28 October 2012

JB House Renovation Update - Part 3 - October 2012

Follow up from previous post  JB House Renovation - Part 2, my girlfriend and I went to search for furniture and lighting. We went to the lighting shop which related to my contractors and checked for their prices. A down light costs about RM14 which I think is quite reasonable. After some bargain, we bought a bout RM1,300 for most of the lights which includes but not limited to down lights, lights for balcony, master bedrooms, middle rooms and small rooms. 

We also bought a dining set which cost about RM1.5K and a 3-Seats fabric sofa RM4.2K. My gf and I decided to buy a fabric sofa due to some personal reasons. I believe this is a sofa which can last for at least 3 - 5 years with good maintenance. The dining set is under promotion and we decided to buy it without second thought. 

For painting, we also spent about RM800 to get a group of workers to help us to paint the internal wall for lower floor and plastic ceiling. We also spent around RM500 to buy the paint. So the total cost for paintings is about RM1,300. 

I hope to get a final list of renovation so that I could update you here and be a reference when you decided to start a house renovation at Johor Bahru area. 

25 October 2012

How to predict a revenue growth?

One of the thought flash through my mind was that, we should rely on the CAPEX or Cash Flow from Investing to justify whether the company will have a strong growing power in near future. Nonetheless, we should also analyze the impact on the spike of CAPEX, particularly to those sectors which requires high depreciation as well as high CAPEX. If the speed of increasing depreciation is higher than the speed of increasing CAPEX, it means that the company is experiencing through a change of technology or the business environment, which I do not favor to.

For example, SIA is ordering more air crafts for its subsidiaries - Scoot. If the world is changing its game, means that more people is taking flight through low cost carriers, then we should treat it as a good news. Nonetheless, we should also check with the peers such as Asia X or other competitors. It can prevent us from being cheated by the management to manipulate the financial results by reporting huge CAPEX and Depreciation expenses, just to cover the fake enlarged revenue. This is the lessons I learnt it from Transmile and another company from Bursa listed company and S-Chips.

22 October 2012

CFA Charter Approved

Today I received an email stating I have been approved to join CFA membership. Without second thought, I quickly went to the website and activated the membership. It cost me about 325USD to apply for both US & Singapore CFA Society. 

In case you do not know what is CFA, I can explain it to you in summary. Its full name is Chartered Financial Analyst. To obtain charter holder, you have to spend a lot of time to study and pass 3 levels exam, which includes but not limited to Equities, Derivatives, Alternative Investment, Private Equity, Commodities etc and also have at least 4 years working related experience. 

To pass the exams, I spent at least 300 hours per exam, and it actually worked well after I practiced a lot of exercises and mock exams. I wish to thank my family and friends who gave me full support for the passed few years, especially when I failed several times in level II exam. It is a quite tough mental game, especially you have to spend your free time after working hour, which to me is impossible during the years when I was business analyst. 

I have been criticized by some for my Broken English, luckily I never give up to complete the exam and finally get the charter holder. It gives a lot of confidence to me. That even though I am IT-trained background and did not have any good degree in finance/business/accounting/economy, but I still managed to pass it. 

I hope that my case can be the motivation story for those who wanted to change their career path to Investment related industry. Just do not give up once you have already decided. Your fate is in your hand. Keep it up! 

Jack Phang Sheng Jie, CFA

12 October 2012

Future MRT Stations Plan - Updated 18 Jan 2013

Singapore is poised to be a nation with the best transport infrastructure in the world. I am very proud of working in Singapore, as it provides a lot of facilities for many workers who do not have private transports to reach any place in Singapore with a lot of convenience compared to its neighbors or even developed countries like UK or France.

With Singapore government's plan to increase population to optimal 7M people in this small island, I believe it would be great if we have a proper plan for the public transport system here. Below is the plan which I captured from beconfused.com.

Thomson Line  and Eastern Region Line will be ready by approximately year 2018 (corrected to be ready by 2019 1st phase and 2021 last phase) and  year 2020. You can also see TUAS Extension will be ready by year 2015. It will give benefits for those who travel from Nusajaya, Iskandar Malaysia to Singapore via TUAS. - 10 December 2012

Do we have to look for properties located near by future MRT stations? It really depends on your needs and requirements.

Future MRT Line Plan

Government announced a future plan to enhance current MRT route by year 2030, hoping at least 80% of household can reach MRT station within 10 minutes. LTA has announced that there will be two new rail lines and three new extensions to double Singapore’s rail network to c.360km by 2030. A major MRT line, the 50km Cross Island Line (CRL) is targeted to be completed by 2030, while the 20km long Jurong Region Line (JRL) is expected to be completed by 2025.

New rail lines:
• 50km Cross Island Line (CRL) will run from Changi, passing through Loyang, Pasir Ris, Hougang, Ang Mo Kio, Sin Ming, and head westwards towards Bukit Timah, Clementi, West Coast, and terminate at Jurong Industrial Estate. Targeted to be completed by 2030.
• 20km Jurong Region Line (JRL) will serve Choa Chu Kang, Boon Lay and future developments in the Tengah area. It will connect these areas to nodes in Jurong West and the Jurong Industrial estate. Expected to be completed by 2025.

• 4km Circle Line Stage 6 (CCL 6) will ‘close the circle’ by connecting HarbourFront station to Marina Bay station, expected to be completed by 2025.
• 2km extension of Downtown Line to the Eastern Region Line by 2025 to connect the two rail lines and allow commuters to make transfers.
• 2km North East Line (NEL) will extend northwards by one station to serve Punggol North by c.2030.

Let us see the plan below:

08 October 2012

MAS Introduce New Rules to Enhance Disclosure Requirements for Listed Companies

SINGAPORE: The Monetary Authority of Singapore (MAS) will introduce new rules to enhance disclosure requirements for listed companies. 

Overseas-incorporated companies with a primary listing on the Singapore Exchange and non-director chief executives will be required to report their interests or changes in interests, with effect from November 19. 

Currently, rules on disclosure of shareholdings apply only to substantial shareholders of listed companies incorporated in Singapore and company directors. 

In a statement, MAS said, "Timely disclosure of interests is necessary for the proper functioning of a fair, efficient and transparent securities market." 

It added that such information will enable investors to make decisions "with knowledge of dealings by directors and CEOs, and changes in ownership and voting control of the listed entity."

Meanwhile, the authority will also introduce stiffer penalties for "flagrant breaches".

A fine of up to S$250,000 and/or imprisonment for a term of not more than two years will be introduced. Civil penalties may also be imposed. 

This will enable MAS to take enforcement action proportionate to the seriousness of the offence.

- CNA/xq


04 October 2012

Iskandar Malaysia will boost the Malaysian economy

KUALA LUMPUR (Oct 4, 2012): The special economic zone of Iskandar Malaysia in Johor will help to boost the Malaysian economy in attracting investments, according to panelists at the CNBC Summit: Malaysia yesterday.
"I'd say that Iskandar Malaysia is our chance to try things differently, to rebuild the economy in a fast way," Minister in Prime Minister's Department and Performance Management and Delivery Unit CEO Datuk Seri Idris Jala said in a discussion on the Malaysian economy.
He said the economic zone is a means for the country to attract more investments, a leading indicator for the new economy.
Jala said with Iskandar Malaysia situated in Johor, it is also important to recognise Singapore as a partner to the country's economy.
To view the full articles, please go to: http://www.thesundaily.my/news/506976 

03 October 2012

Bond Runs First, Equities Later?

I noticed that listed companies, especially REITs or mid cap stocks like to perform fund raising over fixed income instruments. It seems that the management prefers to get the capital from the market before they started to bid for more large Capital Consuming projects or to re-finance their existing long term loan.

Last time Ezion announced to raise about more than SGD100M fixed income instruments. After they announced about the overwhelming subscription of the fixed income, the share prices started to move further. I believe this is how the capital market moves.

If insiders know about the capital raising by the listed companies, they have two options:

  1. Be the shareholders
  2. Be the bondholders 
Both have their pros and cons. If I were risk taker, I would rather to be shareholder if the company would able to generate profits more than the loan interest. It seems more reliable to be bondholders, though the loan interest could be as high as 9%. However, I believe only venture capital or those fund managers who have high risk appetite to take in those loan.

 As for me, I would still prefer Cash + Equity Mix in my portfolio. Nonetheless, I would add Fixed income in my portfolio once my portfolio grow even bigger in later stage.
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