Author: Compounding Wealth Through Sensible Investing

Is This Stock Delicious Enough for Your Investment?

I recently got interested in Jumbo Group mainly due to its falling share price. I visited Jumbo Seafood Restaurant and JPot during festive season and family birthday celebrations. The food quality is good and ambience is friendly. Coincidentally, a relative’s wedding lunch was held in Chui Huay Lim Teachew restaurant, and I found the food really tasty. Operations overview Jumbo Group is a multi-concept F&B company with 16 restaurants in Singapore, 3 outlets in Shanghai, and 3 other joint venture/franchised outlets in Singapore, Japan and Vietnam, under 5 restaurant brands. It serves more than 1.6 tonnes of crab per...

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Manage Cash Holdings in Portfolio

I read yesterday’s Straits Times article ‘The best investors sit on plenty of cash’ with interest. What are the roles of cash in your investment holdings? Intuitively, cash gives you options during extreme market conditions. It means one can buy at depressed market price to average down, to build a position in a promising counter. In essence cash presents opportunity to reduce your losses, or increase your earnings when market recovers. Cash also serves as an anchor to your portfolio as its value is constant. It is a valuable tool from a trade execution stand point as described above....

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Is Tai Sin’s FY17 Results a Cause for Concern?

Tai Sin Electric has been one of my long-term shareholdings since 2012/2013. Lets take a look at its latest Financial Year results that has just been released not long ago. Overall P&L Tai Sin has not had a great year in FY17. The total revenue, gross profit and operating profit have decreased as seen in table above. As a cable and wire manufacturer, it is important to monitor copper price as it is the main raw materials for cable production. Tai Sin showed ability to navigate a rising copper price in last year by maintaining a constant gross profit...

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Raffles Medical Q2 FY17

Raffles Medical (RM) just announced its Q2 2017 results.   Results Overview At first glance, RM’s Revenue, Ops Income and Net Income for Q2 remained constant or showed marginal fall over Q1 respectively: 1%, -1.9%, -2.3%.   Its Net Cashflow from Ops of $23.6m is similar to the $23.8m in Q1.   Balance sheet remains strong, with $112m cash and only $53m loans and borrowings.   All in all, results seem fine.   But its share price is a different story. It dropped about 5% to $1.21 on 1 Aug, one day after its result release, and fell further...

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Selling Decisions Made Simpler

Buying and selling are two sides of a successful investment. But selling can be tricky, especially when counter is deep in the money and investors are caught between realising profit or waiting for further rise. Selling actually deserves much more attention in one’s investment journey, but we rarely accord the same level of analysis and scrutiny to selling as per buying. It  is important as allows investor to recycle their capital into new counters/assets, or keep them in war chest for better opportunities. Sometimes it prevents loss from snowballing, and allow us to preserve our capital. Also, in the...

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Term Insurance

I have never talked about personal financial planning in my blog, even though it is such an important topic. It is important because financial planning helps us manage risks of undesired events that can wipe out one’s savings and assets. The cost of dealing with, and recovering from, these catastrophic events is very large, such as medical cost for dread illness, cost of surgery due to accidents, or cost of having a caretaker over long term. These events are unforeseen but the risks are very real. Financial planning helps us prepare for these events happening, and enable us to...

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Could Basic FA Have Helped Me Avoided Noble?

I bought Noble stock at the earliest date of, according to my record, early 2010 at a price of $1.69 (price quoted pre-10 to 1 share consolidation from here on). I traded a few rounds of Noble after that, with the highest buy price at $2.02 and lowest at $0.845. Details were sketchy as I just started investing back then and didn’t keep proper transaction records. And what is the current price of Noble on 7 June 2017? $0.033. That is a whopping 98.4% plunge in from the highest price I ever paid for it. For the record, I...

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FCT FY17 Q2

FCT recently released its FY17 Q2 results. I am posting a very simple, top line quick glance of their results. These figures are the usual set of indicators I look at for very stable REITs such as FCT. should there be nothing that looks out of the norm, my homework for the REIT stops here. Nothing more nothing less, short and simple. OverviewRevenue: $45m, a 2.9% drop y-o-yNPI: $32m, similar 3.3%  drop y-o-yNPI Margin: 71.2% vs 71.5% last year. same.Income available for distribution: $28.5m vs $28.9m last year. minimal change. Q2 DPU: 3.04c, same as last year. Balance SheetGearing...

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Let Your Stock Serve its Purpose

Peter Lynch classifies companies according to different characteristics such as size, growth potential, nature of industry etc.   This can actually be of great use to most investors. We have our portfolio of stocks, companies from different industries, at different phase of their growth. In general, if we ask what are the objectives of us investing in them? The first answer that comes to mind is of course, to make money! What other reasons can there be right, as no one will buy a share to lose money.   But if we were to probe deeper, the question we...

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ISOTeam HY 2017 Results

Results overview *Operating profit derived after deducting COGS, Marketing and Distribution Expenses, General and Admin Expenses, Finance Costs Bright spots Increase revenue in A&A, C&P and other business segments by 77%, 67% and 41% that picked up the slack for the fall in R&R segment First contract for HDB Improvement programme of $17.5m– higher profit margin job with usually bigger contract size Single largest renewable energy project at $6.3m Improved GP margin and largely consistent OP margin. Probably mean good cost control and effective integration of acquired businesses Areas of Concern Big drop in R&R revenue, the main business...

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What Has 2016 Taught Me/Reminded Me

It is year-end again, and typically, people review their life, thinking about what could have been done better, what went wrong, what good things happened. People also always look forward to a better year ahead. Such is human nature, no matter how bad (good) the year has been, we always remain optimistic and hope next year will be good (better).   Market had its fair share of exciting events and experienced some volatility. In perspective,  some of the market drops were significant, but not catastrophic. In Jan STI was down around 25% from recent peak of 3,500. Significant no...

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Sembcorp Industries turning around soon?

The recent plunge in oil price has affected the oil and gas sector badly, which has rocked Semb Marine’s corporate performance. That, in turn, has dragged Sembcorp Industries’s earnings too, as marine business still contribute a significant chunk of Sembcorp’s revenue (about 45% as of Q3 2016). Sembcorp’s share price has not been spared and dropped more than 50% from $5.5 to $2.5.   However, under the doom and gloom has been a common narrative running behind the investment merit of Sembcorp: it is more than just a Marine company and it has a promising and growing utilities business...

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Frasers Centrepoint Trust Latest Acquisition

FCT acts fast. Hot on the heels of its quarterly results announcement 2 weeks ago where management hinted that they will be looking at acquisition of asset held and managed by their sponsor, they announced yesterday that they will be buying the Yishun 10 Cineplex from Bonvest Holdings. Yishun 10 houses the only Cineplex – Golden Village in Yishun, and several other retail shops such as Koi, Singpost, Arnold’s Chicken etc. It is located just across the road from Northpoint. It is not a big property and acquisition to be honest, as its NLA is just 10k square feet,...

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Some Thoughts on Collecting Good Stuff

In my earlier post, I blogged about having the ‘collector’ mindset to view stocks of strong companies as collectors item worthy to be collector slowly and patiently during market mini crashes like the ones we had in Jan-Mar this year – COLLECT GOOD stuff at CHEAP price. More recently during the Brexit vote, market dropped again and I viewed it as a good opportunity to deploy some cash to collect some shares. So what have I got this round? Comfort @ 3.65; UOL @ 5.4; SPH reit @ 0.935; M1 @ 2.42; HSBC @ HKD 50.5 Fortunately, these holdings...

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How Do I Decide To Sell

Personally I am faced with less problems when buying a share, compared to selling. As shared in an earlier post, I try to buy at a price so low that I do not have to worry about selling. However, it does not mean that you are spared from the mental struggle or sense of uncertainty experienced when you try to sell. Kim Iskyan discussed about “Stockholm Syndrome” in this article, which is basically a buyer-remorse condition where one  questions himself whether the purchase was a right decision, and whether the buying could have been executed better, after the purchase....

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