It looks like the long awaited correction of global equities is finally here… strategy during this period After about a 100 days the early March 2009 rally which pushed markets to very over-bought levels finally seems to be pausing for breath. The long awaited correction or consolidation is good as stocks have run ahead of fundamentals pushing the market from a very under valued to an over-valued scenario. The 60 point correction in the STI yesterday was … [Read more...]

The True Cost of Term Plans

In the course of my work, I've met clients who claimed that term plans are better than whole life plans because they are 'cheaper'. Indeed, on the surface the premium of a term plan is much lower than that of a whole life plan. However, when I did a comparison of a term plan versus a limited premium whole life plan, I discovered that there is a catch to it: the term plan is only cheaper for a … [Read more...]

Boustead – FY 2009 Financial Analysis and Review Part 1

Boustead released their full-year 2009 results on May 28, 2009 and the Group had achieved a seventh record year of revenues and profits. All divisions except water and wastewater showed growth and the Balance Sheet was further bolstered by a net cash balance of about S$150 million. In addition, for FY 2009, Boustead had also released the net profits for each division, which enables me to compute … [Read more...]

LMA – A hidden asset play?

LMA has been in my radar ever since October last year, when I noticed that it was regularly buying back its shares. In fact, it has been doing so since 2007 but the number of treasury shares then was not significant and its price was too high. Although some directors have also been raising their stake, I shrugged it off as a company/directors that are taking this opportunity to increase their … [Read more...]

Marriage: A risky business

Lately I came to know a few friends from different social circles getting married. I am not sure if you call it pre marriage jitters, but 2 different couples who have already bought HDB houses are already having 2nd, 3rd thoughts about that person they want to marry. One couple was together for 6 years, and the reason for getting married is because they have already known each other for 6 years … [Read more...]

Tat Hong – FY 2009 Financial Analysis and Review Part 3

For this third and last part on my analysis of Tat Hong’s FY 2009 financials and prospects, I would like to touch a little on their fleet profile as well as prospects moving forward. As readers are probably aware, the global financial crisis has yet to recede and many companies are still struggling to cope with declining orders and reduced demand for their goods and services. Tat Hong is no … [Read more...]

Limited Investing Opportunities In Range Bound Trading

Time flies when we are having fun… we are now into the 13th week of a stock market rally that started in March. The embers of the stock market rally has not flickered out entirely but there are signs of investors taking some profits off the table. In the short term, stocks may still rise. Blue chips have retreated slightly but are generally holding up while rotation plays have seen penny stocks … [Read more...]

Hopefully we are seeing the start of a health correction from recent strong gains which will form…

Just back after a short break with the family in Malaysia. The correction in the Singapore market yesterday should be considered healthy and necessary after recent strong gains which would help the market form a new base before its next move.   Let's start with where the STI Index can go.....(see charts below) - it looks like the first stop is 2230 and the next 2110.   I think the second level … [Read more...]

My Clients(1) – The Singles

Over my 6 years as a financial adviser, my current clientele base is around 20% young singles, 20% matured singles, 50% young families and 10% matured families. Most of them are in the region of mid 20s to early 40s. My age is between them and hence I can understand their concerns quite well when I met up with them. I can perhaps share a bit of my observation about these 4 groups of my clients … [Read more...]

Tat Hong – FY 2009 Financial Analysis and Review Part 2

For Part 2 of my analysis for Tat Hong’s results, I will be focusing on their business divisions and analysing the performance of each, as well as highlighting the sales mix which has changed from FY 2008 to FY 2009. It is hoped that through this analysis, it will be possible to pinpoint whether Tat Hong is able to continue to maintain their gross margins and also whether they can sustain … [Read more...]

Pay 83% premium for hope?

The Singapore stock market has gone spectacularly over the past few months. It would be foolhardy to say otherwise. Apparently, the sense of optimism is now so strong that some speculators are willing to pay a premium of 83% for hope. Enporis Greenz Limited was formally known as Seksun Corporation Limited, which was principally involved in the manufacture of high-precision metal components and … [Read more...]

Ellipsiz is the second stock which I want to add to my stock pick list…

Was out most of the day at meetings and didnt get a chance to discuss the second stock that I want to add to my stock pick list this week. I first started looking at Ellipsiz in January/February 2009 when the share was between 2.5 and 3 cents.  It was unfortunate for me that I didnt do anything about it then and the share closed today at about 11 cents.  The reason for my inaction was that I … [Read more...]

To sell or not to sell?

Do you ever wondered about this - Imagine you have a stock which you had bought at $1.20. The price now is $1.80. It gives out dividend (not guaranteed, of course) at a rate of 5 cents per annum last year (dividend yield of 4.2%), with possibility of increasing its yield every year. Will you sell the stock for capital gains of 60 cts (1.80 - 1.20 = 60 cts) but forsaking 5 cents or more dividends … [Read more...]

After a company visit yesterday……I am adding Sinomem to my stock pick list……find out why

Bearing in mind the problems facing S-Chips in Singapore and that I was looking for "good" S-Chips to invest in because China remains one of the few global economies to still register positive GDP growth. My so called safe S-Chips would include Straco Corporation and Midas. I used to own Sinomem before and remember selling the shares at the $1.00 level only to see them rise to a high of $1.60. … [Read more...]

Tat Hong – FY 2009 Financial Analysis and Review Part 1

Tat Hong released their FY 2009 results on May 28, 2009. A first glance would show the severity of the impact of the financial crisis, as their 4Q 2009 numbers were much worse year-on-year when compared to their 4Q 2008 ones. Net profit dropped 50% for 4Q 2009 if we compare year on year and revenues fell 40%, but this was hardly surprising given the extent of the financial havoc wrecked by the … [Read more...]

Q&A on Traded Endowment Policies (TEPs)

  Have you heard of Traded Endowment Policies (TEPs)? You should read on with eagerness if you have not. I have posted several questions to Mr Dennis Ng, who owns TEP Pte Ltd that handles this investment product. This Q&A would be able to help you understand TEPs better and hope that they may fit your financial needs or investment portfolio perfectly. 1) Are TEPs whole life … [Read more...]

Where is the correction?

...looks like the underlying liquidity of those who missed the rally will keep stocks and markets underpinned Have been busy doing some "national service" and seeing companies over the last week. Meanwhile the markets have rocketed away and hit the 2440 target of the STI which if you recall was the index target which I derived using the highests target prices for one third of the STI Index … [Read more...]

Shield Plan Comparison

I always advocate to my clients on the importance of having a good medical coverage. I don't understand why some people will choose to spend that extra $20/mth on good food or shopping but save that similar $20 on a medical insurance. However, most of my clients are confused because they have no idea how a shield plan works and what are the difference between the different insurers. I believe … [Read more...]

Medical Benefits: Who bears the burden?

I came across this sobering story ("Part-timers run equal risk but no medical benefits", 30/05/2009, Pg. A41) in the Straits Times Forum which set me thinking. This letter was written by a parent in response to his/her son's predicament when he was injured at work. Essentially, being a "part-time" worker, the son had to face a double jeopardy because: 1) He had to pay for ALL the expenses … [Read more...]

Uncertain distribution of bonuses

In recent months, I have received many e-mails from policyholders of various insurance companies asking about the reduction in the bonuses on their participating policies. The companies explained that the bonus cuts were necessary in the light of the financial situation and indicated that the terminal bonus will be increased to give a high payout on the policies. However, the terminal bonuses … [Read more...]