VIVA Industrial Trust more attractive with 9% yield?

AK: You should question why is the yield relatively higher for VIT? In my last blog on VIT, I mentioned the very short lease for their Chai Chee property as a concern. Of course, we know that they went ahead and bought another property in Toa Payoh with an even shorter lease. Alamak. If we look at VIT's total gross floor area or total GFA (i.e. all their properties put together), 2.22 … [Read more...]

Healthway Medical and free money from Lippo.

Donkey years ago, I invested in Healthway Medical Corporation (HMC). I liked the numbers and I thought it was relatively undervalued compared to peers. Anyway, I got in at 10 cents a share and was mostly divested by the time its share price doubled months later. Some of my comments from 2009. Unfortunately, HMC had troubles later on and the last time I looked at it, its … [Read more...]

ARA Asset Management and $1.78 a share.

After my ARA "fixed deposit" has been redeemed, what remains is my original investment which I paid $1.00 to $1.32 a share for. Although the offer of $1.78 would mean a 35% to 78% capital gain, I would be losing a very consistent and meaningful source of passive income. A yearly 5c dividend per share (DPS) gives me a yield on cost of 3.78% to 5% and from a growing business with a very strong … [Read more...]

Investing for income and dividend yields.

Reader: wonder how aggressive you are at aiming dividend % yield when you were younger. Because I realized that recently you are pretty content with 5% yield or lower. When we invest for income, a higher yield is naturally attractive but we want to exercise caution. We should avoid the instant gratification of yield. (See related post at the end of blog post.) Be aware of our … [Read more...]

Centurion Corporation Limited Full Year 2016 Report.

I recently added Centurion Corporation Limited to my investment portfolio at 38c a share and I am pleased to learn that I will be rewarded with a dividend per share (DPS) of 1c which is payable on 19 May 2017. An annual DPS of 2c could be the new norm for Centurion Corporation Limited if their business continues to do well, well enough to offset any increase in interest expense. If this … [Read more...]

OCBC 360 updated (and downgraded) again.

Once upon a time, OCBC 360 together with the OCBC Frank credit card, was my favourite combination to get higher interest income on my savings. I just had to spend $400 with my Frank card and pay 3 bills online and I would get a 2% interest rate on my savings. With no monthly salary to credit into the account, that was the best I could do. Then, the benefits were revised and suddenly my … [Read more...]

Buy a car with 4D winnings or win again?

Reader: I want to thank you... A friend shared your 4d pick at a gathering... I am a gambler and I bought the most... I have never won so much money gambling before...  He told me to top up my CPF but I have been thinking of buying a car... (The above is not the full email.) Remember this? Lucky! AK: Welcome to my blog. I will not tell you not to buy a car if you are one of the … [Read more...]

How much is QAF Limited worth using DCF?

Many people ask me what is a fair price for QAF Limited. Obviously, all of us will have our own answer. Of course, depending on Mr. Market's mood, share price could go higher or lower. There is no accounting for prices or so I have heard people say. What we can try to find out is the intrinsic value to help us make sense of the price offered by Mr. Market. After all, price is what we pay and … [Read more...]

My savings accounts, recent money flow and investments.

I have a few savings accounts but my most used accounts are the following three: 1. POSB Despite the low interest rate for my savings, I am holding on to my POSB account mainly because I have had it since I was a boy and I feel comfortable with it. I have many arrangements tied to this account and it would be a bother to terminate it.The most important function of this account for some time … [Read more...]

What is QAF Limited really worth?

Gardenia is providing the best that consumers deserve! Impressive! QAF Limited has announced a 129% increase in full year net profit. A final dividend per share (DPS) of 4c has been declared. Total DPS for the year is 5c. Why the big jump in net profit? There is an exceptional item which accounts for almost $60 million worth of income. Earnings per share (EPS) for the full year 2016 is … [Read more...]

Invested in ST Engineering at the right price.

Reader: Hi AK, I remembered you mentioned ST Engineering in one of the session (Evening with AK and friends) a couple of years back (2015) and shared that through one of your readers, you have a greater understanding of their business model. At that point, you mentioned you would look at entering the market if it goes below $2.9 per share, it was hovering around $3.2. It was my first time … [Read more...]

I bought shares of XXXX and I am worried now.

I get emails like this quite frequently: "I am very new to investing and am learning a lot from your blog. May I seek your advice on whether to buy/sell XXXX? I have recently bought XXXX shares at $X.XX and am worried about their involvement with XXXX. Should I sell or hold?" I always say if we know the value of our business, we will know if the market price makes sense. If we know, then, … [Read more...]

Added Centurion Corporation Limited to my portfolio.

I was introduced to Centurion Corporation Limited by a friend some time ago. He went in early, made his money, a lot of money, and scooted. Clever fellow. AK is more of a plodder when it comes to investments. Investments which pay dividends consistently and meaningfully get his attention. A judicious amount of leverage is acceptable but too much leverage is scary especially now that interest … [Read more...]

My investment portfolio, market value and position sizing.

I feel that I have been blogging a bit too much recently and it is probably a good idea for me to go offline for a few days. So, it won't just be blogging that I am avoiding but everything else that requires me to go online to do as well. Hence, I won't be replying to comments and emails either. Before I go offline in another few hours for the next few days, I should respond to a request … [Read more...]

Win and win again with SRS.

I blog about the SRS pretty often and how my SRS account is a war chest. I also said before that I don't mind having quite a bit of money idling and waiting for opportunities. When opportunities come knocking, I pounce! I get to save on income tax and invest for higher returns. It is a win win situation with both winners being me! Greedy AK! Bad AK! SRS money cannot be withdrawn until … [Read more...]

Increased investment in Religare Health Trust (RHT) by more than 150%.

Religare Health Trust's (RHT) latest results missed expectations but yesterday's massive decline in its unit price was surprising and, I thought, excessive. The sale of a 51% stake in FHTL impacted RHT's income. Distributing the proceeds as a special dividend also meant that its NAV per unit declined to 83.8c. DPU for the quarter ended 31 Dec 16 was 1.25c, a big year on year decline of … [Read more...]

Hock Lian Seng returns 100% and more!

One of the things that I like to do is to buy into what looks like a fundamentally sound business when insiders are accumulating. One such stock which has amply rewarded me over the years is Hock Lian Seng. I already had a small position in Hock Lian Seng but decided to buy more in 2011 when I observed insiders buying. Back then, I paid 24c a share. Fully confident that the company would be … [Read more...]

An incomplete analysis of SingPost.

SingPost was a company I was looking at just a few months before Alibaba came into the picture. Thinking of adding it as an investment for income, I was waiting for the share price to go a bit lower before buying. However, Alibaba came in and bought a 10% stake at $1.42 a share and the share price went ballistic. This was in 1H 2014. I told myself I should be patient and wait. Then, Alibaba … [Read more...]

Croesus Retail Trust 1H FY2017 Hong Bao.

This was from a recent conversation: Reader: "Croesus Retail Trust reported good results but an investor I know sold all his shares already." AK; "We have our reasons for buying or selling. If our facts are right and if our reasoning is sound, we should do OK. We could consider facts and reasons offered by other investors in reviewing our investment thesis but don't be influenced by their … [Read more...]