Author: Investmoolah

Portfolio update- Investing in TTJ and BBR

I have made additions to both TTJ and BBR. The investment thesis is simple: to invest in companies which will benefit from the Singapore government’s infrastructural plan. Given the gloomy outlook of our economy, it is likely our government will commence on some form of expansionary fiscal policy to sustain growth. The most evident way is through infrastructural projects. From BCA’s outlook, 2016 construction industry is likely to be about 27 to 32 Billion (2015 was 27.2 Billion). BUT with about 65% driven by the public sector. We have a few underground MRT lines and depot which will start construction....

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Is Keppel Corp worth its current value?

Since from my last post on Keppel, the stock has “gone below $6.”, which i mentioned will be worth a re look. While it has breached the $6 mark for a while, I had delayed my coverage because I wanted to view KC’s full year results for a better analysis. What has improved Over the past 5 months, two significant events have occurred: Accredited investors have “naively” parted cash to buy 1) Keppel 8 year bonds at 3.725%, 2) Keppel REIT perpetuals at 4.75% and 3) Sale of a $160mil property by Keppel REIT. These events have improved Keppel and Keppel REIT’s cash flow. It...

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Fear and Worried seeing the STI at 2500+ for the first time?

For investors who have started their journey from 2012, this is probably your first time seeing the STI index and the rest of the market in such a state of red. Now, you are likely to be worried and fretting over your investments. Well I can relate to that fear to yours. My first experience It was during the period of July- Oct 2011 that it happened. The European Debt crisis caused almost every market to open in the red each day. Worried and sleepless nights happened and I often refreshed my screen to see the latest numbers on...

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Portfolio Update & Open Challenge to Insurance Companies

Portfolio Update I have sold one of my main holdings in Fischer Tech at 0.90. It has been a wonderful company which I discovered two years back. While the wonderful management has remained, the outlook of the automotive industry Fischer is so dependent on has not. China automobile inventories are building up and this may lead to lower orders. While Fischer is debt free and will survive the downturn, the prospect of declining share price due to declining revenue is why I have opted to cash out. My DIY Challenge Readers will be aware of my love for the “buy term invest the rest” concept vis a vis...

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Compounding Your Money (Hopefully an exam question)

Q1 (Basic). Tom (age 30) invests $1 Million into a fund which guarantees an annual return of 7.2% per year. How much will Tom have at age 50 (twenty years from now)? $2 Million $4 Million $6 Million Answer (2). Using the rule of 72, an investment of 7.2% per year means Tom’s money will double every ten years (72/7.2=10 years). Hence Tom’s money would have doubled twice over 20 years. 1 x 2 x 2= 4 Q2 (Basic). Tom, now age 50, decides to continue investing his $4 million into the same fund which guarantees an annual return...

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Review of 2015

2015 has not been a kind investment year. For this year, investing returns is negative 19.2% (due to the fall in Penguin and writing off fully China Fishery’s value). Despite the negative investment returns, overall value of my portfolio has increased by $19,000 to the region of $238,000. This is due to my tendency of saving a high proportion of income earned from work; this shows why at a young age, saving is a good habit because the magnitude in loss/gain from a small portfolio will be outweighed by the savings we add to it. However, as we get older, inadvertently our portfolio gets...

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Recent Portfolio Transactions

Due to the loss of Office Starter 2010 on my computer, I have not been able to copy and paste my Excel into my portfolio update. This is why my portfolio on this blog has not been updated. Hence, this post is to highlight my recent purchases with a short review behind their purchase. Accordia Golf Trust At the recent low of 50 cents, I have purchased another 10 lots (potential 8% yield at this level). My analysis of AGT can be found here. Kingsmen Creative I have purchased 10 lots during the recent sell down. The company has a moat due to...

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Sarine Technologies – Suriving the Diamond Downturn

The Singapore stock market has had a particularly rough year, along with it, Sarine Technologies has suffered a torrid year. Year to date, its share price has fallen by half and is at the 1.30 levels due to a slump in earnings. Overview The company is in the business of providing technology-related products to manufacturers which turn rough diamonds into polished ones. Despite being an “IT company”, Sarine Technologies have demonstrated why it is important to analyse factors that are beyond the company’s control such as its customers and the state of the diamond industry. The diamond industry especially...

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Accordia Golf Trust – Normalization of yields/Projecting its future

Accordia Golf Trust (AGT) has fallen from its IPO highs to 55.5 cents as of writing. Given the drastic fall in price and sharesinv.com showing an impressive trailing dividend yield of 10.6%, one may be tempted to initiate a position in AGT. Let’s find out if it is worth it Yield AGT’s FY15’s distribution statement was lumpy and is difficult to build a projection on. However, this current FY’s first half distribution statement is easier to understand and its figures are not affected by IPO distributions/proceeds from borrowings/etc. From this HY, one can see that the distribution to shareholders...

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China Fishery’s Trouble with HSBC

HSBC has recently filed a winding up application on China Fishery to the High Court of Hong Kong. It pertains to china Fishery’s (CF) difficulty in servicing its debts. From China Fishery’s AR 2014, it can be seen that China Fishery had US $303 Mil of debts which needs to be settled within this FY and it has paid US $131 Mil thus far. Similarly, in the financial year before, CF had a US $505 Million debt but was successfully rolled over. Chna Fishery’s Debt Profile The trouble it seems is that one of its 5 lenders, HSBC, is refusing...

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Getting to know: Home Protection Scheme (HPS)

The Home Protection Scheme (HPS) is a mortgage-reducing term insurance which covers an individual’s liabilities on home loans in the event of death or permanent disability. Its premiums are affordable and is a government initiative. For every $100,000 coverage under HPS, the annual premium is about $76; that is cheaper than most term insurance.   Eligibility Currently home owners making HDB loan repayments through CPF-OA have to be enrolled into HPS. Exemptions from HPS is allowed if one shows proof of other forms of insurance coverage. However, in my opinion, the HPS is the most affordable plan and it...

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Scholar? Straight A? Big Fish, Small Fish? Let’s talk about Financial Sense

A scholar? Straight A, Good JC student? Unfortunately, I am neither. While I will be proud to showcase my “O” and “A” certs dotted with more “B” than “A” grades, displaying another achievement of mine (a 27-year-old investor) is perhaps more fitting as a financial blogger. Counter Units Price Allocation (%) Penguin 588700 0.15 35.16 China Fishery 260000 0.092 9.53 Fischer Tech 18000 0.905 6.49 TTJ 29000 0.41 4.73 Silverlake 39500 0.575 9.04 Moolahsense 1 $12,200 4.86 Cash* $75,800 30.19 Total SGD $251,117.50 100.00% As of end Oct 15, my portfolio stands at approximately $250,000. [Portfolio update: Sold some China Fishery, Penguin and...

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Can Osim Turnaround its Fortunes?

Osim is synonymous with its massage chairs. Besides the massage chair business, it holds other retail brands as well such as GNC and TWG Tea. Interestingly, the major market and revenue contributor to Osim is North Asia, to be exact China. Signs of trouble in China? While the Chinese Government has painted a moderately strong outlook on China, Osim’s result is showing otherwise. 9M current FY results has reported an overall decline of 12% revenue and a 44.4% fall in profits. This shows how cyclical Osim’s products are and the exposure it has to the China market. While its...

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Peer to Peer Lending: How I invest and minimize my risk

Some readers may have noticed: Under “My Portfolio” section, I have listed Moolahsense as part of my portfolio. What is Moolahsense?   Moolahsense is a peer to peer lending website where registered users are able to lend money directly to a company who is doing a fund raising campaigns. While the returns seem high, do note that the registered users assumes a large risk where the company may default anytime. Fortunately, the money registered users lend to these companies are similar to bonds; however these bonds are only enforceable in Singapore.   How I screen companies   My criterion...

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Steps to take to accumulate more wealth

Some have asked how I had accumulated $200,000 at a young age. Below were some steps I took. Save a significant portion of salary Don’t live a paycheck to paycheck lifestyle, save a portion of your salary for investments and future consumption.   Don’t put too much Money in Bank accounts and FD I hate putting a lot of money in saving accounts because the interest rates of these accounts are very low. The only advantage saving accounts have is the liquidity it provides. I suggest to place approximately $10,000 in these saving accounts unless a major expense is...

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