Author: Market Uncle

Portfolio restructuring over the last 4 months

Partially divested First Ship Lease Trust(FSLT) into Pacific Shipping Trust(PST) on 29 June 2010 I can count myself ‘unlucky’ that FSLT had 2 of its ships returned prematurely and took a big hit to its total outstanding contractual revenue and just blame this on the ‘business’ risk. But looking further into the business to understand that the risk is actually much higher than I thought actually attributes more blame to myself. The high yield comes at a price that I sadly have to pay. Most of the contracts are made when shipping rates are over inflated and ships overvalued....

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Portfolio restructuring over the last 4 months

Partially divested First Ship Lease Trust(FSLT) into Pacific Shipping Trust(PST) on 29 June 2010 I can count myself ‘unlucky’ that FSLT had 2 of its ships returned prematurely and took a big hit to its total outstanding contractual revenue and just blame this on the ‘business’ risk. But looking further into the business to understand that the risk is actually much higher than I thought actually attributes more blame to myself. The high yield comes at a price that I sadly have to pay. Most of the contracts are made when shipping rates are over inflated and ships overvalued....

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Shopping vs Investing, behaviour peculiarity

Sale!!! Whenever there is some genuine sale giving ‘huge’ discounts, e.g. 50%, 70% off original price. There’ll always be enthusiastic crowds grabbing the items as if things are going for free. I recently encountered one for branded handbags near my working area. Most shoppers are predominantly ladies who seems to have a mental database of each item and their prices. They knew their ‘true’ worth and face no problem telling which are the real bargains. Thus seldom do I see them regret their purchases. Stock market sale While Great Singapore, Christmas sale happens regularly once a year and some...

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Shopping vs Investing, behaviour peculiarity

Sale!!! Whenever there is some genuine sale giving ‘huge’ discounts, e.g. 50%, 70% off original price. There’ll always be enthusiastic crowds grabbing the items as if things are going for free. I recently encountered one for branded handbags near my working area. Most shoppers are predominantly ladies who seems to have a mental database of each item and their prices. They knew their ‘true’ worth and face no problem telling which are the real bargains. Thus seldom do I see them regret their purchases. Stock market sale While Great Singapore, Christmas sale happens regularly once a year and some...

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I bought Mermaid Maritime, United Envirotech and Aspial

I bought Mermaid Maritime, United Envirotech and Aspial No longer had the luxury of time to blog on each and every transaction within days, I might as well consolidate them into a single article and post them when I had the time. Anyway, it will still serve my intended purpose to track what I do over the years and still garner some feedback, though not as timely as I hope to. But life is all about compromise, isn’t it? New addition to my portfolio since the MacArthurCook Industrial REIT error Mermaid Maritime on 19 January 2010 United Envirotech Ltd...

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I bought Mermaid Maritime, United Envirotech and Aspial

No longer had the luxury of time to blog on each and every transaction within days, I might as well consolidate them into a single article and post them when I had the time. Anyway, it will still serve my intended purpose to track what I do over the years and still garner some feedback, though not as timely as I hope to. But life is all about compromise, isn’t it? New addition to my portfolio since the MacArthurCook Industrial REIT error Mermaid Maritime on 19 January 2010 United Envirotech Ltd on 22 March 2010 Aspial 22 April 20...

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Valuer for HDB units, an easy job?

After years of painful search and watching the property prices continue to defy recession forces, a friend of mine finally settle for flat in a mature estate with about $50k above (already high) valuation. Querying the valuation of the flat, I discovered it is valued at the higher tail end amongst recent HDB resale transaction. And yet my friend is paying $50k above this. HDB valuation methodology I came across a recent article to the Straits Times forum from the Singapore Institute of Surveyors and Valuers commenting on HDB valuation: … For homogeneous properties such as HDB flats, the...

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Valuer for HDB units, an easy job?

After years of painful search and watching the property prices continue to defy recession forces, a friend of mine finally settle for flat in a mature estate with about $50k above (already high) valuation. Querying the valuation of the flat, I discovered it is valued at the higher tail end amongst recent HDB resale transaction. And yet my friend is paying $50k above this. HDB valuation methodology I came across a recent article to the Straits Times forum from the Singapore Institute of Surveyors and Valuers commenting on HDB valuation: …For homogeneous properties such as HDB flats, the common...

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Do we need to monitor the stock market so closely?

Hectic but fruitful life after a new entrant Ever since my girl was born and my confinement lady left, life have been very hectic, tiring and sometimes frustrating. Eventually, when she learnt to smile at us, its had been one of the happiest moment of my life and instantly felt all this was worth it :). Looking back, my last post was more than 3 months ago and I haven’t really got the time to meddle with my portfolio or look up company reports ever since. Missed opportunities? As my girl grow up, nearing her fourth month on earth...

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Do we need to monitor the stock market so closely?

Hectic but fruitful life after a new entrant Ever since my girl was born and my confinement lady left, life have been very hectic, tiring and sometimes frustrating. Eventually, when she learnt to smile at us, its had been one of the happiest moment of my life and instantly felt all this was worth it :). Looking back, my last post was more than 3 months ago and I haven’t really got the time to meddle with my portfolio or look up company reports ever since. Missed opportunities? As my girl grow up, nearing her fourth month on earth...

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Investing in REITs – Really for the yield?

Business model of typical REIT People invest in Real Estate Investment Trust (REIT) primarily for the stable dividend yield. REITs are supposed to provide good source of passive income for those with neither the cash nor the leverage capacity to invest in typical properties for passive rental income. Is this really so? Before answering that question, let’s look at the business model of a typical REIT. In layman terms, REIT acquire properties and lease them out for rental income. The funds for acquisition comes either from shareholders (share issue), banks (loans) or both. REIT is supposed to pay out...

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Investing in REITs – Really for the yield?

Business model of typical REIT People invest in Real Estate Investment Trust (REIT) primarily for the stable dividend yield. REITs are supposed to provide good source of passive income for those with neither the cash nor the leverage capacity to invest in typical properties for passive rental income. Is this really so? Before answering that question, let’s look at the business model of a typical REIT. In layman terms, REIT acquire properties and lease them out for rental income. The funds for acquisition comes either from shareholders (share issue), banks (loans) or both. REIT is supposed to pay out...

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6/6 Hindsight vs 0/6 Foresight

6/6 Hindsight Comment and analysis articles started popping up everywhere after Dubai World requested creditors to delay debt repayments for 6 months. Articles explaining how the collapsed of these property castles built on shaky grounds of leverage was just a matter of time and listed so many warning signs that any idiot could predict this crisis with ease. This kind of postdated prediction also occured after the subprime crisis erupted in the United States. While it is true that genuine warning signs were indeed present and if people took heed, many of such crises could have been avoided. But in...

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6/6 Hindsight vs 0/6 Foresight

6/6 Hindsight Comment and analysis articles started popping up everywhere after Dubai World requested creditors to delay debt repayments for 6 months. Articles explaining how the collapsed of these property castles built on shaky grounds of leverage was just a matter of time and listed so many warning signs that any idiot could predict this crisis with ease. This kind of postdated prediction also occured after the subprime crisis erupted in the United States. While it is true that genuine warning signs were indeed present and if people took heed, many of such crises could have been avoided. But...

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I bought MacArthurCook Industrial REIT on 18 Nov — a bet gone wrong?

6 November 2009: MacArthurCook Industrial REIT (MI-REIT) announced a severely value destructive recapitalisation plan on the 6 November 2009. 11 November 2009: Cambridge Industrial Trust (CIT) annouced the usage of $10.5m out of $28m from recent private placement to acquire 9.76% interest in MI-REIT. 16 November 2009: CIT alerted MI-REIT unitholders to the value destructive nature of the recapitalisation plan and urge them to vote against the resolution at the EGM on 23 November. They intend to vote out the managers of MI-REIT and install themselves as the manager of the REIT. 17 – 20 November: Separate rallying announcements,...

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