Author: Investmoolah

Update on First Ship Lease Trust (FSL)

A few major developments has happened at FSL Trus . Hence, it is time that a review of FSL’s performance and financial strength be done to determine if the trust is still a viable investment. Recent Developments The recent sale of 3 ships (FSL Tokyo, FSL Santos & FSL Santos) was a major development. FSL is estimated to receive a cash proceed of 26 mil which will be used to lower their debts to 132 mil. Based on the past three quarters of financial results, the 3 ships have produced for the trust about US$2.2 mil in BBCE. Annualising...

Read More

World Precision Machinery – Undervalued Gem or another "S-cheat"?

Shareholders of World Precision Machinery (WPM) have suffered a torrid time owning this company. Since 2013, shares of WPM have tumbled from a price of $0.40 to $0.196. That’s a decline of 51% (before accounting for dividends). What it does In one sentence: WPM makes metal stamping machines for hundreds of customers in China ranging from automotive plants to household appliances brands. Stamping machines are machines which bends/folds/presses metal sheets into the desired form required by the user. There are two types of machines manufactured by WPM – i) Conventional stamping machines and ii) High end stamping machines. Decline...

Read More

Portfolio- Year end update

It has been a while since I last updated my portfolio; in fact I have made many transactions but was lazy to cover them. Short Term Punts Bought Sarine Tech at 0.94. Initially, I thought Sarine would be a good deal at 0.94 because it was a low leveraged company with strong cash flow. However, it seems its business condition is deteriorating and I was lucky to offload it at 0.95. DISA- A penny stock which I noticed trades in the range of 0.012-0.016. Purely speculative, bought 0.013 sold at 0.015. IPOs- This year I had been fairly lucky...

Read More

Lesson on the Gift of Compounding: Save Young and Be Rich Sooner

Interest Compounding has a wonderful effect on our savings. When you start young and let compounding work its magic, achieving your retirement goal is very easy. This is why many financial bloggers including, yours truly, espouse on the importance of starting to save in the early stages of working life. Using Mathematics Regular readers of this blog will know of my penchant of relying on boring Mathematics to convince, so here comes the maths :) Two individuals, Alan and John, enters the workforce at 25. Knowing the effects of compounding by saving when young, Alan decides to set aside $10,000 yearly...

Read More

3 Things People Forget to Consider when Investing in a Condominium Property

Recently, Channelnewsasia covered a topic asking whether Singapore’s private housing market is in a bubble. In it, a certain property firm’s “expert” was interviewed. One fact which made me interested is how annual rental yields of Condominiums in Singapore are now between 2.8% – 3.2%. Having been in the real estate and investing on my own, my perception is that these figures do not reflect the reality for investors buying a private property to rent out for investment purposes. In my opinion, it seems 3 significant expenses may have been forgotten/ignored by property investors when computing the rental yield: 1. Property Tax...

Read More

How Much is ComfortDelgro Worth?

Challenged by Grab/Uber in the taxi segment, ComforDelgro (CDG) taxi’s segment has been hit hard and its taxi division has been suffering with declining profits. While others will focus heavily on CDG’s Taxi business, it is worth noting CDG is quite diversified across many sectors. So lets analysis CDG’s sector by sector and try to find the valuation of the group on a whole based on its projected profits. Public Transport Segment Almost everyone is familiar with this segment which involves SBS Transit running bus and train operations. Due to the industry overhaul by LTA, SBS transit is moving...

Read More

Portfolio Update- Divestments and Seeking New Gems in a "Fairly Valued" Market

It has been a while since the last update of my stock portfolio. Th main reason is because I have made a few transactions over the months. Divestments Penguin Holdings – Sold all remaining 25,000 shares. This brought to the end of my infatuation with Penguin believing it was then riding on the oil boom in 2014 and being a low leverage company Ezion – Sold 24,000 shares at 0.26 however my CPF portion was not sold and now I have to await the debt talks before deciding. The irony is that I had sold off my Ezion shares...

Read More

Saving $100,000 by 31

“How do I start to reach my financial goals?” “What must I invest in?” These are questions often asked as newcomers to the workforce embark on their goal to start saving for retirement. And the first steps to it is saving with a certain figure in mind. So how can one achieve this first financial milestone of saving, say their first $100,000? While many would think the ability to invest smartly is required to achieve this goal, the truth could not be any further. Its more about Saving Habits than Smart Investing In my view, if you have the...

Read More

When can Whole Life Insurance be better than Term Insurance?

The topic of buying Life Insurance popped into my mind again recently when the Straits Times covered a topic of how Insurance Product options have expanded online and how it can be purchased without the need of going through agents. So perhaps it is a good time to re-evaluate when Term Insurance is better; and when Life Insurance is better. Previously, I did a short write up of the common types of Insurance shown which can be read here. Hence if you need a basic understanding of how Term and Life insurance works, you may read it before continuing this...

Read More

Spend Less on Bubble Tea if you want to be rich and healthier

Most people would have heard about the money hack on cutting back on Starbuck’s latte to increase your savings. Some will have recently heard about Australian’s Millionaire Tim Gurner rant on Advocado Toast and how it is making millennials poorer. Locally too, we have a beverage (food) that is making Singaporeans poorer. The Bubble Tea Initially, I wanted to paste a picture of LiHo’s or Gong Cha’s Bubble Tea; however to avoid potential lawsuit for damaging their business, i guess better not! So down to the facts. The Bubble Tea is a favorite Singaporean beverage and costs about $3- $3.50 per...

Read More

A review of Starhub’s Dividend Sustainability

From my previous post on Starhub on Feb 2016, I asked about the sustainability of the company’s 20 cents dividend policy on a cash flow basis. You can read the previous article here. Since then Starhub has reduced its dividend policy to 16 cents annually. This means Starhub has to generate $277 Mil of cash to deliver its 16 cents dividends. What has happened? Since then, Starhub has experienced 2 events. Firstly, the issuance of a s$200 mil perpetual securities with a 3.95% yield. In my opinion, the proceeds from this perpetual securities is likely to be used for to repay Starhub’s...

Read More

Is the Lease Buyback Scheme a worthwhile option to monetize your home?

Came across a blogger’s post about the Lease Buyback Scheme (LBS) available at HDB. This pique my interest and I decided to check out its info graphics at HDB’s website. HDB Info graphics Quoting directly from HDB’s website its example of LBS. This is what I get below. Source: HDB Lease Buyback Scheme (as of 28 July 2017) From the Info Graphic, we can infer two assumptions: i) a 65 year old flat is valued at $450,000 and ii) at the tail end of its 35 year lease, the HDB flat is valued at approximately $190,000. Let’s delve into the...

Read More

How a trip to Courts offered me Personal Finance Lesson and its Company model

Recently, my laptop that had accompanied me since my last year of university has been acting up; a sign that a tech refresh to a new laptop may be needed. So I was off for a window shopping trip to identify a laptop good for writing and reading annual reports. Flexi Plan (which will put you to ruins) One of those that caught my eye (because it was literally big) was a Lenovo 15.6″ inch laptop. It screen size was big and ideal for staring at annual reports and investing forum. Not sure if it was reasonably priced, but...

Read More

Low Oil Price for a Long Time

Let’s face the facts: Low oil prices are here to stay for a while. Despite OPEC’s commitment to continue supply cuts until mid 2018, the world is still producing more oil than it needs (similar to our local property oversupply and global container ship glut). In addition, Singapore is now set to be one of the largest “parking lots” for large crude oil tankers as covered in this article. In my opinion, low oil prices are expected, to 2019; because i) oil supply outstrips global demand due to production increase by USA and Nigeria and ii) the need to draw down...

Read More

Candy, Decision Fatigue & Habits

Ever wondered why most candy products are placed near the cashier? Well there is a psychological explanation behind it and that is “Decision Fatigue”. The idea is simple: During a consumer’s journey through the supermarket, he/she would have made numerous decisions such as the items to buy, product to choose etc, this in turn reduces their mental willpower making the subject susceptible (tempted) to temptations. Aided partly by the colorful visuals of candy packages (stimuli), the consumer succumbs to the temptations and we engage in impulsive buying which harms our financial health. This blog is not going Psycho! So...

Read More

Like us on Facebook

Follow us on Twitter