This is a link from CNBC.
Property investors, the best time to buy properties is end 2012.
Please read to understand what dangers are hiding behind the low interest rates.
Cheers.
Thursday, April 28, 2011
Low Interest Rates May Be Masking Singapore Debt Bubble: Economist - CNBC
Low Interest Rates May Be Masking Singapore Debt Bubble: Economist - CNBC
Friday, April 15, 2011
6% Class A Preference Shares by Hyflux
Apply for it!
This is a 7 year preference shares offered by Hyflux. After the maturity in 2018, if Hyflux do not intend to redeem, they will offer 8% per annum dividend to holders of the shares.
The above application will close on 20 April 2011, 12 noon.
For the in defensive investors, this is a good chance to own preference shares that gives 6% per annum dividend. Very rare that a company can offer such a high rate.
For the application, you will need at least $10,000.
With $10,000 invested, you will receive $300 every six months for 7 years. That's a total of $4,200 dividend, a total return of 42% for seven years. What's more, the opening price of this preference shares in the SGX is definitely going to be higher than the application price.
Highly encouraged to apply for it. However, if these shares are over subscribed, then there will be balloting. Hence you may or may not get it after paying $2 administrative charge when applying through the ATMs.
Cheers.
Disclaimer: All types of investment carry risks. Readers are advised to invest at their own discretion.
This is a 7 year preference shares offered by Hyflux. After the maturity in 2018, if Hyflux do not intend to redeem, they will offer 8% per annum dividend to holders of the shares.
The above application will close on 20 April 2011, 12 noon.
For the in defensive investors, this is a good chance to own preference shares that gives 6% per annum dividend. Very rare that a company can offer such a high rate.
For the application, you will need at least $10,000.
With $10,000 invested, you will receive $300 every six months for 7 years. That's a total of $4,200 dividend, a total return of 42% for seven years. What's more, the opening price of this preference shares in the SGX is definitely going to be higher than the application price.
Highly encouraged to apply for it. However, if these shares are over subscribed, then there will be balloting. Hence you may or may not get it after paying $2 administrative charge when applying through the ATMs.
Cheers.
Disclaimer: All types of investment carry risks. Readers are advised to invest at their own discretion.
Tuesday, April 5, 2011
Properties: To buy or not to buy?
Buy! Why?
The new cooling measures by the government are as follows:
1. Seller-Stamp Duty increased to 4 years.
My view - This measure should not be a factor to consider. Because we buy properties to lease out, we will still buy an investment property that can give us good yield. As long as we have the power to hold the property for 4 years, I don't think this factor should pull us back.
2. If you have an outstanding housing loan, you can only take another loan that is only 60% of the purchase price.
My view - This measure is the one that hurts the medium income people the most. For the rich, they have the money anyway, a 20% downpayment or a 40% downpayment is not a concern for them at all. There is going to be a widening of the gap between the rich and poor.
My suggestion - If you have the 40% cash/CPF to do the downpayment, go ahead and buy an investment property and rent it out for the next 4 years. However, do not just buy any property. Buy a property that can give you the best rental yield. Look for a relatively old resale property instead of new ones. Look for one that needs a fair bit of renovation, so that you can bargain down the price. Do a reasonably good renovation to make it look brand new, and guess what, you will have a higher chance to get it leased out than those within the same estate.
If you do not have the 40%, then grow your savings through buying undervalued companies from the stock market. Look out for my second book on how to grow your savings in the stock market, in June/July 2011.
The government has been introducing cooling measures from time to time. One thing that I do not understand is, " Why do our government release more land for sale, allowing them to bid at a high price, and at the same time increase their development charges? Won't all this make the developer increase the selling price of their units and we, the consumers, have to pay that kind of price?"
Please ponder.
Cheers.
The new cooling measures by the government are as follows:
1. Seller-Stamp Duty increased to 4 years.
My view - This measure should not be a factor to consider. Because we buy properties to lease out, we will still buy an investment property that can give us good yield. As long as we have the power to hold the property for 4 years, I don't think this factor should pull us back.
2. If you have an outstanding housing loan, you can only take another loan that is only 60% of the purchase price.
My view - This measure is the one that hurts the medium income people the most. For the rich, they have the money anyway, a 20% downpayment or a 40% downpayment is not a concern for them at all. There is going to be a widening of the gap between the rich and poor.
My suggestion - If you have the 40% cash/CPF to do the downpayment, go ahead and buy an investment property and rent it out for the next 4 years. However, do not just buy any property. Buy a property that can give you the best rental yield. Look for a relatively old resale property instead of new ones. Look for one that needs a fair bit of renovation, so that you can bargain down the price. Do a reasonably good renovation to make it look brand new, and guess what, you will have a higher chance to get it leased out than those within the same estate.
If you do not have the 40%, then grow your savings through buying undervalued companies from the stock market. Look out for my second book on how to grow your savings in the stock market, in June/July 2011.
The government has been introducing cooling measures from time to time. One thing that I do not understand is, " Why do our government release more land for sale, allowing them to bid at a high price, and at the same time increase their development charges? Won't all this make the developer increase the selling price of their units and we, the consumers, have to pay that kind of price?"
Please ponder.
Cheers.
Tuesday, March 29, 2011
Popular Holdings - An analysis
How many of you know about Popular Holdings? What kind of business do they do? Do you know of anybody who owns their shares?
Click here to read the Popular story.
http://www.popularworld.com/about/story.html
Till now, it has evolved into owning over 130 bookstores in Singapore, Malaysia and Hong Kong. It also has a publishing business and e-learning business. Only recently, the company expanded into property development.
Please click here for the past 10 years summary numbers of Popular Holdings.
http://www.jlc.com.sg/Popular%20Holdings%2010%20year%20Summary.htm
As of 31 January 2011, their net asset value is 23.26 cents. The stock is trading at 15.5 to 16 cents as of 29 March 2011. This is a discount of about 31% to their net asset value. The P/E ratio for trailing 12 months earnings is 4.3 (Earnings for TTM is 3.69 cents)
If you would like to find out more about Popular Holdings results you can click here.
http://www.popularworld.com/ir.html
If you have any questions about Popular Holdings, feel free to leave it in the comments.
Cheers.
Disclosure: Blogger owns Popular Holdings shares.
Disclaimer: Analysis in this post is a personal view by blogger. It should not be used as an indication to buy or sell the company's shares.
Click here to read the Popular story.
http://www.popularworld.com/about/story.html
Till now, it has evolved into owning over 130 bookstores in Singapore, Malaysia and Hong Kong. It also has a publishing business and e-learning business. Only recently, the company expanded into property development.
Please click here for the past 10 years summary numbers of Popular Holdings.
http://www.jlc.com.sg/Popular%20Holdings%2010%20year%20Summary.htm
As of 31 January 2011, their net asset value is 23.26 cents. The stock is trading at 15.5 to 16 cents as of 29 March 2011. This is a discount of about 31% to their net asset value. The P/E ratio for trailing 12 months earnings is 4.3 (Earnings for TTM is 3.69 cents)
If you would like to find out more about Popular Holdings results you can click here.
http://www.popularworld.com/ir.html
If you have any questions about Popular Holdings, feel free to leave it in the comments.
Cheers.
Disclosure: Blogger owns Popular Holdings shares.
Disclaimer: Analysis in this post is a personal view by blogger. It should not be used as an indication to buy or sell the company's shares.
Saturday, March 19, 2011
A thin line between an investor and a speculator in the stock market
Anyone who buys stocks and shares in the stock market, has always been calling themselves investors. What makes an investor? How is an investor different from a speculator?
Both investors and speculators buy and sell shares of company through the stock market. The difference between them is only the TIME factor.
1. An investor buys a business while speculators buys stocks.
2. An investor buys the shares of a company and hold them for a long time, at least 3 years or more while a speculator buys the shares of a company, hold them for a short time and sell them, either for a small profit or even at a loss.
3. An investor buys the shares only when they have enough money to hold them. A speculator does not have enough money to hold the shares, he normally contra the shares he bought.
4. An investor makes time to do research in the companies before making a purchase. A speculator simply buy and sell the shares without looking into the company's information.
5. An investor treats the stock market as a convenient place for them to own businesses while speculators treats the stock market as a 'casino'.
6. An investor has faith in his own investment in the 'wonderful business', he is not affected by the daily fluctuation in the share price. A speculator's emotion is affected by the daily fluctuation in the share price.
The above are extracted from my second book on investment. I would like to thank those who have bought and read my first book, "Route to Successful Property Investment in Singapore". Do look out for my second book on investment in wonderful businesses.
Are you an investor or a speculator? Do test yourself with the six points above and find out.
Cheers.
Both investors and speculators buy and sell shares of company through the stock market. The difference between them is only the TIME factor.
1. An investor buys a business while speculators buys stocks.
2. An investor buys the shares of a company and hold them for a long time, at least 3 years or more while a speculator buys the shares of a company, hold them for a short time and sell them, either for a small profit or even at a loss.
3. An investor buys the shares only when they have enough money to hold them. A speculator does not have enough money to hold the shares, he normally contra the shares he bought.
4. An investor makes time to do research in the companies before making a purchase. A speculator simply buy and sell the shares without looking into the company's information.
5. An investor treats the stock market as a convenient place for them to own businesses while speculators treats the stock market as a 'casino'.
6. An investor has faith in his own investment in the 'wonderful business', he is not affected by the daily fluctuation in the share price. A speculator's emotion is affected by the daily fluctuation in the share price.
The above are extracted from my second book on investment. I would like to thank those who have bought and read my first book, "Route to Successful Property Investment in Singapore". Do look out for my second book on investment in wonderful businesses.
Are you an investor or a speculator? Do test yourself with the six points above and find out.
Cheers.
Monday, March 14, 2011
This is a good chance for value investors
Stock market around the world has been affected by the Japan crisis. Japan stock market lowers another 4% after a 6% drop yesterday. Stock market around the world also experience the drop for the past 2 days.
If you know the value of the companies and have your own strike price, this should be a good chance for you to hunt for some good companies shares at bargain prices.
Japan should need another 5 years to bring their economy back to pre-quake level. It is going to be a long, tough road ahead.
Just minutes ago, when more nuclear reactors are posing more threat, the Singapore stock market takes a plunge by up to 67 points. This is an opportunity but do not rush.
Property market will also be affected. When stock market goes down, property price goes down as well. That will property investors' chance to strike in the next few quarters, or end of the year.
Meanwhile, grow our war chest and get ready to strike.
If you know the value of the companies and have your own strike price, this should be a good chance for you to hunt for some good companies shares at bargain prices.
Japan should need another 5 years to bring their economy back to pre-quake level. It is going to be a long, tough road ahead.
Just minutes ago, when more nuclear reactors are posing more threat, the Singapore stock market takes a plunge by up to 67 points. This is an opportunity but do not rush.
Property market will also be affected. When stock market goes down, property price goes down as well. That will property investors' chance to strike in the next few quarters, or end of the year.
Meanwhile, grow our war chest and get ready to strike.
Berkshire (Buffett) strikes again.
Buffett's itchy finger has pulled the trigger.
He is purchasing Lubrizol for $135 a share. That's 28% above the closing price of $105.44 on Friday.
Click to read the news.
http://www.cnbc.com/id/42062780
Cheers.
He is purchasing Lubrizol for $135 a share. That's 28% above the closing price of $105.44 on Friday.
Click to read the news.
http://www.cnbc.com/id/42062780
Cheers.
Friday, March 11, 2011
Starbucks Coffee - 37% growth in stock value for the past 10 months
Not long after changing their logo on their 40 anniversary, Starbucks made another announcement regarding the joint venture with Green Mountain yesterday. Starbucks shares move up almost 10% in a single day. This is not what I would like to share.
For the past 9 months, Starbucks has grown from around $26 in April 2010 to the current $37-$38. That's an increase of 37% in stock price. Starbucks has more room for growth and they are currently moving on the right track.
It was once a battered stock when the group made a wrong decision by expanding too fast in the China market and in the end, had to close down stores and retrenched workers.
Glad that the CEO has learned his lessons and he is much more focus on increasing shareholders' stock values by going into the single cup market.
If you search in MSN MONEY, you will be able to find that Starbucks will growth at a rate of 16% compounded for the next 5 years. So isn't this a good news to value investors?
Wait for a good opportunity to buy this stock. Remember, be greedy when people are fearful.
Cheers.
Disclosure: Blogger owns shares of Starbucks.
For the past 9 months, Starbucks has grown from around $26 in April 2010 to the current $37-$38. That's an increase of 37% in stock price. Starbucks has more room for growth and they are currently moving on the right track.
It was once a battered stock when the group made a wrong decision by expanding too fast in the China market and in the end, had to close down stores and retrenched workers.
Glad that the CEO has learned his lessons and he is much more focus on increasing shareholders' stock values by going into the single cup market.
If you search in MSN MONEY, you will be able to find that Starbucks will growth at a rate of 16% compounded for the next 5 years. So isn't this a good news to value investors?
Wait for a good opportunity to buy this stock. Remember, be greedy when people are fearful.
Cheers.
Disclosure: Blogger owns shares of Starbucks.
Thursday, March 10, 2011
Chip Eng Seng and other good dividend stocks.
Since my last blog 2 weeks ago, Chip Eng Seng is trading at 4.5 cents higher at around 47 cents. That's already a 10% increase in value if you have bought then. If you buy now at 47 cents, the dividend yield is only 8.5%. If you have bought at 43 cents, the yield is actually 9.3% in addition of the value increase of 8.1%. That's a total increase of 17.4%. This is the percentage return of invested capital only if you have bought their shares at $0.43 and intend to hold till their exercise dividend date.
Popular Holdings will be reporting their 3rd Quarter results ending 31 Jan 2011 after market close on 11 March 2011. The current trading price is at $0.155 to $0.16. The 0.4 cents interim dividend that was issued on 25 Feb 2011, is considered 2.5% of the price of $0.16. There should be a final dividend to be given in August 2011. Therefore, the dividend yield is actually higher than 2.5% for the year 2011.
Cerebos Pacific will be giving out dividend of 32 cents per share, in May 2011. This gives us a good dividend yield of 6.15% at the closing price of $5.20 on 10 March 2011. CEO's target of $2 billion revenue is within reach in the next few years. If you have the patience, this company can bring you higher than expected returns.
CapitaMall Trust gives out dividends every quarter. At the current price of $1.83 and total dividends of 9.24 cents for the last 4 quarters, it brings us a dividend yield of 5.05%.
Frasers Centrepoint Trust is trading at $1.51. It's total dividend for the past 4 quarters is 7.51 cents. This brings us the dividend yield of 4.97%.
Rental market is in the bull run now. Offices, shops, residential and everywhere else, are increasing their rents. My tuition centre is experiencing the same thing. The landlord decided to increase my current rent by 17%. If you own shares of CapitaMall Trust and Frasers Centrepoint Trust at the current price, what will be your dividend yield in 2011 and 2012? Definitely more than what is stated here.
Have a good day.
Cheers.
Disclaimer: All investments carries a certain degree of risk. Readers are advised to exercise their own discretion when investing.
Disclosure: Blogger owns Popular Holdings and Cerebos Pacific.
Popular Holdings will be reporting their 3rd Quarter results ending 31 Jan 2011 after market close on 11 March 2011. The current trading price is at $0.155 to $0.16. The 0.4 cents interim dividend that was issued on 25 Feb 2011, is considered 2.5% of the price of $0.16. There should be a final dividend to be given in August 2011. Therefore, the dividend yield is actually higher than 2.5% for the year 2011.
Cerebos Pacific will be giving out dividend of 32 cents per share, in May 2011. This gives us a good dividend yield of 6.15% at the closing price of $5.20 on 10 March 2011. CEO's target of $2 billion revenue is within reach in the next few years. If you have the patience, this company can bring you higher than expected returns.
CapitaMall Trust gives out dividends every quarter. At the current price of $1.83 and total dividends of 9.24 cents for the last 4 quarters, it brings us a dividend yield of 5.05%.
Frasers Centrepoint Trust is trading at $1.51. It's total dividend for the past 4 quarters is 7.51 cents. This brings us the dividend yield of 4.97%.
Rental market is in the bull run now. Offices, shops, residential and everywhere else, are increasing their rents. My tuition centre is experiencing the same thing. The landlord decided to increase my current rent by 17%. If you own shares of CapitaMall Trust and Frasers Centrepoint Trust at the current price, what will be your dividend yield in 2011 and 2012? Definitely more than what is stated here.
Have a good day.
Cheers.
Disclaimer: All investments carries a certain degree of risk. Readers are advised to exercise their own discretion when investing.
Disclosure: Blogger owns Popular Holdings and Cerebos Pacific.
Monday, March 7, 2011
Hyflux, did you missed the boat?
Hi all,
After yesterday's announcement of being awarded the desalination plant in Tuas, Hyflux shares shoot up by more than 10% of closing price of $1.83 on Friday. If you have followed my blog, I hope you have bought the shares then.
However, you did not miss the boat. It's just that you will not be buying this share at a 10% to 15% discount. You can actually say that you will earn 20 cents per share lesser. Hyflux is still a good company for long term investment.
Lessons to be learned here.
1. We do not invest blindly. We do our homework before buying or selling the shares.
2. It is always good to grow our war chest with cash so that when there is an opportunity to buy, we have the money to buy. The opportunity does not come very often. News of Libya crisis has caused the price to drop more than 20%. This is the opportunity that I am talking about.
3. Knowing the value and growth prospect of the company is very important. It can help us buy an undervalued company anytime, or sell them when it becomes overvalued.
4. Do not hesitate, strike when the price is right.
Cheers.
After yesterday's announcement of being awarded the desalination plant in Tuas, Hyflux shares shoot up by more than 10% of closing price of $1.83 on Friday. If you have followed my blog, I hope you have bought the shares then.
However, you did not miss the boat. It's just that you will not be buying this share at a 10% to 15% discount. You can actually say that you will earn 20 cents per share lesser. Hyflux is still a good company for long term investment.
Lessons to be learned here.
1. We do not invest blindly. We do our homework before buying or selling the shares.
2. It is always good to grow our war chest with cash so that when there is an opportunity to buy, we have the money to buy. The opportunity does not come very often. News of Libya crisis has caused the price to drop more than 20%. This is the opportunity that I am talking about.
3. Knowing the value and growth prospect of the company is very important. It can help us buy an undervalued company anytime, or sell them when it becomes overvalued.
4. Do not hesitate, strike when the price is right.
Cheers.
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