Author: A Singaporean Stockmarket Investor (ASSI)

Marco Polo Marine: Patience will be rewarded.

I added to my long position in Marco Polo Marine as long term support was tested. Today, its share price touched a high of 35c before closing at 34.5c on the back of rather high volume. The positive divergence between the CMF and price action has played out. The MACD is rising in the negative territory and we could see price going higher and momentum going positive once more. A retest of 37c, the high of the double top, could happen. Daily chart. Weekly chart. Fundamentally, Marco Polo Marine presented an impressive set of numbers:   All-time high net...

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Be cautious even as we accept higher risks.

When I did a Diploma in Business, I had to study Business Law. One thing I remember is that something we buy has to be “fit for the purpose it was built for” and be “of merchantible quality”. So, let’s say you bought a contraption which was supposed to keep food fresh but it did not; then, it was not fit for the purpose it was built for. If the contraption really did keep food fresh but it started to fall apart within the first week of use, then, it was not of merchantible quality. Singapore’s Lemon Law which kicked...

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Olam: A time bomb?

The high profile standoff between Muddy Waters and Olam is not about something new. Earlier this year in June, I wondered at Olam’s share buy backs as well. I blogged about it and attached a section of research done by Kim Eng on the company then. What Muddy Waters has said does make sense and Olam has to focus on its business rather than its share price. Should Olam come to collapse (as we believe it will), its use of much-needed cash to buy back shares at this time should give rise to questions about whether fiduciary responsibilities have been breached –...

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First REIT: 30,900,000 new units.

First REIT is having a private placement, issuing 30,900,000 new units at 95c each. This is to help pay for acquisitions announced earlier in September. How will this impact existing unitholders? Other than the advance distribution for the period 01 October to 25 November which is nice to have, existing unitholders’ interest in the trust is going to be diluted. The REIT has approximately 632,645,000 units in issue. The 30,900,000 new units will add 4.88% to the total units in issue.  Based on an estimated pro forma DPU of 6.77c, post acquisitions, the DPU post private placement is estimated to...

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LMIR: 3Q 2012 DPU 0.73c.

A reader sent me an email and asked if I would be writing about LMIR’s 3Q 2012 results. I admit that I was wondering if I should just skip it this time. LMIR announced a DPU of 0.73c which is lower than the 0.79c declared in 2Q 2012. This is despite the fact the distributable income improved 37.9%, year on year. In my blog post on the REIT’s 2Q 2012 results, I was optimistic that the REIT’s DPU would improve further as its gearing of 9.3% meant that it had plenty of debt headroom for yield accretive purchases. However, the...

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Build a bigger retirement fund with CPF-SA.

In recent days, I had an engaging exchange of ideas with a reader, Endrene. Both of us agree that young working adults could use their CPF-SAs to grow their retirement funds, risk free, at a faster clip.  Both our experience show that this is a valid and relatively fuss free approach to long term wealth accumulation. If you think that the additional 1.5% per annum paid on the CPF-SA does not amount to much, I would encourage you to read a blog post of mine written more than two years ago. In the last few paragraphs, I explained how transferring funds from CPF-OA...

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Category A COE hits record $77,201!

The premium in Category A, for cars below 1,600cc, surged $6,200 in the lastest bidding exercise, surpassing the previous high of $73,501 set in early August. Easy financing is contributing to continuing demand. “Demand is still there, even as the economy slows down, and it is being propped up by cheap loans. So, as long as the monthly repayment is within the buyer’s budget, he will get that new car.” (Source: The Business Times, 8 Nov 12.) My reaction to this bit of news? This is totally mind-boggling! Boggled at #1: $77,201 for a certificate to own a car...

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President Obama wins! What next?

President Obama has been re-elected! Seems that Mr. Ben Benanke’s job is safe. More quantitative easing, a weaker US$ and stronger inflationary pressure? Seems like it. People are concerned about the “fiscal cliff”. Could it turn out to be a non-event? Could the Democrats and Republicans reach a compromise? What is the “fiscal cliff” all about and why should we be concerned? If the current laws slated for 2013 go into effect, the impact on the economy could be dramatic. While the combination of higher taxes and spending cuts would reduce the deficit by an estimated $560 billion… the policies set to...

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Want to be wealthier without higher risk?

More than a year ago, I wrote about a conversation I had with someone who was worried about the effects of inflation on his personal wealth. By chance, I met him over the weekend and we spoke briefly. He lamented that he did not listen to me as he could not come to terms with the idea that to protect his wealth, he had to take risk. This reminds me of a saying in Hokkien I heard recently: Afraid that grasping too loosely might let the bird fly away and that grasping too tightly might kill the bird. So, fearing...

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Sound Global: Smart money is buying.

On 17 Oct, I mentioned a downside target of 48c for Sound Global’s share price. This might or might not materialise. Personally, I am not averse to buying a few bids higher if the technicals tell me that it could be a good idea. As Sound Global’s share price declined, volume has also declined. This picture of a low volume pull back suggests that the selling is weak. Indeed, looking at the MACD, we see a higher low possibly forming. Looking at Chaikin Money Flow, we see how money flow has turned positive even as its share price weakened...

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CapitaMalls Asia: Any correction is a buying opportunity.

CapitaMalls Asia’s share price is enjoying a strong follow through after breaking resistance. Further increase in share price is likely to meet stronger resistance at $1.93, the 138.2% Fibo line. Overcoming this resistance level would see the next two golden ratios at $2.00 and $2.07 providing resistance. It remains to be seen if $1.84 is resistance turned support. Stronger support is at $1.705 as that was a many times tested resistance that finally gave way after a period of seven months. Bears would have to be out in full force and more in order to push the share price below $1.705...

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China Minzhong: Accumulate on weakness.

There are a few stocks which I would like to accumulate on weakness in the near term. China Minzhong is one such stock. Many like Jim Rogers have put forth a convincing case of an impending food crisis. In the event of global food shortages, it is logical to expect food prices to rise. So, investing in food producers seems to make good sense. Improving numbers, insider buying, an experienced management and the right industry, I believe China Minzhong is a good company to invest in. Also, there could be more positive catalysts and these could push its share price higher. After...

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A blast from the past: Singapore blue chips or S-REITs?

I have been blogging for close to three years and looking back, I was a rather prolific blogger. Over the weekend, I read some of my older blog posts and found one which I have almost totally forgotten about. Those were the days when S-REITs were largely unloved and shunned. Written in the first year of my blog’s creation, to anyone who would listen, it was an effort to show that S-REITs could be great investments too. Readers from my blog’s early days might or might not remember this blog post but, I believe, all readers could benefit from the blog post...

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Tea with AK71: Three point turn!

This weekend, I am going to leave you with a very short blog post. Nothing original but sometimes, we need a few reminders, don’t we? Man is created in the image and likeness of God but there is nothing Godly about Man. So, here are the three points which could turn our lives (for the better): 1.  We only need so much money in life. The rest is for showing off. 2.  Keep our needs simple and our wants few. We will have less money problems that way. 3.  Know what and who matter to us. Don’t waste time and...

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