Author: SG Wealth Builder

StarHub share price plunged to 13 year low

On 21 June 2018, StarHub share price plunged to a 13 year low. Trading at $1.64, this popular stock is a shadow of its former self. Even during the dark days of the Great Financial Crisis in 2009, StarHub share price had never dipped to such abysmal level. Certainly, nobody could have predicted Starhub share price would suffer from such a devastating run. When it comes to technology disruptions, it is always a wild card. In the good old days, StarHub can bank on SMS, IDD and Pay TV...

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Does Hyflux deserve a comeback like OSIM?

Can Hyflux stage an incredible comeback like OSIM? Or rather, does Hyflux even deserve to be rescued? The embattled water treatment specialist has obtained a court protection to restructure its outstanding debts. It has also stopped payment of distribution on its $500 million 6.00% Perpetual Capital Securities which was due on 28 May 2018. The swift turn of events caught shareholders by surprise and marked a treacherous chapter for Hyflux. Under current circumstances, investors who pumped in their hard-earned monies on the shares and perpetual bonds have every right...

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SingTel share price plunged to six year low

After leading SingTel to achieve an impressive record net profit of $5.45 billion for FY2018, CEO Chua Sock Koong must be stumped for words when SingTel share price plunged to a six year low on 18 June 2018. At $3.17 a piece, SingTel share price is technically entering into a bear mode territory. In the context of the current SingTel share price, is this counter a value buy or could it be a falling knife? Many investors had pointed that the entry of fourth telco player could have...

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Buy private property to protect wealth

The mission of SG Wealth Builder is to build and protect wealth. Real estate, especially private property, offers one of the most viable routes to reaching financial freedom for many wealth builders. In this article, I will discuss the outlook of both public and private property in Singapore. Hard truth about HDB flat In 2017, Minister of National Development Lawrence Wong rocked the real estate market by clarifying that not all older HDB flats would be eligible for the selective en bloc redevelopment (SERs) scheme. Of more chilling is that...

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Fairytale of Mapletree Commercial Trust

With a market capitalization of $4.53 billion, Mapletree Commercial Trust (MCT) is the largest REIT sponsored by Mapletree Investments Pte Ltd. Temasek Holdings has a majority stake of 34.71% in this REIT while other big boys like AIA Group and NTUC Enterprise own stakes amounting to 4.92% and 2.42% respectively. With such stellar group of major shareholders, Mapletree Commercial Trust is certainly an attractive real estate investment trust. But could it be an investment trap or potential multi-bagger? Since this REIT debut in SGX Mainboard in...

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5 reasons on why I decided not to invest in Astrea IV bonds

It seems like yesterday when more than 10,000 retail investors in Singapore lost more than $500 million during the Lehman Brothers Minibond saga. That was in 2008. Fast forward to 2016, many accredited investors lost at least $250,000 after investing in Swiber junk bonds. And then in May 2018, Hyflux stunned the market by halting the trading of its $500 million perpetual bonds and the payment for the coupon payments. Given the spate of bonds tragedies suffered by investors in recent years, one must be wondering if “this time it is different” for Astrea IV bonds. For sure, it...

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SembCorp Marine to ride out the storm?

It had been a harrowing ride for SembCorp Marine as the world number 2 oil rig builder faces crisis after crisis in the aftermath of the global oil slump. The past few years had seen Sembcorp making an explosive impairment amounting to $609 million in FY2015, a legal battle against Marco Polo Marine and the intriguing possible link to Sete Brasil corruption scandal. However, in early 2018, United States President Donald Trump had proposed an aggressive plan to transform the country into a superpower energy plan. Against the backdrop of improving oil price, can SembCorp Marine ride out the...

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But my boss told me I am safe from retrenchment!!

In Singapore’s context, there are only three category of jobs that are immune from retrenchments. Successful entrepreneurs, civil servants and full-time homemakers do not have to fear the dreaded retrenchment. If you have chosen to climb the corporate ladder, this is the golden rule you must always remember. The second rule is never to forget the first rule. With disruptions brought forth by technologies and the emergence of new business models, it is definitely not “business as usual” for many companies. Changes in the industry will only gather pace and this means that businesses would have to evolve as...

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Understanding Singapore REITs

For most retail investors, real estate investment trusts (REITs) offers the best alternative to owning a real estate without the need of forking obscene amount of cash or the hassle of dealing with difficult tenants. But of course, like all investments, there are always pitfalls to watch out for when investing in REITs. In this article, I will share my insights on investing in REITs. Over the years, the landscape for REITs had evolved significantly, with the change in the regulatory gearing limit, asset enhancement initiatives by the bigger REITs...

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How to Explain an Employment Gap on Your Resume

Applying to jobs after a period of unemployment can be intimidating. The application pool is already so competitive across the board, you’re worried this might be a red flag for potential employers. You can let out a sigh of relief because a gap in employment doesn’t have to be catastrophic to your application. Taking time off from one time to another is normal. Maybe you were caring for a child or relative or you went back to school. Maybe you simply decided to travel and see the world or focus on a side project. No matter why you left...

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New chapter for Pan-United Corp

It is a momentous year for Pan-United Corp as the group finally competed its de-merge of its port business which it started in 1997. Under Xinghua Port Holdings Ltd (“Xinghua”), the business was successfully listed on the Main Board of the Stock Exchange of Hong Kong on 12 February 2018. The past year had been a revelation for Pan-United as the construction company restructured its businesses, implemented capital reduction, proposed distribution of 1-for-1 Xinghua shares to existing shareholders and completed a rights issue in 2017. In light of these major...

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SembCorp Industries should invest in Hyflux Ltd

On 22 May 2018, Hyflux rocked the market by announcing that it is seeking High Court’s protection to reorganise their liabilities and businesses. Meanwhile, Hyflux also requested for a voluntary trading suspension of its shares and securities listed on SGX. But the biggest bombshell had to be the non-payment of the distribution on its $500 million 6.00% Perpetual Capital Securities, which will be due on 28 May 2018. Previously, I have written an article on Hyflux perpetual securities and highlighted its risks. Readers can subscribe as members to access that article for reference. The perpetual securities were selling like...

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Nightmare over for Cache Logistics Trust?

Like many of its peers in the industrial REITs, the past few years had been an absolute nightmare for Cache Logistics Trust which saw the logistics trust facing declining occupancy rates, negative rental reversions and market oversupply issues. Apart from the challenging operating environment, Cache Logistics Trust was also involved in an intriguing legal battle with Schenker Singapore in relation to an investment property at 51 Alps Avenue. And then there was the huge uncertainties arising from the acquisition of its sponsor, CWT Limited, by debt-laden Chinese conglomerate HNA Group. But recent data revealed that the industrial REITs may...

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Why I would not invest in Ascendas REIT

Being Singapore’s first and largest listed business space and industrial real estate investment trust, Ascendas REIT has certainly come a long way. From eight properties valued at around $600 million in 2002, the Manager has grown the REIT to a market leader with total assets of about $10.4 billion, comprising 100 properties in Singapore and 31 properties in Australia. With such stellar track record, Ascendas REIT is definitely worth taking a look. But the abrupt resignation of former CEO Chia Nam Toon in November 2017 had raised eyebrows among investors. After all, Mr Chia had joined Ascendas REIT for...

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Sheng Siong share price surged on surprise $100 million investment

At a time when Dairy Farm is selling its 7-Eleven stores in Singapore, arch rival Sheng Siong’s stunning financial performance attracted $100 million from Mondrian Investment Partners Limited which acquired 99,000,000 ordinary shares of Sheng Siong from the company founders. With a Price/Book Value of 5.3 and P/E of 21.7, is Sheng Siong share price inflated? Apparently, Mondrian doesn’t think so. Mondrian Investment Partners, founded in 1990, is an independent global investment manager with offices in London and Philadelphia and a value-oriented, defensive investment approach. Given its investment mandate, Mondrian must have felt that Sheng Siong share price was undervalued,...

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