Author: Compounding Wealth Through Sensible Investing

5 Steps to Manage Risk in Shares Investing (Especially beginners!)

In share investing we always talk about managing risk, which may sound rather abstract. The objective of managing investment risk is to minimise the possibility of your portfolio running into huge, irreversible loss. If one’s overall portfolio is down by 50% on paper, his funds would be stuck for an extended period and not able to invest somewhere else profitably. The opportunity cost is immense. Worst case would be an investor who can’t stand the drop and sell out, his previous good returns earned during market rise (like now) would have been emptied. Besides financial loss, it would deal...

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Case Study – Frasers Ctrpt Trust Investment Returns

Changi City Point My experience with Frasers Centrepoint Trust (FCT) since 2013 has been a fruitful one. It may be timely now to review what is the actual return. For an investment with cash dividends at different dates, plus my several purchases, IRR is a suitable measurement  as it takes into account actual out and inflow of cash. FCT Share Price Performance since May 2013 In this period, FCT’s highest price was around $2.35 in May 2013. It dropped 30% to around $1.65 in early 2014, due to initial news on Fed’s tapering of QE. Subsequently, it had major...

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M1 or Starhub??

M1 and Starhub are household names with close to 50% of Singaporeans being their customers. They are also popular stocks among investors. But we know that the telco sector has seen a bit of shake-up recently, with new players emerging – Circles.Life and TPG. Are M1 and Starhub still good investments? I studied their latest 3Q earnings to find out more. 3Q Earnings Snapshot Figures obtained from M1 and Starhub Q3 FY17 Earnings Results M1 managed to eke out a small increase in revenue and EBITDA in 3Q over 2016, with both numbers rising by 1% and 1.3% each....

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3 Steps to Start Wealth Management

A financial month of a working adult would typically look something like this: receive salary in bank account go around daily necessary expenses eg. food, transport, loan payments have discretionary spending eg movies, shopping, travelling etc.  keep the remaining amount in a bank saving/deposits product wait for next salary While such approach is a logical one and easiest to embark on, it is not ideal for someone striving towards a secure financial future and comfortable retirement. One needs to take a holistic look at his entire wealth plan and start taking suitable actions. It is essentially allocating our money...

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Thoughts on Managing One’s Cashflow

In my course of work I come across many people who understand the importance of investing, intend to invest, but are taken aback by the capital required to start. Indeed, one needs a sum of money to start investing, to earn meaningful returns and diversify their portfolio. But it need not be an insanely large amount, and there are plans and products to lower the entry barrier for beginners, such as regular savings plan and Exchange Traded Fund. I share my experience of how I accumulate an amount by properly managing my salary, channeling them to the different bank...

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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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