Traded Tsit Wing for Food Junction on 28th August 2009

With this, I officially threw in the towel on Tsit Wing, making a meagre 8.5% (taking dividend into account) over 3 years. I could either continue to wait for their restructuring efforts to pay off (assuming they aren't taken private successfully) or look somewhere. I chose the latter given the lack of visibility on how long the wait could be amid deteriorating performance, beginning even before … [Read more...]

Traded Tsit Wing for Food Junction on 28th August 2009

With this, I officially threw in the towel on Tsit Wing, making a meagre 8.5% (taking dividend into account) over 3 years. I could either continue to wait for their restructuring efforts to pay off (assuming they aren't taken private successfully) or look somewhere. I chose the latter given the lack of visibility on how long the wait could be amid deteriorating performance, beginning even before … [Read more...]

I bought Super Coffeemix Manufacturing Ltd AGAIN on 13th August 2009

RationaleSuper Coffeemix just announced its 2Q 2009 results which I deemed as encouraging (though not as superb without its fair value adjustments on its investment securities).Performance over the last several quartersThe table below summarises its quarter performance:A few things to note:Operating profit seems to bottom out in 4Q 2008.Ignoring fair value adjustments of its investment securities, … [Read more...]

Condominiums – Opportunity or Trap

Upgrade or downgrade? I came across the following article in the 联合早报: 是享受还是受罪. It described someone nearing retirement who 'upgraded' to a condominium of 102 sqm and a new mortgage to pay off, by selling his fully paid up EA flat of 145 sqm. When enquired about his rationale, the simple answer was " no choice, for the comfort, for a better external outlook, will have to suffer a … [Read more...]

Condominiums – Opportunity or Trap

Upgrade or downgrade?I came across the following article in the 联合早报: 是享受还是受罪. It described someone nearing retirement who 'upgraded' to a condominium of 102 sqm and a new mortgage to pay off, by selling his fully paid up EA flat of 145 sqm. When enquired about his rationale, the simple answer was " no choice, for the comfort, for a better external outlook, will have to suffer a bit".Selling like … [Read more...]

First Ship Lease Trust – Back to Earth

2Q 2009 Results First Ship Lease Trust, FSLT announced its 2Q 2009 quarter results on 21st July, 2009. Forward DPU forecast came in at 1.5 USD cents, much lower than the 3.08 USD cents ever announced. Rather then feeling disappointed, I felt reassured of my investment instead. The forecast of 1.5 USD cents DPU was arrived at by setting aside 50% of free cash flow to pay off debt, rather than … [Read more...]

HDB Prices – Still so sticky?

In my earlier post on property prices in February this year, I shared my view on why I think there are still room for the prices to drop further. However, one waiting since then will be quite disappointed to note that the prices are still very sticky, especially HDB resale prices: (src: … [Read more...]

Downside to Value Investing?

The story The controlling shareholder, Wong's Brothers, decided to delist Tsit Wing at an offer price of 27 SGD cents. The rationale behind the delist is due to poor interest in its stock (low market valuation that does not reflect its worth) and to facilitate restructuring by easing capital investment into the business as a private status. Downside to value investing Entering my 4th year … [Read more...]

I bought CH Offshore on 25th May 2009

Before I go into the rationale behind my purchase, I will like to share some thoughts on the oil & Gas industry (from the investment context) and value investment in general. I had quite a fruitful discussion on the above topics in one forum thread and exchange of comments with a reader on my blog entry when I purchased SPC. Oil & Gas Industry from an investment point of view The … [Read more...]

Matrix for Personal Finance Planning

Rationale As I was working on a long term planning project, I came up with a matrix to put various initiatives in perspective. It suddenly dawn on me that I could apply that matrix I developed to personal finance planning. I promised my friend to blog on it, so better keep my promise :). Personal Finance Planning Matrix The above shows the personal finance planning matrix I've created … [Read more...]

First Ship Lease Trust’s Distribution Reinvestment Scheme (DRS)

DRS Summary In short, DRS is a scrip dividend scheme for FSLT to make payments through issuing new shares in place of cash. FSLT had 2 strategies to reduce cash payout in terms of dividend, one is via direct reduction in distribution (from almost 100% to 75%) and second is via DRS. While a 25% cut in direct distribution conserve about USD 4m, how much DRS can conserve depends on the take up … [Read more...]

I bought Singapore Petroleum Company on 27th March 2009

Rationale Ever since the crude oil prices hit around US$ 30 sometime ago (from a record high of above US$ 140 last year), I believe the business fundamentals for oil companies (e.g. SPC) have made a U-turn. There are a two main sources pressuring their income statement: Inventory write down (declining oil prices) Declining revenue (from falling demand and refining margin) Given the … [Read more...]

Yield Investing versus traditional Value Investing

Motivation No one doubts that the current economic crisis is one of the worse the world experience since the great depression in the 1930s. However, the silver lining is that it brings one of the greatest investment opportunities too. I remember $20,000 is not even sufficient to buy one lot of DBS or UOB, now this same amount can buy one lot each of DBS, UOB and OCBC (with some to spare if not … [Read more...]

Property prices, how much lower can it get?

I read with interest an article published today on Sunday Times, 22nd February 2009, Keen to cash in on mortgage sales? Quoting from the article, ... potential buyers are "coming in floods", asking to be on her company's list or calling about properties on offer. ... but it is very difficult for us to strike a deal because the buyers are putting in very low offers. They want to go only for a … [Read more...]

Global Interest Rates and Foreign Currencies

Almost every month, there are news of some central banks in some corner of the earth slashing their interest rates to fight the ongoing credit and financial crisis. These came along with aggressively generous economic stimulus packages by various governments, drawn from reserves or borrowed from future generations. Theoretically, the potential amount of money flooding the market is sufficient to … [Read more...]

First Ship Lease Trust 4Q 2008 results – Desperate measures in drastic times

4Q results at a glance First Ship Lease Trust posted its 4Q results today, 21st January 2009. DPU for 4Q will be USD 3.08 cents but will be cut to about USD 2.45 cents from 1Q 2009 onwards. i.e. Using last done price of 46.5 SGD cents and assuming 1.5 SGD to 1 USD, the yield will be cut from current annualised 39.7% to 31.6%. Rationale behind distribution cut It is mentioned in the press … [Read more...]

Digging a hole to fill another

It is said that the current financial crisis is the worse the world have seen since the last depression in the 1930. So it is not surprising that big problems requires big effort to deal with them. The problem then becomes even bigger in itself when the effort turns too drastic. The world greatest printing machine A special report was published on cnn website sometime in early December 2008 … [Read more...]

I bought Cambridge Industrial Trust … again on 12th December 2008

Update On 11th December 2008, after trading hours, Cambridge Industrial Trust announced their successful refinancing deal of 390m, 3 year tenor term loan at an effective interest rate of 6.6% per annum. Rationale Qualitative Assurance - fear allayed By 2009, many REITs would have hefty term loans due for refinance, Cambridge Industrial Trust is one of them. The on-going credit crunch … [Read more...]

Property vs Equity as an Investment

Rationale I happen to have chat with my former colleague on the investment merits of equity versus property, in the context of passive income as primary concern and capital returns being secondary. Under this context, an investment must be one that provides a stable cash flow, either from monthly rentals or dividend payouts. Property vs Equity Rents vs Dividend At first glance, … [Read more...]