Author: 8% Value Investhink

The Many Faces of PE – Shiller PE

With the new Cabinet in place and the WP working hard to defend what they have won, it is time to get back to real investment! Today we look at our favourite ratio again! PE or price earnings ratio has been talked to the death on this blog. This is more to just summarize the various ways to look at this ratio, or rather, how many in the investment community looks at it. 1. Cheap or Expensive The PE ratio, first and foremost, is the quickest way to determine whether a stock is cheap or not. It is obviously...

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The New Singapore Economy – Part III

This is a continuation of the previous two posts: The New Singapore Economy – Part I The New Singapore Economy – Part II I guess the one major issue with the paper’s Rengeration Plan as it was called, was actually the sustainability of the various measures. Just to jot down a partial list of proposals: 1. Doubling the no. of schools and teachers 2. Doubling the no. of hospitals and medical professionals 3. Waiver of Govt fees and taxes such as GST for basic items etc 4. Reducing the cost of raising kids: free education, monthly allowance, more maternity...

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The New Singapore Economy – Part II

This is a continuation of the last post. As with the Govt, various Ministers took pain to tear down the proposals in the paper by biting on points that appeal to peoples’ hearts and emotional logic. These are: 1. The $60bn Price Tag 2. Raiding Temasek 3. Loss of Manufacturing Jobs The first big rebuttal that came about was the big price tag. $60bn is unheard of. Our Govt annual budget is roughly around $30bn. Big no.s floating around are usually terms of millions or single-digit billion like YOG cost overrun ($300mn), Grow and Share Package ($3bn) and Lehman...

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The New Singapore Economy – Part I

One of the Powerhouse Opposition candidate Mr Tan Jee Say wrote a comprehensive paper to revamp Singapore’s economy recently. I had the opportunity to read it in full and I must admit it’s IMPRESSIVE. You have to give it to him (and the Govt training that he went through). After all that’s the quality we would expect from a former high ranking civil servant and PPS (Principal Private Secretary) for the top officials. Here is my unabashed point form summary that really doesn’t do justice to the 45 page report. I urge readers who are free to read it...

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The New Singapore Economy – Part I

One of the Powerhouse Opposition candidate Mr Tan Jee Say wrote a comprehensive paper to revamp Singapore’s economy recently. I had the opportunity to read it in full and I must admit it’s IMPRESSIVE. You have to give it to him (and the Govt training that he went through). After all that’s the quality we would expect from a former high ranking civil servant and PPS (Principal Private Secretary) for the top officials. Here is my unabashed point form summary that really doesn’t do justice to the 45 page report. I urge readers who are free to read it...

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Solutions to the HDB conundrum

This is a continuation of the last 2 posts: Are HDB prices really expensive? What’s wrong with HDB prices? What is the solution to this huge conundrum of HDB prices being much higher vs its history and vs some Singaporean household income (esp lower income groups) yet lower in terms of rental yield and absolute prices vs other Asian cities? The Opposition had come up with the cost plus solution. ie if the cost of building a HDB flat is $150,000, then the Govt should just put a tag of say $200,000 and sell it to Singaporeans. While this...

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Solutions to the HDB conundrum

This is a continuation of the last 2 posts: Are HDB prices really expensive? What’s wrong with HDB prices? What is the solution to this huge conundrum of HDB prices being much higher vs its history and vs some Singaporean household income (esp lower income groups) yet lower in terms of rental yield and absolute prices vs other Asian cities? The Opposition had come up with the cost plus solution. ie if the cost of building a HDB flat is $150,000, then the Govt should just put a tag of say $200,000 and sell it to Singaporeans. While this...

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What’s Wrong with HDB Prices?

So HDB prices are not overly expensive but everybody blames our Govt for the pitiful state of things. Now new couples cannot afford HDB, not to mention low and middle income families, old folks, the disadvantaged. If they cannot afford HDB, where are they going to live? How are they going to survive? The sentiment on the ground is definitely very different from what we have established in the last post. We shall look at a few issues that might shed some light into the disconnect: 1. Then and Now 2. Sour Raisins 3. Policy Blunders 4. Broken Dreams...

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What’s Wrong with HDB Prices?

So HDB prices are not overly expensive but everybody blames our Govt for the pitiful state of things. Now new couples cannot afford HDB, not to mention low and middle income families, old folks, the disadvantaged. If they cannot afford HDB, where are they going to live? How are they going to survive? The sentiment on the ground is definitely very different from what we have established in the last post. We shall look at a few issues that might shed some light into the disconnect: 1. Then and Now 2. Sour Raisins 3. Policy Blunders 4. Broken Dreams...

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Are HDB flats really too expensive?

With the election fever running high, it is probably apt to re-visit the property topic, a boiling hot button issue that is on everybody’s mind. While various statistics had been throw around by the media, nobody actually believes them. So here is an independent analysis of whether HDB flats are really too expensive. We shall look at a few measures: 1. Price to Income 2. Rental Yield 3. Absolute Prices 4. Housing Debt to Income Price to Income is one of the most widely used affordability measure. Basically it is just median housing price divided median income. (info from...

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Are HDB flats really too expensive?

With the election fever running high, it is probably apt to re-visit the property topic, a boiling hot button issue that is on everybody’s mind. While various statistics had been throw around by the media, nobody actually believes them. So here is an independent analysis of whether HDB flats are really too expensive. We shall look at a few measures: 1. Price to Income 2. Rental Yield 3. Absolute Prices 4. Housing Debt to Income Price to Income is one of the most widely used affordability measure. Basically it is just median housing price divided median income. (info from...

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Hyflux Preference Share

As with most people in the recent days, I have been googling around on Hyflux’s preference shares, but sadly nothing much can be found. One of the best analysis out there is done by this blogger: http://bullythebear.blogspot.com/2011/04/hyflux-preference-shares-part-1.html He has written a trilogy as well! Considering that the deadline for subscription is like 3 days from now, I guess this will be the first and last post for me. I will simply summarize the pros and cons briefly here: Here’s the good part first. 1. The dividends are cumulative – ie if they fail to pay one time, they must...

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The Nuclear Saga Continues

After 3 weeks of intense battling with the nuclear reactors, our heros at Fukushima aren’t really winning. In fact the situation is going from bad to worse. Radioactive substance is found in almost 100 different types of food, seawater is contaminated, tap water in Tokyo cannot be drunk, the area around Fukushima would probably be unlivable for the next 20 to 30 years. The final outcome might be similar to Chernobyl, ie pouring a few hundred thousand tonnes of concrete to entomb the reactors. Even that is just a temporary fix. Ukraine now needs financing for a permanent structure...

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A Long Nuclear Winter for Nuclear Stocks

The nuclear industry was one of the sexiest story for 2010. With the BRIC’s rising fast, the world’s hunger for energy looks insatiable. Renewable energy, bio-fuel, oil sands, nuclear were the buzz words. Nuclear was special though. It’s clean, cheap and scalable in a big way. It can contribute 25% to the global grid if the world’s govt put in the effort. Some developed countries are at that ratio. France, the No.1 nuclear supporter, is at 70%. Sadly for the world, today it’s still a miserable 14%. Undoubtedly it will go down below 10% in the next 10 to...

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Blue Ocean Strategy

This is the name of a popular book published about 5 years ago that helped improve how the top management of many companies think and how they should come out with strategies to help their company grow. I started reading this year (yeah, I know…) and found some intriguing ideas that I thought I should share it here. Here are some of those that would really help investors when they do some analysis on companies. 1. Blue Ocean Strategy simply refers to innovations that companies come out with that separate them from the competition. The strategies centre on creating...

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