Author: Investmoolah

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...

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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...

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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...

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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...

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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...

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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...

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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...

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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...

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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...

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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...

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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...

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Review of First Ship Lease Trust (FSL)

First Ship Lease Trust (FSL) is currently the only listed shipping trust on SGX, in recent times, the market value of FSL has fallen 35% from a market value of s$102 in million to s$65.5million. This was due to the negativity of the shipping industry and market’s apprehension on the trust’s inability to refinance its debts.  Business  FSL owns a fleet of mainly tankers and 5 container ships and lease them out to shipping companies for revenue. While we tend to associate shipping to the container or dry bulk segment, FSL is more exposed to the tanker segment; with...

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Short Portfolio Update

Just a quick update to my portfolio because there has been a flurry of activities. Sale of Hyflux Preference Shares Sold all Hyflux Preference Shares in my CDP to realize an approximate 10% gain. I managed to “pick some pennies” on this company debt instrument and have decided to allocate my capital to the below 2: Memtech International The thesis for Memtech was pretty simple. It is in the same industry as Fischer Tech and Sunningdale. With its strong cash position and cash flow generation ability, the price which i purchased at 0.705 seemed a good steal. Furthermore Memtech...

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Your HDB Flat is a Depreciating Asset (eventually)

Recently, the stark reality about the value of our HDB flats was reiterated by our current MND minister, Mr. Lawrence Wong – where upon expiry of its lease, your flat will be returned at zero value to the State via HDB. The Straits Times too has been unforgiving with its relentless churning of articles on the topic of “Lease Expiry” with its latest article on private estates nearing the end of its lease and residents distraught. Hard Truth   A few investment bloggers and investing forum had been harping on the fact that many properties in Singapore are leasehold...

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March 17 Portfolio Update

It has been almost 2 months since my last portfolio transaction updates. So here goes: World Precision Machinery   The “No dividend” announcement was bit of a shocker to me. My main thesis to invest in World Precision was due to its consistent declaration of dividends. Therefore, i took a chance to divest it when someone was offering to buy it at 0.235 after the full year results. This allowed me to clock in a 7% return. First Ship Lease Trust   This was another company hit by negative news via comments made by its auditors. However, when I...

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