Hyflux in dark final chapter

Hyflux

White knight? What white knight? Dark days loom ahead for Singapore investment community as Hyflux enters its final chapter of its protracted restructuring process. On 17 April, I wrote that Hyflux is on course for a horror finale. That fateful day, PUB issued a 30-day notice to Tuaspring Pte Ltd (TPL) to terminate the Water Purchase Agreement (WPA) and take over the Tuaspring Desalination Plant (TSDP).

Hyflux saga is so bad its good

Does Hyflux deserve a comeback like OSIM?

SembCorp Industries should invest in Hyflux

The holy water of Hyflux Perpetual Securities

Hyflux

When Hyflux sought bankruptcy protection from the High Court back in February 2018, nobody could have imagined the outcome of today. There were plenty of high hopes as former white knight, SM Investments, had emerged out of nowhere to dangle a $530million rescue mission in late last year. But more than a year later, Hyflux appears to be on course for liquidation following the collapse of the rescue package. It must have been a devastating roller-coaster ride for Hyflux investors.

Hyflux going down in flames?

Evidently, PUB only intended to take over only the desalination plant of Tuaspring. On the other hand, the latest development triggered …

Tips for trading online in an economic slowdown

trading

In 2008, the world experienced the worst financial crisis since the depression of the 1930s. In response to the decline, the central banks lowered interest rates to stimulate lending, and started printing money in the form of quantitative easing program. These measures helped the economies of the developed countries to grow and in response, global stocks rose. In fact, all the major indices in Asia, Europe, and United States rose by triple digits.

However, markets do not go up forever. There is recent evidence that points to slowing economies. This year, central banks and leading organizations like the International Monetary Fund and the World Bank have lowered their economic forecasts.

trading

By looking at the economic calendar, there is evidence that a slow growth environment is the ‘new normal’. The global manufacturing PMI has declined to almost 50 while inflation remains significantly lower. In China, exports have shrunk while the Q4 growth was 6.3%. In the US, the economy is expected to grow by slightly over 2.0% this year after growing by 4.2% in the second quarter of 2018. The same trend will be seen in Europe, where Italy is currently in a recession.

As a trader, this should not worry …

Hyflux on course for horror finale

Hyflux

What a finale. What a finale. On 3 April, I wrote that Hyflux saga is so bad that its good. The following day, Olivia Lum confounded investors by announcing the termination of a key restructuring plan with white knight, Salim-Medco consortium SM Investments. Prior to this latest turn of event, Hyflux investors had staged a public protest and planned to vote against the proposed rescue plan. But as the saying goes, Man proposes, God disposes. Apparently, Olivia had the last laugh.

Hyflux in doomsday path?

The latest twist is indeed stunning because Hyflux claimed that it has no confidence in SM Investments in completing the rescue deal and is currently seeking other potential investors. But what is even more bizarre is that Hyflux claimed that PUB’s intention of taking over Tuaspring Desalination Plant without seeking compensation would enable the firm to reach out to a “wider pool of investors”.

Does Hyflux deserve a comeback like OSIM?

SembCorp Industries should invest in Hyflux

The holy water of Hyflux Perpetual Securities

Hyflux

Make no mistake, Tuasping is an integrated plant consisting of both water desalination and gas turbine power plants. Obviously, it makes sense for PUB to take back the Tuaspring …

The best and worst SGX stocks

SGX stocks

What is a growth stock, a dividend stock and a defensive stock? These terms had often been used in various online articles and can be quite intimidating to investors. Understanding these terms is essential because you may want to buy stocks that fit into your investment strategies and temperament. In this article, I will attempt to explain these terms and use some SGX stocks as examples.

Best SGX stock research campaign

SGX stocks

Many Singaporean investors will agree with me that investing in SGX stocks is not a walk in the park. Quite a number of local investors had lost their pants investing in Hyflux, Noble and Midas stocks. Then there were those investors who had lost their monies investing in oil and gas companies facing liquidation issues due to the meltdown of oil prices. And don’t even get me started on the thrashy S-chips that had caused plenty of heart pains for investors. On looking back, the past decade was certainly disaster after disaster for SGX stocks.

Given the spate of investment misadventures, investors can be forgiven for thinking that SGX stocks tend to generate poor returns. To this end, I beg to differ. Stock picking is both an art and …

Supplementary Retirement Scheme (SRS) strategies

SRS

Supplementary Retirement Scheme (SRS) is part of Singapore government’s effort to address the retirement needs of Singaporeans and is meant to complement Central Provident Fund (CPF).

Over the years, SRS had grown in popularity in Singapore as contributions surged from $0.16billion in 2001 to an explosive $8billion in 2017. During this period, the number of account holders also increased 10 fold, surging from 11,890 to 140,695. Given that so many people had jumped into the bandwagon, it is worthwhile to examine the merits of the supplementary retirement scheme.

While both SRS and CPF are retirement schemes, they work differently and address different financial needs. CPF focuses on housing, healthcare and retirement needs while SRS is a scheme that provides tax relief, investment and saving opportunities.

SRS

Generally speaking, SRS is a scheme that Singaporeans and foreigners should consider in the early years of their careers because it comes with many benefits and flexibility. In this article, I will share my strategies and insights on how to leverage SRS to boost your retirement income. I would also highlight the best possible way to exit the fund.

SRS for retrenchment hedge

Firstly, contributions to CPF is mandatory while SRS is purely voluntary. …

ThaiBev share price in explosive form

ThaiBev share price

In September 2018, I wrote that ThaiBev share price was trading at attractive levels and that represented a good opportunity for accumulation. Since then, ThaiBev share price went on a rampant bull run, surging from $0.60 to the current $0.85. The powerful run represented a whopping 42% increase for ThaiBev share price.

Devastating crash of ThaiBev share price

Given the giddy form of ThaiBev share price, should investors take profit and cash in or hold on with the expectation of further hike in ThaiBev share price? To answer this question, it really depends on your entry and exit levels. If I had entered this counter at $0.60, I would cash in now.

ThaiBev share price

Some readers may say that I have short-term mentality but I don’t really care. A dollar gained is a dollar earned. There are not many SGX-listed stocks that appreciated in value in such short-time, so investors should strive not to be greedy in this sort of market condition. Fundamentally, this counter is a growth stock and therefore, ThaiBev share price is sensitive to its revenue performance.

Certainly, it had been a bitter-sweet journey for ThaiBev investors as ThaiBev share price plummeted following the implementation of a new Excise …

Hyflux saga is so bad its good

Hyflux saga

The unfolding Hyflux saga is like a cheesy Taiwanese drama series – so bad that its good. Why is that so, if you may ask? After all, 34,000 investors had lost their life savings investing in Hyflux preference shares and perpetual securities. In my opinion, there are plenty of important lessons to be learned out of this fiasco. And Hyflux investors had better learn from this episode or it would be like throwing good money after bad.

Does Hyflux deserve a comeback like OSIM?

SembCorp Industries should invest in Hyflux

The holy water of Hyflux Perpetual Securities

From the implosion of Lehman Brothers’ Minibonds in 2009 to the toxic gold buy-back schemes to the outrageous Swiber junk bond defaults, Singapore had witnessed numerous investment tragedies. Some of the investment schemes were so downright ridiculous that you would be surprised many Singaporeans actually bought into them. For sure, Hyflux saga is not the first, but it will not be the last as well. What made this Hyflux saga so intriguing is that investors had not learned the lessons through the years. Many of the Hyflux investors were also previously investors of Minibonds, gold buy-back schemes or Swiber corporate bonds.

Hyflux saga

To make …

Creative share price in sanity intervals

Creative share price

Is it another false dawn in the making or a case of the return of the prodigy? Earlier last year, Creative share price revived from a multi-year deep coma, surging from $1 to an explosive $9 within a week upon the release of its award-winning audio product – Super X-Fi. The resurgent Creative share price indicated a possible comeback for Singapore legendary entrepreneur, Sim Wong Hoo.

Can Creative Technology conquer the world again?

Creative Technology staged “mission impossible” comeback

Recently, my wife bought me a Super X-Fi headphone and I was totally blown away by the technology. Using a sophisticated head and ear-mapping process, Super X-Fi did bring out the 3D audio effects when I used it to play online music from my Samsung mobile phone. The quality of music did feel like I was listening to music from a studio. For the record, this is an honest review and I am not paid to write this review nor am I vested in this counter. In addition, whether Creative share price will rise because of Super X-Fi will have no impact on me.

Creative share price

Despite the tremendous hype over Super X-Fi, it is still early days to hail it as a …

SingPost share price set to roil big time again?

SingPost share price

Since collapsing to a 10-year low in December 2018, SingPost share price managed to crawl its way back to the $1.00 mark. But it seems that the recovery of SingPost share price could be a false dawn in the making as the management dropped a big hint in its recent financial report that a massive impairment to the carrying value of the US businesses is on the way.

Horror show of SingPost shares

For SingPost, impairments are assessed based on the full financial year results. The last time that SingPost recorded significant impairments was in FY2017 which saw SingPost suffered impairment charges of a massive $208.6million for TradeGlobal. The huge impairment charges walloped SingPost share price upside down back then. Thus, SingPost share price could be poised for another challenging time.

SingPost share price

The recent revival in SingPost share price should be attributed to the management’s aggressive share buy-backs. As at 21 March 2019, 13.8 million shares were purchased from open market. The share buy-backs provided critical support for SingPost share price, which would have suffered a worse fate given recent spate of toxic news on SingPost.

Taking into consideration the coming “tsunami” and the aggressive share buy-backs, investors of SingPost should …

Jumbo share price went mumbo jumbo after Temasek Holdings’ sell-off

Jumbo share price

The wheels came off the wagon for Jumbo share price as Temasek Holdings, along with several other major shareholders, sold off their stakes in Jumbo Group between 2017 and 2018. The flurry of selling activities saw Jumbo share price collapsing from a high of $0.72 in early 2017 to the current $0.40. Will Jumbo share price ever see daylight?

Listed in SGX Catalist only in 2015, Jumbo share price enjoyed a spell of bullish run between 2015 to 2017. For Jumbo share price, it seemed like the sky was the limit as the counter reached an euphoric high of $0.72. 2017 was supposed to be a milestone year for Jumbo as it celebrated its 30th anniversary. But in a twist of fate, Jumbo share price spiralled out of control after Temasek Holdings reduced its shareholdings and sold its majority stake to Ron Sim (founder of OSIM) in 2017.

Jumbo share price

As there are big boys involved in this counter, Jumbo share price is expected to be quite volatile. This is especially so given that the free float is only 22.9%. This means that any movements made by the major shareholders would have significant influence on Jumbo share price.

Jumbo share price

Lippo Malls Indonesia Retail Trust in dark chapter

Trouble come in troops for Lippo Malls Indonesia Retail Trust, which reported a set of terrible FY2018 financial results on 22 February 2019. Distribution per unit (DPU) for FY2018 dropped by a whopping 40.4% to 2.05 cents on the back of weakening Indonesian rupiah, new tax regulation and increased total operating expenses. It was certainly a revelation for Lippo Malls Indonesia Retail Trust investors for the past one year!

For those investors who bought Lippo Malls Indonesia Retails Trust at IPO price of $0.80 in 2007 and hold it till now, they would be staring at massive paper losses even if total DPU had been factored in. This is because the unit price has free fell to a dismal level of $0.192.

Lippo Malls Indonesia Retail Trust

For sure, it had been a roller-coaster ride for unitholders of Lippo Malls Indonesia Retail Trust. But then again, who said that investing in REITs is safe? Should Lippo Malls Indonesia Retail Trust investors throw in the towel or hang on for their dear lives?

Sinking feeling for Lippo Malls Indonesia Retail Trust

As if the above is not enough, investors of Lippo Malls Indonesia Retail Trust should expect maelstrom for its unit price as parent company, Lippo …

SPH share price in need of Tongkat Ali

Hyflux

SPH investors must be wondering what the hell is happening to SPH share price. For the last couple of years, SPH share price had an astonishing correction, falling from a mighty high of $4.00 in 2016 to the current $2.45 level. It appears to me that FY2018 had been a watershed year which saw SPH recording revenue that fell below the critical $1 billion. That killer blow sent SPH share price reeling to the rock bottom.

Given that SPH share price is in a state of disarray, will the recent takeover of M1 turn the tide for SPH? Should investors run for their lives or buy on the dip?

SPH share price

SPH share price in coma

Looking back, it is not difficult to determine the reason for the bearish SPH share price as revenue continuously fell from $1.17 billion in FY2015 to $982 million in FY2018. Even the change of CEO in FY2017 did not manage to halt the decline in business fundamentals nor revive the ailing SPH share price performance. The rot continued for SPH share price and apparently, the management has not found a way to get out of the rut.

At times, SPH did look like a lost boy …

Singtel share price in turmoil

Singtel dividends

In 2013, Singtel was trumped by Telenor and Ooredoo in its telco licensing bid in Myanmar, one of the world’s last untapped mobile market. The doomed attempt illustrated the perennial challenge that Singtel faces in its overseas expansion against the backdrop of growing competition in the Southeast Asia region. Nevertheless, not many would agree with the management expansion plan as Singtel share price stuttered following Moody’s revision of Singtel outlook to “negative”.

Although Moody’s lowered Singtel’s outlook, it affirmed Singtel senior unsecured ratings of A1. Moody’s has also affirmed the (P)A1 rating on the Euro Medium Term Notes programme as well as the A1 rating on all notes issued by Singtel Group Treasury. Despite so, Singtel share price wobbled slightly, dropping from $3.00 on 5 March 2019 to the current $2.95.

Singtel share price

While Moody’s assessment of Singtel is clearly damning, Singtel shot itself in the foot by delivering a set of Q3FY2019 results that fell short of many analyst estimates. Most business units reported declining profits on year-on-year basis. To make matters worse, the latest results marked the fifth consecutive quarter of declining profits. As a result, the management took a rare step to issue a statement that “Singtel remains financially …

Changi Airport REIT and Liew Mun Leong

Changi Airport Reit

With 590 awards under its belt, Changi Airport is obviously the pride of our nation. In this regard, recent market talks of a potential Changi Airport REIT certainly set the market on fire. It also comes at a time when Singapore government is pondering how to best fund the huge infrastructure spending in the coming years without straining our nation‘s budget.

If the proposed listing really does materialize, Changi Airport REIT would not only raise much needed funds to pay for the construction costs of Terminal 5 and Changi East Development, but also increases liquidity for SGX, which has seen a dearth of blockbuster IPOs in recent years.

Changi Airport Reit

For the local bourse, the lack of game-changing IPOs has almost reached borderline hysterical level. Thus, SGX CEO Loh Boon Chye is surely going to fight tooth and nail for the IPO of Changi Airport REIT. In recent years, Singapore has been losing its appeal in terms of IPO listings to Hong Kong, which has a formidable hinterland in China.

The problem for SGX is further exacerbated with the slew of privatization of large cap companies like SMRT, Keppel Land, Tiger Airways, OSIM and Neptune Orient Lines. In a couple of weeks, …

Gallant Venture in misadventure with Temasek Holdings

Gallant Venture

The recent Hyflux saga must have brought much publicity for Indonesia conglomerate Salim Group, which had emerged as a surprising white knight for the embattled Hyflux. However, Salim Group already made waves in Singapore back in 2006 when it joined forces with SembCorp Industries to list Gallant Venture in Sesdaq (the predecessor of Catalist). The major restructuring brought 16 different companies together under the umbrella of Gallant Venture and saw Sembcorp Industries rationalising its industrial park and leisure investments on the Indonesian Riau Islands through Gallant Venture.

Today, Gallant Venture is an investment holding company with five major business segments – Automotive, Utilities, Resort Operations, Property Development and Industrial Parks. With such diversified business activities, understanding Gallant Venture is certainly not easy. As a matter of fact, Gallant Venture is no longer just an infrastructure developer-cum-operator located in Bintan because it now derives most of its revenue from its automotive business.

Gallant Venture

With a market capitalization of $693 million, Gallant Venture is a mid-size cap in Singapore Exchange. Salim Group, through Parallax Venture Partners XXX Ltd, is a major shareholder with 55.02% stake while Temasek Holdings, through SembCorp Industries, holds 10.4%. With two big boys behind Gallant Venture, what is the …

Golden Agri share price in false dawn?

Golden Agri share price

Is it the light at end of tunnel or another false dawn in the making for Golden Agri share price? As a palm oil plantation owner based in Indonesia, Golden Agri share price destiny is closely intertwined with the crude palm oil (CPO) price, which has collapsed for the past few years. Recent resurgent in CPO led many investors to believe that recovery of Golden Agri share price is on the way. But is this really the case or is it a bobby trap awaiting investors?

To put things into perspective, the only predictability of Golden Agri share price is its unpredictability. Against the backdrop of declining commodity prices, Golden Agri share price had been pretty volatile in 2018. To make matter worse, Indonesia rupiah plunged in 2018 as a result of rising US dollar, roiling Golden Agri’s businesses in the process. The challenging operating environment led to Golden Agri to record its first annual losses in 10 years.

Golden Agri share price

To rub salt into wound, arch rival Wilmar posted a net profit of USD1.27 billion for full-year FY2018. Given the wretched performance of Golden Agri, should investors run for their lives or keep faith with the management? In this article, I …

Haw Par share price danced with UOB

Haw Par share price

From $3.00 in 2009 to $14 in 2018, Haw Par share price enjoyed one of the most incredible bull runs in Singapore Exchange as it surged more than four fold within the span of a decade. The berserk run of Haw Par share price certainly created much wealth for long-time investors but its bullish run seemed to hit the skid for the past one year. What has changed that caused the malaise form of Haw Par share price? Since my last coverage on this counter in 2017, Haw Par share price continued to amaze me with its adventure.

Unknown to many investors, this counter is actually a proxy for UOB share price. This is because Haw Par Corp holds 73 million UOB shares under its Investments segment. If investors observed Haw Par share price carefully, it would mirror exactly that of UOB share price for the past 3 years. For example, Haw Par share price increased from $7.50 in February 2016 to a high of $14 in May 2018. Likewise, UOB share price increased from $17.20 in February 2016 to a high of $30 in May 2018.

Haw Par share price

While UOB share frequently enjoys the limelight because of its status as …

Demolition of UOB share price left investors scratching heads

UOB share price

UOB investors must be dumbfounded. Among the three local banks, DBS share price was the only counter to rise following the release of a stellar full-year 2018 financial result. On the other hand, OCBC share price self-destructed because of declining profit for Q4. But the case is rather bizarre for UOB because UOB share price actually tanked from $26 on 21 February to a low of $25 on 28 February after delivering increasing Q4 and full year 2018 profit.

Perhaps the imperious form of DBS business performance had overshadowed UOB’s. Nevertheless, UOB investors should not be disappointed by UOB share price performance because they should be heartened by UOB’s improving net interest margin of 1.82%. Return on Equity stormed to a high of 11.3% from 10.2% last year.

UOB share price

To celebrate the feat, UOB announced a final dividend of 50 cents per ordinary share, and a special dividend of 20 cents. Together with the interim dividend of 50 cents, the total dividend for the financial year ended 31 December 2018 amounts to $1.20 cents per ordinary share, an increase of 20% over last year. Inclusive of the special dividend, this represents a pay-out ratio of approximately 50%. The special dividend would …

OCBC share price torpedoed by Great Eastern

CMT share price

What a downer! In a month in which most investors expect local banks to announce rosy financial results, OCBC dropped the bombshell of a less-than-flattering Q4 performance. In a twist of event, OCBC share price got bombed out after delivering a lower Q4 net profit of 11% at $926 million. The surprise culprit for the disastrous performance was OCBC’s flagship subsidiary – Great Eastern Holdings, which announced a stunning 30% drop in net profit.

Of course, one quarterly result does not define OCBC share price but OCBC management team was left absolutely red-faced as DBS and UOB both announced increasing profits of 8% and 7% respectively for the fourth quarter. Certainly, investors wasted no time in punishing OCBC share price. OCBC share price went into goofy mode, falling from $11.60 on 21 February 2019 to $11.30 on 25 February 2019.

OCBC share price

While OCBC share price got walloped by lower contributions from its insurance subsidiary, its core banking operations delivered a robust performance which saw it growing 22% from a year ago to $817 million. Net interest income increased 9% year-on-year to $5.89 billion from $5.42 billion in FY17. Customer loans grew 9% to S$258 billion across all key markets. Based on …

DBS Group Holdings share price set for magical run with Temasek Holdings?

DBS share price

Crisis? What crisis? DBS Group Holdings rubbished all talks of impending economic crisis by staging yet another blockbuster performance – net profit surged 28% to a record $5.63 billion. Total income increased 11% to $13.2 billion from loan and fee income growth. Despite the continued business momentum, DBS Group Holdings share price suffered an embarrassing loss of form throughout 2018. On this note, would DBS Group Holdings return to winning form in 2019?

Return of DBS Group Holdings share price

From a high of $30.80 in May 2018, DBS Group Holdings share price suffered a stunning meltdown to a low of $22.80 in October 2018. Following that 26% correction, DBS Group Holdings share price never really recovered. Many investors may be waiting at the sidelines and adopting a wait-and-see approach as a result of the shares volatility.

DBS Group Holdings

Notwithstanding the volatility in the share price, it certainly seemed that the strong US market blew away any lingering doubts on the growth prospect of DBS Group Holdings, which had seized the opportunity to grow its loans to 6% to $345 billion against the backdrop of rising interest rate hikes. Net interest margin increased 10 basis points to 1.85% with higher interest rates …

StarHub share price trashed to 14-year low

SGX stocks

StarHub CEO, Peter Kaliaropoulos must be feeling the heat again. On 18 February 2019, StarHub share price plunged to a 14-year low of $1.61. The last time that StarHub share price was trading at such disgraceful level was in 2005. The trigger for the massive sell-offs was obviously the dismal Q4FY2018. Following the announcement, investors wasted no time in punishing this counter, sending StarHub share price to rock bottom.

It seems that honeymoon period is over for the StarHub CEO. Following his appointment on 9 July 2018, StarHub share price enjoyed a brief respite and even managed to halt its horrendous slump. Then the announcement of Keppel and SPH buy-over of M1 shares had led to a resurgent StarHub share price in September 2018. Investors had speculated that a potential privatization of M1 could lead to lower competition for StarHub.

StarHub share price

But reality started to sink in and investors soon realize that the previous rebound of StarHub share price was a mere false dawn in the making. The headwinds remained the same while business fundamentals continued to decline. In fact, full-year results for FY2018 saw StarHub reporting the worst revenue and net income in five years – $2.36 billion and $201 …

Singtel share price in for terrifying ride

Singtel share price

What a perfect storm for Singtel share price. Singtel share price is set to face reality once more as the telco announced a set of disastrous Q3FY2019 financial results which saw most business units reporting declining profits. Net profit declined 14% to $823 million due to increased competition in India. In my last article on Singtel share price, I predicted that this counter would enter 2019 in bad shape. Indeed, Singtel share price plunged to $2.86 on 3 January 2019 and only recently recovered to the $3.00 level. However, the recent financial results would likely roil Singtel share price again.

It appears to me that Singtel share price is set for a roller coaster ride as the Q3FY2019 results fell short of many analyst estimates. Most business units reported declining profits on year-on-year basis. To make matters worse, the latest results marked the fifth consecutive quarter of declining profits. The last time that Singtel recorded an improving quarter of profit was when it sold off majority stake in NetLink Trust. And that was in 2017.

Singtel share price

Investors would note that Singtel share price has been bearish in recent months. Nonetheless, the M1 general offer had led to a mini-recovery for Singtel …

mm2 share price in song and dance with Temasek Holdings

mm2 share price

Has mm2 share price lost its magic? Like many homegrown listed companies, mm2 share price suffered from unjustified poor valuations in recent years despite clocking in decent business performances. Perhaps it is a case of being listed in the wrong place and wrong time, resulting in mm2 share price being grossly misunderstood by many investors. It also doesn’t help that most Singaporean investors tend to invest in dividend stocks or REITs, leading to the pervasive lack of interest in growth stocks like mm2.

As a Singaporean, I am always supportive of homegrown companies, especially the small and medium ones. Secondly, as a content producer, mm2’s business model resonates with my blog, SG Wealth Builder. But I reckon the impetus for this equity research is my fear that mm2 may be on the verge of throwing in the towel and potentially privatize to seek a foreign listing, like what Osim did in 2017. Such drastic approach is understandable because even though mm2 Asia’s business results had been consistently robust, mm2 share price performance turned out to be a disgrace.

mm2 share price

In September 2018, mm2 announced a strategic review with the aim of enhancing its corporate profile in North Asia markets and to …

SIAEC share price in bloodbath with Temasek Holdings

SIA share price

The sky is falling for SIA Engineering Company as SIAEC share price crashed to $2.21, a 10-year low on 26 December 2018. The correction of SIAEC share price could be due to market anticipation of a set of poor third quarter FY2018/19 results. Following the release of the results, SIAEC share price recovered to the $2.50 bandwidth but started falling again in early 2019. On the basis of the recent volatility, I smell blood for SIAEC share price and investors should brace themselves for a roller-coaster ride.

Investing in SIAEC is not fun. If investors look back, SIAEC share price has suffered a horrendous bloodbath, falling from $5.00 in 2013 to the current $2.40. The drop of 50% in SIAEC share price within 6 years make this counter an awful falling star. Should investors hang on for their dear lives or hope for a privatization offer from parent company, Singapore Airlines? SIAEC share price SIAEC share price in destructive mood

It had been woes after woes for investors as the dismal SIAEC share price performance saw it being booted out of the prestigious STI benchmark in 2017. Following that, SIAEC share price tanked after a surprise block sale by JP Morgan. SIAEC share …

CapitaLand Mall Trust unit price in explosive form

CapitaLand Mall Trust

What a breath-taking form! For the past one year, numerous blue chips in Singapore Exchange suffered from a terrible loss of form, causing many wealth builders to lose their pants. Many REITs were not spared from the rout either. CapitaLand Mall Trust unit price is one of the rarest of rare counters to buck the trend to enjoy a magnificent rally. The gravity-defying form of CapitaLand Mall Trust unit price is certainly intriguing as the unit price remained bullish even after a massive $277.6 million private placement exercise in November 2018.

With distribution yield of 4.8% and Price/Book Value of 1.19 as of 11 February 2018, current CapitaLand Mall Trust unit price is indeed attractive. The top three major shareholders are CapitaLand Limited (27.12%), BlackRock (7%) and NTUC Enterprise Co-operative (3.93%). With such a stellar group of institutional investors, investing in CapitaLand Mall Trust seems like absolute no-brainer. Interestingly, NTUC used to be a substantial shareholder with 5% stake. However, since September 2018, NTUC had quietly pared down its stake in CapitaLand Mall Trust to the current 3.93%.

CapitaLand Mall Trust

In this equity research article, I will share my insights on what are the factors that I would look out for when …

Can Keppel share price meet the great expectations of Temasek Holdings?

Keppel share price

It is that sinking feeling all over again for Keppel share price. And it appears to me that investors are not convinced of a turnaround of Keppel share price. Following the release of a strong full-year 2018 financial result on 24 January 2019, Keppel share price keeps falling instead of rising. Management must be rubbing their eyes and wondering what on earth could have happened to Keppel share price.

With a stake amounting to 20.54%, Temasek Holdings is currently the largest shareholder of Keppel. The burning question among investors must be: how would Temasek Holdings fight its way out with Keppel? Should Temasek Holdings go for a “big bang” merger between Keppel and Sembcorp Marine to revive the ailing Keppel share price or continue to let Keppel share price spiral out of control? An overhaul in the corporate identity of Keppel may not be a bad thing considering the corruption scandal of FY2017 could have somewhat dented the reputation of the world leading oil rig builder.

Keppel share price

But then again, it is not all doom and gloom for Keppel share price as the company struck gold with its golden goose – Keppel Land, which recorded a net profit of $938 million

Singapore finance blogs and the story of the three thirsty monks

SG Wealth Builder

Yet another Singapore finance blog bites the dust. SG Young Investment is the latest local finance blogger to take a hiatus. This followed hot on heels the announcements from 15HWW and  Cheerful Egg, who are taking a long break from blogging.

Whenever such depressing news surfaced, I am always affected emotionally, spiritually and mentally. This is because when you have people leaving the scene, it is never a good thing. How can we build a vibrant ecosystem when you have players exiting one by one? And we are talking about good players, not mediocre ones.

Finance blogs

Although the exodus of finance blogs is not new, it highlights the fragility of the finance blog fraternity. Over time, if we are not careful about it, the community of finance blogs may become a thing of the past. Is this what Singaporeans want? I always believe the sum of parts is greater than the strength of a person. In this regard, I would like to share the story of the three thirsty monks.

The three thirsty monks

Once upon a time in China, there lived a young monk who lived in a temple high up on a mountain. Every dawn, he had to …

Asian Pay TV Trust unit price left Temasek Holdings red faced

Hyflux saga

What an absolute nightmare it is for investors. The disastrous collapse of Asian Pay TV Trust unit price is something that I have never seen for a business trust. Since its IPO in 2013, the performance of APTT unit price is nothing short of shambolic. From IPO price of $0.97, APTT unit price suffered an incredible meltdown within six years as the unit price slumped to the current abysmal level of $0.13. In fact, investors never had a good sleep with this counter as APTT unit price never exceed the IPO price level after its much-hyped listing.

Of course, die-hard fans of Asian Pay TV Trust would argue that this trust is one of the best yield counters in Singapore Exchange. In fact, over 43 cents per unit in distributions had been declared since IPO (including Q3 2018 distribution). But given the explosive free-fall of APTT unit price, long-term investors would still lose their pants even if all the distributions have been factored in.

Asian Pay TV Trust

Obviously, there are plenty of hard lessons to be learned for long-term investors and it is important that this group of people wise-up or else it would be like throwing good money after bad. How well …

Baidu share price in blaze of glory

Baidu share price

On 24 January 2019, it was reported that Microsoft’s search engine, Bing, was temporary inaccessible. There were market speculations that Bing might have been blocked by China’s Great Firewall, presumably due to the strict Chinese authorities censorship over online content. The latest development came after Google’s exit in 2010 and blockage of other US social media such as Facebook and Twitter. The ban of foreign search engines gave Baidu the golden opportunity to further entrench its market leadership in the China’ search engine space. But will Baidu share price continue to bask in the blaze of glory?

According to data from Analysys, Baidu’ search business represents 71% of China’s internet search market share as of December 2015. With Google exit from China, Baidu had apparently ruled the Chinese search engine market with no worthy competitor in sight. As a result, Baidu share price stormed from USD40 in 2010 to US263 in 2018. That was a mighty six-fold increase of Baidu share price within 8 years.

Baidu share price

However, like many technology stocks, Baidu share price suffered a devastating rout since middle of 2018. Obviously, the unfolding trade war between US and China had rattled Baidu share price. Indeed, for the past six …

CapitaLand share price faces destiny with Temasek Holdings

Hyflux

Since my last article, “CapitaLand share price ready to rocket”, this counter took on a life of its own. For the longest time, CapitaLand was a forgotten stock in SGX but trading volume hit the roof on 15 January 2019 following announcement of the $11 billion acquisition of Ascendas Singbridge from Temasek Holdings. Is this the dawn of a new era for CapitaLand share price?

Post transaction, CapitaLand will become the largest diversified real estate group in Asia, with combined assets under management (AUM) exceeding $116 billion. Given the mind-boggling deal size, one would wonder the impact to CapitaLand share price in the short-term and the implications to the REITs under both entities.

CapitaLand share price

Many analysts and financial bloggers have pointed out that the major impetus for this mega deal is all about scaling to achieve bigger things for CapitaLand. Of course, scaling is important for a real estate company. In recent years, CapitaLand share price had become stagnant and was consistently traded at prices below Net Asset Value (NAV). So it makes sense for a mega merger and acquisition deal to “stimulate” CapitaLand share price and drives returns for shareholders. As Temasek Holdings is the parent company of …