Author: Financial Horse

Astrea V Balloting and Allocation Results

So the Astrea V balloting results are out and they’re pretty interesting. This is Astrea V: The Issuer received nearly S$820 million in valid applications as at the close of offer, 12 noon yesterday, from a total of 30,816 applicants. This equals 4.5 times subscribed. By contrast, Astrea IV was: The Issuer received nearly S$890 million in valid applications as at close of offer by noonyesterday. This equals 7.4 times subscribed. So both Astrea V and Astrea IV received roughly the same number of applications, but becuase Astrea V has a much larger offering size, it was less oversubscribed....

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Top Reads this Week (16 June)

Rounding up top reads from around the web, including articles shared by fellow investors in the Financial Horse Facebook Group. Embattled stock-picker Neil Woodford is struggling to stem outflows from his remaining open fund, with Hargreaves Lansdown dealing a major blow by pulling £45m this week. Woodford’s Income Focus Fund has shrunk by 25% since June 3, when the fund manager made the shock decision to suspend trading in his flagship Equity Income Fund. The move trapped thousands of customers’ investments for at least 28 days and sparked an exodus from his last openly traded fund. Trade War Spurs 1,360% Investment Jump in...

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Top Reads this Week (9 June)

Rounding up top reads from around the web, including articles shared by fellow investors in the Financial Horse Facebook Group. Shangri-La Dialogue: Lee Hsien Loong on why US and China must avoid path of conflict (The Straits Times) US-China relations will define the tenor of international relations for years to come. We hope the US and China find a constructive way forward, competing certainly, but at the same time cooperating on major issues of mutual interest. One US official recently defined the clash with China as “a fight with a really different civilisation and a different ideology”. Others observe...

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Are Singapore REITs Overvalued right now?

So remember how I wrote an article last week saying that Singapore REITs are pretty overvalued right now? Well, since then, REITs have absolutely exploded in prices. To illustrate – Mapletree Commercial Trust has gone up from 1.91 to 2.02 in the span of a week, a whopping 5.7% increase. I received a couple of queries from readers on this, that I’ve set out below on an anonymous...

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Top Reads this Week (2 June)

Rounding up top reads from around the web, as shared by fellow investors and myself in the Financial Horse Facebook Group. How the Tech Giants Make Their Billions (Visual Capitalist) Let’s dig deeper, and see the differences in how these companies generate their revenue. You are the Customer In the broadest sense, three of the tech giants make money in the same way: you pay them money, and they give you a product or service. Beyond the China-U.S. Trade War (Ray Dalio) As I have explained for a while, the U.S.-China conflict is much more extensive than a “trade...

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Where to invest money in Singapore right now?

So I was calculating my net worth allocation for the FH Net Worth tracker recently. And I was really surprised by the amount of cash I was holding. In fact, my cash + bonds position was more than half my total investible assets. Now this was an intentional move because I feel we are very late in the credit cycle, so I wanted to increase my cash position and position more defensively. But still, I was taken aback by how much cash I was sitting on uninvested. So I had a serious look at the various asset classes in...

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Top Reads this Week (26 May)

Rounding up top reads from around the web, as shared by fellow investors and myself in the Financial Horse Facebook Group. Self-made millionaire: This is the No. 1 way to get rich—and most young people are not doing it (CNBC) If you’re in your 20s or early 30s, there’s still time to set aggressive investment goals. The first step is to understand what your excuses (or what I call “invisible scripts”) really mean. Invisible script: “There are so many stocks out there, so many ways to buy and sell stocks, and so many people giving different advice. It feels overwhelming.“ What...

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Eagle Hospitality Trust: Balloting Results and IPO Price Drop – What went wrong?

Okay, so I was planning to write another article today. Then I heard about the absolute disaster that was Eagle Hospitality Trust’s IPO, and I knew I had to drop everything and write on this. In all my years’ experience in capital markets, and as an investor in Singapore, I have never seen an SGX main board listing, and a REIT with DBS as the lead issue manager, flop this hard. That’s how bad it was. Basics: What Happened Balloting Results I’ve extracted this from the Eagle Hospitality Trust Balloting Results Announcement (emphasis mine): At the close of the...

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Launch of Temasek’s Astrea V Secured Fixed Rate Bonds

I was really excited by last year’s Temasek’s Astrea IV Bonds. In fact, since this site was created, the 2018 Astrea IV Bonds was the only investment to have ever received a full 5/5 Financial Horse Rating. That’s how much I like them. Of course, because of their red hot popularity, everyone who applied only received a miserable S$4000 allocation, myself included. So imagine my surprise when I was given a heads up that there will be a new round of Astrea bonds coming, Astrea V! I knew that there was a lot of talk about a new round...

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Top Reads this Week (19 May) + MoneyOwl Symposium

Rounding up top reads from around the web, as shared by fellow investors and myself in the Financial Horse Facebook Group. The $1.9 Trillion Fund Giant With a Crazy Idea About Investing (Bloomberg) This year the amount of money in passive U.S. equity funds is expected to surpass active funds for the first time, with most new cash flowing into the most basic ETFs. It’s been a trying decade for Rob Lovelace. Capital Group Cos., the money-management firm his father’s father founded in Los Angeles during the Great Depression, took a beating after the financial crisis. For Lovelace, that trend only reinforces...

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Eagle Hospitality Trust Review: Better than ARA US Hospitality Trust?

To be honest, I actually wasn’t planning to do a review on Eagle Hospitality Trust. But then I realised it was a long weekend, so I figured what the heck. Anyway after going through the prospectus, it turns out that Eagle Hospitality Trust is similar to ARA US Hospitality Trust in many ways. So a lot of my comments in the review on ARA Us Hospitality Trust will hold true here as well, such as: Poor alignment of interests between sponsor and unitholders – Sponsor only holds a 15% stake post listing. No big institutional cornerstones – this IPO...

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How to buy Vietnam stocks for Singapore investors? Are they a good investment?

One of the most common questions I get on this site is “What is the best way to invest in Vietnam?” and “Are Vietnam stocks a good buy?” Now I was in Vietnam the past week, and I must say, I really get the popularity of this question. Vietnam in many ways looks and feels like China was back in the early 2000s, and a lot of the economic and demographic data backs that up. If any of the promise about Vietnam turns out to be true, there’s going to be massive upside here for any foreign investor. Basics:...

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3 Quick Thoughts on the US China Trade War

I’ve been following the US China Trade war with much interest, and I wanted to take the opportunity to pen down 3 quick observations: 1. China is using this Trade War to define their relationship with the West for the 21st Century To recap, in 2018, Trump levied tariffs on China, China retaliated, and this tanked the US and Chinese economy (and stock market). China and US agreed to a brief “ceasefire” in which they spent 6 months negotiating a “deal”. During this time, China also injected large stimulus into their domestic economy, the Feds paused all rate hikes...

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How Mighty Companies fall, and what to look out for as an investor

*Note: This post first appeared on my Patron page. If you enjoyed this and would like access to similar such posts, do consider signing up!* Was reading the book “How the Mighty Fall” by Jim Collins recently, and I thought it was good enough to summarise here for the benefit of all Patrons (have made it available to all Patron tiers). Essentially, this book looks at how once-mighty companies like Kodak can fall so far so fast. It examines the downfall of great historical companies, and splits their decline into 5 stages. In all stages except for Stage 5,...

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