Sembcorp Marine

来了来了! 大鱼 (come liao come liao! big fish)
發啊! (Huat ah!)

Happy YANG Nian

Happy YANG Nian!!!

恭喜发财 !!! 

HUAT AH !!!

Hope you guys enjoy the festive season with your family and friends.

So back to some update, 

1. Sembcorp Marine had started its shares buyback lately.

good thing for investor like me, as it means the company views the current market price is fair or near low term, therefore decided to buy back own shares. also mean that the current market price might be stable as it will be supported by the company.

2. Frasers Centrepoint Trust upgraded to positive by Moody
https://www.moodys.com/research/Moodys-changes-Frasers-Centrepoint-Trusts-outlook-to-positive--PR_318653

3. Works on Northpoint City to begin in April.
Featuring the largest mall in the North of Singapore, Northpoint City with offer over 500 retail and dining options, more than double the current offering at Northpoint Shopping Centre. (see video for detail changes proposed)
http://www.channelnewsasia.com/news/business/singapore/works-on-northpoint-city/1664562.html

Lastly, the companies to announce their quarterly/full year result coming week.

23th Jan

Singapore Budget day 330pm to 6pm

24th Jan [result announcement]
Genting Singapore PLC

25th Jan [result announcement]
StarHub
Sheng Siong 

26th Jan [result announcement]

Noble 

Noble was recently attack by Iceberg for its accounting.
http://www.theedgemarkets.com/sg/article/singapore-central-bank-reviewing-statements-research-report-noble?type=Markets

27th Jan [result announcement]
Golden Agri-Resources
Hong Leong Asia
Indofood Agri Resources
Midas Holdings
Otto Marine
Singapore Technologies Engineering
Super Group

Swiber 

Happy CNY ; )

-ERIC KHOO

JURONG GATEWAY !!!

4th payment done-d
looking really forward.
JURONG GATEWAY !!!

A day with BigFatPurse

Now that I m proud to say "I m a graduate from BigFatPurse !!!" haha

spent more than half a day (9am to 7pm) at their office for their Value Investing Mastery Course.

I must say the money & time was extremely well spent. 

totally glad with the course content and of course, Alvin (the Trainer)

at the end of the class, 
our "learned skills" was actually put to a test competing with different groups in the class.

Double happiness!

my group named "Big Wallet Asset Management" came in the 1st place with a winning price of $150.00 (share among the group) haha. ok la, not bad right.

in short,

3 techniques was introduced namely CNAV 1, CNAV2 and POF.

wont be into much explanation today, death and tired (promise will share more in the future)

anyway, armed with new skills,

felt a little bit stronger now, 

hopefully to help me make more sound decision in my future investing journey,

***back to my CCNP Voice exam studying tomorrow (2nd last paper),
Exam on Tuesday.

wish me good luck = )

talk to you soon,

-Eric Khoo

Dividend Known till date

Apart from the monthly dividend from my Unit Trust and Maxim portfolio,

below is the known dividend collected/to be collect from my equity portfolio.

1. SPH Reit $39.90
2. Frasers CPT $55
3. Kepland $420
4. SembMar $240 

One of my aim/goal for this year 2015 is to have at least 1x dividend collection/month from my equity portfolio. Currently, most of the equity's dividend payout highly concentrated on specific months like May, August & etc. whereas months like January, April etc totally has no $$ from my equity portfolio (expect from my unit trust portfolio).

I like to treat it as if i m playing a game.
In game, when we achieve or clear some stage(s), we level up. Our Rank will increase.

Building our own portfolio is something like that too. It is actually very fun and interesting. 

Moreover, you get to enjoy the fruits you plant/build in the near future.

anyway, 

ST Engg and Sheng Siong will be announcing their financial result on 27th and 25th February 2015. 

Foresee MORE dividend to be declare!

Wish you big success!
& Advance Happy CNY!

-ERIC KHOO

How do you spend your money?

If you want to be rich (not immediate but in the near future) 

Then you need to understand how the rich spend their $$$

You see, we should always model the rich simply because they are the one who had done it already. therefore by modelling them, it  helps shorten our learning process, increasing our probability of success and also accelerate the journey of success (maybe they took 10 years, with modelling, we only take 8 years).

*modelling simply mean copy. haha

I remember one of my mentor (from Asia Charts) once told me, if you want to know weather a person is rich, simply look at the way he/she spends his/her money.

ok then, So how does the rich spend their money? They spend their $$ in buying "income producing assets", something that you buy one time and pays you every other months. You see, the rich focus on building their assets first and enjoyment/luxury later.

Comparing to the middle class, they might look rich on the shell but in reality, they are in deep in debt. The middle class likes to spend their money in buying assets they think are "assets" however they fail to realize whose asset(s) it actually belong to. You see, they pay monthly installment to the bank(s). Their Car or House (for example) doesn't bring in any money during these 10 or 30 years period. Therefore it is actually bank's assets. (only after 10/30 years then it is your owned assets)

A person basically works for 3 parties in their life.

1. Work for company.
2. work for gov.
3. Work for banks.

Many had fail to realise to "mind their own business" (I mean their own portfolio/work for themself)

Work for Company
You see, the sad part is you are working extra hard at work to make someone (your boss) who is rich even richer yet failing to make yourself rich. I m not saying not to work hard, the main aim here is about not forgetting to mind "your own business".

Work for Bank
finally, PAY DAY! I bet many would had say this at least once.
really can't deny this.
A portion of our active income (Pay) goes to the bank's income statement every month for our home mortgage. depending on individually, we might work for the bank for as long as 30 years.

Work for Gov
every working adult in sg need to pay income tax.
shall stop here. Very sensitive topic.  Haha

Lastly, for the poor, needless to say much, they earned $10 and spend $9.50 on every things they see. They are always equip with the latest gadgets. To them, everything is necessary and useful.

So...
how do you Spend your money?

Buffett's Quote of the Week

"Successful investing takes time, discipline and patience.
No matter how great the talent or effort,
some things just take time: you can't produce a baby in one month by getting nine women pregnant."

-Warren Buffett

The risk of not investing !

Latergram.

Actual announcement date was on 19th January 2015.

As many had already known, my portfolio mainly divided into stock equity & unit trust and one of the unit trust I hold is Eastspring Investment Asian High Yield Bond fund which pays monthly dividend in term of cash distribution.

On 19th January 2015, Eastspring Investment announced that they will raise their distribution payout from 5% to 7% per annum. (See below)

I think this is really a great news to the unit holders especially for me (in the stage of accumulation). This simply mean that with the same amount of money invested, now the return is higher. 

Often i hear people say "investing is risky!"

I personally think "NOT investing is even risky-er!"

Imagine the money you place in endowment, fix deposit or popular interest saving account (I m not saying it is not good, because I am also using that account), there is little or no chance the return (interest percentage) will raise (significantly). 

Comparing to buying into a company, company will grow. As the company grows bigger and bigger, the share will automatically increase as EPS/Book Value increases too. In addition, as a shareholders, we are entitled to dividend, so if the company grows bigger, likelihood the dividend payout will also increase too.

For this case, we are not only earning from capital appreciation but also dividend collection.

I always believe that everyone has the same proability of becoming rich and wealthy. The only factor that differentiate why some people can achieve their goals faster than another is "how badly you want it to be done."

The Key pointer I personally think is to start early and young.

Time is something that is gone and will never come back regardless how rich you are. Well, you can't buy time with money. A minute past is a minute gone.

Plant a seed today,

let it grows,

certain things in life, there is no way to rush but to wait...

only at the expense if you have the time.

Wish you great success, 

ERIC KHOO

Why Keppel DC REIT?

Decided to add another REIT to my portfolio and this time round I chose KEPPEL DC REIT.

A short description about Keppel DC REIT (from SGXStockFacts)

Keppel DC REIT is a real estate investment trust launched and managed by Keppel DC REIT Management Pte. Ltd. It invests in the real estate markets across Asia-Pacific and Europe. The fund acquires income producing data centre properties. Keppel DC REIT is based in Singapore.

As the counter just IPO last year, therefore there isn't much finance figures to see/view. The following figures are obtained from SGX StockFacts and are baseline to 4^th February 2015 market closing price of $1.005.

Can’t really tell much from the fundamental analysis as the counter doesn't have a long history. However judging from the figure above, we can see that the Earning per share is well kept at 0.05. PE Ratio is under acceptable range of 15-20 (my personal preference). Would definitely like to see the PE Ratio to drop in the next quarter result. Hopefully it can deliver!

Another plus point that I really really like is the majority shareholders in the counter. The top 5 stakeholders (all well known institution around the globe) add up to 89% of the total shares issued.

Dividend will be pay semi year basis. Forecast for distribution for 2015 will be around 6.8%.

Keppel DC REIT’s listing would see it raise gross proceeds of S$821.1 million. And the REIT would also draw upon S$295 million worth of borrowings. This would give the REIT a total sum of S$1.116 billion to work with. Of the total amount, S$537.9 million (48.2%) would go towards acquisition of the Singapore-based properties and the minority interests of the other properties in the portfolio. This is another pointer that I really like!

The remaining sum (51.8%) would be used for redemption of certain investors in the REIT (30.5%), repayment of existing debt (18.6%), expenses related to the listing (2%), and working capital (0.7%).

Also given in the prospectus,

•Explosive growth in internet usage and internet-enabled devices is driving data creation, especially in the video streaming, file sharing, e-commerce, and social networking spaces. Global data created has grown from 0.4 zettabytes (1021 bytes) in 2008 to 4.0 zettabytes in 2013; the amount of data created is then forecasted to jump nearly seven-fold to 28.1 zettabytes in 2018

•There’s a projected increase in organisations outsourcing their data centre needs as in-house data centres are less cost efficient and are becoming increasingly complicated to run. For an idea of how big the increase can be, the Asia-Pacific region is expected to see the proportion of outsourced data centres jump from 12.1% in 2013 to 38.5% in 2018.

•With the increase in data creation (as seen above) comes the growth in data transmission. Keppel DC REIT’s prospectus contains forecasts for global growth in IP (internet protocol) traffic to expand at an annual compounded rate of 21.0% between 2013 and 2018.

Lastly as we are moving into the era of internet world (you can see everyone is holding a Smartphone, Tablets and laptop everywhere). As a network engineer, I strongly believe the number of Date centers require in the future will only goes up. In addition, the recent Government’s move of building Singapore toward a SMART Nation is also in line with the growth rate of Data centres.

Company's result is likely to release around mid June and end December 2015.

Wish you big SUCCESS!

-ERIC KHOO

What I like about SIA Engineering?

Firstly let’s look at the majority owner in SIA Engineering.
As shown in the table below, I think I don’t need to say much already. (Haha)
The top 5 shareholders added up to an 81.5 percentage holding in the company.

Information obtained from SGX StockFacts.

Secondly, let’s look the fundamental analysis of SIA Engineering.

Take note that the figures I calculated is baseline to 3th February 2015 market closing price of 4.32

Again, the Information are obtained from SGX StockFacts.

The net income for SIA Engineering is well kept above 200K year on year. This had proved the sustainability of the company and business. In addition, there isn't much competition of similar field in Singapore. The only comparable competitor I can think of now is ST Engineering.

Another thing that I like about SIA Engineering is the high dividend payout scheme that SIA Engineering is providing year on year as compare to Earning per Share. On average, SIA Engineering is giving 20 cents per year on semi paying basis.

Healthy current asset and liabilities since 2011 had also proven company's stability in term of short term (12 months) receivable. Current ratio is well kept above 2.8 ranges. Plus point!

Lastly, what I like most about SIA Engineering is...........

the LOW debt environment they operate in since 2011. Almost close to 0 debt is incurred by a big company is really hard to find nowadays. This also means that SIA Engineering might have a lot cash flow for expansion in the future and for raining days.

Today, SIA Engineering also announced their third quarter result.
SINGAPORE (3th Feb 2015 Tuesday): SIA Engineering Group has posted a 23.5% rise to $46.3 million for the 3Q ended Dec from a year ago. Basic earnings per share was 4.13 cents for the quarter, up 23.9%.

Wish you great success,
-ERIC KHOO