Author: Investment Moats

Pimco’s Bill Gross: Fooling With Inflation

By: Drizzt This is not the first time that i posted an essay by Bill Gross. Why do i post so much article on the man? I admire him for his profound commentaries on the market. Sometimes it gets so profound that i need to reread what he wrote a few times just to get what the heck he is trying to say. At the same time, it is interesting to listen to what the world’s largest bond fund manager have to say about the current investment climate, and in this article it gets really hard hitting. He lambastes...

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Why Index Investing Isn’t Passive Investing

By: Drizzt An important article as a reminder that proponents of index investing painted alot of advantages of it over active investing. However, the main advantage that i see is drastically low annual cost compare to active funds. If you buy and hold indexes, your returns will depend on how well the index does, which eventually means that index investing != better returns. In the debate over active vs passive investing, the base-case assumption is that a passive investment involves tracking a stock-market index, normally the S&P 500. Read...

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Trading takes over the job

By: Drizzt When I first started trading or get involve with this investment thingy, I stayed on the online broker screen alot. Not just checking at night but during work. The good thing about an understanding superior is that if you manage to deliver on your work, he doesn’t mind what you do. (Unless you have a habit of surfing porn during work!) There are many ways that an investor can choose to invest. He can be a buy and hold investor or a value investor, or he can be a momentum trader or a day trader for the...

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Singapore, India and Thailand: Next Medical Toursim Destination

By: Drizzt Ever wondered how much of an advantage our local listed medical focus companies have over US? take a look at this: We always seem to hear of Singaporeans going to Thailand for cheaper surgery but i believe that the government’s push for Medical Tourism in Singapore could yield some rather good results. Take a look at the cost for Heart Bypass. Read...

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C&G Industrial Holdings: Cash for real?

By: Drizzt Background C&G Industrial Holdings Limited (CG Tech) manufactures and distributes key components for the textile industry in the People’s Republic of China. Its products include polyethylene terephthalate Green-Fad-and-the-Economy Nov-07 (PET) chips, yarn products and polyester short fiber (PSF). Its PET chips are fiber-grade PET chips. As of December 31, 2006, CG Tech manufactures alkali-soluble PET chips, high-shrinkage PET chips, dye-absorbing PET chips, yarn products and combed yarn. The construction of production facilities for combed yarn, with an annual capacity of 6,000 tons was completed in April 2006. Its yarn products include pure polyester spun yarn, cotton and...

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Synear Food Holdings: Looking better than an overpriced shit

By: Drizzt Background Synear Food Holdings Limited is a Singapore-based investment holding company. The Company and its subsidiaries develops, produces and sells quick-freeze food products under its Synear brand name. The Company produces a range of traditional Chinese staple food products, including savoury dumpling products, glutinous sweet dumpling products, and other products, including glutinous rice dumpling products and specialty desserts and snacks. Its operations are principally conducted in the People’s Republic of China. The Company’s business consists of the manufacture and sales of frozen food. The Company has a sales and distribution network in more than 20 provinces in...

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Portfolio Review 24 Feb 2008

By: Drizzt Been a busy week. And its gonna get more busy next week.. This doesn’t mean that i don’t have time to do a mini review of my portfolio. The objective of this round of review is more to align my current allocation to an allocation that i believe will do better going forward. Macroeconomics While i believe in holding a portfolio in the long run, your allocation should evolve to target the world going forward. Some instruments that work in the past might not be the best instrument going forward. Take the example of bonds. Bonds have...

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PEG of Countries: Singapore looks cheap

By: Drizzt Investors who pick stocks sometimes rely on PEG ratio to determine if a company is under value. A figure of PE that is below 1.25 times of growth rate would indicate for a greater propensity to grow compare to a company’s forward valuation. So can we bring this over when looking at country? the folks at Bespoke did the leg work and here are the results. Looks like Singapore and Russia looks “undervalued” due to the estimated growth rate of GDP they are likely to produce going forward. US is expensive due to the low growth rate....

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SPC: Good Dividend Play

By: Drizzt Singapore Petroleum Corporation just delivered another good set of earnings. Its been a very fruitful dividend stock for me. Some Ratio Stats: ROIC is 14%. This is slightly weaker than what i previously recorded. Probably due to the way i account for debt. I used to account only long term debt but now i factor in short term borrowings as well since they are essentially borrowing. Operating Margin is almost the same. Oil price rise and fall but the margin remains. I have to read in detail to give an assessment into this. A thing to note...

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Hazy Work Day

By: Drizzt Its one of those days where you woke up at 4.30 am cause you can’t get used of sleeping early. Contrary to what many of my friends believed, I don’t check the mkts but checked some NBA scores and read some decorating sites. That hasn’t stopped me from noticing this article at Bespoke on the oversold conditions of the country. Apparently,Singapore is not too far off the trading range as compared to some other countries.India is severely oversold by this standard. I am thoroughly surprised by this. This might present a good opportunity for you country timers...

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Orient Century

By: Drizzt This company was brought to my attention by Brandon. What attracted him to this was its huge cash holding. I see this as more of a lack of opportunity to deploy this large cash holding. The education business in China should have plenty of room to grow. Raffles Education has been making headway into this area. Knowing that they are a shareholder in Oriental Century is comforting. The last Net operating profit after tax stands at 30 million RMB. At 42.5cts, its mkt cap is 401 mil RMB. Its got a cash holding of nearly 163 mil...

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How to create a budget plan in 10 easy steps

By: Drizzt Before you can think about investing or buying insurance, you need to think about funding for these 2 items in the long run. Lets just say that buying a whole life policy is not a 1 year 2 year affair. You will be paying for almost 20 years to probably when you are 65 years old (And it can get even longer then that!) To grasp you can commit long term cash to such items, you will need to have a strategic budgeting plan for your family or your combined disposable income. My plan entails 10 steps....

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On Bonvest

By: Drizzt I mentioned that during this correction, some of these stocks that you like have come down to rather reasonable valuations. Bonvest could be one of them. I do like Bonvest when it is below $1, much because of its diversified business of Food,Industrial, Hotel and Property. A check shows that the last quarter has edge decent revenues and profits. The more important question is whether, like most of the property shares, they are correcting from absurd valuations. Capitaland, Wingtai, Wheelock are some of the companies that have come down alot. That seems to mirror what Albert Lam...

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Is there any reason for the fall in high yielding dividend counters?

By: Drizzt I know alot of folks are fans of high yielding stocks and are heavily vested in it. If you have notice recently, alot of these high yielders are falling like flies. What happens in such a situation? the yield gets more attractive. some good examples are MIIF, Allco REIT, Cambridge REIT, Babcock & Brown. So do they make a good buy now? I’m still investigating the repurcussions of the subprime mess and credit squeeze and their effect to these counters. Personally for me to be vested, I would really need a bloody large yield to make me...

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Adding Alternatives to your allocation

By: Drizzt Readers here would have noticed that I do have much info here dedicated to commodities, gold or energy in my weblog. This is because going forward, these alternatives have a huge potential to provide that alpha growth for your portfolio. Alternatives as an asset class Critics of commodities would point to the 20 barren years where they go nowhere and give negative returns annually. However, it has become an asset class that cannot be ignored going forward. Like REITs, it provides a low correlation to normal equities and bond price movement. In fact, the correlation of commodities...

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