Author: Investmoolah

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...

Read More

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...

Read More

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...

Read More

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...

Read More

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...

Read More

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...

Read More

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...

Read More

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...

Read More

Monthly Update of Portfolio [September 2015]

Accumulated   Accumulated Silverlake Axis, Penguin and China Fishery (10 lots) to my portfolio. This is because these stocks have fallen to attractive values, especially Silverlake. While the verdict of Silverlake’s investigation has not been released, my personal sense is that there will not be much adverse news of contagion liabilities lurking in Silverlake’s balance sheet. Divested   I have divested KSH in the run up of its share price. This is because its MOS became relatively much lower than Silverlake to warrant a switch. In addition, I am not optimistic of its Prudential Tower project (approx 20% of...

Read More

Starting work to support my hobby

As many of you will know, I have a very expensive hobby of growing “money trees”. It takes seed capital, effort to source for fertile soil and time to grow these “trees”. And to add to my frustration, these trees sometimes become diseased and die on me. While investing has not been easy, it has been a fruitful experience and I have gained much knowledge. Unfortunately, I am running out of seeds and my planted “trees” have not bore fruits. Hence, I will be working to obtain the seed capital for investing. As such, frequency of my posting will be...

Read More

Thoughts on "Diamond are a sham…" and are Diamond Rings a Financial Mistake

Came across an interesting article by Robin Dhar titled “Diamonds are a sham and It’s Time We Stop Getting Engaged with Them“. It is interesting to learn when we buy a diamond ring; more than 50% of its value is lost as soon as we leave the store. Imagine learning that the $10,000 diamond ring you had bought yesterday is only worth $4,000 in resale value today. That’s worse than buying gold or silver which only loses 5-10% of its value. Hence, the diamond ring is perhaps the biggest financial mistake, ranking higher than owning a car – a depreciating asset but with benefits of convenience. In addition, it...

Read More

My Past Investment Mistake

In recent times, I had purchased a stock called Penguin International. Then it was 20+ cents and had price earnings and free cash flow ratio in the low single digits. It was a value investor’s dream reporting strong growth and was priced attractively at its reported numbers. However, the share price has moved south and is now at 12 cents. What Changed? I had overlooked the fact Penguin’s earning could be affected by a downturn. Penguin’s customers were companies in the oil & gas industry. Unfortunately, a downturn did happen and now deliveries and orders for its vessels has slowed....

Read More

Save $25 for the first $60 purchase of online groceries [Only for DBS card members]

Came across this coupon on Honestbee which is only applicable for DBS credit/debit card members. https://www.honestbee.com/promotions/dbs Sign up before 30th September 2015 to enjoy a one time coupon of $25 discount when you spend a minimum worth of $60 at any single store on Honestbee website. Furthermore, you get free delivery (though you may have to wait 2 weeks or more for your orders)! Best Way to Utilize The simplest way is to buy $60 worth of essentials from NTUC Fairprice online via HonestBee. First, draw up a list of essentials your household needs such as 10kg bag of rice,...

Read More

Why the STI ETF is better than most unit trusts

Are you a full time employee who finds it hard to make time to monitor one’s investment due to commitments? Or feel daunted by the market jargon and maze of financial statements when investing in the stock market? If your answer is yes to either question, it may be good to leave your investment to fund managers. In my opinion, the best way is by investing in an ETF which tracks the Singapore Stock Index. What is the Straits Time Index fund (STI ETF)? Alvin from Bigfatpurse has written a comprehensive post about it. For those who are busy or daunted by the lengthy article....

Read More

Why Keppel REIT and Office REIT are still not attractive

Came across S-REIT Investment blog’s write up on Keppel REIT where its price has fallen to “attractive levels”. While the financial ratios do look attractive, it is only one side of the story and I do not find Keppel REIT attractive yet. Poor Office outlook According to URA, there will be 545,000 square meters of new office space available for 2016. And judging from the office space demand during the past 5 years (2010-2014), the annual net demand is 110,000 square meters. Therefore, it is likely office space vacancy will rise by approximately 400,000 square meter. Currently there is a vacancy rate of 9.8% (746,000 sq m vacant...

Read More

Like us on Facebook

Follow us on Twitter