Author: Compounding Wealth Through Sensible Investing

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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Collect the Good Stuff

Past 2 months were indeed a wild ride for investors. We witnessed a very volatile start for the year, continuing from last year’s fall stemming from oil rout and worries about China’s economy hard landing and the collapse in China A Shares.   But all of a sudden, the market sprang back to life past 3 weeks. And it came back strong, rising fast and furiously to end at 2828 yesterday, an almost 12% rise from the low point of 2528 few weeks ago.   It was at this time that investors, including myself, found that their investment philosophy,...

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This could be the real thing..

Market tanked again today, following China bourses that dropped more than 7% which triggered the circuit breaker at Shanghai and Shenzhen. From a STI high point last year at about 3550 pts, till the current 2740 pts, STI has dropped by 23%. As of now, it has broken the previous low of around 2770 last Sept. Some of its component stocks fared even worse. Keppel wrote a new 52w low today, at $5.91 or 5% lower than previous 52w low of $6.2; Sembcorp broke its key support $3, currently at $2.76. So what would the majority of retail investors,...

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The Real Life Roller Coaster

Spore market has been volatile in the past few weeks. Impacted by the recent China market plunge, and the unexpected devaluation of the Yuan, STI had fell around 12% off its peak of 3,539 few months ago. It has been a roller coaster ride. I cant help but draw some parallel between the market conditions to the roller coaster ride that we enjoy so much in amusement parks. In these theme park roller coaster, visitors queue up to join the ride. There is a starting point when people board the train, and there is an end point after the...

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Lum Chang waking up?

Lum Chang has been one of my key holdings, constituting about 9% of my portfolio. I first invested in the company back in Oct 2013 at a price of 0.34, attracted by its relatively large discount to its NAV of 0.48, around 29%. It also had quite good dividend yield of 5.8%. The company is definitely not as largely followed by the construction firms that get the limelight with their large contract wins – the ah beng ah sengs such as Lian Beng, Hock Lian Seng, Tiong Seng, Chip Eng Seng etc. The company is a low profile construction player...

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Riverstone Holdings FY14

Riverstone Holdings is positioned as a growth stock in my portfolio. Being a growth counter, its earnings had not disappointed in the past few quarters. Similarly, its share price has seen a nice increase to the current $1.18. At this price, it is valued at PE 19.52 based on 2013 earnings. (I previously blogged about Riverstone here) For my dividend and assets holdings, I usually just glance through the top line results and focus on the balance sheets strength, amount of ops cashflow statements and ability to continue paying dividends. However, for my growth shares, it is important to...

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2014 Review and 2015 Targets

2014 has been an eventful year. I got my house and got married. So the previous few years’ savings had been well utilised for the 2 big events. Investment wise, I did not achieve the yearly target of 12% return per annum. It is probably about 9% or so. The focus was on establishing positions in low PE and relatively unheard of companies. These shares usually will take a longer period to realise its values, hence a one year time frame may be too short to determine the true returns. Based on my investment journey this year, there were...

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So Market Didnt Crash

So much so for the bear market that was widely anticipated to kick in with the recent market correction. It turned out that DJIA dropped about 7% before swinging up to close at historical high last night, all in the span of a month. I read about many fellow investors in forum dishing out warnings and cautioned others to seek cover. Some urged others to cash out the shares that have earned them profit to raise the level of cash for use during the impending crash. Others shouted out to cut loss and sell out regardless of amount loss,...

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AP Oil

AP Oil is a company that engages in distribution and production of lubricating oil used in automotive, shipping and industry machinery. The company also produce specialty chemicals used in shipping and oil/gas industries for cleaning and maintenance purposes. Its products are marketed throughout Asia and as far as Middle East. It has been listed on Catalist in 2001 and was upgraded to the Mainboard in 2003. The company appeared in my radar due to my chat with a friend who invests like Walter Scholes and specialises in unearthing stocks trading way below the RNAV. He impresses with his depth...

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What methods had I used

Come to think of it, I have been seriously investing since 2011. Although my first share purchase was done back in 2007, a few lots of Thai Beverage, which would not count as proper investment as there was no share analysis and business model study. It was more of a speculation. Over past couple of years I have bought shares based on different investment strategies, including net assets play, growth stocks, dividend counters, swing trading based on basic technical analysis such as MA, support and resistance levels. There had been varying degree of success with these strategies. Let me...

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Which Investment School of Thoughts

I attended a course today: ‘The Value Investing Mastery Course’ conducted by BigFatPurse. I believe BigFatPurse need no more introduction, as it is a well known blog with a wealth of information among the local financial blogger scene.  Coincidentally, I read Cheerful Egg latest blog post on way back home after the course, on the pros and cons of different investment strategies out there and why he thinks passive investment through an ETF is the best deal for retail investors like you and me. Let me distill my doubts a little and put them into words. I have been...

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Ah.. That Long Term View Thingy.

Warren Buffet, ‘If you do not intend to hold on to a stock for 5 days, do not even think about holding it for 5 days.’; ‘It is foolish to expect a stock price to rise the next day after you buy it.’ 冷眼‘建房子需要等五年,收割油棕需要等五年,做生意从开业到回本赚钱需要等五年,为什么买股票不可以等五年?’ Master investors had given us enough advice and wisdom on the need to have a long term view on stock investment, as shown in the couple of quotes shared above. However, such long term mentality is exactly what is missing in the investment process of majority of the retail investors. I was sharing with colleagues...

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