Author: SGDividends

About Corporate Bonds: My nearly itchy fingers

My banker called me one day and asked me if i wanted to participate in a certain OTC ( over-the- counter means its not on any exchange like Singapore Exchange) Singapore company bond issue denominated in SGD in the primary market ( meaning IPO of bonds). It’s really HOT, she said…many people subscribing ! Buy Buy Buy Buy …and im feeling a little bit dizzy already.  Ok she can’t say that by regulation…Many times i exaggerate.. Specifications 1)Unrated, perpetual. This means the company has a choice not to pay back the principal. 2)Dividend stopper . This means equity holders...

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Penny pinching season

Officially, other than the monthly $1k ETF through POSB invest saver which pays me “brokerage” when i buy, there is nothing i dare buy from the local stock market at this point in time. The old adage:’Buy when there is blood on the streets’ came true again and i hope you took opportunity of that short period of time from late 2015 to early 2016. What will i be doing since STI has surged – Dec 2016 How to stop oneself from being greedy – Feb 2016 Lessons learnt in this bear market – Jan 2016 Controlling my emotion –...

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Its not me – part 2 – Fraser Hospitality Trust

It’s human instinct to want fairness and i am all for fairness.  In one of the facebook group ” Remove Sabana Reit” ,a member by the name of Mr Goh  mentioned that Sabana’s rights are renounceable while Soilbuild rights are non-renounceable. This may explain why Sabana’s rights expense was 12 times more expensive than Soilbuild. Renounceable rights can be traded through SGX while non-renounceable rights cannot be traded on SGX. Naturally, since one has to engage investment bankers to list these tradable rights on SGX , it will cost more. Fair enough.  However, it doesn’t explain why the expenses...

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It’s not me – Soilbuild Reit

Having followed the 2 facebook groups to remove manager of Sabana, one member mentioned that the cost paid to raise the proceeds through their rights was quite huge. Let’s compare with industry practice again. This skill honed from years of working under a boss who keeps asking me why i want a raise every year and the need to compare with industry practice. So the closest one to compare with Sabana would be Soilbuild, both being industrial reits, closest in market capitalization size and closest in rights issuance dates. Soilbuild Reit’s market cap = $662 million Sabana Reit’s market...

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A fortunate series of events – AIMS, Mapletree, Soilbuild, Cambridge, Ascendas and Sabana Reits

I am “Old Cow Eat Tender Grass” a.k.a SGDividends HYST called me and shouted:” May the year of the Rooster see you lose lots and lots of money and after losing all your money, lose your hair too! Just because you gave me $2 and a bunch of expired discount vouchers with minimum spend of $88…. You suck!” She slammed the phone, before i could retort and say :” It was just a joke, look at your DBS paylah, i put $88 in it…….” A bad joke, which reminded me of the Bee Gees song. “I started a joke...

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Sabana Reit – At the cusp of an epoch

HSYT HSYT keeps saying my english sucks and i am unintelligible. Hence, the need of a nice cheem title to show that i have some class in my english. Anyway, HSYT came to collect angbao from me today and before she left, she muttered the following under her fragrant breath, just to rankle and jiggle this old brain of mine.( got class?) “ First they came for the Socialists, and I did not speak out— Because I was not a Socialist. Then they came for the Trade Unionists, and I did not speak out— Because I was not a...

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Sabana Reit – An opportunity to unlock value

On 25 January, Sabana released their latest results presentation. I had a very troublesome time trying to calculate their price-to-book value post-rights.  The adjusted NAV per unit shown refers to pre-rights but naturally, everyone would be interested in knowing the post-rights one as the rights shares has already been issued. I can’t find any information on the new right units in their latest presentation. I had to dig up previous documents in order to find out the number of new rights units… so troublesome. New rights units = 310,712,244 Units in issue as at 31 Dec 2016 = 742,371,286...

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Singpost – Don’t count on it for dividends

Singpost is not longer the high dividend paying stock it used to be with the change in dividend policy. With the increased shares due to placement, their latest half year earnings per share is illustrated to be 2.63 cents.  Extrapolating this to a full year earnings per share = 5.26 cents. With a 60% payout ratio = 3.156 centsDividend yield (last done price $1.495) = 2.11%With a 80% payout ratio ( last done price $1.495) = 4.208 centsDividend yield = 2.81% The range of 3.156 – 4.208 cents is a fall from the usual and consistent 6.25 cents. To...

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Asian Pay Television Trust – from IPO price of $0.97 to $0.38. Dividend yield of 18.4%!

HSYT came to me again to say this motherhood statement: :”The time to buy is when there’s blood in the streets.Go buy APTT. Drop a lot! Dividend yield 18.4%,  P/B 0.45!” Nice, worth a look! Except that this phrase sounds vaguely familiar…Rothschild or something. Anyway, a drop of $0.97 to $0.38 in 3 years is darn huge and it would be very interesting to point the blame at something, interest rate rise, China factor, franchise rights not being able to renew, e,t.c and seriously, this pointing finger is pointless and it is after the FACT that it has dropped....

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Interest rate sensitivity of Sabana

Like a moth to a flame  Burned by the fire  My love is blind  Can’t you see my desire?  – Janet Jackson So if you have read my previous post about this particular “Hot sweet young thing ” friend who recommended me to buy Sabana, she is back to recommend me! After Sabana’s price having dropped further to $0.38 from the price of $0.51 when she recommended me. (Due to rights). Hot Sweet Young Thing ( onwards called HSYT) said:” COme oN, a lousy business is a good investment at the right price. Can you calculate how Sabana will be...

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Interest rate rise and interest coverage

Since Sabana Reit has already fallen so hard, why not buy it as there should be enough of a margin of safety ( P/B 0.66) and all bad news have already been priced in. Yeah why not, good idea! Except that the Federal Reserve has indicated a few rate rises next year and here is the picture. By compiling the interest coverage ratios of the REITs, it can be seen that Sabana Reit has the lowest interest coverage ratio of 2.63 and any increase in finance cost would hit it hardest. Anyway,  I do think that concerns about gearing...

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What will i be doing since the STI has surged

As of writing, the STI has hit a high of 2960.67. Don’t know whether to be happy or sad. I’m happy because my concentration of purchases in banks since September 2015 and throughout 2016 paid off. I am quite happy because my Super Group shares are very highly likely to be privatized. I made a loss as i went in at the wrong entry price and its a lesson RE-learnt to not fall in love with a stock. I’m happy because ARA which i acquired this year got privatized and this is a gain in profits. I am sad...

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Renew COE for 10 years versus 5 years versus brand new similar car

As i like to quantify things, i just needed to do up the following table to see how much savings i make if i were to renew my COE car. Note that the depreciation which i calculate is much more stringent than the depreciation that is thrown around frequently in forums or sgcarmart and the likes because i also took into account the increase in annual road tax, the increase in the mandatory vehicle inspections and the overhaul i did for my old ride. Just to say: Annual road tax increases by 10% every year till the 5th year....

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Tips for renewing car

Alas, my trusty Japanese car is turning 10 years old and i have decided to renew its COE as it still runs smoothly and a check with my trusted mechanic says that it is in perfect condition for 10 extra years. Base on the COE chart below, i was hoping that the cost of COE would go down since 2006 had the highest COE quota given out and that more people would deregister in 2016. It didn’t go down much to my utter dismay. Who would have thought that Grab and Uber would buy so many cars in such...

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