Author: 10% Per Annum

Should we be worried at doomsday predictions from investing legends?

As investors, investing legends’ words tend to hold great sway – after all, these gurus became legends only because they had been better at reading the economy, understanding businesses and predicting the market. Therefore, when they make predictions, it is not uncommon to find small time retail investors like us sitting up and listening. 2 recent actions/predictions by investing legends had sparked my interests in posting this. On April 28, Carl Icahn announced that he had exited from his positions in Apple. Icahn is famous for being an activist investor. He is also known for the “Icahn lift” whereby...

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Net-Net Part 2: Wee Hur Holdings

In my first post about net-net stocks (here), I identified 3 common factors that might lead to firms becoming a net-net stock: Poor Corporate Governance, Weak Management and Bad Outlook. As with all learning, examples are always helpful. While I was scanning SGX for potential buys, I came across an extremely interesting net-net example: Wee Hur Holdings. First of all, lets determine that Wee Hur is a net-net firm. The net current assets data attached is retrieved and calculated from the annual report found here. Do note that they are no longer a net-net firm based on their more...

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Investigating SGX’s 2015 Net-Net Stocks’ Performance 1 Year On

In value investing, investors’ more common tools include Price-Earnings ratio and Price-Book ratio. While more uncommon, net-net investing also has a strong following especially amongst Benjamin Graham’s fans. Net-net investing is based on a simple and strong idea: if the company is to liquidate today, you are definitely making a profit. You are sure because the company’s current assets can pay for their total liabilities and the net of which is still worth more than the current share price. Yes, non-current assets are thrown in the mix for free. On 7 June 2015, about 1 year ago, Motley Fool had identified...

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Portfolio Update: Global Investments OUT, Keong Hong IN

Global Investments: When I first invested in Global Investments (here), I concluded that it was an investment that I will monitor closely. Upon consideration of their Q1/16 earnings, I have decided to divest as I feel they can no longer sustainably afford dividends exceeding 10 percent per year. To elaborate, Global Investments has pivoted too much towards bonds for my liking. They now hold 52% of their assets in bonds with a weighted average coupon of 6.76%. Even if none of their bonds default and not withstanding the fact that Global Investments is trading at a Price to Book...

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37.5% increase in 2 weeks – 800 was indeed SUPER

Congratulations to investors in 800 Super Holdings (no, unfortunately and sadly, not me). Since the release of Q3 Financial Results on May 12, 800 Super Holdings Limited has seen its share price jump 37.5% from 0.48 to Friday’s close of 0.66 in merely 2 weeks. 800 Super is a Singapore-based waste management and horticultural company that is also dabbling with recycling. I first begun monitoring 800 Super due to its fantastic growth history. Source: FT Markets “In the short run, the market is a voting machine, but in the long run it is a weighing machine.” – Benjamin Graham...

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Something BIG is brewing at Global Logistic Properties

Global Logistic Properties has recently embarked on an aggressive share buyback program beginning 20/05/2016. Share buybacks are not exactly uncommon. Indeed, companies often seek share repurchase mandates during AGMs. While that might be the case, it is fairly uncommon for a firm to actually buy back shares at this aggressively. Here are some numbers to make sense of how big the recent share buyback is: (All information can be found here) In the space of only 4 trading days, GLP has bought back 9,688,000 shares which translates to: 1) 0.20% of all outstanding shares 2) 0.48% of free floated shares...

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Big is not always beautiful – Looking at the world’s biggest IPO

If you are new to investing, chances are that you would have received some form of advice to invest in blue chip stocks with high market capitalization. While there are definitely benefits in investing in big companies, the fact that a company is big does not automatically qualify it as a good investment. In the US, Enron was valued at more than 60 billion USD before it collapsed. In the UK, Barings was not just a huge bank – it was also the 2nd oldest merchant bank, and that did not stop it from running itself to the ground. Closer...

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Investing for non-Finance individuals

‘Those who have the cash to invest but don’t are either lazy or ignorant’ – Yahoo via Moneysmart.sg While blunt, the statement is probably true. Most of us work really hard to earn money and scrimp everywhere to save a portion of it. After doing all these, wouldn’t you agree that it is a complete waste to let our savings simply lose its value to inflation? Furthermore, after doing the hard part of raising this capital, shouldn’t we make the capital do some work too? Lets consider a fictional case of 4 friends: Lazy Tom, Steady Eddie, Investor Joe...

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Q1/16 Earnings Review: Yuuzoo – Strong Earnings, Poor Governance?

(As previously disclosed here, I am vested in Yuuzoo. Since the post was only written 3 weeks ago, I will not discuss much about my views on Yuuzoo’s growth potential. Rather, this particular post seeks to discuss Yuuzoo’s recent earnings and developments) Yuuzoo recently released their earnings for Q1 2016. The main points of their press statements are stated here: Revenues grew 246% year-on-year to SGD 45.5 million, while EBIT grew 190% to SGD 12.8 million. E- commerce jumped 763% to SGD 28.6 million. As a result of the very strong Q1 numbers, YuuZoo is giving a full year forecast...

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Q1/16 Earnings Review: DBS vs UOB vs OCBC

(As previously disclosed here, the author is vested in DBS. Therefore, this post might focus more on DBS relative to the other two Singaporean banks. This post will also make reference towards the previous post in relation to assessing the previous analysis and predictions) All 3 Singaporean banks had released their earnings recently. OCBC and UOB reported poor earnings with a 14% and 4.4% year-on-year fall in net profits respectively. OCBC was particularly disappointing as net profits were below forecasts. In contrast, DBS had easily beaten forecasts with a 6% year-on-year rise in core quarterly profits (net profits was...

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