Author: 10% Per Annum

Take Analyst Reports with a Pinch of Salt

I have always maintained that analyst reports are important references for investors. They contain critical information that the average investor would not have access to, such as results from site visits and insights derived from management interactions. However, for all the value that an investor can derive from analyst reports, I recommend to take them with a pinch of salt. While analysts are indeed professionals, that does not preclude them from mistakes. Occasionally, analysts might even be guilty of severe conflict of interests (as NRA Capital showed with 1MDB here). I will use Japfa as an example to illustrate...

Read More

Value Investing – learning from OKP’s flyover collapse

Who is OKP? OKP Holdings Limited is a company listed on Singapore Exchange. While the company also dabbles with property development and investments, their primary business remains public sector infrastructure construction and civil engineering. How has OKP performed?   Source: Yahoo Finance   OKP’s share price has performed admirably in the past 2 years, surging 126% from S$0.19 to S$0.43 before the fall in share price after the incident. Indeed, the investment thesis for OKP was rather straightforward. Singapore’s infrastructure demands are growing steadily and firms that win tender do not have to worry about receivables. When we consider...

Read More

7 reasons why HRnetgroup is on my watchlist

HRnetgroup is a recent IPO on the Singapore Exchange which officially begun trading on June 16. Since then, their share price had faced unrelenting downward pressure. Despite repeated purchases by the Stabilising Manager, their share price had fallen below the IPO price of S$0.90. Source: SGX Company Announcements   Declining share price aside, HRnetgroup actually runs a very decent business. As with all decent businesses, I would be happy to invest when the price is attractive enough. Here are 7 reasons why it currently sits on my watchlist: 1) Strong Track Record of Growth Source: HRnetgroup Prospectus 2) Resilient...

Read More

Book Review: 5 takeaways from Joel Greenblatt’s Little Book that still Beats the Market

I have not really been posting as regularly as I would have liked this month, simply because there is little investing action to speak of. This is primarily down to 2 reasons: 1) I am super busy (and a little stressed) at work as I have to cover for a couple of my senior teammates who are on block leave. 2) In order to achieve my portfolio re-balancing goals (here), I have to pretty much sell to buy (and erm, I haven’t actually sold anything since). Nonetheless, I have managed to finish my first book since Peter Lynch’s double...

Read More

Tech sell-off exposes fragile manufacturing bull

It was just last Sunday when I blogged about the fact that Singapore’s SGX often exhibits strong correlation with United States’ markets (here). Last Friday’s tech sell off on US’s markets have demonstrated the point right smack on cue. For the uninitiated, while Nasdaq and NYSE have continued to perform admirably, there was a widespread fall in tech stock prices. Reasons attributed to the loss includes Goldman’s unfavorable report, Apple’s new Iphone using a slower processor and profit taking, none of which were compelling fundamental explanations. The losses of some tech stocks are illustrated below. Source: Google Finance, compiled on...

Read More

Thoughts on US Macro and Portfolio Balancing

It has been some time since I last posted as I was tied up with work and my (very slack) CFA 2 preparations. With CFA 2 exam now done and dusted, I am looking to spend more of my free time on my hobby – investing and growing my portfolio. While I have not been researching on any counters during these 3 weeks, I have continued to monitor the macro economy. Here are some developments that I feel are rather interesting:   DJIA and S&P500 continue to hit new highs Soure: Barrons It seemed just a while ago when...

Read More

Cogent Holdings – Growth Story Continues

Cogent Holdings is another firm that I had not written about for 2 consecutive earnings release. Given that the investment thesis was largely built on growth, it is high time to monitor their growth momentum. Interested investors can find their latest Q1’17 earnings here. Revenue   While growth has continued, top line growth rate has actually declined slightly.   Warehousing, Container and Property Management has been the main growth driver on an absolute basis. Given that the gantry crane on top of Cogent 1 and the Jurong Island container depot are now both fully operational, I expect the trend...

Read More

Keong Hong 1H’17 – 3rd Pillar to Strategy Introduced

Keong Hong recently released their 1H’17 earnings (here). Seeing that they have released 2 earnings reports since I last wrote on them, I thought it would be good to document some updates given that Keong Hong is an extremely dynamic company. Keong Hong’s 1H’17 earnings results have been largely in line with my expectations and therefore this update will be focused on their strategy execution. Since my last review (here), Keong Hong had been executing on a third pillar for growth: A) Enter into Joint Ventures with 15%-20% stake and as the main contractor for property developments. This enables...

Read More

12 things I learnt from Berkshire Hathaway 2017 AGM

Just as I did last year (here), I took some time out to watch Berkshire’s AGM hoping to glean some nuggets of wisdom from Warren Buffett and Charles Munger. It amazes me how Buffett and Munger are still learning and adapting their methods at the combined grand old age of around 180! Again, those who wish to view the whole AGM can do so here. ——————————————————— 1) Driverless Automotives are a threat to Berkshire’s business This is true both for Auto insurance (assuming driverless automotives are safer) and Rail operations (as driverless trucks become more cost-effective substitutes). 2) Buffett...

Read More

New Counter: InnoTek Ltd

Innotek was brought to my attention by a friend of mine. The story is pretty similar to that of Valuetronics – a turnaround amidst this tech manufacturing bullishness permeating through SGX. With the purchase of Innotek, I have hit my target of 8 counters and have officially ran out of cash. As such, I do not expect to announce any further portfolio additions for the coming months. Equity: InnoTek Ltd (SGX: M14) Business: Electronic Equipments Markets exposed: Asia Pacific Stock exchange: SGX Purchase price: 0.375 (Cum Dividends) Purchase month: April 10% per annum thesis:  Innotek is a turnaround similar to Valuetronics....

Read More

Kingsmen and Pico – Same Industry, Different Fate

Kingsmen (SGX:5MZ) and Pico (HKG:0752) are both widely recognized as leaders of Asia Pacific’s corporate and events marketing field. However, these 2 firms have experienced vastly different fate in recent years. Pico Up, Kingsmen Down   Source: FT Markets Fundamentally, Pico has reported increased yearly net income since 2013. In contrast, Kingsmen’s income has been stagnating since 2012 before suffering a big dip in 2016. To make matters worse, Pico has outperformed Kingsmen on all measures of returns efficiency.   Source: Google Finance, 2012 till date Over the course of the long term, share prices inevitably collapse in line...

Read More

New Counter: Valuetronics

Given that Keong Hong’s share price has taken off, I have been spending my time looking at other potential counters to invest money earned from my sale of Keppel T&T’s stock. Happy to announce a new purchase this month. Here are some of my considerations – Equity: Valuetronics (SGX: BN2) Business: Electronic Equipments Markets exposed: America, Europe, Asia Pacific Stock exchange: SGX Purchase price: 0.765 Purchase month: April 10% per annum thesis:  Valuetronics is a turnaround that is now poised to be a fast grower. I also consider them undervalued as an asset play. Introduction: Valuetronics’ profits have been stalling over the past...

Read More

Procurri – Growth Story Gone Wrong?

It has been some time since I did a write up on some of the counters that I am looking at. Procurri is one such counter as I had been monitoring their fortunes since their IPO back in July 2016. Interested investors can read more about Procurri’s IPO from Mr. IPO’s review here. Without further ado, lets dive into their first full year results which can perhaps best be summarized in one word – Disappointing. Source: Procurri Full Year Results Release There are 2 main points that I wish to address regarding their results: 1) Weak Revenue Growth Procurri’s...

Read More

FY’16 (Apr’16-Mar’17) Portfolio Results

As per the stated tracking timeline (half yearly in April and October), it is once again time to review the performance of my portfolio. I have decided to bring forward the portfolio review by a few days since I will be travelling overseas for a short mountaineering trip. Portfolio Results To recap, I had set myself a primary absolute objective of attaining returns exceeding 10% per annum and another secondary relative objective of beating the index (which is STI for now). Given my returns, I have therefore fulfilled both objectives. Beyond the objectives though, it was a pretty amazing...

Read More

Portfolio Update: Divesting KTT for 21% profits after 8 months

I have divested my holdings in Keppel Telecommunications and Transportation (K11) at $1.85 per share to record a healthy 21.0% total profits. (prices include transactional costs) Divestment Thesis: This is a case whereby business fundamentals had deteriorated and I believe that $1.85 is a fair price for Keppel T&T for the current situation that it finds itself in now. Interested readers might recall that I had provided a target price of $1.98 when I wrote my investment thesis on Keppel T&T (here). Here is what I think has fundamentally changed for Keppel T&T: M1 is going down I described...

Read More

Like us on Facebook

Follow us on Twitter