Thursday, February 24, 2011

Finally, the day has come?

Dear fellow property investors,

According to a report from Channel News Asia website,

City Development chief said in his interview that the property price will drop between 3% to 5% this year. The transaction volume will also be down.

Just a reminder, the bank's housing loan rates will never be kept at the current low rate. Once the rate increase, I believe there is going to be quite a number of fire sales out there.

Hong Kong and China property bubble has reached uncomfortable level. What will happen if it pops?

Current Libya and some North African countries' crisis causing the oil prices to roll over $100.

The stock market is currently undergoing correction.

With all these news happening at the same time, do you think that the day for housing prices to drop will come soon?

Build your warchest and continue your search.


Tuesday, February 22, 2011

STI to go below 3000?

This correction plus the middle east crisis is a good chance to do bargain hunting. I have bought some counters myself. Since we know the values of our own research companies, we should take this chance to build our portfolio and grow our nests.

Hyflux is one company that has projects in Libya that may or may not go through. However, if you have done enough research on Hyflux, I believe this is a company that is selling at a discount now.

UOL is actually selling at about 33% discount to their net asset value.


Please share your views by commenting on this post.

Another high dividend yield stock

Share price of Chip Eng Seng: Close at $0.42
Dividend to be given out this year: 4.0 cents.
Dividend yield: close to 10%


Tuesday, February 8, 2011

Jac's pick for 2011

After a month's observation and research, these are the few companies that I have chosen to monitor and invest into when there's a chance.

The companies here are not listed in order of merit.

1. Popular Holdings. Singapore
2. Cerebos Pacific. Singapore
3. Walt Disney. US
4. Starbucks. US
5. McDonald's. US
6. Citigroup. US
7. OCBC. Singapore
8. UOL. Singapore
9. Duke Energy. US
10. Las Vegas Sands. US

The above list is Jac's personal selection. Readers are adviced to exercise own discretion when investing as it involves risks.


Rates hike coming?

Today China's central bank has risen the deposit interest rate to 3% and the loan interest rate to 6.06%.

This rate hike is to fight against their inflation.

Is Singapore going to do the same?

What will happen if interest rates rise?

Those with their money in the bank will be happy because they will get more interest.

Those who has just taken the home loan? The smell of disaster is not very far away.

Looks like there will be some bargains for us out there very soon?

As we hope things to happen, we still continue to do our homework.


Monday, February 7, 2011

This is the time when people are greedy... in Singapore property market.

What do I mean?

Remember Warren Buffett favourite quote, "Be fearful when people are greedy. Be greedy when people are fearful."

The "People are fearful" times are over. But people never learn their lessons. They get greedy in such a short time. Have they forgotten the financial crisis that had caused the world to go into recession?

Singapore property market is still very hot, despite the cooling measures. More cooling measures are coming.

Well, people who buy properties in Singapore now are either GREEDY or just don't know what kind of shit they will get into. Why would people be willing to pay close to $900 per square feet for a 99 year property?

The buyers may question, "Property prices are going up in the long term, why not buy one now when the interest rate is so low?"

My answer to this question:

Interest rates will not be this low (1%) forever. Please do not forget that the banks revise the rates every 3 months. What will happen if interest rate increases to 4%? You can figure that out yourselves.

I would say now is the time to build our warchest with lots of money and the CPF monies. Invest in some company stocks that can give very good dividend instead. For example, Cerebos Pacific has declared a dividend of $0.32 per share. At today's closing price of $5.26, it's a yield of 6%. Isn't this better than property investment (rental yield) now?

Wait till the property price to be right before we sell our shares and turn to property investment.

Investment is just a transfer of your savings from a place to another to earn the highest interest possible.
You can leave it in a bank, buy the bank stocks, buy other company stocks, buy another property, the choice is yours.

I am currently holding on to only one property to stay in and currently growing my cash by buying some really good companies that I have found. Until I have found a good property at the right price (of course I am unable to find one now), I will continue to put my cash with these companies and earn a higher yield than rental yield.

Happy Investing and don't forget to do your homework.

I own Cerebos Pacific at the time when this post was written.

Investment involves risks and readers are expected to exercise their own discretion when making an investment decision.