Author: Investmoolah

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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Buying a life insurance policy

For young working adults, the thought of purchasing a life insurance policy is one of the first things we will be approached in our working life. To help out, here are some things to note on life insurance. What is life insurance?   Life insurance provides you a payout upon death or total permanent disability (TPD). The policy can vary from a limited period of time (20 year limited plan) to the entire insured’s lifetime. There are 4 common policies which falls under the category of life insurance – Term, Whole life, Endowment & Investment Link Policy.   When should we buy?...

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What the humble "Bak chor mee" can teach us about investing

Let’s talk about food! Had a bowl of bak chor mee for lunch at the canteen. Well it costs $3.50; let’s be honest, it wasn’t the tastiest bak chor mee in my lifetime but it did give me an epiphany which deserves a post. You see, I have frequented this particular canteen and sometimes I will order the spaghetti bologanise for lunch, which costs $5.50. What struck me was how the time and effort to prepare both dishes are similar – put the noodles in hot water for a few mins, wring it dry, add the sauce (which has...

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Start Saving when we are young

Came across an article today by SGYI and in which a reader has commented the difficulty of getting returns of 12% etc etc.. Guess what, I did write on a similar subject on “the powers of compounding” few months back with realistic settings. Here is an excerpt: “Albert Einstein called compound interest “the eight wonder of the world” and rightfully so. Lets consider an example to illustrate it. Two individuals, Ah Huat and John, enters the workforce at 25. Knowing the importance of saving when young, Ah Huat decides to set aside $7000 yearly from age 25 to 35...

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Local Crowdfunding Expansion and Defaults

March has been an eventful month for the P2P industry with high profile loans being issued. While p2p loans are innovative, there is still one risk that remains – default. Default March too has seen a few defaults. One of which has been covered by another blog. The company is a travel agency who has a few p2p loans. Another p2p default: S Travel Similarly, Moolahsense too has encountered a default on a bullet term loan by one of its issuers. And yours truly too has a late repayment by one of the companies in my p2p portfoilo. What...

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Increasing my P2P portfoilo

This week something historic happened in Singapore’s crowdfunding scene –  a company related to an SGX-listed company sought to raise debt via crowdfunding. It was none other but Epicentre- once famous for selling Apple products. You can read the article here. Epicentre Crowdfunding   It is quite unprecedented for Epicentre to raise funds this way. Prior to this, the company relied on unsecured bank loans which yielded 3+% – 4+%. However, now it is relying on callable and equal monthly installment loans for working capital and purchase of inventory. Looking through Epicentre full year and recent 1H results, my guess estimates...

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Short update to hypothetical and Real portfoilo

Quick Summary In line with my bearish outlook and following from my post, my hypothetical “insurance arm” has decided to sell off all STI ETF holdings at today’s price of 2.83. This means netting a sales proceed of s$1003.90, after  “brokerage fee of Stan Chart and clearing fee rates” Coupled with the 4.6 cents dividend received, Total net proceeds is now $1020.20 and will be placed as cash. A positive 2.02% was achieved. As per my fund restriction, only the STI ETF can be bought and sold. No other equities can be targeted. The transaction has been reflected on my “challenge”...

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Nothing much has changed

On 4th Jan 2016 (the first trading day of 2016), the SPDR STI ETF was selling at $2.90. Fast forward to today, the STI ETF is $2.84 and has given dividends of 5.1 cents. So overall, little loss has been made despite the tremendous amount of news and market gyrations. Nothing has changed since New Year’s Day   That’s pretty much it, nothing much has changed since the start of the year. The narrative is still the same: Oil price is down, some economies in Asia are slowing as expected and wall street is now expecting a few rate...

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Is Starhub a buy for its dividends?

Starhub is the second largest telecommunications company in Singapore. It is part of the 30 components stocks of the STI and a crowd favorite due to its stable business that produces good cash flow. Starhub has committed to reward shareholders an annual dividend of 20 cents in 2016. Sustainability of its 20 cents Dividends Dividends are only sustainable if they are paid from cash flow. Hence, it is apt we start with the cash flow statement. Firstly, lets remember Starhub needs to generate $346 Mil of cash to deliver its 20 cents dividends. From its latest full year results, Starhub has generated...

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