of $5.57 seen in February. Should investors run for their lives?

Wilmar share price

A Lifetime Member has written in to request for an explanation of the downtrend Wilmar share price. If you are keen on coverage of other stocks, do sign up as member! 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 and I exited at $5.20. While I did not exit at the highest point of $5.60, I have no regrets selling my Wilmar stocks. In life, you can never sell at the highest price. I am happy as long as I made decent profits. Although I am not vested in this counter any more, I am still bullish about Wilmar share price in the long-run because of the business strategies undertaken by the management.

The current train-wreck for Wilmar share price may be puzzling and gut-wrenching for many retail investors. After all, the Group has just released a set of stellar 1HFY2021 that saw net profits rocketed 23% to US$751 million. It certainly seemed that nothing can go wrong with Wilmar share price. However, I have always cautioned that the big boys call the shots in Singapore stock market. This is especially so for Wilmar share price as the counter is one of the Straits Times Index (STI) components. Due to this, Wilmar share price is very sensitive to the movement of institutional fund flows.

According to data …

OCBC Share Price (SGX: O39) in Ring of Fire

OCBC share price

LIFETIME MEMBERSHIP What an ambush! It seems to me that the big boys had staged a sneaky ambush on OCBC share price (SGX: O39). From a high of $12.46 on 10 August, OCBC share price collapsed by 7.3% to reach a low of $11.55 on 27 August. The spectacular fall of OCBC share price within the span of two weeks certainly caught many investors by surprise. To make matters worse, the correction of OCBC share price was the worst among the three banks (DBS shares fell by 5.0% while UOB shares fell by 4.7%).

Looking back, the lifting of dividend restrictions by the Monetary Authority of Singapore (MAS) had provided plenty of fireworks for all three bank stocks, including OCBC share price. Subsequently, the OCBC’ stellar 1HFY2021 financial result pushed OCBC share price to a high of $12.46. Then again, Man proposes, God disposes. Despite the tailwinds, the big boys decided to pull the rug on OCBC share price.

OCBC share price

For four consecutive weeks, OCBC has been in the top ten institutional net sell list. In the week of 26 July, big boys net sell $30.5 million worth of OCBC shares. In the week of 2 August, $52.8 million worth of OCBC shares were net sold. In the week of 9 August, $74.4 million of OCBC share were net sold. This is also the week that saw OCBC share price fell the steepest – from $12.46 to $11.90. In the week of 16 August, the selling continued, with $58.2 million shares being net sold.

The embattled OCBC share price triggered the management to embark on a series of share buybacks from 17 to 25 August. As of 25 August, a total of 11,883,100 of OCBC shares had been purchased from the market. In spite of the massive share buybacks, …

Your company is a tool for building wealth: Learn how to achieve financial success

Building wealth and achieving financial freedom is a good way to increase the quality of your life. Money can’t buy happiness, but that doesn’t necessarily mean that materialism has a negative effect on overall well-being. Just think about it. When you have money, you derive satisfaction from other areas of your life, such as family life, health, social life, and so on. If you don’t lose sight of the things that matter, you can live a better life.

personal loans https://smarter.loans/personal-loans/

Image source: https://www.pexels.com/ro-ro/fotografie/aur-auriu-avere-bani-128867/

As a business owner, you could accumulate wealth or ramp up risk. You’re in the business to make a profit, so you should be enjoying the benefits of owning a successful company. How do you build a fortune? If you really want to know, keep on reading. In what follows, we’ll explore the best ways to achieve financial success and achieve your business objectives.

Don’t view your company as your job

Starting a company, especially a start-up, requires hard work and determination. The pay is low unless you’re one of the lucky ones who meet with success. To attain financial independence, you must think and act strategically. One of the biggest mistakes you can make is to treat your company as a job. Break outside of your role for a little bit and allow the business to run on its own. The results might just surprise you. The sooner you change your way of thinking the better.

If you approach the company as a job that helps you earn a little money, it won’t be anything more than that. You have to be fully committed to the business and give your all to drive success. Think about the company as part of your financial plan. How much time and capital should you invest? What is …

Singtel share price seeing daylight?

Singtel share price

LIFETIME MEMBERSHIP For Singtel share price, it should be light at end of tunnel instead of light from an on-coming train. Of course, long-term investors could be forgiven for thinking otherwise. After all, Singtel share price has endured so many false dawns in recent years that investors must be wondering when will Singtel share price ever become great again.

For sure, Singtel share price has lost that aura of invincibility. Perhaps the billion dollars penalty imposed by Indian Supreme Court for its subsidiary, Airtel, had knocked the wind out of Singtel share price. Or maybe the cut in dividends had demolished investors’ confidence in Singtel share price. Whatever the case it may be, the counter is a shadow of its former self.

Singtel share price

Singtel share is extremely popular among Singapore investors as many retirees depend on the dividends for passive income. So you can imagine the shockwaves for Singtel share price when the telco announced an interim dividend of just 5.1 cents in November 2020. That dividend was the lowest in a decade and sent Singtel share price to the rock bottom. To be exact, all hell broke loose when Singtel share price crashed to record low of $2.00 on 2 November 2020. That was really the darkest chapter for Singtel share price.

Subsequently, the digital bank license win restored some level of confidences among investors. My entry price for Singtel share price was $2.60. Since the onset of the pandemic, Singtel share price had never crossed this level. Now that our population has reached a high level of vaccination and an endemic is in sight for Singapore, I do think that the worst is over for Singtel share price. Furthermore, with a new CEO and a strategic reset in the businesses, the growth narrative has changed for Singtel. In this …

Nanofilm (SGX: MZH) share price in crisis

Nanofilm share price

LIFETIME MEMBERSHIP What a devastating plunge! On 16 August, Nanofilm share (SGX: MZH) crashed 30% following the double bad news concerning the resignation of Chief Operating Officer (COO) and a set of financial result that fell short of analysts’ expectations. The swift meltdown of Nanofilm share price certainly raised many eyebrows as this counter just smashed $6.50 on 26 July. How will Nanofilm share price unravel in the coming weeks?

Back in March 2021, I have written an article that stated Nanofilm share price is worth $4 only. Even though Nanofilm share price has reached my target price, I will not enter this counter at the moment because I do not invest in a company that just got listed within five years. In my opinion, the current turmoil of Nanofilm share price is largely due to the recent departures of former CEO Lee Liang Huang and COO Ricky Tan. So until the day that Nanofilm addresses this issue, it is too early to claim that Nanofilm share price will see bottom soon.

Nanofilm share price

It is certainly not business as usual when two senior managers departed from a company within a short span of time. Dr Shi Xu, the founder and Executive Chairman of Nanofilm, has been appointed as the interim CEO. Given that Nanofilm has just been listed in October 2020, the departures of the former CEO and COO caused a crisis of confidence in Nanofilm share price.

To rescue Nanofilm share price, the management went on the offensive and conducted shares buybacks. In total, 3.04 million of shares had been bought back at this point of writing. It remains to be seen whether the shares buybacks will provide the kind of support needed for Nanofilm share price at this moment. This is because investors must be wondering if Nanofilm …

DBS Group Holdings share price in China war

DBS Group Holdings share price

LIFETIME MEMBERSHIP It seems that DBS Group Holdings share price may have peaked. During the report of 1QFY2021 financial result, DBS Group reported first quarter net profit doubled from the previous quarter. That feat set DBS Group Holdings share price on fire. However, recent 2QFY2021 financial revealed 15% decline of net profit on quarter-to-quarter basis. In this regard, is this the end of an era for DBS Group Holdings share price?

Make no mistake. The local bank is not facing any crisis. In fact, DBS Group is still raking in healthy level of profit. Year-to-date, DBS Group Holdings share price had also increased by a whopping 21.35%. Notwithstanding these, it should be noted that the powerful surge of DBS Group Holdings share price was built upon the bank’s recovery from the low “base effect” seen in the first half of FY2020 – the onset of the pandemic.

DBS Group Holdings share price

As we enter the second half of FY2021, that “base effect” will gradually reduce. Moving forward, investors will be examining how the bank fares in comparison to pre-pandemic. Against this backdrop, whether DBS Group Holdings share price could sustain its bullish run in the coming months will be a big question mark.

Just like OCBC, DBS’ first half stellar performance was largely due to lower amount of allowances, which dropped to just $89 million in comparison to the staggering $1.94 billion in last year. The lower allowances enabled DBS Group to clock in higher profits. As we shift toward endemic, the level of allowances will likely to continue falling.

Of more concern for investors should be the dismal performance of net interest income, which fell 12% year-on-year to $4.2 billion. The low interest rate environment continued to roil top-line from the interest income. If not for the strong performance from its …

OCBC share price mumbo jumbo with “Golden Triangle”!

OCBC share price

LIFETIME MEMBERSHIP It’s official! On 28 July, Monetary Authority of Singapore (MAS) lifted the dividend cap on Singapore banks. The lifting of dividend cap set OCBC share price on fire. From 28 July, OCBC share price surged from $12.07 to a high of $12.46 on 10 August. On the basis of the current run, can OCBC share price hit $15 by end of the year? While OCBC share price has taken some knocks following ex-dividend on 13 August, the catalysts could drive OCBC share price to new heights in the coming months.

OCBC share price

OCBC share price nearly hit $14 in 2018. That was the year in which the bank recorded full-year net profit of $4.5 billion. Fast forward to FY2021, the first half net profit had already hit a high of $2.75 billion, surpassing the $2.3 billion profit in 2018. Assuming OCBC recorded $5.2 billion earning for full-year, the annualized EPS could be $1.15. Applying multiple of 13, my target OCBC share price is about $15.

Apart from the lifting of dividend cap by MAS, another tailwind that will aid OCBC share price is the shares buybacks by the bank. 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. As of 17 June, a total of 9.08 million of shares had been purchased from the market. For perspective, both DBS Group and UOB have not conducted any shares buybacks in 2021.

Incidentally, the share buybacks also occurred at a time when Helen Wong took over as the Group CEO. With a recovering OCBC share price, it seems that the new CEO started her tenure at a positive note. …

AEM share price rockets with Temasek Holdings!

AEM share price

Chinese New Year Special Offer! On 6 August 2021, AEM share price staged a return of the prodigy. The night before, the management had released a set of dismal 1HFY2021 financial result that saw revenue plunging by 30% and net profit collapsing by 46% on year-on-year basis. To be frank, I could not sleep well that night and was expecting AEM share price to plummet the following day. I was actually boiling inside, not at the poor result because I was expecting the financial result to be disappointing. To be exact, I was angry at the management for the lack of traction in securing of new major customers. But non-executive Chairman Loke Wai San, being Loke Wai San, managed to outfox everyone once again.

AEM share price

When companies announce financial results in the middle of the night, it can only mean that the result is disappointing. Indeed, this has been the case for AEM. Then again, drawing from the experience of the 1QFY2021 result saga, Loke Wai San probably knew that he could not afford to let AEM share price collapses again. Nonetheless, surely nobody could have predicted the bombshell revelation of the entry of Temasek Holdings. Honestly, I must really hand it to Loke Wai San for pulling this off!

AEM management is known to time its sales guidance and positive announcements to perfection. But the shares placement of 26.8 million to Temasek upended the entire market. Investors were bracing for the free fall of AEM share price in the early morning of 6 August. Instead, they were kept in deep suspense by the surprise trading halt. Subsequently, the shock announcement of the $103 million investment from Temasek Holdings sent AEM share price rocketing from $3.95 to a high of $4.20.

In return for the investments, Temasek Holdings will nominate Russell …

Keppel Corp share price firing on all cylinders!

AEM share price AWX

Chinese New Year Special Offer! On 2 August 2021, Keppel Corp stunned Singapore investment community with the announcement of the $2.2 billion strategic acquisition of Singapore Press Holdings ex-Media. Whilst the media segment had been carved out, the destiny of the remaining assets of SPH remained a mystery until the fateful announcement. Will the latest turn of event throw a spanner in the works for the recovery of Keppel Corp share price?

Keppel Corp share price turned on the style following report of a net profit amounting to $300 million for half year ended 30 June 2021. Notwithstanding the strong results, what truly turbocharged Keppel Corp share price was the surprising bonanza cash dividend of 12.0 cents, which is significantly higher than 2020’s interim dividend of 3.0 cents and also higher than the interim dividend of 8.0 cents declared in 2019.

Keppel Corp share price

With the proposed acquisition of SPH ex-Media, it is evident that Keppel Corp management is very determined to execute one of its much-touted Vision 2030 – recycling of assets to generate cash. The biggest components of Vision 2030 are to become asset-lite and pivot in renewable energy sector. To do so, Keppel Corp needs a mega asset monetization programme. The monetization initiative is well-underway but the assets from SPH is going to provide more platform for recycling. Hence, I do think that in the next few months, Keppel Corp share price will stay bullish.

Note that this is an opinion article and not meant to be a financial advice. Please do your due diligence or engage financial advisors before investing in the stock market. I am not vested in Keppel Corp at the moment. Whether Keppel Corp share price will surge or collapse has no impact on me. Thus, this article is not meant to induce readers to make …

China stock market bloodbath

SGX stocks

Chinese New Year Special Offer! Many investors thought it is light at the end of tunnel for China stock market. But as it turned out, the light was actually from an on-coming train instead. The recent crackdown by Chinese authorities on education and technology companies had wiped off about US$1 trillion off Chinese shares in the past week. The speed and magnitude of the China stock market correction had caught most investors flat footed. Is it really the end of the road for China stock market?

China stock market

Back in November 2020, the Chinese authorities had torpedoed Alibaba’s Ant Group IPO. Since then, Alibaba’s share price had never really recovered from that devastating blow, falling from the high of US$307 to the present US$189. So for those who think that the current correction in China stock market represented a good opportunity for bargain hunting, it is better to think twice. The fate of Alibaba share price means that investing in China stock market is going to be very, very challenging.

China stock market sees red

Following the Ant IPO saga, the important messaging from China is [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?

Chinese New Year Special Offer!

You can get full access to all the articles and enjoy the benefits of SG Wealth Builder Membership.

The full benefits and privileges of SG Wealth Builder Membership:

  1. Access to the latest premium articles of SG Wealth Builder
  2. Email notifications of latest blog articles
  3. Request for coverage on stocks, insurance and other personal financial topics
  4. Comment in articles

Note: After payment is made, you will be prompted with registration

ESR REIT share price rallied with GIC

AEM share price

Chinese New Year Special Offer! Since May 2021, ESR REIT share price staged a rebound following acquisition of a 10% stake in ESR Australia Logistics Partnership (“EALP”), which is 80% owned by Singapore sovereign wealth fund, GIC. For a long time, I have been following developments of industrial S-REITs that are majority-owned by Temasek Holdings, such as Ascendas REIT and Mapletree Industrial REIT. The recent bullish form of ESR REIT share price led to an SG Wealth Builder member requesting for a coverage on this counter.

Singapore has two sovereign wealth funds – Temasek Holdings and GIC. While Temasek Holdings has stolen the limelight through its various investments in finance, industrial, technology and commodity firms, GIC tends to form partnerships with private equity firms to invest in overseas real estate assets. The recent aggressive moves by GIC to acquire industrial assets with ESR could have a major bearing on ESR REIT share price in the years to come.

ESR REIT share price

Before touching on the outlook of ESR REIT share price, let’s cover some background on this industrial S-REIT. The sponsor of this S-REIT is ESR, which was formed in 2016 through the merger of Japan’s Redwood Group and Chinese e-Shang, co-founded by private equity firm Warburg Pincus in 2011. For this reason, ESR stands for e-Shang Redwood. ESR was listed in Hong Kong stock market in 2019 and GIC owns 5.06% stake as of 31 December 2020.

Local investors may not have heard of ESR REIT prior to 2017. This is because the sponsor (ESR) formed the S-REIT through a “back-door” approach. In January 2017, ESR acquired an 80% stake in the former Cambridge Industrial Trust, which was sold by National Australia Bank and Oxley Global. Following the acquisition, ESR rebranded Cambridge Industrial Trust to ESR REIT.

Usually, I am …

Mapletree Logistics Trust share price (SGX: M44U) in wonderland

AEM share price

Chinese New Year Special Offer! What an impressive run for Mapletree Logistics Trust share price! From $1.78 in March 2021, Mapletree Logistics Trust share price turned on the style to reach $2.10 lately. This represented an increase of 18% within four months. The breath-taking form of Mapletree Logistics Trust share price certainly caught many investors by surprise as this S-REIT is behaving more like a growth stock instead of a dividend stock.

Admittedly, I did not manage to catch Mapletree Logistics Trust share price when it bottomed in March. Instead, I bought 40,000 shares at an average price of $1.965. Given the recent bullish run of Mapletree Logistics Trust share price, I decided to cash out this counter at $2.12 per share. Excluding the distributions, I had made a tiny profit of $6,200. The profit represented 15.5% within the span of three months.

Mapletree Logistics Trust share price

The decision to exit this counter is mainly because Mapletree Logistics Trust share price had hit my exit target price. I am not exactly a buy-and-hold type of investor. Usually, I set entry and exit prices for my investments. Fundamentally, there is nothing wrong with Mapletree Logistics Trust as the business outlook remains strong and the management is growing the S-REIT well. Nonetheless, the buoyant run of Mapletree Logistics Trust share price provided a good opportunity for me to cash out.

Surprisingly, it has not been exactly a smooth ride for Mapletree Logistics Trust share price in 2021. The counter crashed from $2.00 in January to a low of $1.78 in March. To be frank, I could not really pin down the reasons for the correction. Furthermore, nobody knows for sure when a stock correction will cease. For fear of catching a falling knife, I did not enter this counter until Mapletree Logistics Trust share price …

Sembcorp Marine share price plunging to $0.05?

Sembcorp Marine share price

LIFETIME MEMBERSHIP Sembcorp Marine share price became the talk of the town. And for all the wrong reasons. The $1.5 billion rights issue had led to a devastating meltdown in Sembcorp Marine share price, which plunged from $0.19 to the current low of $0.11. The correction amounted to about 42% across the span of nearly a month. Given the horrendous train-wreck of Sembcorp Marine share price, shareholders have every right to be angry with the management.

From a blue chip among the prestigious Straits Times Index (STI) in 2016 to a cheap penny stock in 2021, Sembcorp Marine share price has become one of the biggest falling stars in SGX. How this counter managed to land in such a dismay state is beyond my understanding. But I reckon what riled shareholders the most is that 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.

Sembcorp Marine share priceAdmittedly, I have a special interest in Sembcorp Marine share price because I made a successful contra 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.

Incidentally, on the day that Sembcorp Marine made the rights issue announcement (24 June), I was seriously pondering to take a significant position in this counter the night before. Boy, was I glad to escape the disaster! …

AEM share price recovering from bloodbath

AEM share price

LIFETIME MEMBERSHIP  In the blink of an eye, it had been two months since the capitulation of AEM share. 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. Since that fateful collapse, AEM share price returned to form lately, hitting $4.18 on 15 July.

The return of AEM share price came at a time when the Group is about to announce the 1HFY2021 financial result. Investors must be holding their breath on the business performance of AEM. More importantly, investors wanted to know the progress of the “deep technical engagements with 10 out of the top 20 semiconductor companies, spanning mobility, memory, and high-performance computing”.

AEM share price

The securing of even one of the top 20 semiconductor companies would be a significant breakthrough for AEM share price. For years, AEM had relied on Intel for revenue source. To expand the customer base, the management had embarked on a slew of acquisitions in recent years. So far, seven technology companies were acquired since 2017 but sad to say, these acquisitions provided minimal impact to the revenue and profit. Evidently, AEM desperately needs a new marquee customer, one that could propel AEM share price to another level.

Interestingly, the 22 June announcement of the US$4 billion expansion of GlobalFoundries in Singapore had ignited the explosive run of AEM share price, which surged from $3.70 to the high of $4.18. It is not clear to me how the expansion of GlobalFoundries would benefit AEM because I doubt the two companies had any business dealings. Even though there is speculation that Intel (AEM’s purported biggest customer) is exploring the acquisition of GlobalFoundries, this is fundamentally …

Singtel share price needs StarHub merger

Singtel share price

LIFETIME MEMBERSHIP When will Singtel share price ever see daylight? In my previous article, I shared that Singtel share price would blow up in pieces following the release of full-year financial result for FY2020. Indeed, Singtel share price turned bearish for the past three months, falling from $2.60 in April to a low of $2.25 in early July. To halt the slump in Singtel share price, the management announced a new strategic direction to capture growth on 27 May.

To be fair to the management, the current state of Singtel share price should not be attributed to the new Chairman nor the new CEO. They have inherited a company that had seen growth under severe pressure due to intense competition in its regional associates’ businesses. The pandemic has brought even more headwinds and disruptions for Singtel. Against this backdrop, the strategic reset announced on 27 May is an attempt to revive the long-term outlook for Singtel share price.

Singtel share price

In the strategic plan, Group CEO Yuen Kuan Moon outlined three new growth pivots – harnessing 5G, repositioning NCS for overseas ICT expansion and unlocking value of infrastructure assets. In my opinion, the strategic reset represents a major shift for Singtel’s growth strategy. Although these pivots could potentially restore Singtel share price back to its hey-days, there are two significant items that are glaringly missing from CEO Yuen’s grand vision.

Singtel share price to blow up in pieces?

Singtel share price turning the tide

Singtel share price sinks or swims with digital banks

Singtel share price in state of emergency

The first major shift for Singtel is the change in the mandate to be a regional telco powerhouse. For the past 30 years, Singtel share price had been one of the leading lights of SGX because of its dominant telco position in …

Sembcorp Marine share price faces takeover offer

Sembcorp Marine share price

LIFETIME MEMBERSHIP It is a battle that Sembcorp Marine can ill-afford to lose. On 24 June, the announcement of the bombshell $1.5 billion rights issue led Sembcorp Marine share price to yet another dark chapter. Over the course of two weeks, Sembcorp Marine share price plunged by a staggering of nearly 35%. Given that the latest rights issue price is at an abysmal $0.08, it is reasonable to expect Sembcorp Marine to continue its disastrous run in the coming weeks.

The sentiments for Sembcorp Marine share price are so toxic that not even the news of the merger with Keppel Offshore Marine (KOM) can halt the stock slump. The news of the $230 million contract win from Brazilian shipyard, for modification work to be completed on the Floating Production Storage and Offloading (FPSO) P-71 oil and gas vessel, had temporarily provided some respite for the siege on Sembcorp Marine share price.

Sembcorp Marine share priceNonetheless, the contract win is not going to move the needle for Sembcorp Marine as the oil-rig builder has revealed that the root cause for its current crisis is not the lack of revenue from new contract wins. Rather, COVID-19 has caused the deferral of deliveries and payments by existing customers. This issue had resulted in a significant draw on the Group’s working capital position. For this reason, the management had no choice but to make a cash call to shareholders, causing Sembcorp Marine share price to plunge into a devastating quicksand.

Despite the massive chaos, it is certainly not the end of the road for Sembcorp Marine share price. This is because the rights issue had triggered a mandatory takeover offer under Monetary Authority of Singapore (MAS) Takeovers and Mergers Code. Under Rule 14:

Mandatory offers are triggered, except with the Council’s consent, where:-

(a) any person

MIT share price riding data centre boom

MLT share price

LIFETIME MEMBERSHIP For the longest time, I have been contemplating to invest in an S-REIT with special focus in data centres. Hence, I have been monitoring Keppel DC REIT and Mapletree Industrial Trust (MIT). Both counters are majority-owned by Temasek Holdings and listed in the Straits Times Index (STI). Between the two players, I feel that the growth potential for MIT share price is higher due to recent strategic moves by the management.

In 2019, the Singapore government imposed a moratorium on new data centres. Being a land scarce country, there is a lack of land to accommodate the rapidly growing demands for data centres. In addition, data centres consume huge amount of energy and require energy-efficient cooling systems. For these reasons, data centre players like Keppel DC REIT and Mapletree Industrial Trust look to overseas for data centre acquisitions.

MIT share price

Between the two S-REITs, it seems to me that MIT’s management decided to go on shopping spree. In September 2020, MIT completed the acquisition of the remaining 60.0% interest in 14 data centres located in the United States for about $293 million. And in March 2021, MIT completed the acquisition of a data centre in Virginia, United States for about $283 million. Then in May 2021, MIT announced the acquisition of 29 data centres in United States. The slew of acquisitions led to several round of equity fundraising, thereby weighing on the MIT share price for the past one year.

Notwithstanding the above, MIT share price had been pretty stable year-to-date, declining by a mere 2.43%. Question now is whether the recent mega acquisition of 29 data centres located in the United States will change the game for MIT share price. Given the massive total acquisition cost of $1.82 billion, it had better be. To fund the acquisition, the …

Keppel share price aiming for $7

Keppel share price

LIFETIME MEMBERSHIP Three cheers for Keppel share price! On 24 June, Keppel announced the signing of non-binding MOU with Sembcorp Marine with a view of combining Keppel Offshore & Marine (KOM) and Sembcorp Marine. Rumours of a merger between the two top dogs in the oil and gas sector had been swirling for years. Many investors had expected the deal to be the perfect catalyst for Keppel share price because of the economy of scale and operating synergies.

Indeed, market reactions had been positive for Keppel initially. Keppel share price surged from $5.10 on 24 June to a high of $5.60 on 28 June. Within a span of just four days, Keppel share price increased by 10%. In my previous article, I wrote that my target Keppel share price in 2021 was $5.50. Now that the counter has crossed this level, I do think that $7 could be the next attainable milestone for Keppel share price in 2021.

Keppel share price

The $5.50 share price price level was previously based on the assumption that Keppel could make net profit $500 million for the full-year in 2021. Incidentally, the 24 June announcement revealed that Keppel will receive shares in the new listed company and a cash consideration of up to $500 million. Given that the Group is also selling its legacy rigs to a separate “Asset Co”, the slew of divestments may propel Keppel share price to $7 by the end of the year.

Investors will also recall the partial offer of Keppel shares at $7.35 made by Temasek Holdings back in 2019. Although Temasek Holdings had withdrawn the partial offer in last year, it is clear that the fair value of Keppel share price should be around $7 or thereabout.

Keppel share price in explosive destiny

Keppel share price plunged to

Sembcorp Marine share price collapsed

Sembcorp Marine share price

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 …

Sembcorp Marine share price to sink or swim?

Sembcorp Marine share price

LIFETIME MEMBERSHIP BREAKING NEWS: ON 24 JUNE, BOTH KEPPEL & SEMBCORP MARINE CALLED FOR TRADING HALT. GIVEN THE POTENTIAL VOLATILITY OF KEPPEL AND SEMBCORP MARINE SHARE PRICE, INVESTORS SHOULD TRADE WITH CAUTION.

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?

Sembcorp

Biggest myths about CPF Nomination

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, …