Preservation of Capital – A Central Tenet of Value Investing

By: musicwhiz With Mr. Market currently being so manic-depressive and seeing only bad days ahead, it is important to remember that he is there to serve you, not to instruct you. The pervasiveness of his mood swings has the ability to affect all but those who inherently understand the true value of a business. Market watchers and pundits who are paid to say something about the market everyday … [Read more...]

Sovereign Wealth Funds to the rescue?

By: Drizzt In the midst of the current financial turmoil, how do I see equities in the 2-5 year horizon? While most would bet that the Emerging Markets will do better than the developed markets of US and Europe, I wouldn’t be so sure on this. Sovereign funds, for example the likes of Temasek, have been starting to materialise for many countries. The government of these countries typically … [Read more...]

Barriers to Entry

By: Jay To determine whether a company has a business moat ie whether it can defend its turf when competitors come in, we look at what is called Barriers to Entry, one of Porter's 5 Forces. I have identified a few common barriers but I must point out that the list is not exhaustive. Other barriers exist and it takes experience and knowledge to identify them. Again, investing is about life-long … [Read more...]

Hyflux Water Trust IPO.

By: Kleer Closing date of application: 28 November 2007 Commencement of trading: 03 December 2007 Hyflux Water Trust (HWT) is the first pure-play global water trust to be listed in Asia. It invests in water related infrastructure assets in PRC, India, Middle East, North Africa, and other global high growth markets. It will have an initial portfolio of 13 water plants in PRC, with a … [Read more...]

What a year!

By: Wilfred Ling Had a few conversations with my clients who took up investment this year and all of them had the same complain: why their returns either just broke even or had even slight losses? I did some computation and this is what I found: I computed the return of the MSCI AC World Free Net in SGD terms. In this computation I calculated the return as at 23 Nov 2007 if an hypothetical … [Read more...]

Investment Horizon

By: Tan Kin Lian Hi, I have some saving to invest. I am undecided about investing in shares or putting them in foreign fixed deposit. Which can give a better return for an investment of at least one year? REPLY If you are investing for 10 years or more, it is better to invest in a low cost, large, well diversified equity fund. Read this … [Read more...]

Long term investors now short-term speculator trader

By: Wilfred Ling With the recent extreme market volatility, I had been receiving a number of calls from clients with regard to their portfolio. Although everybody knows that investing is long-term, but it seems everybody has forgotten about that when market is down. With the recent market downturn, it seems everybody has turned short-term speculative trader overnight. Some demanded whether … [Read more...]

Chung Hong IPO.

By: Kleer Closing date of application: 26 November 2007 Commencement of trading: 28 November 2007 Since Chung Hong is a service provider for the tech and electronics industry - an industry which I typically avoid because of my lack of understanding of the business, I will not be providing an analysis for this. Besides, with only a miserable 1 million shares available for public offer, I … [Read more...]

Of Annuities and Policies

By: Drizzt I was reading about annuities implementation and was forwarded to REACH the Singapore Government website to voice their view. Personally i wonder what the fish is that site for and whether any of the comments would be heard. So much post in there that people took time to write will be useless cause its just an "initiative" to create a facade of openness. Any way, the discussion … [Read more...]

ARA Asset Management – The mother of all REIT

By: Derek Lim That's the nickname given by my friend and I when we decided to invest in it. I admit that it was over exaggerated but that's us. When we invest in a stock, we like to give them nicknames. It sort of keep us interested in the stock and also reduce the pain when we made a loss. As its nick suggested, what really got me interested in ARA is that it is one of the largest REIT … [Read more...]

Dynamic Colours IPO.

By: Kleer Closing date of application: 21 November 2007 Commencement of trading: 23 November 2007 Established in 1993, Dynamic Colours is a manufacturer of coloured compounded resins and packaging materials serving the IT, electronics, and petrochemical industries. They supply their products to plastic injection moulders (PIMs) and original equipment manufacturers (OEMs) who in turn … [Read more...]

Z-Obee Holdings IPO.

By: Kleer Closing date of application: 19 November 2007 Commencement of trading: 21 November 2007 Established in 2002, Z-Obee is a PRC-based integrated mobile handset solutions house that provides the complete design services spanning the entire handset design cycle, including industrial/mechanical/software/hardware design, procurement of hardware, prototype testing, pilot production, and … [Read more...]

Lippo-Mapletree Indonesia Retail Trust IPO.

By: Kleer Closing date of application: 15 November 2007 Commencement of trading: 19 November 2007 Lippo-Mapletree Indonesia Retail Trust (LMIR) is established with the principal objective of investing in a diversified portfolio of income producing real estate in Indonesia that is used for retail or retail related purposes. It will have an initial portfolio of 7 retail mall properties and … [Read more...]

40 years of medisave saving wiped out when daughter got cancer

By: Wilfred Ling Did anyone see today’s Sunday Times about a father whose medisave of $30,000 was wiped out when his daughter was diagnose with ovarian cancer? I really pity the family. The family admitted that they should have bought medical insurance. I calculated, that with $30,000 the interest generated a year is 4% x 30000 = $1,200. Based on an annual premium of $144.14 of an as-charged … [Read more...]

Black Monday

By: Derek Lim As anticipated, Singapore shares plunged 2.81% or 105.34 points. I'm not panicking as I have already liquidated most of my stocks. In fact, I'm looking to buy more; I'm currently looking at companies who will be posting good 3Q results and giving out dividends. Several reports will be out this week which will determine the market outlook. In US, existing and new home sales will … [Read more...]

Hong Leong Finance

By: Derek Lim The Business Times Published October 19, 2007 HLF: Firing on all pistons, no CDO shock By SIOW LI SEN WHEN Hong Leong Finance (HLF) posts its third-quarter results next month, it is likely to announce a special dividend to use up its tax credits before they expire at year's end. Singapore's largest independent finance company is also expected to report good results, … [Read more...]