Author: A Singaporean Stockmarket Investor (ASSI)

What should a Singaporean have by age 35?

I came across an article in Yahoo!Finance: “The 5 things every Singaporean should have by 35.” The 5 things the author listed are: 1.  A time deposit that would be maturing soon. He thinks that people should start by having a reliable investment scheme in their 20s and went on to say that fixed deposits are a good place to look… er… 2.  A relevant degree. He thinks that a degree is the norm these days and people should get a degree as soon as possible. He also thinks that a degree is the key to employability. I wonder if...

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Cache Logistics Trust: 2Q 2012’s DPU down 5%.

A drop in DPU? Yes, that is right. From 2.086c in the last distribution to 1.981c this time round. This is due mainly to a private placement of 60 million units in March this year. This is an important reason why I prefer a rights issue to a private placement. With a rights issue, all unitholders are given a chance to participate in the enlarged capital base of the REIT. With a private placement, retail investors are usually disadvantaged. Although the DPU might still fall 5% if the REIT had a rights issue instead of a private placement, at least all unitholders would have...

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First REIT: 2Q 2012 DPU unchanged.

First REIT has delivered another quarterly DPU of 1.93c, unchanged from the last quarter. However, the quarterly DPU of 1.93c would not be repeated as it includes the final payment from the gain from selling of its Adam Road property. This is why I have cautioned more than once that we should use a more conservative quarterly DPU estimate of 1.6c when valuing the REIT. The REIT goes XD on 30 July 2012 and income distribution is payable to unitholders on 29 August 2012. NAV/unit: 79.5c Gearing: 15.9% Interest cover ratio: 11.8x Occupancy: 100% In 2H 2012, the REIT could...

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Ascendas Hospitality Trust: Am I interested?

Over the weekend, a friend asked me if I would be interested in Ascendas Hospitality Trust although he knew that I am generally not interested in IPOs. He was just asking for my thoughts on the Trust. Ariake Sunroute Hotel, Japan. Ascendas Hospitality Trust (A-HTrust) will be offering 437.33 million stapled securities at 88 cents each for mainboard listing in its initial public offer (IPO) in Singapore. (Source: The Business Times, 18 July 2012) What are stapled securities? Stapling simply means that two different securities are “stapled” together for the purposes of trading or transfers. Stapled security could comprise...

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Have conviction and make money?

It is impossible to see into the future. People who say that they can are like fortune tellers. How much are their advice worth? How much would we pay fortune tellers to read our palms? Saruman’s seeing stone in Lord of the Rings. Whatever decisions we make are based on a whole gamut of factors. Then, we have certain expectations of how things would turn out after making such decisions. The more thoroughly we could reason our feelings of conviction, the higher our chances of staying the course and, dare I say, that our decisions could deliver on our expectations....

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Millionaires usually emerge from bear markets richer.

On 9 July, I wrote a piece on how fear of a collapse of the eurozone must be so strong that investors are paying Germany to borrow money from them. Today, I read in The Business Times that “Millionaires added US stocks more than any other asset in the latest year as average investors fled to bonds, according to a survey by Fidelity Investments.” The survey involved 1,020 households with at least US$1 million in investable assets, excluding retirement savings and property, for the 12 months ended March 2012: 20% bought individual domestic equities. 13% added to the cash...

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Sabana REIT: 2Q 2012 DPU 2.27c.

When people asked me whether they should invest in AIMS AMP Capital Industrial REIT or Sabana REIT recently, I asked them what are they after? If they are after a higher yield in the immediate future, Sabana REIT is the obvious choice. Sabana REIT has declared a DPU of 2.27c, just 0.01c higher than in the last quarter. Annualised, this gives us 9.08c. Buying units of the REIT at $1.00 a piece would give us a distribution yield of 9.08%. Sabana REIT is probably the only one in the S-REIT universe now that is offering a distribution yield in excess of 9%....

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AIMS AMP Capital Industrial REIT: 1Q FY2013.

DPU is 2.5c, 0.2c lower than in the last quarter. This is within expectation. Some might remember when a reader was elated that the REIT was paying 0.1c more in DPU per quarter culminating in 2.7c in the last quarter, I mentioned that it would probably not be repeated in this quarter. The REIT will go XD on 31 July and income distribution is payable on 18 September.  With unit price at $1.30 or so, we are looking at a distribution yield of 7.69%, annualising the 2.5c DPU for the quarter (representing 97.7% of its income available for distribution). However,...

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K-Green Trust: DPU of 3.13c.

I am still holding on to a small investment in K-Green Trust. I will be getting some money for the 5th time in the form of income distribution soon. The Trust distributes income half yearly and a payout of 3.13c has been declared. Date payable: 16 August 2012. Mr Thomas Pang, CEO of Keppel Infrastructure Fund Management Pte Ltd, the Trustee-Manager of K-Green Trust, said, “K-Green Trust continues to perform well in this period and remains committed to deliver stable, predictable and reliable distributions to the...

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Fraud: Advice from a fraudster.

Often, we hear the saying that if it sounds too good to be true, it probably is. However, could we be missing out on something good if we simply tell ourselves this each time there is a deal which looks too good to be true? So, how do we tell if something is a genuinely good deal or if it is a well disguised pit. For sure, it is not easy. Even very savvy people have been victims of con jobs because if a con artist is a professional, he could have almost all the grounds covered. I say “almost” because the...

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Yongnam: Worried about warrants?

Yongnam has been doing very well in recent years. Its management also shows a commitment in sharing the fruits of its achievements with shareholders as it paid steadily higher dividends in the last four years. Yongnam’s order book remains robust although its Q1 revenue and profit declined due to delays in starting up of a couple of projects. Is this why its share price has been languishing? Does Mr. Market expect Yongnam to underperform from this year on? Well, to be fair, the broader market has been languishing too. It remains to be seen whether the 3,000 points pyschological resistance on...

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Yongnam: 3 new contracts worth $63.8m.

Yongnam announced that it won 3 new contracts worth $63.8m. This will add to the company’s current order book of $469m, making it $532.8m. These new wins are expected to have a positive effect on the company’s numbers for 2012. Yongnam is a leader in its field and expectations are for more contract wins in the coming months. Yongnam’s net profit for 1Q 2012 came in lower compared to 1Q 2011 because of delays in projects starting up in 1Q 2012. 2011 was also a very strong year due to completion of higher margin projects. An improvement in 2H 2012 is expected, however. “Nonetheless,...

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Borrow money and be paid to do so!

No, there is no typo in the title of this blog post. Yes, you read it correctly! So, where can we go to borrow some money and be paid to do so? Who are the people lending us money and paying us for it? Maxi-Cash? Nope, not Maxi-Cash. What I am describing is happening in Germany and, unfortunately, the option is not open to us. So, it would remain a dream. Hey, day dreaming is actually good for health, you know? BERLIN: Investors paid to lend Germany money for six months at an auction on Monday, the country’s central bank said, as they...

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