Author: Investmoolah

KrisEnergy Bondholder Woes

Came across a Straits Time Article about Krisenergy seeking bondholder’s consent to accept a new bond and the bondholder’s unhappiness. The article is linked here. Summary  Basically KrisEnergy is asking existing bondholders to accept a new bond which is of a 5 year tenure and at a lower interest than the existing bond. In addition, bondholders get to enjoy some increase in interest rate repayment if oil prices move above US$70 during these 5 year period. In addition, KrisEnergy shareholders (mainly Keppel Corp) will inject $140 mil into the company by subscribing to zero coupon secured notes. My Opinion In my...

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My Dividend Stock Purchase: Hyflux Preference Shares (N2H)

After holding  a large percentage of cash for a long while; I have decided to purchase shares in N2H, Hyflux Preference Shares. Hyflux’s preference shares are bond like instruments which gives the holders a fixed dividend payout at each time period (6% for Hyflux’s case). These dividends are paid on a pro-rated semi annual basis and cumulative, meaning to say if Hyflux defers on paying dividend this year, it will be rolled to next year. It can be for an indefinite period However, these preference shares has no maturity date to redeem, but Hyflux has to pay 8% dividend if they...

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Looking for Bargains

I have been busy at work during the past 2 weeks and as a result, no postings has been done. So here’s some of my latest transactions.. Transactions Divestments: TTJ & Ezion today. As of now, cash is the largest component of my portfolio, at 75%; Stocks is at 13.4%, while P2P is 11.6%. I have made no further P2P investments. Opportunities Action bias is now a real risk. Being a human, I will have to resist the urge to do something. As Blaise Pascal said: “All of humanity’s problems stem from man’s inability to sit quietly in a...

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Wells Fargo Scandal: Sales Target and Trust

Followers of US bank will be aware of the ongoing scandal at Wells Fargo – the bank has been found to open for its customers millions of unauthorized accounts which was earning banking fees without their knowledge. A summary of the Wells Fargo Scandal can be read here. Chasing Sales Target This is one of the biggest “dilemma” of the financial industry – many employee’s KPI is measured against the sales target they bring to their employers. This means having to get new or existing customers to buy new financial products; however, if these financial products offered by banks...

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Transaction Update, Ausgroup, Future of Singapore’s O&G

Transaction Update For the month of August, I have divested the following: Silverlake Axis – Banking on today’s price run, I have taken the profits as I think silverlake is just about fairly valued at 4.8% dividend yield First Ship Lease Trust –  The MR2 tanker prices have been falling and thus time to sell off. XMH- Sold off for better utilisation of cash. Using the cash, I have started accumulating Ezion at 31, 27, 26 and 22 cents. Please see the “Future of Singapore’s offshore” Ausgroup Ausgroup’s financial results was a disappointment. The group has impaired its assets, resulting in a...

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How Perpetual Securities affect Ordinary Shareholders

Perpetual Securities are a class of financial instrument and has in recent times gained popularity due to a low interest environment. Companies such as Ezion, Hyflux and even Mapletree Logistics Trust have issued such instruments to retail investors. This post seeks to cover the basic of Perpetual Securities and how it affects ordinary shareholders Classifying Perpetual Holders Perpetual Securities are bond like instruments which gives perpetual holders a fixed dividend payout at each time period. In addition, it has no maturity date to redeem and its dividends are either non-cumulative or cumulative (cumulative means the payment of dividends are accumulated and...

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A new addition – Ezion Holdings

Thanks to the roll out of Pokemon Go in Singapore, I have been fairly quiet in the investing realm. However, the achievement of “level 20: milestone has turned my attention back to investing. My recent purchase has been in Ezion holdings in the region of 0.29. In one sentence, Ezion owns liftboats and charters them out to companies. Its business segment is mainly in South East Asia where many oil wells in SEA are maturing and will require maintenance; this is where the use of liftboats is needed. Its share price has fallen drastically due to Swiber’s events as well...

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Halftime Review of my Portfolio (2016)

My investing performance for 2016 has been poor so far. Due to my large exposure to the O&G sector though Penguin Holdings, my portfolio has taken a beating. While total portfolio value has increased slightly from last year’s, it has been mainly due to my constant injection of fresh capital (averages about $3,000 monthly).   Winning the battlefront/Losing the War   Spook by Yongnam’s under subscription of rights, I have quickly sold off my recently converted shares at 0.215. My gut feeling is that Yongnam may be priced even more attractively in the future and hence I have decided to lay off for now....

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Last Week Tonight John Oliver: Retirement Plans

If you have not watched John Oliver’s talk on retirement plans. Watch it! It is probably one of the most entertaining material on personal finance; albeit something which has been espoused so often by financial bloggers. If you do not have 21 minutes to spend on managing your finances, just go to the 8 minute mark and watch till 11 minutes. It is one of the most important lessons you will learn on personal finance. If what John Oliver mentions has truth; financial advisers often placing their interest before yours, it makes me wonder why some many countries are allowing it....

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Portfoilo Update in June 16

This month I am on speculation mode. I have covered my short on Sino Grandness at 0.62 using SBL. You can read my experience here. All in all, I feel SBL is a pretty lousy way to short shares due to the high fees and lengthy process. In addition, I have purchased Yongnam’s rights at 0.001. The company did a rights offering recently where new rights can be exercised at a price of 0.21. Given the company is trying to improve its balance sheet by way of equity raising, I will be watching how the company performs in the upcoming...

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Riding on Singapore’s Infrastructural Boom

It seems every year, a major infrastructural project is being planned/constructed in this island of ours. One of the latest this year was the announcement of the construction of T5 Changi Airport. As an investor, is there any company on the SGX which we can invest in? Structural Steel Space   On the SGX, there are two listed companies (TTJ & Yongnam) in these structural steel related industry. Firstly, what is structural steel? Basically, it involves creating structural shapes from steel for construction projects. Its is widely applied for construction activities in Singapore. And naturally, it refers to infrastructural...

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3 Takeaway from Shorting Sinograndness

Using the Securities Borrowing and Lending Scheme (SBL), I have successfully shorted Sinograndness (SFIG) today at 0.700. Here were some takeaway from this first experience. 1. Long Processing Time Being my first experience, I asked to short SFIG on 7 June 2016 @ 1030 hrs, thinking I could execute the trade immediately at 0.770. Unfortunately, my trading representative informed me the process was not immediate and they had to put up inquiry with CDP to borrow the shares first and then deliver to me. The whole process took almost a whole day and it was only at 8 June 2016 @0915hrs, was...

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ISR Capital – Is it real or the new "Mini blumont/Asiaons Capital"?

One company caught my eye today – “ISR Capital” From 0.6 cents on 11 May 2016, ISR is now at a price of 6.0 cents as of writing, that’s a 10 bagger in two days! So what’s going on? ISR Capital Basically ISR is an investment company which invests in companies that are listed/unlisted and debt securities in such companies. Doesn’t that sound like a group of companies which gained infamy on the SGX sometime back in 2013? Its current book value stands at 0.5 cents. Therefore, it is now trading at 11 times its reported book value. The...

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How the World is Changing

Read an interesting article on fool.sg. And one of the most though-invoking lines from the article was this: “In Buffett’s own words, if there is a good business running, there will always be someone else looking to do it in a better way. Competition will always be trying. And competition may be coming from online or mobile.” The disruption we are seeing in Singapore Unfortunately for many businesses here, serious competition is now sprouting out especially in the P2P sphere. A quick search on the internet reveals some interesting sites. http://bakersfirst.sg/about/ A portal for home bakers to consumers directly...

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"Financial Stupidity" is enriching DBS

The latest financial results for our local banks are out! And a comparison among their deposit interest rates reveals something interesting. Comparing the 3 figures, DBS is paying its customers an average deposit rate of 0.56%, while OCBC is paying a weighted average of 1.14% and UOB 1.15%. DBS is paying only half the rate of OCBC and UOB and has the most deposits among the local banks! What’s more, DBS net interest margin is the highest among them. There must be a lot of “stupid money” lying around for this to happen. For individual savers like us, getting 1+%...

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