Author: The Fifth Person

The Battle of the Telcos: 5 Key Metrics to Examine in Singtel, M1 & StarHub

This will be the final instalment in the Battle of the Telcos series and I believe you over the last three articles have a clearer grasp of Singtel, M1 and StarHub’s business models and the unique strengths and challenges each company has. For this instalment, we are going to analyze five key financial metrics across Singtel, M1 and StarHub and conclude which telco is best positioned to handle the increased competition that’s going to arise when the forth telco comes online in Singapore soon. So let’s begin: 5 Key Metrics to Examine in Singtel, M1 & StarHub #1 Net...

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Activist Investors and How You Can Profit Along With Them

Carl Icahn, David Einhorn, Bill Ackman, Nelson Peltz, Boone Pickens… do those names ring a bell? If they do, you probably know what this article is all about, but for the benefit of all readers, these guys (who also happen to be billionaires) are what the financial industry labels as activist investors. A simple but powerful example of activism in action was when Carl Icahn tweeted that he believed Apple was grossly undervalued and the stock instantly jumped US$8 billion in value for all shareholders. Since joining Twitter, Icahn has been using it as a platform to announce his...

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Investment Legend Carl Icahn and Why He Thinks Apple is Worth $240 per Share

Carl Icahn is one of the richest investors with a net worth of US$21.2 billion. This is entirely self-made as he grew up in a middle class New York family. He started his investment career as a stockbroker before starting his own firm. He made a vast fortune raiding companies with TWA as his highest profile victim. After he made his fortune as a corporate raider, he became a relatively mild hedge fund activist and successfully persuaded Apple to execute share buybacks. He is a hardworking contrarian who argued that Apple is worth $240 a share and the market...

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4 Financial Mistakes You Will Regret in the Future

If you are 30 years old and not yet serious about finance, you are…like most people. It’s common to ignore serious financial mistakes and money issues until you need your first house, first car, first surgery, etc. And who can blame you? Finance is dull. Just look at those finance experts on the news – we’d rather watch an Orangutan pick nits out of its armpit on Discovery Channel. At least there’d be less maths involved. But never fear: here’s the easy version of what you need to know from lessons distilled from years of poor life choices: #1:...

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The Battle of the Telcos: 6 Things You Need to Know about StarHub

Despite being a latecomer to the local telco industry, StarHub has overtaken M1 and has the second largest mobile market share in Singapore. This success is mainly due to their “hubbing” strategy. I’ll cover more about StarHub’s hubbing strategy and the six things you need to know about the company in this article but before I dive into that, let’s gave a quick background on StarHub’s business model: The Business StarHub is 55.97% owned by Asia Mobile Holdings whose major shareholders are Singapore Technologies Telemedia, and Otel Investments. StarHub’s revenue generation is derived from five business segments: mobile, cable TV,...

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3 Reasons Why the Ringgit Fell Below 3 against the Singapore Dollar

The Malaysian Ringgit declined sharply in the past month as the 1MDB scandal intensified and Malaysia’s prime minister responded by reshuffling his cabinet. Investor confidence in Malaysia has been eroded; the Ringgit is the worst performing Asian currency over the past 12 months. Weak oil prices also increased fears of higher fiscal deficit for 2015 and concerns over Malaysia’s rising external debt Institutional investors are fleeing the Ringgit due to low Malaysian central bank reserves and fears of capital control being implemented like in 1998 during the Asian Financial Crisis The recent sharp decline of the Malaysian Ringgit (MYR)...

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Economists Lower Singapore Growth and Inflation Projections for 2015: MAS Survey

SINGAPORE: Private-sector economists are less sanguine about the growth outlook for Singapore’s economy this year, and have moderated their expectations for several sectors, a quarterly survey released by the Monetary Authority of Singapore on Wednesday shows. The economists polled in the survey say they expect the economy to grow 2.2% this year, down from their median forecast of 2.7% in the previous survey in June. The economy grew 1.85 in 2Q 2015. The manufacturing sector is expected to see a contraction of 2.7% this year, down from the 0.5% forecast in the previous survey. The finance and insurance industry is expected...

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5 Money Myths That Will Leave You Broke

Not everything we learned in school about money is right. Well, maybe it was true with regard to our allowances, but things are a lot more complex in real life. Here are some money myths you’ll be financially healthier without: Myth #1: Pay Off Your Home Loan as Soon as Possible This is one of the most dangerous and yet common pieces of financial advice around. It is often made by people who don’t understand home loans or who have very limited experience with long-term financial planning. Why is this a bad idea? Consider this: Say you have saved...

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The Battle of the Telcos: 5 Things You Need to Know about M1

Following up on the “Battle of the Telcos” series and my previous Singtel analysis, this week, I’ll be covering M1 and five important things you need to know about the company. But before we dive into that, here’s a background on M1’s business model. The Business M1 has three major shareholders: Axiata Investment (28.42%), Keppel Telecommunication & Transportation (19.15%), and Singapore Press Holding (13.32%). M1’s revenue generation is derived from four business segments which are mobile telecommunication services, international call services, fixed services, and handset sales. Mobile Telecommunication Services The major contributor is mobile telecommunication services which accounts 62% of...

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4 Reasons Why the STI Collapsed 18.6% and Broke Below 3,000 Points

The Straits Times Index (STI) broke below the psychologically important level of 3,000 when it opened at 2,971 points on 21 August 2015. The index fell further and closed at 2,843 points the next trading day – an 18.9% drop from its peak of 3,531 points in April. The STI has since rebounded slightly to 2,945 points but the big question on everyone’s mind is why did the STI drop so drastically?   Chart: Yahoo Finance Let’s explore what happened and look at how market optimism was built up in the first quarter, then how economic doubts surfaced in the...

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3 Ways to Maximize Your Investment Returns During Market Crash

On 24 Aug 2015, China experienced its “Black Monday” – in reference to the infamous 1987 global market crash. The Shanghai Composite fell 8.5% in one single day spreading panic around markets worldwide. Japan’s Nikkei and Hong Kong’s Hang Seng fell 5.9% and 5.2% respectively. The sell-off continued when the European markets opened. The UK (-4.7%), Germany (-4.7%), France (-5.3%) and Italy (-6%) all saw their markets drop markedly. Finally, the Dow Jones Industrial fell 3.94% — its worst day in four years. The U.S. and regional markets stabilized yesterday (25 Aug 2015) but the sell-off continued in China with...

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The Fifth Person is Now on NewsLoop!

The Fifth Person is now on NewsLoop! NewsLoop is Singtel’s e-reader that puts together the best news and lifestyle content from Singapore, Malaysia, Indonesia, Australia, Philippines and Thailand, all into a single elegant app. We’re proud to say that The Fifth Person is now featured alongside renowned publications like Channel NewsAsia, The New York Times, BBC, Reuters, Bloomberg and more! With over 600 publishers and 30 categories like Top Stories, Business & Finance, Tech & Gadgets, Health, Sports and more to choose from, you can personalize NewsLoop to deliver news that matters most to you. Check out The Fifth Person in the...

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How Will BreadTalk’s “Soya Bean Milk Saga” Affect the Company’s Profit?

At 10 o’clock on a Monday morning, I wanted to grab a bun from BreadTalk at Somerset 313 for a quick breakfast. After looking through the buns on the display, I had a hard time deciding on what to eat. Not because I was indecisive but there weren’t any tags to label and describe the different buns. I gave my feedback to a staff member but she did nothing except to continue wiping the trays. I ended up getting a cheese hot dog bun (easier to identify), paid for it, and left the outlet. As a customer, frankly, I...

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5 Ways to Make Money With Your Hobbies

Besides finding ways to lower your expenses so you have more money to save for investing, the other side of the coin is find ways to increase your income. The more income you can earn, the more you can set aside for investments to grow your wealth. And what better way to earn extra income than to make money with the things you already love to do: hobbies! Hobbies grow alongside our wealth. And by that, I mean they get more expensive! But while many of us think of such lifestyle choices as being purely a cost, it doesn’t...

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Investment Legend: David Einhorn

Photo: ValueWalk US investment legend David Einhorn started his own hedge fund with $900,000 and grew it to $10 billion over 20 years. Over this period, he accumulated around $2 billion of net worth. He made his name by uncovering the accounting irregularities in Allied Capital and Lehman Brothers. With Allied Capital, he had to endure six years of investigations before his name was cleared and proven right. For Lehman Brothers, it cemented his reputation as a leading hedge fund manager. David Einhorn has a unique blend of investment styles which combines intensive due diligence, macroeconomic awareness and portfolio...

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