Author: SG Wealth Builder

OCBC shares worth $50?

Ranked Top 100 Stock Blog by Feedspot Subscribe to Blog via Email Is OCBC shares worth $50? Maybe even more. Recently OCBC made waves when it announced the offload of its 33.5% shares in United Engineers (UE) to a consortium led by Yanlord Group and Perennial Real Estate Holdings. The block sale consisted of shares held under OCBC, Great Eastern Holdings and the founding Lee Family. News of the deal propelled OCBC share price to a 5-year high and triggered a mandatory takeover offer for the rest of United Engineers shares. The United Engineers Deal The offer price for...

Read More

Is Old Chang Kee a value trap?

Since young, I have always enjoyed eating Old Chang Kee’s signature curry puffs. The history of Old Chang Kee, however, goes as far back as 1956 when it was just a small stall in a coffee shop outside former Rex cinema. In 1986, the current chairman, Han Keen Juan bought over the control of the company and subsequently transformed the stall into a listed company. On looking back, Old Chang Kee is a story of coming of age and its brand is synonymous with Singapore food heritage. With a humble beginning, Han Keen Juan has certainly grown the Old...

Read More

Judgement day for SPH?

It certainly seems like Judgement Day for SPH as the media conglomerate’s shares plunged to an 8-year low. The share price free fell to $2.95 on 18 July 2017, below the $3.00 support level. During the dark days of the Great Financial Crisis, the lowest trading price was $2.40. But hey, we are not having a major market crisis now, aren’t we? What’s going on and what’s wrong with SPH? Should investors run for their lives? Like fellow SGX-listed SingPost, SPH belongs to the old economy. Both are struggling to adapt themselves in the new digital era. Technology has...

Read More

Understanding Joint Tenancy and Tenancy-in-Common

In my previous article, I shared the strategy of using 99-to-1 Tenancy-in-Common to avoid paying hefty Additional Buyer Stamp Duty (ABSD) for investors looking at buying second property. Some followers were skeptical while there are those who may not seem to grasp the concept. As such, this follow-up article will explain in more details on how the strategy works. Before I proceed, readers must understand that 99-to-1 Tenancy-in-Common only works for Executive Condominiums (EC) and private properties. This is important to note because in April 2016, HDB has banned the transfer of HDB flat ownership among married couples. So...

Read More

99-to-1 Tenancy-in-Common

During the Singapore’s Budget this year, many Singaporean investors were disappointed that the government retained the current Additional Buyer Stamp Duty (ABSD). However, instead of wishing for the stamp duties to be reduced or removed, do you know you can actually beat the system without paying an arm or leg? In this article, I will share with readers on how to avoid paying the ABSD with Tenancy-in-Common. Note that the strategy I am sharing here is not “decoupling” (Resale part-share) for HDB, a popular move which involves the transfer of HDB ownership between married couples. In any case, Singapore...

Read More

NetLink NBN Trust Biggest Risk

On 10 July 2017, NetLink NBN Trust registered its final prospectus with Monetary Authority of Singapore, paving the way for the biggest IPO of the year. The offering price is $0.81. Initially, the offering price was estimated by analysts to be between $0.81 and $0.93. The low-end of the offering price could be indication of weak demand from the big boys. With net asset of $3.07 billion and total units of 3.02 billion, the Net Asset Value (NAV) is about $1.01. Given that the offering price is only $0.81, NetLink NBN Trust IPO is considered surprisingly under-valued. It should...

Read More

United Overseas Bank (UOB)

Ranked Top 100 Stock Blog by Feedspot Once upon a time in Singapore’s banking fraternity, there were four local “Heavenly Kings” – Development Bank of Singapore (DBS), United Overseas Bank (UOB), Overseas Union Bank (OUB) and Oversea-Chinese Banking Corporation. They are all household names and I believe most Singaporeans have experiences with their bank products or services. On looking back, the devastating effect of the Asian Financial Crisis in the nineties and the industry liberalization brought forth by the new Monetary Authority of Singapore (MAS) regulations changed the banking landscape forever. Through the years, UOB has staved off these...

Read More

Three things about NetLink Trust

The biggest IPO since 2011, NetLink Trust will be listed in SGX main board at offering price of between $0.80 and $0.93, raising between $2.3 billion and $2.7 billion. When investing in stocks, always invest in companies in which you understand their business models, their products and services. It is also important to assess the companies’ competitors and financial performances. This article will share three things about NetLink Trust which I hope investors will find useful. NetLink Trust background Most Singaporeans may be more familiar with OpenNet, the predecessor of NetLink Trust. In 2008, OpenNet was owned by a consortium...

Read More

Raffles Medical Group’s Return on Equity

Ranked Top 100 Stock Blog by Feedspot On 24 April 2017, Singapore’s leading private healthcare provider, Raffles Medical Group, announced that it is developing its second international tertiary hospital in China. When completed in 2018, RafflesHospital Chongqing will be able to serve local and expatriate patients in the western part of China as well as foreign patients from Central Asian republics. Meanwhile, construction of RafflesHospital Shanghai has commenced and is proceeding smoothly. For the past few years, Raffles Medical Group has been building its investment moat by increasing number of clinics, expanding its flagship hospital in Singapore, refurbishing existing...

Read More

The Day Creative Technology Ltd sued Apple Inc

In 2006, Singapore-based Creative Technology Ltd sued Apple Inc for patent infringement over a menu interface for an MP3 player. It was an epic corporate story of David versus Goliath and pitted Singapore entrepreneur, Sim Wong Hoo squarely against the late Steve Jobs. But the outcome was beyond what most people had expected. In fact, Apple had actually agreed to pay Creative Technology Ltd a massive USD100 million to settle the suit. The battle against Apple marked a turning point for Creative Technology, which at that point of time, had been searching for another holy grail to replace its...

Read More

Noble Group new white knight?

Can founder Richard Elman save Singapore-listed, Hong Kong-based commodity trader, Noble Group? This is the most pressing concern for shareholders as the crisis-hit company battled crisis after crisis for over two years. The latest news on investments from a surprise Middle East investment group, Goldilocks Investment Company (GIC), must have brought a huge relief for shareholders. While I certainly do not deem GIC as Noble Group’s new white knight, the latest investment is a sign of endorsement for Noble Group. GIC is part of Abu Dhabi Financial Group, a diversified global group with asset management of USD5 billion. The...

Read More

Can SingTel fight gravity?

Hailed by many analysts as Asia top telecommunication company, SingTel is facing heightened competition from emerging players seeking to knock it from the perch. Australia’s TPG Telecom stunned the market by not only becoming Singapore’s 4th telecommunication player in late 2016, but also Australia’s 4th telecommunication player in early 2017. Given the increased competition in Singapore, Australia and India, can SingTel fight gravity? To put things into perspective, SingTel did not sleep walk into the dominant position in Asia by chance. Listed in SGX main board back in 1993, the company embarked on a slew of overseas acquisitions spree,...

Read More

You can sell combs to monk

The story of how to sell combs to monk is an age-old story that never fails to inspire me to become a better version of wealth builder. Most people regard it as a motivational story for salesmen to achieve sales target. But I see it as otherwise because the learning points can also be applied in investing, career development and entrepreneurship. I have adapted the story for the sake of my followers. But before proceeding, readers must note that this article is not meant to mock any religion nor aim to make fun of any professionals. My objective is...

Read More

Temasek Holdings’ Pre-IPO investment in HRnetGroup

On 16 June 2017, HRnetGroup’s IPO on the SGX Mainboard created much hype among retail investors and local finance bloggers. Many investors had wanted a slice of the IPO because of the excellent financial performance indicated in the prospectus. But many investors may not be aware of Temasek Holding’s Pre-IPO investment in HRnetGroup. What is pre-IPO and does it matter to you from the perspective of a stock investor? Read on to find out how the big boys make money in this game. Fundamentally, how big boys like Temasek Holdings make money is very different from retail investors in...

Read More

Retrenchments for Singapore Airlines?

After announcing a recent shock quarterly loss of $132 million, CEO Goh Choon Phong hinted that there could be retrenchments for Singapore Airlines (SIA). Arising from the first quarterly loss in five years, the premium airline has set up a Transformation Office to conduct a wide-ranging review, encompassing network and fleet, product and service, and organisational structure and processes. Upon closer examination of the financial results, the explosive loss suffered by Singapore Airlines was largely due to the provision of $132 million for the EU court fine slapped on SIA Cargo. More than ten years ago, SIA Cargo was...

Read More

Like us on Facebook

Follow us on Twitter