Author: Dr Wealth

Kingboard Copper’s $0.40 Cash Offer – To Take Or Not To Take

Following on the heels of the cash offer for GP Hotels, I would like to discuss yet another similar offer for a deep value (CNAV) stock that we had invested in previously. Kingboard Copper is a Hong Kong based company that is listed on the SGX. What made us invest in this stock It was in 2014 when we first picked up Kingboard Copper. The stock had a CNAV discount of 52% and POF score of 2. It had zero debt and was sitting on a mountain of cash totaling HK$1.1 billion. After deducting liabilities, Kingboard Copper still had...

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$0.365 Cash Offer For GP Hotels Shares – Koh Wee Meng Can Do Better

SGX has seen more delistings than IPOs recently. It is a matter of time one of the stocks that we own would be the target of a delisting attempt. True enough, founder of GP Hotels Koh Wee Meng has offered to buy back shares of his company at $0.365 per share. He has also announced his intention to delist the company. We want to present our point of view about this delisting and explain why, as shareholders of GP Hotels, we would be rejecting the offer. Background GP Hotels own and operate the economy-tier hotel chain, Fragrance. The chain...

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NikkoAM-Straits Trading ex-Japan REIT ETF : Should You Invest?

NikkoAM will be launching a new REIT ETF on SGX. The new REIT ETF named NikkoAM-Straits Trading ex-Japan REIT ETF is set to list on 29th March 2017. If you’d like to invest in REITs but are too busy to analyse individual REITs, this could suit you. But before you jump into it, let’s take a look at its features: Key features of the NikkoAM-Straits Trading ex-Japan REIT ETF Investment Objective: The investment objective of the ETF is to replicate as closely as possible, before expenses, the performance of the FTSE EPRA/NAREIT Asia ex-Japan NET Total Return REIT Index, or a similar...

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HDB Loans vs Bank Loans, which Housing Loan should you get?

What type of housing loan should I get ? If you intend to purchase a HDB flat, you have two choices regarding the financing- you can either opt for a HDB loan or go for bank home loans. There are pros and cons for each, and you should make your decision strictly based on your own financial status and needs. Let’s discuss the features of these 2 types of housing loans. HDB Loan Being a citizen of Singapore is the first and foremost criterion for availing a HDB loan. If you are applying for the loan as a group,...

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How well did S-REITs perform in 4Q16?

As part of our goal to help investors better understand REITs, we are starting a new REIT series that aims to give a good summary of REIT performance during every quarter. We hope that through this “Report Card Series”, you can better grasp the important macro trends and factors that impacts the performance of REITs. While the quarterly reporting for Singapore-listed equities is still underway, we highlight four notable REITs in the first of this series from the office, industrial and retail sub-sector. Manulife US REIT Reporting its first 4Q16 results since its IPO, Manulife US REIT rekindled investors’...

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Why your investing results will never improve

It seems that the average investor has the wrong information when it comes to investing in the stock market. Although one cannot logically dispute general concepts such as “buy fundamentally cheap stocks” and “buy low and sell high“, the typical investor doesn’t have an idea how to use these principles to improve their chances of making money. The problem lies with one group that is considered the primary source of investment information. The priorities of this group don’t align with those of the typical investors. In fact, beginner investors don’t receive the right kind of information to outperform the...

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Essential Terms that all Bonds Investors must know

Bonds are like IOUs. Borrowers (usually businesses) issue bonds to raise funds by reaching out to investors who will lend them the money for an agreed interest rate for a certain period of time. Bonds are a great tool for the income investor who wants to balance their portfolio to include assets beyond stocks. Before you even invest in bonds, here are the essential terms that you should know. Government bonds: bonds that are issued by a government. The securities with 1 year maturity are usually known as treasury bills.  Most government bonds are rated by credit rating agencies....

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International Healthcare Corp (IHC) – Shareholder Activism in Progress

We usually invest in beaten down stocks which can be an uncomfortable endeavour for most investors. We often hear remarks such as “there’s no volume, nobody buys them“, “earnings are bad, they lose money!“, “sunset business“, “good assets but never get unlock“, “bad management who do not give dividends” and “this is a value trap“. It is normal that most investors do not get what we are doing. Each investor should have their own investment style and approach as long as it works for them – delivering desired returns. We talk about our strategy so that the audience can gain a...

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4 Money Mindsets for My Kids to Grow Up To

Truth be told, I have been arrowed to write this article by the Boss. Left to my own devices, this is territory I would rather avoid. Unfortunately, being the only parent in the team (up till today at least), the least I can do is to pull some weight. Truth be told #2. This article is long overdue. We were supposed to publish it weeks ago. I have lots of excuses for it being so late but I will only banish one around. —> read the truth #3. Truth be told #3. Writing this article has been extremely difficult for me. There...

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This is why China is only just getting started

This article was first published by Truewealth Publishing. China gets a lot of investor blame. But it shouldn’t. In recent years, China has been a convenient go-to excuse when markets are bad. For example, China’s banking sector is in trouble; debt levels in China are too high; China’s real estate bubble is going to pop… and China’s rate of economic growth is unsustainable and slowing (and/or the data showing growth is fake): These storylines have put food on the table for financial journalists for years. There is a lot of truth in some of this. For example, it’s a...

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6 Personal Lessons from an ASEAN angel investor

Angel investing is immensely rewarding but for the new and uninitiated, the risks of angel investing can be phenomenal. Investing in a startup requires more than just research and analysis, there are a couple more skill set one would need to make the right call about a startup. Even then, there is no guarantee of success. We invite experienced Angel Investor, Der Shing to share some of the lessons he had picked up along his journey as an Angel Investor in ASEAN. Enter Der Shing Since 2009, my wife & I have been angel investing in the area of internet businesses where we have some experience....

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2016 Annual Letter To Readers Of BigFatPurse

The tradition of the annual letter started just last year. This year I would like to share more about what we have accomplished in 2016 and also provide some updates on our plans for 2017. I will section the letter into 4 main parts – Investment Performance, Investor Education, Acquisition and Reflections. Investment Performance The CNAV Portfolio continued to perform well despite an overall lacklustre stock market in Singapore and Malaysia. The Portfolio gained 10.9% in 2016 (as of 30th Nov) while the STI ETF remained almost flat. This further validated our approach and justified our stock picks. We have included the KLCI...

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