Author: Investment Moats

Toll Roads Face Government Headwinds

We talked over here a fair bit about Toll Road companies like MIIF and China Merchant Pacific having a good yield with a good moat. Well recent government actions have seem to reduce the moats pretty well. Already MIIF’s Hua Nan Express way have indicated that they will have their toll reduced by the state government, so this is not just a risk analysis but a reality. Recently China have declared 20 out of 365 days, during holidays these roads will all be toll free for passenger vehicles. The sad thing is whenever we find something good, it seems...

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Micheal Belkin–Bearish but I like his argument

Belkin’s model of earnings and revenue must follow stock prices is something very fundamental. It has helped him with past bear market turns and this time around he is predicting another one in 2013. Its good to listen to a view that isn’t technical based. And I am leaning towards this view. Earnings are not akin to a bull market. But there is every chance stagnation could happen. Here is his document Michael...

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Apple’s infallibility versus that of Sony $AAPL $SNE

There seem to be a very good trade that the fund managers are playing, selling Apple at a high and buying back at a lower point. This stems from the mindshare amongst managers and retail investors alike that Apple is a good company and have a loyal group of followers Greg Schnell have a good post comparing the situation of Apple to that of another company that used to hold a high mindshare: Sony. Back during my time in the 1990s, the Trinitron TV is a must have. Any TV pales in comparison to it, whether it is real...

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Investors pour into Vanguard Index Funds when the fund market is shrinking

We used to think that the average investor are the dumb money since they are likely to herd and make bad investing decisions. But apparently the dumb money are pouring so much into Vanguard’s index funds. It does show that perhaps they have given up on active managers showing any ability to out performed the markets. Active managers have underperformed this year probably being under invested. And indexers are doing pretty well since they are 100% in it. It is really a recency effect, but I wonder if they finally see that cost matters. Vanguard has benefited as investors...

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Having the Cash Option

There are days when I feel that I didn’t really deliver as a blogger writing about investing. The time is probably now. I could have written about the next best stock that perk up my interest and you should take note as well. Sadly, due to studies and work, I cannot do that well recently. It becomes an issue personally because new cash set aside for the portfolio cannot find  a home. Parking the cash The thought of trying to find a place to park them, the feeling of missing out is hard to shake off. Investors find cash...

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Religare Health Trust–a good buy?

In an environment where everyone seem to be reaching for higher yield, an India Healthcare business trust looks to be an easy sell. Its even a better sell if its marketed as 8-9% yielders. The prospectus can be [view here] This business trust invest in 11 healthcare related establishment and earned income by leasing them to their Sponsor Fortis. In the future they would like to invest in Asia and Australia healthcare assets. Positives Plus points are that the lease terms of healthcare assets are long term 15 years with the view of renewing for another 15 years. Healthcare...

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REITs will mean revert

Many think that just because of  a good year run, REITs are the go to investment. I don’t believe this is the case. Sectors take turns to outperform. Think about whether REITs can keep going up at this pace. I fear many are switching to this sector due to low interest rate and that they are the most easily understood...

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Dividend Withholding Tax Status on Hong Kong Listed China Shares

We mentioned in past articles that international stocks are susceptible to a percentage of withholding tax, which will reduce your dividends. For a breakdown on different countries and their withholding tax reference, take a look at this article. I was recently interested in some China shares listed on the Hong Kong Stock Exchange.  Since they do distribute dividends, I am not sure if a 10% withholding tax will be levied. However, I found this article here dated 18 July 2012 that seems to indicate the withholding tax since 2009 is only 5%: China’s State Administration of Taxes (SAT) has...

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Singapore LTE opportunities for Singtel, M1 and Starhub

Some notes from The Edge article on NFC payments and Mobile Remittance. This will interest Starhub, Singtel and M1 investors. Currently device maker grabbed the larger share of the revenue pie The future for telco is to turn smartphone into a conduit for mobile wallet, digital coupons, media, entertainment content Emerging and developing markets are essentially pre-paid, low on credit cards. Telecom with vast footprint in many countries like Singtel can tie up to create remittance services The telecoms are also banking on proximity payments such as NFC NFC will only work if there are adequate NFC enabled device....

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First REIT proposed to buy MD Property and SHMK

After a long time First REIT finally proposed to make an acquisition. Full details can be [found here] Purchase price: SGD $142 mil Valuation: SGD $160 mil Pretty good purchase at 10% below valuation. This will be finance by a mixture of debts and private placement. For the folks that are not sure how these placements and debt work out [check out this article]. It explains when placements are good and when is bad. This will be the one called partially funded by debts. Incidentally, Bow Spirit stated that one of their reasons of purchase is to buy two...

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Philip Capital’s Anthony Hoe on REITs

Anthony is rather reluctant to invest in REITs according to The Edge: Interestingly, Hoe is reluctant to invest in REITs even though they are widely seen to be low risk instruments. The way he sees it, REITs are designed to deliver most of their returns through regular dividend payouts, but they still expose investors to the vagaries of the property sector. “No matter what, whether a REIT does well depends on the outlook. REITs do well when the outlook for the property market does well. If the outlook turns weak, there will be pressure on REITs.” Indeed, REITs came...

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Best Free Stock Portfolio Tracking Spreadsheet Software

I set about creating a way to track my own dividend stocks and the response from users have been fantastic. I think that more can benefit from knowing this and know that I will look into ways to improve upon it. Here are some of the reasons why I think you should give it a try. It is FREE Unlike Microsoft Excel, or another paid app, this stock portfolio tracker makes use of Google Spreadsheet. All you require is a Google Account. Stock Prices Auto Updates Periodically Your stock prices gets pulled from Google Finance or Yahoo Finance. The...

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