Author: SG Wealth Builder

Big boys targeting SingTel stock!

After suffering from heavy shelling for the past few weeks, SingTel stock recovered from multi-year low of $3.02 to climb to $3.24 on 10 July 2018. The latest technical rebound of SingTel stock must have left investors wondering if this blue chip has indeed bottomed out. Before rejoicing, it is important to note that the big boys, namely the institutional funds had been targeting SingTel stock for the past two months. According to Singapore Exchange (SGX) Institutional Fund Flow Monthly report, the month of May saw institutional...

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UOB stock to pulverise with new property cooling measures?

Could it be the straw that broke the camel’s back? Despite the challenging operating conditions and the toxic loans from the ailing oil and gas industry, UOB stock had an enthralling fairy-tale run, surging from $17.20 in 2016 to $30 in 2018. It certainly seemed that nothing can stop the explosive form of UOB stock price, until the recent short-selling activities and property measures halted the majestic run. Meltdown of UOB stock 6 July 2018 would be remembered as Black Friday for local bank and property stocks as Singapore government sent the market into a devastating tailspin with the...

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Very scary truth of the new Loan-to-Value (LTV) limits

Email notification By now, most Singaporeans would be aware of the new property cooling measures implemented by government. While most attention is focused on the eye-popping Additional Buyer Stamp Duty (ABSD) of 12%, the more sinister aspect of the cooling measures for existing private property home owners should be the Loan-to-Value (LTV) limits. In the worst case scenario, existing home owners may be forced to do margin top ups if their property value plunged in the next few months. Read on to find out why LTV can be so important to your home loan and why you should pay...

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12% ABSD to rock the market?

It seems that the government had thrown yet another hand grenade to the private property market by announcing further housing cooling measures (ABSD) on 5 July 2018, after the closure of the stock market. Though I am not planning to buy a second property nor am I vested in any SGX stocks, the latest round of cooling measures certainly came as shocking to me, though I am not affected. Whether the new policy would be effective or is well-intended is beside the point. The issue is the timing.   Indeed, private property prices had gradually declined for 4 years...

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DBS share price suffered from explosive meltdown

After leading DBS to achieve a record net profit of $1.52 billion for first-quarter 2018, CEO Piyush Gupta must be at a loss for words on the recent meltdown of DBS share price. From 30 April 2018 to 4 July, DBS share price plummeted from a record $31 to $26.38, a massive decline of 14.4%. The sudden loss of form for DBS share price must have scared the living daylights out of shareholders. After all, DBS share price had been cruising along fine with its robust set...

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OCBC share price to go berserk again?

Within two months, OCBC share price fell off the cliff, dropping from almost $14 to $11.50. Such correction is healthy as OCBC share price had been on a spellbinding berserk run since 2017. Thus, investors should not be alarmed by the recent decline in OCBC share price. But at the back of investors’ mind must be whether OCBC share price will return to form on the back of Great Eastern Malaysia divestment. Does the current OCBC share price represent value for money or is it another value trap? In...

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SingTel stock price collapsed amid short-selling attacks

Class is permanent, form is temporary. On 28 June 2018, SingTel stock price collapsed to 9-year low, falling to as low as $3.08. Amid attacks by short-sellers, SingTel stock price retreated to below the psychological level of $3.10. At the rate of decline, SingTel stock price seems destined to free fall to below the $3 mark. The devastating decline in SingTel stock price would have caused massive paper losses for many wealth builders. Investors would know the theory of “be fearful when the market is full of greed and be greedy when the market is full of fear”. Now...

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Singapore Savings Bond versus OCBC 360

Singapore Savings Bond is a new type of government bond that was launched by the Monetary Authority of Singapore in 2015. The bond is considered to be a safe and flexible product that allows Singaporeans to meet their savings and investment needs. However, demand for Singapore Savings Bonds had been lacklustre in the initial years, presumably because products like OCBC 360, had been giving it a run for its money (literally). Nonetheless, recent developments had caused Singapore Savings Bond to be very attractive. And that led to a change in...

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SingTel and StarHub stock prices sank on MyRepublic’s debut

21 June 2018 would be remembered as a day of reckoning for local telco players as MyRepublic set the mobile market on fire by offering one of the most innovative and competitive data plans in recent years – Smart 35. On the day of the launch, SingTel and StarHub stock prices got bombed-out. Whether the corrections are knee-jerk reactions remain to be seen but MyRepublic certainly debuted in style. It would be sweet revenge for MyRepublic which had lost out to TPG Telecom in the bidding for the fourth telco license back in 2016. Despite losing the spectrum bid...

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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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