Lehman mini bonds

By: Jay 50,000 over investors in HK bought USD 1bn worth of mini bonds from Lehman. 1,000 of them protested public to seek explanation from authorities. Singapore - my guess, probably 60% of HK's problem ie 30,000 investors, investing USD 600mn in mini bonds ie 1bn SGD DBS shareholder equity is SGD 23bn, net profit is 2bn SGD So theoretically, they can repay the investors out of … [Read more...]

Focus on cashflow and not capital gainFocus on cashflow and not capital gain

By: Jay When people say they do investing, there is a tendency for most people to focus on the capital gain that each investment will bring in. Eg. Ah Beng buys SGX at $2, today is $6, so his perceived capital gain is 100% and he is happy like a bird. Or Ah Gou buys a property at District 10 for $1mn in 2006 and today it is valued at $2mn, his capital gain is again 100% and he goes and buy a … [Read more...]

Petition to Singapore Government – 983 signatures

By: Tan Kin Lian 1. We write to petition the Singapore Government, particularly the Commercial Affairs Department (Singapore Police Force) and/or the Monetary Authority of Singapore, to conduct a full and independent inquiry in relation to the credit linked securities sold by various financial institutions in Singapore. These structured products include, but are not limited to, the Lehman … [Read more...]

Origins of the Crash

By: La Papillion I've finished the very readable book by Roger Lowenstein, titled "Origins of the Crash". There are many books that talked about crashes, but this book focuses more on the dot.com bubble, collapse of Enron, accounting scandal at Andersen and the telecommunications bubble, with the author linking the excesses of past markets to the downfall of future bubble. There are a few … [Read more...]

Weekly Roundup and possible next shoe to drop

By: Drizzt Another difficult working week, another difficult stock market to navigate. My portfolio have been taking a fair bit of the blunt lately and so far it has bled 15% in all. Quite a small figure compare to the broad market carnage but its understandable consider i am 50% vested right now. The bailout package have been passed and numerous economist have commented that its bad. But … [Read more...]

Ms Sumiko Tan – I’ll stick to fixed deposits

By: Patrick Lim Every Sunday, I always look forward to going to church for a time of worship and after which, I enjoy 'catching-up' with fellow worshippers. And once home, and to relax, one of the things i will do is to pick up a copy of the Sunday times and dive straightaway to Ms Lorna Tan's invest page and to Ms Sumiko tan's article which this week focuses on the lamentations of her one … [Read more...]

Preference shares Part 1

By: La Papillion After chatting with a few guys over at the cbox, I realized that a better instrument for the person who wanted to buy OCBC (see my post on “Brief overview of Local banks") will be the preference shares that is also offered by the three banks. Preference shares goes by the funny stock name with many letters in it. Here’s the list of all the listed preference shares by the … [Read more...]

September 2008 Portfolio Summary and Review

By: musicwhiz From this portfolio update onwards, I will be changing the format of the portfolio review to make for easier reading. Instead of everything being text-based (which can be hard on the eye especially when it concerns numbers), I have resorted to using an Excel spreadsheet (see below) to document the key aspects of my portfolio. Of course, some details have been left out such as … [Read more...]

Deposit Insurance Scheme

By: Patrick Lim Over these past couple of weeks amidst the current global financial crisis, I have been asked over and over again whether monies placed in our financial institutions (both local and foreign) are safe? On this, I was not really surprised many consumers are still unaware of the deposit insurance scheme which came into effect on April 01, 2006. Briefly, here are some … [Read more...]

Tat Hong – Analysis of Purchase Part 4

By: musicwhiz I apologize for the tardiness in posting this last portion of my analysis of purchase, but the last few weeks have been hectic and a lot of news has been released around the world. The entire global economy is a little topsy-turvy with the credit crisis (morphed from "sub-prime" into a larger Godzilla !) and currencies and interest rates (LIBOR) are going haywire. My following … [Read more...]

Understating Risk, Overstating Benefits

By: Adrian Khiat Blood on the street / Maximum Pessimism??? There was blood everywhere round the world. The Financial markets are flushed with a sea of red. There is so much fear and uncertainty that the market becomes psychologically driven. There was also a lot of frustration and unhappiness on all the mis-sellings of certain Financial Products such as Pinnacle Notes, Lehman Minibonds, etc … [Read more...]

Are we at the bottom yet?

By: Jay The short answer is no, but... 1. In terms of magnitude, yes it's pretty scaring, some markets are close to 70% from the previous peak, China is down 50%, India is down 40%. But the US, where everything started, is down only 28%, and Footsie down 27%. Developed Asia-wise, STI is also quite resilient, down about 36%. Hang Seng down 46%, Japan down 37%. So magnitude wise, maybe 60%-70% … [Read more...]

Caveat Emptor – Understand What you Invest In !

By: musicwhiz With the recent bankruptcy of Lehman Brothers, there has been much controversy over the structured products which have been sold (through various financial institutions and brokerages) to retail investors. One of them is the DBS High-Notes, while another contentious product are the Lehman Brothers Mini-Bond Series. When a major event such as a credit event occurs, these products … [Read more...]

Brief overview of local banks

By: La Papillion Is it time to buy local banks now? Someone wanted to invest a substantial amount of money into OCBC, so I thought I would do a little research to see whether it makes sense. I do not really know how to valuate banks and will not attempt to do so here. Rather, I'll just dig into the past number and let the reader do the rest of the legwork, if they are interested. My source … [Read more...]

Screening S-stocks

By: DanielXX DanielXX's intro: The below is extracted from the Nextinsight share investors' site, a no-nonsense website whose founders include a former business journalist and a head of a well-known local investor relations agency. The article is written by Sim Kih. The writeup was in turn based on a lengthy JP Morgan report on the dangers of S-stocks. The reason for my highlighting this … [Read more...]

China milk – tainted milk scandal

By: La Papillion I read an interesting company update by DMG and partners regarding China milk. While I can't reproduce the entire report by cutting and pasting, I'll summarise the pertinent points here. What happened The whole story begins when recently, it was detected that the milk made in China have traces of melamine. A lot of babies in China, after taking in contaminated milk, had … [Read more...]

Everybody wants to be a Chartered Financial Analyst!

By: PanzerGrenadier A Young man and his CFA notes I was sitting in the MRT in my daily commute and noticed a young chap reading Chartered Financial Analyst (CFA) notes relating to fixed income and equities. In my years looking at what people are reading, I realise there are many people in Singapore who spend time, money and energy pursuing professional certifications as well as academic … [Read more...]

The sleeping dragon (and China map)

By: La Papillion Below is the map of China. As my portfolio had quite a bit of exposure to China, I think I should put in a map of the different provinces of China for future references. These days, there are many reports by brokerage firms on S-shares. S-shares are Singapore listed China companies. As always, they have plenty of things to say about s-shares. With s-shares having superbly … [Read more...]

My view on Bright World takeover (Part 1)

By: Level13 This write-up on Bright World (BW) is divided into 2 parts. It contains my deductions based on publicly available info on the takeover of BW. Before I begin, please take note that i am vested in BW and my views may be biased. What is mentioned in this posting cannot and should not be taken as professional investment advice. Lets recap what has happened so far: On 21 July, China … [Read more...]

Book review – A Random Walk Down Wall Street

By: La Papillion A Random Walk Down Wall Street, a book by Burton G.Malkiel, is one of those must-read books on investment/finance. I think there are 9 different editions of it and the first edition was out in 1973. I must say this book is really a good read as the author talks about a variety of topics. The author is bent towards indexing for the majority of people who do not like the hard … [Read more...]