Author: The Fifth Person

OSIM Founder Makes $310 Million Cash Offer to Take Company Private

Ron Sim, the founder of luxury massage chair maker OSIM International has made an unconditional cash offer worth $310 million to buy out minority shareholders in the company to take the company private. Sim, who controls 68.31% of the company, is offering to buy the shares at $1.32 each through his holding company Vision Three. That’s a 7.8% premium to its last traded price of $1.225 on March 1. OSIM shares have tumbled 46% in 2015, the biggest annual decline since the 2008 global financial crisis. Net profit fell 50% to $51 million as the currency turmoil in Asia dampened sales, the company said in January....

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5 Reasons Why the Bank of Japan Introduced Negative Interest Rates

Negative interest rates used to be an exclusively European affair where only the central banks of Europe, Switzerland, Denmark and Sweden dared to venture. Japan became the first Asian country to introduce negative interest rates with its -0.1% decision on 29 January 2016. In simple terms, negative interest rates mean that instead of receiving interest on your money deposited, you pay an interest to keep your money with the bank. The decision to impose negative interest rates was highly controversial. Bank of Japan Governor, Haruhiko Kuroda, was only able to push through with a tight 5-4 vote and negative...

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15 Singapore REITs that Made You Money if You Invested from Their IPO

In 2011, Teh Hooi Ling wrote an intriguing article ‘The REIT Myth Busted’ on The Business Times. She pointed out among 17 REITs with a listing history of four years, 14 of them issued a cash call (rights issue). Teh stated that for many of the REITs, their cash calls exceeded the dividends paid to shareholders. In other words, whatever the REITs pay out in dividends, they ‘take it back’ in the form of rights issues. Calvin Yeo, a REIT investor, responded to Teh’s article with his own ‘Is the REIT Myth Busted?’. He pointed that Teh’s article does...

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Singapore’s Growth Likely to Converge With or Stay in Line With Aaa Peers

Singapore’s growth is likely to converge with, and stay in line with its Aaa peers, over the medium to long term, although trends will remain highly volatile, says Moody’s Investors Service. In its “Government of Singapore: Productivity Gains Crucial to Restore Robust Growth” report on Tuesday, Moody’s says that economic growth in Singapore has reached a tipping point, and significant productivity gains are key to restoring robust GDP growth. Between 2000 and 2010, Singapore’s GDP grew by an average pace of 6.2%, higher than the median of 2.1% for Aaa-rated economies, but also one of the most volatile. But...

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10 Things I Learned from Warren Buffett’s 2015 Annual Letter to Berkshire Shareholders

Warren Buffett just released his annual letter to Berkshire Hathaway shareholders on Saturday and every year investors await what the Oracle of Omaha has to say about the market, economy and Berkshire’s past year’s performance. Buffett has been writing his annual letters for the last 50 years (since 1965) and you can read many of his past letters here. His annual letters are usually laced with funny anecdotes and one-liners as he imparts his investment wisdom and insight gleaned from decades of being arguably the world’s greatest investor. So without further ado, here are 10 things I learned from...

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Warren Buffett’s 2015 Annual Letter to Shareholders is Out — Read It Here

Every year, Warren Buffett writes an annual letter to the shareholders of Berkshire Hathaway. His annual letters are one of the most widely read documents in the business world as investors clue in on Buffett’s outlook for the market and economy as well as Berkshire’s performance the past year: To the Shareholders of Berkshire Hathaway Inc.: Berkshire’s gain in net worth during 2015 was $15.4 billion, which increased the per-share book value of both our Class A and Class B stock by 6.4%. Over the last 51 years (that is, since present management took over), per-share book value has grown from $19...

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Singapore REITs Hit 5-Year High in Distribution Yield Amid Market Slump

I recently came across a Thomson Reuters article that reported Singapore REITs have hit a five-year high in distribution yield. Their analysis of 14 REITs showed the median dividend yield was 6.7% at end-January — the highest since at least April 2011. According to Thomson Reuters: “The yield trend offers a timely reminder of the lingering allure of investments tied to brick-and-mortar such as REITs, which typically provide stable income streams, at a time when investors are on a knife-edge amid global market turmoil and fears about the health of banks and the broader economy.” I decided to a...

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Nestle’s FY15 Net Profit Up at RM591 million, Pays RM1.30 Dividend

Nestle (M) Bhd’s fourth quarter net profit rose 2% to RM99.79 million from RM98.3 million a year earlier. The food and beverage manufacturer said profit rise came on revenue growth during the fourth quarter ended Dec 31, 2015 (4QFY15). In a statement to Bursa Malaysia today, Nestle said revenue was higher at RM1.2 billion versus RMI. 11 billion on domestic and export sales. “From profit perspective, gross profit increased from RM377 million to RM460 million, a growth of 21.9% vs the corresponding period last year. Main drivers for this good profit development were the turnover increase, favourable trends in most of the raw materials, as well as diligent cost management throughout the...

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Keppel Corporation: 5 Important Things You Need to Consider Before You Invest

Keppel Corporation (SGX: BN4) is one of the largest conglomerates in Singapore and one of the world’s largest builders of offshore oil rigs. In normal times, the latter point would be a cause for admiration, but with oil prices plunging over 70% from its 2014 peak, companies in the oil & gas industry are facing challenging times – and Keppel is no different. Chart: Financial Times Keppel’s share price has fallen from a high of $11 in July 2014 to $5.30 (as at 22 Feb 2016) – a 52% drop. When share prices fall so drastically, it’s easy to...

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Take Long-term View on Wilmar, Kuok Tells Investors

Investors should focus on Wilmar lnternational’s overall business vision, instead of fluctuations caused by commodity cycles and other market hiccups, says Kuok Khoon Hong. Kuok was practically chiding the room full of analysts and reporters who showed up for the company’s earnings briefing, after headlines this morning zeroed in on the dip in the group’s full year earnings. The chairman and CEO of Wilmar International says the group is on its way to become one of the biggest players in the global food industry, given the breadth and scale of its operations across Asia. Wilmar’s interests span oil palm plantations to sugar milling, soybean processing and sales...

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Wilmar’s FY2015 Earnings Fall 8.6% on Foreign Exchange Losses

Wilmar International reported an 8.7% decline in earnings to U SSI .1 billion ($1.55 billion) for FY2015. Core net earnings, which exclude non-operating items, fell 4.4% to Sl.2 billion for the financial year to December, primarily due to foreign exchange losses. Group revenue declined 10% to $38.8 billion, due to lower commodity prices. However, this was offset by the strong growth in sales volume and higher margins. The tropical oils segment recorded a 4% decrease in sales volumes to 23.5 million MT, which resulted from lower crude palm oil prices, weak demand and lower margins, despite the 4% improvement in production yield to 21.4MT per hectare....

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5 Important Factors You Need to Consider Before You Invest in Any REIT

If you’re looking for passive income, then investing in stocks that pay you a stable and growing dividend is something that you need to keep your eye open for. In that vein, REITs are great investments if you plan to invest for stable, passive income. Why so? Firstly, REITs (or real estate investment trusts), as their name suggests, invest in real estate. And in land-scarce Singapore, property in general makes for a great long-term investment. Our country is also safe, politically stable, and well run (although some of us would disagree!) which means the value of our real estate...

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StarHub Posts Stable Earnings of $372.3 million for FY2015

StarHub posted earnings of $372.3 million for FY201S, a marginal increase from the $370.5 million reported in FY2014. Revenue rose 2.4% to $2.4 billion, with the 34.5% increase in equipment sales to $228.3 million, despite the 0.1% dip in service revenue to $2.2 billion. Mobile revenue decreased 0.6% to $1.2 billion for the full year to December, on the back of lower prepaid and roaming revenue, and broadband revenue was 0.8% lower at $200.3 million. Pay TV service revenue grew 0.3% to $391 million, and fixed network service revenue was $6.6 million higher, arising from its data & internet services. For the full year, revenue from equipment...

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How One Ginger Chicken Dinner Made Me 64% Returns in Soup Restaurant Group Ltd

Most Chinese food lovers in Singapore would probably know of Soup Restaurant — a Chinese restaurant that sells a popular dish called Samsui Ginger Chicken. In the 1920s-40s, Samsui women referred to a group of Chinese immigrants who came to Singapore in search of construction and industrial jobs. Due to poverty, they consumed a traditional dish, ginger chicken, only during Chinese new year. Today however, with our increased standard of living, it’s common to consume this dish any day. Photo: Soup Restaurant And so it was that I had my first taste of Samsui ginger chicken at Soup Restaurant...

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Singtel Reports 1.7% Fall in 3Q Earnings to $953.5 Million

Singapore Telecommunications reported 3Q earnings inched down 1.7% to $953.5 million versus $969.8 million last year. However, in constant currency terms, net profit would have increased 6% if adjusted for a one-off tax credit last year and the impact from Trustwave acquired in September. For the three months to December, operating revenue came in slightly higher at $4.47 billion versus $4.43 billion a year ago. SingTel says the consumer business in both Singapore and Australia delivered strong EBITDA growth during the quarter. In Singapore, mobile data growth remained strong as post-paid customers traded up to higher-tier plans with 26% exceeding their data bundles while...

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