The danger of holding too much cash

Today I made a mistake. I was queuing for a counter for about 2 weeks at 1.47. But when the stock started showing surges in its bid and sell volume, I started interpreting it as a sign that the counter will move. Against all reasons, I abandoned my queue and bought at the then sell price of 1.50. It's only 0.03 cts, yes, and I didn't buy a lot (4,000 shares only), but it was still a mistake. … [Read more...]

Phillips money market fund (MMF)

It's been a while since I've talked about Phillips money market fund (MMF). A quick search revealed three articles: 1. POEMS money market fund (MMF) (2008) 2. Phillips money market fund (2009) 3. Phillips MMF (2010) I know, from first look, they are all the same or similar sounding titles. No creativity on my part in choosing a title, haha! For those who do not know, money market fund … [Read more...]

It’s 3 am I must be lonely

Restitutive, Retributive and Reformative. These 3 words keep rolling around in my mind as I woke up in the middle of the night to think about this. It must be around 3am, because that's the time my aircon timer is set and I usually wake up due to the difference in temperature. I must have read it somewhere, but I'm not sure why this suddenly cropped up. Restitution means to restore or repair … [Read more...]

CPFIS-OA investors shouldn’t invest? Really?

There's always a big hoo ha about CPF investors being unable to hit the 2.5% interest rate of ordinary account CPF. The statistics mentioned in this recent news is that over the last 10 years, more than 80% of those who invested their money in CPF would be better off leaving their money in the CPF OA. It's also stated that 45% of the investors made losses in the scheme. I don't buy this. I dug … [Read more...]

How we react to other’s success story

Someone mentioned his success story. You immediately start to think of what are the circumstances that makes him different from you. Maybe he comes from a rich background. Maybe he don't have NS so he starts working earlier by 2 years. Maybe his parents help him pay the downpayment of his property and his car. Maybe he is single so he don't have to pay as much as a married couple with child. I'm … [Read more...]

Principle of Non-equality of Equal magnitude numbers

Hypothesis: Equal numbers a and b of the same magnitude need not be equal i.e 1+1 is not necessarily equal to 3-1, even though numerically they are both equal to 2. Method of proof: By contradiction Proof A: I have 3 million dollars, but I lost 1 million dollars, so I still have 2 million dollars. I might go jump down. If I have 1 million dollar and I made another million, I now … [Read more...]

What’s with the rant against whole life plans?

I bought a whole life plan. In fact, 2 of them. One is a traditional whole life, where you pay until forever. The other is a limited payment whole life, where the payment period is condensed to maybe 5, 10 or 15 yrs, so you pay a higher amount but you can stop paying after. There's so much vitriol against whole life that I thought I should make some statement FOR whole life, just to provide … [Read more...]

Gold and Silver investing guide

Bigscribe released a new free ebook again, and this time it's about investing in metals. I'm a lay person and I know nothing about investing in metals, so this guide comes as a godsend to fill up my knowledge base. We always hear people talking about investing in metals as a hedge against hyper inflation (like during extreme conditions in wars), so naturally I'm interested to find out more about … [Read more...]

Using Investingnote’s charting platform

I wanted to help those who are newer to Investingnote, my preferred charting software, hence I'm writing this post. I think the people over at Investingnote are really doing a fine job with a free charting software. It's actually quite powerful and I especially like the real time (okay, it lags by at most 2 minutes) update of the charts. Yahoo finance maybe lags by 10 to 15 mins? I've not seen a … [Read more...]

The difference between preferential offer and rights

I just received the booklet from Croesus regarding their preferential offer of 10 new units @ 0.797 for every 259 shares owned on ex-offer date of 3rd Aug 2016 that I blogged about here. I initially thought this is like rights exercise, which I'm very familiar with. But on closer inspection, it is not. Let's explore what's the major difference. I think the most important difference is that … [Read more...]

The first domino falls

We just heard news of Swiber sudden winding down. DBS is one of the main banks that loans money to Swiber, so their exposure is about 700 million. That's not a lot of loans, relatively speaking. 700 million is about 0.25% of their total outstanding loans in 2015 and it's about 15% of their total 2015 net profit. But they are confident of getting half of it back and after tapping onto their general … [Read more...]

Trying to be SMART on SMRT

Stupidity induced by greed. That's the only way to describe it. Upon announcement of the offer by Temasek holding for the delisting of SMRT at $1.68, I wanted to arbitrage on any possible price difference between the opening price and the offer price. These are the assumptions I make: 1. There's a dividend of 2.5 cts waiting for me 2. The price that Temasek Holdings offer is too low ball … [Read more...]

Growing my investment portfolio

There are only two ways in which my portfolio can grow without leverage - the first is to inject it with fresh capital, and the second is to grow it organically from dividends/capital appreciation. To grow it by injecting fresh capital, it will have to come from savings. And where do savings come from? From work. After subtracting all the necessary deductions, I'm left with 30k to inject into … [Read more...]

The day SGX stopped trading for 5.5 hrs

On Thurs, 14th July 2016, SGX had to halt trading for all its counters around 1130 pm. At first, it's supposed to resume trading at 2pm after lunch, but at 2pm when I was eagerly waiting to see if there's any movement from my brokerage platform, I was disappointed. Nothing moved. Later it was announced that it trading will be resumed at 4pm instead. Yet again, at 4pm, none of the counters moved. … [Read more...]

Who is being speculative?

A value investor, a trader and a gambler goes into a bar. After a drink or two, they started arguing over which of them is speculating in the market. The value investor says that the other two are not basing their investments on fundamental reasons and treating the buying of their part business ownership like digits, hence the two are speculative. The traders says that the other two did not … [Read more...]

Croesus Retail trust preferential offering

Those holding Croesus retail trust needs to fork out money again. This was after their most recent rights back in Oct 2015 which I've blogged about here, here and here. There is now a preferential offering exercise going on, and in all respects, we can treat this as a rights exercise. Here's the details: The dilution isn't that much. It's an offer of 10 new shares for every 259 shares held … [Read more...]

The Animal School

Thanks to sillyinvestor for egging me on to write something in my blog. Been a busy June for me and I'm still recuperating lol! But here's a very good story inspired by an article I read recently here. It's a very good article but also a sad one for me. I'm not sure why though. It's like something is lost and yet nobody knows it. Imagine losing a precious thing to you, but you didn't notice it … [Read more...]

Bullish / Bearish divergence

I thought I'll never write another article on technical analysis again. But here I go again. I trade on divergence, so it's a counter trend trading, if you want to classify which school of TA I'm into. Divergence means that there is a pair of things moving in opposite direction. One of the pair is invariably the price of the counter. The other pair could be any indicator, but the one I'm using is … [Read more...]

Are we there yet?

Having read Kyith's post here and 15hww's post here about financial security, I thought I should try it out for myself and see the necessary figures needed to reach financial independence. It's not so much as a fixed set of goal to reach by certain age, but more like a milestone or achievement kind of thing. It's like you play games and when you collect 999 of each items, or you pass through each … [Read more...]

It’s good to be inefficient

We always try our best to optimise things and make things more efficient. Even in finance, to optimise is to eliminate waste and to streamline all the financial process to produce the least waste and maximise the most returns. But we don't always have to be like that. Inefficiency creates redundancies. It creates a space where there are excess capacities that can be tapped when the norm is … [Read more...]