28 December 2012

Singapore Shares Market Daily Update - 28 December 2012

#Keppel Corp: The company secured 3 new contracts worth a combined value of $420m, bringing the group’s total order wins for 2012 to $9.9Bn.

#Olam: Went ex-rights today. The re-nounceable rights are on the basis of, a) 313 bonds (principal amount of US$1, issue px at 95%, 5 yrs maturity, 6.75% coupon), stapled with b) 162 warrants (exercise price of US$1.291/sh) for every 1000 Olam shares. The company now holds a 100% interest in NZ Farming Systems Uruguay (NZFSU), following its' full cash takeover offer for all of the shares it did not already own, which closed on Nov 30.

The 30 December 2012 to 4 January 2013 Event:

Monday, 31 Dec - SG Earnings - Khong Guan Flour Milling Ltd, Neo Group Ltd, Sysma Holdings Ltd, SG – Nov M1/M2 Money Supply (YoY) (1000),
CH – Dec HSBC Manufacturing PMI (0945),
HK – Nov Govt Mthly Budget Surp/Def HK$ (1630),
US – Dec Dallas Fed Manf. Activity (2330),
IN – Nov Fiscal Deficit INR Crore

Tuesday, 1 Jan - CH – Dec Manufacturing PMI (0900)

Wednesday, 2 Jan - Ex-Div – Hiap Seng Engineering Ltd (SGD0.005), SG – 4Q GDP (0800),
IN - India December Markit Manufacturing PMI (1300),
EC – Dec PMI Manufacturing (1700),
US – Dec Markit US PMI Final (2158)

Thursday, 3 Jan - SG Earnings - Equinox Offshore Accommodation Ltd, Second Chance Properties Ltd, 
SG – Dec Purchasing Managers Index (2130),
CH – Dec Non-manufacturing PMI (0900),
HK – Nov Retail Sales – Value & Volume (YoY) (1630),
EC - Nov Euro-Zone M3 s.a. (1700),
US – Dec MBA Mortgage Applications (2000),
US – Dec Initial Jobless Claims (2130)

Friday, 4 Jan - US – Dec Total Vehicle Sales (0600),
JP – Dec Japan Buying Foreign Bonds/Stocks (0750),
JP – Dec Foreign Buying Japan Bonds/Stocks (0750),
CH – Dec HSBC Services PMI (0945),
HK – Dec Purchasing Managers Index (1030),
IN – Dec India December Markit Services PMI (1300),
EC – Dec Euro-Zone CPI Estimate (YoY) (1800),
US – Dec Change in Nonfarm Payrolls (2130),
US – Dec Unemployment Rate (2130),
JP – Dec Official Reserve Assets (4-10 Jan)

27 December 2012

Singapore Stock Market Daily Update - 27 December 2012

Olam - The company announced on Thursday it had bought the shares of NZ Farming Systems Uruguay Ltd that it did not already own at NZ$0.75 per share. The total acquisition cost was NZ$159.6 million ($130.5 million).

Technics Oil & Gas - The company announced that it had agreed to issue 10.7 million new shares to Eversendai Corporation Bhd via a placement at S$1.05 each.

> Nikkei hits 20-1/2 month high as yen weakens
> Wall Street drops in thin session, led by retailers
> Bond prices gain as US fiscal deadline approaches
> Yen flirts with 2-year lows on new Japan govt
> Gold edges down, US fiscal talks in focus
> Oil up to 9-week high on US fiscal talks
> Key political risks to watch in Singapore

Q&M - The company announced a takeover bid of about S$22.65 million for Catalist-listed
Singapore Medical Group Limited (“SMG”), accelerating access into the lucrative multi-disciplinary
specialist medical practice in the region. Q & M, the largest private dental healthcare group in Singapore providing both general practitioner and specialist services, is offering S$0.1323 for each share of SMG. The offer price is a 41% premium over SMG’s last traded share price of S$0.094 on 21 December 2012. As at 30 June 2012, the book value and net tangible asset value of SMG shares was about S$4.23 million respectively. Based on the weighted average share price of SMG on 21 December 2012, the market value of SMG shares was about S$13.69 million. Q & M will purchase a 72.57%-stake from two substantial shareholders of SMG – Felix Huang and Dr Xiaoyan Baumann Geb Bi – for a total price of S$13.99 million. Huang is the Chairman of SMG while Dr Baumann is the Chief Executive Officer. The proposed transaction triggers a mandatory general offer for the remaining shares of SMG at S$0.1323 a share. Barring any unforeseen circumstances, the proposed deal is expected to complete in second quarter of 2013

26 December 2012

Things to take note when Purchasing Commercial Units in Malaysia

Last few days ago, I went down to Malacca for personal matters. I seldom go to Malacca, only for vacation purpose. So I also quite surprised that I made a decision to purchase a retail shop lot in Malacca, known as historical site and tourist attraction. If you do not come and pay a visit to Malacca when you at Malaysia, you may miss a chance to know about Malaysia's history. 

Ok, so what I want to talk in this post is that, to purchase a commercial unit in Malaysia, you have to take note of several things here:

  1. Do more homework. So you have to do more thorough homework before you purchase a commercial properties. I was merely too emotional when selecting a shop lot in a commercial building. I know it is located in a prime location, but this prime location is at a small state in Malaysia. Now I have to really pray god to hope this project could run well. You have to do some homework via asking experts and visit the actual site yourself before you can make a good decision. 
    • Gross ROI - Normally I would use [(Gross Annual Rental Income - Yearly Loan Payment) / Total Invested Amount]
    • Net ROI - Normally I would use [(Net Annual Rental Income after deducted other maintenance charges and other charges - Yearly Loan Payment) / Total Investment Capital]
    • Period to Recover/ Collect Back the Investment Capital
    • Supply and Demand - Whether there is any more supplies here to be absorbed by the customers. 
    • Reputation of Developer - A good developer could save your time in managing your tenants. 
    • Location - A good location means that it can bring a lot of customers as well as "purchasing power" here.  
  2. Down payments: For locals, you have to make a 30% down payment to purchase a commercial units, be it under individual/Joint/Corporate name. For foreigners, you have to fork out 40% (For Singaporean) or 50% (For the rest foreigners) to make the down payment. 
  3. Bank Loan Facilities: tbc
  4. Legal Fees: tbc
  5. Stamp Duty Fees: tbc
  6. Title Transfer Fees: tbc
  7. Quit Assessment / Other Fees: tbc
  8.  tbc

Singapore Shares Market Daily Update - 26 December 2012

#SG Market: City Dev is expected to launch Echelon, its 99 yr leasehold private condo project next to Redhill MRT Station, this week with indicative sales price of ~$1,700psf. Marco Polo may also be in focus after 49% owned tug and logistics operator PT Pelayaran Nasional Bina Buana Raya (BBR) secured approval for its IPO on Indonesia Stock Exchange, with listing planned for a 9 Jan 13 listing.

#SG Economiy: Overall CPI rose a smaller-than-expected 0.1% mom NSA (consensus: +0.4%, Oct 12: -0.2%), pushing Nov CPI down to a 2-yr low of 3.6% yoy from Oct 12’s 4.0% (consensus: +3.8%, CIMB: +4.1%). Core inflation eased from 2.2% to 2.0% yoy due to cheaper clothing, footwear and household durables.

#Grandbanks: Company's CEO Robert William Livingston II announced that he will not renew his service agreement when it expires on Dec 31, 2012. Current CFO will act as CEO until a new CEO is found.

#Rowsley: Shares surged on 24 December 2012 after the company announced plans to buy a huge site in Malaysia's Iskandar region and a top architectural firm by issuing up to $581m in new shares.

#City Dev: The developer is expected to launch this week for Echelon, its 99-year leasehold private condo project next to Redhill MRT Station, with indicative price of ~$1,700 psf.

25 December 2012

Singapore Economic Calendar - 23 Dec to 28 Dec 2012


Sunday, 23 Dec

Monday, 24 Dec
SG Earnings (0)

Ex-Div – SingTel (SGD 0.068)

SG – Nov CPI (1300)

Tuesday, 25 Dec
SG Earnings (0)

Wednesday, 26 Dec
SG Earnings (0)

Ex-Div – Swiber Holdings Limited (SGD 0.01)

SG – Nov Industrial Production (1300)
US – Oct S&P/Case Shiller Home Price Index (2200)
US – Dec Richmond Fed Manufacturing Index (2300)

Thursday, 27 Dec
SG Earnings (0)

CN – Nov Industrial Profits YTD (0930)
JP – Nov Vehicle Production (1200)
JP – Nov Housing Starts (1300)
JP – Nov Construction Orders (1300)
HK – Nov Trade Balance (1630)
US – Dec Initial Jobless Claims (2130)
US – Dec Consumer Confidence (2300)
US – Nov New Home Sales (2300)

CN – Nov Leading Index (27-31 Dec)
Friday, 28 Dec
SG Earnings (2)
SG Earnings – ecoWise Holdings Ltd
SG Earnings – Transview Holdings Ltd

Ex-Rights – Olam International (313B+162W for 1000S @ USD 0.95)

JP – Dec Markit/JMMA Manufacturing PMI (0715)
JP – Nov Jobless Rate (0730)
JP – Nov National CPI (0730)
JP – Nov Large Retailers’ Sales (0750)
JP – Nov Industrial Production (0750)
CN – Dec MNI Business Sentiment Indicator (0935)
US – Dec Chicago Purchasing Manager (2245)

CN – Nov Leading Index (27-31 Dec)

24 December 2012

Singapore Stock Market Daily Update - 24 December 2012

Singapore stock market is half day trading today until 12:30pm.

Sound Global Ltd. announced that Sound Global won the bid for Shuanggui Sewage Treatment Plant (BOT) Infrastructure Project in Chongqing City, the PRC. The project will be invested and built by Sound Global, with designed sewage treatment capacity of phase I of the project at 15,000 m3/day and phase II at 30,000 m3/day. The Chongqing Liangping Shuanggui Sewage Treatment Plant will be invested, built, operated and transferred as a BOT project, phase I of the project requires a total investment of approximately RMB50 million. The sewage treatment tariff will be RMB1.89/m3 and the licensed operating term is 22 years. The construction of the project will play an important role in preserving the water quality, ecological environment and water source of the reservoir area in the Three Gorges. It is expected to contribute significantly to Chongqing’s building of an experimental reform zone for balanced urban-rural development, as well as in supporting the energy-saving and sustainable development of Chongqing City.

Enviro-Hub Holdings - The company announced that the issue and allotment of 9,392,220 shares in the capital of the Company at the price of S$0.10 each, pursuant to the conversion of 9,392,220 Warrants on 21 December 2012. The new issued shares rank pari passu in all respects with the existing shares of the Company. The total number of issued and paid-up shares in the capital of the Company has increased from 948,106,503 ordinary shares to 957,498,723 ordinary shares. The outstanding Warrants after the conversion is 124,780,993.

Cosco - The company announced that four shipbuilding contracts signed by COSCO (Zhoushan) Shipyard Co., Ltd (“Cosco Zhoushan”) (a wholly-owned subsidiary of the Company’s 51% owned subsidiary, COSCO Shipyard Group Co., Ltd) with a Hong Kong ship owner for the construction of four UT771CDL Platform Supply Vessels (PSVs) have been made effective on 21 December 2012 at a value of approximately US$119.2 million in total. Delivery of the above four vessels are expected to commence from first half of 2014.

Ezion - The company announced that the Company has on 20 December 2012 completed the subscription of the Subscription Shares and the Options of YHM and will make a mandatory general offer in respect of all the shares in the capital of  YHM and the Options, other than those already owned, controlled or agreed to be acquired by the Company and its concert parties.

Merry Christmas and Happy New Year!

22 December 2012

Imperio @ Hatten City, Malacca (Updated Video on 28 December 2012)

Today I just paid a visit to Malacca. My girlfriend and I went to Hatten Square to visit a roadshow conducted by Hatten group. If you do not know about the Hatten Group, I can explain a little bit about it. It is a well known developer in Malacca, developed Pahlawan Square as well as Hatten Square.

Now the developer (Hatten Group) is developing RM 2.0 B (US$ 625 M) project called Hatten City. The 1st parcel is including 2 famous hotels - Ibis Hotel and Four Tree Hotel by Hilton Group as well as Imperio Mall and Luxury Condominium. You can have a nice sea view from this project. The whole project is targeted to be completed by year 2020.

The group launched the 1st phase by introducing luxury condo and Imperio Mall at Hatten Square from 21 December 2012 to 23 December 2012 and still in the ongoing stage to promote

Fact sheet on Malacca:

  • Appreciation of Commercial Retail lots soared from RM1800psf in 2009 to RM3000psf in year 2012
  • Appreciation of Residential Properties increased from RM250psf in 2009 to RM950psf in year 2012
  • Ninth Malaysia Plan Campaign to promote Foreign Investments via MM2H facilitates property purchases with tax reliefs and easy access to foreigners. Centrepoint to commute between Singapore , Johor Bahru and Kuala Lumpur.
    • 1 hour 30 mins from Kuala Lumpur 
    • 1 hour from Seremban
    • 2 hour from Johor Bahru
    • 2 hours 30 mins from Singapore
    • 5 hours from Penang

Below is the video introducing Imperio Mall @ Hatten City, Malacca.

21 December 2012

Singapore Stock Market Daily Update - 21 December 2012

Singapore shares opened higher on Friday with the Straits Times Index up 2.39 points to 3,177.91. Gainers beat losers 106 to 36. Volume was 142.1 million shares valued at S$100.8million.
GLP announced that the real estate investment corporation (GLP J-REIT) it has established has successfully completed its initial public offering (IPO) in Japan and listed on the Tokyo Stock Exchange. GLP is contributing 30 of its properties in Japan to GLP J-REIT for an initial consideration of US$2.6 billion, making GLP J-REIT the largest logistics Reit in Japan.
STX OSV announced that 50.75 per cent of the company will be acquired by one of the world's largest shipbuilding groups Fincantieri for about S$730.6 million, at S$1.22 per share. The acquisition is bought through Fincantieri's wholly owned subsidiary Fincantieri Oil & Gas S.p.A. STX Europe was the seller.
Olam - Olam said on Thursday in an update, that Temasek Holdings (Private) Ltd increased its shareholdings in Olam International Ltd from 17 per cent to 18 per cent. 

19 December 2012

Singapore Stock Market Daily Update - 19 December 2012

Singapore shares moved within a small range at midday, weighed by property firms, as investors waited on the sidelines for more signs of progress in resolving the US “fiscal cliff” budget crisis.

Thai Beverages - Thai beer baron Charoen Sirivadhanabhakdi tried and failed to acquire an additional stake of 10 per cent in Fraser and Neave Ltd (F&N). His current bid offer is S$8.88 per share.

OlamOlam International Ltd announced that Temasek Holdings (Private) Ltd has raised its stake and bought 200,000 shares in the company for S$293,000 through its subsidiary Aranda Investments Pte Ltd.

Aspial - Aspial Corporation Ltd proposed to undertake a re-nounceable non-underwritten rights issue of about 61.6 million shares at an issue price of S$0.38 per share. 

Biosensors: The company announced that it has incorporated a new wholly-owned subsidiary known as “Biosensors Investment (Singapore) Pte. Ltd.” in Singapore with an initial issued and paid up share capital of S$1.00. Biosensors Investment (Singapore) Pte. Ltd.’s principal activity is investment holding. The incorporation was funded by internal resources and is not expected to have any material impact on the earnings per share or the net tangible assets of the Company for the current financial year ending 31 March 2013

Osim: The company announced that the Company has purchased a 30% stake in Suzhou Daitec  Exercising Machine Co., Ltd (“Suzhou Daitec”) for USD 1.09 million on 13 December 2012. This increase in equity was achieved via a purchase from the Company’s joint venture partner Daito Electric Machine Industry Co. Ltd (“Daito”) on a willing buyer willing seller basis.  Daito is a long term strategic partner of OSIM. Suzhou Daitec is a research & development and manufacturing arm of Daito and this acquisition will further strengthen the research & development capability of the Group and deepen the partnership between the Company and Daito. 

Daily Shares Buy Back

Viking - 50,000 shares @ S$5,264.00

Exercise of Warrants

OKP - The company announced that the number of issued ordinary shares of the Company has increased from 306,365,210 ordinary shares (excluding treasury shares) to 306,703,210 ordinary shares (excluding treasury shares) by way of the allotment and issue of 338,000 new ordinary shares pursuant to the exercise of 338,000 warrants at the exercise price of $0.20 on 10 December 2012. These new shares rank pari passu in all respects with the existing shares of the Company, and they were listed and quoted on the Singapore Exchange Securities Trading Limited today. There are 2,411,050 outstanding warrants remaining after the aforesaid exercise. 

Enviro-Hub The company announced the issue and allotment of 3,145,332 shares in the capital of the Company at the price of S$0.10 each, pursuant to the conversion of 3,145,332 Warrants on 17 December 2012. The new issued shares rank pari passu in all respects with the existing shares of the Company. The total number of issued and paid-up shares in the capital of the Company has increased from 944,961,171 ordinary shares to 948,106,503 ordinary shares. The outstanding Warrants after the conversion is 134,173,213. 

Public Transport from Singapore to Johor Bahru - Last Update October 2014

I understand that more people who work in Singapore are willing to stay in Johor Bahru, if and only if the accessibility (e.g. Public Transport, Highways etc) is improved in Johor Bahru. Besides the Thomson MRT Route and Johor Bahru RTS in plan, currently I prefer to take a public bus from Woodlands Check Point to Johor Bahru Check Point (CIQ) as there is one specific lane for buses to go to Johor Bahru CIQ from Woodlands Check Point, so it would be faster compared to driving a car. 

For those who own a car in Singapore, they probably prefer to use Second Link / TUAS highways as there is lesser traffic volume there due to high fares. As of current, the toll fees are MYR7.80 for Second Link Tanjung Kupang tolls and SGD3.20 for TUAS customs and it is still cheaper compared to renting a house in Singapore. I believe this is why the COE is so high in Singapore currently and the residents are encouraged to use the public transport in Singapore Island.

Back to the topic, currently you can take either MRT or Bus or both to Johor Bahru from Singapore. Below is the table of the public transport from Singapore and Johor Bahru to the best of my knowledge. I would try to keep it updated regularly.

Below is the Cash Fares List updated on October 2014 (After Toll Fees Increased by both government on Causeway)

Cash Fares (S$)
Service Frequency
Operator / Bus Number
Woodlands MRT / Marsiling Opposite MRT
Woodlands Check Point / JB CIQ / Kotaraya
1.50 / 1.70 / 1.90
8-15 Mins
Woodlands MRT / Marsiling Opposite MRT
Woodlands Check Point
6-14 Mins
Woodlands MRT
Woodlands Check Point
3-11 Mins
Woodlands MRT
Woodlands Check Point
3-11 Mins
Woodlands MRT
Woodlands Check Point
3-11 Mins
Queen Street
JB CIQ / Larkin
15-30 Mins
South Johor Express
Queen Street
JB CIQ / Larkin
15-30 Mins
170 (Red Plate)
Queen Street
JB CIQ / Larkin
15-30 Mins
Kranji MRT
JB CIQ / Larkin
1.00 / 1.50
15-30 Mins
Kranji MRT
JB CIQ / Kotaraya
0.90 / 1.30
15-30 Mins
Newton Circus
JB CIQ / Larkin
15-30 Mins
Jurong East MRT
2nd Link / Bukit Indah / Sutera Mall
25-120 Mins
Jurong East MRT
2nd Link CIQ / Gelang Patah / Pontian
4.00 + MYR4.20
60-120 Mins
Jurong East MRT
2nd Link CIQ / Gelang Patah / Sutera Mall
60-120 Mins
Jurong East MRT
JB CIQ / KotaRaya
15-30 Mins 
Jurong East / Boon Lay
2nd Link CIQ / Educity / Bukit Indah / Sutera Mall / Terminal Taman Ungku Tun Aminah
15-25 Mins
Boon Lay
2nd Link CIQ / Bukit Indah
15-25 Mins

18 December 2012

Singapore Stock Market Daily Update - 18 Dec 2012

#Singapore shares opened higher on Tuesday (18 December 2012) with the Straits Times Index up 10.36 points or 0.3% to 3,169.06. Volume was 344.2 million shares valued at S$137.5million. Losers beaten by winners 48 to 136.
#Wilmar International Ltd announced that it has agreed to sell all of its 15 per cent interest in Fortune Gas Investment Holdings Ltd (FGIH) to China Natural Gas (CNG) Investment Ltd for US$60 million (S$73.2 million) in a condition. 
#Singapore Property - Developers sold 1,087 private homes in November, down 44.2 per cent from the previous month's 1,948 units, according to information released by Urban Redevelopment Authority on Monday. The figure is the lowest since December 2011, when the number was 632 units. Year on year, the November 2012 sales of 1,087 units is down 36.1 per cent from 1,702 units in November 2011.
#Cosco - The company announced that it has secured a contract valued over USD370 million from a European company to build one (1) FPSO. The FPSO will measure 78 meters in diameter, 32 meters high and will have a storage capacity of up to 400,000 barrels of oil. The FPSO is scheduled for delivery in June 2015.  
#AvicThe company  has  on 13 December 2012 (Luxembourg time), through the  SPV (incorporated on  20 November 2012), incorporated the  SPV Lux -- AVIC International Marine Engineering (Lux), S.à r.l., as the Group’s investment holding vehicle, under the laws of Luxembourg. The  initial issued and paid-up share capital of the  SPV  Lux  is Euro 12,500.00 (being the permitted minimum share capital of a company incorporated under the laws of Luxembourg), comprising 12,500 shares at Euro1.00 each.

#Food Empire - The company announced that it has subscribed for an additional 32,000 new shares at nominal value of Euro 1.71 (equivalent to USD 2.24) each and at a premium of Euro 46.10 (equivalent to USD 60.26) each in the share capital of its associated company, Simonelo Limited. The total subscription price of USD2 million was paid in cash by FER HK and funded through internal resources. The share subscription is not expected to have any material impact on the consolidated net tangible assets and earnings per share of the Group for the current financial year

#Lion Asiapac -  The company announced a JV to propose acquisition of land in Yangzhou for property development. The initial registered capital of the JVCo  will comprise US$30 million (approximately S$39 million), of which LAPS and LAPD shall each contribute 50% (i.e. US$15 million or approximately S$19.5 million). The land (the "Land"), which is situated at Harbourside New City of Yangzhou Economic and Technological Development Zone, Jiangsu Province, PRC, has a total land area of 80,137 mand comprises two (2) land parcels, being (a) a land plot for residential development and having a land area of 52,000 m and (b) a land plot for commercial development and having a land area of 28,137 m2. The proposed development will be a mixed-use development comprising residential units as well as shops and offices for commercial use. 
#CapitaCommercialTrustThe company announced that CCT MTN has today issued its ¥10,000,000,000 1.35875 Per Cent. Notes due 2019, pursuant to the MTN Programme established by CCT MTN on 20 November 2007.  The obligations of CCT MTN under the Notes are unconditionally and irrevocably guaranteed by the CCT Trustee. The proceeds from the issuance of the Notes denominated in Japanese yen have been hedged into Singapore dollars amounting to S$148,300,000, and will bear a Singapore dollar fixed interest rate of 2.8875 per cent. per annum payable semi-annually in arrears and will mature on 17 December 2019.
#CWT CWT Limited announced that a new entity (MRI Trading Private Limited) to support its commodity supply chain management business handled out of India. 
#Sound GlobalSound Global Ltd. (“Sound Global” or the “Company”) wishes to announce that in December 2012, Sound Global and China Railway 18th  Bureau jointly won the bid for No.6 Water Treatment Plant Project in Changchun City, Jilin Province, the PRC. Located in Changchun City, Jilin Province, the long-term designed water supply capacity of the project is 500,000 m/day with the near term capacity at 250,000 m/day. No. 6 Water Treatment Plant Project requires a total investment of approximately RMB2.035 billion, which will be invested, built and transferred as a BT project. The project is expected to commence construction in 2013 and to complete in 2015. The construction of this project will greatly relieve the inadequate water supply problem in Changchun City and will play an important role in supporting the sustainable development of Changchun City.

#Ezion - The company announced the subscription of approximately 14.3 million new ordinary shares (the “New Shares”) by strategic investor, EDB Investments Pte Ltd (“EDBI”), the corporate investment arm of Singapore’s Economic Development Board, for approximately S$19 million. Owning one of the largest and most sophisticated class of Multi-Purpose Self Propelled Jack-up Rigs (“Liftboats”) globally, Ezion today has operations around the world.  It is one of the first to promote the usage of Liftboats in Asia, Middle East and West Africa.  Ezion is also the market leader in Southeast Asia and Australia to have the experience and track record to handle offshore logistics projects in environmentally challenging conditions.  Ezion expects to grow its fleet and capabilities significantly as it strives to achieve its vision to be a world-class corporation and the market leader in Asia Pacific.

Daily Shares Buy Back
# Duty Free International Limited - 20,000 shares @ $6,646.15

Passive Income Through Long Term Investment

I believe a lot of people who wish to achieve financial freedom through passive income. Passive Income in my definition is an income that you can still achieve while you are not actively working on it. So far, I cannot find passive income while I am not actively working hard on it, but what I can think of is to allow the people who are more capable than me to run the business on behalf of me. And I can get a bonus / dividend from there. This is by far the best term of "Passive Income" I can think of.

For example, if I look for rental income, then I must engage with property agents to help me to find the best properties that I can afford to find. But you must trust your agents to act the best on behalf of you, to get a good property with cheap price and to get a good tenants for you. If you are a people who like to be everything under your own control, you may find that there is a lot of uncertainty involved as there are more people involved in this circle. What you can do is always have a back up plan, try to engage more different team to assist you on managing your assets. Sometimes, bankers may offer a better choices to you compared to property agents, as they are more towards "neutral", as compared to agents may side sellers to get a higher commission from selling price. Of course, I do understand that there are still many property agents who are willing to help both parties to close the deals as soon as possible.

If you are a person who prefer to build assets in your own ways, you may have a steep learning curves, by engaging a lot of people, and managing the properties yourselves. You may also be your own portfolio manager yourselves one day after you have achieved a certain level, by helping others to manage their properties as well!

Long term investment can be done through many ways. What I can think of now is by:

1. People - Education

Yesterday I met with guys who shared with me on how to leverage on people to grow their business. They like to use "Business Partner" business model to grow their business. A people who likes to achieve greater satisfaction via business development is welcomed to join as a partner, to grow the business together. But before that, they must be under training to know everything on the company's products, culture and platform before they can start engaging with more others who also like to join as a team. This is by far the system that I think will work in long run, but only if the system can benefit to all the stakeholders involved - Suppliers, Company, Partners, Clients etc. This is more towards a "Direct Sales/Marketing" Business Model.

You could also have another model, where you could educate your clients, by introducing more features or services that suit their needs. It is not about hard selling, but to engage with your clients and find out what they need and try to provide the best service you could give to them.

Sometimes, we also have to groom some of our suppliers, so that the bargaining power from suppliers could be reduced. We could also always have a backup plan in case the demand suddenly shoot up and we cannot cope with only 1 main supplier.

After all, we can only be successful if and only if all our stakeholders are benefit from the whole business supply chain.

2. Money - Leveraging

I always emphasize that your money is your hard earned money. Do not ever try to spend it in a wrong way. Instead, we should borrow money within our mean to try to generate more passive income. It can be done through many different ways.


1. You could borrow up to 80% loan in Singapore Property Investment or 90% loan in Malaysia Property Investment. But please do it if and only if this is a bargain deal. If you buy at a higher range, the higher possibility is that you may have to wait for 5-10 years to recover from your losses. But good thing is that, you do not worry of disposing off your property in Malaysia as long as you can afford to make the monthly installment payment. To my understanding, Singapore is slightly different where you have to make the payment if the banks perform "Mark-To-Market" valuation and ask you to top up the difference, which rarely happens but could happen during market crash.

2. You could also leverage on some of the financial products, such as Leveraged Forex, Warrants, Futures, or Margin Accounts. Before you started with those financial products, you must be fully understand the underlying risks involved in the financial product itself. But how to achieve passive income through long term investment? You have to manage your risk level so that you will not meet the margin call. In fact, you may spend more time on managing your risk so that the investment amount will not burst out. I encourage you to spend more time on doing "Stress Test", which you could measure the potential losses / possibility of getting a "Margin Call" during market volatility.

Please leave me a comment on your thought on long term investment. We can learn from each others.

14 December 2012

My thought on Olam - 14 Dec 2012

Olam is a famous counter recent weeks due to the famous US Short Seller's comment on its aggressive accounting standard and management behavior. Why did it say so? It could be due to several reasons which I believe you all knew from report mentioned by him:

US GAAP vs IFRS. In IFRS, it is necessary to report the value gain from biological assets / non current assets and amortize it in later years if it would happen later. The so called "Unrealized Gain" will be recorded under the Income Statement and Equity Value will be increased in Balance Sheet.

My view is that, Olam is following IFRS standard, and part of the reasons of rising of the profit in recent quarters are also due to increase in biological assets. To me, this is a tricky part as management plays an important to justify an increase in biological assets.

As of now, it is still uncertain whether Olam still requires more Cash Flow from Financing (CFF) to support its working capital (CFO). As the Free Cash Flow (FCF = CFO - Net CAPEX) continues to be in negative amount so at least 5 consecutive years, this business model is not sustainable, unless the cash flow can turn to positive in near future.

It reminds me of Air Asia. Air Asia relied a lot of cash flow in initial stage, and its cash flow can only be positive FCF in later years after it had established a low cost carrier leadership in Asian region as well as in Asia Pacific region. The share price was not improving until the company started to generate positive FCF later.

So, to invest in such aggressive company, you have to have a very big risk appetite. And you have to have a strong confidence on the management to turnover a -ve FCF model to +ve FCF Model in long run. My thought is that, it can be part of your portfolio, if and only if you have done a thorough homework on it. It may not suitable to all the investors who require a stable / lower beta stock performance.

Source: Shareinvestor.com, Company

A Short Conversation on Singapore Property Investment

Yesterday I chat with my cousin on Singapore property market. She mentioned to me that Jurong will be another hot spot to be developed as business district in Singapore. It could be happen in near future, as Genting Singapore also acquired a land at very high price (>1300psf if I am not wrong). So what I think is that, I would re-focus on this area, as it may enjoy a better capital appreciation in future. But I am not sure how strong the support from government as well as from private sectors are.

Singapore Stock Market Daily Update - 14 December 2012

Singapore shares opened lower on Friday with the Straits Times Index down 3.87 points to 3,152.68. Volume was 185.4 million shares valued at S$107.8million. Gainers beaten by Losers 76 to 96. 

#TT International Limited (“TT International” or the “Company”) announced that it has entered into an investment agreement (“investment agreement”) with Prima BB Limited (“Prima”) and Utraco Investment Pte Ltd (“Utraco”) for a combined financial commitment of S$92.0 million to develop Big Box, an iconic mega warehouse retail project in Singapore. 

#Gallant Venture The company announced that it has entered into a conditional sale and purchase agreement dated 13 December 2012 (“SPA”) with PT Cipta Sarana Duta Perkasa (the “Vendor”) for, inter 
alia, the acquisition by the Company of shares representing approximately 52.35% of the issued share capital of IMAS, a company listed on the Indonesia Stock Exchange (“IDX”) with a market capitalisation of approximately S$1.8 billion. The company also proposed a  renounce-able non-underwritten rights issue (the “Proposed  Rights Issue”) of 2,412,482,556 new ordinary shares (“Shares”) in the capital of the Company (the “Rights Shares”) at an issue price of S$0.280 per Rights Share (“Issue Price”), on the basis of one (1) Rights Share for every one (1) existing Share, to raise proceeds of approximately S$675.5 million, and the net proceeds of approximately S$675.3 million are proposed to be applied towards payment of part of the Purchase Consideration. 

#Elektromotive Group Limited has proposed to sell its 55% stake in EUK to Chargemaster Plc for a consideration of S$10.8 million (£5.5 million), payable in cash upon completion. Calvey-Taylor Haw, Managing Director of EUK, who owns a 42% stake in EUK has also agreed to sell his entire stake to Chargemaster Plc.

#Biosensors International announced enrollment of the first patient in LEADERS FREE, a ground-breaking study involving BioFreedom™, the polymer-free drug-coated stent (DCS) from Biosensors. LEADERS FREE is the world’s first prospective, randomized double-blind trial exclusively involving patients at high risk of bleeding. The study has been designed to confirm that BioFreedom is as safe as a bare-metal stent (BMS) in this patient group, and can deliver the anti-restenotic benefit of a drugeluting stent (DES), with only a one-month course of DAPT.

#Lippo Malls Indonesia Retail Trust - The company has published the presentation slide on its acquisition. You may find more information here. http://lmir.listedcompany.com/newsroom/20121213_174653_D5IU_032BCE027890AFB548257AD200368712.1.pdf

#Boustead SingapaporeThe company announced that its subsidiary, Boustead Projects Pte Ltd (“Boustead Projects”) – a leading specialist in real estate solutions  – has been awarded  its first commercial property project within Singapore’s Central Business District (“CBD”), a S$23 million contract to build Robinson Square, for developer, Oxley Blossom Pte Ltd  (“Oxley”) to be located at 144 Robinson 
Road in Singapore.

#LifeBrandzThe Group achieved a lower revenue of S$6.0 million for Q1 FY2013, with a drop of 24% from S$7.8 million of last financial year’s quarter. The decline in sales activities was mainly due to lesser operation outlets in the current quarter as compared to the operating outlets in the same quarter last year before the revamp and refurbishment of the business operation of the Group. Positively, the existing concepts of Aquanova, Mulligan's and Zirca maintained the business pace and presence at the Clarke Quay premises, which environment has been very challenging and competitive. Miscellaneous income and expenses consisting of service charges, interest income, bad debt recovery and other related miscellaneous income decreased from S$18,000 to S$10,000 for Q1 FY2013 comparing Q1 FY2012. The decline was mainly due to the abolishment of service charge at the outlets and recovery of bad debts in the respective period

#JES - The company updated that there are more than 20 vessels being built at the Group’s yard in Jingjiang city and the yard relies on subcontracted workers for a considerable portion of the projects. Due to some subcontractors delaying payment of wages to its own workers, part of their workers held a strike on 10 December 2012 at the Group’s yard, but the company would like to assure the stakeholders that this issue was promptly resolved. 

#ASL Marine The Board of Directors of the Company is pleased to update shareholders that the Acquisition has been duly completed on 13 December 2012 and accordingly, Vosta LMG and CFT are now wholly owned subsidiaries of the Company. 

#Design StudioThe  Board of  Directors of  the Company wishes to announce that it had on 14 December 2012 received in-principle approval  (the “In-Principle Approval”)  from Singapore Exchange Securities Trading Limited (the “SGX-ST”) for the dealing in, listing of and quotation for the new ordinary shares in the capital of the Company (the “New Shares”) to be issued in connection with the Design Studio ESOS and the Design Studio PSP. A circular containing further details of, inter alia, the proposed adoption of the Design Studio ESOS and the proposed adoption of the Design Studio PSP, and enclosing a notice of the extraordinary general meeting in connection therewith, will be despatched to the shareholders of the Company in due course.

#LionGoldLionGold’s 1:4 rights issue of warrants was 142% subscribed as at the close on 11 December 2012.  An initial S$14.9 million will be raised from the  228.9 million warrants, priced at S$0.065 each. Additional proceeds of up to S$268 million could be raised if all of the warrants are converted into new LionGold shares. The warrants are expected to commence trading on the Singapore Stock Exchange on 20 December 2012. 

Daily Shares Buy Back
# HG Metal - 327,000 shares @ S$26,557.14
# Duty Free International Limited 156,000 shares @ S$51,445.92

Related Posts Plugin for WordPress, Blogger...

View All My Posts Here