Author: AlpacaInvestments

QAF LIMITED REVISITED: DISAPPOINTING 3RD QUARTER

At some point in our lives, we may have consumed the Gardenia brand of bread for breakfast, as it is a familiar household name. However, QAF Limited may sound a little more unfamiliar to us. I didn’t know about the link between these two names, until I began researching on QAF Limited. Gardenia bread is actually produced by QAF Limited, a company whose operating segments include bakeries, primary production and trading & logistics. I had previously written about QAF Limited in May this year. 3rd Quarter PerformanceQAF’s third quarter results were rather disappointing, with net profit falling by 62%. Even...

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MAPLETREE COMMERCIAL TRUST OR STARHILL GLOBAL REIT?

Mapletree Business City, Source: MCT website I’ve been looking at Mapletree Commercial Trust and Starhill Global REIT recently, so I’ll be writing on how these two REITs stack up against each other. Our local REIT sector has performed well this year, with many REITs surpassing their 52-week highs during the past month. Unfortunately, I’ve largely missed out on this rally. However, I believe that some REITs still present some value, together with a decent dividend yield. For some background, the first two stocks that I purchased were Ascendas REIT and CapitaMall Trust, back in 2015. However, with the probability...

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ARE SINGTEL’S DIVIDENDS SUSTAINABLE?

After SingTel’s successful listing of NetLink Trust (NLT) in July, SingTel has reduced its effective stake in NLT to 24.99%. In the process, SingTel received a huge windfall, with an excess of $1 billion in cash. There has been much speculation of whether a special dividend would be declared. SingTel is expected to use some of these proceeds to pare down its debt or to expand its core business. As for the remaining IPO proceeds, I believe that there is a chance for a special dividend to be declared. The focus on my post would be to evaluate whether...

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SEPTEMBER TRANSACTIONS

For September, there’s not much to update, as I had only executed one transaction. Latest portfolio holdings can be found here: My PortfolioPurchased Jumbo at $0.54, because I am positive on their move to expand into Asia. As of yesterday, Jumbo closed at $0.57, which represented a 5.6% gain. This is a long term holding as I await their expansions plans to unfold. Nonetheless, if Jumbo were to surge to an extremely high valuation, such as a price earnings ratio of above 30, I would consider selling. More details can be found in my earlier post: Jumbo at 52-week...

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COMFORTDELGRO PART 2: VALUING ITS TAXI BUSINESS

This post is a continuation from my article on ComfortDelGro’s valuation yesterday. Previous article: ComfortDelGro: A safe entry price? In my previous article, I had arrived at a valuation for CDG’s taxi business segment, using its net asset value. As some users on InvestingNote have pointed out, using CDG’s net asset value may not be the most appropriate valuation method, as the vehicles may not be liquidated at book value. Based on the feedback, I’ve revised my calculations, to take into account the projected fall in taxi fleet numbers, revenue, profit margins and earnings. Valuation of Taxi Segment Here’s...

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COMFORTDELGRO: A SAFE ENTRY PRICE?

ComfortDelGro has been on my watchlist since early this year, when it was trading at around $2.40. In my earlier post in February, I assigned a target price of $2.17 for CDG, on expectations that taxi earnings would be hit by the intense competition with private hire operators. Subsequently, CDG ran up to a high of $2.70 before going on a prolonged decline, and closed at a price of $2.08 yesterday. When CDG hit $2.17 a month ago, I did not initiate a position because I felt that its fundamentals have worsened. I have summarised my thoughts on CDG....

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MY PORTFOLIO

Average Cost Price (SGD) % of Portfolio STI ETF 2.78 24.79% DBS 15.00 19.21% SGX 6.99 12.57% Jumbo 0.54 11.67% Far East Orchard 1.52 8.37% Cash – 23.38% After much consideration, I’ve decided to reveal the current holdings in my portfolio. My portfolio is a low five-figure sum, which I have accumulated from my savings, National Service allowance and working part-time jobs. I started investing in mid-2015, while I was in National Service. Looking back, mid-2015 was probably the worst time to start, as the markets began to decline due to the sharp fall in oil prices and fears...

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JUMBO AT 52-WEEK LOW

I have been monitoring Jumbo’s stock for the past few months. After a spectacular run up since its IPO, Jumbo’s share price hit an all time high of $0.79 earlier this year. At that point, Jumbo stock was trading at a P/E ratio of 30, which reflected the market’s strong optimistic sentiment, along with expectations that Jumbo would continue to report strong growth in its earnings. After two quarters of reporting flat earnings, Jumbo’s share price has tumbled to a 52-week low of $0.53. This shows us how emotion driven the market can be in the short term –...

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AUGUST TRANSACTIONS

1) Divested NetLink Trust¬†at $0.805, because I expected the cessation of the stabilising purchases to have an adverse impact on the share price, similar to HRnetGroup two months ago. However, on hindsight, this was a speculative decision and probably shouldn’t have been a strong reason to exit, given that the fundamentals haven’t changed and NetLink’s dominant position in the fibre broadband market. Since my divestment, NetLink’s share price has risen by around 4-5%. The strong performance recently can probably¬†be attributed to expectations that the pace of rate hikes will be slowed, which benefits high dividend yielding stocks, as well...

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