Author: Investmoolah

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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Lesson from Ezra Bankruptcy: Asset Rich, Cash Flow Poor

By now, some of you would have read Ezra’s filing for bankruptcy protection in the United States. Previously a billion dollar company, Ezra’s fall from grace was due to the fall in oil prices. Nevertheless here are a few things we can learn from it. 1) Cash/Cashflow is key One reason for Ezra”s decision to file for bankruptcy was due to its inability to pay creditors. The reason was simple – Ezra’s assets was neither generating sufficient cash flow to meet its daily expenses nor did it have enough cash reserves. If one were to examine Era’s balance sheet...

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Portfolio Update Feb 16

Since my previous portfolio update, I have made a few more purchases. The first was the purchase of Broadway Industrial at 0.195. The thesis is pretty simple because I am hoping for a bumper dividend from completion of its “Foam Plastics and Flow Control” Segment. I am hoping its one off high dividend will attract investors attention and push its stock price up. Thta is where I will evaluate my position.  The Second purchase was World Precision Machinery at 0.22. Its business is in the metal stamping industry and is based in China. It is a subsidiary of Bright World...

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Owning a Car in Singapore can make sense

Fellow Blogger, Bullythebear, covered an interesting concept he read from ‘Tools of Titans” by Timothy Ferris. It talks about weighing the utility of the extra time gained from spending an extra dollar to get it. This concept reminds me of constant conversations about how a car is a tool of convenience through saving time. So, I will be using a mathematical approach to show when owning a car in Singapore may make sense. Cost of Owning and Maintaining a car Firstly, lets find out the approximate expense of owning a car for 10 years. I used the price of...

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How to be a millionaire through Stock Investing by 2017

Dear Readers & Fellow Bloggers,   I am neither hallucinating nor suffering from permanent brain damage as I write this post. I have stumbled across a company on the SGX where you can indeed earn a million ( if you believe the management & auditors). Introducing China Sports International About China Sports International A China Company which sells Sports & Apparel products in China under the brand name “Yeli”. The company’s current market capitalization on the SGX is s$9.228 million. Its current auditor is RT LLP. How To Make a Million Before you guys get too excited , lets...

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Portfolio Update and New update of Ellipsiz

Since the last update of my portfolio, I have made a few more purchases: 23,000 shares of silverlake shares at the price range of 52-52.5 cents and 10,000 shares of ARA at s$1.685. The rationale for ARA is straightforward. The company is undergoing a takeover offer at 1.78. With the takeover targeting for completion by 1H2017, I am expecting a return of about 5% over the holding period of half a year. The downside is of course the failure of the takeover. However, ARA is a relatively strong company; given that it is dishing out annual divided of 4...

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When Reality does not Meet Expectations

Read a US news article which argued how dining expenses will increase if President Trump’s policy were set in place. You can read it here. What got pique my interest was this particular paragraph: “A stark example of the need for immigrant labor was apparent in 2011, when the North Carolina Growers Association had 6,500 farm jobs available, all of them in or next to counties with unemployment rates greater than 10 %. Only 268 of the approximately 500,000 unemployed North Carolinians applied for a position. Ninety percent of them were hired, but only 163 showed up to work on...

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Portfolio Update: Dec 16

Given the price weakness of my core (only) 2 holdings, I have decided to accumulate Hyflux Preference shares (avg weighted 93.50) and Penguin Holdings (21.1 lots at 0.23 cents). It will be interesting to see how it goes, my thinking or Hyflux is that redemption is likely, while for Penguin, it’s P/B ratio is rather low despite negative earnings. This allows a huge margin of error and upside in the event of liquidation.   What I am eyeing   One of my old favorites, Silverlake Axis, has fallen back to levels which I had purchased at in 2015. You...

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Pitfalls of relying only on P/E ratios

P/E (price earnings ratio) is a measure often used and cited for stock analysis. Commentators will often appeal to the masses by quoting lines of: “Buy this stock now! It is selling at such a low P/E ratio”  But is it a reliable measure? Let’s use the complete past 3 year financial results (excluding one-offs) of Ezion Holdings and Penguin and the share price these companies were selling for slightly after the announcement of their full year financial results on the SGX.  FY end     Ezion EPS Share price (start Mar) P/E ratio 2013 16.06 163.5 10.2 2014 16.53...

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