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Investor Education
  • Five Stocks on the STI Bench Average 10% Gain over Past 12M

    Source: SGX My Gateway
    Date Submitted: 19 Jun 2018
    Views: 15
    Downloads: 0
    Five Stocks on the STI Bench Average 10% Gain over Past 12M
    • The STI benchmark consists of the 30 largest and most active stocks traded on SGX. The next five largest and most active stocks make up the STI Reserve List. This list is used in the event one or more STI constituents are deleted before the next quarterly review.
    • The current STI Reserve List stocks are Suntec REIT, Sembcorp Marine, Mapletree Commercial Trust, Keppel REIT & Mapletree Logistics Trust. The list has changed completely from the end of2013, with four of the five then STI Reserve stocks since joining the STI.
    • The current five STI Reserve stocks have averaged 10% total returns over the past 12 months, taking their average five year return to 29%. Four of the five stocks are REITS that currently maintain an average indicative dividend yield of 5.7%.
  • Five Stocks with Manufacturing Focus Amongst Biggest Intraday Movers

    Source: SGX My Gateway
    Date Submitted: 19 Jun 2018
    Views: 7
    Downloads: 0
    Five Stocks with Manufacturing Focus Amongst Biggest Intraday Movers
    • For the three months spanning March, April & May, non-STI stocks that consistently ranked amongst the biggest intraday tick ranges, with daily price ranges of more than 2.5%, included AEM Hldgs, Memtech Intl, Creative Technology, Best World Intl & Delong Holdings.
    • The five stocks averaged daily price ranges of 4% and together represent businesses with manufacturing-related activities. Manufacturing businesses span handling & test solutions, component solutions, consumer electronics, health products & HRC Steel.
    • Another manufacturing stock, Hi-P International ranked amongst the 10 non-STI stocks with the biggest intraday tick ranges for two of the months, while generating average daily price ranges of 5%.
  • Quality Part 1: Defining the Quality Factor

    Source: Aye Soe
    Date Submitted: 20 Jun 2018
    Views: 20
    Downloads: 0
    To demonstrate that higher-quality companies, regardless of the definition of quality, on average earn higher risk-adjusted returns than lower-quality companies, we used the S&P 500® Quality Index, which is a composite measure of ROE, accruals, and leverage, as an example. 
  • Capital Market Performance During the Four Years of Narendra Modi's Government

    Source: Ved Malla
    Date Submitted: 13 Jun 2018
    Views: 0
    Downloads: 0
    Over the past four years, the government of Narendra Modi, the 14th Prime Minister of India, has made several landmark policy decisions and initiatives that have had a major impact on the Indian economy.
  • Key Drivers of the Semiconductor Industry in 2018

    Source: SGX My Gateway
    Date Submitted: 13 Jun 2018
    Views: 9
    Downloads: 1
    Key Drivers of the Semiconductor Industry in 2018
    • Following comparatively strong performances in 2017, the 10 largest capitalised stocks that operate in, or maintain a service focus to semiconductor businesses have been more mixed in the 2018 YTD, averaging a 4% decline.
    • This has brought the average 12 month total return of the 10 stocks to 19%, which compares to a 12% gain for Bloomberg Asia Pacific Semiconductors Index. The strongest of the 10 stocks over the past 12 months were AEM Holdings and Micro-Mechanics.
    • Key drivers relevant to the industry include increased memory demand and proliferation of digital technologies. At the same time more complex application, increased industry competition and trends to cut costs provide industry challenges.
  • Five Stocks with Manufacturing Focus Amongst Biggest Intraday Movers

    Source: SGX My Gateway
    Date Submitted: 13 Jun 2018
    Views: 22
    Downloads: 1
    Five Stocks with Manufacturing Focus Amongst Biggest Intraday Movers
    • For the three months spanning March, April & May, non-STI stocks that consistently ranked amongst the biggest intraday tick ranges, with daily price ranges of more than 2.5%, included AEM Hldgs, Memtech Intl, Creative Technology, Best World Intl & Delong Holdings.
    • The five stocks averaged daily price ranges of 4% and together represent businesses with manufacturing-related activities. Manufacturing businesses span handling & test solutions, component solutions, consumer electronics, health products & HRC Steel.
    • Another manufacturing stock, Hi-P International ranked amongst the 10 non-STI stocks with the biggest intraday tick ranges for two of the months, while generating average daily price ranges of 5%.
  • Overview of Hong Kong Financial Services Industry

    Source: Financial Services Development Council (FSDC)
    Date Submitted: 12 Jun 2018
    Views: 58
    Downloads: 5
    The Financial Services Development Council (FSDC) released an updated version of the “Overview of Hong Kong Financial Services Industry” in May 2018 which aims to facilitate industry practitioners and the wider public to understand and promote the strengths of Hong Kong as an international financial centre. The report covers the below sessions:

    Why Hong Kong?
    Being one of the world's most competitive and freest economy, Hong Kong possesses advantages like the strategic location and gateway to Mainland China, key conduit for investment and trade linked exchange rate system, bilingual legal system and simple tax regime, deep pool of talent and centre of expertise.

    Asset and Wealth Management 
    As the leading fund management centre in Asia Hong Kong has a diversified distribution of fund management and advisory business, an active ETF market and a sizable pension fund market. The soon-to-be-introduced open-ended fund companies structure will further promote Hong Kong as the Asian asset management centre for both conventional funds and PE funds.

    Banking
    Hong Kong has a robust banking industry by international standards and is regarded as the global offshore RMB hub. The Hong Kong Government is exploring with the Mainland authorities ways to open up more channels for two-way cross-border RMB fund flows.

    Capital Markets
    With HKEX being the leading stock exchange in fundraising (2015-2017) and diversified listed companies and investors, Hong Kong is looking to increase connectivity with Mainland investors and the Mainland market.

    Insurance
    Hong Kong ranks 1st in Asia in insurance density and 2nd in Asia in insurance penetration in 2016. Government has recently taken a number of initiatives to promote the insurance sector which includes the establishment of insurance authority, HK$100mn 3-year pilot programme for talent development and the adoption of FinTech on the development of personalized products.

    Fintech and Green Finance
    FinTech cooperation agreements signed with partners such as Australia, Dubai, Gibraltar, Singapore, Switzerland and the UK. On the other hand, HKMA, Cyberport in Hong Kong and the the Office of Financial Development Service of Shenzhen (OFDS) are exploring the feasibility of establishing cross-border soft-landing facilities in Shenzhen, encouraging Hong Kong FinTech firms to expand their businesses, and Mainland firms to establish themselves in Hong Kong.

    Professional Services & Financial Infrastructure
    Half of the Global 100 law firms and 1,400 regional headquarters of consultancy firms are set up in Hong Kong. With a well-established payment & settlement system and bilingual legal system, Hong Kong has the increasing prevalence of being the Alternative Dispute Resolution (ADR) forum. Meanwhile the Belt and Road Initiative will drive significant demand in Hong Kong’s world-class professional services.
     
  • Why Indices Matter to SMSF Trustees

    Source: Stuart Magrath
    Date Submitted: 11 Jun 2018
    Views: 0
    Downloads: 0
    The SMSF Association hosted the first SMSF Expo in Australia, attracting over 1,500 people over the three-day Expo.
  • Fixed Income Liquidity and ETFs in India

    Source: Alka Banerjee
    Date Submitted: 06 Jun 2018
    Views: 74
    Downloads: 0
    The fixed income market has historically been relatively illiquid in India, as well as globally. Bond ETFs may be able to solve these issues, which may be part of the reason bond ETFs have soared in popularity in developed markets recently.
  • Asia’s Largest Global REIT Hub

    Source: SGX My Gateway
    Date Submitted: 05 Jun 2018
    Views: 369
    Downloads: 6
    Asia’s Largest Global REIT Hub
    • More than 75% of Singapore REITs & Property Trusts own and manage overseas assets across Asia Pacific, Europe and the United States. This growing trend within the REIT Sector has seen trusts with Singapore and overseas exposure rise from 18 in 2012 to 33 in 2018.
    • Of Singapore’s 10 most recent REIT Sector listings, nine are exclusively managing properties located outside of Singapore. These nine REITs maintain a combined market capitalisation of S$8.3 billion and have averaged 13.8% total returns since their IPO.
    • REITs with international property assets bring diversification benefits to investors, in addition to increased risks which include foreign exchange exposures. REITs generally seek to borrow in the same currency as the underlying assets, hence mitigating some of the currency risk.
  • The Carbon Scorecard May 2018

    Source: Jessica Taylor, Alex Lake, Christina Weiman
    Date Submitted: 04 Jun 2018
    Views: 35
    Downloads: 5
    S&P Dow Jones Indices is committed to providing index solutions that provide choices and reflect low-carbon options. When we compare almost all the indices with their carbon-focused counterparts, the low-carbon versions actually outperformed the benchmark over a five-year period.
  • A Closer Look at Indices Country Classifications

    Source: Alka Banerjee
    Date Submitted: 31 May 2018
    Views: 19
    Downloads: 0
    As large sums of global money flows now follow global indices, it is important to understand how global index providers decide on country classifications and country weightages.
  • The Merits and Methods of Multi-Factor Investing

    Source: Andrew Innes
    Date Submitted: 30 May 2018
    Views: 248
    Downloads: 10
    In this paper, we discuss the potential drawbacks of only adopting a single-factor equity strategy in an attempt to capture its risk premium, which could reward market participants over time.
  • SGX Real Estate Index’s Five Best Performers Average 7% YTD Gain

    Source: SGX My Gateway
    Date Submitted: 30 May 2018
    Views: 43
    Downloads: 0
    SGX Real Estate Index’s Five Best Performers Average 7% YTD Gain
    • In the 2018 YTD, the five best-performing constituents of SGX’s Real Estate Index were Yanlord Land (+11.1%), United Engineers (+8.4%), Ho Bee Land (+6.0%), Hongkong Land (+4.9%), and Ocean Sky (+4.3%).
    • The SGX Real Estate Developers & Operators Index comprises 25 constituents with a combined market cap of over S$70 billion. The component stocks with the five biggest weights are Hongkong Land (10.6%), UOL Group (9.8%), CapitaLand (9.8%), City Developments (9.2%) and Yanlord Land (9.0%).
    • This year, Singapore's property market is expected to extend its recovery. In 1Q18, private residential property prices jumped 3.9% QoQ, surging the most since 2010, and building on the previous quarter’s 0.8% rise, URA data showed. Analysts are forecasting a 5%-10% recovery in domestic home prices in 2018.
  • Singapore’s Insurance Trio Averages 9% YTD Return

    Source: SGX My Gateway
    Date Submitted: 30 May 2018
    Views: 201
    Downloads: 3
    Singapore’s Insurance Trio Averages 9% YTD Return
    • Singapore lists three stocks that make up the Insurance Sector - Great Eastern Holdings, United Overseas Insurance and Singapore Reinsurance Corp. The three stocks have a combined market value of S$15.5 billion.
    • Together the three stocks have averaged a 8.6% total return in the 2018 YTD, bringing their average 12M return to 31.4%. By comparison the MSCI World Insurance Index has gained 1.8% in the YTD, bringing its 12M total return to 10.5% in SGD terms.
    • While intensified competition and economic uncertainty provide challenges, the insurance industry is expected to further diversify distribution channels while exploring and engaging digital innovation.
  • CFA Institute and PRI survey on ESG integration in Asia

    Source: Justin Sloggett, CFA, Matt Orsagh, CFA
    Date Submitted: 24 May 2018
    Views: 511
    Downloads: 0

    CFA Institute and PRI survey on ESG integration in Asia
     
    In 2017, CFA Institute and the PRI agreed to undertake an ESG investing study that entails a survey, a series of workshops and the release of four reports: one case study report and three regional reports. The aim of the study is: 

    1. to understand the current state of ESG investing in listed equity and fixed income across the AMER, EMEA and APAC regions; 
    2. to analyse the drivers, barriers and solutions of ESG investing.

    We would like you to help us by responding to the survey: https://start.yougov.com/refer/vXwDHpNl4ZBrY2

    The results of the study and the feedback from the workshops will be published in the regional reports. There will also be regional and country guidance and case studies on how investors are integrating ESG issues into their investment analysis and decisions. These reports will be readily available for all CFA members and PRI signatories.
     
    The survey contains two sets of questions that should take roughly 8 – 10 minutes to complete. It covers the impact of ESG investing at the financial market level and firm level. It is being completed by participants across seventeen countries.
     
    If you like to fill out the survey, please do so by 15 June. We appreciate your response.

    ______________________________________________________________________________


    ESG Integration Explained: An Alpha-Generating and Risk-Reducing Tool


    The term “ESG integration” is often used when talking about ESG investing. Practitioners new to ESG investing are sometimes uncertain what ESG integration is and how it is performed—so much so that they may not realize they are already performing integration techniques informally.

    One definition of ESG integration is “the explicit and systematic inclusion of ESG issues in investment analysis and investment decisions.” Put another way, ESG integration is the analysis of all material factors in investment analysis and investment decisions, including environmental, social, and governance (ESG) factors.

    What does that mean? It means that leading practitioners are:

    • analyzing financial information and ESG information;
    • identifying material financial factors and ESG factors;
    • assessing the potential impact of material financial factors and ESG factors on economic, country, sector, and company performance; and
    • making investment decisions that include considerations of all material factors, including ESG factors.

    What does that not mean? It does not mean that

    • certain sectors, countries, and companies are prohibited from investing;
    • traditional financial factors are ignored (e.g., interest risk is still a significant part of credit analysis);
    • every ESG issue for every company/issuer must be assessed and valued;
    • every investment decision is affected by ESG issues;
    • major changes to your investment process are necessary; and, finally and most importantly, 
    • portfolio returns are sacrificed to perform ESG integration techniques.
  • Shariah in a Fast-Changing

    Source: Alka Banerjee
    Date Submitted: 23 May 2018
    Views: 34
    Downloads: 5
    2017 was a strong year for equity markets globally, but we saw even stronger performance from Shariah equity markets.
  • Revenue Exposure of the S&P/ASX 200

    Source: Utkarsh Agrawal
    Date Submitted: 18 May 2018
    Views: 60
    Downloads: 0
    As of year-end 2017, only 60 companies in the S&P/ASX 200 derived their revenue solely from the domestic market, while the rest of the companies had exposure to foreign markets. Hence, it is worthwhile to review the global revenue exposure of the index.
  • Do Earnings Revision Matter in India?

    Source: Akash Jain, Bed Malla
    Date Submitted: 16 May 2018
    Views: 34
    Downloads: 0
    Akash Jain, Associate Director - Research & Design in conversation with Ved Malla, Associate Director at S&P BSE Indices on recent research paper.
  • Shariah Report 2018 Q1

    Source: John Welling, Michael Orzano
    Date Submitted: 11 May 2018
    Views: 65
    Downloads: 4
    Take a look at how the Shariah Indices performed in the 2018 Q1.
  • Distributed ledgers and ICOs 

    Source: Maggie McGhee, Director, Professional Insights, ACCA
    Date Submitted: 10 May 2018
    Views: 201
    Downloads: 15
    Distributed ledgers and ICOs - presentation deck for ACCA - CFA Institute VIP Luncheon on 14 May 2018 which covers:

    - Using Distributed ledgers for the right reasons
    - Introduction of crytocurrencies and ICO activities over the past years
    - Risks for investors, regulators and the economies
    - Key considerations for the future



     
  • Safeguards against the Introduction of a Dual-Class Shares Structure

    Source: Rocky Tung, Mary Leung, CFA
    Date Submitted: 17 May 2018
    Views: 2125
    Downloads: 19

    Safeguards against the Introduction of a Dual-Class Shares Structure
     
    As revealed in a survey conducted in Asia Pacific by CFA Institute in March, a majority (60%) of the 450-plus respondents have not had any experience investing in firms with a DCS structure, which signalled the urgency for and need to educate investors and the general public on the implications of DCS structures.


    The survey, “Dual-Class Shares and the Demand for Safeguards,” revealed that respondents in the region were divided when asked whether DCS structures should be introduced to the market, with 53% opposing the introduction and 47% in favour. Regardless of their position on DCS, almost all (97%) respondents considered it necessary to enact additional safeguards if DCS structures are permitted.

    Among different possible safeguards, more than 90% of respondents considered it appropriate to implement enhanced mandatory corporate governance measures as well as time- and event-based sunset provisions, such as automatic conversion of shares with super voting rights to ordinary voting rights. Specifically, 94% of respondents considered it appropriate to introduce a time-based sunset provision; among which, 91% of such respondents considered it appropriate to convert shares with super voting rights to ordinary shares within 10 years. Separately, 93% of respondents considered introducing a maximum voting differential appropriate; 63% of these respondents found a 2:1 maximum voting differential optimal.
     

  • TOP 9 Mistakes in Valuation. #8 Choosing an unreasonable cost of equity - Video 8/9

    Source: Andrew Stotz PhD, CFA
    Date Submitted: 11 May 2018
    Views: 11
    Downloads: 0
    Mistake #8: Choosing an unreasonable cost of equity

    A very common mistake made by analysts is discounting future cash flows at an unreasonable cost of equity (COE). Don’t get lost in the components of COE, focus on the end result. Too high or too low COE can significantly change your estimate of a firm’s fair value. Based on our study we consider COE ranging between 8% and 13% to be reasonable.

    Check out the video to learn more about Mistake #8 and how to avoid it.
  • TOP 9 Mistakes in Valuation. #7 Valuing a stock using the calculated Beta - Video 7/9

    Source: Andrew Stotz PhD, CFA
    Date Submitted: 11 May 2018
    Views: 9
    Downloads: 0
    Mistake #7: Valuing a stock using the calculated Beta

    A common mistake is valuing a stock just using whatever historical beta you find in Bloomberg or your data provider. Also failing to realize that valuation is made to infinity, hence, your beta is a forecasted beta and that forecast is to infinity. Past betas tend to regress towards 1.00x. The Beta you use for valuation is to infinity. To avoid error we use three betas: High risk: 1.25x, Average risk: 1.00x, low risk: 0.75x. If you use a beta outside of this range you have a higher obligation to justify.

    Check out the video to learn more about Mistake #7 and how to avoid it.
  • TOP 9 Mistakes in Valuation. #6 Underestimating working capital investment - Video 6/9

    Source: Andrew Stotz PhD, CFA
    Date Submitted: 11 May 2018
    Views: 11
    Downloads: 0
    Mistake #6: Underestimating working capital investment

    Net working capital (NWC) is difficult to forecast because it’s a result of five separate forecasts: accounts receivable; inventory; other current assets; accounts payable; and other current liabilities. Unlike in accounting, in valuation we exclude cash and short-term borrowing from net working capital. Changes in NWC are volatile because that change results from five separate forecasts. NWC is a small but volatile investment item. Large deviations from past trends usually are a mistake, so explain them carefully.

    Check out the video to learn more about Mistake #6 and how to avoid it.
  • TOP 9 Mistakes in Valuation. #5 Forecasting drastic changes in cash conversion cycle - Video 5/9

    Source: Andrew Stotz PhD, CFA
    Date Submitted: 11 May 2018
    Views: 26
    Downloads: 0
    Mistake #5: Forecasting drastic changes in cash conversion cycle

    I've analyzed 17,414 companies across the world to try to understand how assets break down. Avoid huge changes in working capital items, except in rare cases of product mix or management policy. Focus much of your attention on inventory. If you forecast big changes, explain your reasons.

    Check out the video to learn more about Mistake #5 and how to avoid it.
  • TOP 9 Mistakes in Valuation. #4 Confusing growth CAPEX with maintenance CAPEX - Video 4/9

    Source: Andrew Stotz PhD, CFA
    Date Submitted: 11 May 2018
    Views: 715
    Downloads: 0
    Mistake #4: Confusing growth CAPEX with maintenance CAPEX

    I've looked at the largest 500 companies in Asia and their CAPEX spending in their cash flow statement. CAPEX should be roughly the same as depreciation. The starting point for overall CAPEX forecasting is 100% of annual depreciation charge and that additional growth CAPEX depends on how fast you expect the firm to grow.

    Check out the video to learn more about Mistake #4 and how to avoid it.
  • TOP 9 Mistakes in Valuation. #3 Growing fixed assets slower than revenue - Video 3/9

    Source: Andrew Stotz PhD, CFA
    Date Submitted: 11 May 2018
    Views: 51
    Downloads: 0
    Mistake #3: Growing fixed assets slower than revenue

    Analysts often underestimate fixed asset growth. A rule of thumb is that fixed asset growth should roughly match revenue. Use the asset turnover ratio to prevent this error. It can help you see when you're unrealistic.

    Check out the video to learn more about Mistake #3 and how to avoid it.
  • TOP 9 Mistakes in Valuation. #2 Underestimating expenses causing unrealistic profit - Video 2/9

    Source: Andrew Stotz PhD, CFA
    Date Submitted: 25 May 2018
    Views: 344
    Downloads: 0
    Mistake #2

    In this video, Dr. Andrew Stotz, CFA talks about how underestimating expenses, causing unrealistic profit as one of the most common valuation mistakes.

    It covers:
    - Analyzing and forecasting 17,000 companies around the world over a 15-year period.
    - Defining the value of the gross profit margin in forecasting.
    - Providing real examples based on his own coffee business, CoffeeWORKS, and IKEA, etc.
    - Giving other sound advice, including the idea from the fantastic book: Understanding Michael Porter.
    - The idea is that to forecast changes in gross profit margin, an analyst should study the supply chain.
    - Looking at some common valuation mistakes in the academic-style research.
    - ABC analysis and valuation.
    - Evaluating the accuracy of net profit and net profit margin forecast analysts in Asia, based on the result of 540 of the largest companies in Asia.
    - Presenting expenses with the highest variability in the net profit margin.


  • ​TOP 9 Mistakes in Valuation. #1 Overly optimistic revenue forecasts - Video 1/9

    Source: Andrew Stotz PhD, CFA
    Date Submitted: 25 May 2018
    Views: 501
    Downloads: 0

    In the first of a series of nine videos examining valuation mistakes, award-winning equity analyst and former President of CFA Society Thailand Dr. Andrew Stotz, CFA, looks at why investors should be wary of overly optimistic revenue forecasts. 

     

    From this video you will learn: 

     

    • Questions to ask when forecasting a company’srevenue, for example, can it increase both profit and growth margins over time?

     

    • How to understand a company’s marketing, branding, products, and services – in addition to its sales process, delivery, and after-sales service

     

    • That if revenue forecasts are wrong, valuations will be too 

     

    • How to curb your enthusiasm.

     

    Watch Andrew Stotz here:https://youtu.be/9jkfAPcDomY

     
  • Carbon Risk Integration: Interaction Between Carbon Risk and Traditional Risk Factors

    Source: Kelly Tang
    Date Submitted: 07 May 2018
    Views: 320
    Downloads: 0
    We argue that a pure, unconstrained, carbon-efficient portfolio outperformed a carbon-inefficient portfolio, as well as the underlying benchmark, on an absolute return basis, but underperformed on a risk-adjusted basis due to the portfolio having higher volatility.
  • How Are International Trade Issues Influencing Global Markets?

    Source: Sam Tsui, Blu Putnam
    Date Submitted: 04 May 2018
    Views: 99
    Downloads: 0
    The fear of trade war has been intensified with announcement of import tariff by the U.S. S&P DJI’s Sam Tsui sits with CME Group’s Blu Putnam to discuss the international trade issues and the impacts on the economies.
  • The Next Generation of Trust - In India, Investors are Confident and Trusting

    Source: CFA Institute
    Date Submitted: 03 May 2018
    Views: 2975
    Downloads: 19
    While Indian investors are the most likely to say they trust financial services versus other markets surveyed, trust for the financial services sector declined in India since our 2016 survey.

    Indian investors surveyed were much more likely to have a financial adviser than those in other markets. Although trust is still the most important factor in choosing an adviser, retail investors are also strongly motivated by the desire for performance. They are also much more likely than the average investor around the world to recommend their adviser to others.

    The top two reasons Indian investors are likely to leave their financial adviser are underperformance and a lack of communication and responsiveness. Indian investors favor personalized products and technology, and they also place high importance on brand. In terms of building trust, adhering to a code of conduct has a great impact on trust in India. Professional credentials also play a significant role in increasing trust.
  • The Next Generation of Trust - Investor Trust in Financial Services in Singapore

    Source: CFA Institute
    Date Submitted: 03 May 2018
    Views: 1012
    Downloads: 7
    Singapore-based investors expect their advisers to be ethical and well-informed. Almost half of investors in Singapore “completely trust or trust” the financial services sector. Investors in Singapore tend to be significantly younger than those in many other markets. This may partially explain higher trust levels, as younger investors globally are also more trusting of financial services. A majority of investors surveyed in Singapore work with financial advisers, and few investors in Singapore report that they are very confident in their own ability to make investment decisions.

    Some investors in Singapore may question adviser competence. Their primary investment concerns are “My financial adviser making recommendations that result in losses” and “Hiring an unscrupulous financial adviser.” Trust is the most important for investors in Singapore when hiring an adviser. Communication is extremely important to investors in Singapore, and lack of communication is the primary reason they would discontinue a relationship with a financial adviser, although more than half also cite underperformance as a reason for leaving.

    Investors seem to prefer technology solutions over people as a majority say in three years it will be more important to have technology tools to execute their own strategy rather than human advisers. However, when selecting an investment firm, a majority of investors are split between the importance of a “Brand I can trust” and “People I can count on.”

    Read more in the full Market Report PDF below
  • The Next Generation of Trust - People are Trusted More Than Technology in Australia

    Source: CFA Institute
    Date Submitted: 03 May 2018
    Views: 1747
    Downloads: 7
    Retail investors in Australia are some of the most satisfied among those we surveyed. However, even though Australian investors feel the markets are fair, retail investors are much less likely to work with financial advisers than investors in other markets. Although investors are not very confident in their ability to make investment decisions, many still find little need for professional advice.

    By and large, Australian investors also think that advisory fee structures are fair. However, they have less interest in personalized products than investors in any other market included in the survey.

    As in most markets, trust is the most important factor in choosing an investment adviser. However, in Australia people are trusted more than technology. A firm’s brand is also less important than the competency of its employees, and Australians rely on brand less than investors globally.

    Surprisingly, given the overall level of satisfaction for their investment firms, trust is tested in times of crisis, and Australian retail investors are, on average, slightly less confident that their investment firms are prepared for another financial crisis.

    Read more in the full Market Report PDF below.
  • The Next Generation of Trust - Investor Trust in Financial Services in Hong Kong SAR, China

    Source: CFA Institute
    Date Submitted: 03 May 2018
    Views: 1262
    Downloads: 3
    Hong Kong is one of three markets in our survey where trust in the financial services sector is declining. Investors in Hong Kong are highly motivated by returns, and they prioritize performance over trust as a factor in choosing an adviser. Well over half of investors would also terminate an advisory relationship for underperformance.

    Hong Kong investors also appear to be less pleased with their advisers, and fewer than 10% believe that advisers put client interests first. However, few investors in Hong Kong are very confident of their investment decision making, which may indicate why many prefer to invest with the help of financial advisers. Many investors are indifferent to using a robo-adviser and human advisers and in three years believe it will be more important to have technology tools to execute their own strategy rather than a human adviser.

    Investors in Hong Kong also place a high value on professional credentials, ongoing professional development, and firms that adhere to a voluntary code of conduct. When selecting an investment firm, the majority of investors prefer a “Brand I can trust” over “People I can count on.”

    Read more in the full Market Report PDF below

     

  • How Equal Weight Avoided Japan's "Lost Decades"

    Source: Hamish Preston
    Date Submitted: 02 May 2018
    Views: 32
    Downloads: 0
    Over the 15-year period ending in February 2018, encompassing the latter part of Japan’s so-called “lost decades” of stagnant equity returns, the equal-weight index would have outperformed the cap-weighted Japanese equity benchmark by a stonking 7.41%, annualized.
  • The Importance of Understanding your Benchmark

    Source: Alka Banerjee
    Date Submitted: 27 Apr 2018
    Views: 471
    Downloads: 0
    Recent SEBI guidelines have highlighted the issue of flawed benchmark usage in the Indian mutual fund industry.
  • How Do Single Factors Perform in Different Market Regimes in India?

    Source: Akash Jain, Ved Malla
    Date Submitted: 23 Apr 2018
    Views: 65
    Downloads: 0
    Akash Jain, Associate Director - Research & Design in conversation with Ved Malla, Associate Director at S&P BSE Indices on a recent research paper - Factor Performance Across Different Macroeconomic Regimes in India by S&P BSE Indices.
  • S&P GIVI® Japan and Major Single Factors Q1 2018

    Source: Tianyin Cheng
    Date Submitted: 20 Apr 2018
    Views: 63
    Downloads: 2
    The S&P GIVI (Global Intrinsic Value Index) Japan outperformed its benchmark index, the S&P Japan BMI, by 2 bps in Q1 2018. Since its launch in March 2012, the S&P GIVI Japan has outperformed its benchmark index by 0.65% per year, with a tracking error of 2.32%.
  • The Impact of the Global Economy on the S&P 500®

    Source: Phillip Brzenk
    Date Submitted: 18 Apr 2018
    Views: 376
    Downloads: 9
    In this paper, we examine the geographic revenue distribution of the S&P 500 and see what, if any, impact foreign economies and geographically driven market events may have on overall index performance. 
  • Takeaways From the SPIVA® India Year-End 2017 Scorecard 

    Source: Akash Jain
    Date Submitted: 13 Apr 2018
    Views: 68
    Downloads: 0
    The biannual SPIVA® India Scorecard attempts to capture the performance of active funds (both equity and bond funds) domiciled in India against the S&P BSE benchmarks over different time horizons. 
  • SPIVA® Japan Year-End 2017 

    Source: Priscilla Luk
    Date Submitted: 12 Apr 2018
    Views: 26
    Downloads: 1
    The SPIVA® Japan Scorecard reports on the performance of actively managed Japanese mutual funds against their respective benchmark indices over 1-, 3-, 5-, and 10-year investment horizons. 
  • The Evolution of Indian Indices

    Source: Alka Banerjee
    Date Submitted: 10 Apr 2018
    Views: 146
    Downloads: 0
    The world of indexing is constantly growing and evolving and the Indian index providers have geared up to match the global pace.
  • SGX-Listed Stocks & ETFs with Exposure to Fast-Growing Malaysia

    Source: SGX MY Gateway
    Date Submitted: 10 Apr 2018
    Views: 116
    Downloads: 19
    SGX-Listed Stocks & ETFs with Exposure to Fast-Growing Malaysia
    • Malaysia’s economy is expected to grow by 5.3% in 2018, with BNM citing favourable income and labour market conditions, spending on new and ongoing infrastructure projects and sustained capital investment by firms in manufacturing and services sectors.
    • Singapore’s 10 largest capitalised stocks that report the majority of their revenue to Malaysia have averaged a 4% gain in the 2018 YTD. The 10 stocks span six Sectors, with the 2018 YTD gains taking their average 12M average total return to 20%.
    • Over the past 12M, Sunright led the performances of the 10 stocks, with a 136% total return. As one of the world’s largest independent providers of burn-in and test services, it reported 1HFY18 (ending 31 Jan) PBT YoY growth of 25%, building on PBT YoY growth of 75% in FY17.
  • S&P/JPX JGB VIX® Update March 2018

    Source: Applied Academics, S&P Dow Jones Indices
    Date Submitted: 10 Apr 2018
    Views: 0
    Downloads: 0
    JGB VIX Spikes After BoJ Comments.
  • How Smart Beta Strategies Work in the Australian Market

    Source: Liyu Zeng, Priscilla Luk
    Date Submitted: 03 Apr 2018
    Views: 147
    Downloads: 12
    With increasing interest in smart beta strategies in the Australian equity market, we examined the effectiveness of six well-known risk factors, size, value, low volatility, momentum, quality, and dividends, in the Australian equity market from Dec. 31, 2004, to Dec. 29, 2017.
  • How Did Australian Active Funds Perform in 2017?

    Source: Priscilla Luk
    Date Submitted: 09 Apr 2018
    Views: 104
    Downloads: 0
    This blog post examines the SPIVA® Australia Scorecard, which reports on the performance of actively managed Australian mutual funds against their respective benchmark indices over various investment horizons.
  • SPIVA® India Scorecard

    Source: Akash Jain
    Date Submitted: 28 Mar 2018
    Views: 73
    Downloads: 3
    The SPIVA India Scorecard compares the performance of actively managed Indian mutual funds with their respective benchmark indices over 1-, 3-, 5-, and 10-year investment horizons.
  • Persistence of Australian Funds

    Source: Priscilla Luk
    Date Submitted: 27 Mar 2018
    Views: 546
    Downloads: 11
    In this report, we measure the performance persistence of Australian active funds that outperformed their peers and benchmarks over consecutive three- and five-year periods, and we analyze their transition matrices over subsequent periods.
  • Weekly Market Update (18 Feb-22 Feb 2018)

    Source: EBLSL Research
    Date Submitted: 26 Mar 2018
    Views: 52
    Downloads: 9
    The prime bourse of the country extended the losing streak for the fifth straight week as investors continued their selling binge amid pessimism. Investors remained cautious as political tension along with prevailing liquidity crisis and also uncertainty over the Dhaka bourse share sales to strategic partner and followed a see-saw strategy ahead of dividend declaration.
  • Global Applications of the S&P 500® Sectors

    Source: Tim Edwards, Craig J. Lazzara, Hamish Preston, Francesca Bruna Pipino
    Date Submitted: 21 Mar 2018
    Views: 92
    Downloads: 2
    This paper examines the applications of U.S. sector indices in a portfolio context, from the perspective of both international and domestic investors. 
  • SPIVA U.S. Year-End 2017 Scorecard

    Source: Aye Soe, Ryan Poirier
    Date Submitted: 20 Mar 2018
    Views: 0
    Downloads: 0
    Since its first publication 16 years ago, the SPIVA Scorecard has served as the de facto scorekeeper of the active versus passive debate.
  • Commodities Are Like a Box of Chocolates, if You Only Factor in Interest Rates and the U.S. Dollar

    Source: Marya Alsati
    Date Submitted: 16 Mar 2018
    Views: 135
    Downloads: 0
    The Dow Jones Commodity Index (DJCI) was down 1.9% for the month and up 0.7% YTD, and the S&P GSCI was down 3.3% and flat YTD.
  • SPIVA Australia Year-End 2017 Scorecard

    Source: Priscilla Luk
    Date Submitted: 16 Mar 2018
    Views: 421
    Downloads: 4
    The SPIVA Australia Scorecard reports on the performance of actively managed Australian mutual funds against their respective benchmark indices over 1-, 3-, 5-, 10-, and now 15-year investment horizons.
  • Asian Fixed Income: Mega 30 in China Versus U.S.

    Source: Michele Leung
    Date Submitted: 03 May 2018
    Views: 13360
    Downloads: 0
    Despite the lackluster performance of Chinese bonds in 2017, the market value tracked by the S&P China Bond Index continued to expand and reached CNY 56.9 trillion (USD 9 trillion).
  • S&P BSE Bharat 22 Index: A benchmark for “Bharat 22” disinvestment program of Government of India

    Source: Akash Jain, Mahavir Kaswa
    Date Submitted: 07 Mar 2018
    Views: 116
    Downloads: 2
    This paper highlights the salient features of S&P BSE Bharat 22 Index, its objective, and its
    characteristics.
  • China Bond Market Development: 2017 in Review

    Source: Michele Leung
    Date Submitted: 27 Feb 2018
    Views: 158
    Downloads: 6
    As represented by the S&P China Bond Index, the one-year total return was down by 0.29%, contrasting with the strong gains observed in previous years.
  • S&P/JPX JGB VIX® Update January 2018

    Source: S&P Dow Jones Indices, Applied Academics
    Date Submitted: 23 Feb 2018
    Views: 1
    Downloads: 1
    JGB VIX Gets a Boost From the BoJ
  • India ETFs Wrap-up: 2017

    Source: Mahavir Kaswa
    Date Submitted: 22 Feb 2018
    Views: 134
    Downloads: 0
    As of Dec 31, 2017, the total AUM of the ETF industry stood at INR 78,000 crores (USD 12 billion), with an annualized growth rate of 76.6% during the past four years.
  • Mapping Sustainable Finance in Hong Kong

    Source: RS Group
    Date Submitted: 21 Feb 2018
    Views: 1159
    Downloads: 0
    In this inaugural survey, RS Group sets out to understand the current state of play of sustainable finance in Hong Kong as viewed by six stakeholder groups. By identifying the key drivers, challenges and sentiment towards sustainable finance, the survey aims to spark conversations, motivate action, and ultimately inform and inspire readers to adopt sustainable finance. RS Group surveyed near 240 individuals representing asset owners, asset managers, financial institutions, corporates, thought leaders, government, and regulators, and among many findings note 90% of respondents believe Hong Kong is “behind” or “reactive” in terms of sustainable finance compared with other global jurisdiction. While 75% believe sustainable finance is critical in order to maintain the city’s primacy as a leading international financial centre.

    Download the Report here: http://www.rsgroup.asia/sfi/surveyreport/

    RS Group is a Hong Kong-based family office whose mission is to advance a paradigm shift in people’s values and priorities, so that economic growth will not jeopardise human development and environmental sustainability. Recognising the severity and urgency of global issues faced today, RS Group have chosen to apply its entire capital portfolio towards advancing its mission. To further support  sustainable finance in Hong Kong, RS Group began developing the "Sustainable Finance Initiative" (SFI) in 2017. SFI’s mission is to mobilise private capital for positive impact, and accelerate Hong Kong's transition towards a sustainable financial centre.

    Further information can be found here http://www.rsgroup.asia/sfi/ or please email the team at sfi@rsgroup.asia 
     
     
  • Understanding female investors - women using capital to change the world

    Source: Moxie Future
    Date Submitted: 21 Feb 2018
    Views: 1472
    Downloads: 0
    New research published by Moxie Future shows that women are leading the way when it comes to investing responsibly with almost two thirds of those surveyed expressing an interest in pursuing investments that have a beneficial impact on society.
    The report entitled, “Understanding Female Investors: Women Using Capital to Change the World” (#UFI18) was commissioned by Moxie Future to better understand the investment preferences, habits and motivations of women and their interest in responsible investing, which entails channelling funds into companies and industries that are creating positive social and environmental change.  
     “Our survey shows that female investors want more than just good financial returns,” says Moxie Future’s Founder Ms. Jessica Robinson. “In addition, increasing numbers of professional women want to make investment decisions that positively influence the world and are aligned with their values.”
     In total, 2,536 women aged 18 to 65 were surveyed across the five major markets of Australia, China, Germany, United Kingdom and the United States through online interviews conducted between March and April 2017.
    Findings from the research highlight how female investors in China show the greatest interest and concern when it comes to responsible investment. In total, 84% of women surveyed in China expressed that they are motivated to be a responsible investor.
    Among those surveyed, globally 69% of women indicated that they would be interested in investing responsibly if suitable products were available. Interest in responsible investment products is notably highest among women in China (91%) and the United States (74%). 
    Across all markets poverty, income equality, healthcare and climate change are causes that matter the most to women when it comes to investing their wealth.
    In addition, while the research found that women are motivated, there are a number of barriers to be addressed. Many women view their lack of time, knowledge, understanding and distrust of information regarding investment products as the key obstacles in the responsible investment process. Within China however, the leading concern is lack of tested products in the market.
    “The research shines a light on the mindset of today’s female investors from their priorities when making investment decisions to the concerns that may be deterring them from investing responsibly,” says Ms. Robinson.
    “While our study has found that women are generally positive about responsible investing, it has uncovered the practical difficulties that they face when committing their money, not least a perception among women that the financial services industry is failing to offer advice that aligns with their goals and interests.
    “What this tells us is, not only is there a disconnect between women and the financial services sector, but there are untapped opportunities for the industry to work more closely with female investors to deliver products and services specifically designed around them. This includes catering to the investment preferences of women and addressing their needs in a more meaningful way.”
    With regards to China, Ms. Robinson attributes the higher levels of interest in responsible investing to the fact that Chinese women are facing more visible challenges, particularly environmental threats which may explain why they are more motivated.  
    “This is not forgetting that in terms of financial confidence, our research has uncovered that Chinese women tend to be the most bullish in their own investment abilities,” she continues.
    Results from the research also point to how of the five markets surveyed, women in Germany appear to be the most lacking in confidence. Concludes Ms. Robinson, “When it comes to responsible investment opportunities, confidence matters because the higher the level, the more likely female investors are to be concerned and engaged.”
    To view a full copy of the report, please see “Understanding Female Investors: Women Using Capital to Change the World. HONG KONG, 30 January, 2018 – New research published today by Moxie Future shows that women are leading the way when it comes to investing responsibly with almost two thirds of those surveyed expressing an interest in pursuing investments that have a beneficial impact on society.
     
     
  • Impact of GICS Changes to Pan Asian Sectors: BAT Moving Away From Information Technology

    Source: Utkarsh Agrawal
    Date Submitted: 20 Feb 2018
    Views: 25
    Downloads: 0
    S&P Dow Jones Indices and MSCI have announced revisions to the GICS® structure, to be implemented in September 2018, that will affect the consumer discretionary, information technology, and telecommunication services sectors.
  • Why Revenue Exposure Indices Are Relevant in Today’s World

    Source: John Welling
    Date Submitted: 13 Feb 2018
    Views: 563
    Downloads: 12
    The S&P Geographic Revenue Exposure Indices seek to capture the performance of companies with revenues centered on specific target regions or countries.
  • Sustainable Investment in the Global Space

    Source: Emily Ulrich
    Date Submitted: 09 Feb 2018
    Views: 931
    Downloads: 16
    In recent years, sustainable investing has moved to the forefront of the global agenda.
  • Do Earnings Revisions Matter in Asia?

    Source: Utkarsh Agrawal, Priscilla Luk
    Date Submitted: 08 Feb 2018
    Views: 57
    Downloads: 3
    We explore the efficacy of earnings revision strategies in various Pan Asian equity markets including Australia, China, Hong Kong, India, Japan, South Korea, and Taiwan to shed light on whether earnings revisions can be an alternative source of return drivers for these markets.
  • Retail Investor Study

    Source: Investor Education Centre
    Date Submitted: 08 Feb 2018
    Views: 14909
    Downloads: 0
    The Investor Education Centre (IEC) conducted a research study in 2017 comprising both qualitative investigation and quantitative interviews to understand Hong Kong retail investors’ attitudes and behaviour towards investing, with a view to inform the formulation of future investor education initiatives.

    Key research findings are outlined below:
     
    Retail Investor Participation
    • Three out of five adults aged 18-70 had invested in financial products in the past year with close to half (48%) investing in stocks. Foreign exchange followed at a distant second of 27% while investment funds (excluding MPF/ORSO schemes) came at third (14%). Other products saw less than 10% incidence. Investors on average invested in 1.63 out of the eight types of financial products covered in the research.
    • Investors held HK$0.43 million of liquid asset on average and allocated 45% of it in the investment of financial products.
    • While majority had long-term capital growth in mind, a significant proportion (41%) of investors also aimed for quick profits.
    Perception of Investment Products
    • When asked to rate different investment products’ risk level on a three-point scale of high/medium/low risk level, a vast majority rated derivatives and structured products as high risk products (81% and 70% respectively). Stocks and funds were largely seen as being of medium risk (71% and 63% respectively), with 21% perceiving funds as low-risk and 7% for stocks. Bonds and forex were generally regarded as carrying low risks.
    • While risk level appeared to be a common concept among investors, the research also explored whether investors perceived different investment products by the level of complexity - and if they distinguished product complexity and risk level as two distinct concepts. From focus group discussions, it appeared that complexity of products was not a well-defined concept and investors generally equated complexity with risk level.
      In the survey, when asked to rate different investment products as “complex”, “simple” and “half and half”, majority rated derivatives and structured products as complex products (79% and 72% respectively). Bonds and forex sat at the other end of the spectrum with 51% and 79% categorising them as simple products respectively. Stocks and funds were again in the middle with slightly more investors seeing them as simple rather than complex products.
      Regression analysis revealed that the two variables were highly correlated with an R-squared as high as 0.97. Apparently there was a lack of understanding that complexity of a financial product is not necessarily related to its risk level.   
  • Shooting the Messenger

    Source: Anu R. Ganti, Craig J. Lazarra
    Date Submitted: 07 Feb 2018
    Views: 9642
    Downloads: 16
    The rise of passive management was the consequence of active performance shortfalls.
  • Demand-Supply Dynamics of Asia’s Healthcare Sector

    Source: SGX My Gateway, ,
    Date Submitted: 07 Feb 2018
    Views: 180
    Downloads: 13
    Demand-Supply Dynamics of Asia’s Healthcare Sector
    • Asia’s accelerated ageing rates and the rise of lifestyle diseases will likely boost the region’s healthcare spending outlook in coming decades, while in supply terms, the region’s medical facilities, equipment and manpower will continue to trail the per capita averages of the 34 OECD member countries. SGX-listed healthcare plays that derive significant revenues from markets beyond Singapore have exposure to these robust demand-supply dynamics.
       
    • Singapore’s listed healthcare sector, as tracked by the benchmark SGX All-Healthcare Index, consists of 30 companies and related trusts with a combined market capitalisation of more than S$34 billion. Seven of the 10 largest constituents of the Index report more than a third of group revenues to Asia Pacific ex-Singapore, namely Southeast Asia, North Asia and South Asia.
       
    • Healthcare stocks posted a mixed performance in 2017, as funds rotated out of defensives into cyclical plays. However, the tide has turned over the last few weeks, making Healthcare the best-performing sector on a market capitalisation-weighted basis in the month of December, and positive momentum continuing into the New Year.
  • Investing in the U.S. Corporate Bond Market From an Asian Perspective

    Source: Michele Leung
    Date Submitted: 06 Feb 2018
    Views: 64
    Downloads: 0
    As Asian market participants have become more aware of the importance of portfolio diversification, they have been paying more attention to the U.S. corporate bond market. 
  • Factor Performance Across Different Macroeconomic Regimes in India

    Source: Akash Jain, Priscilla Luk
    Date Submitted: 01 Feb 2018
    Views: 263
    Downloads: 7
    For this paper, we compared sector composition in factor portfolios and examine performance characteristics of factors in different macroeconomic regimes, including market cycles, business cycles, and investor sentiment regimes in India.
  • Rising Rate Implications for Japanese Investors

    Source: Michele Leung,
    Date Submitted: 29 Jan 2018
    Views: 57
    Downloads: 0
    The outperformance of U.S. Treasuries this year reversed the previous trend, wherein Japanese sovereign bonds delivered higher risk-adjusted return in three- and five-year timeframes due to the better returns and lower volatility.
  • Viewing the History of China A-Shares Through the Lens of the Dow Jones China 88 Index

    Source: John Welling
    Date Submitted: 28 Jan 2018
    Views: 179
    Downloads: 0
    Let’s revisit some of the recent history of the China A-shares market through the lens of the Dow Jones China 88 Index.
  • S&P GIVI® Japan and Major Single Factors 2017 Review

    Source: Tianyin Cheng
    Date Submitted: 26 Jan 2018
    Views: 31
    Downloads: 2
    The S&P GIVI (Global Intrinsic Value Index) Japan underperformed its benchmark index, the S&P Japan BMI, by 1.21% in Q4 2017 and 2.99% for the entire year.
  • Asian Fixed Income: 2017 Pan Asia Report Card

    Source: Michele Leung
    Date Submitted: 16 Jan 2018
    Views: 164
    Downloads: 0
    The S&P Pan Asia Bond Index, which seeks to track local currency bonds in 10 countries and is calculated in USD, reversed its loss in 2016 and delivered a total return of 7.86% in 2017. Meanwhile, its yield-to-maturity widened 123 bps to 4.64% YTD. The S&P Pan Asia Corporate Bond Indexoutperformed the S&P Pan Asia Government Bond Index and gained 8.30% over the same period. The size of Asia’s local currency bond markets, as measured by the S&P Pan Asia Bond Index, continued to expand and grew 17% to reach USD 12.1 trillion in 2017.
  • Asian Fixed Income: Indonesian Sovereign Bonds Were the Big Winners in 2017

    Source: Michele Leung
    Date Submitted: 11 Jan 2018
    Views: 567
    Downloads: 0
    With the growing appetite for emerging market debt and in the hunt for better yields, Indonesian sovereign bonds have been popular this year.
  • 82 Companies Bought Back S$425M in Shares in 2017

    Source: SGX MY Gateway
    Date Submitted: 10 Jan 2018
    Views: 297
    Downloads: 3
    82 Companies Bought Back S$425M in Shares in 2017
    • In 2017, 82 SGX-listed companies conducted share buybacks, with a total consideration of S$425 million. This was just over half the S$826 million in consideration for 2016, coinciding with comparatively stronger STI price gains of 18.1% in 2017.  
    • OCBC buybacks accounted for 52% of the S$425 million consideration, with Keppel Corporation, Silverlake Axis, Yanlord Land Group, ST Engineering and SIA Engineering the next highest ranking by consideration.
    • For the month of Dec 2017, there were a total of 28.3 million shares repurchased by 27 companies, with a total consideration of S$42.9 million. Buyback consideration was up 9% from the S$39.4 million reported for Nov 2017 and up more than fourfold from Dec 2016. 
  • Venture Corporation Scheduled to Join STI on 5 January

    Source: SGX My Gateway
    Date Submitted: 03 Jan 2018
    Views: 232
    Downloads: 3
    Venture Corporation Scheduled to Join STI on 5 January
    • Venture Corporation is expected to join the STI effective Friday 5 Jan, with the last trading day of existing STI constituent, Global Logistic Properties, expected to be 4 Jan. Venture was selected as it maintained the highest market capitalisation of the STI Reserve on the 2 Jan close. 
    • Venture generated a 115.4% total return in 2017, with institutional net buying totaling S$133 million. The leading global provider of technology services, products and solutions reported its net profit grew 81.4% YoY for its 9MFY17 ending 30 Sep.          
    • Venture is expected to make up between 1.5% and 2.0% weightage in the STI, based on public free-float information and STI weights as of 29 Sep 2017. The IT Sector will then be represented within the STI and the Real Estate Sector is expected to reduce its weightage in the STI by 3.0% to 15.6%.  
  • Making the Case for International Small Caps

    Source: Michael Orzano, John Welling
    Date Submitted: 03 Jan 2018
    Views: 163
    Downloads: 7
    International small caps represent a meaningful portion of the global equity opportunity set, have historically generated strong absolute and risk-adjusted returns, have been less volatile than U.S. small caps, and have relatively low correlations to U.S. equities and other asset classes.
  • Reading VIX®: Does VIX Predict Future Volatility?

    Source: Tim Edwards, PhD, Hamish Preston
    Date Submitted: 29 Dec 2017
    Views: 1439
    Downloads: 31
    The purpose of this paper is to provide—without requiring a prior knowledge of the sophisticated mathematics involved in option pricing—a practitioner’s guide to interpreting what is, and what is not, indicated by VIX.
  • SGX’s Indonesia-Focused Coal Plays Average 50.7% Gain YTD

    Source: SGX My Gateway
    Date Submitted: 26 Dec 2017
    Views: 23
    Downloads: 0
    SGX’s Indonesia-Focused Coal Plays Average 50.7% Gain YTD
    • SGX’s three Indonesia-focused coal miners – Golden Energy and Resources, Geo Energy Resources and BlackGold Natural Resources – have averaged a price gain of 50.7% in the 2017 YTD, as Indonesia’s benchmark coal price surged to a 10-month high.
    • In October, Indonesia's reference coal price, known as Harga Batubara Acuan (HBA), jumped 2.1% month-on-month to US$93.99 per metric tonne, after soaring 9.6% month-on-month in September, according to data from the country's Ministry of Energy and Mineral Resources. HBA is now at its highest since December 2016. 
    • Coal is expected to remain a vital source in meeting Indonesia's growing domestic electrification needs. In 2015, Indonesian President Widodo unveiled an ambitious 35,000 MW program to boost the country's electrification ratio to 97% by 2019, with about 25,000 MW of capacity expected to come from coal-fired power plants.
  • Oil & Maritime Indices Veered on Global Growth

    Source: SGX My Gateway
    Date Submitted: 26 Dec 2017
    Views: 637
    Downloads: 8
    Oil & Maritime Indices Veered on Global Growth
    • Two key factors currently driving the price of oil price include an upcoming decision by OPEC on whether to extend production cuts (30 Nov), in addition to continued production growth of shale in the US.
    • While price of WTI Crude Oil rallied +38% from 21 June to 8 Nov, this was largely a price recovery with the current price +3% higher than its end of 2016 level. This has coincided with downstream plays, more sensitive to global growth and trade, outperforming the oil & gas upstream plays.
    • Since 30 June, the more-downstream SGX Maritime Index has gained +24%, led by performances of Cosco Shipping International (+110.9%) and Yangzijiang Shipbuilding (+42.0%), whilst the more-upstream SGX Oil & Gas Index generated a marginal gain.
  • Longer Term Drivers of SGX Agricultural Plays

    Source: SGX My Gateway
    Date Submitted: 26 Dec 2017
    Views: 190
    Downloads: 4
    Longer Term Drivers of SGX Agricultural Plays
    • SGX lists eight Agricultural Products stocks with a combined market capitalisation of S$29 billion. In the 2017 YTD, these stocks averaged a -13.7% price change, compared to +16.7% in 2016. Global Palm Resources Holdings, which registered a price change of +15.4% in the YTD, was the best-performing stock in the sector.
    • Zion Market Research has forecast the global palm oil market to grow at a CAGR of 7.2% between 2016 and 2021. Growth drivers include higher living standards, changing eating habits, growing demand for vegetable oil as a feedstock for biodiesel production as well as low prices compared to soybean and other vegetable oils.
    • Palm oil prices for the rest of 2017 are projected to remain firm, given the seasonally strong fourth quarter, according to Bloomberg Intelligence. A further boost could come from weaker-than-expected output, as well as an anticipated cut in Europe's import tariffs for Indonesia's biodiesel.
  • Highlights of Gold Opportunities on SGX

    Source: SGX My Gateway
    Date Submitted: 26 Dec 2017
    Views: 182
    Downloads: 6
    Highlights of Gold Opportunities on SGX
    • SGX offers investors opportunities to participate in the gold sector through three mining stocks – Wilton Resources, CNMC Goldmine and Anchor Resources – and one Exchange Traded Fund, the SPDR Gold Shares ETF.
    • Spot gold has fallen over 4% since hitting a one-year high of US$1,349.22 on 7 September 2017, which reduces its YTD gain to 12%. Bullion's performance has been impacted by flagging investor interest after the recent surge in US equity markets, the focus on cryptocurrencies like Bitcoin, and as central banks began paring their stimulus policies.
    • The World Gold Council has consistently flagged the diversification role of gold, noting that the commodity fulfils a classic role as a haven asset. A key motivation for including bullion in a portfolio has been the metal’s history of maintaining low correlations to most other asset classes, which helps to reduce overall portfolio risk.
  • Socially Responsible Investing in India

    Source: Ved Malla
    Date Submitted: 26 Dec 2017
    Views: 179
    Downloads: 0

    Socially responsible investing in India is at a nascent stage, but it is evolving and is expected to gain momentum in coming years. 

  • Carbon Pricing: The Business Case for Low-Carbon Innovation

    Source: Rochelle March
    Date Submitted: 22 Dec 2017
    Views: 197
    Downloads: 0
    The belief that economic growth is possible without lowering carbon emissions is becoming harder to sell by the minute.
  • Moving Forward With SDGs: Metrics for Action

    Source: Bridget Realmuto LaPerla, Caroline Bartlett, Rick Lord
    Date Submitted: 18 Dec 2017
    Views: 209
    Downloads: 2
    Financial institutions are voicing their support and creating investment opportunities, companies are identifying business value and reporting their contributions, and a multitude of frameworks are emerging to fill the gap between ambition and attainment.
  • Performance of Capital Markets in India Since Demonetization

    Source: Ved Malla
    Date Submitted: 15 Dec 2017
    Views: 157
    Downloads: 0
    Wherever the debate on demonetization goes, it’s easy to see that capital markets in India have been on a roll over the past year and have given exponential returns across size, segments, and sectors.
  • Korea Corporate Governance Symposium – ARX O2O Event, Korea, Seoul

    Source: Bruce Lee, CFA, Alan Lok, CFA
    Date Submitted: 26 Mar 2018
    Views: 1479
    Downloads: 25

    Last autumn, leveraging on the iconic article by Dr Bruce Lee, CFA on Korea’s corporate governance (CG) scene:

    “Corporate Governance Revolution Ahead?” https://www.arx.cfa/post/Corporate-Governance-Revolution-Ahead-3751.html

    CFA Institute, in collaboration with CFA Society Korea, hosted a CG panel discussion with Dr Bruce Lee and three other practising experts.

    The panel discussion was a full-house event with more than 80 participants from the local CFA community.

  • A Comparative Analysis on Listed IT Companies of Bangladesh

    Source: Asaduzzaman Ashik
    Date Submitted: 09 Dec 2017
    Views: 189
    Downloads: 20
    IT Industry has been professed as a thrust sector assessing the ability and interests of young populace of the country. In Bangladesh, there are more than 100 software houses, 35 data entry centers, thousands of formal and informal IT Training centers and numerous computer workshops. VAT  has  been  withdrawn  from  locally  developed  Software,  Digital  Data  Network has  been  introduced,  and  VSAT  is deregulated in Bangladesh. Some remarkable events are going on in every sector covering E -commerce, E-governance, Computer Networking, Internet, Web Browsing, Web Applications, Multimedia Product Development and others.

     
  • Does Value Enhance Quality Investing in China's A-Share Market?

    Source: Liyu Zeng
    Date Submitted: 07 Dec 2017
    Views: 871
    Downloads: 0
    Quality investing has gained attraction in China, as high-quality stocks recorded remarkable performance in the first nine months of 2017.  As a result, the risk of paying too much for high-quality stocks has become a concern.  To address the issue, on Sept. 29, 2017 we launched the S&P China A-Share Quality Value Index, which is designed to measure the performance of the top 100 high-quality stocks with reasonable valuation, (see Exhibit 1).
  • Changing Landscapes in the Singapore Retail Property Market

    Source: SGX My Gateway
    Date Submitted: 04 Dec 2017
    Views: 1226
    Downloads: 33
    Changing Landscapes in the Singapore Retail Property Market
    • Singapore retail space vacancy rose to 7.7% in 1Q17 despite a 2.9% QoQ decline in price rentals. However, impact of retail headwinds may not be evenly felt across all malls.
    • New supply of retail malls largely located in Outside Central Regions, in line with the government’s plan of decentralised business districts and growth of regional centres.
    • SGX lists 12 Retail REITs & Property Trusts which have retail properties within their asset portfolios with a combined market capitalisation of S$30.9 billion. These 12 trusts have generated a market cap weighted average total return of 16.2% in the YTD and have an average dividend yield of 6.1%.
  • Recent Trends & Moves in Singapore’s Hospitality Trusts

    Source: SGX My Gateway
    Date Submitted: 04 Dec 2017
    Views: 755
    Downloads: 12
    Recent Trends & Moves in Singapore’s Hospitality Trusts
    • Hotel RevPar in 2016 fell 4.7% YoY despite an increase of 7.7% in tourist arrivals, with a slower rate of decline since 2017. Hotel occupancy rates remain at an 8 year average of 86%.
    • New hotel room supply in 2017 stands at 3,400 rooms (URA 1Q17 data), 60% higher YoY, but supply is expected to ease in 2018 due to lack of supply of new land for hotel development.
    • SGX lists one Hospitality REIT and five Hospitality Stapled Trusts with a combined market capitalisation of S$9.1 billion. These six trusts have generated a market cap weighted average total return of 19.0% in the YTD and have an average dividend yield of 6.5%.
  • An In-Depth Look at the Dow Jones Sukuk Indices

    Source: Michele Leung, James "J.R." Rieger
    Date Submitted: 30 Nov 2017
    Views: 41
    Downloads: 3
    Market participant appetite for sukuk remains, and there is a tendency to favor higher-yielding and longer-tenor sukuk.
  • CROWDFUNDING MALAYSIA'S SHARING ECONOMY - Alternative Financing for Micro, Small and Medium Enterprises

    Source: Dr Raymond Madden, Chief Executive Officer, Asian Institute of Finance, Kee Gek Choo, General Manager, Strategy, Policy Development and Research, Asian Institute of Finance
    Date Submitted: 27 Nov 2017
    Views: 4201
    Downloads: 85
    FOREWORD


    Although a relatively new phenomenon in Malaysia, crowdfunding has been greeted by the government and market alike as a part of disruptive financial technologies (FinTech) that add impetus to Malaysia’s move towards a 21st century digital economy. With the government’s policy commitment, financial assistance, regulatory supervision and other supportive measures, crowdfunding is expected to accelerate in the near future as a critical source of alternative financing for SMEs to create new employment, enhance social participation and help Malaysia adjust to the fast-shifting dynamics of the global economic and social landscape. In spite of its promising prospects, there are gaps in awareness of what crowdfunding is and the opportunities and risks it presents. There is a shortage of actionable information on: • the role of crowdfunding in the policy, business and financing environment for SMEs; • the level of understanding of crowdfunding among the public and small entrepreneurs; • their interest and willingness to participate in crowdfunded projects/activities; and • the effectiveness of the national ecosystem for crowdfunding. This report addresses these gaps to help realise the full potential of crowdfunding in Malaysia. It is based on a two-phase research study. The first consisted of a quantitative survey of the public and small entrepreneurs within the Klang Valley, and the second involved desk research and consultations with crowdfunding platform operators, national agencies/institutions, sophisticated investors and start-up entrepreneurs. The report describes a vibrant crowdfunding environment emerging in Malaysia following Bank Negara Malaysia’s policy support for alternative financing, and the Securities Commission Malaysia’s introduction of regulatory frameworks for equity crowdfunding (ECF) in 2015 and peer-to-peer crowdfunding (P2P) in 2016. Since crowdfunding continues to evolve rapidly around the world and is still at an early stage in the country, the insights offered by this report are an initial but comprehensive snapshot of the local crowdfunding environment and its future growth potential.
  • Singapore Office Property Market Stabilising Despite Headwinds

    Source: SGX My Gateway
    Date Submitted: 20 Nov 2017
    Views: 708
    Downloads: 1
    Singapore Office Property Market Stabilising Despite Headwinds
    • 1Q17 office space vacancy rates peaked at 11.6%, highest in five years. Office rental rates continue to decline and Grade A office rents stabilising QoQ, indicating signs of stabilisation in office rental rates.
    • Office space supply is expected to peak in 2017 and taper off in the next few years. CBRE Research believes that sentiment has swung from pessimism to optimism as investors forecast a period of relatively modest supply over the next few years.
    • SGX lists six Office REITs (GICS®) with a combined market capitalisation of S$12.8 billion. These 6 trusts have generated a market cap weighted average total return of 16.9% in the YTD and have an average dividend yield of 5.7%.
  • Green Shoots Emerge Despite Challenging Industrial Property Market

    Source: SGX My Gateway
    Date Submitted: 20 Nov 2017
    Views: 78
    Downloads: 2
    Green Shoots Emerge Despite Challenging Industrial Property Market
    • Singapore’s industrial property market remains challenging as industrial space supply is expected to peak in 2017, before tapering off in the next few years.
    • Green shoots in manufacturing activity data, and the Singapore government’s economic shift, coupled with its focus on higher value-added businesses, bode well for industrial property demand.
    • SGX lists 11 REITs & Property Trusts which have industrial properties within their asset portfolios. These 11 trusts have generated an average year-to-date total return of 19.0%.
  • Singapore Private Property Market Shows Signs of Stabilising

    Source: SGX My Gateway
    Date Submitted: 13 Nov 2017
    Views: 321
    Downloads: 4
    Singapore Private Property Market Shows Signs of Stabilising
    • Singapore’s private property market appears to be stabilising as URA’s 2Q17 flash estimates show smallest QoQ price decline of private residential property prices since 4Q13. YTD average monthly primary private home sales volumes are also 74.6% higher YoY.
    • Existing property cooling measures are likely to remain despite recent calibrated adjustments. In the medium term, MAS believes that Singapore’s property prices should be aligned with broader income trends in the local economy.
    • SGX lists six Real Estate Management & Development (GICS®) stocks with market capitalisation above S$1 billion that have substantial exposure to the Singapore property market. These six companies have an average total return of 29.2% in the year thus far.
  • SGX Real Estate Index Returned 19.5% YTD on Positive Indicators

    Source: SGX My Gateway
    Date Submitted: 13 Nov 2017
    Views: 105
    Downloads: 1
    SGX Real Estate Index Returned 19.5% YTD on Positive Indicators
    • The SGX Real Estate Index, a benchmark for Singapore’s Real Estate Sector, has returned 19.5% in the YTD. Domestic private home prices have shown signs of stabilisation in recent months, with a pick-up in primary transaction volumes.
    • There are 104 Real Estate companies (diverse across assets) with a combined market capitalisation of almost S$190 billion listed on the SGX. Some key drivers for the sector include population growth, government cooling measures, land supply and interest rates.
    • Post the YTD rally, sector valuations remain below their long-term historical average. Singapore property developer stocks are trading at PB ratio of 0.75x vs their long-term average of 0.83x.
  • SPIVA Japan Mid-Year 2017 Scorecard

    Source: Priscilla Luk
    Date Submitted: 10 Nov 2017
    Views: 44
    Downloads: 1
    The SPIVA Japan Scorecard reports on the performance of actively managed Japanese mutual funds against their respective benchmark indices over 1-, 3-, 5-, and 10-year investment horizons.
  • Do Investors Benefit from DCA?  Evidence from the Stock Exchange of Thailand

    Source: Kanin Anantanasuwong, Sirithida Chaivisuttankgun
    Date Submitted: 07 Nov 2017
    Views: 569
    Downloads: 12
     
                  This paper empirically examines the effectiveness of DCA and its alternative strategies in the Thai stock market. Looking that one-year investment horizon, we find that the DCA and its closely relative VA are less preferable to a simpler strategy such as LS or AA in term of risk adjusted performance. This is a contradiction to the common advice given by professional financial advisors. While they claim that DCA reduces the exposure of an investment, thus limit its risk, our finding about downside risk measure is inconclusive. DCA and VA are better than LS and AA when using the mean of Sortino ratio, yet their medians are worse.
                  We create indices that follow the growth of wealth from investing in each of the strategy, and find that, while DCA and VA offer less terminal wealth, they failed to prevent the portfolios from the decline during the financial crisis in 2008. This is due to the fact that DCA and VA can only prevent the losses that occur in the early phase of the investment horizon. If the losses come later on when the strategies have already accumulated a lot of exposure on the stock market, then they are no better than LS.
                  However, even though DCA and VA are inferior to LS and AA in term of the outcome from investment, they might be appropriate choice for people who want to make a saving plan which investment schedule comes in line with their monthly incomes. Thus, the usefulness of DCA and VA are rather in term of money management than investment outcome.
  • 10 Biggest US Exposure Plays Generated 35.6% YTD Weighted Returns

    Source: SGX My Gateway
    Date Submitted: 07 Nov 2017
    Views: 37
    Downloads: 0
    10 Biggest US Exposure Plays Generated 35.6% YTD Weighted Returns
    • US 3Q GDP will be released on Oct 27 (Fri). Focus will be on economic impact from hurricane Harvey and Irma, President Trump’s push for US tax reforms and decision on the Federal Reserve Chair replacement.
    • The 10 largest capitalized stocks with at least 20% of their revenue from US have averaged a market capitalisation-weighted total return of 35.6% in the year to date. This compares with the Dow Jones Industrial Average and S&P 500 Index’s 13.2% and 9.2% respectively in SGD terms.
    • The six non-inverse US equity ETFs listed on SGX have averaged a total return of 12.5% in the year thus far. There are 10 US ETFs listed on SGX. Seven track equity indices (including one S&P 500 Inverse Daily (-1x), two fixed-income assets, and one that tracks the money market.
  • S-REITs in a Rising Interest Rate Environment

    Source: SGX My Gateway
    Date Submitted: 07 Nov 2017
    Views: 261
    Downloads: 8
    S-REITs in a Rising Interest Rate Environment
    • In the year-to-date, the SGX S-REIT Index has generated a 15.5% price gain and 21.2% total return (inclusive of dividends), compared to the benchmark STI’s 15.6% price gain and 19.0% total return. Singapore’s 3-month SIBOR has gained 16.2% in the same period.
    • In theory, a rise in interest rates will lead to an increase in borrowing costs, which impacts the profitability of REITs and their ability to make acquisitions. However, gradual rate increases are also often associated with improving economic growth, which indirectly boosts REITs’ earnings.
    • The SGX S-REIT Index maintains a median gearing ratio of 34.0%, below the 45.0% limit. In terms of valuation, yield spreads between S-REITs and 10-year government bonds are at 385bps, 39bps above the long term average of 346bps.
  • 20 Largest China Plays Returned 27% in the YTD

    Source: SGX My Gateway
    Date Submitted: 05 Nov 2017
    Views: 82
    Downloads: 5
    20 Largest China Plays Returned 27% in the YTD
    • China’s 2017 GDP forecast was revised higher to 6.7% QoQ. Some of China’s growth drivers for the economy include its OBOR Initiative, supply-side structural reform, SOEs reform, growing middle-income class and domestic consumption, and the “Made in China 2025” new economy programme.
    • Close to a quarter (or 180) of SGX-listed companies generate at least 20% of their revenue from China and 80% of these companies derive half or more of their revenue from China. These companies provide investors with revenue exposure to China’s growth story.
    • Of the 20 largest capitalised stocks with at least 50% of their revenue generated from China, 16 saw positive YTD price returns. The five best performing stocks were Hi-P Intl (+165.7%), Elec & Eltek Intl Co (+66.4%), China Sunsine Chem Hldgs (+59.0%), Global Logistic Properties (+49.1%) and Yanlord Land Group (+25.0%).
  • FTSE ST China Index up 18% in 2017 YTD

    Source: SGX My Gateway
    Date Submitted: 05 Nov 2017
    Views: 61
    Downloads: 2
    FTSE ST China Index up 18% in 2017 YTD
    • In the 2017 YTD, Singapore’s FTSE ST China Index has generated a total return of 17.9%, compared to a 14.9% return for the H-share Index in SGD terms.
    • The FTSE ST China Index consists of FTSE ST All-Share Index constituents that report either at least half of their sales revenues from Mainland China, or report at least half of their operating assets in Mainland China.
    • CWT, Hi-P International, Valuetronics Holdings and Geo Energy Resources will join the FTSE ST China Index on 18 September. This will take the number of constituents in the Index to 21. There are no Index exclusions following the recent review.
    • These four pending FTSE ST China Index entrants have generated average price gains of 72% in the 2017 YTD, ranging from a 8.9% gain for Geo Energy Resources to a 172.6% gain for Hi-P International.
  • China-Focused Materials Stocks Led Sector’s YTD Gains

    Source: SGX My Gateway
    Date Submitted: 01 Nov 2017
    Views: 121
    Downloads: 1
    China-Focused Materials Stocks Led Sector’s YTD Gains
    • The Materials Sector has been Singapore’s second best performing Sector in the 2017 YTD with a market capitalisation-weighted average price gain of 31%. This compared to a 10% gain for the MSCI World Materials Index.
       
    • The YTD median gain of Singapore’s 10 largest capitalised Materials stocks was 5%, with a much higher average gain of 54%. Meanwhile, Singapore’s 10 largest capitalised Materials stocks that report the majority of their revenue to China generated a YTD median gain of 44% and average gain of 87%.
       
    • As many as seven of Singapore’s 10 largest capitalised Materials stocks with a China revenue focus reported 1HFY17 net profit growth. This ranged from +414% YoY net profit growth for Jiutian Chemical Group to +37.7% YoY net profit growth for Tat Seng Packaging Group.
  • ASEAN Plays Poised to Gain from China's Belt & Road Initiative (OBOR)

    Source: SGX My Gateway
    Date Submitted: 30 Oct 2017
    Views: 1849
    Downloads: 61
    ASEAN Plays Poised to Gain from China's Belt & Road Initiative (OBOR)
    • With its geographical proximity and relatively low risk profile, ASEAN is expected to be a key beneficiary and bridgehead of OBOR as it sees more infrastructure developments and improvements, as well as increased trade and regional connectivity in the region.
    • Singapore, being a member state of ASEAN, has significant roles to play in the OBOR initiative through its status as a financial hub. In addition, Singapore has established industries with the expertise to drive and support infrastructure development for OBOR in ASEAN.
    • SGX lists 192 stocks (c.25%) with at least 20% of their revenue generated from ASEAN across the GICS® Industrials, Materials, and Utilities Sectors. Of the 20 largest capitalised stocks, 13 saw positive YTD price returns. The five best-performing stocks were Jardine Strategic (+25.5%), Straits Trading (+25.1%), Riverstone Holdings (+18.7%), SBS Transit (+17.9%) and Keppel Infrastructure Trust (+16.8%).
  • SGX: China Environmental Plays in Spotlight as China Goes Green

    Source: SGX My Gateway
    Date Submitted: 30 Oct 2017
    Views: 845
    Downloads: 19
    SGX: China Environmental Plays in Spotlight as China Goes Green
    • Environmental protection and pollution control are becoming increasingly important in China’s policies, as the country strives to develop an ecological civilisation. During its journey to become a green economy, businesses with a focus on environmental utilities in China will likely play important roles.
    • The Chinese government has stepped up efforts to boost environmental protection in recent years, launching several initiatives to promote a greener and cleaner economy, investing in renewable projects and increasing enforcement on pollution domestically.
    • SGX has a cluster of 15 China environmental stocks with a combined market capitalisation of S$5.8 billion. The five biggest China environmental plays are CITIC Envirotech, SIIC Environment, China Everbright Water, China Jinjiang Environment and Sunpower Group.
  • SPIVA® Australia Mid-Year 2017 Scorecard 

    Source: Priscilla Luk
    Date Submitted: 25 Oct 2017
    Views: 625
    Downloads: 5
    The SPIVA Australia Scorecard reports on the performance of actively managed Australian mutual funds against their respective benchmark indices over 1-, 3-, 5-, and 10-year investment horizons. In this scorecard, we evaluated returns of more than 731 Australian equity funds (large, mid, and small cap, as well as A-REIT), 363 international equity funds, and 83 Australian bond funds. 
  • Private Equity in Asia: Successes & Scars

    Source: CAPER
    Date Submitted: 18 Oct 2017
    Views: 1768
    Downloads: 74

    Kathleen Ng, Managing Director at Centre for Asia Private Equity Research Ltd. conducted a workshop on "Private Equity in Asia - Successes & Scars" to CFA Society Beijing on October 12, 2017. Workshop covers.

    Part I - Latest Landscape of Private Equity in Asia


    Part II - Private Equity in Asia - Promises, Opportunities & Challenges

    Part III - Private Equity in Asia - Successes & Scars


    Beijing CFA Presentation
  • 8 Things You Must Know About Genting Plantations Bhd If You Are Investing In It

    Source: Ian Tai
    Date Submitted: 16 Oct 2017
    Views: 211
    Downloads: 3

    In 1977, the late Tan Sri Dato’ Seri Lim Goh Tong has incorporated Asiatic Development Bhd. It commenced plantation activities with 13,700 hectares of estates in West Malaysia in 1980. Subsequently, in 1982, it was listed on Bursa Malaysia. In 2009, the listing name was officially changed to Genting Plantations Bhd, a name that is retained till today.

    Since its listing, Genting Plantations Bhd has expanded its plantation assets to East Malaysia and Indonesia. 35 years later, Genting Plantations Bhd has become the third largest palm oil corporation listed on Bursa Malaysia in terms of market capitalization behind IOI Corporation Bhd and Kuala Lumpur Kepong Bhd currently.

    In this article, I’ll cover 8 things you need to know about Genting Plantations Bhd before you invest.

    #1: Stock Symbol

    1

    Ticker Symbol: KLSE: GENP / KLSE: 2291
    Market Capitalization: RM 8.19 Billion (2 October 2017)

    Share Price: RM 10.30 (2 October 2017)

    Industry: Palm Oil

    Syariah Compliant: Yes

    #2: The Business

    Genting Plantations Bhd has established an integrated business model that includes:

    • Palm Oil Plantations

      Genting Plantations Bhd has maintained its portfolio size of its palm oil estates in Malaysia at 59,000 – 60,000 hectares. From which, these estates has consistently produced 1.1 – 1.4 million MT of fresh fruit bunches (FFB) a year over the last 10 years. 

      Genting Plantations Bhd had started its planting activities in Indonesia in 2007. Beginning with 1,716 hectares in 2007, Genting Plantations Bhd has enlarged its size of palm oil estates in Indonesia to 131,159 hectares in 2016. These estates had produced its first fruits in 2010. Since then, the amount of FFB production had grown from 1,151 MT in 2010 to 479,334 MT in 2016.

    FFB Production in ‘000 Metric Tonnes

    Year 2012 2013 2014 2015 2016
    Malaysia 1,311 1,339 1,349 1,289 1,135
    Indonesia 81 185 307 438 479
    Total 1,392 1,525 1,656 1,727 1,614

    Source: Annual Reports of Genting Plantations Bhd

    • Palm Oil Mills

      Genting Plantations Bhd has 10 palm oil mills. 6 mills are located in Sabah. 3 mills are located in Indonesia and the remaining one is in West Malaysia. Combined, these mills have total milling capacity of 490 metric tonnes per hour. 

    • Property Development

      Genting Plantations Bhd is engaged in property development activities through Genting Property Sdn Bhd. It is currently engaged in development projects such as Genting Indahpura at Kulai, Johor and Genting Highlands Premium Outlets. In 2016, the property division has contributed RM 125.6 million in revenues. It remains a small division to Genting Plantations Bhd as it accounted only 8.5% of the company’s group revenues in 2016.

  • The 9 Things You Need To Know About IOI Corporation Bhd Before Investing

    Source: Ian Tai
    Date Submitted: 16 Oct 2017
    Views: 95
    Downloads: 1

    In 1969, Tan Sri Dato’ Lee Shin Cheng has established Industrial Oxygen Incorporated Sdn Bhd. Eleven years later, the company was listed under Industrial Oxygen Incorporated Bhd. In 1995, the listing name was officially changed to IOI Corporation Bhd, a name that is retained till today.

    Since its listing on Bursa MalaysiaIOI Corporation Bhd (KLSE:IOICORP) has expanded its plantation assets through acquisition of palm oil estates. In the 2000s, IOI Corporation Bhd has ventured into downstream palm oil manufacturing activities. As such, IOI Corporation Bhd has grown into one of the leading integrated palm oil conglomerates in the world.

    In this article, I’ll cover 9 things you need to know about IOI Corporation Bhd before you invest.

    #1: Stock Symbol

    1

    Ticker Symbol: KLSE: IOICORP / KLSE: 1691
    Market Capitalization: RM 28.55 Billion (30 September 2017)

    Share Price: RM 4.54 (30 September 2017)

    Industry: Palm Oil

    Syariah Compliant: Yes

    #2: The Business

    IOI Corporation Bhd has established an integrated business model that involves:

    • Upstream Activities

      In 2017, IOI Corporation Bhd has 90 estates with a total planted area of 174,396 hectares of palm oil plantations. It operates 15 palm oil mills with a total milling capacity of 4.75 million tonnes of fresh fruit bunches (FFB) per annum. 

      IOI Corporation Bhd has achieved lower yields from its plantation estates. This has resulted in lower FFB productions in 2016 and 2017. This, in turn, has caused the fewer production of crude palm oil (CPO) and palm kernel (PK) over the last 2 years.

      Figures in ‘000 Metric Tonnes

    Year 2013 2014 2015 2016 2017
    FFB 3,409 3,507 3,542 3,145 3,156
    CPO 708 752 782 697 691
    PK 179 186 187 164 155

    Source: Annual Reports of IOI Corporation Bhd

    • Downstream Activities

      IOI Corporation Bhd has 3 business segments in its downstream activities. They are refining, oleochemical, and speciality oils & fats. 

      The refining segment receives CPO and PK from its CPO mills and would produce palm and palm kernel oil fractions. They will be sent to the company’s oleochemical and speciality oils & fats segment as feedstock. In 2017, the refining segment operates 4 palm oil refineries with total refining capacity of 3.3 Million MT per annum. 
      The oleochemical segment receives feedstock from its refineries to manufacture fatty acids, glycerine, soap noodles and fatty esters. These products are exported to over 60 countries worldwide. This segment operates plants in Penang and Johor with a combined production capacity of 740,000 MT per annum. 
      The speciality oils & fats segment receive feedstock from its refineries to manufacture fractionated oils & blends which are often used as ingredients in the processed food industry. This segment is carried out by IOI Loders Croklaan which has operations in the Netherlands, Malaysia, Canada, and the United States. These products are exported to over 85 countries worldwide. 
      Over the last 5 years, IOI Corporation Bhd has maintained its sales of oleochemicals and specialty oils & fats products at 500,000 – 600,000 MT and 700,000 – 800,000 MT per annum.

    Figures in ‘000 Metric Tonnes

    Year 2013 2014 2015 2016 2017
    Refineries 3,052 2,707

    8 Things To Know About IOI Properties Group Bhd

    Source: Ian Tai
    Date Submitted: 16 Oct 2017
    Views: 193
    Downloads: 4

    IOI Properties Group Bhd (KLSE:IOIPG) is among the largest property development corporations in Malaysia. Its roots can be traced back to 1984. In that year, the IOI Group began its venture into property development by acquiring Bukit Kelang Development Sdn Bhd, Rapat Jaya Sdn Bhd and Eng Hup Industries Sdn Bhd.

    In 1990, IOI Properties had commenced the development of Bandar Puchong Jaya. Today, it is one of the most comprehensive self-contained township developments in the Klang Valley. Ever since, it has expanded its presence southwards to strategic locations in Negeri Sembilan, Melaka, Johor and even down to Singapore.

    From 2009 to 2013, IOI Properties operated as a subsidiary and the property arm of IOI Corporation Bhd. Subsequently, on 15 January 2014, IOI Properties was demerged from IOI Corporation Bhd and is listed under IOI Properties Group Bhd (IOI Properties). In this article, I’ll share 8 things you need to know about IOI Properties before you invest.

    #1: Stock Symbol

    1

    Ticker Symbol: KLSE: IOIPG / KLSE: 1635
    Market Capitalization: RM 11.07 Billion (29 September 2017)

    Share Price: RM 2.01 (29 September 2017)

    Sector: Property

    Syariah Compliant: Yes

    #2: The Business

    Presently, IOI Properties derives income from three main business divisions. They are:

    • Property Development


      IOI Properties is positioned as a reputable township developer in Malaysia. It is capable of executing development projects where their land sizes are well beyond 100 acres. Its notable projects include Bandar Puchong Jaya, Bandar Putra Kulai, Bandar Putra Segamat, 16 Sierra, Bandar Putra Bangi and Bandar Putra Warisan. 

      In Singapore, IOI Properties is involved in high-end residential and integrated mixed developments. This includes Seascape and the Cape Royale in Sentosa Cove. Meanwhile, in China, IOI Properties has two projects. They are IOI Palm City and IOI Park Bay. Both projects are located in the Fujian Province, China. 

      This division is the largest income contributor to IOI Properties. In 2017, IOI Properties had derived RM 3.71 Billion and RM 1.18 Billion in revenues and operating profits from this division. 

    • Property Investment


      This division derives income from seven key investment properties. They include IOI City Mall in Putrajaya, IOI Mall Puchong, IOI Mall Kulai, 4 Blocks of 12-storey & 21-storey office buildings in Puchong Financial Corporate Centre, IOI City Tower 1 & Tower 2, One and Two IOI Square, and IOI Boulevard. It is the second largest income contributor to IOI Properties as this division contributed RM 302.1 Million and RM 126.5 Million in revenues and operating profits in 2017. 

    • Leisure & Hospitality

      This division derives income from six hospitality properties. They include Putrajaya Marriott Hotel, Four Points by Sheraton Penang, Palm Garden Hotel, Palm Garden Golf Club, Palm Villa Golf & Country Resort and Le Meridien Putrajaya. In 2017, this division has made RM 161.8 Million and RM 15.4 Million in revenues and operating profits, making it the smallest division of IOI Properties.

    #3: The Financials

    Overall, IOI Properties has achieved growth in sales and shareholders’ earnings over the last 5 years. This is attributed to continuous growth in all of its business divisions during the period.

    Returns on equity (ROE) has dropped marginally as the growth in shareholders’ equity of IOI Properties had outpaced its growth in shareholders’ earnings during the period. This is mainly because IOI Properties had substantially increased its shareholders’ equity by completing two separate rights issue exercises on 9 February 2015 and 28 March 2017.

    Figures in RM Million

    Year 2013 2014 2015 2016 2017
    Sales 1,158.7 1,454.4 1,906.4 3,024.9 4,185.3
    Earnings 585.4 889.9 890.7 1,080.0 920.9
    ROE n/a 7.94% 6.63% 6.80% 5.05%

    Source: Annual Reports

  • SGX’s 20 Biggest China-Related Enterprises Returned 39.8% in YTD

    Source: SGX My Gateway
    Date Submitted: 15 Oct 2017
    Views: 2786
    Downloads: 16
    SGX’s 20 Biggest China-Related Enterprises Returned 39.8% in YTD
    • 20 of the biggest and active stocks with a China head office have averaged a market capitalisation-weighted total return of 39.8% in the year to date. This compares with the Shanghai Stock Exchange Composite Index’s (SHCOMP) +8.0% (in SGD terms).
    • The 20 biggest stocks maintain market capitalisation-weighted P/E and P/B ratios of 11.2x and 1.3x respectively, below 17.6x and 1.9x respectively for the SHCOMP. Nine of these stocks maintain higher ROEs than the SHCOMP’s 10.7%.
    • The five best performers among the 20 stocks in the YTD are Delong Holdings, Yangzijiang Shipbuilding, China Sunsine Chemical Holdings, Yanlord Land and China Aviation Oil. They maintain an average ROE of 16.2%.
  • How Smart Beta Strategies Work in the Hong Kong Market

    Source: Liyu Zeng, CFA, Priscilla Luk
    Date Submitted: 05 Oct 2017
    Views: 7663
    Downloads: 45
    In this paper, we analyzed the performance of six single factors (small cap, value, low volatility, momentum, quality, and dividends) in the Hong Kong market from June 30, 2006, to Feb. 28, 2017.
  • Corporate Governance for Asian Publicly Listed Family-Controlled Firms - Full Report

    Source: Tony Tan, DBA, CFA, Fianna Jurdant
    Date Submitted: 26 Sep 2017
    Views: 5241
    Downloads: 105
    There is a gap in the literature concerning regulatory responses and approaches to corporate governance of controlled family firms. This report reviews the literature to develop an overview of the economic landscape of publicly listed family firms in Asia and to demonstrate the importance of these entities to the region and beyond. Another objective is to illustrate the challenges that confront policymakers in developing corporate governance policies relevant to publicly listed family firms. Discussion in the report indicates two significant hurdles for policymakers. First, there is a lack of consensus on a universal definition of a publicly listed family firm. Second, publicly listed family firms should not be perceived as a homogeneous group over which a “one size fits all” corporate governance blanket can be cast.

    The focus of the report then shifts to highlighting how an effective corporate governance system can improve performance and create value by reducing the cost of equity and reducing capital waste. The discussion examines how properties of publicly listed family firms can enhance shareholder wealth or lead to the expropriation of wealth from minority owners. The final objective of the study is to report key observations from a series of case studies spanning 14 Asian economies that cover a range of corporate governance issues central to publicly listed family firms. The case studies provide insight into current practices of Asian publicly listed family firms that may require the attention of policymakers. The issues raised in this report provide the initial building blocks for developing a more extensive road map to underpin a comprehensive analysis. Findings from this analysis can provide the foundation for evidence-based policy recommendations specific to family firms, which are a significant aspect of the Asian economic landscape and a key to the region’s current and future prosperity.
  • How Are Institutional Investors Using ETFs in Asia?

    Source: John Davies, Managing Director, Global Head of Exchange Traded Products
    Date Submitted: 15 Sep 2017
    Views: 1656
    Downloads: 73

    Although selecting ETFs can be challenging due the wide variety of products, they can be used as tactical and strategic tools for asset allocation. Market participants have recently been moving funds from underperforming products into more cost-effective ETFs. The sweet spot appears to be the intersection between active and passive smart beta products.

  • Cinematic Journey of Southeast Asia's Venture Ecosystem

    Source: Victor Chua Kok Hoe (https://www.linkedin.com/in/victor4chua/)
    Date Submitted: 07 Sep 2017
    Views: 1333
    Downloads: 37
    Southeast Asia's venture investing scene is booming, but not without its long history and influence by other regions in Asia. We are seeing a rush of investors from North Asia coming down to Southeast Asia, pushing the ecosystem to a more mature state and enhancing exit opportunities.
  • Selling your REIT – A Framework to Guide you in Coming up with the Right Decision

    Source: Kyith Ng
    Date Submitted: 29 Jun 2017
    Views: 1895
    Downloads: 0

    When we invest, we want to maximize the total returns we get.

    Ideally, this means that we get some decent dividend cash flow yearly and the stock also provides capital appreciation.

    Not all of your stocks end up like that.

    A lot of the time, you end up holding a REIT for years, hoping and hoping that one day it will fulfill its promise and turn from a losing position to break even.

    When your REIT is in a losing position, you might start having second thoughts.

    Some of the REITs you invest in turned around, others do not turn around. You then start saying this REIT is ‘good’, this is ‘not good’.

    The thought of selling might run through your head. However, people tell you that REITs are suppose to be buy and hold investments for the long term.

    This confuses you:

    1. Should you sell the REIT?
    2. Wait for the REIT to recover, while earning the dividends?

    Today, we are going to explore my framework how I decide whether to sell my REITs.

    We will be covering:

    1. Reflecting back to your Original Game Plan
    2. Understanding which part of the Investing Life Cycle you are in
    3. How often to Review your REIT
    4. What should you be considering during the Review
    5. Reflecting back to the sell condition when you purchase
    6. Avoiding the Sunk Cost Fallacy
    7. Do not fall in love with your REIT. Instead….
    8. Building up Competency
  • You could do Everything Right in Managing your Wealth yet still end up Declaring Bankruptcy

    Source: Kyith Ng
    Date Submitted: 29 Jun 2017
    Views: 93
    Downloads: 0

    Right, this couldn’t have happen.

    Yet it did.

    Over the weekend, I listened to a very good interview by Joshua Sheats over at Radical Personal Finance.

    He was at Camp Mustache, which is a gathering of folks who aspired to reach financial independence earlier than most. He chanced upon an interesting conversation with a lady striving towards financial independence but with a unique past.

    You can listen to the interview here. (If you are a podcast Listener do subscribe to his podcast. There are much standard financial planning, wealth management stuff but also alternative stuff such as hacking funeral, insulating your home and investing in ammunition)

    This lady’s situation is unique because from the start, her husband and herself have subscribed to good personal finance information, and practicing them well.

    They lived a very financially concious life and was able to build up a portfolio of 20 real estate properties that provide an income of $4000/mth.

    Yet they still end up filing for bankruptcy and divorce.

  • March 2017 Singapore Savings Bonds SSB gives you 2.38% interest per year over 10 years period

    Source: Kyith Ng
    Date Submitted: 29 Jun 2017
    Views: 80
    Downloads: 0
    Here is a higher yieldingsafe way to save your money that you have no idea when you will need to use it, or your emergency fund.
  • REITs: Turns out Portfolio Rent Reversion Definition Varies from REIT to REIT

    Source: Kyith Ng
    Date Submitted: 29 Jun 2017
    Views: 238
    Downloads: 0

    Inconsistencies in rental revision computation may give investor an over-optimistic or pessimistic impression of the property situation as well as manager’s ability.

    Recently, Prime Grade A focused commercial REIT Keppel REIT (dividend yield 6.3%) made an annoucement regarding the way they compute their rent reversion.

  • Australian Tax Office comes down hard on Taxes paid by Trusts – how this affects the Non-Resident Singapore Investor

    Source: Kyith Ng
    Date Submitted: 29 Jun 2017
    Views: 103
    Downloads: 0
    The Australian Tax Office (ATO) are cracking down on trust structure, and may result in these trusts paying double the tax they are paying now.

    What they are targeting are the stapled securities, used for a long time for commercial property deals. This has allowed the foreign investors to pay a discounted tax rate of 15% rather than the full tax rate of 30%.

  • FSMOne – One Platform that allows you to Manage Stocks, Bonds, Unit Trust, Exchange Traded Funds

    Source: Kyith Ng
    Date Submitted: 29 Jun 2017
    Views: 37
    Downloads: 0

    When I started learning about investing, I started from learning about funds.

    Not from banks  but from online shops such as Fundsupermart and Dollardex.

    When you spend most of your time online, your retailing habits are different from other people.

    I learn about how much more expensive banks charge us for selling units trust‘s.

    I learn about different asset classes, portfolio allocation, geographic diversification, risk, Sharpe ratio from Fundsupermart.

  • About Motorcycles and the Higher Taxes in the 2017 Budget

    Source: Kyith Ng
    Date Submitted: 27 Jun 2017
    Views: 265
    Downloads: 0

    I am not a biker.

    And I am not going to pretend that I am one.

    However, if you would like to read a perspective from one that has a vested interest, and is articulated, yet have a quantitative slant to things, you ought to read Ian Tan’s piece on this issue.

    I always enjoyed his writings. It has a lot of sensibilities about life, as well as the society we lived in. (add his blog to Feedly if you like!)

  • Why do some graduates better adjust to work place and perform better?

    Source: Kyith Ng
    Date Submitted: 27 Jun 2017
    Views: 2245
    Downloads: 0

    How many of you were given a user manual how to be successful at work?

    What are the things that you should do and things you should not do at work?

    This is something that was on my mind some time ago.

    This is especially so for the graduates fresh out of university and going into the working world.

    The transition from being a full time student to a full time employee can be quite a shift.

    However, I noticed that some of the graduates were able to carry themselves better than the others.

  • Building Sustainable Dividend Machines: Key to Sustainable Dividends is Knowledge and Action Plan

    Source: Kyith Ng
    Date Submitted: 27 Jun 2017
    Views: 126
    Downloads: 0

    Late last year, I met up with a new co-worker of mine.

    He recognized me back in office, when he remembered seeing me at a recent Annual General Meeting (AGM) for a company that I invested in.

    So we had a lunch date.

    When I met him for lunch, I noticed he drives a big car, a vehicle that is more fitting for a director than your typical engineer. That puts a question in my head, whether an engineer can get rich working for a long time, or that being a stock investor is able to get us a nice life like that.

    Always curious about another investor’s thought process, I asked him about his investment process.

    And I came away not having a good idea about his investment process.

    He shared with me that he was punting stocks for the longest time in a haphazard manner, until an old timer told him how important dividends are.

    He works hard to understand the businesses, the opportunity that some stocks provides and size up the company by attending AGMs.

    Yet in the countless of investing tales shared, it was littered with many stocks that I doubt I would consider them as dividend stocks, or that they were sold too fast, which feels to me like short term trades.

    What pained me was the stories of the big losses he incurred for investing in some high dividend yielding companies, oil and gas companies.

    If you make a 5% portfolio loss, you need 5.2% gain to make back your capital. If you make a 30% portfolio loss, you need 42.8% gain to make back your capital.

    Having large draw-downs hurt, whether you invest for dividends or not.

  • UMS Maintains a Full Year 6 cents Dividend Payout and an IPT Acquisition of Klaf Engineering

    Source: Kyith Ng
    Date Submitted: 06 Jun 2017
    Views: 113
    Downloads: 0

    UMS Holdings announced their fully year result yesterday.

    Its been sometime since I bought this stock, sold this stock, then bought back again.

    So here is my brief look at the business

    Share Price: $0.67

    Outstanding Number of Shares: 429 mil

    Dividend per share: $0.06 (8.9% Dividend Yield)

    Cash Flow required to pay dividend per share: $25 mil

  • How Malaysia’s East Coast Rail and China’s Future Transportation Strategy impacts Singapore

    Source: Kyith Ng
    Date Submitted: 06 Jun 2017
    Views: 210
    Downloads: 0

    I am a fan of Benjamin Koh at Lighthouse Advisors. Lighthouse Advisors is a value shop for the accredited investors based in Singapore.

    What is great is that Benjamin’s letters to clients (which was embargoed for 1 year) and the public is a tome of knowledge for people like myself learning to invest.

    Through his commentary. most often we learn about accounting frauds or ways to detect irregularities that could show up in the financial statements, or when we think qualitatively. He will cite examples of listed companies in Hong Kong, Singapore or around the region which these irregularities have shown up or caveats can be found. Through his mistakes in investing, we also learn a lot.

    I always believe that a lot of methods have positive expected results over time, failure is more about whether you have went deep enough and understand and execute well.

    Tomes like these readings from these managers, Berkshire Hathaway’s letters are free gems that enables us to tap the knowledge and wisdom of good investors that would have cost tens and thousands of dollars.

    For the accredited investors, you can visit his very clean blog to find out how they carry out their investing, their prospective clients and see if it is a good fit.

  • The Maths behind being Financially Independent with $1 million by Age 40

    Source: Kyith Ng
    Date Submitted: 06 Jun 2017
    Views: 142
    Downloads: 0

    We often hear stories of the people who was able to retire in their 30s and are so envious of their situation.

    They must have rich parents or high income earner. How close to the truth is that?

    I was adding this case study to my previous article where I explore the simple formula to be wealthy (read here)

    We have a group of individuals who may be able to retire early or be financially independent. The idea of being financially independent is that they amassed wealth machine(s) that create adequate wealth cash flow to pay for their current annual expenses for a large part of their lives.

  • Global Testing – That Problematic 9.5% Dividend Yielder

    Source: Kyith Ng
    Date Submitted: 06 Jun 2017
    Views: 71
    Downloads: 0

    I wanted to write something about Global Testing for 1 year plus.

    However, due to blogging circumstances, I keep this aside and didn’t write much about it. There are just so many companies to pen my thoughts about.

    Global Testing have just announced their full year results and declared a $0.10 dividend and a $0.10 capital reduction so I guess let me try to see if I can pen my thoughts.

    Current Share Price: $1.03 – $1.10
    Number of Outstanding Shares: 35.58 million
    Dividend per share: $0.10 (9.7% – 9%)

  • Your Personal Cash Flow Statement – The Complete Guide

    Source: Kyith Ng
    Date Submitted: 06 Jun 2017
    Views: 300
    Downloads: 0

    There are 2 documents, that in my opinion, tells me whether a person or family is operating in a financially healthy manner.

    One of the document is their personal cash flow statement. The other document is their personal net worth statement.

    A personal cash flow statement can provide clarity in your life, and serves as a personal review whether you are managing your life well. It also provides you with an opportunity to re-allocate your cash flow to bring your money in alignment with your goals in life.

    Today, I will focus on:

    1. What is the Personal Cash Flow Statement
    2. Why your Personal Cash Flow Statement is Important
    3. How can you create your Personal Cash Flow Statement
    4. Tools that can help you track your Cash Flow on the Fly and show your Cash Flow Status on Demand
  • Managing and Growing Money the Feminine Way – the Future is Female

    Source: Kyith Ng
    Date Submitted: 04 Jun 2017
    Views: 193
    Downloads: 0

    She looked at the two of us, not knowing what she should do.

    When you have her portfolio of problems, it is not an easy situation to get out of.  She was estranged from her mother, who thinks that since she is the only one who went all the way to university, she should contribute the most to the family allowance.

    It would be great if she could share these family difficulties with her boyfriend.

    As it turns out, her boyfriend have his own set of issues. He couldn’t say no to the finer things in life. Much of his income was spent on keeping up with the latest gadgets and toys.

    Whenever she tells him about how she is struggling to talk sense to her mother, the boyfriend could offer no good solutions.

    2 months later, her boyfriend reveals that he have $5000 in credit card debt. She is angry but at the same time she cannot bring herself to break it off.

    After all they applied for a BTO and it is due soon. She not only have to worry about the upcoming renovation but also the wedding.

    That is going to be a minefield considering their less than stellar relationship with her parents.

    Deep down, she has so much question marks over how she is to juggle with so much things. It would be great if she have someone to share these money problems with.

  • My 23 Insurance Philosophy (revised after reflecting on the past 10 years )

    Source: Kyith Ng
    Date Submitted: 04 Jun 2017
    Views: 111
    Downloads: 0

    Have you wonder if you planned something out, whether you are doing things the right way?

    12 years ago, I had the idea how I could plan my insurance protection by doing it myself.

    I executed it.

    There were not much resources then in Singapore and the traditional way was to listen and buy what your insurance adviser recommended.

    These days, readers like yourself are more aware on the different forms of insurance. There are insurance resources out there. This makes DIY Planning easier.

    Over the years,  I met with more planners, seen more cases studies, did more numbers and I realize I was wrong about some things and right about others.

    Insurance is an important aspect of our lives and more people spend less time to think about it then they should.

    Not planning it well causes possibly future heartaches and also on going heartaches.

    This post shares with you what I learn along the way, how my philosophy and plans have shifted, and going forward. I will be covering:

    1. who influence my thought process in this area
    2. my current insurance protection plan
    3. what is a personal risk register
    4. balance between spending a lot versus spending little
    5. thoughts on disability income, early and late critical illness, term life versus whole life
    6. using insurance to hedge against overseas death taxes in investment
    7. the economic bias of advisers
    8. good advisers who I trust and work with

    The takeaway for you is to invoke thoughts which leads to actions if you realize you don’t have a philosophy, don’t have a plan, have no idea about your plan.

  • Singapore Savings Bonds SSB April 2017 Issue gives you 2.27% interest per year over 10 years

    Source: Kyith Ng
    Date Submitted: 04 Jun 2017
    Views: 181
    Downloads: 0

    Here is a higher yieldingsafe way to save your money that you have no idea when you will need to use it, or your emergency fund.

    The Apr 2017’s SSB bonds yield an interest rate of 2.27%/yr for the next 10 years. You can apply through ATM or Internet Banking via the three banks (UOB,OCBC, DBS)

    $10,000 will grow to $12,324 in 10 years.

    This bond is backed by the Singapore Government and its available to Singaporeans.

  • How Much do you value having Options in Life?

    Source: Kyith Ng
    Date Submitted: 04 Jun 2017
    Views: 71
    Downloads: 0

    A few days ago, I was alerted to a comment on my Facebook about a blog post.

    The author of the post came to a conclusion that it is better to use cash to pay down our mortgage, instead of using our government forced savings, the CPF OA account.

    I tried to understand why this person who shared this post was not very happy. Turns out, according to him, there is not just one scenario you need to think about. There is some in-sensibilities in that, some savings that could achieve, perhaps makes less of an impact in real world application.

    He felt there should be greater explanation.

    Writing blog articles and giving advice is not an easy job.

    Sometimes you have to think about who are your niche audience. Your niche audience might prefer you to abstract the details, and just tell them: which is better? A or B?

    If I look at the numbers to use cash to pay down our mortgage, there is little dispute.  All else being equal, you should use cash to pay for your home mortgage. Your cash earns close to nothing, and paying off this 2.6% interest mortgage and letting your CPF OA accumulate at 2.5% interest looks to be sensible.

  • Why Fresh Water is Such an Important Commodity – Something to ponder about with the Singapore Budget annoucement

    Source: Kyith Ng
    Date Submitted: 04 Jun 2017
    Views: 8
    Downloads: 0

    One of the changes announced in the 2017 Singapore budget was that we would be paying a higher tariff if we do not conserve water.

    This is especially so for those businesses or household who spends more than 40 cubic meters of water.

  • TDSR, Seller’s Stamp Duty, HDB Resale Grant Changes Aimed at Helping Singaporeans Cushion an Increasing Challenging Singapore Outlook

    Source: Kyith Ng
    Date Submitted: 02 Jun 2017
    Views: 15
    Downloads: 0

    There are a slew of changes on buying and selling properties announced in this 3 short months of 2017.

    The way we should look at these policies is that the government have a few levers that they can pull and push to stimulate on the demand side or the supply side.

    There are various niche market segments as well.

    Here are some of my thoughts.

  • CPF Talk Review – No Unique Solutions, Rich Assets vs Good Assets, Opening a CPF SA for your baby, Paying off Home Loans Earlier and Niche Rule of Thumbs

    Source: Kyith Ng
    Date Submitted: 02 Jun 2017
    Views: 57
    Downloads: 0

    CPF is many things to Singaporeans, and we should be concern about how we can make sense of the CPF, and manage the CPF more efficiently.

    We conducted our BIGS LIVE on 16 Mar 2017, centering on making sense of your CPF and we have a very healthy turned out. My friends Chris from Tree of ProsperityBudget Babe and Uncle Createwealth888 provide us with a glimpse of how they live with CPF and we all learn many nuances of the decision making they made that took them to where they are, or where they are heading towards.

    This turned out to be one of the more engaging sessions and frankly I am happy that more Singaporeans are interested on how to manage their CPF better.

    If there is one takeaway is that many want to ensure that they are taking the right steps at an early age, or before they make any big decisions to ensure it is correct. The best way to do this in my opinion is to listen to a few perspectives, to see if you have missed out any scenario considerations.

    There are some questions asked, and I wish to briefly address them, but I would also briefly highlight some of my takeaways.

  • Costs Compounds Over Time in Wealth Building. Critically Minimize Your Costs

    Source: Kyith Ng
    Date Submitted: 30 May 2017
    Views: 1129
    Downloads: 0

    When we talked about the power of compounding, we usually talked about how your returns compound.

    On the other side of the coin, which is seldom talked about, is that cost compounds as well.

    There is a distinct difference between returns and cost in your different wealth building method: Costs are definitely incurred but how much you earned in Returns vary.

  • The Expected Return Model – How You can Refine Investment Decisions, Prospect Stocks Clearly, and Sleep Better at Night

    Source: Kyith Ng
    Date Submitted: 30 May 2017
    Views: 167
    Downloads: 0

    Back when I was still figuring out all these investment stuff, I always have some questions that I couldn’t find in books or the people I listened to.

    Some of the questions that often bugs me was:

    1. Should I buy and hold investments for a long time?
    2. When some event happen, that affects my investments, how should my plan deviate? Should I still hold on? Should I sell or buy more?
    3. How should I size my positions in an investment portfolio, such that I do not get a large part of my capital impaired, yet not be too diversified and make my effort not worth it?

    Overtime, I found a metric to aggregate most of the quantitative and qualitative part of actively managed individual stock investing that allow me to answer the above questions.

    And when I prospect investments, all the information are aggregated to this metric for me to evaluate should I purchase, sell, hold on. It allows me to compare against other prospective investment.

    This metric is the Expected Return on an Investment.

    This article is dealing more with actively managed individual stock investing, but I think this metric is applicable to other forms of financial assets as well.

  • How Interest Rate Changes Affect REITs

    Source: Kyith Ng
    Date Submitted: 30 May 2017
    Views: 2037
    Downloads: 0

    Real estate investment trusts (REIT) is a class of stock investment that many believe are very much affected by global interest rate changes.

    For the past 35 years, the world has been in an environment where the interest rate is getting lower and lower. There are periods where interest rate do rose, however, the trend is down.

    For the past 5 years, there have been on and off voices that warn us that interest rate is about to rise.

    Bonds, which are interest rate sensitive, and pseudo-bond like instruments such as MLPs, REITs, business trusts, highly leveraged stocks, utilities are not going to fare well.

  • You don’t need an Innovative Term Insurance on your Credit Card Debt (PPI). You need to clear your Credit Card Debt

    Source: Kyith Ng
    Date Submitted: 30 May 2017
    Views: 20
    Downloads: 0

    We should be wary about some of the products sold by banks.

    This week, I got a call from UOB Customer Service. Being a customer of their bank, this was not surprising.

    I was expecting them to extend some personal loan or investment plan. This time it is a bit different.

    The lady explains this new feature for my UOB One credit card.

    How it works is that if I did not pay off my credit card bill on time on the due date, CreditSure will protect me in case something happens to me, this insurance will provide an amount equivalent to the amount of credit card debt owed.

    If you go to UOB CreditSure page, you would be able to review the details.

    The premiums for this plan is $0.55 on every $100 of credit card loan incurred and you get coverage up to $200,000.

    The lady, upon hearing I was so interested in understanding the product wanted to sign me up until I realize this plan is a good to have but for most probably recommended not to enroll.

  • Singapore Savings Bonds SSB May 2017 Issue gives you 2.32% interest per year over 10 years

    Source: Kyith Ng
    Date Submitted: 30 May 2017
    Views: 104
    Downloads: 0

    Here is a higher yieldingsafe way to save your money that you have no idea when you will need to use it, or your emergency fund.

    Singapore Short Term High Yield Government Bonds May 2017

    The Apr 2017’s SSB bonds yield an interest rate of 2.32%/yr for the next 10 years. You can apply through ATM or Internet Banking via the three banks (UOB,OCBC, DBS)

    $10,000 will grow to $12,373 in 10 years.

    This bond is backed by the Singapore Government and its available to Singaporeans.

  • Does your Insurance Saving Plans (Endowment) give you 3 to 5% returns?

    Source: Kyith Ng
    Date Submitted: 30 May 2017
    Views: 24
    Downloads: 0

    Insurance companies say that you can achieve higher savings returns from endowment, that it is a long-term savings strategy. Are they as what they touted to be?

    Insurance savings plans or Endowment plans are plans designed by insurance companies with an objective to provide and meet long-term saving goals.

    The assured (in this case you, or someone) pays the insurance company a fixed sum of money monthly, quarterly or yearly, or a one-time amount.

  • How Much should You Save Each Month in Your 20s?

    Source: Kyith Ng
    Date Submitted: 30 May 2017
    Views: 78
    Downloads: 0

    This is one question that I get a lot from people I interact with for the first time.

    This is especially good if it comes from a person just about to start work, or have started work for one or two years.

    However, when they ask this question, sometimes that is not the question that they are trying to find out.

    The question they want to find out: I want to spend but I want to do the sensible thing, just tell me how much percentage of my take home pay I should save, so that I look like I am somewhat of a responsible person.

    Most people are not enlightened how powerful building wealth can be, and to most, because they cannot see the potential, the priority to build wealth is very low among their immediate goals.

  • HDB Lease does Expire – How you can Win with your HDB Flats

    Source: Kyith Ng
    Date Submitted: 30 May 2017
    Views: 148
    Downloads: 0

    A portion of Singaporeans got a jolt these few weeks when National Development Minister Lawrence Wong said that not all the old HDB flats are eligible for Selective En bloc Redevelopment Scheme (Sers).

    Under SERS, the HDB acquires ageing blocks for redevelopment, compensates residents at market rates for their old flats and lets them buy new units nearby at subsidized rates.

    What shocked many Singaporeans is that they never grasp this concept of leasehold versus freehold. Leasehold assets are essentially assets lease to you for x years and when that time comes the value of your assets is $0.  Freehold in comparison gives you ownership of the land or things on it.

    They always have an idea that when they put money down on a property, they own that property.

    Not just that, the property can be handed to the next generation as a bequest. The advantage in Singapore versus other countries such as USA and UK is that there are no estate duty or death tax. For example if you own assets worth $500,000 in USA, sans $60,000 that are exempted from taxes, you will be taxed ($500,000 – $60,000) x 50% = $220,000.

    This is a great advantage to have.

    When this concept gets challenged, there is uncertainty. When there is uncertainty, there is fear. People have a lot of vested interests and now there is a fear that this could unravel.

  • How much can A Young Singaporean Adult Earn in the Next 10 Years?

    Source: Kyith Ng
    Date Submitted: 30 May 2017
    Views: 137
    Downloads: 0

    One of the biggest uncertainty for a young adult is that you are unsure where your career will take you.

    Or whether you will stay in that career at all.

    Many people took a particular route and realize that they hate their job. This is why sometimes I feel doing 2 years of work in your industry before taking a degree might calibrate your university decision better.

    As we start working, many look upon their first paycheck as their first reward after studying for so much. There are expectations how much they should earn.

    But many failed to take a step back and realize how much they would earn in their lifetime.

    Most of us underestimate the amount.

    I know I did.

    I never thought of how much money that will enter my management for the past 14 years when I started out.

  • Rickmers Martime Winds Down. My thoughts on Position Sizing, the True Value of Ships and Prospect Theory

    Source: Kyith Ng
    Date Submitted: 30 May 2017
    Views: 70
    Downloads: 0

    As human beings we tend to be risk seeking(gungho in taking on risks) when we should be risk adverse (afraid of taking risk) and vice versa, often at the wrong time.

    In the case of Rickmers Maritime, I am not sure which is the case.

    Rickmers Maritime is a business trust that I wrote about in the past that operates a collection of container ships. They were charter out during the good times at rates of US$25,000/day and now that the charter is coming to an end, the prevailing charter rates is closer to US$5,000/day.

    This resulted in a plunge in cash flow, and the repercussion is that they are supposed to repay $200 mil in loan in 2017 and couldn’t get the debts to be refinance because the discounted cash flow of the ships are much less than in the past, and to the potential lenders, it does not warrant to lend them that much.

  • How Volatility relates to the Financial Markets and Life

    Source: Kyith Ng
    Date Submitted: 30 May 2017
    Views: 341
    Downloads: 0

    One discovery recently is this podcast that spun out of Real Vision, a paid online TV program that brings across some of the brightest minds in finance.

    Titled Adventures in Finance, they tried to explain and deconstruct one popular or less discussed phenomenon, financial concepts to listener.

  • Is Adulting a New Concept? No it is Not… But it is Absolutely Bloody Necessary

    Source: Kyith Ng
    Date Submitted: 27 May 2017
    Views: 26
    Downloads: 0

    Millennials draw a lot of flak for the idiotic things that they come up with.

    And for some these are grossly misunderstood.

    They create a lot of trends that the Gen X will face palm and wonder why things are so different for how they used to do things.

    Well things are different but it is not because the millennials are very special. We just grow up in a period where social marketing happens to be ubiquitous and more often because touch points are higher, more ideas flow better.

    One of the urban code that seems popular nowadays is Adulting.

    When I first get to know this term, I thought that the younglings nowadays want to get married early and practice extra marital affairs on a very recurring basis.

    Then I realize I was slightly wrong. Adulting refers to the act of being more an adult than not being one. It is also the apprenticeship to acquire the skills that you require to become a better adult.

    Is Adulting a new concept? Of course not!

    Your parents and grandparents apprentice to acquire this skills at a much earlier age.

  • Your Personal Net Worth Statement – The Complete Guide

    Source: Kyith Ng
    Date Submitted: 27 May 2017
    Views: 202
    Downloads: 0

    There are 2 documents that, in my opinion, tells me whether a person or family is operating in a sound manner.

    One document is the personal cash flow statement. The other document is their personal net worth statement.

    In this comprehensive guide, I have explain why the cash flow statement is important, and how you could go about creating your personal cash flow statement.

    Your personal net worth statement is just as important and in this article, we will look into how you can create your personal net worth statement.

  • Singapore Savings Bonds SSB June 2017 Issue gives you 2.16% interest per year over 10 years

    Source: Kyith Ng
    Date Submitted: 27 May 2017
    Views: 25
    Downloads: 0

    Here is a higher yieldingsafe way to save your money that you have no idea when you will need to use it, or your emergency fund.

    The Apr 2017’s SSB bonds yield an interest rate of 2.16%/yr for the next 10 years. You can apply through ATM or Internet Banking via the three banks (UOB,OCBC, DBS)

    $10,000 will grow to $12,373 in 10 years.

    This bond is backed by the Singapore Government and its available to Singaporeans.

  • How to Investing with Less Stress – BIGS Live

    Source: Kyith Ng
    Date Submitted: 27 May 2017
    Views: 63
    Downloads: 0

    I believe that building wealth is a worthwhile goal to pursue.

    Your wealth built up, at various stages augments a purposeful life that you live.

    Many millennials want a wealth machine to augment their existing working income. They save money for the financial security. They do not have a clear direction where they are headed in their lives, but in the mean time, having money built is more prudent than not having any.

  • #4 Key Ingredient to Wealth: Curating your Environment and Influences

    Source: Kyith Ng
    Date Submitted: 27 May 2017
    Views: 19
    Downloads: 0

    The people that you stick with, or are stuck with, have a massive influence over whether your build wealth extraordinary well, or cause great wealth destruction.

    In my opinion, there are 4 key ingredients to building wealth. These has less to do with money itself.

    They are:

    1. Your motivation, determination and the amount of grit you have
    2. Your ability to acquire knowledge and wisdom in your pursuit of the goal
    3. Creating effective Systems, Processes and Habits that lets you execute the actions that builds wealth
    4. Curating your Environment and Influences

    Today, we are going to talk to the #4 factor.

  • How you can try to get your Disputed Insurance Policy Contract Untangled – Financial Dispute Resolution

    Source: Kyith Ng
    Date Submitted: 24 May 2017
    Views: 62
    Downloads: 0

    Kyith: Hey, today, I will be bringing to you guys and gals something that is not often discussed on Investment Moats. We talked a lot about insurance but there are some aspects of insurance that I am not in a good position to look into. One area is, what happens when you get tangled in some form of mis-selling by an insurance adviser and you would like to seek recourse?

    The folks at Clearly Surely approached me for a guest post and I thought of using this opportunity to get some value for you guys in something that may be of value. This is a real-life case study of a policy dispute. While the outcome may not be what we, as consumers desire, I like that this case study shows us the problem, the process and the reality of how easy or difficult we can achieve the outcome we want.

    I came away reading this case study feeling rather demoralized. It's not easy to read the fine print. There are those that are diligent enough to do it, yet majority trusts their adviser more. Whether you read or do not read, the odds are very much stacked against you as the consumer. The rule of thumb in this instance is, declare and be transparent, rather than deliberate whether this will increase your premium or does this fall into the area that is inconsequential.

  • Would QAF Rise Again?

    Source: Kyith Ng
    Date Submitted: 24 May 2017
    Views: 105
    Downloads: 0
    Kyith: I was contacted by the folks at Investing Note whether I let my readers know about this splendid analysis on QAF.  I obliged since my blog promotes investors who takes things into their own hands and equip themselves with business prospecting skills. This is good for you guys.
  • The Complete Personal Budgeting Guide

    Source: Kyith Ng
    Date Submitted: 24 May 2017
    Views: 66
    Downloads: 0

    There are 2 ways to look at budgeting.

    The first way is that you should focus on earning more. The more money you earn, the less you have to worry about the nitty gritty aspect of money. Earn so much more, such that you do not have to worry if you spend $500 on food or $1000 on food.

    The second way is that building wealth starts from being aware of the small things. If you cannot manage a small sum of money, how can you cope when you have more money?

    Both are not wrong.

    However, both ways can be describe as some sort of justification why we should not do the other.

  • If you have too much Insecurities and Personal Problems, Money is Often used to Fill these Holes

    Source: Kyith Ng
    Date Submitted: 24 May 2017
    Views: 18
    Downloads: 0

    Eating has always been something that is less of a concern for me.

    There the the people that live to eat. And then there are the people that eat to live. I belong to the latter group. This means that I do not have an acquired taste or that I am picky with food.

    As long as there are adequate quantity and the food is not prepared in a very poor manner (I have high tolerance for poorly cooked stuff trust me)

    If you have auto-immune problems like myself, it helps to take on your problem as a project, and change the portfolio of food that you consume. This may nip your problem totally, or in a lesser extent improve your quality of life. I have experimented and shifted what I consume wildly but systematically in the past. It helps a lot that I eat to live and that I eat a predominately low carbohydrate meal therefore I do not feel hungry often. (There is a hormone called ghrelin in your stomach that triggers the signal that tells you its time to feed. Carbohydrates suppressed ghrelin fast but also rebounds fast. This means that while it makes you feel full, it does keep you satiated for long.) You have to eat adequately in the amount of calories as well.

  • Prospect Business the Proper Way with Investment Quadrant 2.0

    Source: Kyith Ng
    Date Submitted: 24 May 2017
    Views: 144
    Downloads: 0

    My choice of wealth machine is mainly through individual stock prospecting.

    I don’t call it value investing, growth investing. I am a pugilist learning the art of what generates sustainable positive expected return.

    What I learn that works is proper portfolio management, risk assessment, business prospecting, valuation, momentum investing.

    My style is somewhat like this, and it is hard for me to impart to others. I am also one person, so I have limited bandwidth to come up with materials to teach.

    I am also shy and don’t think I am very adequate to be considered a teacher.

    For those who wish to learn, I try to bring to you some materials and courses that could help you along the way.

  • Of Optionetics questionable business

    Source: Kyith Ng
    Date Submitted: 31 Jan 2017
    Views: 164
    Downloads: 0
    I always thought that comparing Clement Chang’s options courses to that of Optionetics, it sounds more like selling you koyok then the real skills needed for options trading. Well i could be very wrong. Here is an interested article covering the latest acquisition by OptionsXpress of George Fontanills’ Optionetics.It makes me really feel all these courses are selling hope.
  • David Rosenborg:Bet on Commodities

    Source: Kyith Ng
    Date Submitted: 31 Jan 2017
    Views: 252
    Downloads: 0
    ANOTHER REASON TO BE BULLISH ON COMMODITIES It’s called trade protectionism. First came the U.S. tariffs on Chinese-made tires a few weeks ago. Then lat week we saw the EU impose anti-dumping duties of nearly 40% on imports of steel pipe from guess where? China. And now we hear out of Australia that its foreign investment regulator wants to impose 15% caps for global purchases of the country’s large companies.
  • What are Negative and Positive Divergence?

    Source: Kyith Ng
    Date Submitted: 31 Jan 2017
    Views: 114
    Downloads: 0
    Here is a great primer article on what are divergences from Stock Charts that would aid your understanding on the subject.
  • Trend Watch:Weekly Update for 04 Oct ’09 $Spy $Eem $Ews

    Source: Kyith Ng
    Date Submitted: 31 Jan 2017
    Views: 122
    Downloads: 0
    We finally got some short term correction last week. The question is whether we will get a strong bounce this week or not.
  • Spanish Banks:A huge consipiracy to hide solvency?

    Source: Kyith Ng
    Date Submitted: 31 Jan 2017
    Views: 159
    Downloads: 0
    From the Financial Times: Whether the Spanish banks are hiding their losses is a major debate going on in the blogosphere and has been detailed at length in the Financial Times. The stakes are very high – this is a debate about the stability of the Eurozone and possibly of Europe itself.
  • Signs that a rally might not signal a bull market

    Source: Kyith Ng
    Date Submitted: 31 Jan 2017
    Views: 101
    Downloads: 0
    dShort.com have a good chart that shows the current bear and rally vs another major bear market. that is the inflation ridden 1970s bear.
  • Genius Prediction:Dollar to halve vs Yen.Chui??

    Source: Kyith Ng
    Date Submitted: 31 Jan 2017
    Views: 146
    Downloads: 0
    Dollar to Hit 50 Yen, Cease as Reserve, Sumitomo Says Oct. 15 (Bloomberg) — The dollar may drop to 50 yen next year and eventually lose its role as the global reserve currency, Sumitomo Mitsui Banking Corp.’s chief strategist said, citing trading patterns and a likely double dip in the U.S. economy.
  • Yield Watch: REITs added to Dividend Stock tracker

    Source: Kyith Ng
    Date Submitted: 31 Jan 2017
    Views: 360
    Downloads: 0
    My revamp of my dividend stock tracker is underway. This week i have added the majority of the REITs listed on the SGX to my tracker. My tracker is update nightly so do tune in for a quick glance of latest SGX stocks’ yield What you can do now is track the REITs according to their category and compare against one another based on their fundamentals: 1. COM – Commercial REITs 2. HEA – Healthcare REITs 3. IND – Industrial REITs 4. RET – Retail REITS 5. HOS – Housing and hospitality REITs I have still some way to go so what is missing are the hospitality reits and commercial ones.
  • The signs that the US economy might not have recovered well

    Source: Kyith Ng
    Date Submitted: 31 Jan 2017
    Views: 128
    Downloads: 0
    In an application for an administrative job, the recruiter received 500 entries: 500 applicants came in a day. To have had any chance one needed to be at the top of the stack. In that regard, those looking for a job should note how it can help to go straight to the company website rather than fax or email a résumé. The job in question was simply for an administrative assistant. Responsibilities included data entry, assembling paperwork and making copies. Yet look at what the pool of applicants contained.
  • Trend Watch:Weekly Review 01 Nov ’09

    Source: Kyith Ng
    Date Submitted: 31 Jan 2017
    Views: 142
    Downloads: 0
    We finally see some big correction this past week. However, I fear that this could amount to something bigger. I have been commenting for the past 2 Trend Watch posts that the negative divergence and the ascending wedge pattern should eventually see more downside. The higher it climbs the bigger the downside.
  • Trading Log:Straits Asia Trade Review

    Source: Kyith Ng
    Date Submitted: 31 Jan 2017
    Views: 148
    Downloads: 0
    Sometimes you can rant about why there aren’t systematic trading stops on the SGX. These nifty perks enables u to get out with how much you want to lose. but in the case of my straits asia trade, you really hate it when u violated your stop loss.
  • What matters is how much you have invested when you make money and when you lose money

    Source: Kyith Ng
    Date Submitted: 31 Jan 2017
    Views: 98
    Downloads: 0
    My friend Melvin always tells me its great to make money no matter how little you make. I think that’s partially true. The number 1 rule is not to lose money. The number 2 rule is not to forget the first rule. I would like to add another permutation to this. What matters is how much money you are invested in a good trade and how much little money you are invested in a bad trade. Don’t understand this? Perhaps this case study is best.
  • Trend Watch:Weekly update 8 Nov ’09 $EEM $GDX $SPY

    Source: Kyith Ng
    Date Submitted: 31 Jan 2017
    Views: 220
    Downloads: 0
    This week we have the response to a correction and to put things simply, we got some relieve upward move where we might be in for an important move next week.
  • David Rosenborg:Unemployment may go to 13%

    Source: Kyith Ng
    Date Submitted: 31 Jan 2017
    Views: 423
    Downloads: 0
    There are serious structural issues undermining the U.S. labour market as companies continue to adjust their order books, production schedules and staffing requirements to a semi-permanently impaired credit backdrop. The bottom line is that the level of credit per unit of GDP is going to be much, much lower in the future than has been the case in the last two decades. While we may be getting close to a bottom in terms of employment, the jobless rate is very likely going to be climbing much further in the future due to the secular dynamics within the labour market that need to be discussed.
  • John Paulson’s Hedge fund made 20 billion from disaster. 8 tips how you can do that next time.

    Source: Kyith Ng
    Date Submitted: 31 Jan 2017
    Views: 269
    Downloads: 0
    Greg Zuckerman of the WSJ has written a book on how hedge fund manager John Paulson made $20 billion in the housing collapse (“The Greatest Trade Ever”).
  • The Problem with Dividends

    Source: Kyith Ng
    Date Submitted: 31 Jan 2017
    Views: 345
    Downloads: 0
    To paraphrase Einstein, “matter cannot be created or destroyed,” yet this fundamental tenet seems to be ignored when discussing dividends. Despite the popularity of dividend-paying stocks, serious analysis dictates that dividends are a net drain of company enterprise value. Why are we so confused about dividends? There seems to be a misunderstanding of enterprise value and tax-effect because dividend payments by their very nature have a negative expected return.
  • Rosenborg:Why this is not the beginning of another secular bull market

    Source: Kyith Ng
    Date Submitted: 31 Jan 2017
    Views: 151
    Downloads: 0
    David Rosenborg doesn’t think we are in a secular bull market. This is either gonna make him more famous or gonna make him look pretty stupid.
  • Microsoft opens a new front in its battle with Google

    Source: Kyith Ng
    Date Submitted: 31 Jan 2017
    Views: 207
    Downloads: 0
    EVEN technology pundits can sometimes be right. Jason Calacanis, an entrepreneur and noted agent provocateur, recently argued that there is a simple solution to the woes of both Microsoft and big media companies. The world’s largest software firm should pay Time Warner, News Corporation and others firms to block Google, the search giant, from indexing their content-and make it searchable exclusively through Bing, Microsoft’s new search service. Media companies would thus get badly needed cash and Bing a chance to gain market share from Google.
  • Chinese firms are making and exporting ever more suspect phones

    Source: Kyith Ng
    Date Submitted: 31 Jan 2017
    Views: 158
    Downloads: 0
    CHINESE consumers appear fixated with Apple’s iconic iPhone. It draws throngs of eager buyers in Shanghai’s Xujiahui computer market. Similarly, at the Canton Trade Fair in October, vendors hawking familiar-looking silver and black slabs were convulsed in crowds, in sharp contrast to the deserted booths of rival brands, where lonely salesmen slurped disconsolately at noodles. So how can it be that China Unicom has seen dismal initial sales under its exclusive arrangement to sell the iPhone in China?
  • The Dubai Situation:Coming at a shit time or just perfect timing?

    Source: Kyith Ng
    Date Submitted: 30 Jan 2017
    Views: 146
    Downloads: 0
    I really should be quite piss with myself for the outstanding timing I can get myself into. I have publicly stated how I think the 5-year trend is getting quite toppish for that time scale and I am playing more cautiously.
  • Yield Watch:Will my First REIT please farking come down!

    Source: Kyith Ng
    Date Submitted: 30 Jan 2017
    Views: 258
    Downloads: 0
    This may sound a bit pleading but I gotta say that I wish I got First REIT when it was at 40cents, now I wish I had it at 60 cents!
  • Goldman Sachs: Like Working with the Mob

    Source: Kyith Ng
    Date Submitted: 30 Jan 2017
    Views: 102
    Downloads: 0
    Lloyd Blankfein—who was born poor in the South Bronx, put himself through Harvard, and became the C.E.O. of Goldman Sachs in 2006, after 24 years at the firm—is a history buff, a lawyer, a wordsmith, and something of an armchair philosopher. On a Thursday in October—the very day when the firm announced it had made $8.4 billion in profits so far this year—he speculates whether Goldman would have survived the financial conflagration in the fall of 2008 entirely on its own, without any kind of help, implicit or explicit, from the government. “I thought we would, but it was a hell of a higher risk than I was happy with,” he says, sitting in his 30th-floor office in Goldman’s old headquarters, at 85 Broad Street, in Lower Manhattan. “As a result of actions taken [by the government], we were better off than we otherwise would have been. Was it dispositive? I don’t know. I don’t think so … but I don’t know.”
  • De Beers moves shows that Diamond market remain weak

    Source: Kyith Ng
    Date Submitted: 30 Jan 2017
    Views: 141
    Downloads: 0
    I still hold Sarin, although not as much. The commodities have recovered a fair bit but Diamond industry is still wack: JOHANNESBURG – De Beers, ranked No 1 miner of rough diamonds, has confirmed ongoing speculation that it is actively seeking additional funding, of around US$1bn, from its three shareholders. If that amount is provided, by way of loans or fresh equity, the proportional contribution would be US$450m from Anglo American, US$400m from the Oppenheimer family, and US$150m from the Botswana government.
  • Yield Watch:A Substantial fall in SPH. Worth the pick up?

    Source: Kyith Ng
    Date Submitted: 30 Jan 2017
    Views: 135
    Downloads: 0
    Nothing of note for a day where market continues to be directionless. However, some of you might want to see if you wanna pick up SPH after its 5.7% fall.
  • Trading Log:Olam Review – Wait till I sold of at a profit then congratulate me

    Source: Kyith Ng
    Date Submitted: 30 Jan 2017
    Views: 260
    Downloads: 0
    This week’s great lesson turn out to be my Olam trade. I entered this trade looking for an upside target of 2.97. It would seem an achievable target as my entry point at 2.69 is near where the trend lines congregate. MACD looks to be putting in a nice cross for some short term uptrend.
  • Trend Watch:Could this be the consolidation? $SPY $EWS

    Source: Kyith Ng
    Date Submitted: 30 Jan 2017
    Views: 143
    Downloads: 0
    We been talking about a change in long term trend or probably a long overdue correction but i wonder if the recent non direction will actually be the short term correction that worked off the overbought levels.
  • Dennis Gartman:Greece taking the wrong direction

    Source: Kyith Ng
    Date Submitted: 30 Jan 2017
    Views: 139
    Downloads: 0
    Moving to Europe, Greece is in trouble and the speech made yesterday by the rather overtly leftward leaning Prime Minister, Mr. Papandreou, was disconcerting to say the very least. At every turn, when the Prime Minister might have drifted toward the economic centre, he drifted farther and farther to the Left instead. Where Ireland seems intent upon dealing properly with its budgetary problems by cutting spending materially and raising taxes marginally, Greece instead is cutting spending hardly at all and is raising taxes almost solely upon the nation’s wealthy to confiscatory levels. This really is utter economic nonsense.
  • Lloyd’s, ‘RBS of 15 Years Ago,’ Teaches the banks of today a lesson

    Source: Kyith Ng
    Date Submitted: 30 Jan 2017
    Views: 184
    Downloads: 0
    Lloyd’s of London, the 321-year-old insurance market almost destroyed by a speculative boom and bust two decades ago, is thriving, offering lessons to lenders such as Royal Bank of Scotland Group Plc in how to survive a crisis.
  • A Guide to Dividend Investing in Singapore Telecom Stocks

    Source: Kyith Ng
    Date Submitted: 30 Jan 2017
    Views: 241
    Downloads: 0
    The thing about dividend investing is that there is no fix rule used to evaluate all dividend stocks. At the end of the day, dividend stocks are still stocks and they are affected by the same rules as all other stocks.
  • Yield Watch:Good Day for Suntec REIT

    Source: Kyith Ng
    Date Submitted: 30 Jan 2017
    Views: 148
    Downloads: 0
    Gotta say that cause of work i missed out on an anticipated trade for Suntec REIT. Moved up quite well today. This end of the year work year can be a bitch to an investor like me who is still working hard.
  • Next part of Apple’s domination plan:TV Streaming through iTunes

    Source: Kyith Ng
    Date Submitted: 30 Jan 2017
    Views: 137
    Downloads: 0
    It looks like Apple is going to leverage on how they change the mp3 business by trying to tie up with cable tv networks to provide content through iTunes. I think what they are trying to do is making iTunes an entertainment operating system in itself.
  • The 3 telcos dividend yield may not look too bright

    Source: Kyith Ng
    Date Submitted: 29 Jan 2017
    Views: 151
    Downloads: 0
    Had a nice chat with Suan Wei today regarding telcos in Singapore and did some reading up on Verizon, At&T, China Mobile, Vodafone and NTT Docomo’s annual report.
  • Kotok of Cumberland:Sovereign Debt is main 2010 theme

    Source: Kyith Ng
    Date Submitted: 29 Jan 2017
    Views: 151
    Downloads: 0
    Abstract: Sovereign debt is likely to be the big headline issue for 2010. This commentary will look at some debt-related issues of Greece and California in their two respective currency zones and then discuss our view of sovereign debt markets for 2010, particularly with respect to the US dollar and euro currency zones. Some strategy guidance for portfolio management of debt will wrap things up.
  • What Rising Interest Rates might mean for the markets

    Source: Kyith Ng
    Date Submitted: 29 Jan 2017
    Views: 152
    Downloads: 0
    Here is a good video countering what we seem to hear alot about FED Rates rising and its bad for the stock market. Although the fundamentals are not well, potenial rising rates might signal a good run in equities
  • The impact of VOIP on the 3 Singapore Telcos

    Source: Kyith Ng
    Date Submitted: 29 Jan 2017
    Views: 150
    Downloads: 0
    This is a continuation on my guide to dividend investing with the 3 Singapore Telcos. Here we will see that VOIP might be an inevitable situation that will cannibalize Singtel Starhub and M1’s voice revenue stream
  • Singapore Telecoms:Starhub’s Backhaul among most advance in the world

    Source: Kyith Ng
    Date Submitted: 28 Jan 2017
    Views: 141
    Downloads: 0
    StarHub Pte. Ltd. ‘s packet backhaul architecture is among the most advanced in the world, although Asia/Pacific as a whole is not at the forefront of developments, according to a recent report from Heavy Reading.
  • Will you wait until the TV is spoil to change to an LCD/Plasma TV?

    Source: Kyith Ng
    Date Submitted: 28 Jan 2017
    Views: 91
    Downloads: 0
    I was looking through my articles when i notice this rather interesting post from Barry Ritholtz from the Big Picture talking about his need to change to a new TV after the existing one is going haywire: So the old 27″ Sony TV — a 32″ CRT in the bedroom is — finally dying. Turn it on, and the screen goes on and off until its warmed up. I want to replace it with a bigger flat panel — I want 37″, the wife insists on smaller. Looks like 32″ will be the compromise. I am torn between getting something really nice or a something that’s a really good deal. I am leaning towards the latter. The TV in the den is kickass — and I really don’t want to be tempted to watch anything other than late night TV before bedtime.
  • Singapore Telecoms: Wireless backhual problems won’t be solved overnight

    Source: Kyith Ng
    Date Submitted: 18 Jan 2017
    Views: 140
    Downloads: 0
    On October 8-11, IIR – an events company affiliated with Ovum through joint ownership by Informa – held its first Transport Networks for Mobile Operators (TNMO) conference in Asia, in Hong Kong. This follows a more broadly-themed Asian event held in Singapore last January, Transport Network Strategies (TNS). Speakers at the TNS event discussed network evolution from the edge to the core, and addressed a broader range of network evolution issues such as IMS, SIP, and VoIP. At TNMO, the focus was more narrowly targeted, examining how operators can best scale and evolve their mobile backhaul networks in Asia-Pacific.
  • Will you wait until the TV is spoil to change to an LCD/Plasma TV?

    Source: Kyith Ng
    Date Submitted: 18 Jan 2017
    Views: 126
    Downloads: 0
    I was looking through my articles when i notice this rather interesting post from Barry Ritholtz from the Big Picture talking about his need to change to a new TV after the existing one is going haywire: So the old 27″ Sony TV — a 32″ CRT in the bedroom is — finally dying. Turn it on, and the screen goes on and off until its warmed up. I want to replace it with a bigger flat panel — I want 37″, the wife insists on smaller. Looks like 32″ will be the compromise. I am torn between getting something really nice or a something that’s a really good deal. I am leaning towards the latter. The TV in the den is kickass — and I really don’t want to be tempted to watch anything other than late night TV before bedtime. What is interesting is that here is a guy who can well afford it being the main man at Fusion IQ and talking on CNBC regularly on all things finance and you see that he only wanted to change to the new LCD tv because his existing one is spoiled.
  • Why you should track your spending habits using a budget application like Quicken

    Source: Kyith Ng
    Date Submitted: 12 Jan 2017
    Views: 275
    Downloads: 0
    In past articles I explain adequately how to go about creating a budget easily and my preferred method of budgeting using virtual envelopes. With Smartphones like iPhone and Android getting popular, many would say that all they have to keep track is just 1 month spending and do it in their smartphone. My advice is to use one that you can keep track and review for a long time. Preferably, I hope that GNUCash, which is opensource would be able to do that but sadly its too complex for me to recommend to you guys.
  • Evaluating a Single Premium Life Insurance Policy:Great Eastern Prestige Harvest

    Source: Kyith Ng
    Date Submitted: 12 Jan 2017
    Views: 146
    Downloads: 0
    The writer is not a certified financial advisor and his insurance philosophy is outlined in this brief. Do consult with a certified financial advisor to get a second opinion before making decisions. For more write-ups on insurance do take a look at the insurance section.
  • $SPY Continuation and opportunity in Telefonica and France Telecom

    Source: Kyith Ng
    Date Submitted: 12 Jan 2017
    Views: 174
    Downloads: 0
    Today’s bullish engulfing pattern looks bullish for guys who have already long. We thought that we are going to hit some form of intermediate top into a correction but looks like bulls won another day.
  • STI Singapore Market Still Look Bullish

    Source: Kyith Ng
    Date Submitted: 12 Jan 2017
    Views: 204
    Downloads: 0
    Part of my overall strategy in deciding the level of exposure in the market will have to deal with Market Psychology, Valuation and Technical. Certain markers that I use to determine whether to add more or not will be the price vs the 50 day and 200 day moving averages and MACD reaction.
  • Macdonalds $MCD correcting. Dividend Income Investors should take note.

    Source: Kyith Ng
    Date Submitted: 12 Jan 2017
    Views: 189
    Downloads: 0
    Macdonalds have been a favorite dividend stock of many investors because of its strong business model, reasonable prevailing yield and its dividend sustainability.
  • A Comprehensive First REIT OCBC Report

    Source: Kyith Ng
    Date Submitted: 12 Jan 2017
    Views: 344
    Downloads: 0
    First REIT is a real estate investment trust which provides a relatively high dividend yield. More Investment Moats research of First REIT can be found here. The writer is vested in First REIT. Its about time a big research firm take notice of First REIT. Like Aims AMP Ind REIT, it is those smaller REITs that will never be covered until now. This OCBC report is pretty comprehensive if you want to know all about First REIT.
  • Singapore Government Bonds (SGS) will be more visible to investors when listed on SGX

    Source: Kyith Ng
    Date Submitted: 12 Jan 2017
    Views: 186
    Downloads: 0
    Not many local folks know about how to invest in Singapore Government Bonds. They can: 1. Purchase via auctions through the 3 local banks (OCBC, UOB and DBS). 2. Purchase through Fundsupermart.com.
  • Vodafone does the first:Will Starhub,Singtel and M1 abolish the “all-you-can-eat” data fixed price plan in the future?

    Source: Kyith Ng
    Date Submitted: 04 Jan 2017
    Views: 189
    Downloads: 0
    Here is an interesting article as due to the high data usage placing a stress on the network and telco’s capital expenditure, they are changing their pricing to target those heaviest data users.
  • Ram Oversupply results in Cheap DDR3 RAMs – It’s a value purchase now

    Source: Kyith Ng
    Date Submitted: 04 Jan 2017
    Views: 201
    Downloads: 0
    I know it is probably not right for a site that preaches on frugal living to encourage you to spend but I believe this is a good deal.
  • Android Froyo’s Google IO keynote shows what Android could to do to Singtel, M1 and Starhub

    Source: Kyith Ng
    Date Submitted: 04 Jan 2017
    Views: 199
    Downloads: 0
    I had a blast watching this keynote as a geek. The next iteration of Google Android Operating System for Smartphone shows what an open platform can achieve compare to a relatively closed platform like iPhone. This is the full length Keynote. Do watch it.
  • Monthly Passive Income Dividend Portfolio update

    Source: Kyith Ng
    Date Submitted: 04 Jan 2017
    Views: 208
    Downloads: 0
    My December Dividend Income portfolio have been updated in the side bar. The biggest change to this is probably the deployment of a full 10% into: 1. First REIT through Rights issues 2. Purchase of Singtel at $3.07
  • Dividend Investing Lessons from an experienced investor

    Source: Kyith Ng
    Date Submitted: 04 Jan 2017
    Views: 346
    Downloads: 0
    I got to know this poster by the nick of mbkelly75 over at SeekingAlpha that post quite alot. In fact so much so that i reckon that he should be retired to be able to do that. And i was right. Here is his profile:
  • 4 Potential Dividend Stocks that might spring to life in 2011 – SIA,Starhub,CDL Hospitality and SMRT

    Source: Kyith Ng
    Date Submitted: 04 Jan 2017
    Views: 194
    Downloads: 0
    When the easy money have been made, one strategy is to hold stocks that were beaten down but still above the 200 day moving average. Here are my picks:
  • A perspective on short selling by Jim Chanos

    Source: Kyith Ng
    Date Submitted: 04 Jan 2017
    Views: 209
    Downloads: 0
    I got this off a site called My Investing Notebook and it gives a good representation of why we need short sellers in a market. They exist as speculators and profiteers to us but really sometimes the good ones are the ones that really tell us “Hey, we’re really getting ahead of ourselves here!” Here are some ways to spot some potential short sales:
  • The Broadband Incentive Problem:Delivering HDTV over IP is not good for Telcos

    Source: Kyith Ng
    Date Submitted: 04 Jan 2017
    Views: 215
    Downloads: 0
    Now here is a look at the Broadband Incentive Problem. We recently have the announcement that Google is going to bring the web to the TV. Apple is rumoured to be redesigning Apple TV. That’s good news for us consumers. But what about to the people delivering the backend like Starhub, Singtel and M1? Here is a good article on it. Overall the author attributes that this is a classic example of the broadband incentive problem and that it is not cost effective for the telcos on a flat all-you-can-eat data plan
  • Should you go for Hutchison Port Holdings (HPH Trust) IPO?

    Source: Kyith Ng
    Date Submitted: 04 Jan 2017
    Views: 224
    Downloads: 0
    Its really to pop this question especially for an IPO that we read about, but for me evaluating an IPO is more: 1. The climate the IPO is being issued at 2. How well known is this IPO Last year we have Global Logistic Trust and a lot of people got some great coffee money. This issue will be no different. The climate is conducive for IPO and this issue is from the parent Hutchison Whampoa. That to me is even more reputable than Temasek. This deal could possibly raised USD 3 billion which will make this the largest ever public offering in Singapore.
  • Optimising Mobile Broadband Economics

    Source: Kyith Ng
    Date Submitted: 04 Jan 2017
    Views: 207
    Downloads: 0
    At the 9th Telco 2.0 Executive Brainstorm, held in London on April 28-30, a dedicated session addressed the technical and business model challenges of mobile broadband, specifically looking at the cost problems and opportunities of the data boom.
  • M1 Full Year Results 2010: Paying out more than free cashflow

    Source: Kyith Ng
    Date Submitted: 04 Jan 2017
    Views: 197
    Downloads: 0
    M1 Limited today announced its 4th quarter results and full year results. At the same time it announced a juicy 7.7 + 3.5 cents dividend. in total the dividend is 17 cents making the dividend yield for the year 7% based on a share price of $2.50.
  • Yield Watch:Starhub surprises, First REIT doesn’t

    Source: Kyith Ng
    Date Submitted: 04 Jan 2017
    Views: 184
    Downloads: 0
    I did an update on my Singapore Dividend Stock Tracker today and were surprised by Starhub’s strong performance. Haven’t they and Singtel overpaid for the World Cup broadcast rights? Wasn’t there alot made about their expensive packages? Many are still waiting hard like what the analyst were predicting that it will fall to $2 or $1.90. That will be the historical low. But it seems that this is not the first time people are selling down Starhub due to negative news. Time and again it managed to hold within this $2.00 plus range. That $1.90 and $2.00 supports are important ones to watch out for, since it have been visited, tested  for so many times. We could well retest it again, but from recent movements, it seems that the 200 day moving average of $2.14 is somewhat strong enough for most investors looking to be vested to add to.
  • Are you watching the World Cup traders?

    Source: Kyith Ng
    Date Submitted: 04 Jan 2017
    Views: 199
    Downloads: 0
    The world cup fever is on again and we are all either in a betting mood or suffering from lack of sleep due to late night matches. So how is this world cup in terms of revenues and costs?
  • Living with iMoats: Spring Cleaning and WAToDo!

    Source: Kyith Ng
    Date Submitted: 04 Jan 2017
    Views: 205
    Downloads: 0
    Sorry to all readers for nothing able to post this week. Family have been pestering me to carry out spring cleaning and I have been doing this for the whole weekend.
  • Can you survive in America on USD 50,000 per year?

    Source: Kyith Ng
    Date Submitted: 04 Jan 2017
    Views: 259
    Downloads: 0
    Now here is a good breakdown on whether a typical American household that makes USD 50,000 a year can afford their bare minimal lifestyle cost. Note i say bare minimal which translate to mandatory costs that you cannot run away from:
  • Saving and Investing My Money : Singapore Man of Leisure

    Source: Kyith Ng
    Date Submitted: 04 Jan 2017
    Views: 142
    Downloads: 0
    Jared is a really nice gentleman I got to know while reading other finance blogs in and around Singapore. Around 2 weeks ago he asked whether he could guest post on my blog and I was really interested because I am always interested to know how these “Lao Jiao”’s financial journey. As usual, this is one of your fellow readers so do be supportive of their sharing.
  • Fwah Moment:Google Voice launched officially to all US users

    Source: Kyith Ng
    Date Submitted: 04 Jan 2017
    Views: 196
    Downloads: 0
    As a Singaporean i have never found a need for voice mail. A phone to me works because of SMS and Voice. But Google Voice is interesting because it could be the way we should communicate going forward. Basically, Google bought this company called Grand Central that 1. Aggregates the calls of your various carriers (Verizon, At&T and Sprint. Singapore users think Singtel,Starhub and M1)  to one unified Google Voice number. So any calls to these carriers goes to this unified number. 2. Transcripts your voice mails into text that you can view Twitter like 3. Personalized voice greetings for groups 4. and so much more
  • Trend Watch:STI looks very topish with a head and shoulders pattern

    Source: Kyith Ng
    Date Submitted: 04 Jan 2017
    Views: 151
    Downloads: 0
    Alot of sites are pointing that head and shoulders pattern, which is a bearish pattern, is observed on numerous indices. I think lets trade with skepticism in mind, plan when it comes to fruitation and plan when it does not. This pattern have not been confirmed yet so until we see confirmation this is very likely still very bullish.
  • International Investing:Dividend Withholding Tax Rates on Your Passive Dividend Income Summary 2015

    Source: Kyith Ng
    Date Submitted: 04 Jan 2017
    Views: 186
    Downloads: 0
    Why should you be concern about withholding tax as a dividend income investor? As a foreigner investing in other countries stock exchanges, unless your country has a tax treaty with that country, there is usually a tax on the dividend income or income in general. The question is how much. In this past article I explained my experiment to see how much withholding tax is levied on my Telefonica dividend purchase. The conclusion is that: If you as an international investor invest in a international ADR listed both on the US stock exchange (as an ADR) and on its own stock exchange and you purchase the ADR, only the home country’s withholding tax is levied and not an additional 30% withholding tax.
  • How a Housing Boom is causing problems for boyfriends around the world

    Source: Kyith Ng
    Date Submitted: 04 Jan 2017
    Views: 269
    Downloads: 0
    Now here is an interesting article from LA Times. It seems that the definition of the ideal marriage candidate have effectively changed in countries like China,Australia, Spain and probably Singapore. If you cannot afford to buy an apartment, flat and condo in this boom time, you are probably seen as not husband material. The cost of housing ownership have inflated and the average pay is not keeping up with the price appreciation I spoke to my good friend recently, I told him car ownership is getting expensive in Singapore. He thinks that is the last thing on people’s minds. Apparently he brought a friend to Sembawang to take a look at some flats and the environment. Now for folks not familiar with Sembawang, its at the outer edges of Singapore and consider to be places where its least expensive. Yet my friend’s friend is being priced out of HDB flat costing 500k. The figure is abit absurd, and folks living in that area might want to correct me if the prevailing price is wrong. In Singapore there is no countryside for you to move to! If you cannot afford to buy housing in areas like Seng Kang, Bukit Batok and Woodlands, you will need to move to the countryside in Singapore. And where is the country side? Jurong West. The other alternative is to not get a flat and live seperately or move into your parents place. Both options presents potential social problems.
  • How you can take an insurance based approach to portfolio management

    Source: Kyith Ng
    Date Submitted: 04 Jan 2017
    Views: 461
    Downloads: 0
    Dylan Grice wrote a very comprehensive article @ Investment Insights on a Top Down vs Bottom up portfolio manager and the risk involve in both. Its rather lengthy as well. A few interesting thing caught my attention.
  • The simplest and most easy to read personal finance book: The Richest Man in Babylon

    Source: Kyith Ng
    Date Submitted: 04 Jan 2017
    Views: 121
    Downloads: 0
    The Richest Man in Babylon is a personal finance book I would recommend to 1. Beginners who want to learn about how to manage their money 2. Parents who want to let their kids learn about saving money and what to do with their pocket money 3. Adults who have suffered bad money management and would like to correct it
  • Are Starhub and Exxon Mobil Similar? $XOM

    Source: Kyith Ng
    Date Submitted: 04 Jan 2017
    Views: 218
    Downloads: 0
    A Channel News Asia forum member talk about Starhub being in a similar situation as Exxon Mobil, which hedge fund manager Jim Chano’s have a big short position on. The premise of Jim Chano’s rational of shorting Exxon Mobil is that although it is the most well regarded dividend aristocrat, it is in fact paying out more than its cashflow:
  • Long Term Market Analysis:Fusion IQ’s Take

    Source: Kyith Ng
    Date Submitted: 04 Jan 2017
    Views: 154
    Downloads: 0
    I always been a fan of Barry Ritholtz work at Fusion IQ as his approach to risk control, behavioral investing is an important success element in my opinion. Particularly, he sees some correction ahead which may ultimately result in the start of a bear or a continuation of current market trend.
  • Would you want Microsoft Office Mobile on your iPhone or Blackberry?

    Source: Kyith Ng
    Date Submitted: 04 Jan 2017
    Views: 178
    Downloads: 0
    That seems to be the message that we are gathering when Microsoft made this kind of replies: “In addition to the current Windows Mobile 6.5 and upcoming WM7 clients, with the recently announced alliance between Microsoft and Nokia we are working to bring Office Mobile to hundreds of millions of Nokia smartphone owners, followed by other leading Smartphone platforms.” But my question is, when your mobile application is so shitty compared to the third parties like Quickoffice, Documents to go, your main concern is not just to bring the suite to people, but to make it competitive!
  • Evaluating EpiCenter Holdings: Can they compete with a big boy like Hon Hai

    Source: Kyith Ng
    Date Submitted: 04 Jan 2017
    Views: 257
    Downloads: 0
    I know I haven’t done a piece on Epicenter Holdings yet. But this stock is doing something that I really like which is mobile productivity and mobile computing. You can read more about my thoughts here at www.ProductiveOrganizer.com
  • Fwah Moment: 2nd Generation Satellite ERP System in the future??? WTF!

    Source: Kyith Ng
    Date Submitted: 04 Jan 2017
    Views: 185
    Downloads: 0
    The Land Transport Authority will soon be calling for a tender to invite industry players to submit technical proposals for a second generation ERP system. One of the key technologies identified is a Global Navigation Satellite System (GNSS) which makes use of satellites to determine the position of a vehicle. Transport Minister Raymond Lim said the LTA will be conducting various technical tests to evaluate if the latest technologies available in the market today are accurate and effective enough for use as a congestion charging tool, especially taking into consideration the dense urban environment in Singapore.
  • SP Ausnet Dividend Stock Tracker Update and Analysis

    Source: Kyith Ng
    Date Submitted: 04 Jan 2017
    Views: 193
    Downloads: 0
    Dividend Yield updated to reflect latest income distribution and a summary of the fire-related lawsuit coming their way SP Ausnet have been very attractive recently on my Dividend Stock Tracker particularly because of the listed dividend yield. Share price have been under pressure due to the lawsuits coming their way:
  • Technical Analysis of SMRT and SATS: Should you buy and sell

    Source: Kyith Ng
    Date Submitted: 04 Jan 2017
    Views: 365
    Downloads: 0
    This isn’t so much of an analysis I feel. it is very clear cut. 2 transportation counters that wasn’t doing very well.
  • Decreasing Term Life Insurance can be your low cost insurance solution

    Source: Kyith Ng
    Date Submitted: 04 Jan 2017
    Views: 146
    Downloads: 0
    Insuring so that your dependents not able to pay huge financial burden can be cheaper than you realise. As a working adult aged 20-35, some of the hardest financial risks you are likely to face is:What if you are not around leaving your wife and kids to pay for the biggest financial burden, your mortgage. One can argue that there are other big ticket credits that you can take up such as Student Loans Credit Card Loans Car Loans But with home prices fluctuating around 400k, a single bread winner will be severely  tested.
  • Singapore Airlines SIA Stock Analysis: Are airline carrier stocks weak against high oil prices?

    Source: Kyith Ng
    Date Submitted: 04 Jan 2017
    Views: 312
    Downloads: 0
    This isn’t like my normal analysis but I will try to do abit of this kind. SIA really grabbed some of my readers attention because of its recent price movement.
  • Fundamental Data for SIA Engineering

    Source: Kyith Ng
    Date Submitted: 04 Jan 2017
    Views: 195
    Downloads: 0
    This is not an analysis but in my verification of SIA vs SIA Engineering I compiled this data. This is for anyone who are interested in it.
  • To all my friends holding ST Engineering Shares: Watch out below!

    Source: Kyith Ng
    Date Submitted: 04 Jan 2017
    Views: 124
    Downloads: 0
    Ok so I posted 2 charts on SMRT and SATs cutting below their 200 day moving average and 1 chart on SIA doing the same thing. Now I encounter another one in ST Engineering. These are some very significant profit taking signals. What is going on?
  • Long Term Market Analysis: ARPU expected to fall and voice calls to be free likely for M1, Starhub and Singtel

    Source: Kyith Ng
    Date Submitted: 04 Jan 2017
    Views: 272
    Downloads: 0
    I wrote in the past about the fundamentals of investing in Singapore Telecoms and what is the future are in store (Singtel,M1 and Starhub analysis here). I also wrote about the coming changes in the industry, how it is going to be bad for developed market telcos (article here).
  • Stock Analysis Singtel: Q3 ’11: More VC and innovation initiatives

    Source: Kyith Ng
    Date Submitted: 04 Jan 2017
    Views: 184
    Downloads: 0
    Singtel just announce their Q3 quarterly report. There is nothing much different to shout about. Every thing is in order. It won’t collapse it won’t surprise on the upside. I would like to touch on a few things though.
  • A Summary of Singtel’s problem–AIS in Thailand, Bharti in India and Telkomsel in Indonesia

    Source: Kyith Ng
    Date Submitted: 04 Jan 2017
    Views: 180
    Downloads: 0
    I mention most of my thoughts about Singtel’s Q3 2011 results here. When it comes to cashflow, there are some dark clouds overhanging from potential lawsuits and fines.
  • Starhub:Highest dividend yielding Singapore STI blue chip comes through FY2010 well

    Source: Kyith Ng
    Date Submitted: 04 Jan 2017
    Views: 190
    Downloads: 0
    Starhub released their Q4 and full year 2010 financial results, shortly after Singtel does (Singtel Analysis here)
  • Dividend and Stock Buybacks:Is it Good or Bad

    Source: Kyith Ng
    Date Submitted: 04 Jan 2017
    Views: 190
    Downloads: 0
    Readers here at Investment Moats would consist of mainly the value investors and the dividend investors. For the dividend investors, what matters to them would be consistent and attractive dividend payouts at the right price.
  • Starhub, M1 and Singtel’s existing telecom business model approaches end of life

    Source: Kyith Ng
    Date Submitted: 04 Jan 2017
    Views: 519
    Downloads: 0
    For potential investors in Singapore’s telcos as well as investors already vested, the question they evaluate is which is better. I would rather post the question: will they survive to pay their existing 8%,6% and 4% dividends? This manifesto from Telco 2.0 seeks to explain and address why the telecom business model is changing and it is up to you to decide how these Starhub, M1 and Singtel will be affected by a dying business model.
  • Aims AMP Capital Industrial REIT does a dilutive placement–Management screwing investors again?

    Source: Kyith Ng
    Date Submitted: 04 Jan 2017
    Views: 256
    Downloads: 0
    A leopard refuses to change its spots. Aims AMP Capital Industrial REIT was formerly MacArthurCook REIT. It was listed at SGD 1 dollar and bleed slowly to 21 cents currently.
  • A must read article for Starhub,M1 and Singtel and other telco investors

    Source: Kyith Ng
    Date Submitted: 04 Jan 2017
    Views: 360
    Downloads: 0
    This article aggregates all the questions an interested investor in a telecommunications companies. A definitive must read if you are serious about investing in telcos as it brings to attention the changing economics of the telco industry and how your yield will get affected.
  • Which Singapore Telco will be the first to bring Skype to Skype calls for users

    Source: Kyith Ng
    Date Submitted: 04 Jan 2017
    Views: 193
    Downloads: 0
    In the local telco scene, not a lot have been mentioned about VOIP as a very big thing. MediaRing was trying to create something there, however they failed to take off. With a stronger partner now things might change. VOIP will impact M1 out of the 3 local telcos more since its international calls revenue percentage is the highest among the 3 Singapore Telcos. But the thing that worries telcos all over the world is that:With the promotion of a 12GB data plan that you will never hit, free messaging and skype to skype calls are very attractive. If in the next 2 years smartphone like iPhone and Android phones dominate the telecoms scene, it means that it is easily possible to talk to your friends via a Skype client that runs in the background. We may not be very far away. Verizon is starting to offer free unlimited Skype to Skype plans, which is a data +voice plan. They are aiming for new subscribers rather than reduce churn.
  • Market Correction: What is my take on it

    Source: Kyith Ng
    Date Submitted: 04 Jan 2017
    Views: 194
    Downloads: 0
    I didn’t monitor the intraday action. Never did but I was concern about this correction. Somehow when I see blue chips all being sold down in tandem it seems to indicate that these are not coincidence.
  • Bought Telefonica (ADR) $TEF:Undervalued Dividend Income Stock?

    Source: Kyith Ng
    Date Submitted: 04 Jan 2017
    Views: 191
    Downloads: 0
    I initiated a position in Telefonica on Thursday at a price of USD 61.50. Telefonica, together with its subsidiaries and investees operates in the telecommunications, media and contact center industries. Telefonica basic purpose is the provision of all manner of public or private telecommunications services, including ancillary or complementary telecommunications services or related services. The Company operates in three business areas: Telefonica Spain, Telefonica Latin America and Telefonica Europe Essentially Telefonica is the third largest telecommunications company in the world behind AT&T and Vodafone.
  • Long Term Market Analysis: Some insights into the rally intensity of this bull run

    Source: Kyith Ng
    Date Submitted: 04 Jan 2017
    Views: 148
    Downloads: 0
    Readers would note that although a lot of the research and commentaries on this site is fundamental based, there is an element of behavioral commentaries as well.
  • 10 ways to be your own boss

    Source: Kyith Ng
    Date Submitted: 04 Jan 2017
    Views: 126
    Downloads: 0
    In this video Fred Wilson talks about ten ways to be your own boss. Fred’s a New York based VC and has invested in numerous game-changing tech companies, including Twitter, del.icio.us, Etsy, and FeedBurner. He also runs a very active and influential blog at AVC. Fascinating to hear these elements that create success.
  • Cost of Car Ownership Calculator

    Source: Kyith Ng
    Date Submitted: 04 Jan 2017
    Views: 130
    Downloads: 0
    I used to think that buying a car involves paying for car loans and paying for petrol. It turns out that there is more spending and budgeting that needs to be done when it comes to planning for car ownership. As a finance blog, my research is not to show you the best way to choose a car or the best car recommendation to you. At Investment Moats, we hope to equip you with a good estimate of how much it will cost you to own your prospective car.
  • The S-Chips Value Trap : Fake Cash Holdings – Hongwei and China Hongxing Sports

    Source: Kyith Ng
    Date Submitted: 04 Jan 2017
    Views: 311
    Downloads: 0
    One of the key things that a value investor look into is a company’s financial strength. Small time investor like us have not many ways to do that but to analyze the balance sheet, income statement and cash flow statement.
  • Your Money: What was a teacher thinking!

    Source: Kyith Ng
    Date Submitted: 04 Jan 2017
    Views: 113
    Downloads: 0
    I got to know this story through Wealth Buch and he gave an account about what he thought about this news. People will comment that he should have thought better. While I refrain from thinking along that line, I question the system in general for this problem we are facing:
  • GLC and TLC IPOs tend to benefit themselves more than benefit investors

    Source: Kyith Ng
    Date Submitted: 04 Jan 2017
    Views: 326
    Downloads: 0
    So it is likely that Mapletree Investments will IPO more REITs (Mapletree Commercial Trust & Industrial Trust). My advice: Do not always be taken in by GLC and TLC IPOs. A lot of time we get the short end of the stick. CitySpring, SP Ausnet and Singtel are cases where the GLC and TLCs aim is to offload or DUMP these lower yielding assets on us investors at the maximum price.
  • Almost All Business Trust are in the red. Will Hutchison Port Holdings be among them

    Source: Kyith Ng
    Date Submitted: 04 Jan 2017
    Views: 180
    Downloads: 0
    Hutchison Port Holdings no doubt is a large IPO, but take a close look at almost all business trust listed.
  • OMFG! Apple Inc is a Cash Generating Monster! $AAPL Analysis

    Source: Kyith Ng
    Date Submitted: 04 Jan 2017
    Views: 368
    Downloads: 0
    Apple Release a Smashing Third Quarter Result and what is interesting about it is the bloody amount of cashflow it can generate. This goes to show what a great company to invest in.
  • Choosing the best high yield dividend stocks for your portfolio

    Source: Kyith Ng
    Date Submitted: 04 Jan 2017
    Views: 113
    Downloads: 0
    I read a good piece on high yield investing over the weekend on The Edge. Personal Wealth featured Bruno Lippens of Pictet Asset Management,which is one of the world’s best performing high-dividend funds.
  • UBS Downgrades M1 Limited

    Source: Kyith Ng
    Date Submitted: 04 Jan 2017
    Views: 196
    Downloads: 0
    UBS downgrades M1 (B2F.SG) to Neutral from Buy, citing weak free cash flow, reduced likelihood of special dividend, limited broadband revenue upside when Singapore’s high-speed national broadband network rolls out in coming months, says Dow Jones. UBS says free cash flow down 66% on year in 1H10 at $30 million due to increased working capital needs arising from sale of smartphones: “We expect M1’s cash flows to remain weak in 2H10 because the iPhone 4 will be launched on 30 July 2010 and capex is seasonally higher in 2H”.
  • Telecoms:The Argument for charging Peak Hour Mobile Data Rates rather than Tiered Data Caps

    Source: Kyith Ng
    Date Submitted: 04 Jan 2017
    Views: 219
    Downloads: 0
    After reading this article, the point driven across to me is that perhaps on a local context, the data bottle neck that was expected to be faced by telecoms like Singtel,Starhub and M1 will not happen. The article argues that the bottle neck faced is in the 3G wireless spectrum rather than the backend network infrastructure. If that is the case, the spectrum usage might not be as high as previously expected.
  • DBS Expects Starhub to disappoint

    Source: Kyith Ng
    Date Submitted: 04 Jan 2017
    Views: 190
    Downloads: 0
    DBS Vickers lifts Starhub (CC3.SG) target price to $2.20 from $2.06 after changing valuation basis to discounted cashflow model from P/E “as investors increasingly focus on free cash flow”, says Dow Jones. Still, keeps Fully Valued call as stock trading about revised target. DBS Vickers says market’s focus in 2H10 will be telco’s non-mobile telephony business, which could come under pressure with Singapore’s high-speed national broadband network being rolled out, and pay-TV competition intensifying. “The key question is whether gains in the corporate (broadband) business can offset the loss in the consumer broadband business,” says the brokerage.
  • My good luck in Hutchinson Port Holdings (HPH) IPO Balloting Results

    Source: Kyith Ng
    Date Submitted: 04 Jan 2017
    Views: 197
    Downloads: 0
    I blogged about the possibility of applying for this IPO some time ago on Investment Moats. And I did applied.
  • $TEF:Telefonica finally agrees to buy Brazil’s Vivo for $9.8 Billion

    Source: Kyith Ng
    Date Submitted: 04 Jan 2017
    Views: 369
    Downloads: 0
    With this deal, Telefonica paid a premium, but the value of this deal could be higher than the price paid for Vivo. The synergy of Vivo’s mobile communication with Telefonica’s fixed line business to structure a comprehensive product could increase the switch over and increase revenue.
  • Zero Hedge takes notice of Singapore’s Economic Performance

    Source: Kyith Ng
    Date Submitted: 04 Jan 2017
    Views: 395
    Downloads: 0
    I have always had a love/hate relationship with Singapore. During the seventies, the autocratic Prime Minister, Lee Kuan Yew, regularly locked up journalist friends of mine and banned magazines like The Economist that published my stories. The country is also notorious for public canings of offenders who had the audacity to discard chewing gum on public streets. On the other hand, my hedge fund was once one of the largest commission generators on the Singapore Monetary Exchange (SIMEX), and there is no better place to spend a weekend with ten grand burning a hole in your pocket. I spent more than a few nights closing down the bar at the Raffles Hotel, home of the Singapore Sling.
  • ThinkOrSwim Discount Broker Opens Singapore Branch.

    Source: Kyith Ng
    Date Submitted: 04 Jan 2017
    Views: 119
    Downloads: 0
    I have been using ThinkOrSwim.com as a discount broker on and off for the past 3 years. It enables me to option trade or trade in US stocks at a much cheaper price compare to Singapore brokers.
  • Singapore Press Holdings (SPH):Are newspaper stocks still a good dividend income stock?

    Source: Kyith Ng
    Date Submitted: 04 Jan 2017
    Views: 191
    Downloads: 0
    SPH have been a grandfather stock for many retirees and dividend stock investors. 1. An attractive consistent 5-6% yield. 2. A business that is well protected by the local government. 3. Low barriers to entry but overwhelming incumbent. 4. Main business is an old business that continues to do well. I have to admit that for 2-3 years I have the impression that SPH is going to have a challenging business model.
  • Starhub Q2 2010 Results:Declining Earning Escalating Costs

    Source: Kyith Ng
    Date Submitted: 04 Jan 2017
    Views: 184
    Downloads: 0
    Starhub announced its Q2 Report and here are some notable observations: 1. Revenue is doing well. Revenue have been improving since last year’s Q2 as well as last quarter 2. Cost have been climbing higher. On a half yearly note, cost have increased from 855 mil to 991 mil. Its not significant, but you will see in the next observation how it affects profits. 3. Profit overall fell 25% from 148 mil to 109 mil quarterly. You will have to go back to Q1 2010 or Q1 2005 to find a profit this low. What this means is that it is definitely not a good sign as competition gets tougher. 4. The balance sheet presents 2 significant figures. While short term bank loans differ from Q2 2009 by a reduction of 180mil, long term bank loans balanced out in Q2 2010 by an addition of 150 mil. In terms of debt finance, not much changed there. 5. On a group balance sheet, the total equity is 57 mil! The question is will we reached zero or negative equity??? Do take note that at the company level Total equity is at 1.1 billion. I have an old reply from Starhub’s investor relations talking about their low equity to debt situation. 6. Net Operating Cashflow fell from 217 mil(2010 Q2) to 154 mil(2009 Q2). In a sense, working capital was higher in 2009 to the tune of 40 mil. So that should partly account why cashflow is lesser in 2010 7. Capital Expenditure was lower  at 44 mil (2010 Q2) vs 70 mil (2009 Q2). Compare to last quarter it remain low. This is surprising since Starhubs policy is to keep within 14% of sales. This is in addition to them being the OpCo for NBN. Somehow they will need to spend to build this OpCo up. 8. Essentially, free cashflow stood at 110 mil (2010 Q2) vs 147 mil (2009 Q2). Free Cashflow is the life blood of dividend companies since it determines how much they can safely give out as dividends. 9. Total Dividends paid out is at 171 mil (Q2 2010) vs 154 mil (Q2 2009). This is due to the company paying 5 cent per share as dividend, which a lot of people think it is not sustainable. If you deduct this amount from free cashflow you will get –60 mil (Q2 2010) vs –5.2 mil (Q2 2009). Normally, during second quarter you account for 2 quarters worth of dividends payout so getting this figure negative is normal.
  • SPH’s purchase of Clementi Mall looks more like a bad buy than a good one

    Source: Kyith Ng
    Date Submitted: 04 Jan 2017
    Views: 248
    Downloads: 0
    Yesterday I wrote an article revisiting SPH as an income stock (You can read it here). The article highlights that one of SPH’s strategy is to become a quasi-REIT to diversify its business risk from a press business whose moat is getting more narrow. One of its recent purchase have been Clementi Mall.
  • CTO of HP’s Gaming business talks about the wireless mobile industry

    Source: Kyith Ng
    Date Submitted: 04 Jan 2017
    Views: 193
    Downloads: 0
    For the folks who think that whenever I blabber about telcos losing their competitive business model I am going senile, it seems I am not the only one. Many industry experts and visionaries are viewing it in the same light. Here is an article on a very forthcoming CTO of HP who runs his very informative blog here.
  • Be Frugal: 3 Ways to control Tech Gadget Spending

    Source: Kyith Ng
    Date Submitted: 04 Jan 2017
    Views: 122
    Downloads: 0
    Spending on Gadgets seems to be the past-time of many men and boys. I have dabble in my love for Gadgets for a long time since my secondary school days. Back then, money was really hard to come by and whenever I spend on such stuff, I feel a sense of guilt because although I am curious about how they work, spending on them means I will have to forgo something that matters to me. After I started working, the budget constraints gets relaxed and while I can realistically buy an iPhone every month, it is ridiculous to do that.
  • China Gaoxian’s accounting irregularities: Why isn’t SGX tightening up listing rules?

    Source: Kyith Ng
    Date Submitted: 04 Jan 2017
    Views: 176
    Downloads: 0
    China Gaoxian turn out to be the third company listed on the SGX after China Hong Xing and Hongwei to be investigated for accounting irregularities.
  • S&P 500($SPX) and Major Indices in range mode.

    Source: Kyith Ng
    Date Submitted: 04 Jan 2017
    Views: 200
    Downloads: 0
    It’s been a few slow weeks for me as well as the markets. I have not been doing much on the investment front recently and really it’s a difficult market to invest. Trading is another story. 1130 is the resistance that the bulls just could not get across but sentiments recently have been rather lukewarm. The number of bulls are being turned by this lethargic markets. Recent sell downs have been rather drastic. Volume is higher on selldowns then uptrends. Breadth indicates market is short term oversold.
  • Yield Watch:Starhub and M1 pushes ahead

    Source: Kyith Ng
    Date Submitted: 04 Jan 2017
    Views: 187
    Downloads: 0
    My Dividend Stock Tracker have been updated with the daily figures. Market have rebound nicely and particularly the main darling have been Genting International. Yangzijiang have also been on a healthy climb but what is slightly less under the radar was a shift in funds towards the telcos Starhub and M1. Yields have fallen to 6.1% for M1 and Starhub at 8%. Those are still very good dividend yields. But are they undervalued now? I think not. For sure they provide good yields but if you buy it at a high, your capital loss might end up greater than your dividends. EV/EBITDA  at 8.9 times and 6.7 times are low and probably shows how easy it is for telcos to clear their equity and debts.
  • DBS first Singapore bank to allow secure third party access to your bank accounts?

    Source: Kyith Ng
    Date Submitted: 04 Jan 2017
    Views: 123
    Downloads: 0
    I got a email notification from PageOnce this morning to use their iPhone client. PageOnce is a web 2.0 personal finance site, which means you can aggregate your financial data there.
  • Barry Ritholtz thinks the market will trade in a range. What do you think?

    Source: Kyith Ng
    Date Submitted: 04 Jan 2017
    Views: 180
    Downloads: 0
    We got a good rally going this week, which took us back to the resistance levels. This resistance level is big if you look at the number of times we failed to rally over it. Failing to rally over it doesn’t mean is the end of the world as market is always in 3 modes, climbing, dropping and consolidating. The key as I have mentioned in a previous article, is really to have a plan in place should any of those modes occur.
  • Here is why I think GRP Ltd is a risky dividend income stock

    Source: Kyith Ng
    Date Submitted: 04 Jan 2017
    Views: 177
    Downloads: 0
    For those who have not noticed, I have updated my latest Dividend Stocks and Portfolio allocation on the right side of the website. The google spreadsheet widget was not working very well, so I had to recreate this again. I wonder would anyone pay for a javascript portfolio tracker to make finance bloggers like us have an easier time. —– I really couldn’t find the bandwidth to uncover undervalued long term plays. Most good stocks I have discovered them too late and now their valuation is very rich. In the end I chose to take up position in this little company called GRP Ltd.
  • New Online Sources proves a bigger pull than traditional news papers

    Source: Kyith Ng
    Date Submitted: 04 Jan 2017
    Views: 171
    Downloads: 0
    Here is an interesting pic gotten off Barry Ritholtz’s site. When we discussed SPH future and why the need to capture all other mediums where people heavily visited frequently, we did not discuss much about how successful were those AsiaOne.com and StraitsTimes.com ventures.
  • 10 Dividend Income Stocks that raise dividends… and 8 that cut their dividends

    Source: Kyith Ng
    Date Submitted: 04 Jan 2017
    Views: 183
    Downloads: 0
    20 Comments I just got back from in camp training and perhaps that’s why I couldn’t post the last 2 weeks. Hope everyone is still around. I did some spring cleaning of my Dividend Stock Tracker by updating the dividend payout to 2010-2011 numbers. The basic objective is to make sure the current yields are not inflated. I did one round in june to adjust the debt to assets for the companies tracked but this one is probably more interesting then boring gearing levels. (Edit: Singtel Figures updated to current yield 4.5% instead of 5.1%) None of the 18 changes show that they are giving out special dividends. Special dividends would probably distort the yields that you will get should you are looking for long term holdings. In income investing, you want the company to earn more and their payouts to rise gradually with the income.
  • International Investing: Think Nokia as a dividend growth stock is dead? Maybe not [$NOK]

    Source: Kyith Ng
    Date Submitted: 04 Jan 2017
    Views: 188
    Downloads: 0
    Sometimes we are quick to form a conclusion on certain issues based on limited thought process or from information that we take in only via our experience.
  • Apple’s a case study of great segmentation strategy

    Source: Kyith Ng
    Date Submitted: 04 Jan 2017
    Views: 466
    Downloads: 0
    Here is a great article on the writer’s interpretation of Apple’s segmentation strategy. I observed a lot of debates and they all pointed that it is inevitable that Android or Samsung or the group of them will beat the crap out of Apple. But essentially, most of them are just walking in this great system integrator’s footsteps and ideas.
  • Rent or Sell your Home? Mint.com shows you how to sell your home!

    Source: Kyith Ng
    Date Submitted: 04 Jan 2017
    Views: 111
    Downloads: 0
    I got to confess. Drizzt is a sucker for cool graphics. You may have observed it here. That is why I really like this illustration below.
  • How to get Singapore/international stock market prices on your Android phone: Bloomberg App

    Source: Kyith Ng
    Date Submitted: 04 Jan 2017
    Views: 218
    Downloads: 0
    If you are an international investor like me, most of the application that you have on the iOS or Android are more catered towards US centric people. They pull data from finance sites like Google Finance, Yahoo Finance, which essentially are US biased. What happens if you want a really puny cap company like OKP Holdings or Starhub holdings? The solution is to use Bloomberg’s app on both iPhone and Android. Bloomberg has a vast database of up to date prices of any exchanges around the world and if you want to keep track of Singapore, Brazil or Taiwan stock prices on the go, this is an app to get. Here I show you 4 examples: OKP a Stock on SGX that is not even in the main Singapore index.
  • Fwah Moment:Food Junction does its bit to reign in Inflation?

    Source: Kyith Ng
    Date Submitted: 04 Jan 2017
    Views: 183
    Downloads: 0
    Ok I was suppose to lookup some info on Food Junction as a stock, but I came across this announcement yesterday:
  • An Analysis of Manchester United and Arsenal Full Year 2009/2010 Financial Results

    Source: Kyith Ng
    Date Submitted: 04 Jan 2017
    Views: 186
    Downloads: 0
    I have watch premiership soccer since I was 13 years old and while it still grips me today like it grips me 17 years ago, much has changed. More money is flowing into the game and the game is becoming more commercialized. The end result is that much more is at stake other than result on the field. Off-the-field results are as important as well. As a Manchester United fan, probably the most consistent news about the club have been how the owners (The Glazers) are screwing the club up by doing a leverage takeover in 2005 and laden the club in massive debts that will only be detrimental to the soccer team. My take on this is that a leverage takeover is not always bad if the management brings expertise and additional value added benefits (stability, off-the-field commercial results, youth development). However, from past records, most leverage buyouts like this ends badly. In this analysis I contrast the latest financial results against another good Premiership soccer club that has taken on debts for very different reasons – Arsenal. Comparing and contrasting is not to say which club is better but it will be interesting to contrast the mandate of each club and operationally how their performance differs.
  • Should you go for the Global Logistic Trust GLP IPO?

    Source: Kyith Ng
    Date Submitted: 04 Jan 2017
    Views: 192
    Downloads: 0
    The hot topic this week and probably the past week was one of the biggest local IPO since Singtel’s IPO many many years ago. Its so hot that its been a long time since I am immerse in an IPO craze. Many dividend investors would be interested in this IPO so what is my assessment of it?
  • GP Batteries: Investing in Battery related companies

    Source: Kyith Ng
    Date Submitted: 04 Jan 2017
    Views: 419
    Downloads: 0
    Here is a good article talking about the fact that there are really not much difference between competing battery technologies. A good read for folks investing in GP Industries and GP Batteries
  • Food Junction-Another Buying Opportunity?

    Source: Kyith Ng
    Date Submitted: 04 Jan 2017
    Views: 185
    Downloads: 0
    They say that once beaten twice shy. However, investors due to greed will time and again revisit failed investments and never learn from them. I suspect Food Junction is the case for me. I was invested in Food Junction very early in my investment life at 68 cents. I am still holding on to it. What was suppose to be a potentially great dividend stock turn out to be otherwise. My investment is 67% in the red for food junction. I received 36% in total yield up to now so that cushions the impact. You can take a look at my previous postings of Food Junction here. I still find this statement from Food Junction’s 2005 Annual Report interesting: There is no substitute for experience, so be sure to pick Food Junction Group, which has been in the business for more than 12 years now. How ironic that with so much experience share holders were not only not rewarded but punished for what I thought was a good stake in a business that will grow and prosper.
  • A good discussion on how Apple TV might commoditize cable TV

    Source: Kyith Ng
    Date Submitted: 04 Jan 2017
    Views: 196
    Downloads: 0
    Apple have so far commoditize whatever they went into. First it’s the record company. Then it’s the Telcos. Now they are trying to do that to the book publishers with the release of the iPAD. The next frontier, cable TV? Here is a good discussion that would stimulate your thoughts on whether Apple will succeed
  • How to convince a savvy customer to buy life insurance policies from you

    Source: Kyith Ng
    Date Submitted: 04 Jan 2017
    Views: 144
    Downloads: 0
    I got a call at work today from my first insurance agent. He thinks it’s a good time to do an annual review of Drizzt’s insurance and investment portfolio.
  • Reader shares his budgeting experience with iBank and Singapore Bank’s transaction format

    Source: Kyith Ng
    Date Submitted: 04 Jan 2017
    Views: 124
    Downloads: 0
    I did an article sometime back teaching readers how to plan, create and use a budgeting software in 10 steps and its been a very popular topic primarily because it is something most people would always want to make sense of. One of my readers YYT shares with us some really interesting comparison of how each Singapore bank stack up in their support for electronic bank statements. For International Readers info, a lot of web budgeting apps like Quicken and Mint allows automatic pulling of transactions from banks. Perhaps international users don’t have that luxury. YYT uses the iBANK for MAC which looks to be very powerful. It allows offline sync to your iPhone through WEBDav and allows you to plan using the envelope budgeting method. Here are his thoughts:
  • Escalating costs at SPH

    Source: Kyith Ng
    Date Submitted: 04 Jan 2017
    Views: 179
    Downloads: 0
    I am not going to do a deep review of SPH’s 2nd quarter 2011 earnings. Net profit is down by a lot and they are giving out 7 cents of dividends. We also see that the Clementi Mall is starting to contribute.
  • 5 Singapore Industrial REITs for your portfolio and where does Mapletree Industrial REIT (MIT) rank

    Source: Kyith Ng
    Date Submitted: 04 Jan 2017
    Views: 371
    Downloads: 0
    Readers who have bookmarked my Dividend Stock Tracker, would have note that I categorize the REITs into the nature of the REITs. One category that is getting attention recently have been the Industrial REITs due to the IPO of Mapletree Industrial REIT. The question many are asking is how does this new REIT rank among its peers. In my opinion we can categorize the industrial reits into 2 categories: Large Capitalization, Strong Sponsers, High NAV, Low Yielders Smaller Capitalization, Discounted NAV, High Yielders
  • The cost of owning a pet in its lifetime

    Source: Kyith Ng
    Date Submitted: 04 Jan 2017
    Views: 229
    Downloads: 0
    Do you have many friends who own pets? I do have a few. One of my good friend owns a dog. My best friend owns some rabbits in his old house. We have fish enthusiast back in office. I had the privilege to go to Yishun with them to take a look at the process of buying a small fight fish and the necessary nutrition and food for it. From the price tag of the tanks, pumps food and necessary maintenance fish, even a relatively cheap pet like fishes can eventually be expensive. Owning a pet is abt like putting a child through school. There are much benefits to it and provides a nice distraction but requires commitment.
  • Hyflux Preference Shares–6% dividend yield

    Source: Kyith Ng
    Date Submitted: 04 Jan 2017
    Views: 204
    Downloads: 0
    So I think now that the whole Singapore financial blog world is talking about this preference shares offering, I would like to briefly share my decision and views.
  • 9 China ADRs newly listed on SGX: Do they make good dividend stocks? $BIDU, $CYOU, $CTRP,$HMIN, $MR, $NTES, $SNDA, $STP, $TSL

    Source: Kyith Ng
    Date Submitted: 04 Jan 2017
    Views: 379
    Downloads: 0
    SGX brought 18 US listed China ADRs over to their platform so that local investors can get exposure to or that they can use this to speculate on china stocks. These are different from those S-Chips locally listed as they are the big boys of China. They are large in market capitalization and some like PetroChina and Sinopec is as large as your Microsofts and Walmarts. I took this afternoon to give them a quick run down. I would like to share what my initial thoughts of them here. This part 1 of the coverage is on those stocks listed in China and not in Hong Kong. The common theme is that they tend to me more tech companies rather than mature mega large caps. So for the local dividend investors do they make good dividend stocks?
  • Free Cashflow Yield incorporated into Dividend Stock Tracker

    Source: Kyith Ng
    Date Submitted: 04 Jan 2017
    Views: 201
    Downloads: 0
    I recently received some advice from readers of what they want to see in my Dividend Stock Tracker. I do take their advice seriously under considerations but I would like to take things one step at a time to improve it. The objective of the tracker still remains as an accessible page to track all Blue Chip and Large Dividend Yielding Stocks on the SGX. I try to incorporate what I think are important indicators to good dividend companies and one of the things that I am not too pleased with the old Tracker was the use of Net Operating Cashflow (NOPAT). I wrote in the past on what is the difference between Operating Cashflow, EBITDA, Earnings and Free Cashflow. For readers who want to know in depth about this can view the article here.
  • K-Green Trust weak technicals: To Accumulate?

    Source: Kyith Ng
    Date Submitted: 04 Jan 2017
    Views: 188
    Downloads: 0
    K-Green Trust showed a very weak technicals these week. Originally hovering around 1.10 to 1.13 it broke it off and reached a low of 1.06 today. One can attribute to very weak EPS vs NAV but is it the case? Technically we could reached 1.00 but in reality its hard to estimate how low it can go.
  • Cache Logistics Trust REIT results inline

    Source: Kyith Ng
    Date Submitted: 04 Jan 2017
    Views: 197
    Downloads: 0
    This REIT delivered results that are inline. I favor Cache more than Aims AMP and Sabana due to its higher yield yet lower gearing. (Compare against other REITs here)
  • Sabana Shari’ah Industrial REIT Q1 Results–Met Expectations

    Source: Kyith Ng
    Date Submitted: 04 Jan 2017
    Views: 177
    Downloads: 0
    Sabana REIT, the world’s first Shari’ah compliant REIT reported its maiden results
  • What are some of the biggest Anti-trust cases around?

    Source: Kyith Ng
    Date Submitted: 04 Jan 2017
    Views: 193
    Downloads: 0
    When we look for investments we look for businesses that are monopolistic. This is because they are able to earn more and stops competitors from competing.  As a shareholder, it means the company is able to grow cashflow with ease. Monopolistic companies either due to business economics regulation Is desired but can change with time. Here is a good illustration on some of our past anti-trust cases and one potential future one: Google.
  • How waiting for a good price resulted in me missing out on great company in Thomson Medical

    Source: Kyith Ng
    Date Submitted: 04 Jan 2017
    Views: 248
    Downloads: 0
    Yesterday I came back home to received a news that Peter Lim, after failing to secure Liverpool decided to buy a hospital – Thomson Medical He made the general offer worth $513 million after his private firm Sasteria bought a 39.34 per cent stake in the company from its founder and largest shareholder, Dr Cheng Wei Chen and his family. Dr Cheng and his family sold their shares at $1.75 apiece for about $202 million. This represents a 62% premium above the last traded price. I think those people that have been queuing 1 cent below to get the right price should be kicking themselves now. I have reasons to be sad as well. I blogged about Thomson Medical having a good businss and a likely appreciating dividend. The problem  is that I waited too long to buy into the stock and the price jumped to $1.
  • Find the Dividend Cash King among telecom

    Source: Kyith Ng
    Date Submitted: 04 Jan 2017
    Views: 192
    Downloads: 0
    At Investment Moats, we have profile telecom shares and list out the fundamental reasons why they make good dividend shares (read article here)
  • K-Green Trust with an investor relations reply to falling NAV

    Source: Kyith Ng
    Date Submitted: 04 Jan 2017
    Views: 184
    Downloads: 0
    My understanding is that K-Green Trust do not own the assets but is a 15 year concession with the option to renew for another 15 years. I believe the concession for the other 2 assets is longer. Based on accounting, the concession will need to be amortized throughout this 15 years. How does K-Green trust then maintainened the NAV of the trust? If NAV is not maintain wouldn’t it be paying back the investors original assets back to them across 15 years?
  • Starhub garners great first quarter result 2011

    Source: Kyith Ng
    Date Submitted: 04 Jan 2017
    Views: 187
    Downloads: 0
    I regretted selling 4 lots of my Starhub shares. I never got to pick them up at a lower price so this makes a great case study for those who sold off wanting to collect at a lower price.
  • SingPost: Will logistics expansion dim its attractiveness as a dividend stock?

    Source: Kyith Ng
    Date Submitted: 04 Jan 2017
    Views: 191
    Downloads: 0
    SingPost this week announce its 4th quarter and full year results. Not many highlights except that domestic mail continues to decline and SingPost is looking into expanding overseas into more logistics.
  • How Will Rising Interest Rates Could Dampen Investments in REITs

    Source: Kyith Ng
    Date Submitted: 04 Jan 2017
    Views: 431
    Downloads: 0
    Since the 2007-2009 recession, countries around the world’s interest rates were lowered to very low levels to stimulate each countries’ economies.
  • S&P 500 trend intact. But watch out for trend changes

    Source: Kyith Ng
    Date Submitted: 04 Jan 2017
    Views: 145
    Downloads: 0
    Trading with the trend is a very big part of my strategy so its always wise to take a look at how the weekly charts are.
  • Sell down in commodities!

    Source: Kyith Ng
    Date Submitted: 03 Jan 2017
    Views: 146
    Downloads: 0
    I wonder if any of you guys were caught buying on a high in crude oil and silver or gold. The scale of the correction took me by surprise and that says a lot consider we have seen big corrections in the past for gold and silver.
  • A new Straits Times Dividend Index to be created. Singapore Dividend ETF Soon likely

    Source: Kyith Ng
    Date Submitted: 03 Jan 2017
    Views: 197
    Downloads: 0
    Just got wind that SGX and SPH and FTSE will be working to create a Straits Times Index Dividend Index to facilitate the creation of new investment products. The index represents the cumulative value of ordinary dividends paid by the stock components of the 30-member benchmark index, the Straits Times Index, and will pave the way for “creating products like derivatives, tracker funds, exchange-traded funds and other structured products,” according to a statement sent to the exchange. The benchmark has gained 10% this year. The dividend index will run on a calendar year basis with reviews in March and September to take into account any changes in the index components, according to the statement.
  • The world of suing the shit out of your competitors

    Source: Kyith Ng
    Date Submitted: 03 Jan 2017
    Views: 190
    Downloads: 0
    Having wonderful products doesn’t just cut it for today’s tech heavy weights such as Google, Apple and Microsoft. Another part of the business is to sue the shit out of each other:
  • Warren Buffett and Bill Gates are bullish on uranium

    Source: Kyith Ng
    Date Submitted: 03 Jan 2017
    Views: 311
    Downloads: 0
    We have much negative sentiments due to the earthquake situation in Japan causing problems with the nuclear power plants in Japan. This resulted in a lot of misgivings about using nuclear as a power source long term.
  • Warren Buffett and Ajit Jain talks value investing and business in India

    Source: Kyith Ng
    Date Submitted: 03 Jan 2017
    Views: 458
    Downloads: 0
    India’s business student have a great opportunity to learn business from not just Warren Buffett and Ajit Jain, one of the favored sons to take over Berkshire Hathaway.
  • OCBC,UOB and DBS are the world’s strongest banks

    Source: Kyith Ng
    Date Submitted: 03 Jan 2017
    Views: 187
    Downloads: 0
    OCBC, UOB, DBS
  • Watch Google IO 2011 Keynote Day 1

    Source: Kyith Ng
    Date Submitted: 03 Jan 2017
    Views: 194
    Downloads: 0
    One thing that gets me excited this week is Google IO. Google IO is a technology event held annually where Google showcase their latest technology.
  • Buying opportunity for Innotek? 9% yielding manufacturing stock

    Source: Kyith Ng
    Date Submitted: 03 Jan 2017
    Views: 193
    Downloads: 0
    I bought my fair share of manufacturing dividend stocks in the past and what I learn from them is that to benefit from them you had to have enough margin of safety.
  • Singtel Declares Dividend Yield of 8.2%! Sustainable?

    Source: Kyith Ng
    Date Submitted: 03 Jan 2017
    Views: 180
    Downloads: 0
    Singtel just declared their 4th quarter 2011 results and full year results. Among the highlight is that they are boosting their dividends from 14.8 cents to 25.8 cents. This is made up of a regular dividend of 15.8 cents and a special dividend of 10 cents. A total of 19 cents will be paid out this time. At the current price of $3.16, the yield inclusive of this special dividend is 8.16%. Without this 10 cent special dividend, the 15.8 cents dividend represents a dividend yield of 5%. In finding the dividends cash king, I talk about Singtel paying out much less of their free cash flow compare to Starhub and M1, and have more room to grow. The question on everyone’s mind is that are they paying out too much to make Singtel attractive as a stock?
  • Long Term Market Analysis: Continuation? (14 May 2011)

    Source: Kyith Ng
    Date Submitted: 03 Jan 2017
    Views: 147
    Downloads: 0
    long term market analysis attempts to identify the general trend the market, whether bullish or bearish. stay vested when trend is bullish and trigger downside controls when trend is bearish
  • China Mobile a potential international dividend aristocrat? $CHL $VOD

    Source: Kyith Ng
    Date Submitted: 03 Jan 2017
    Views: 207
    Downloads: 0
    I got to know about China Mobile as a dividend stock while research some of the top international telecom dividend companies in the world. China Mobile was an asia representative and what caught my attention is that it mirrors that of Vodafone. Singapore investors would be glad to know that you can easily trade or get invested into China ADRs such as China Mobile on the SGX via your brokerages such as POEMS, Kay Hian and Lim and Tan. You can get dividends from this ADRs as well, but from what I Know with-holding taxes on dividends still applies. Dividend Aristocrats index measures the performance of large cap, blue chip companies within the S&P 500 that have followed a policy of increasing dividends every year for at least 25 consecutive years. So to say that China Mobile has the potential to be a dividend aristocrat would be saying that it has the capability of increasing free cashflow consistently manage debt to asset ratio for the longterm sustainable business model and business economics Lets take a look if fundamentally China Mobile is able to satisfy that.
  • SingPost CEO Ng: Why focus on revenue?

    Source: Kyith Ng
    Date Submitted: 03 Jan 2017
    Views: 177
    Downloads: 0
    I read in The Edge today SingPost’s CEO for their postal service mentioning that their mail business after their expansion into logistic business will make up 50% of revenue. Its strange that the CEO chooses to focus on the revenue makeup rather than the profit make up.
  • Singapore High Yield Dividend Stocks for Income

    Source: Kyith Ng
    Date Submitted: 03 Jan 2017
    Views: 139
    Downloads: 0
    What a lot of people would like is to have high yielding dividend stocks (4%-10%) to compliment their growth stocks or to provide passive income.
  • SIA Engg a good dividend income stock

    Source: Kyith Ng
    Date Submitted: 03 Jan 2017
    Views: 190
    Downloads: 0
    SIA Engg declares its 4th quarter and full year 2011 results. Nothing spectacular about it but the statements does show a lot of positives why it can potentially be an income growth stock.
  • Mint.com’s Aaron Patzer explains the importance of a simple and objective user experience in design

    Source: Kyith Ng
    Date Submitted: 03 Jan 2017
    Views: 186
    Downloads: 0
    I blogged in my investment blog some time last week pointing to readers a business example of why Mint was able to become a more valuable personal finance company compared to Wesebe. I used Quicken for 7 years and have around 7 years of Quicken data and sad to say I am pretty much tied in to it. This is where Quicken’s parent is a good company to invest in as for a user like me its difficult to switch to another platform unless it promise that it will have no problems importing my 7 years of data. But one thing Quicken fared badly is that, they come out with  a new version every year, yet you can’t tell the freaking difference between each version. To make matters worse, it requires some intellect to start using this Quicken to help you. That is probably why Mint.com took off. It got so successful that Quicken’s owner bought it up. And now Mint.com’s owner is task with correcting the so call problems he highlighted in the first place.
  • Incumbents focus on defense business strategies, but they forget about new entrants

    Source: Kyith Ng
    Date Submitted: 03 Jan 2017
    Views: 197
    Downloads: 0
    I always had interesting conversation with a colleague of mine regarding why Apple was able to so dominate the incumbents. His focus is always that the incumbents will need to place a large focus on innovation. My case is always that the incumbents have their hands pretty much tied because they have a very different battle. They need to battle each other based on cost and market share. There is too much of a risk cannibalizing their own product. Harvard Business Review have a good article on this:
  • Eng Wah May be relisted as a property stock. Will Cinemas still be around?

    Source: Kyith Ng
    Date Submitted: 03 Jan 2017
    Views: 181
    Downloads: 0
    The Edge today had an article on the developments in Eng Wah. To cut the long story short, Eng Wah or Transcu now, is more of a mis of Eng Wah Cinemas and property.
  • First REIT Announces Acquisition and Rights Issue

    Source: Kyith Ng
    Date Submitted: 03 Jan 2017
    Views: 196
    Downloads: 0
    First REIT announces the acquisition of 2 properties: Mochtar Riady Comprehensive Cancer Centre (MRCCC) – SGD 170 mil Siloam Hospitals Lippo Cikarang (SHLC) – SGD 35 mil This will be funded by issuing 345 mil shares for a gross proceed of SGD 172 mil and long term debt financing for SGD 50 mil Rights Issue price will be SGD 0.50 Rights Ratio will be 5 for 4 Implied TERP – SGD 0.70 per unit discount to TERP – 28.57% discount to closing price – 47.37%
  • Saving and Investing My Money:Support your spouse for education

    Source: Kyith Ng
    Date Submitted: 03 Jan 2017
    Views: 117
    Downloads: 0
    I came across this really nice reader story on Get Rich Slowly that I would like to share with everyone. It is about how a wife who is better educated is supporting her husband to pursue an education to better equipped himself to get a career.
  • First REIT’s Short Operating Lease Explained

    Source: Kyith Ng
    Date Submitted: 03 Jan 2017
    Views: 184
    Downloads: 0
    Yesterday I updated that First REIT will be doing a 5 for 4 rights issue to fund the purchase of 2 Indonesian hospitals. A concern on these 2 properties are that listed in the information is that the lease for these 2 properties for operation is for 15 years. Under current assets, there are properties whose lease is also for 15 years. The common understanding is that this lease enables First REIT to operate on these land leases for only 15 years, subsequently it has to be renewed so that they can continue operations. Of course this comes at a cost and a risk as well, as the government can always not grant renewal which would really jeapodised operations. I was pretty puzzled by this lease term issue so I emailed investor relations and First REIT as always, provided a prompt reply. My initial question was for leasehold properties would eventually need to be renewed at the expense of new capital outlay. If that is the case new rights issue will have to be carried out.
  • Telkom plan to buy back SingTel’s Telkomsel shares: What is the impact on SingTel?

    Source: Kyith Ng
    Date Submitted: 03 Jan 2017
    Views: 181
    Downloads: 0
    Telekomunikasi Indonesia, Indonesia’s biggest telecom firm plans to buy back the 35% percent stake in Singtel’s subsidiary Telkomsel.
  • Starhub holds steady for third quarter 2010

    Source: Kyith Ng
    Date Submitted: 03 Jan 2017
    Views: 273
    Downloads: 0
    The set of results for Starhub looks normal but for me, I am more interested in its operations rather than its financial health, which I know, can’t actually change much. And true enough it didn’t veer far from last quarter. So lets get those ratio analysis out of the way. Net profit stays almost the same (82 mil vs 85 mil in 2009) EBITDA margin feel to 32% from 33%. Free Cashflow is 78 mil vs 115 mil. Drastic reduction but it is due to increase capex from 43 mil (2nd qtr)  to 73 mil (3rd qtr) Dividend for this quarter was 85 mil. This means that this quarter there are increase in borrowings as a result of this. Definitely they are not making enough to cover this 85 mil of div with only 78 mil of cashflow.
  • Drawing Similarities between Shorting Pitney Bowes and SingPost

    Source: Kyith Ng
    Date Submitted: 03 Jan 2017
    Views: 181
    Downloads: 0
    Postage meters are a highly regulated industry by governments in their respective countries. This provides companies within the industry with significant barriers to entry and limits competition. PBI’s only true competitor globally is Neopost [EPA:NEO], a French company that has emerged as a scrappy market share gainer in the U.S. and in Europe. Neopost has been much more aggressive on price relative to PBI, which has been the primary reason for changes in market share, as there appears to be little distinction between machines. PBI’s long history and brand recognition have slowed this process as many domestic post office managers are simply accustomed to ordering from PBI, but a name alone will not halt this process. Neopost is gaining share. To make matters worse, it would appear that management is responding to competitive pricing pressures with even more aggressive discounts, resulting in a price war between the two industry bellwethers. We have seen this movie before, and it doesn’t have a happy ending. The result is likely to be deteriorating revenue trends and margins at both companies.
  • National Health Investors’ REIT draws comparison to First REIT in Singapore

    Source: Kyith Ng
    Date Submitted: 03 Jan 2017
    Views: 194
    Downloads: 0
    National Health Investors (NHI) is a REIT that invests in income-producing properties in the health care industry. Net income has been fairly erratic. The regular dividend has increased by an average of 5% annually, and NHI also offers a special dividend during certain years. (The dividend graph below excludes the special dividend of 2010 because it is not known.) The current yield is over 5%. The balance sheet is exceptionally strong. With the recent run-up in price, I currently find NHI to be mildly overvalued, but worth keeping an eye on.
  • STX OSV Holdings Limited: 4.5% Dividend Yield and Low Payout Ratio?

    Source: Kyith Ng
    Date Submitted: 03 Jan 2017
    Views: 173
    Downloads: 0
    Here is a detailed initiation report from DBS Vickers on STX OSV Holdings. Learn about its business and whether it could be a potential stock to invest in.
  • S&P500’s bearish move today

    Source: Kyith Ng
    Date Submitted: 03 Jan 2017
    Views: 151
    Downloads: 0
    This morning there was a 2.3% drawdown on the S&P 500. For the past month, prices have been drifting lower in a consolidation pattern. The breakout last few days looks bullish. But this was followed by today’s drawdown.
  • Cache Logistic Trust Purchases China Warehouse

    Source: Kyith Ng
    Date Submitted: 03 Jan 2017
    Views: 203
    Downloads: 0
    It looks like the sponsor has started offloading. The gearing of this warehouse trust has gone up to 29%. If the pace of acquisition continues we could see it being geared at 40% by the end of the year. Yields could inch up to 9%
  • Explaining Recency Bias in Stock Market Investing

    Source: Kyith Ng
    Date Submitted: 03 Jan 2017
    Views: 196
    Downloads: 0
    Part of the reason big money is made in growth themes and distress themes is because they are so ignored that the early investors and players made the most.
  • Free Online Investment Stock Portfolio Tracker Spreadsheet

    Source: Kyith Ng
    Date Submitted: 03 Jan 2017
    Views: 221
    Downloads: 0
    The stock portfolio tracker is a FREE Google Spreadsheet hosted at Google
  • Bad Business Trust Share Performance: HPH Trust and Perennial China Retail Trust

    Source: Kyith Ng
    Date Submitted: 03 Jan 2017
    Views: 179
    Downloads: 0
    Folks reading this blog would know that I got into HPH during IPO and turns out that this punt fell utterly apart when it crashed from IPO price of USD 1.01 to USD 0.95.
  • Long Term Market Analysis: Prolong Drawdown in Singapore and S&P 500 $SPY $EWS

    Source: Kyith Ng
    Date Submitted: 03 Jan 2017
    Views: 155
    Downloads: 0
    The key here is that since our last analysis in May, Singapore markets have been doing what I have highlighted, which is hanging around and drifting lower.
  • Auto Update Stock Prices from Yahoo Finance into Google Spreadsheet

    Source: Kyith Ng
    Date Submitted: 03 Jan 2017
    Views: 161
    Downloads: 0
    We carried out some changes to our Stock Portfolio Tracker. Initially, we thought automating price update daily with stock symbol from Google Finance was a good idea.
  • 8 Singapore Stocks to watch during a bear market

    Source: Kyith Ng
    Date Submitted: 03 Jan 2017
    Views: 191
    Downloads: 0
    I took this weekend to draw up a list of stocks that would buy should there be a massive drawdown in the market. They are what I think are fundamentally sound and could be massively mispriced in a bear market.
  • Reviewing your overall mobile, broadband and cable plans to optimize cost

    Source: Kyith Ng
    Date Submitted: 03 Jan 2017
    Views: 131
    Downloads: 0
    So my brother (the other breadwinner) will likely be moving out of our flat soon. That means alot of thing to me but for one thing it is that I would need to juggle the household expenses by myself.
  • Singtel: Oversold? Ripe for bounce? Or back to $2.90?

    Source: Kyith Ng
    Date Submitted: 03 Jan 2017
    Views: 158
    Downloads: 0
    Market have been relentless! I feel that 3.06 will be important for Singtel.
  • Starhub and Singtel presents opportunity. M1 is strong!

    Source: Kyith Ng
    Date Submitted: 03 Jan 2017
    Views: 143
    Downloads: 0
    We wrote that 3.06 on Singtel is pretty significant and on Friday it reached 3.01.
  • Research in Motion down 20% today. Value play or value trap? $RIMM

    Source: Kyith Ng
    Date Submitted: 03 Jan 2017
    Views: 140
    Downloads: 0
    I don’t use the Blackberry, but being a techie I cannot understand how RIMM can still be relevant.
  • First REIT’s land lease info: Hak Guna Bangunan (HGB) Rights

    Source: Kyith Ng
    Date Submitted: 03 Jan 2017
    Views: 383
    Downloads: 0
    I was debating with Nick and YYT about the details of REITs as trusts and went back to my past correspondence with First REIT’s investor relations.
  • Increasing Capital Expenditure Problem for Telecoms $T, $VZ, $TEF

    Source: Kyith Ng
    Date Submitted: 03 Jan 2017
    Views: 194
    Downloads: 0
    A lot of people would choose to see that the model of telecom in Singapore (Singtel, M1, Starhub) is that of a business model that wouldn’t die and would only flourish when the whole of Singapore uses data-intensive smartphones like iPhones, iPads and Android phones and tablets.
  • Starhub decides to hike cable tv subscription price by $2

    Source: Kyith Ng
    Date Submitted: 03 Jan 2017
    Views: 146
    Downloads: 0
    Readers would have remember that I was talking about changing my cable tv plans to reducing the expense cost in this area. Yesterday we got wind of announcement that Starhub will be raising their cable tv service by $2 per month.
  • Long Term Market Analysis: The important 43 Week MA $SPY $EWS

    Source: Kyith Ng
    Date Submitted: 03 Jan 2017
    Views: 145
    Downloads: 0
    Well what a week it has been. I haven’t been able to blog much compared to last week but I sort of find that using a weekly moving average is bad for trading but great for positioning for the long term.
  • First REIT buys South Korea Hospital. South Korea–Land of 9% net property yield?

    Source: Kyith Ng
    Date Submitted: 03 Jan 2017
    Views: 353
    Downloads: 0
    One of my favorite real estate investment trust First REIT purchased South Korea’s Sarang Hospital.
  • A Detail Report on Singtel and its Telco Subsidiaries

    Source: Kyith Ng
    Date Submitted: 02 Jan 2017
    Views: 347
    Downloads: 0
    Now here is a report from IIFL that I would like to bring to your attention. If you want to know more about the prospects of Singtel as a regional telecom player, here is a report that package everything together.
  • Is Optus such a bad investment for Singtel and would it ever be considered a shrewd investment?

    Source: Kyith Ng
    Date Submitted: 02 Jan 2017
    Views: 308
    Downloads: 0
    So I was debating with my friend on Optus which was purchased by Singtel in 2001. Its been 10 years since then so we could probably assess how well it has done for Singtel.
  • M1 Limited best loved stock by analysts

    Source: Kyith Ng
    Date Submitted: 02 Jan 2017
    Views: 184
    Downloads: 0
    There is something about M1’s growth that drives analysts crazy. Not one of the analyst has a bad thing to say about it.
  • High China Interest Rates may be a reason why S-Chips prefer rights issues than taking on debts.

    Source: Kyith Ng
    Date Submitted: 02 Jan 2017
    Views: 205
    Downloads: 0
    Here is a chart on China interest rates. The base interest rate is nearly 5%. To operate in China and borrow money, the cost is high. Perhaps that is why they would prefer to do rights issue according to Nick.
  • Long Term Market Analysis: Equities Toppish, Gold and Silver Bull! $GDX $SPY $SLV

    Source: Kyith Ng
    Date Submitted: 02 Jan 2017
    Views: 157
    Downloads: 0
    Drizzt: long term market analysis is a series once or twice a month where we take a look at longer term trends in the market to get our bearings right on the general direction of prices.
  • Asia Enterprise Holdings (AEH)–Conservative Steel Stockist.

    Source: Kyith Ng
    Date Submitted: 02 Jan 2017
    Views: 367
    Downloads: 0
    Asia Enterprise Holdings (AEH) is a steel stockist listed on Singapore Stock Exchange. I first got to know it during its IPO, but I classified it with Telechoice as those Singapore smallcaps that earns 5-7% dividend yield.
  • First REIT: Adam Road disposal, Korean Acquisition and 2 Indo hospital contribution

    Source: Kyith Ng
    Date Submitted: 02 Jan 2017
    Views: 198
    Downloads: 0
    First REIT announced its second quarter results ended 30 June. distributable income jumped 86.5%. This is nothing surprising as contribution from the Mochtar Riady Comprehensive Cancer Centre and Siloam Hospitals Lippo Cikarang.
  • Learning from Charlie Munger on value investing and life

    Source: Kyith Ng
    Date Submitted: 02 Jan 2017
    Views: 145
    Downloads: 0
    I came across this summary that I have to mention here. Kudos to The Inaculated Investor for summarizing the conversation Charlie Munger have on the current economy, investing, WESTCO and life in general.
  • Dairy Farm–The STI Singapore Stock that doesn’t drop even during recession!

    Source: Kyith Ng
    Date Submitted: 02 Jan 2017
    Views: 376
    Downloads: 0
    I knew Dairy Farm as a stock for sometime and have known that it is relatively less volatile then most of the other stocks.
  • David Rosenberg: Prepare your portfolio to be ready for recession

    Source: Kyith Ng
    Date Submitted: 02 Jan 2017
    Views: 139
    Downloads: 0
    I came across this summary from Barry Ritholtz site on what David Rosenberg, a mega bear recommends investors to be ready in the event of a recession. How ready is my portfolio then?
  • Aims Amp Ind REIT, Sabana REIT and Cache Log Trust latest quarter results

    Source: Kyith Ng
    Date Submitted: 02 Jan 2017
    Views: 206
    Downloads: 0
    No big issues there with these 3 REITs that I own.
  • Micro-Mechanics voted best investor relations and most transparent small cap

    Source: Kyith Ng
    Date Submitted: 02 Jan 2017
    Views: 514
    Downloads: 0
    Now this is something worth talking about. Micro-Mechanics is a stock that was brought to our attention by Donmihaihai.
  • What the stock chart doesn’t tell you: Dividends and Spin-offs

    Source: Kyith Ng
    Date Submitted: 02 Jan 2017
    Views: 176
    Downloads: 0
    I have to thank Nick for highlighting this article to me. We often first-hand stereotype stocks based on the historical price movement. Take the example of this shipping stock Frontline (FRO). An observation of this stock from 2001 to 2011 will lead us to conclude that this stock is made for traders rather than investors because had you held on for 10 years you wouldn’t have made much.
  • Comprehensive analysis on listed toll roads, bridges and tunnels around the world

    Source: Kyith Ng
    Date Submitted: 02 Jan 2017
    Views: 199
    Downloads: 0
    Here is an article on Seeking Alpha that I would like to bring to your attention. Toll roads can be classified as an infrastructure asset that acts like a 30 year bond like the stream of income.
  • 5 positive factors to value add to your telecom investing knowledge through listening to conference call or transcripts

    Source: Kyith Ng
    Date Submitted: 02 Jan 2017
    Views: 150
    Downloads: 0
    Probably not many investors take to reading transcripts of conference calls after a company release their results. However, I urge investors to read or listen in to a few of these conference calls because there are a few things you can learn from these transcripts or conference calls.
  • Superb 2nd Quarter 2011 Free Cash Flow from Starhub

    Source: Kyith Ng
    Date Submitted: 02 Jan 2017
    Views: 330
    Downloads: 0
    I think readers of my blog would have seen quite a fair bit of posts on Singapore Telecom shares Singtel, Starhub and M1 Limited.
  • Long Term Market Analysis: World Stock Markets Biggest Fell since 2008 $SPY $EWS

    Source: Kyith Ng
    Date Submitted: 02 Jan 2017
    Views: 149
    Downloads: 0
    Drizzt: long term market analysis is a series once or twice a month where we take a look at longer term trends in the market to get our bearings right on the general direction of prices.
  • 11 ultimate money management tips that will help you navigate a bear market

    Source: Kyith Ng
    Date Submitted: 02 Jan 2017
    Views: 146
    Downloads: 0
    Bear markets are part and parcel of investing. They can be viewed as a healthy rebalance back to equilibrium and shouldn’t be viewed as something super negative. Delaying it will cause more pain than good.
  • Singtel Quarter 1 2011 Analysis

    Source: Kyith Ng
    Date Submitted: 02 Jan 2017
    Views: 179
    Downloads: 0
    SingTel announces a set of weaker Q1 profit statements despite growing to a larger subscriber base.
  • Telecom Investing: Moving beyond Tiered Pricing and Charging by Services Rendered

    Source: Kyith Ng
    Date Submitted: 02 Jan 2017
    Views: 145
    Downloads: 0
    It's an exciting week but let's not get ourselves distracted. Some fundamental knowledge about the telecoms we are investing is important.
  • Sabana, Mapletree Industrial and Ascendas India added to Dividend Stock Tracker

    Source: Kyith Ng
    Date Submitted: 02 Jan 2017
    Views: 203
    Downloads: 0
    We added 3 stocks to our Dividend Stock Tracker this week. I am sure with the recent market volatility you will be interested to know whether any of your REITs being monitored have reached good valuations.
  • What does a potential $1bil Manchester United SGX IPO means to MUFC fans

    Source: Kyith Ng
    Date Submitted: 02 Jan 2017
    Views: 403
    Downloads: 0
    Well I wasn’t expecting that SGX was able to attract one of the biggest football club in the world, Manchester United to list on the Singapore Stock Exchange.
  • Price actions are very negative currently $SPY

    Source: Kyith Ng
    Date Submitted: 02 Jan 2017
    Views: 173
    Downloads: 0
    VIX rose 34%++ and S&P500 did a 4.5% plunge. All in all, it was very negative from what the price sentiments is telling us.
  • Hutchison Port Holdings (HPH): Is this a 10% yield opportunity?

    Source: Kyith Ng
    Date Submitted: 02 Jan 2017
    Views: 195
    Downloads: 0
    Readers of this blog would know that I got 8 lots of HPH at IPO from bidding 11 lots.
  • USPS Collapsing–A good read for SingPost Investors

    Source: Kyith Ng
    Date Submitted: 02 Jan 2017
    Views: 199
    Downloads: 0
    There are a lot of dividend investors looking to pick up SingPost at a lower price. Current price of $1.03 is near the price that I got vested last year.
  • Long Term Market Analysis: Odds of a bear market trend versus a correction is higher and higher $SPY $EWS

    Source: Kyith Ng
    Date Submitted: 02 Jan 2017
    Views: 164
    Downloads: 0
    Drizzt: long term market analysis is a series once or twice a month where we take a look at longer term trends in the market to get our bearings right on the general direction of where market prices is going.
  • Investment Moats Portfolio Changes

    Source: Kytih Ng
    Date Submitted: 02 Jan 2017
    Views: 373
    Downloads: 0
    Currently I am in nearly 80% cash, although I was 40% in stocks at different stages of the month.
  • How negative is OCBC?

    Source: Kyith Ng
    Date Submitted: 02 Jan 2017
    Views: 189
    Downloads: 0
    Here is a chart of OCBC. Notice that the price corrects above to the intersection of the 400 day moving average and the congregation of shorter moving averages and then moves downwards.
  • Learning business lessons from the military: Interview with Foot Locker’s CEO

    Source: Kyith Ng
    Date Submitted: 02 Jan 2017
    Views: 217
    Downloads: 0
    I really like this series from Harvard Business Review which focus on what you can learn from lessons from the military. I kept hearing stories of ex-regulars coming out of the army not fitting in and wonders how true that is. This article focus a lot on retail industry and what Ken Hicks beliefs in leadership and rewards.
  • Why you should read First REIT’s rights offer circular if you are interested in Healthcare REITs

    Source: Kyith Ng
    Date Submitted: 02 Jan 2017
    Views: 466
    Downloads: 0
    I always thought that First REIT is a small REIT that not much investors in Singapore hears of. And for small companies, their disclosure is minimal to the extend that they seem to only want to comply with SGX or accounting disclosures and be done with it. So it is to my surprise that for their rights issue to purchase 2 more hospitals, their circular release is so comprehensive that you can get an education of the healthcare sector in Indonesia! You can download and read the full part 2 of the circular here. A summary of covered topics: Indonesia Healthcare Status Healthcare Expenditures as a part of GDP Healthcare Infrastructures Drivers of the healthcare services market and their impacts Regulatory Framework and Government Policy Review Overview of Jakarta’s Oncology and Accident and Emergency Space Overview of Mochtar Riady Comprehensive Cancer Center and Siloam Hospitals Lippo Cikarang Master Leases Assessment of acquisition
  • REITs Land Lease Renewal and Extension

    Source: Kyith Ng
    Date Submitted: 02 Jan 2017
    Views: 405
    Downloads: 0
    We mentioned in the past that Indonesian lease renewal and extension looks to be extremely cheap.
  • Dave Ramsey and Suze Orman hates Whole Life Insurance Videos

    Source: Kyith Ng
    Date Submitted: 02 Jan 2017
    Views: 165
    Downloads: 0
    Sometimes I cannot stand these kind of personal finance shows, and probably because of that I didn’t watch a lot of them. But I watched these shows upon the recommendation on Mr Tan Kin Lian. I have voiced my opinion on term life insurance vs whole life insurance in my insurance philosophy. But these 2 personal finance guru is much more negative then me. It looks like they are on a campaign to kill off Whole Life Insurance. It pays to know more about Term Life Insurance and Whole Life Insurance. At Investment Moats we try to link you to as much of these as possible.
  • Why REITs and Business Trust are not always good investments

    Source: Kyith Ng
    Date Submitted: 02 Jan 2017
    Views: 467
    Downloads: 0
    valuebuddies.com is probably the place you want to be if you are into fundamental analysis. And the most interesting discussion that I was informed taking place is a discussion on REITs valuation. One respected forumer d.o.g. made some great comments and I just find that I need to highlight them to investors that never had to experience what happen in the credit crunch in the 2007-2008 bear market. Back then, a lot of REITs did rights issue because the cost of getting debts refinancing is so high that it doesn’t make sense for REITs. It soft of highlights a lot of negatives of REITs. But the general idea d.o.g. is driving across is that REITs can be good or bad, depending on how an investor evaluates fundamentals and valuation. The general consensus is that REITs exist to benefit the sponsers to cash out on it to get money and lessen risks rather than benefit the owners.
  • What is the competitive advantage of thrift shops like Daiso

    Source: Kyith Ng
    Date Submitted: 02 Jan 2017
    Views: 509
    Downloads: 0
    I had a 2 days good break currently from work. Well, make that 1.5 days since there was an emergency meeting this afternoon so I have to freaking be back in office. I went to take a look at another nearby mall in Seng Kang and am surprised to find that there is a Daiso in Seng Kang! What is a Daiso?
  • How to budget with envelope budgeting to save money easily

    Source: Kyith Ng
    Date Submitted: 02 Jan 2017
    Views: 140
    Downloads: 0
    Many people have asked me what kind of budgeting method I find is the most effective in budget planning. I don’t think they deviate much but the one that I find the most effective is Envelope Budgeting.
  • Investing in the economic moat of toll roads – China Merchant Pacific (CMPacific)

    Source: Kyith Ng
    Date Submitted: 02 Jan 2017
    Views: 416
    Downloads: 0
    China Merchant Pacific (CMPacific) is a subsidiary of China Merchant Group. This holding company primarily acquires toll roads and operates them to earn a meaningful cash flow.
  • Term Life Insurance to solve the problem of Singaporeans Underinsured? The problem is the Agents and the Insurer!

    Source: Kyith Ng
    Date Submitted: 01 Jan 2017
    Views: 145
    Downloads: 0
    This week’s The Edge Magazine Personal Wealth discusses that in a 2011 AIA Singapore Nationwide Protection Survey, it highlighted that only one in 10 Singaporeans is deemed to be adequately insured while nearly one in 4 perceived insurance is too costly.
  • Short Term Wedge Formation on S&P500

    Source: Kyith Ng
    Date Submitted: 01 Jan 2017
    Views: 168
    Downloads: 0
    The decision here looks simple. Today’s price action looks like a move to trap the bears. Note the tight rising concentration surrounded by the red lines. This presents a good short term trade to long and where profit taking can occur. The cut loss will be if the region of 1140 gets breached convincingly.
  • The erosion of telecom margins: Will mobile operators like Singtel, M1 and Starhub lose to Google and Apple?

    Source: Kyith Ng
    Date Submitted: 01 Jan 2017
    Views: 157
    Downloads: 0
    Readers at Investment Moats will be familiar that I have highlighted a few articles in the past that what you think is a business model with a strong economic moat enhanced by the smartphone revolution might kill telcos like Singtel, M1 and Starhub more than enhanced them.
  • TradingView live chart technical analysis tool for finance bloggers

    Source: Kyith Ng
    Date Submitted: 01 Jan 2017
    Views: 165
    Downloads: 0
    This morning I discovered a new chart plotting data service that may help bloggers like me. It enables us to publish and share price charts with our technical analysis easily.
  • First REIT inflation risk explained again

    Source: Kyith Ng
    Date Submitted: 01 Jan 2017
    Views: 476
    Downloads: 0
    So I wrote in to First REIT’s in the past to enquire about earthquakes and inflation, 2 very common thing in Indonesia. Victor from First REIT gave me a good breakdown on that here.
  • Should you stop dollar cost averaging stocks in this correction / bear market?

    Source: Kyith Ng
    Date Submitted: 01 Jan 2017
    Views: 265
    Downloads: 0
    So we know that you have a Philips Share Builder plan from Philips Securities, which essentially lets investors dollar cost average into certain Singapore blue chip stocks.
  • DTAC Total Access Communications a potential good telecom dividend yielder

    Source: Kyith Ng
    Date Submitted: 01 Jan 2017
    Views: 211
    Downloads: 0
    Many investors interested in telco stocks like Singtel, M1 Limited and Starhub are waiting for the prices of these 3 stocks to come down before accumulating.
  • Bear Flag formation still shows market indecision

    Source: Kyith Ng
    Date Submitted: 01 Jan 2017
    Views: 175
    Downloads: 0
    We have the 2 day FOMC meeting and the end result is 1. We didn’t make it pass the 50 day EMA. It is very obvious that is the resistance there 2. The bearish flag formation made by the 2 red lines still continues to form. This formation typically resolves to the down side.
  • Long Term Market Analysis: PMO turns negative

    Source: Kyith Ng
    Date Submitted: 01 Jan 2017
    Views: 179
    Downloads: 0
    Drizzt: long term market analysis is a series once or twice a month where we take a look at longer term trends in the market to get our bearings right on the general direction of where market prices is going.
  • Macquarie International Infrastructure Fund (MIIF)’s a high yield attractive play currently

    Source: Kyith Ng
    Date Submitted: 01 Jan 2017
    Views: 394
    Downloads: 0
    I decide to relook into MIIF, now that they have increase the stake in TBC and price have fallen 17%.
  • MIIF’s Taiwan Broadband Communication: Pretty Impressive growth

    Source: Kyith Ng
    Date Submitted: 01 Jan 2017
    Views: 468
    Downloads: 0
    I mentioned yesterday that Macquarie International Infrastructure Fund (MIIF) may be an attractive proposition.
  • Another important short term signed? $SPY

    Source: Kyith Ng
    Date Submitted: 01 Jan 2017
    Views: 172
    Downloads: 0
    We have a really strong day yesterday in Europe and Asia. And look set for another great day in US. But late last night there was a strong retreat.
  • S&P 500 Short Term Rally fails $SPY

    Source: Kyith Ng
    Date Submitted: 01 Jan 2017
    Views: 178
    Downloads: 0
    Just like what I talked about yesterday, the inability to stay above the 20 day EMA seems to signify a change in short term trend.
  • Long Term Market Analysis: Bulls need a strong countertrend

    Source: Kyith Ng
    Date Submitted: 01 Jan 2017
    Views: 167
    Downloads: 0
    Drizzt: long term market analysis is a series once or twice a month where we take a look at longer term trends in the market to get our bearings right on the general direction of where market prices is going.
  • China Merchants buys new toll road; plans more acquisitions, placements

    Source: Kyith Ng
    Date Submitted: 01 Jan 2017
    Views: 199
    Downloads: 0
    Jiang Yanfei, CEO of toll-road operator China Merchants Holdings (Pacific) (CMHP), is on a fundraising drive to finance the recently completed acquisition of the Yongtaiwen expressway in eastern China. It is the first time in seven years that the Mainboard listed company has made any acquisition, and Jiang says more such deals could be announced in the next year.
  • Identifying the Business Model of your Dividend Income Stock

    Source: Kyith Ng
    Date Submitted: 01 Jan 2017
    Views: 147
    Downloads: 0
    When investing in stocks for their dividends it is important to know what you are getting yourself into.
  • S&P500 Touches the important 1100 level

    Source: Kyith Ng
    Date Submitted: 01 Jan 2017
    Views: 171
    Downloads: 0
    We touched the 1100 level today. I thought today will be a low key affair when we went to sleep. That was a rude awakening.
  • Singtel willing to sell Telkomsel according to Telkom

    Source: Kyith Ng
    Date Submitted: 01 Jan 2017
    Views: 190
    Downloads: 0
    We mentioned previously that Telkom is forcing Singtel to sell its 35% stake in Telkomsel.
  • Aims Amp Industrial REIT Posts Good 2Q FY2012 Results. Delivers Annualized 10% Yield

    Source: Kyith Ng
    Date Submitted: 01 Jan 2017
    Views: 209
    Downloads: 0
    Followers of my Dividend Stock Tracker have notice that the price is not reflecting well recently. Well this is because Aims Amp did a share consolidation of 5 to 1 and a symbol change.
  • S&P 500 Next Week: Another Week of Lower Lows?

    Source: Kyith Ng
    Date Submitted: 01 Jan 2017
    Views: 179
    Downloads: 0
    Not sure whether it is a coincidence but US market did an about turn at the end of the trading day going below the 20 day EMA. The question is whether the bulls have what it takes to make higher highs.
  • Singapore Press Holdings (SPH) Full Year 2011 Results

    Source: Kyith Ng
    Date Submitted: 01 Jan 2017
    Views: 189
    Downloads: 0
    SPH announce a full year results which looks rather lukewarm. The dividend declared was the lowest in 5 years.
  • S&P 500: Are we going to ding dong again? $SPY

    Source: Kyith Ng
    Date Submitted: 01 Jan 2017
    Views: 175
    Downloads: 0
    Markets did a good job in recent days breaching the lower tops and going above the 50 day moving averages. Right now, we have a resistance at 1220 or so where the markets were unable to move higher.
  • CapitaCommercial Trust Attractive at more than 7% yield Q3 FY2011

    Source: Kyith Ng
    Date Submitted: 01 Jan 2017
    Views: 196
    Downloads: 0
    Commercial Offices Trusts are REITs that I seldom covered, but they have been beaten down pretty badly in this market. Checkout K-REIT, Suntec REIT, CapitaCommercial Trust and their prevailing yields.
  • The day you make it back to zero debt is the best day of your life

    Source: Kyith Ng
    Date Submitted: 01 Jan 2017
    Views: 163
    Downloads: 0
    We heard a lot of people trading on margins, lost a ton of money and never make it back from that ordeal. What if through margin trading, you end up with more than $2 million in debt. How do you turn that shit at a young age into an Angel Investor?
  • Long Term Market Analysis: Are we out of the woods yet? $SPY $AAPL $KO

    Source: Kyith Ng
    Date Submitted: 01 Jan 2017
    Views: 181
    Downloads: 0
    Wow we got a great week that bargain hunters must be feeling great with their purchase last week.
  • Apple ($AAPL) Misses Earnings–Buy on the dip opportunity

    Source: Kyith Ng
    Date Submitted: 01 Jan 2017
    Views: 184
    Downloads: 0
    Apple after hours announces an earnings that beats their forecasts but misses Wallstreet’s consensus. Stock is down 6.14% in after hours trading.
  • M1 Limited Third Quarter Results

    Source: Kyith Ng
    Date Submitted: 01 Jan 2017
    Views: 243
    Downloads: 0
    M1 announces their set of results 2 days ago. The summary of my take on the results is as follows: 1. Revenue was lower, net profit slightly higher 2. Overall operating cash flow position much better than corresponding year 3. Capital Expenditure was much higher due to spending $20 mil on spectrum purchase 4. Short term debts higher as well 5. ARPU per quarter for post-paid and pre-paid are all down 6. International Call, a big revenue contributor was down as well M1 for me is the biggest loser among the local telecom for this move to data messaging.
  • First REIT announces much higher distribution in Q3 2011

    Source: Kyith Ng
    Date Submitted: 01 Jan 2017
    Views: 211
    Downloads: 0
    I been in and out of First REIT because it pays a good dividends and it is not very volatile. I usually hold some of my money there in this volatile time.
  • An Eternal Income Portfolio just like a Living Bridge

    Source: Kyith Ng
    Date Submitted: 01 Jan 2017
    Views: 154
    Downloads: 0
    I came across this very interesting post that introduce us to a Living Bridge. A living bridge is one built from the roots of a tree trained to grow across a small river and take root on the opposite bank.
  • Quick Take on HPH Trust: Analysts touting 9% yield

    Source: Kyith Ng
    Date Submitted: 01 Jan 2017
    Views: 199
    Downloads: 0
    We did an article some time back on HPH Trust. Since then the price went down to a low of 59 cents and came back up at 68 cents. Why is this stock continue to be weak? Analyst are still thinking that there is a good risk versus reward for this.
  • Long Term Market Analysis:Overwhelming Analysis showing market will resume the uptrend

    Source: Kyith Ng
    Date Submitted: 01 Jan 2017
    Views: 170
    Downloads: 0
    Drizzt: long term market analysis is a series once or twice a month where we take a look at longer term trends in the market to get our bearings right on the general direction of where market prices is going.
  • Quick Take on Pertama Holding:Delisting Fails

    Source: Kyith Ng
    Date Submitted: 01 Jan 2017
    Views: 195
    Downloads: 0
    We mention this great stock called Pertama Holdings that runs the Harvey Norman chain in the past. First spotted at 47 cents, its majority share holder Harvey Norman Group wants to take it off the market. However it looks like they have failed in their effort.
  • A way to explain why this rebound was massive

    Source: Kyith Ng
    Date Submitted: 01 Jan 2017
    Views: 201
    Downloads: 0
    I read this piece by John Mauldin this week. Always have for his weekly write ups. Of particular interest is this portion where he tries to explain perhaps why we see such a huge run up this month
  • VOIP iPhone App Viber will kill telcos sooner rather than later

    Source: Kyith Ng
    Date Submitted: 31 Dec 2016
    Views: 212
    Downloads: 0
    I talk about this issue about investing in telcos in past article that in terms of usage, there will be a shift from voice to data.
  • Why is it so difficult for Singaporeans to buy a reasonable priced home when its easy for foreigners?

    Source: Kyith Ng
    Date Submitted: 31 Dec 2016
    Views: 267
    Downloads: 0
    Owning a home to live in has become such a staple of the Singapore lifestyle. Up to a few years ago, housing prices have been reasonably affordable. Lately the price and COV (cash over value) being quoted is absurd. Is it really absurd or is it a matter of progressive inflationary forces that we cannot stop? My fellow blogger la pappillion blogged about his new house purchase at 568K for a flat that is 30 years old with a COV of 40k. That’s a total of 608k. He will be paying 2k per month to service this. My brother is also house hunting and the price he got quoted for a flat near to Buangkok MRT goes in the region of 550k. Buangkok! That’s to a lot of people not living close to be like Jurong West. Yet more of my friends are doing their BOT rounds and trying to find reasonable price flats. Now I am sure for my bro and la pappillion who is upper middle-class they should be able to service this. But if this is a progressive inflationary cycle of life then we would expect their mean salary to be around 5-6k per month. That will fit to using 30% of your income to service housing loans safety limit. If a couple each earns 3k that will make up this 6k total income. If you ask me it is still within the safety limit. There is still money for other things necessary in life. But if a family does not earn that well or only 1 spouse is working, then that one person would really need earn 5-6k per month to ensure mortgage servicing is at a safe limit. So in summary my take is: 1.I been hearing people at age 30 getting 5-6k salary. if that i s the norm then 2k mortgage is not much. 2.1 spouse working can service easily if you make 5-6k (pretty obvious there) 3.We might be blowing things out of proportion here.
  • Value Investing: Why Research In Motion (Blackberry) will unlikely be able to survive Apple and Google’s onslaught in the smartphone war $GOOG $AAPL $RIMM

    Source: Kyith Ng
    Date Submitted: 31 Dec 2016
    Views: 193
    Downloads: 0
    I always have a good argument with my colleague Ah Wei regarding the smartphone and technology industry. Ah Wei have a point of view that based on past case studies of Dell, Nokia, Microsoft and HP’s failure that there are many things that the CEO or COO should do to prevent that from happening. I would say I am more open minded on things that there are a lot of hidden factors that in business, you as a business leader finds it hard to spot and stops their company from maximizing profits or to anticipate competitive trends. Now here is a good article to make it clear once and for all.
  • How to calculate dividend withholding taxes on US ADRs for international investors: My experience with Telefonica

    Source: Kyith Ng
    Date Submitted: 31 Dec 2016
    Views: 205
    Downloads: 0
    Not too long ago I wrote about being invested in Telefonica as an experiment to see how much I will be tax as a international investor investing in US ADRs and how much taxes I will be levied with. To recap: 1.There is a 30% withholding tax on dividends of US Stocks listed on US Stock Exchanges. Last I checked, there is not many ways you can bypass this. 2.The withholding tax currently for Spain, where Telefonica is from is 19% as of this posting (Dec ‘10).This was raised from 15% in Jan 2010 if I am correct. 3.We do not want a situation where our dividends are first taxed 19% at Spain and then 30% more in US before giving to us. I invested 50 shares in Telefonica at a price of USD $61.23.
  • Mint.com Launches Finance Game to Teach Kids–Should Singapore Schools do the same?

    Source: Kyith Ng
    Date Submitted: 31 Dec 2016
    Views: 145
    Downloads: 0
    At Investment Moats, we have profiled that Mint.com be one of the good choices for online personal finance software. What makes Mint.com so good vs the competition is that it is such an innovative company when it comes to not just making their products very usable to users but also provide value added info and training to get you to take control of your finances. Here is a profile of Mint.com’s founder Aaron Patzer’s take on the importance of good design to encourage usability. Today, we got the news that Mint will be partnering with Scholastic to offer a free online personal finance program to middle-school students, teachers and parents. This program will aim to 1.build money management skills at a young age 2.use colorful classroom lesson plans and materials 3.interactive game
  • The one cost that most people failed to budget for: Wedding Gifts!

    Source: Kyith Ng
    Date Submitted: 31 Dec 2016
    Views: 166
    Downloads: 0
    I wonder if you guys have this problem. Some of you diligent folks would have a splendid budget plan like the one I use here. But my question is, do you budget for Wedding Dinner Gift Money? I assume a lot don’t! Simply because you really do not know how many of your friends will get married this particular year. The current prevailing market rate is near SGD120 bucks. And this is one cost that will go up with inflation. Its better if you will get married soon, because you get to “recover” some of these cost. But if you are single, you are in a death spiral because you will just end up giving and giving. But I realise that there is an even worse group: the managers! Imagine you manage a group of 20 something or you are in a senior manager role and a lot of your subordinates invite you. Chances are, you must give enough face thus your Ang Bao would be more than the average. This whole once in a life time elaborate ceremony places stress on the couple as well as the guest at the same time.
  • First REIT Excess Rights Results: I got 2750 excess rights!

    Source: Kyith Ng
    Date Submitted: 31 Dec 2016
    Views: 209
    Downloads: 0
    Folks following this blog would know that I applied for First REIT 5 for 4 rights issue. In addition to that I Applied for 20000 excess rights, paying SGD10,000 for this. Today on the 31st Dec 2010 is the trading day for all these rights and a check on my CDP account shows that I got some excess rights! It’s a welcome surprise because, First REITs is strongly held I feel and not likely to have so much excess rights. My previous experience with Sing Investment was disappointing. Anyway, the 5 for 4 rights issue left me with 250 shares of odd First REIT stock. But a check of my CDP account shows that they have given me a total of 2750 more shares. So 2750/20000 = 13.5% allocation.
  • A Better Society: Matching unemployed with skills to those that have needs and wants

    Source: Kyith Ng
    Date Submitted: 31 Dec 2016
    Views: 150
    Downloads: 0
    I like to think about how we as participants in our local society can make the place better. I really don’t like to complain the whole day about how bad the incumbent political party is or why the government is making the society worse.
  • Asia Enterprise Holdings Q3 2011–Profit Up 28%

    Source: Kyith Ng
    Date Submitted: 31 Dec 2016
    Views: 208
    Downloads: 0
    We profile steel stockist Asia Enterprise Holding in the past here at Investment Moats and I invest a little bit in it.
  • HG Metal Quick Take: How to kill a steel stockist

    Source: Kyith Ng
    Date Submitted: 31 Dec 2016
    Views: 164
    Downloads: 0
    We talked about steel stockist Asia Enterprise Holdings Q3 2011 results yesterday. This week The Edge profiled HG Metal, a steel stockist that got into a bit of an issue during the last financial crisis.
  • China Merchant Pacific (CMHP): Dividend yield on track

    Source: Kyith Ng
    Date Submitted: 31 Dec 2016
    Views: 200
    Downloads: 0
    We profiled and introduce SGX listed chinese toll road operator China Merchant Pacific (CMHP) recently stating that this could become a good dividend income stock.
  • Why would Warren Buffett invest so much in stock purchase this year? $brkb

    Source: Kyith Ng
    Date Submitted: 31 Dec 2016
    Views: 190
    Downloads: 0
    So today we got this article on Berkshire Hathaway Inc, Warren Buffett’s main company investing $24 billion in third quarter.
  • Macquarie International Infrastructure Fund (MIIF) Q3 2011 and 9 month results: 8% yield locked in

    Source: Kyith Ng
    Date Submitted: 31 Dec 2016
    Views: 298
    Downloads: 0
    We profiled Macquarie International Infrastructure Fund (MIIF) a while ago as an infrastructure based trust that provides a 8%-11% yield at current price of $0.49 to $0.50 cents.
  • Starhub and Singtel results inline

    Source: Kyith Ng
    Date Submitted: 31 Dec 2016
    Views: 166
    Downloads: 0
    Starhub and Singtel both announced their Q3 and Q2 results respectively the past 2 days. For folks that are new to Investment Moats, analysis on the Singapore Telecom Stocks have been some of the more popular articles.
  • Veteran’s Day and Money:Could they have lost a lot more?

    Source: Kyith Ng
    Date Submitted: 31 Dec 2016
    Views: 157
    Downloads: 0
    The first shock for me today was realize that on Veteran’s day, there are still trading. Well that’s ok because the market still end up where it was when it started out on Monday.
  • Long Term Market Analysis: Caution. May not be out of the woods yet. $SPY $STI

    Source: Kyith Ng
    Date Submitted: 31 Dec 2016
    Views: 182
    Downloads: 0
    Drizzt: long term market analysis is a series once or twice a month where we take a look at longer term trends in the market to get our bearings right on the general direction of where market prices is going.
  • 5 steps to make the power of compounding work in dividend income investing

    Source: Kyith Ng
    Date Submitted: 31 Dec 2016
    Views: 161
    Downloads: 0
    A question on many investors mind is that we always say that we invest because we want to make our money work harder. Working harder here is to make use of the power of compounding over time.
  • Why Starhub’s Capex can be dramatically lower than Depreciation to potentially pay out more dividends

    Source: Kyith Ng
    Date Submitted: 31 Dec 2016
    Views: 490
    Downloads: 0
    We talk during the last Q3 2011 financial results report the concern why Starhub can have a much much lower capital expenditure versus their depreciation.
  • Price Action Points to More Drawdowns. Stocks to watch out for $SPY $EWS $AAPL

    Source: Kyith Ng
    Date Submitted: 31 Dec 2016
    Views: 185
    Downloads: 0
    I did not make much changes to the portfolio but this week have been brutal in a subtle way. I highlighted in last week’s long term analysis this week should confirm more things and true enough this week’s price action shows remarkable formation similar to that in May 2008 where the market retest the weekly moving averages before turning down again.
  • The REIT Myth Busted

    Source: Kyith Ng
    Date Submitted: 31 Dec 2016
    Views: 483
    Downloads: 0
    The big news recently revolves around KREIT’s handling of the OFC purchase. The ramification of that is a lot of the blogging community starts talking that its about time MAS took notice of it.
  • For all price patterns there are always failures

    Source: Kyith Ng
    Date Submitted: 31 Dec 2016
    Views: 190
    Downloads: 0
    In yesterday’s post, I highlighted how current price action looks eerily similar to 2008. Today I would like to produce a nice post by Michael Harris that emphasis the fact that if it looks similar, it may not always end up doing the same thing.
  • What is the upside and downside of bloggers publishing their income and expenses?

    Source: Kyith Ng
    Date Submitted: 31 Dec 2016
    Views: 282
    Downloads: 0
    I tend to see quite a few financial bloggers publishing their income and expenses to share an example so as readers can draw comparison of how they do things.
  • The Money Diary: My financial planner/insurance agent make bad money decisions!

    Source: Kyith Ng
    Date Submitted: 31 Dec 2016
    Views: 147
    Downloads: 0
    Drizzt: The Money Diary deals with tips and strategies to make better decisions with your money. It also deals with caveats/pitfalls in managing personal assets, debts, income and expenses.
  • A detail DBS Vickers Macquarie International Infrastructure Report (MIIF)

    Source: Kyith Ng
    Date Submitted: 31 Dec 2016
    Views: 221
    Downloads: 0
    We covered MIIF extensively in three previous posts here, here and here. Seems that the recent changes got analysts noticed as well.
  • The secret behind stock splits

    Source: Kyith Ng
    Date Submitted: 31 Dec 2016
    Views: 372
    Downloads: 0
    For some stocks, when the price appreciates to a certain target price, the management may decide to split the existing share to smaller shares. This is to improve liquidity. Since going public in 1965, McDonald’s has paid twelve stock splits.
  • The REIT Myth Busted 2

    Source: Kyith Ng
    Date Submitted: 31 Dec 2016
    Views: 491
    Downloads: 0
    The fall out from the K-REIT’s handling of the OFC purchase continues. There are a lot of debates on the blogosphere regarding the article published by Ms Teh previously.
  • The Money Diary: Making wise money decisions as a professional sportsman

    Source: Kyith Ng
    Date Submitted: 31 Dec 2016
    Views: 160
    Downloads: 0
    Drizzt: The Money Diary deals with tips and strategies to let you make better decisions with your money. It also deals with caveats/pitfalls in managing personal assets, debts, income and expenses.
  • Additional Buyer’s Stamp Duty on Private Property

    Source: Kyith Ng
    Date Submitted: 31 Dec 2016
    Views: 246
    Downloads: 0
    I wonder whether this will work. The government have worked hard to stamp property speculation. My questions: 1. What is wrong with speculation? As long as its fair and just speculating on demand and supply is ok 2. Is the 10% and 3% stamp prices a big thing? I honestly am not well versed here. 3. This should not affect the resale market directly right? Or it means competition on resale flats is going to get heightened? 4. What will happen if prices REALLY starts falling?
  • Jeremy Grantham– Are you ready for 10 years of low stock prices?

    Source: Kyith Ng
    Date Submitted: 31 Dec 2016
    Views: 161
    Downloads: 0
    I follow Jeremy Grantham because I think his valuation of asset classes is amongst the most accurate. For someone who can forecast asset classes order of returns 10 years ago to what they are now they have to be really really good.
  • SingPost: Income yield opportunity or deteriorating fundamentals”

    Source: Kyith Ng
    Date Submitted: 31 Dec 2016
    Views: 201
    Downloads: 0
    Singapore Post, a favorite income yield stock amongst income investor have fallen off from a stable price range. Is this an opportunity to accumulate or is there something wrong with the company?
  • David Rosenberg: Stick to safety and income at reasonable price

    Source: Kyith Ng
    Date Submitted: 31 Dec 2016
    Views: 175
    Downloads: 0
    Here is David Rosenberg’s advice for the turbulent 2012: Stick to safe money management strategies that focus on income. They are defensive and cushion volatility. 1. Focus on safe yield 2. Dividend equities and preferreds 3. Low debt/equity and High liquid asset ratios 4. Oil and Gas Royalties and REITs 5. Low fixed costs and high variable costs, oligopolistic 6. Alternative Assets 7. Precious Metals
  • Rights Issues with Standard Chartered Bank (SCB) Online Trading

    Source: Kyith Ng
    Date Submitted: 30 Dec 2016
    Views: 176
    Downloads: 0
    Standard Chartered have been late to the Singapore brokerage scene but attracted a lot of retail investors with 1. No minimum commission 2. Zero custody fees 3. Low fees But how well does SCB handled cash calls/rights issues? Turns out if you intend to hold stocks with SCB long term it actually handles rights issues quite well.
  • China Minzhong: A value opportunity?

    Source: Kyith Ng
    Date Submitted: 30 Dec 2016
    Views: 208
    Downloads: 0
    Price of Chinese agricultural play have fallen drastically. This stock have been on the watch list of many value investors. Is there a value proposition or is this a value trap?
  • Noble Group: What the charts don’t tell you about Noble’s total return

    Source: Kyith Ng
    Date Submitted: 30 Dec 2016
    Views: 212
    Downloads: 0
    I recently did a short exercise with some of the stocks listed on the Singapore Stock Exchange. I want to see how dividends, splits, rights and bonus shares affect certain stocks. So I created a SGX Singapore Stocks Factsheet Google Spreadsheet to keep track of some of the stocks
  • Drizzt needs to take this Customer Account Review and Specified Investment Product Test!

    Source: Kyith Ng
    Date Submitted: 30 Dec 2016
    Views: 171
    Downloads: 0
    I got this news that to stop us investors from unknowingly invest in products without knowing what the heck it is in this product, they are making us take this 1 hour course and test.
  • Buffet Tiered 3G Plan to be abolised

    Source: Kyith Ng
    Date Submitted: 30 Dec 2016
    Views: 176
    Downloads: 0
    At Investment Moats, I talked about it pretty early that we may eventually follow the US in abolishing all-you-can-eat mobile data plan to one where you are charge based on your usage.
  • Keppel Corp:Lumpy Cash Dividend Rocks

    Source: Kyith Ng
    Date Submitted: 30 Dec 2016
    Views: 315
    Downloads: 0
    We did an exercise recently on Noble Group to see how dividends, splits, rights and bonus shares affect certain stocks. By popular demand, I decide to profile one of Singapore biggest conglomerate Keppel Corp.
  • Next Telecom Frontier:Maximize the data pipe

    Source: Kyith Ng
    Date Submitted: 30 Dec 2016
    Views: 232
    Downloads: 0
    Not going to talk about much but 1 week ago I read this article talking about Vodacom, South African Telco have secure license from the Financial Services Board to begin selling insurance products directly to its customers.
  • How to track your stock transactions with Google Spreadsheet

    Source: Kyith Ng
    Date Submitted: 30 Dec 2016
    Views: 176
    Downloads: 0
    I created a Stock Portfolio Tracker Google Spreadsheet some time ago (See here). Its free and keeps track of stocks by keying in transactions. But the instructions perhaps is not detail enough.
  • Long Term Market Analysis: Which way in 2012?

    Source: Kyith Ng
    Date Submitted: 30 Dec 2016
    Views: 188
    Downloads: 0
    Drizzt: long term market analysis is a series once or twice a month where we take a look at longer term trends in the market to get our bearings right on the general direction of where market prices is going.
  • Adampak: What does SSD replacing Magnetic Hard Disks mean to them

    Source: Kyith Ng
    Date Submitted: 30 Dec 2016
    Views: 497
    Downloads: 0
    Adampak is a label converter with a large client base in electronics,pharmaceutical, petroleum and other industries. I recently took notice of this little company due to the recent gloom for hard disk parts manufacturers from the Thailand flood problems. Many of them were beaten down so I thought why not do a study and the most appealing looks to be Adampak
  • What Financial Instruments should a Newbie 25 Year Old with $50,000 Build Wealth with? – Reader Question

    Source: Kyith Ng
    Date Submitted: 22 Dec 2016
    Views: 185
    Downloads: 0
    From time to time, I do receive questions and opinions from readers, on different topics. I am not a financial adviser or not registered to provide financial advice but there are some topics that I can provide inputs to debunk some fallacies but also to enlighten the pros and cons of some plans. I received this mail from a young reader with $50,000 to invest. He has learnt about the wonders of compoundng, and would like to find out what instruments he could look at and what are the returns that he could expect in 10 to 15 years.
  • Negative Cash on Cash Return Bites Single 45 Year Old with 6 Investment Properties

    Source: Kyith Ng
    Date Submitted: 22 Dec 2016
    Views: 399
    Downloads: 0
    Property investment is one of the most popular wealth machines in Singapore. It has create a lot of wealth for a lot of people. Due to that, people advise their peers the way to build wealth through properties. The New Paper interviewed a single 45 year old Property Investors current situation to profile the weak leasing market. She works in the sales industry and earns $20,000 per month. From 2009 to 2013, she bought 4 apartments and 2 retail shop spaces. Currently, 1 shop space is sitting empty. The rental revenue of these 6 properties do not cover the mortgage payments for the properties “I really have to work very hard to close more deals, so that I can pay off the loans. If I can get past these two years, it should be okay. I can manage as long as I don’t splurge on anything.” One apartment which is a shoe box unit, RV Edge, used to rent for $3,200/mth in 2013. Now, she had to cut the rent to 80%, which is around $2,500/mth.
  • The Truth about “Not Wanting A Lot” and its Impact to your Wealth

    Source: Kyith Ng
    Date Submitted: 22 Dec 2016
    Views: 344
    Downloads: 0
    2 years after I started work in 2006, one of my co-worker who was rather inquisitive (and intruding my personal bubble a lot with her questions) told me about a lady friend of hers. She says that this gal friend of hers struggled to find a good man to get married. Her gal friend have very simple wants, which is what puzzled herself why its so tough to find the right man. She just want her man to: 1. Make $4000/mth 2. Drives a simple car 3. Lives in a condominium My Co-worker was befuddled because in the realm of “simple requirements” that does not border on simple. I was more concern that I would not be able to find any mate in Singapore at that point then debate whether that is a simple requirement or not.
  • M1 and Starhub Price Fall – An Opportunity or Value Trap?

    Source: Kyith Ng
    Date Submitted: 22 Dec 2016
    Views: 252
    Downloads: 0
    M1 and Starhub are 2 of the 4 telecom stocks listed on the Singapore SGX Exchange. The other 2 being Total Communications DTAC of Thailand and Singtel. In recent months, the prices have gone down by more than their average volatility. This might present a buying opportunity for many or investors may not be aware why the share price went down. Let me put down some of my thoughts so that prospective investors can see if its useful for their investment purpose. M1 1.Current share price: $1.98 2.Outstanding shares: 930 mil 3.Historical annual dividend per share: $0.153 (7.7% dividend yield) Starhub 1.Current share price: $2.92 2.Outstanding shares: 1735 mil 3.Historical annual dividend per share: $0.20 (6.8% dividend yield)
  • China and the Holy Trinity of Growth Stock Criteria

    Source: Kyith Ng
    Date Submitted: 22 Dec 2016
    Views: 250
    Downloads: 0
    Kyith: Today, I am going to bring you a less long winded article. And there is a good reason is concise to the point. This is because its written by my friend Kim Iskyan. Kim comes to us with a lot of experience. He was an analyst, head of research oversea research teams. In his past capacity, he has covered the various opportunities in pockets of emerging markets and comes with a wealth of experience in equity, fixed income, REITs and commodities. And as you will see, he writes sharp and useful pieces for his publication at TrueWealth publishing. In today’s piece, he shares his insights on why focusing on these criteria will help you find winning growth plays. Disclaimer: The following article contains affiliate links
  • How do you find the Total Transport Fares for your Bus or MRT Rides In a Day?

    Source: Kyith Ng
    Date Submitted: 22 Dec 2016
    Views: 187
    Downloads: 0
    I track my expenses in Quicken for the last 11 years. That means that on a daily basis, what I consume (whether goods or services), I will input them in Quicken. One of the main problems is that, sometimes I took a trip that I was not familiar with, say I need to meet a friend at City Hall, and then I come back home. Usually, if you go to the MRT Station Machine, where you top up your fares, you will be able to see what is the aggregate fare. However, I often came back forgetting to check. The lazy person would hit that mental block of not remembering the fare, and would not put into his or her expenses. Over time, this may become a setback whether he can continue and don’t continue with tracking his or her expenses. The solution is that, there are sites that helps you to compute these fares. I will introduce 3 to you here.
  • What You Misunderstood about Delay Gratification and its Impact to your Wealthy Journey

    Source: Kyith Ng
    Date Submitted: 21 Dec 2016
    Views: 193
    Downloads: 0
    When you start this journey, you realize that there are some things that are not so good that you are willing to change, and that by changing, you can achieve something far better. Some of us have it easier. We could just flip a switch in our head and do a 180 degrees change. Some of us find it so hard to make even the small change. You eventually fell off your objective because it is too hard.
  • Sabana Industrial REIT’s Heavy Year End Acquisitions and Disposals

    Source: Kyith Ng
    Date Submitted: 21 Dec 2016
    Views: 246
    Downloads: 0
    We are winding down the year end, but for industrial real estate investment trust Sabana (dividend yield 9.3%), they are not taking it easy. We are suddenly seeing a flurry of deals happening. This article will provide some analysis on the acquisitions and disposals and some of my thought process when I look at these deals with Sabana’s current situation. On 5th December, Sabana managed to sell off their 218 Pandan Loop property. Since the end of the master lease, this property have been left vacant. The property was sold at a profit, much to a lot of people’s surprise. This is because the climate is not the most conducive. I have friends trying to sell off their industrial properties and its been difficult. On 8th, 14th and 15th, Sabana announced the potential purchase of 3 different properties. The first one was a sale and leaseback from Singapore Handicrafts, who will lease 71% of the property for 10 years. The second was a sale and leaseback from General Cars Fleet Management, who will lease 34% of the GFA for 5 years. The third and last property is a sale and leaseback from Vibrant Group, which is Sabana’s sponsor, who will lease 74% of the property for 10 years.
  • Sabana Industrial REIT Does 42 for 100 Rights Issue to Fund Non Accretive Acquisitions

    Source: Kyith Ng
    Date Submitted: 21 Dec 2016
    Views: 268
    Downloads: 0
    I have written yesterday, providing some thoughts on Sabana Industrial REIT’s (9.3% dividend yield) very busy 2016 year end of acquisitions, divestment and master lease renewal. What was missing was how Sabana would finance the acquisition. This morning the financing details are out. Sabana will finance the acquisitions by raising SG$80 mil via rights issue: For each 100 units, you can subscribe to 42 units Rights issue will increase number of outstanding units by 310 mil The rights issue is renounce-able, which means that, if you do not wish to participate, you can wait for ex-rights, then sell off your rights (which will be subsequently listed on the SGX) to prevent the dilution
  • Reaching for higher yields–be aware what you wish for

    Source: Kyith Ng
    Date Submitted: 14 Oct 2016
    Views: 347
    Downloads: 0
    In this world where your fixed deposit rates are close to zero percent, it is easy to reach for REITs and business trust yielding more than that. Recent IPO of Ascendas hospitality trust and outperformance of almost all REITs may have been the direct result of this. There are a few things to take note when reaching for higher yielding instrument.
  • Secular Bull and Bear Market comparison

    Source: Kyith Ng
    Date Submitted: 14 Oct 2016
    Views: 435
    Downloads: 0
    Looks like we are still far off from PE point of view. Almost all PE gets to the 10 region. It also depends on your how you compute the PE. The PE in 2009 did get down to nearly 12 for S&P 500. Currently, it looks very close to 1901 to 1920.
  • REIT Fee Structure 2

    Source: Kyith Ng
    Date Submitted: 14 Oct 2016
    Views: 339
    Downloads: 0
    The Edge has more coverage on REITs restructuring which we talk about in June. (See article here) In the last article, it talks about having REITs pegging their fees to performance of share price and dividend per share, which Cambridge, Starhill Global, Ascendas REIT and Aims Amp is doing. This week’s focus centers on the opinion of Patrick Lecomte, the executive director of ESSEC Business School’s Advance Master in Financial Techniques and Financial Engineering.
  • Charter Hall Long WALE REIT Case Study – Low Dividend Yield, Long WALE and build in Organic Growth

    Source: Kyith Ng
    Date Submitted: 14 Oct 2016
    Views: 360
    Downloads: 0
    Singaporeans have a good number of REITs for them to select from, when they look for dividend yield and share price appreciation. These REITs are split into different categories and have their own characteristic, dividend spread over the risk free rates and react differently to the demand and supply of their own categories. (You can take a look at the REITs, their prevailing prices and certain metrics at my Dividend Stock Tracker) Australia, together with Japan, are two very large and liquid REIT markets. They tend to have a smaller spread between risk free rates and REIT’s dividend yield. The characteristics of the property assets there may be culturally different from what we normally see in Singapore. Charter Hall will be doing their initial public offering (IPO) of their Charter Hall Long WALE REIT and this provides us with a glimpse of what is popular with investors in other parts of Asia. Since Australia is a mature market that many REITs such as Mapletree Logistics, Ascendas REIT, Cache Logistics, Cambridge, Frasers Commercial, Starhill Global, Aims Amp Industrial have properties in, or are try to secure more properties there, it is a good case study to tweak our expectations on what may look like good assets but are rather normal in Australia.
  • Keppel DC Acquires Data Centre in Wales, Showing us How a REIT can Grow Well

    Source: Kyith Ng
    Date Submitted: 14 Oct 2016
    Views: 340
    Downloads: 0
    One of the privileged presentation during our reader’s sharing Building Cash Flow with Stocks was an explanation of how REITs grow by B from Forever Financial Freedom. He illustrated based on his competency how the capital management of REITs could take place to grow with debt and equity. I do agree with his thoughts, and my article on how REITs grow have articulate that view. In this week’s announcement, we see Keppel DC REIT (dividend yield 5.5%), a diversified data centre specialty REIT showing some evidence of this. Keppel DC bought the “shell and core building” of a data centre in UK for 34 million pounds. The data centre is in Cardiff, Wales and is on a 15 year triple net lease with rental escalations. The client will bear all operating expenses and capital expenditure of the data centre. This is Keppel DC’s 4th acquisition since IPO in 2014. The acquisition is funded by debt in pounds and will take their aggregate leverage up from 29% to 32%.
  • We should be Experiencing Financial Freedom before the Wealth Security at the End. Yet Wealth Security is still a worth while Milesone

    Source: Kyith Ng
    Date Submitted: 14 Oct 2016
    Views: 279
    Downloads: 0
    B from Forever Financial Freedom did a review of his goal of retiring at 35 years old. And it turned out he is not there yet. His goal is to do it in 10 years, when he was closer to 25-26 years old and if he took stock today, it is somewhere close to midpoint. Some of the things that was impeding him was the rate of return but also the contribution amount came down over time. His contribution amount is defined as a combination of money from his disposable income and dividend income.
  • The manager of IREIT Global will be acquired by Tikehau Investment Management

    Source: Kyith Ng
    Date Submitted: 14 Oct 2016
    Views: 308
    Downloads: 0
    Last week, we finally gotten more information that the sale of IREIT Global’s manager will take place. The new management now will control 80% of the REIT manager with the other 20% held by Shanghai Summit group, which is Tong Jinquan’s vehicle. There will be movement in terms of personnel as well. The current CEO and CIO would have to resigned. They are also expanding their investment mandate to cover all commercial income producing assets across Europe. I thought this is a big move. When you remove management, it is either you want to out someone more competent in the position, you want this vehicle to shift its direction and want less resistance. I certainly feel it is the latter. However, there is always chances I am wrong in that, if the mandate is to expand the kind of assets this Reit can take in, and the manager lacks competency in more markets then required, and that the potential risk of mismanagement is small because they got someone just as able in competency, then replacing the CIO and CEO will make sense. We can’t escape any discussion of IREIT at this point without discussing Tikehau Investment Management Asia Pac. Tikehau Asia Pacific is only set up not too long ago. They just start forming their Asia team last year. Tikehau was started in France by Merrill Lynch Bankers.
  • Soilbuild Business Space’s Distributable Income Falls 3.9% for the Quarter

    Source: Kyith Ng
    Date Submitted: 14 Oct 2016
    Views: 329
    Downloads: 0
    Soilbuild Business Space(Dividend yield 7.9%) announced their third quarter results. The Distributable Income dropped by 3.9% and overall DPU dropped by 13.9%. We have to be aware that there was a preferential offering, which is dilutive to existing shareholders and enlarged the share base. This preferential offering was to fund the purchase of a short land lease Bukit Batok connection. The Gross Revenue was down by 4.7% versus last year same time. However, we expected the impact to be greater. Recall that Technics Oil and Gas defaulted on their rent, and Technics Oil and Gas contribute 8% to revenue. It is likely that the company is drawing down the rental deposit.
  • Straco nearly doubles quarterly profits

    Source: Kyith Ng
    Date Submitted: 14 Oct 2016
    Views: 332
    Downloads: 0
    Straco Corp announces their Q2 2012 profits. You can view the results [here]. It would seem that since IPO in early 2003 they have been profitable every year. The great thing about Straco is that they do not need much maintenance capital expenditure. And if they need, they are funded by interest income from their huge cash holdings. Recently, they started buying back shares. This is also a form of rewarding shareholders, but if they are trading higher then net asset value I wonder if it is really a good way of rewarding us.
  • China Merchant Pacific (CMHP) acquires Ningo-Beilun, will pay out 5.5 cents dividend next two years

    Source: Kyith Ng
    Date Submitted: 14 Oct 2016
    Views: 330
    Downloads: 0
    China Merchant Pacific (CMHP), a subsidiary of China Merchant Holdings, the China state-owned enterprise, acquires another expressway, a day before they announces their latest quarter results. For my past articles on CMHP, you can view them [here] To date, CMHP now owns 4 toll roads: Guihuang, Guiliu, Yongtaiwen (YTW) and now Beilun (BL). Beilun will likely be funded by debts. The quarterly results shows that Guihuang have falling traffic. Guiliu and Yongtaiwen have been stable.
  • Pitfalls in toll road infrastructure investing

    Source: Kyith Ng
    Date Submitted: 14 Oct 2016
    Views: 336
    Downloads: 0
    At times we can get quite optimistic in projecting a high yield dividend stock. Toll roads generate a lot of cash flows but there are much downside as well. Maintenance of roads and upgrading of toll technology When road is being used too much, authorities will need to relay or fix roads. To improve collection of tolls, investment in technology in the future may be necessary. These will increase capital expenditure Changes in government policy The china government have been trying to reduce toll charges to ease consumer inflation burden. This is also to reduce toll gate congestion and cut car emissions.
  • Dividend Yield Comparison of Infrastructure Assets

    Source: Kyith Ng
    Date Submitted: 14 Oct 2016
    Views: 323
    Downloads: 0
    Ever thought how different kind of infrastructure assets yield? I found this report from Russell Investments on US stocks that provides a good summary
  • Get Rich: How to Pay Yourself First

    Source: Kyith Ng
    Date Submitted: 14 Oct 2016
    Views: 283
    Downloads: 0
    The key to sustainable wealth building is not just to put savings above all else, pay yourself first, built psychological mechanisms based around habits and goals to ensure a stream of cash flow for you to build your wealth.
  • Not all markets have bounce back to 2007 highs except Singapore, US, Mexico and Sweden

    Source: Kyith Ng
    Date Submitted: 14 Oct 2016
    Views: 327
    Downloads: 0
    Here is a nice chart showing different countries and their struggle with the bounce back from the Great Financial Crisis. The chart shows the performance of 30 markets as measured by MSCI indexes, and of the MSCI All Country World Index, which includes all markets MSCI classifies as developed or emerging. The X Axis shows how deep the plunge for the countries. As you can see the ones who was best insulated was Japan at –50% and the worse Ireland at > –80%
  • Index ETF versus Managed Retirement Fund

    Source: Kyith Ng
    Date Submitted: 14 Oct 2016
    Views: 285
    Downloads: 0
    Andrew Hallam of Millionaire Teacher fame this morning have a piece on a seminar that he gave to expatriate teachers in Singapore American Schools telling them they can thrash Managed Unit Trusts or Mutual Funds with buying just 3 Index ETFs:
  • Buying Gold with your CPF money $GLD

    Source: Kyith Ng
    Date Submitted: 14 Oct 2016
    Views: 386
    Downloads: 0
    You can ensure that a portion of your retirement funds in CPF keeps up with inflation by allocating to SPDR Gold ETF. I been asked by friends and readers how to get invested in gold for their CPF account. You can invest up to 10% of your CPF amount (after subjecting SGD $20,000 CPF requirement which you cannot invest) in Gold products. Currently, I allocated a portion of my CPF amount to SPDR Gold ETF. This is an exchange traded fund which tracks the price of gold. This have been listed for the past 6-7 years. According to SPDR the holdings are backed by physical gold. How much you believe the gold is there is another matter. However, if you are looking to diversify and to ensure that your CPF funds keep up in an hyperinflationary environment, having a portion in Gold ETF is prudent.
  • Ray Dalio’s All Weather Portfolio–How Investor’s Should Setup their Portfolio

    Source: Kyith Ng
    Date Submitted: 14 Oct 2016
    Views: 352
    Downloads: 0
    The manager of the current most successful hedge fund in the world, this week provided a video interview at the Council on Foreign Relations. In the video, he went through quite a fair bit of things but they can be grouped as follows: What is leveraging and deleveraging What happens when leveraging is loopsided Europe’s problems. How can they be dealt Can money printing takes place forever? Why he is weary of another Hitler rising Looking into where the print money is going Why he believes its deflation first followed by inflation in the long run How should portfolio allocation be carried out?
  • More Price Earnings Charts

    Source: Kyith Ng
    Date Submitted: 14 Oct 2016
    Views: 419
    Downloads: 0
    Some readers asked me whether the last price earnings chart tells that we are cheap enough. Price earnings is a function of 2 items. Price, can be before inflation adjustment and earnings, can be historical or forward looking. Abnormal returns have more charts on parade:
  • Ascendas REIT: Negative Divergence?

    Source: Kyith Ng
    Date Submitted: 14 Oct 2016
    Views: 339
    Downloads: 0
    The oldest REIT in Singapore and a 5.9% yielder. Seems like a negative divergence. This coupled with some speculative calls on Starhub weakness. Could the yield boom be going to rest mode?
  • Singapore LTE opportunities for Singtel, M1 and Starhub

    Source: Kyith Ng
    Date Submitted: 14 Oct 2016
    Views: 334
    Downloads: 0
    Some notes from The Edge article on NFC payments and Mobile Remittance. This will interest Starhub, Singtel and M1 investors.
  • Dividend Withholding Tax Status on Hong Kong Listed China Shares

    Source: Kyith Ng
    Date Submitted: 14 Oct 2016
    Views: 446
    Downloads: 0
    We mentioned in past articles that international stocks are susceptible to a percentage of withholding tax, which will reduce your dividends. For a breakdown on different countries and their withholding tax reference, take a look at this article. I was recently interested in some China shares listed on the Hong Kong Stock Exchange. Since they do distribute dividends, I am not sure if a 10% withholding tax will be levied. However, I found this article here dated 18 July 2012 that seems to indicate the withholding tax since 2009 is only 5%:
  • Religare Health Trust–a good buy?

    Source: Kyith Ng
    Date Submitted: 14 Oct 2016
    Views: 343
    Downloads: 0
    In an environment where everyone seem to be reaching for higher yield, an India Healthcare business trust looks to be an easy sell. Its even a better sell if its marketed as 8-9% yielders. The prospectus can be [view here] This business trust invest in 11 healthcare related establishment and earned income by leasing them to their Sponsor Fortis. In the future they would like to invest in Asia and Australia healthcare assets.
  • Having the Cash Option

    Source: Kyith Ng
    Date Submitted: 14 Oct 2016
    Views: 284
    Downloads: 0
    There are days when I feel that I didn’t really deliver as a blogger writing about investing. The time is probably now. I could have written about the next best stock that perk up my interest and you should take note as well. Sadly, due to studies and work, I cannot do that well recently. It becomes an issue personally because new cash set aside for the portfolio cannot find a home.
  • What is your biggest investment mistake?

    Source: Kyith Ng
    Date Submitted: 14 Oct 2016
    Views: 329
    Downloads: 0
    This looks so much like recency bias. It looks like most people are feeling they missed out too much.
  • Lippo Malls Indonesia (LMIR): Not yield accretive acquisitions

    Source: Kyith Ng
    Date Submitted: 14 Oct 2016
    Views: 350
    Downloads: 0
    I have to do a double take because I thought yesterday’s announcement that Lippo Mall Retail REIT’s purchase of 2 Indonesian shopping mall was the acquisition they made sometime ago. My friend have to inform me that these are more acquisitions. Announcements here and here In total, LMIR bought up 6 malls totaling SGD $307 mil. They will be funding the acquisitions by SGD $200mil Notes with interest at 4.88%, SGD $50 mil Notes with interest at 5.875%, new notes under the EMTN program, new loan facilities and cash reserves.
  • First REIT: Raises base dividends (Q3 2012)

    Source: Kyith Ng
    Date Submitted: 14 Oct 2016
    Views: 335
    Downloads: 0
    First REIT announces their third quarter earnings announcements. Announcements here. Not much changes in fundamentals but of note is that based dividend will be raised from SGD $0.0156 per quarter to SGD $0.0168. This is good news because they seem to be paying out $0.0156 for a long long time. Finally we see some rent escalation in the works.
  • The Permanent Portfolio– The holy grail for investing?

    Source: Kyith Ng
    Date Submitted: 14 Oct 2016
    Views: 330
    Downloads: 0
    I have got a lot of things that hook my attention this year, whether it is investing, at work or other things that I am interested in. But the one thing that I have come across that is the most astounding is the Permanent Portfolio.
  • 6 metrics to focus on when evaluating income trusts

    Source: Kyith Ng
    Date Submitted: 14 Oct 2016
    Views: 327
    Downloads: 0
    Roger Conrad writes two good income based newsletter: The Canadian Edge and Utility Forecaster. In his recent interview he highlights some metrics that are used to evaluate Canadian Income trusts. These are somewhat similar to our business trusts that invests in infrastructures, storage assets, buildings, railway, airplanes. The metrics are:
  • Valuing a REIT: As an equity bond–First REIT

    Source: Kyith Ng
    Date Submitted: 14 Oct 2016
    Views: 336
    Downloads: 0
    Many folks have asked me how to compare REITs. In general, I don’t have a certain fixed formula but use the usual PE, EV/EBITDA and Discounted cash flow. For assets that have predictable cash flows, I tend to compare asset A’s yield versus asset B’s yield. End of the day, we want to evaluate returns of x number of cash flows over a period, per unit risk. We will use First REIT, which I notice have came down a bit, and that I am invested at 77 cents versus Ascendas REIT, some LTA bonds and SGS bonds.
  • Are HDB Flat better investment than stocks and bonds?

    Source: Kyith Ng
    Date Submitted: 14 Oct 2016
    Views: 333
    Downloads: 0
    It is probably the trend that property is a good inflation hedge, since it will definitely end up higher in value compare to stocks, which can just die off under mismanagement. It got me thinking while I was studying for my exams. A 5 room HDB flat that you bought in 1999 for $267k. Now can sell for $550k. Duration = 13 years Appreciation = 106 % Annualized returns = (1+1.06)1/13 = 5.7 % per annum If you are not renting it, is 5.7% a good return? I think you have to rent because if you don’t rent it doesn’t show the full potential of HDB. If you rent at least 2 of your room for $1000 per month, your 13 year return is $156k. or 58.42% returns from rental. Total returns = 106% + 58.42% = 164.4% Annualized returns = (1+1.64.4)1/13 = 7.7% per annum Man, I thought the figure will be higher! Still its not bad!
  • Vodafone 6% yielder $VOD

    Source: Kyith Ng
    Date Submitted: 14 Oct 2016
    Views: 341
    Downloads: 0
    There are many investors looking for a good yielding stock that beats the regular 5 year fixed deposit rates. And what better company then a telecom giant. Telecom companies are good cash flow generators and do better than thee average market during recession. One such stock is Vodafone, which Is the second biggest telecom company in the world. Vodafone have a footprint in Europe, South Africa, Africa, Australia and turkey. Vodafone makes a great stock for many international investors because it is listed In UK, which have no dividend withholding tax. This means that you are not overly penalized by taxes and thus the country is a good hunting ground for yield investors.
  • Economic Moat–Are good management a moat?

    Source: Kyith Ng
    Date Submitted: 14 Oct 2016
    Views: 317
    Downloads: 0
    One of my main pillars when comparing or choosing a stock to invest in is understanding the business model. Understanding the model, its strength, weakness, threats and opportunity goes a long way in Estimating the predictability of cash flow (lumpy or consistent) sustainability of a conservative estimate of cash flow (e.g. In down times can it still pay X minimum amount of dividend I require) Business continuation in next 10 years How susceptible is it to substitute Could company lose its business advantage Would people still expect to use so much of thee goods/services Risk management (how can you kill this goose?) Economic Moat talks about,if a company/industry/segment have an advantage over others, how we they can protect this advantage to earn better returns
  • Dividend stock – Dividend payout ratio

    Source: Kyith Ng
    Date Submitted: 14 Oct 2016
    Views: 315
    Downloads: 0
    An often overlooked metric to evaluate dividend paying stocks is the dividend payout ratio. How does it affect your dividends and share price performance? If you compare Ascendas REIT versus Kingsmen Creatives, the dividend yield is 5.9% versus 5% its a no brainer which you would choose. Assuming valuations, business model are largely similar, dividend payout ratio is one important consideration. Dividend payout ratio is either dividend / earnings or dividend / free cash flow. It tells you how much out of profits warned or cash flow received that the company can safely payout. In the case of Ascendas REIT, like all Reits they are mandated to pay out greater than 90 percent of earnings, so their payout ratio is higher. Kingsmen Creatives, on the other hand pays out 50% of earnings or free cash flow. This also means that if Kingsmen is not conservative they can choose to pay out 10% dividends and they will be alright. If you were to evaluate to buy the stock assuming business model and valuation using other metrics are largely the same which would you choose? If the yield is close, a low payout ratio versus a total payout is better because stocks go through good years and bad.
  • Singapore young adults have it better than US young adults.

    Source: Kyith Ng
    Date Submitted: 14 Oct 2016
    Views: 268
    Downloads: 0
    One aspect of life I realize that is different between US young adults that came out to work versus that of Singaporeans who just came out is the level of difficulty facing them. The level of student loans faced by the average young adults for college and university look so much higher. Granted you have to compare like for like, and Singapore young adults have an advantage because NUS, NTU and SMU university school fees are subsidized. Still, the young adults that I work with are immediately going for public housing in Singapore after only a few years out of work. They are not financial ready for it. The difference I feel is that property have not burst yet. It is a cultural thing in Singapore that property is the way to go and it will always appreciate in value. They have seen their parents and uncles make a pile from the recent property boom and would like to take advantage as soon as possible. Housing also becomes the push factor to get married. If you have a public flat, you have to get married.
  • Beginning Investing–Understanding Stock Market Investing

    Source: Kyith Ng
    Date Submitted: 14 Oct 2016
    Views: 661
    Downloads: 0
    For a person interested in understanding investing with no prior training, it can be rather daunting. Questions on your mind is what is the stock market? How does it tie to the company? How do I earn a return? How to select stocks? This live article will provide the resources for you as an equity investor or a dividend investor starts. As an investor, you need certain primers to build up your knowledge on how everything interlinks.
  • Macquarie International Infrastructure Fund Limited (MIIF) will pay out cash, divest CXP, Maoli and Hua Nan Expressway

    Source: Kyith Ng
    Date Submitted: 14 Oct 2016
    Views: 551
    Downloads: 0
    This morning I received an email from Macquarie International Infrastructure Fund (MIIF) a 10% yielder on my Dividend Stock Tracker (see the rest of the yield stocks here), saying it has completed its strategic review carried out with CIMB. For those following the saga, 2 prominent fund holders in MIIF want to add 3 directors to the board because they feel MIIF is not working fully to maximize shareholder benefits. They stoutly refuses, and pen a letter telling the share holders to reject voting the 3 directors in because it will “affect the management negatively”. Alas, they got their wish, but not before a lot of share holder disgruntment. They reluctantly did a strategic review with CIMB to find out how best to move forward. This is the result of their strategic review.
  • David Kuo Interviews Huge Young

    Source: Kyith Ng
    Date Submitted: 14 Oct 2016
    Views: 335
    Downloads: 0
    Motley Fool’s David Kuo, who would be here for the Value investing summit interviews long time Singapore expatriate Hugh Young, managing director of Aberdeen Asset Management on his experiences investing in Asia versus Europe. Aberdeen Asset Management is one unit trust house in Singapore which tells others of its value investing tilt. And it is likely due to the direction of Hugh Young. [Motley Fool | Look east before its too late | Transcript – requires login] [Motley Fool | Look east before its too late | Podcast] It’s a very insightful interview I feel, because it touches on how Asian companies tend to differ from the usual popular western investing methodologies. Family run businesses
  • Rent out HDB in Singapore and lease a house in Johor for lower cost of living

    Source: Kyith Ng
    Date Submitted: 14 Oct 2016
    Views: 343
    Downloads: 0
    The cost of living is high in Singapore as attest by most Singaporeans. So what does some enterprising Singaporeans do? They rent out their HDB flats in Singapore for SGD $2000 – $3000. This amount equates to RM $5000 – $6000 They then rent a 2-3 room condo or apartment in Johor for RM $1000-$1300 The cost of living is lower in Malaysia and thus this arrangement may result in them having less stress at work or going into semi retirement mode There are certain considerations as well
  • David Rosenberg–In a 0 percent return environment, cash is NOT king

    Source: Kyith Ng
    Date Submitted: 14 Oct 2016
    Views: 341
    Downloads: 0
    David Rosenberg is mostly known as a bear or a tilt towards being bearish in recent years. His recent tilt is not so much bearish but a 360 degrees shift from deflationist to yield whore. Recently he released a series of interesting charts for the year of 2013:
  • Capital Allocation–A key competitive advantage (1)

    Source: Kyith Ng
    Date Submitted: 14 Oct 2016
    Views: 329
    Downloads: 0
    One big lesson learnt this year is that while people see good management is important, it is not an economic moat by itself. The ability to create a management culture that provides continuity is a competitive advantage [read here]. But a bigger lesson is the importance of identifying management with great capital allocation skills. The skill to value acquisition and assets under management, divest and acquire at right prices, choose between leveraging debts or rights issue at the right time. For holding companies, REITs, business trusts and management based business, they have not much advantage other than whether they are good capital allocators. I would like you all to think on that last point. Geoff Gannon have an interesting article on capital allocation discounts for holding companies. This can be applied to many holding companies or funds like K1 Ventures, Hotung, Global Investments Limited, Keppel Corp, MIIF, Haw Par Group etc. Some good points mentioned:
  • 2012 Portfolio review and looking forward to 2013

    Source: Kyith Ng
    Date Submitted: 14 Oct 2016
    Views: 326
    Downloads: 0
    I thought I will do a review as we close out 2012 and welcome 2013, sharing some personal thoughts, the portfolio, the blog and moving forward.
  • SATS–Dividends

    Source: Kyith Ng
    Date Submitted: 14 Oct 2016
    Views: 343
    Downloads: 0
    Many have been interested in SATS on my Dividend Stock Tracker since it yields 9%. I decide to look at it again and see if that is sustainable. So is it sustainable? It looks like I make a mistake factoring in special dividends. To manage the expectations, it is better to exclude the special dividends if we conservative look at sustainability.
  • Keeping Investing Simple and Portfolio Rebalancing

    Source: Kyith Ng
    Date Submitted: 14 Oct 2016
    Views: 340
    Downloads: 0
    The approach to managing and growing your money should be in a way that caters to the kind of time you want to expense to grow it. If you are more passive about it, and would want it to grow with the general economy, a systematic approach to buy low and sell high could prove better than picking stocks. Many season market commentators including, Buffett, Munger and now even Ritholtz advocate building a portfolio of ETFs. The main reason to use this over unit trusts or mutual funds? Costs. Ritholtz provides in this article how to keep investing simple:
  • Why a simple low cost portfolio strategy is better in some cases

    Source: Kyith Ng
    Date Submitted: 14 Oct 2016
    Views: 316
    Downloads: 0
    This blog discusses more on active management strategies. However, aside from honing and building the skill to manage an active portfolio, identifying individual stocks, when to sell and buy, a simple strategy for the average folk is what I hope to uncover. And in some situations, a passive investing strategy may be more applicable than stock picking an active portfolio. Andrew Hallam, of Millionaire Teacher fame, shared with us in this article on his fight with bone cancer at age 38 years old. Of particular interest is one of the main reasons he shifted to using a passive investing strategy:
  • How to calculate Vodafone Dividend $VOD

    Source: Kyith Ng
    Date Submitted: 14 Oct 2016
    Views: 359
    Downloads: 0
    US folks seem to find it challenging to calculate international ADR’s dividend. The primary problem is that international stocks do not have uniformed dividends. Here I will show you how you can get the figures fast and accurate at 2 sites and also talk about the dividend sustainability of Vodafone. For international stocks they are usually made up of Interim dividend – smaller Final dividend – larger Special dividend – comes with the Final dividend if it’s a bountiful year
  • Death of equities–Sell side indicator model

    Source: Kyith Ng
    Date Submitted: 14 Oct 2016
    Views: 319
    Downloads: 0
    Although we have somewhat of a good rally since 2009, the last two bear market have created an expectation (in Singapore as well) that people are expecting that the expectations to be very low. The take is to look for a sell. Some how with all the focus on properties and that major money still going into bonds, I am somewhat optimistic about equities but also watching the major trend indicators. Also the emerging markets look to be outperforming the US market.
  • Parents paying for education and now housing downpayment.

    Source: Kyith Ng
    Date Submitted: 14 Oct 2016
    Views: 288
    Downloads: 0
    Last weekend, Sunday times have a series of three articles talking about a growing trend of young adults just entering he workforce seeking assistance from parents to pay for down payment of new flats.
  • Stock Market Breaks 2009 highs

    Source: Kyith Ng
    Date Submitted: 14 Oct 2016
    Views: 311
    Downloads: 0
    This is a chart of the Wilshire 5000 index, which is essentially 3000 plus stocks in the US. Seems its broken out in the all time highs. The skeptic will see this as a move back to 7000. But I challenge this, if it breaks out of this zone and stays above the resistance turned support made in the 2007 highs. Are we at a new paradigm?
  • The HetNet: how will it change telcos

    Source: Kyith Ng
    Date Submitted: 14 Oct 2016
    Views: 303
    Downloads: 0
    Gigaom have an article out talking about Google submitting to FCC for some of their upcoming wireless test plans. You can read it here [Giagom | Is Google pondering an experiemental HetNet | Read] What’s interesting is that the switching cost now between surfing the web on your capped data plans in 3G or LTE and then switching over to free wifi hotspots are crumblesome. But what if its seamless.
  • Long Term Market Analysis– All time high

    Source: Kyith Ng
    Date Submitted: 14 Oct 2016
    Views: 313
    Downloads: 0
    We haven’t done this for some time and now that we hit a high in the US market, it looks like we are staring at a move down 50%. Lets take a look at some data to systematically evaluate this.
  • SGX Smallcaps 2013 – Killing it in January

    Source: Kyith Ng
    Date Submitted: 14 Oct 2016
    Views: 323
    Downloads: 0
    Back at the tail end of 2012, I started a portfolio of 20 Singapore small caps that I find interesting and track them throughout the year. These posts are updates of the results. You can actively view this portfolio at a live Google spreadsheet here. The first month was out of this world. Quantitative statistics have shown that if January ends higher, there is a large probability the year will end higher. The STI ETF rose 3.1% during this period. My selection of small cap outperformed at 9.5% during the same period.
  • Insurance Co-Payments

    Source: Kyith Ng
    Date Submitted: 14 Oct 2016
    Views: 261
    Downloads: 0
    The common hearsay that I gotten when I wasn’t very savvy about insurance is how would I not have to pay a SINGLE CENT when I need to claim. I get that from a lot of people and that is born out of one rumor. If I pay so much for my insurance, I shouldn’t have to pay a single cent! When some one blurted out that, it is telling others that this person needs to really get to know what insurance Is about. A lot will think that buying any insurance means you have all kinds of assurance. That is not the case. Get educated. Read this first. If you want to get insured and optimize your cost, focus on a plan that insures the catastrophic covers and opt to pay for the low expenses. Insurance companies are not stupid. They have actuaries who have calculate a good profitable margin they can make from all the plans and you are likely not able to game the system. If you are unsure, check out what an actuary will actually buy.
  • Leveraged Yield of Return for your Property

    Source: Kyith Ng
    Date Submitted: 14 Oct 2016
    Views: 652
    Downloads: 0
    Property rental is a passive income dream for a lot of people, which is why you see many people flocking to condo launches these few years. And the main attraction why property is better than bonds, equities or other asset class is that it is the easiest for average folks like you and me to leverage up. Recently, the Singapore Government have been trying to stem this property speculation wave, which have seen property prices climbing like mad. So how much return can you make nowadays if you try to rent out?
  • Free Super Wifi Mooted. Will this kill off telcos?

    Source: Kyith Ng
    Date Submitted: 14 Oct 2016
    Views: 375
    Downloads: 0
    Haha. I have been talking on this blog about how new technologies will have limit telecom’s influence on things. It makes entrants much easier as costs are lower. IDA would have liked that as more competition is beneficial to the public. We have already seen MyRepublic and ViewQuest benefiting the consumers.
  • End of Secular Bear and Unique Bull Market

    Source: Kyith Ng
    Date Submitted: 14 Oct 2016
    Views: 332
    Downloads: 0
    Barry Ritholtz, who have been one of the first in 2003 to indicate we are in a secular bear that lasts an average of 14-18 years, are indicating that after 13 years we are closer to the end then the start. Not sure. Recently too many bears have caved in. Eddy Elfenbein, who is essentially a buy and hold investor discussed a unique bull market in 1949 to 1955 that is little known.
  • UMS Holdings

    Source: Kyith Ng
    Date Submitted: 14 Oct 2016
    Views: 337
    Downloads: 0
    UMS Holdings is a Singapore Precision Engineering Group that carries out Contract Equipment Manufacturing and Semi Conductor Manufacturing. It is in a business that really has not much moat. If you are a firm looking for solution of precision components, all you need to do is find a precision engineering firm with competency and deliver at the lowest cost. So why am I talking about a firm like that in this space?
  • UMS Holdings

    Source: Kyith Ng
    Date Submitted: 14 Oct 2016
    Views: 331
    Downloads: 0
    UMS Holdings is a Singapore Precision Engineering Group that carries out Contract Equipment Manufacturing and Semi Conductor Manufacturing. It is in a business that really has not much moat. If you are a firm looking for solution of precision components, all you need to do is find a precision engineering firm with competency and deliver at the lowest cost. So why am I talking about a firm like that in this space?
  • Tracking the Lazy Portfolios

    Source:
    Date Submitted: 14 Oct 2016
    Views: 331
    Downloads: 0
    Lazy portfolios are the dream of most investors. You create an allocation and just stick to it. No switching out of one holding to another. No stock or bond selection. Just rebalance if it gets out of the targeted allocation. I talked about this in the past as the Permanent Portfolio (Read the holy grail of investing?) and their low volatility nature. But what I think is the attractiveness of a lazy / couch / permanent portfolio is that it is simple to execute, which is ideal for average folks holding a day job or leading a busy life. The more complex it gets the more likely people will not stay on it. This is where this guy comes in.
  • Starhub at high growth rate

    Source: Kyith Ng
    Date Submitted: 14 Oct 2016
    Views: 341
    Downloads: 0
    I bought my first Starhub share at $2.07 or so. Since then I have added and sold but largely I still have 4 lots at an average of $2.75. I sold one lot at $3.61. And I thought its not a justifiable price. Today it reached $4.20. Fundamentally, what does this signify? Is it pricing in the 6.9 mil population for the next 17 years? I will let you guys evaluate that.
  • Singapore Property hearsay 1

    Source: Kyith Ng
    Date Submitted: 14 Oct 2016
    Views: 383
    Downloads: 0
    I was curious about the passive income generation capabilities of properties in Singapore. I should be. Everyone tells me if you have the money you should get one now. It’s investing in a comfortable future. So I got a chance to talk to a friends mother who happens to sell landed properties. And you will be able to see how clueless i am. I don’t even know landed properties can only be purchased by Singaporeans. This effectively leaves condominiums to foreign speculators. The curious factor was that in a URA report, it was indicated that the average rental yields is around 3.8%. That looks kind of low so it’s good to sound out some real figures but the figures are also making me suspect whether every property of that category is around that range.
  • MAS restricts Vehicle Loans

    Source: Kyith Ng
    Date Submitted: 14 Oct 2016
    Views: 409
    Downloads: 0
    Many of my friends are finding it difficult to grab a car to make their life better. And on comes this news today: Singapore, 25 February 2013 The Monetary Authority of Singapore (MAS) will re-introduce1 financing restrictions on motor vehicle loans granted by financial institutions. The maximum motor vehicle loan amount will depend on the open market value (OMV) of the motor vehicle purchased: (i) For a motor vehicle with OMV that does not exceed $20,000, the maximum loan-to-value (LTV) is 60% of the purchase price, including relevant taxes and the price of the Certificate of Entitlement, where applicable; and (ii) For a motor vehicle with OMV of more than $20,000, the maximum LTV is 50%. In addition, the tenure of a motor vehicle loan will be capped at 5 years.2 3 The financing restrictions are necessary to encourage financial prudence among buyers of motor vehicles. In this prolonged environment of very low interest rates, there is greater risk of buyers over-extending themselves on motor vehicles. 4 The financing restrictions will not apply to loans for the purchase of commercial vehicles3. They will also not apply to loans for the purchase of motorcycles.
  • UMS 2012 Full Year Results

    Source: Kyith Ng
    Date Submitted: 14 Oct 2016
    Views: 334
    Downloads: 0
    We have a slew of full year earnings in this 2 days. The first one to talk about is UMS. I talked about it quite a short while ago the cyclical nature of this stock (Read here) True to the cyclical nature, Q4 turns out to be worse than Q3. Revenue was down 14% and Net profit was down 79% from a year ago. Short term income suffered from a higher inventory change and less revenue earned. The full year results look much better with a more or less similar revenue from last year but net profit was down 39% from a year ago to 17 mil. Assets was up, but that is not telling the full story as property, plant and equipment was down from 59 mil to 50 mil. Goodwill was up from 60 mil to 81 mil. We will touch on this later. Balance sheet shows a new 17 mil short term borrowing together with lesser cash holdings. This was brought about from the acquisition of Integrated Manufacturing Technologies Pte Ltd (IMT-S) and Integrated Manufacturing Technologies Inc (IMT-USA) In terms of operating cash flow for Q4, cash flow before working capital was 2.8 mil versus 8.3 mil. Cash flow from operations was up from 5.7 mil to 7.4 mil. Capex for Q4 was very little at 0.6 mil. In terms of full year, operating cash flow was down from 39 mil to 31 mil. Capex was lower from 7.4 mil to 1.7 mil.
  • Risk On and Risk Off – More Risk Charts…

    Source:
    Date Submitted: 14 Oct 2016
    Views: 330
    Downloads: 0
    Barry Ritholtz’s TA Partner Kevin Lane communicates technically the situation
  • What does great CEO need to create long term returns?

    Source:
    Date Submitted: 14 Oct 2016
    Views: 314
    Downloads: 0
    One of the books recommended by Buffett to be read by investors dealing with fundamental analysis is The Outsiders: Eight Unconventional CEOs and Their Radically Rational Blueprint For Success
  • Insider Selling– Is it a time to sell? (No)

    Source: Kyith Ng
    Date Submitted: 14 Oct 2016
    Views: 339
    Downloads: 0
    Here we are refering to overall market behavior as a whole. In individual stocks, when insider sell individually, it may mean they are rechannelling their funds, but usually when key insiders sell, there may be something wrong. What if we see a headline showing that in general?
  • How to save money: Dividing up your savings and investments

    Source: Kyith Ng
    Date Submitted: 14 Oct 2016
    Views: 278
    Downloads: 0
    In the course of wealth building, many people like to make things easier by paying themselves first, setting aside x amount of money to invest and save. This amount will not be touched for daily necessities and other uses. Paying themselves first is of course a great personal finance tip, and one I will advocate as well. For the singles or those that saw the light of how early savings and investments can prove to be fruitful in the future (read the power of compounding early), they tend to save 50-60% of their disposable income. This amount they will use it as their “bullets” to build wealth by investing at a higher rate, through stocks and bonds, properties. To a certain extent I think we can improve upon this and be more goal focus when it comes to wealth accumulation.
  • Valuing Straco Corp

    Source: Kyith Ng
    Date Submitted: 14 Oct 2016
    Views: 539
    Downloads: 0
    Straco Corp is a theme facilities and aquarium operator in China that we talked about a fair bit in the past. Many still cannot fathom the edge this Singapore outfit is able to garner their results consistently, when we kept seeing similar ventures crumble. Today, we won’t focus on the business case of Straco nor the fact that its generating good cash flow and 11 cents of the current 31 cents are in cash. Lets see if there are any value to add at this price.
  • Know more about the telecommunication sector

    Source: Kyith Ng
    Date Submitted: 14 Oct 2016
    Views: 571
    Downloads: 0
    Here are three videos that explains very well why telcos are toll roads and the risks with telco always and up ahead.
  • Cost of Car Ownership Calculator Revisited 2013 (1)

    Source: Kyith Ng
    Date Submitted: 14 Oct 2016
    Views: 285
    Downloads: 0
    o some would remember I have a cost of car ownership calculator some time back. You can access it over here. Here are the instructions how to use it. I did a computation in 2010 (2.3 years ago) with my good friends 1.5 litres Toyota Vios. Then, you can pay for 10 years, the loan interest rate 2.2%. (See the result here) It’s a whole different ball game now. We are constrain to only 60% of loan servicing and a higher interest rate and a shorter tenure. One reader Lee Wen Loong actually mentioned this necessity to own a car to me.
  • First REIT acquires SH Bali and Simatupang–Asset Dumping?

    Source: Kyith Ng
    Date Submitted: 14 Oct 2016
    Views: 344
    Downloads: 0
    This morning we got news that First REIT will acquire two more properties from parent Lippo Group. You can see the announcement here. Details here. The details of the acquisition are as follows Acquired at 12.5 – 13.3% discounts to last valuation Initial NPI Yield of 9% It will be funded by debt facility and issuing new units to parent sponsor Lippo Group New NAV at 90 cents thus new Price to NAV is 1.36 times We will not know the new DPU but the annualized Q3 2012 Net Distribution Income (NDI) is 42.2 mil (This is the most untainted NDI as no Adam Road distribution and no Sept 2012 acquisition distribution) September acquisition NDI = 5.1mil Bali and Simatupang NDI = 7.6 mil Estimate new NDI = 42.2 + 5.1 + 7.6 = 54.9mil New outstanding number of shares = 710 mil Estimate distribution = 7.7 cents. Current share price = $1.23 Prevailing yield = 6.2% This should boost debt from 210 mil to 350 mil.
  • Last 3 years, April have been the intermediate peak

    Source: Kyith Ng
    Date Submitted: 14 Oct 2016
    Views: 300
    Downloads: 0
    The Reformed Broker highlights this trend : In 2010, 2011 and 2012, the US stock market peaked during one of the four weeks of April. A correction of between 10 and 19% ensued. Its a small sample size though.
  • Acquisitions – They don’t always turned out the way you want

    Source:
    Date Submitted: 14 Oct 2016
    Views: 737
    Downloads: 0
    Acquisitions can turned into massive money losing events. As investors we should always be sceptical about things always working the way we want. Here is a nice plug from Firmex which shows some of the worse acquisition disasters :
  • MIIF propose to divest Taiwan Broadband Communications (TBC) into Asian Pay Television Trust (APTT)

    Source: Kyith Ng
    Date Submitted: 14 Oct 2016
    Views: 608
    Downloads: 0
    In a move to realize value for MIIF’s shareholders, MIIF proposed to divest TBC into a business trust and payout in units and special dividends to shareholders. MIIF finally proposed concrete plans to divest its crown jewel TBC into a business trust. The full report can be viewedhere. You should read this article I posted 2 years ago on MIIF before reading this.
  • Will future home buyers’ income able to afford higher monthly payments?

    Source: Kyith Ng
    Date Submitted: 14 Oct 2016
    Views: 335
    Downloads: 0
    The ability for sustainable higher property prices heavily depends on future interest rates and income growth. I am most of the time not the brightest person and having not build up a reading habit, some profound way of getting the point across can still be a challenge for me. That is the impression I get when I came across this article at The Basis Point. Essentially it is a guest account of how a money manager friend of the author views his home. As investors or as home owners we can learn a fair bit from this as well.
  • Bail In of Banks to Affect Singapore?

    Source: Kyith Ng
    Date Submitted: 14 Oct 2016
    Views: 346
    Downloads: 0
    What happened in Cyprus looks very new to people not familiar with Bail-Ins. We are more familiar with Bail-outs, government or other parties coming to the rescue of misbehaving too big to fail institution. In the case of a bail-in, not just in banks, regulators would have the power to impose losses on bondholders while leaving untouched other creditors of similar stature, such as derivatives counterparties. By quickly addressing the problems of sickly institutions, they would also help stabilize the financial system by removing uncertainty. David Kotok guest wrote a good article on this at Barry Ritholtz’s blog. I urge folks interested in the subject to read it.
  • Waiting for the market correction. What should be your action plan

    Source: Kyith Ng
    Date Submitted: 14 Oct 2016
    Views: 311
    Downloads: 0
    Stock market corrections can feel frustrating to wait for but they will come around. Focus on your plan when it does. There are readers that regularly tells me they are waiting for the next correction to buy stocks they find its good but missed out on. So what should be their action plan?
  • SGX Smallcaps 2013–17% return year to date

    Source: Kyith Ng
    Date Submitted: 14 Oct 2016
    Views: 691
    Downloads: 0
    Back at the tail end of 2012, I started a portfolio of 20 Singapore small caps that I find interesting and track them throughout the year. These posts are updates of the results. You can actively view this portfolio at a live Google spreadsheet here. The STI ETF have returned 3.7% during this period. This portfolio has an unrealized gain of 34k on a capital of 200k, a total of 17% return. Its really a shame this is not my real portfolio. There are really a lot of unexplained market movements. While Silverlake, Sheng Siong, Kingsmen and Straco have shown good results, a lot of the stocks seem to move ahead of itself. Boustead, which I owned, have not provide a profit outlook any different from 2012 yet it became the best performing stock. To those that are invested, congratulations, you have shown great foresight as well as the courage to make profits.
  • Distressed Dividend Stock Buying

    Source: Kyith Ng
    Date Submitted: 14 Oct 2016
    Views: 318
    Downloads: 0
    When a stock you think is value takes a plunge, what should your thought process be when evaluating your entry point. Everyone wants to own that stock with that great business model when its beaten down. But how low is low? We talk about having a game plan when waiting for a correction recently. When it comes to an individual stock or a specific market segment, the game plan is a bit different.
  • Ascendas Real Estate Trust–Getting Expensive

    Source: Kyith Ng
    Date Submitted: 14 Oct 2016
    Views: 685
    Downloads: 0
    AREIT announced their results this evening. Of note, distribution per unit dropped from 3.5 cent to 3 cents per quarter. The number of units have also increased due to the placement, but the contribution have not kicked in yet. The distribution is rather disappointing, but we hope that with the contribution next quarter they restore some of it. The amazing thing is the performance fee. The annualized distribution would be 12.25 cents. Which is a far cry from the 14 cents we are getting now. I believe with the contribution next quarter it will be higher than that.
  • 10 things to think about on Insurance Coverage for Early Critical Illness

    Source: Kyith Ng
    Date Submitted: 14 Oct 2016
    Views: 277
    Downloads: 0
    Early critical illness insurance preys on people’s fear of an increasing likely scenario. Will a more prudent savings and contingency plan may make more sense? Note: Author is not a certified financial advisor. These are personal opinions. Please consult your insurance advisor. One area of insurance advice that is getting very popular is early dreaded disease or early critical illness cover. I kind of have an idea that this is the sort of insurance that insurance companies like to sell. They seem expensive yet prey on people’s fear from hearsay or acquaintances experiences. This article provide you guys with 10 points to think about.
  • Your required return: An 8% per annum return on investment over 10 years

    Source: Kyith Ng
    Date Submitted: 14 Oct 2016
    Views: 317
    Downloads: 0
    Successful investing should be based on purchasing assets yielding a good long term return at the right price I was reading The Outsiders: Eight Unconventional CEOs and there was this portion where it highlights the CEO of Washington’s posts mantra for acquisitions is that it must meet a 11% cash yield over 10 years. I thought that is rather interesting seeing that many are asking what is the right price to buy stocks. The most important skill for a CEO is capital allocation, and for the investor it is also the same skill.
  • Withdrawal of a high return annuity policy

    Source: Kyith Ng
    Date Submitted: 14 Oct 2016
    Views: 273
    Downloads: 0
    Yesterday my good friend forward me this sale proposal on this variable annuity policy. This policy looks ideally suited for retirement. Majority of the annuity policies look bad because the returns are around 2-3% and people think its highly dependent on how long you live. For me, there are other benefits of annuity. For one, if your retirement savings is large enough, you can actually lock in a good lucrative fixed payout. This payout can be used to cover daily expenses. Remember! I am not saying all your retirement funds go into an annuity, think of this as the cover for your daily expense account. For more on Annuities and their rate of return, read this article I wrote previously.
  • China Merchant Pacific: Dividend Analysis, AGM updates and Q1 report

    Source: Kyith Ng
    Date Submitted: 14 Oct 2016
    Views: 339
    Downloads: 0
    China Merchant Pacific is a China Toll Road operator listed in Singapore currently spotting a high dividend yield of 6.1% This morning I went to its AGM and this evening it release its Q1 report. You can view the report here. Here is a review of the investment thesis and some updates from the AGM. Before reading this, you may want to revisit some older articles on China Merchant Pacific (CMHP)
  • Overseas Property Leases and Rentals offers more predictable cash flow

    Source: Kyith Ng
    Date Submitted: 14 Oct 2016
    Views: 514
    Downloads: 0
    While doing my research into a few companies fundamentally, it seem to occur to me, Singapore stocks investing overseas get a more predictable cash flow from overseas property.
  • Fundsupermart sells insurance now! Rebates 50% of commission back to you

    Source:
    Date Submitted: 14 Oct 2016
    Views: 269
    Downloads: 0
    Online platform Fundsupermart starts selling NTUC Income, TM Life and Manulife and are making commission structure transparent to you. One of the recommendations in the Financial Advisory Industry Review Panel Report was to increase the transparency of the industry and the aftermath word is that there will cheaper alternative choices for the consumers. This week we got news that Fundsupermart, who are one of the earliest to bring cheaper unit trusts compare to the banks to the consumer, will start selling insurance from 3 insurance companies. They are also the earliest to make it easy for folks like you and me to purchase Singapore Government Bonds (SGS) for as little as $1000.
  • Asian Pay Television Trust (APTT) IPO

    Source: Kyith Ng
    Date Submitted: 14 Oct 2016
    Views: 348
    Downloads: 0
    The prospectus for this IPO is out. You can read it here. Many would have been very appealed by its Starhub like business and a really high yield. The trust is seeking to pay a yield of 8.25%-9.0% in 2014. Would I go for it. In a word no. The main reasons are listed here
  • Neratel–Is their cash flow really recurring?

    Source:
    Date Submitted: 14 Oct 2016
    Views: 332
    Downloads: 0
    I have got to admit that I missed Neratel. We have the chance to buy it at 40 cents or 50 cents for a fat dividend yield of 10% or 8% and we let it slipped. The primary reason why I didn’t buy is that I cannot sense a conservative dividend that they are able to pay comfortably at a recession scenario Being somewhat in a similar nature industry, I always thought that they are an order book based business, and that there isn’t much information to the recurring nature of the cash flow So now I would like to revisit this premise and call out to people in the telecom industry, infocomm and payments industry to see if they can help us make sense of this. They say that 45% of current revenue is recurring but I cannot pin point how that is made up.
  • Portfolio Rebalancing in individual stock investing

    Source: Kyith Ng
    Date Submitted: 14 Oct 2016
    Views: 333
    Downloads: 0
    How to carry out rebalancing if you invest in individual stocks to improve your wealth returns with less volatility I polled my facebook readers on what I have not really covered at Investment Moats and one common question is how I carry out rebalancing. Specifically, is rebalancing different if you pick stocks instead of a low cost index ETF? Before we start lets get some things out of the way.
  • Vanguard’s ETF gains approval to trade in HKSE. Perhaps SGX next?

    Source: Kyith Ng
    Date Submitted: 14 Oct 2016
    Views: 330
    Downloads: 0
    I got news from Andrew Hallam’s blog that Vanguard, the US investment company has gain approval to trade a selected group of ETFs in HKSE. This is big because if you would want to form a portfolio of low-cost index ETF, your best bet is to go for the non profit investment management company that’s objective is to minimize costs and create products that benefit investors. Vanguard was started in the 1970s by John Bogle, well known for being a fierce advocate of passive index investing. Last year, we covered over here that Vanguard attracted more money than many of its competitors, meaning more are starting to realize the benefits of passive index investing vesus active investing.
  • Risk Premium at a high, World stock markets all time highs

    Source: Kyith Ng
    Date Submitted: 14 Oct 2016
    Views: 312
    Downloads: 0
    Folks will be thinking why after a 4 year market run, we are still getting higher prices. Here is my quick take on it (Spoiler: It looks really bullish)
  • SPH–Financial Engineering at its best with this REIT move

    Source:
    Date Submitted: 14 Oct 2016
    Views: 327
    Downloads: 0
    SPH provided the circular today about its upcoming move to IPO their REIT. For me it is a good lesson of how well they executed this financial engineering. Presentation slide can be viewed here.
  • A Good Damning Analysis of Asian Pay Television Trust (APTT) and Macquarie’s Financial Engineering

    Source: Kyith Ng
    Date Submitted: 14 Oct 2016
    Views: 349
    Downloads: 0
    Many readers will know my take on this APTT IPO and its prospects. To be honest i am a bit bias, and you can read most of the rants here (with sub links). The IPO was very well received and who can blame them when they are being touted as very high yielding.
  • How to save money: Save your increment

    Source: Kyith Ng
    Date Submitted: 14 Oct 2016
    Views: 278
    Downloads: 0
    You would think that the closest people associated with me would have my best habits rubbed off them. Often the people that are closest to you are the ones that you have the biggest problem convincing. Enter my best friend. He loves to live a good life. Has a great job earning an above average salary, a house that was bought when the prices were far more reasonable, a weekend off peak vehicle during the times when Hyundai Avante was costing $44k. His big problem: A reluctance to save more. In his case, the problem is that he wants to keep his current standard of living yet he wants to build his wealth. Often a persons problem with saving are psychological. I can tell him to set aside 25% of his disposable income for saving like I always do. But to him that is loss aversion. Its like taking 25% of spending money from him. You can imagine the reluctance for him not to do that. People also couldn’t see far enough to want to save for a future that they do not know whether they will have. With these problems in mind do we have a better solution to this? Researcher Shlomo Benartzi has a good solution. A person like my best friend feels more comfortable saving in the future. He also doesn’t want to set aside X amount of money which mean reducing his standard of living. What do we do?
  • Why share price correct down on REITs and Trusts on interest rate rises

    Source: Kyith Ng
    Date Submitted: 14 Oct 2016
    Views: 343
    Downloads: 0
    The climb is fast but the drawdown is also fast for the low growth high dividend payers. I am not sure how many were trapped inside, but mosi at mosi.sg came up with an article to say there may be a CAP on how high these will go or even more distressing downside. I am rather lazy to explain so I came up with this.
  • SGX Smallcaps 2013 – Outperforming STI and returning 15.9% YTD

    Source:
    Date Submitted: 14 Oct 2016
    Views: 312
    Downloads: 0
    Back at the tail end of 2012, I started a portfolio of 20 Singapore small caps that I find interesting and track them throughout the year. These posts are updates of the results. You can actively view this portfolio at a live Google spreadsheet here. Half a year have gone by and we are currently having a correction that is taking the STI index from 3480 pts to near 3150 pts. We are back to where we started for the STI Index. So how have our Small Caps portfolio done?
  • NSL Ltd a consistent high dividend yielder with low payout

    Source: Kyith Ng
    Date Submitted: 14 Oct 2016
    Views: 351
    Downloads: 0
    NSL LTD was a 60 year old company which originally have much of its business in steel. That was sold off in 2005 to Tata Steel and restructured as such. Since then the other part of its business have been traded with little volume for years. In 2008, they managed to change their name to NSL, which sounds more appropriate consider they do not have a steel business any more.
  • Will your REITs go back to that same high again?

    Source: Kyith Ng
    Date Submitted: 14 Oct 2016
    Views: 333
    Downloads: 0
    The premise for this REIT appreciation seen in the Singapore stock market has been this global cheap money search for a safe yield. These REITs are the most visible out of the Singapore stocks. If you have chased these REITs up with only analyzing the REIT fundamentals and the yield and not thinking about the price you pay for them, you may be left with holding these assets at this price for a prolong period. Think about this, absence of this cheap fund flows, what would cause your REITs to go back to that price. REITs are not bad investments, but in all assets there is always the evaluation of price and value. The IPAD is a great product but if you purchase it at $3,000, would that be great value?
  • Powermatic Data System

    Source: Kyith Ng
    Date Submitted: 14 Oct 2016
    Views: 343
    Downloads: 0
    We profile ECS and Multi-Chem, two IT products distributors recently about their weak recent results. Multi-Chem yields 8.6% with no debts while ECS holdings yield 4.7% with debts. Today, took a look at a WIFI networking manufacturer Powermatics Data Systems that provide a 6.6% prevailing yield for the past 4 years. From the FY2012 annual report Powermatics look great:
  • Realty Income $O is a really scary REIT

    Source: Kyith Ng
    Date Submitted: 14 Oct 2016
    Views: 422
    Downloads: 0
    If there is a case for real fundamentals of real estate investment trust, then it has to be this REIT over here. Realty Income is a very old REIT which purchases commercial real estate for cash leased to tenants that have a good business and track record. The leases are typically for 15 to 20 years, which provides us with dependable lease payments each month that are used to support the monthly payments to shareholders.
  • A Jedi Mind Trick to Stay Invested with Bear Looming

    Source: Kyith Ng
    Date Submitted: 14 Oct 2016
    Views: 519
    Downloads: 0
    The Markets have ran for 4 years plus which is typical average for a bull. What usually happens is a 1-2.5 years of bear market. With that I get asked quite often where the market is going and when will the bear come. I am no fortune teller and market predictions are usually murky at best, whether you are using economics, politics or technical analysis to reason.
  • Too much turmoil! There is a better time to invest!

    Source: Kyith Ng
    Date Submitted: 14 Oct 2016
    Views: 308
    Downloads: 0
    Whenever I look at certain articles or charts, I think about conversations that I have with my acquaintances. This one reminds me of my ex-colleague whom I seldom talk about this kind of stuff. One thing I remember is him telling me 2 times that there is a good time to invest. Perhaps it is this period of worry that concerns main street folks. Vanguard Group posted this short rear view mirror look at their passively managed 60% stocks, 40% bonds portfolio. We have a pretty good 4 year run, and this passively (auto-pilot) portfolio that just buys and hold have gone through a rather worrying period. The experts and commentators are clamoring with so much opinions.
  • Saving $100k by the time you are 30 years old

    Source: Kyith Ng
    Date Submitted: 14 Oct 2016
    Views: 284
    Downloads: 0
    Today the Straits Times Published an article showing that it is possible to save $100k with roughly 6 years of work. The key thing is You have to save at least 50% of your annual pay You got to live within your means and make sacrifices What I felt it misses out are Young adults have many other liabilities that make it practically hard to achieve this Housing, Wedding, Honey Moon, Student Loans Hence the need for sacrifices!
  • The new insurance sales tactic: Buy Term Invest the Rest in Unit Trusts

    Source: Kyith Ng
    Date Submitted: 14 Oct 2016
    Views: 280
    Downloads: 0
    What I hear from some of my acquaintance is that there is a change in tactics of some advisory firms. They do see the prevailing trend that because of the internet, more people know about the virtues of Term Life Insurance and see Whole Life Insurance as costly insurance (see here) Being the ever evolving salesmen, the tactic have shifted to recommending term insurance through the buy term and invest the rest plan sell the invest the rest through many unit trust This in turn use a prevalent generally good methodology to make people accept the idea. The cheap insurance component also makes it more appealing. Since money is freed up, it allows the advisor to recommend a suite of unit trusts where they can earn recurring commissions from. Because most are concern over low interest rates in savings and the need for protection, it is likely this is easy to sell. The caveat for the consumers are these: The advisor is not well train in advising setting up a portfolio that is balanced, aligned to the customers risk profile The advisor and the customer buys into the latest fad, where they usually do the worse due to reversion to the mean Unit trusts are actively managed and majority don’t do well versus indexed ETF which are available to Singapore investors The sales charges and expense ratio result in long term high hurdles which active managers are unable to beat Overall the situation financially is perhaps better for the consumer versus old sales practices but the consumer can still do better. Some slides
  • Earnings sub plots to watch July 2013 Edition

    Source: Kyith Ng
    Date Submitted: 14 Oct 2016
    Views: 341
    Downloads: 0
    I decide to take a break from blogging even though I have some spare time. But this earnings season, there are some sub plots that I will want to see how it will turned out.
  • Over excessive budget tracking

    Source: Kyith Ng
    Date Submitted: 14 Oct 2016
    Views: 288
    Downloads: 0
    This Sunday, Jonathon continues writing about ways that you can live frugally after telling us that we can save $100k by age 30. You can read the article by buying a copy of Sunday Times (sorry I don’t want to get into trouble with SPH)
  • China Merchants Pacific Price Dropping

    Source: Kyith Ng
    Date Submitted: 14 Oct 2016
    Views: 324
    Downloads: 0
    Price have been dropping since I picked up 50% at 91 cents. Currently at 84.5 cents on low volume. The yield now have dropped from my last batch of purchase (almost 9 lots average at 89 cents for a 6.2% yield) Current yield is 6.5%. A sign of China Economic weakness or a buy opportunity? The largest expressway that constitute revenue and profit is the Yongtaiwen Expressway and the smallest is Beilun Expressway. Both of them are linked to Ningbo a busy sea port.
  • Planning Your Retirement Right Now

    Source: Kyith Ng
    Date Submitted: 14 Oct 2016
    Views: 289
    Downloads: 0
    Many Singaporean’s think retirement is far away so they only care about building wealth and not so much about taking distribution. I find that there are much retirees that needs something like this. This is not a complete article now but will be a placeholder for me to consolidate resources on retirement. I hope that by the end of 1 or 2 year I have consolidate a great article to help readers.
  • Have you made a decision with yourself to build wealth?

    Source: Kyith Ng
    Date Submitted: 14 Oct 2016
    Views: 277
    Downloads: 0
    Some of my friends know that I own a shop talking about wealth and finances. If you are on my Facebook or Google Plus (Like or + me btw! –>) or visited this blog, you would know about this. However, on a personal level, I don’t share that as a co-worker or a friend. Why is that so?
  • HKT Trust Interim result is lukewarm

    Source: Kyith Ng
    Date Submitted: 14 Oct 2016
    Views: 348
    Downloads: 0
    There are many fans of Singapore Telecom plays M1, Singtel and Starhub and are pretty obsessed watching their share prices and their yields. Perhaps they are best served spending time watching some telecom stocks that you can obtain overseas. 2 such hunting ground could be the UK and Hong Kong. The appeal is that there is 0% dividend withholding tax. (Note: China shares listed in Hang Seng have a 10% dividend withholding tax, which is rather low as well) In UK, you have one of the largest telecom in Vodafone. Vodafone is mainly a wireless telecom operator, having numerous companies all over the globe (including 45% of Verizon Wireless) In Hong Kong you have mainly HKT Trust, Hutchinson Telecoms and Smartone. HKT Trust is a business trust of Richard Li’s PCCW, spun off in 2011 at a rather high yield. It is the incumbent fixed line and broadband operator with a > 60% market share in both. It currently yields 5.3% Hutchinson Telecom is a balanced wired + wireless telecom operator. It currently yields less than 4%. Smartone is a full wireless operator. The attractiveness of Smartone is that its EV/EBITDA is less than 6 times while having a dividend yield of 7% with zero debt. This evening HKT Trust announced its half yearly results. Results look fair without much surprises.
  • Multi-chem continues to bleed for another quarter

    Source: Kyith Ng
    Date Submitted: 14 Oct 2016
    Views: 332
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    I talked about ECS and Multi-chem, IT distributors cum system integrators or after sales providers that could have issues due to them not being stockist. I realize I was late in that they reported their interim financial report. You can view report here. This small stock is really seriously thinly traded. The spread is damn wide.
  • China Merchant Pacific Q2 2013 Results

    Source: Kyith Ng
    Date Submitted: 14 Oct 2016
    Views: 325
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    China Merchant Pacific (CMHP) yesterday announced second quarter results and declaration of 2.75 cents dividends. I was rather interested to see if the recent weakness in the share price is indicative of the market anticipating a weak set of results. Fortunately, the results are pretty predictable. For new investors to this may want to take a look at this 2 articles Investing in the economic moat of toll roads China Merchant Pacific: Dividend Analysis, AGM Updates and Q1 report Results can be view here, here and here
  • Nam Lee–Where did that large cash holding went into?

    Source: Kyith Ng
    Date Submitted: 14 Oct 2016
    Views: 491
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    A lot of us look at the large cash holding and think that We have a value proposition there This cash holding can pay for many years of dividends Often we realize too late that the reason for that cash holding there is to serve as working capital. It looks really good during the good operation times. But when they are facing some lukewarm long term or short term operational issues, or cyclical down times, they can turn rather fast. Nam Lee press metals was at a rather good valuation not too long ago. It has a current market cap of SGD 77 mil but it was trading as high as SGD 89 mil. Its cash holding 1 year ago was 52 mil and no debts. The enterprise value works out to be 37 mil. The appeal is that Nam Lee have a low PE or EV/EBITDA indicating value. It would seem that at 2012 EBITDA of 19 mil, the EV/EBITDA co