TheFinance.sg

Understanding Dividends Announcement

Derek Lim — Thu, 17 May 2012 04:08:51 +0000

A reader contacted me with the following question and it struck me that I have been happily collecting dividends without really understanding how dividends are given out. All I know is to add up all the dividends announced and that will be my total dividends. Are there any positive/negative implications on having a single dividend announcement versus multiple announcements?

I will love to hear your views on this.

Some of my purchases like Cache and Plife recently announced the dividends but i dont understand why there is so many dividends announced on one date.

Example for cache

24 Apr 2012 CACHE Ex-Dividend

DIVIDEND : 300312 – 310312 SGD 0.00001
Record Date: 26 Apr 2012
Payable Date: 30 May 2012 24 Apr 2012

24 Apr 2012 CACHE Ex-Dividend

DIVIDEND : 300312 – 310312 SGD 0.00041 LESS TAX
Record Date: 26 Apr 2012
Payable Date: 30 May 2012

So what is the total dividend for Cache and why so many different dividends announced?

Another is Plife

09 May 2012 PLife REIT Ex-Dividend

DIVIDEND : 010112 – 310312 SGD 0.0022 TAX EXEMPT
Record Date: 11 May 2012
Payable Date: 05 Jun 2012

09 May 2012 PLife REIT Ex-Dividend

DIVIDEND : 010112 – 310312 SGD 0.0034
Record Date: 11 May 2012
Payable Date: 05 Jun 2012

09 May 2012 PLife REIT Ex-Dividend

DIVIDEND : 010112 – 310312 SGD 0.02 LESS TAX
Record Date: 11 May 2012
Payable Date: 05 Jun 2012

The same question go for plife reit; So what is the total dividend for plife and why so many different dividends announced?

Two Ideas That Will Change Your View About Investing Forever

FF — Thu, 17 May 2012 03:11:00 +0000

One day, when I was taking a shower (now readers know where all my inspiration comes from!!), I reflected on my years of working, investing, conversations with friends/family/colleague and tried to distill what were the two most important ideas or messages that I should tell anyone who was getting started on investing/retirement planning/personal finance.

You see, in Asia or in Singapore, personal finance is still pretty much a taboo topic. It isn’t the best lunch conversation topic (unless one is talking about the latest stock picks and how who and who made a million bucks from some investment). But people in general tend not to reveal their own investments, savings, etc, etc. Money is almost like a taboo topic that is not discussed.

I have heard and read about so many ideas but I think these are the two most revolutionary ideas that will perhaps change the perception or …

Comments on Straits Times Article MAS Worried by perpetual bond rush

Calvin Yeo — Wed, 16 May 2012 16:20:09 +0000

Recently, there has been quite a few perpetual bond issuance, like Singpost, Olam, Mapletree Logistics Trust etc. However, what must have caught MAS eye really is the Genting perpetual bond raising which included a second round to market to retail investors. Now that MAS has made it official that they are concerned, I guess it is probably a good thing.

According to the article, MAS officials are worried that retail investors are taking on too much risk without fully understanding the difference between a perpetual bond and a standard bond with a set maturity date. Likewise, I agree with them as many of my readers were asking me questions regarding the Genting perpetual bond and it was quite obvious that many were not knowledgeable about the product and yet went ahead to invest in them.

The article rightly points out that perpetual bonds come with high duration risk as there …

How Much Additional Buyer’s Stamp Duty Do You Need to Pay?

Propwise.sg — Wed, 16 May 2012 14:56:04 +0000

By Mr. Propwise

I recently attended an interesting talk by a Real Estate lawyer who went into the technical details of the Additional Buyer’s Stamp Duty (ABSD) that many of us would not know well. In this article I will share some of what I learnt. However, I am not a lawyer and cannot guarantee the accuracy of everything that I’ve shared. Please treat it only as a guide – if you are looking to buy a property please seek competent legal advice. The below may contain some errors – so if you’re a lawyer or real estate professional please email me at info@propwise.sg if you spot any.

How well do your know your co-investor?

One of the common areas of confusion is on the applicability of the ABSD when buying a property with a co-investor. In general, the highest ABSD that would be levied on any one of …

Taking Care Of Ourselves First

Jared Seah — Wed, 16 May 2012 14:23:13 +0000

When travelling on airlines, as part of the operational safety procedures, we will hear:”Please put on the oxygen mask on yourself first before tending to your children.”

Isn’t it counter-intuitive to our natural instinct to protect our young ones first?

Or do you know that experienced life-guards will let swimmers in trouble “drown” first before attempting to bring them on-shore for resuscitation?

Before you start kicking life-guards in the press, maybe you can pause and reflect whether it’s easier to rescue one drowning person or two drowning persons – never mind if the other inexperienced rescuer is just trying to help…

I love to follow my heart over what my mind says. But on this topic, I constantly have to remind myself to heed the sound logical reasoning of the mind over the emotional instinct of the heart.

This is also one of those “right” actions that may incur lots of public criticisms and rebuke after the fact. It takes courage to do the “right” thing.

Successful people who took care of themselves first are able to contribute back to society. You see their names on roads, hospitals, university halls, etc.

Most just see the generosity and kindness part. If these philanthropists cannot take care of themselves first, can they help others?

Some understand this truth but is hesitant or reluctant to be seen to be taking care of themselves first. They fear public accusations of being selfish, egotistical, and putting me first

No? Is reputation or the viewpoint of strangers more important than the well-being of your child?

In an airplane emergency, you put on the air mask on your child and expect your child to take care of a passed-out you? Now that’s pushing the “play victim” role a bit too far…

Have we seen examples of these in our everyday lives outside of the airplane analogy?

You probably noticed I don’t talk much about the investments and speculations in my blog. You’ve guessed right! I am busy trying to stay afloat myself!

If I can take care of myself, it will be better for my family, my neighbours, and country.

Handouts or subsidies have to come from somewhere…

Singapore Man of Leisure (welcome to my blog; just google it!)

EVA Precision Holdings (0838.HK)

dzwm87 — Wed, 16 May 2012 13:23:14 +0000

If you have noticed from my recent portfolio updated post, you will have noticed that I had taken a position in this company. Till date, given the poor global sentiments (again!), I have divested my entire stake in EVA, suffered a 30% loss as I was proven to be too overly-bullish on this counter. The reason for this post is then to explain why I found it attractive in the first place, the reasons why it became a failure subsequently and why I felt this can still prove to be attractive in the future.

The attractiveness (or so) of EVA Precision:

To begin with, EVA Precision Holdings is a vertically-integrated precision metal and plastic mould & component manufacturing service provider. In other words, they are focused on the entire vertical implementation of metal & plastic component parts – right from the start of mould construction till the latter stages …

Stock Chart: Capitaland!

Dou — Wed, 16 May 2012 13:17:07 +0000

On Wednesday, Capitaland re-test the support at $2.63 and closed at $2.66 with regular volume of 10.34 million shares traded.

A long lower shadow occurred. This is typically a bullish signal (particularly when it occurs near a low price level, at a support level, or when the security is oversold).

Both RSI & MACD are bearish though RSI in oversold region.

Important Resistance of Capitaland: $2.75

Immediate Support of Capitaland: $2.63

Currently prices are resisted by 200 days MA.

For the past 6 trading sessions, prices have been well support at the $2.63 support.

The support at $2.63 is expected to be strong.

Normally at this kind of bearish market sentiment, we would not advise anyone to long stocks. But if Capitaland remains supported despite STI falls, it may be a good chance for entry.

Stock Chart: Capitaland! is contributed by : …

Singapore Airlines To Suspend Services To Athens, Abu Dhabi!

Dou — Wed, 16 May 2012 12:23:21 +0000

On 16/May, Singapore shares ended lower due to worries Greece is edging closer to an exit from the euro zone after week-long coalition talks failed to form a government.

STI ended lower at 2831.15 (1.6%) with LOW VOL of 1.47 billion shares traded compared with 1.64 billion shares Tuesday. In the broader market, losers outnumbered gainers 365 to 71. Today STI continue to undergo heavy selling pressure on possible fallout of Greece from Euro.

Headline in STI

After market close

Singapore Airlines Ltd. (C6L.SG) plan to suspend flights to Abu Dhabi in the United Arab Emirates and Athens in Greece because of the weak performance of both routes.

Technical Analysis on STI

Immediate Resistance of STI: 2848

Immediate Support of STI: 2791

MY sentiment on STI: STI has broken another critical support at 2848 today as investors sell on bad news from Europe. We would …

U.S corporate results calendar 16 May – 31 May 2012

Ernest — Wed, 16 May 2012 06:48:00 +0000

Dear all,

For readers who trade the U.S. markets, here is my personal compiliation of the U.S. listed companies’ earnings announcement date, sorted by date and company name for the period 16 – 31 May 12. Source is from Bloomberg, correct as on 16 May 12 This should be useful as part of your consideration in your trading plan.

Company Name	Date	*Confirm / Estimated	Time	Period	Estimate
Abercrombie & Fitch Co	16-May-12	C	19:00	Q1 2013	0.014
Cost Plus Inc	16-May-12	C	Aft-mkt	Q1 2013	-0.038
Deere & Co	16-May-12	C	Bef-mkt	Q2 2012	2.531
Digital Domain Media Group Inc	16-May-12	C	Bef-mkt	Q1 2012	-0.41
GT Advanced Technologies Inc	16-May-12	C	Aft-mkt	Q4 2012	0.695
JC Penney Co Inc	16-May-12	C	4:02	Q1 2013	-0.081
KIT Digital Inc	16-May-12	C	4:31	Q1 2012	-0.33
Liquidmetal Technologies Inc	16-May-12	C	…

Summary of Armstrong Q1-2012 analyst briefing this morning

Kevin Scully — Wed, 16 May 2012 06:42:00 +0000

Summary of Armstrong Q1-2012 analyst briefing this morning
Wednesday, 16 May, 2012 2:42 PM
Posted by Kevin Scully

Steven Koh, Deputy CEO and Executive Director of Armstrong conducted the briefing to about 15-20 persons.

The company acknowledged that the Q1-2012 operational numbers were still weak with profit of just about S$1-2mn if we exclude the financial instrument and insurance figures.

Going forward however, the picture was better:

a) the HDD business is almost back to pre-flood levels in Thailand in April and this excludes the expected organic growth of 6-7% for the whole disk drive industry in 2012.

b) the automotive sector which is mainly in China and to a lesser extent SE Asia is still seeing organic growth of between 5-10% despite the weak overall car sales figures in China mainly because the weak sales are at the low end of the car market whilst Armstrong’s products …

Perpetual bonds should not be a cause for concern

SGDividends — Wed, 16 May 2012 06:21:00 +0000

I ,being a small fry, have an investment in Genting Perpetual 5.125% retail which i bought during IPO for diversification. It’s only takes up about 5% of my investible assets, excluding property. Now that you know that i am vested,i want to say that i totally do not agree with MAS being alarmed by people buying perpetual bonds. By being alarmed and placing restrictions on these kind of investments, it will simply reduce investment alternatives and push retail investors into more exotic and more risky products.

I feel that for retail investors who do not know how to invest, perpetual bonds offer a relatively safe store of value, with Genting 5.125% matching inflation. The risk of perpetuals are as follows: Genting going bankkrupt being the worst case scenario or interest rate rising, making the price of Genting lower.

Let’s look at the worst case scenario, Genting going bankrupt. Holding the perpetuals is …

Armstrong Industrial Group announces Q1-2012 results with net profit growth of 20.3% to S$5.43mn…..despite a decline in turnover by 7.1%

Kevin Scully — Wed, 16 May 2012 00:26:00 +0000

Armstrong Industrial Group announces Q1-2012 results with net profit growth of 20.3% to S$5.43mn…..despite a decline in turnover by 7.1%
Wednesday, 16 May, 2012 8:26 AM
Posted by Kevin Scully

Armstrong Industrial Group (in my Yield Portfolio) has released its Q1-2012 results. Revenue declined 7.1% to $52.3mn while net profit was higher by 20.3% to $5.3mn.

Highlights of the Q1-2012 results:

a) revenue fell 7.1% to $52.3mn

b) gross profit fell 36.7% to $8.5mn

c) other income rose significantly from a gain of derivative financial assets of $2.7mn and insurance claim of $2.3mn from the floods in Thailand.

d) EPS was 1.0 cents while its NAV was $0.205

e) Group expects its revenue to be flat in 2012 but profit to be significantly higher than 2011.

f) its operations in Thailand …

45% of CPF members who made investments suffered losses

Createwealth8888 — Tue, 15 May 2012 20:13:00 +0000

Just For Thinking …

Createwealth8888: Before any newbies putting their CPF OA 2.5% almost risk free return at risks and thinking “long-term” investing will generate positive return. See the truth for yourself. It is best to leave your CPF OA investment fund alone until you can prove that you can consistently generate more than 2.5% return from your cash fund.

Read? Resident wants ban on CPF cash for investmentsRead? Better markets give CPF investors a lift

SINGAPORE: About 45 per cent of CPF
members who used their Ordinary Account savings to make investments from 1
October 2010 to 30 September 2011 suffered losses.
In his written reply
to parliament on Monday, Deputy Prime Minister and Finance Minister Tharman
Shanmugaratnam said the investment performance could have been adversely
influenced by the volatility and overall decline of equity markets during this
period.Non-Constituency MP Lina Chiam had earlier …

Singapore Property News This Week #51

Propwise.sg — Tue, 15 May 2012 14:56:12 +0000

Residential

Free six-month stay at Koh Brothers Group’s Fiorenza at Florence Road

Koh Brothers Group is offering a six-month stay to a family of three at its newly completed freehold Fiorenza at Florence Road in exchange for feedback so that the developer could incorporate the feedback into future projects. The 28-unit development = launched in April 2009 has sold all but two identical units, including the furnished concept home and one unfurnished one, which are priced around $1.6 million and $1.4 million respectively. The 1,367 sq-ft two-bedroom concept home offers the latest home automation ware, a jacuzzi, Italian designer furniture, cutlery and even a gaming system. Interested parties have to submit a 100-word essay at the Koh Brothers office between 2pm and 6pm on May 19.

Over 200 Eight Riversuites units sold

Over 200 units of 99-year leasehold 862-unit Eight Riversuites condo project in Whampoa near Boon Keng …

Innotek reports loss of $4.46mn for Q1-2012 on a 15.2% fall in revenue to $70.36mn…..results highlights and takeaways from results briefing…

Kevin Scully — Tue, 15 May 2012 05:56:00 +0000

Innotek reports loss of $4.46mn for Q1-2012 on a 15.2% fall in revenue to $70.36mn…..results highlights and takeaways from results briefing…
Tuesday, 15 May, 2012 1:56 PM
Posted by Kevin Scully

Innotek announced a set of disappointing Q1-2012 results.

Highlights of the Q1-2012 results and analysts briefing were:

a) revenue declined by 15.2% to $70.4mn

b) company reported a net loss of $4.1mn compared to a profit of $0.8mn in Q1-2011.

c) the decline was attributed to a fall in its gross profit margin to 12.8% from 15.8% due to lower revenue from supply chain disruptions from the floods in Thailand, change in product mix to lower margin products, higher raw material prices and wages in PRC, retrenchment costs associated with divestment of certain businesses and higher sell and distribution expenses.

d) EPS was -1.99 cents while …

AIA Platinum Legacy Series

Ivan Guan — Tue, 15 May 2012 02:22:41 +0000

In keynote address at Life Insurance Association 50th Anniversary Gala Dinner, Ravi Menon, Managing Director of MAS said:

Saving for the future, investing for returns, and protecting against risk – these are the fundamentals of managing our finances. Yet so few of us do it well. We are far better at earning an income than investing it and protecting against risk.

As an affluent individual, you already have the knowledge and abilities to make good income and may have accumulated substantial wealth. However, your challenge always lies in protecting this wealth for the next generation and ensuring the growth.

This becomes especially more difficult today when interest rate is extremely low and stock market is uncertain.

If you are comfortable with US dollar exposure, the AIA Platinum Legacy series plans may come in handy.

AIA Platinum Legacy is a universal life insurance and the premium is typically paid …

Flight to safety

brokercalls — Tue, 15 May 2012 02:10:51 +0000

Here we go again; it is just like in September and December last year. Quarterly reporting is ending and there seems to be no improvement from Europe side. Fear is returning and investors are quick to shift their money to safer assets. “Sell in May” is true for year 2012.

Interest in micro-penny stocks is also dwindling. I have completely stopped trading on such stocks by end last week.

My ‘Going for Growth’ portfolio is now about 80% cash as I have closed most Long positions since end Apr (see my previous post on Apr 24) when I realised risk-reward is no longer favourable. I will revisit those stocks again, probably in June, or when their prices have slid back to their respective lows in Dec 2011.

Some companies have also reported slower profit growth or surprise loses and have disappointed the market, like Wilmar, SIA and Genting Sp. I reckon there will not be much to look forward to for Wilmar and SIA for the next 3-6 months after their recent results, although their share prices look ‘cheap’.

I am still trading a couple of REITs counters, such as my favourites CMT, A-REIT and MIT.

I have recently added some OCC 5.1% NCPS, ST Engg and Second Chance shares to my defensive portfolio.

Starhub is the ‘darling’ at the moment – still trading at an all-time high despite ‘going XD’ recently. Unfortunately, I do not have as I have always been waiting for the prices to slide more.

Keppel Corp: Will it go below $10 again? If it does, it could turn out to be an attractive ‘growth + yield’ play.

brokercalls

A full time investors/traders who specialised in Singapore equity market.
Started trading part-time in 1999; turned full-time in 2003.

Mostly suffered losses in the early days of trading, until the breakthrough during the bull-run from 2006-2008. Fortunately, for some prudent money management, the sharp decline in 2008/2009 did little damages to my portfolio and at the same time, presented a great buying opportunity for quality

Financial May-hem

Lau — Mon, 14 May 2012 23:32:00 +0000

May is the month for mother’s day so first and foremost, Happy Mom’s Day!

On the financial front, May 2012 seems to be an eventful month for the Euro zone. A new French leader has been elected in power who threatens to ratify the financial treaty due to growing dissent from the population because of the austerity measures. This was followed by Greece difficulty in forming a coalition. Even Bank of England is keeping interest rates to their near zero range.

One thing financial markets dislike is uncertainty. Rule of thumb is that uncertainty carries risk and with increased risk, a higher premium is required to take on more of it. With the road ahead unclear, and the summer holidays approaching, believe most would look towards taking their bets off the table.

This reminds me of a recent term that has attracted a lot of hype, “known unknowns”. These known …