Monday, September 24, 2012

Victory for k1 minority shareholders!

Last month, I posted an article on GKB Holding's proposed voluntary conditional cash offer for k1 Ventures Limited, the investment arm of Keppel Group. I am pleased to inform readers that the proposal did not go through and that the offer had lapsed on 14 September. The company had received only 77.62% of the total number of issued shares, way below the required 90% for the proposal to go through.

Extension of offer closing date
I was quite annoyed with GKB Holdings for extending the offer closing date TWICE. I thought the management of GKB Holdings was quite disrespectful to the minority shareholders when they extended the offer closing date without even improving the offer. I mean in view of the APB and Heineken saga, they should have revised and enhance the offer to make it appealing to the shareholders. Instead, they stuck with their initial offer of $0.135 per share and expect more shareholders to take up the offer. Their stance is that the counter is thinly traded and the offer is made at a premium based on the last 6 months of trading. Being a long term investor and loyal supporter of the company, I am disappointed with this recent turn of events. To be honest, I am not overly concerned with the trading prices of k1 Ventures as I am more of a dividend player rather than a speculator. So GKB Holdings' offer does not appeal to me at all. Furthermore, if I had accepted their proposal, I would have suffered a loss of more than $2000, excluding the dividends collected so far. If they wanted shareholders like me to accept their proposal, the offer has to be made based on the value of their investment holdings instead of the recent traded prices.

Investment in k1 Ventures
Prior to GKB Holdings' proposed delist of k1 Ventures, I had actually wanted to increase my shareholding in the latter. But now I am seriously considering whether it is prudent to do so. I thought to myself what if the management of k1 Ventures made another ridiculously low offer to delist the company again in the near future? I would potentially suffer losses amounting to thousands of dollars if this happened again. So whilst they have made an dividend announcement of $0.005 per share to be paid in 14 November, I am not impressed at all and decided not to invest any more monies in this counter.

Note: The above article chronicles my investment experience in k1 Ventures and is meant for sharing. Readers must not take it as investment advice to buy or sell the share.

Magically yours

Wednesday, September 19, 2012

QE3 and opportunities for investors

Last week, the US Fed announced another round of money printing programme known as QE3. It was reported that US$40 billion of new money will be issued every month until the US jobs situation improves. Since 2008, the US government had purchased trillions worth of Treasury securities, hoping to revive the economy and stimulate job growth. However, the strategy doesn't seem to work and US unemployment remains stubbornly high at about 8%.

Muddling through the years
I am not surprised that the US Fed announced this QE3. This stimulus measure comes at a time when the US citizen is voting for a new president. President Obama's job is on the line, so he has to make a last-ditch attempt to win votes and placate the citizen's rising unhappiness over the persistenet high unemployment rate. But whether this third round of money printing will be effective is a big question mark. The previous two round of money printing had flooded world wide markets with "hot money" but ultimately those moves were widey regarded as flops, in terms of job creation for the US citizens. Yes, its true that QE1 and QE2 had helped US to avert financial disaster in 2008 - 2009 but until now, the US economy still remain in a state of limbo. I think the US economy will continue to languish and muddle through for the next few years until 2017.

Make money through US properties investment
So what opportunities does QE3 represent for Singapore investors? Well firstly, our local banks take the cue from US banks. So until 2015, the interest rates for borrowing will probably remain low. So it might be prudent for houseowners to shop around and refinance their home loans with the most competitive interest rates. The amount of compounded interest saved can be thousands of Sing dollar. Another thing investor might want to take note is that as US economy is not doing well at the moment, this is the best time to shop around and invest in US propeties. As I always advocate in my blog, the best time to invest is always during the down times and not the boom times. So do not miss the window of opportunities. Otherwise when US economy recovers, the housing prices over there will rise again.

Magically yours.

Sunday, September 16, 2012

The Finance is Singapore's best personal finance blog

My blog has recently crossed the 100,000 pageviews milestone. Compared to other famous blogs in Singapore, I think this achievement is nothing fantastic. In fact, one well-known blogger announced that his blog garnered more than 20 million pageviews a couple of weeks ago. Whilst I envy his achievement and hope to emulate his success one day, one thing I would like to register is that investment is a very niche topic. The pool of interested readers for investment or personal finance is much smaller compared to more popular themes like food and travels. Nevertheless, my mission is to carry on and share with my readers my investment insights, my investment mistakes, money-making opportunities and lesson learned.

Singapore Number 1 investment blog
I often analyze statistics for my blog readership and noted that up to 70% of my readers were derived from The Finance (www.thefinance.sg), a local blog aticles directory on investment and personal finance topics. Normally I don't write reviews on other blogs but I think I owed it to The Finance for my blog's success so far. I think I am not exaggerating when I claimed that The Finance is Singapore's best personal finance blog. The blog features many well-written articles from local investment bloggers and many of them were very updated. I have benefitted a lot from reading articles contributed by fellow bloggers and gained much valuable insights. I joined The Finance as a guest contributor since late last year and had contributed a few articles. I cannot remember the requirements to join the blog but I think the blog owner choose his guest contributors carefully. That is why all the articles were written in very mature and responsible manner. You will not find articles making personal attacks or nonsensical comments.

SG Web Reviews is still not the finished article yet. Everyday I look through articles in The Finance, I noted much improvements are needed for my blog. I see it as a challenge to spur me on to contribute better quality of work to my readers. Henceforth, I think I will be a loyal fan of The Finance for many years to come. My vision is for my blog to grow with The Finance and I would not hesitate to recommend investment newbies to visit The Finance. I am sure newbies can benefit and lean from the topics written in The Finance.

Note: This article is written out of good-will. The owner of The Finance did not sponsor this article.

Magically yours

Monday, September 10, 2012

Proven way to become rich

Robert G. Allen will be holding an event in Singapore, titled "Multiple Streams of Income". Robert has probably helped to create more millionaires in America than any other single person. He is the author of some of the most successful finacial books in history. "Nothing Down" which is the largest selling real estate investment book in history, has sold more than 1,250,000 copies, and his other books - "Creating Wealth", "Multiple Streams of Income", and "Multiple Streams of Internet Income" - have all been major New York Times bestsellers. A popular guest on radio and television shows including "Larry King Live" and "Good Morning America", Robert has been featured in the Wall Street Journal, Barron"s Parade, People, and Reader's Digest.

The event will be held on 15 September 2012, Saturday Time 1:30pm - 3:30pm at Nexus Auditorium, #05-07 Cuppage Plaza (Somerset MRT, Exit B - 50m behind Centrepoint).

 During the event, you will learn the critical factors which determine your path to creating wealth.- -   -   Understand your vision and dream
-   How to form your "Dream Team"
-   Following a proven system
-   Finding a mentorship programme

Because self development should be viewed as an investment and not a cost, the event organizer is pleased to bring you this event for only S$99.00

In addition, you get a free copy of any of Robert G. Allen's best selling books, valued at S$33.00 retail price. Select any one of the following books and start implementing what you learn to get the desired results.
-   Multiple Streams of Income
-   The One Minute Millionaire
-   Multiple Streams of Internet Income
-   Creating Wealth (Chinese Edition)

And to help you apply the skills, the event organizer is offering the MULTIPLE STREAMS OF INCOME's Application and Implementation Workshop. In this 2-day workshop (valued at S$2,050.00), you will apply the knowledge learn at the event with the help of a local mentor team. This ensures you can convert the knowledge into skills that will produce results - your return on investment. The 2-day workshop is also available in Chinese.

"If you learn something, apply it and get no result - then you have learned nothing!"

So for the one-time Investment of S$99.00 (worth $2140) , you get :
1) Your 15th September 2012 event ticket valued at S$57
2)  Free Book of your choice valued at S$33
3) 2-day Implementation Workshop valued at $2,050
For $178 (worth $4280), you get the above for 2 persons.
So take action and sign up for this life-changing event now!!

To sign up for this event, please email me at sgwealthbuilder@gmail.com with your name and handphone number.

Magically yours

Sunday, September 9, 2012

My thoughts on "Letter about leaving Singapore"

Recently, I came across a yahoo article on an open letter penned by a blogger who was leaving Singapore for good. I felt compelled to blog down my feelings as the letter struck a chord with me. Like the author, I feel very jaded living in Singapore. In fact, last year, my wife and me were seriously contemplating leaving Singapore for Australia. In the end, we aborted our plan because of our aged parents. We love them too much and thought that we should not be so selfish and left them behind in Singapore.

The rich gets richer, the poor gets poorer
Friends and colleagues often tell me that Singapore has become a playground for the rich people. To a large extent, I agreed with them. Very often, there were articles of rich tycoons snapping up landed properties in prime district area or making big profits from stocks and shares. The rich gets richer. On the other hand, many middle-income and low-income earners hardly get by in Singapore with their incomes. Many of them are in debts, have hefty hospital bills to settle or just not earning enough to survive. How can you be happy and live a fulfilling life if you are constantly worried about bills, loans and debts? How can you remain motivated if you are hungry and desperate?

Trapped in the rat race
Whilst I have a job that provides a decent lifestyle for my family, I always felt like being trapped in the money-chasing rat race. My dream is to be my own boss or be a full time investor. But at this stage of my life, it is not possible for me to pursue the entrepreneurship or investment path as my family depends on me as the sole breadwinner to bring food on the table. Of course, things aren't going to be status-quo and I have set myself certain personal targets to meet in the short term. Within 6 years, I have plans to achieve financial freedom. Thereafter, I hope I have the opportunity to pursue my ideal lifestyle and dreams.

Magically yours

Monday, September 3, 2012

Jim Rogers And the Share Investment Conference 2012

The english version of Share Investment Conference 2012 was held at the Rock Auditorium, Suntec City Mall on 1st September. Like many others, I had attended the conference because investment guru, Jim Rogers, was one of the keynote speakers. I wanted to hear his views on the current market trends and his insights on the future outlook. As I know every investors should have his own investment styles and strategies, I did not expect the guru to share any "hot tips" on investments.

Upon reaching the venue, I was a bit surprised by the large turnout. There were about 400 participants, so it was a bit chaotic when I tried to make my way into the auditorium. I quickly settled down just in time for the opening speeches by the organizer and sponsor, Philip Capital. Then Jim Rogers took the stage and delivered his speech. He covered his background and his investment outlooks. Throughout his talk, he was engaging and witty. So it was not surprising that during the Q&A session, more than 20 participants queued up to ask him questions ranging from economic outlook, career to investment opportunities.

I would not be covering his talk in details as it would not be fair to those who had paid to attend this event. But I had a few key takeways. During the Q&A session, one of the participants pointed out to Jim Rogers that in 2007, he was bullish on China's prospects. However, many investors suffered heavy losses in S-chip as a result of the 2008 financial crisis and never recovered their losses. I think it was wrong for the man to put the blame squarely on Jim Rogers for his investment failures. He has to realise that when it comes to investment, there are no short cuts and lots of hard work is required. If investment is all about attending seminars and applying the latest hot tips from the gurus, then everybody would be rich. Ultimately, one has to research and analyze the data before investing. Relying on tips and directions from investment gurus is not the way to go.

Jim Rogers also touched on commodities investment. He is still bullish on commodities as he explained that fewer and fewer people in this world would want to become farmers. Because of this, the supply and demand of food commodities would be distorted. As such, he foresee that in the near future, the margins for farming will shot up and farmers will be rich. Whilst I agreed with him on this point, my investment focus is still on gold, silver and platinum. Our world has limited resources of these raw materials but on a daily basis, tonnes of them are mined for luxury jewellery and industrial uses. There shall come a day when there are supply shocks. Despite the recent correction, I believe, these metals still have a lot of potential to hit historic highs. I had not invested in gold for the past 2 years. But I am monitoring the situation very closely. I believe to opportunity to make it rich in Singapore is to invest in the market when there is a severe correction.

Magically yours