Author: A Singaporean Stockmarket Investor (ASSI)

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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China Minzhong: Crossroads.

China Minzhong’s share price has been forming a base. It is clear that immediate support is now provided by the 20dMA which has stopped declining and is, in fact, gently rising. A rising MFI suggests that there is an underlying and growing demand while the sharply rising OBV suggests that smart money is moving back into the counter as its share price moves sideways with an upward bias. The MACD, although rising, is still in negative territory. However, this could change soon as it could cross into positive territory next week, everything remaining constant. Could a change in trend take...

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Sound Global: Would I buy now?

Fundamentally, a top down approach suggests that the industry Sound Global is in will continue to do well as governments invest in solutions to water related problems. My past research and experience with the company when it was known as E-pure also gave me the confidence required to invest in the company again although my initial re-entry price of 59c was less than ideal. In the subsequent market sell down, I bought more shares at 46.5c on 31 May 2012 which means that my long position is now in the black. I am looking to possibly locking in some gain as the charts...

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Capitaland: Leveling up.

“People’s Bank of China slashed its one-year deposit and lending rates by 25bps and 31bps respectively just a month after it cut interest rates by 25bps. Beijing also announced further easing of interest rates, with banks expected to lower lending rates by as much as 70% against benchmark rates.” Further expectations are for the bank RRR (required reserve ratio) to be cut by another 50bps in 3Q 2012.  (Source: The EDGE) All these measures would serve to improve liquidity, helping businesses and consumers gain easier access to cheaper loans. As Capitaland has a significant presence in China, improving liquidity in the...

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Cambridge Industrial Trust: 30 Teban Gardens.

Cambridge Industrial Trust is looking at buying 30 Teban Gardens for S$41m. “Cambridge Industrial said 30 Teban Gardens Crescent is a high quality asset, with prominent exposure to the Ayer Rajah Expressway. The acquisition will further reduce the reliance of the trust’s income stream on any single asset or tenant.” Eurosports Auto at 30 Teban Gardens distributes Lamborghinis. What I am immediately interested in is how are they going to fund the purchase and how will it impact my income received from the REIT. The REIT has a gearing level of some 35.9% as of March 2012. Not excessive...

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Croesus Retail Trust.

“Croesus Retail Trust is planning a Singapore initial public offering of about $800 million (US$634.22 million), backed by mainly Japanese assets, IFR reported on Wednesday.” It is an interesting choice of name. Croesus was the wealthy King of Lydia (part of modern day Turkey) and in Greek culture, the name is synonymous with a wealthy man. Would the REIT live up to its name? Although I find this REIT interesting, I am not too excited about it at least for now because I remember Starhill Gobal REIT’s Japanese retail properties to be a drag on its performance. The lacklustre Japanese economy...

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AIMS AMP Capital Industrial REIT: Making money.

The issue of how REITs must constantly raise funds in order to expand has been beaten to death and I have also blogged about it more than once. The debate can and probably will go on forever but, as far as I am concerned, it has little value and serves to distract us from what really matters. If REITs are raising funds for activities that are yield accretive, I would readily support the exercise and would, in fact, try to subscribe for more than my entitlement of rights if the offer is very attractive. Bearing this in mind, I have...

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Voices, noises and choices.

The amount of information out there is enough to make one feel somewhat overwhelmed or even faint. I have not been reading blogs as much in the last one week and kept my reading primarily to Channel NewsAsia, The Business Times and Yahoo!Finance. Even so, it probably is enough to make heads spin. Some proclaimed that the U.S. housing market has bottomed and is picking up! Conventional wisdom says that the U.S. housing market must pick up before we see a return to sustainable economic growth. On the same day, another article claimed that the U.S. economy is sliding back into recession! Then,...

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Market gyrations, my portfolio and a sabbatical.

My investments in S-REITs are holding up nicely which gives credence to my strategy to overweight S-REITs in my portfolio. Their relative price stability and high distribution yields provide some solace in a volatile market. A brief look at some of my larger investments in S-REITs: 1. AIMS AMP Capital Industrial REIT closed at $1.20 per unit. My cost per unit ranges from $0.775 to $1.10. 2. Sabana REIT closed at $0.97 a unit. I first initiated a long position at $0.93 in March 2011. I bought more as its unit price sank below $0.90. I am still holding on to those...

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Wilmar: Not a time to sell.

On 5 June 12, I did a blog post on whether it was time to go long on Wilmar. Yesterday, someone asked me as well if it is now a good time to go long on Wilmar. To any seasoned market watcher, Wilmar’s share price must look quite tantalising as it hit a low of $3.41 on 14 June 12. That was a good 43% lower than its one year high of $5.99 a share. Now, if we should think of a reason for the decline in price, it is clearly because of the company’s disappointing earnings. The company’s crushing business...

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SPH: Better investment than retail S-REITs?

SPH is still my largest investment in a Singapore blue chip and it is an important part of my high yield portfolio. CIMB now suggests that investing in SPH is better than investing in retail S-REITs. It would be a happy coincidence for me if CIMB should be right as my only exposure to retail S-REITs is a small long position in Suntec REIT, much smaller than my investment in SPH. Singapore Press Holdings is becoming increasingly like a retail real estate investment trust (REIT), CIMB Research said, noting its growing retail property arm and stable media business, as well as typical payouts of...

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