Tat Hong Holdings

Established History
Tat Hong has history from the 70s, set up in Singapore as a supplier of cranes and heavy equipment.

Market Dominance
Today, it has become the largest crawler crane company in the world, with operations in Malaysia, Thailand, Indonesia, Hong Kong, China, Vietnam, Dubai and Australia.

Growth and Future Plans
Recently, it has set up two Joint Venture companies:

1. Tat Hong has on 28 August 2013 entered into a joint venture agreement with Intraco and Mr Aung Moe Kyaw, and that the parties have incorporated a joint venture company, Tat Hong Intraco Pte Ltd, in Singapore. The company will carry out the business of distribution of cranes and excavators in Myanmar.

2. Announced on 26 October 2013, Tat Hong Holdings, Boustead Singapore and CSC Holdings (three local firms) have set up a joint venture with AME Group (Johor based) to develop land in Iskandar Malaysia. The joint venture will jointly undertake mixed property development in Iskandar Malaysia.

Financial Ratios

Some financial ratios:

P/E ratio: 8.5

P/B ratio: 0.9

Dividend payout since 2006. Past year yield: 4.2%

Valuations seem reasonable now since price drop from 1Q performance disappointment. Factoring in potential growth from Myanmar and Iskandar, I have taken up a position with this company.

Disclaimer: The ideas expressed in this blog should not be construed as an enticement to buy or sell the securities, commodities or assets mentioned. The accuracy or completeness of the information provided cannot be guaranteed. Readers should carry out independent verification of information provided. No warranty whatsoever is given and no liability whatsoever is accepted for any loss howsoever arising whether directly or indirectly as a result of actions taken based on ideas and information found in this blog.

Some thoughts on the recent REITs sell-down

I came across the following quote today and kind of resonated with it in light of the recent REITs sell-down.

Warren Buffett says: For some reason, people take their cues from price action rather than from values. Price is what you pay. Value is what you get.

S-REITs share prices have taken a beating in the past two weeks in light of Fed talks about easing up on QE. Even though this may imply increase in interest rates, thereby somewhat affecting DPUs of S-REITs due to their borrowings, I feel that the sharp drop in price is overdone, and may be due to shortists affecting the market. The sharp drop in price may also be partly due to the rally S-REITs have sustained in the past year.

If you have decided at some point in time to load up on S-REITs because of their dividend paying policy and yield %, then, the drop in price should be deemed as a good time to accumulate more, rather than to sell them away. Afterall, the drop in price should not change the value of the company and the reasons for buying it, does it?

Disclaimer: The ideas expressed in this blog should not be construed as an enticement to buy or sell the securities, commodities or assets mentioned. The accuracy or completeness of the information provided cannot be guaranteed. Readers should carry out independent verification of information provided. No warranty whatsoever is given and no liability whatsoever is accepted for any loss howsoever arising whether directly or indirectly as a result of actions taken based on ideas and information found in this blog.

Analyst Report on Food Empire - 21 May 2013

Share price of Food Empire increased from S$0.685 to S$0.725 today, a rise of almost 6 % in a day. Volume is high too, at about 10 x higher volume than average. Naturally, I was happy since I feel that the stock has good prospects and I am vested.

I tried to search online to see if there are any news, and came across an analyst coverage in the NextInsight that came out today. Coincidentally, I wrote about Food Empire a few days ago.

Link here: The NextInsight

Excerpt of the report below:

OSK-DMG maintains 'BUY" with 84 cents target for Food Empire.

Food Empire reported an 11% growth in 1Q13 earnings of USD5.6m. Results are in-line with expectations, accounting for 25% of our full year estimates. 

Sales in Russia grew at a stronger pace of 18% y-o-y vs our forecast of 15% due to a change in business model.

...

Sales for the quarter were also boosted by a raising of average selling prices (ASPs) for products last year. We also note an expansion in gross margins by 5ppt for the quarter. 

We maintain our estimates and BUY call with TP of SGD0.84, pegged to 16x FY13F P/E. 

Food Empire trades at a sharply lower valuation than Super Group (PE ratio of 13.9 for Food Empire vs 32 for Super Group).


If you are reading this, you may also be interested in this:-

• Food Empire posts 11.3% rise in net profit to $7mil in Q1-FY2013

Disclaimer: The ideas expressed in this blog should not be construed as an enticement to buy or sell the securities, commodities or assets mentioned. The accuracy or completeness of the information provided cannot be guaranteed. Readers should carry out independent verification of information provided. No warranty whatsoever is given and no liability whatsoever is accepted for any loss howsoever arising whether directly or indirectly as a result of actions taken based on ideas and information found in this blog.

Food Empire Holdings - 11.3% rise in net profit to $7mil in Q1-FY2013

Having bought and sold Food Empire a few times since October 2012 when it was still S$0.45, to take profit (amidst uncertainty in the global economy), I have again taken a position on Food Empire in April this year. After its XD date, it was trading at about 0.655-0.67 range. As of last Friday 17 May 2013, it was trading at S$0.685.

Since my last post in January 2013, prices of commodities such as sugar, crude palm oil (where it is used to make non-dairy creamer of 3-in-1 beverages) and coffee, are in a downward trend or are depressed. Being a direct user of these commodities to make the 3-in-1 beverages, this surely means good news for Food Empire since raw material costs are lower.

Sugar Prices (source: http://www.indexmundi.com/)

Crude palm oil prices (Source: palmoilhq.com)

Coffee prices (source: nasdaq.com)

Furthermore, group revenue grew by 13.5% from last year due to strong revenue growth in Russia, Eastern Europe and Central Asia (Russia and Eastern Europe being their largest market).

This is definitely one stock that I will continue to keep in my portfolio.

If you are reading this, you may be interested in:-

• Food Empire Holdings Ltd
• Analyst report on Food Empire on 21 May 2013

Disclaimer: The ideas expressed in this blog should not be construed as an enticement to buy or sell the securities, commodities or assets mentioned. The accuracy or completeness of the information provided cannot be guaranteed. Readers should carry out independent verification of information provided. No warranty whatsoever is given and no liability whatsoever is accepted for any loss howsoever arising whether directly or indirectly as a result of actions taken based on ideas and information found in this blog.

My holdings - as of 19 May 2013

Here's a snap shot of my current portfolio. My portfolio is rather REIT heavy, with almost 50% of my holdings in REITs.

No.	Name	Purchase Date	Purchase Px	Current Px	Gain/Loss
1	MCT	Apr 27, 2011	0.890	1.465	64.61%
2	Biosensors	Mar 16, 2012	1.450	1.215	-16.21%
3	Sabana REIT	Jul 26, 2012	1.000	1.355	35.50%
4	2nd Chance	Nov 22, 2012	0.417	0.435	4.27%
5	MGCCT	Mar 7, 2013	0.93	1.13	21.51%
6	Lum Chang	Tue, Mar 26, 13	0.34	0.350	2.94%
7	Food Empire	Tue, Apr 9, 13	0.68	0.685	0.74%
8	Saizen	Tue, Apr 23, 13	0.198	0.190	-4.15%

Disclaimer: The ideas expressed in this blog should not be construed as an enticement to buy or sell the securities, commodities or assets mentioned. The accuracy or completeness of the information provided cannot be guaranteed. Readers should carry out independent verification of information provided. No warranty whatsoever is given and no liability whatsoever is accepted for any loss howsoever arising whether directly or indirectly as a result of actions taken based on ideas and information found in this blog.

Analyst report on Saizen REIT

While doing research on Saizen REIT, I came across the following company research report by nra capital which was published on 15 May 2013 (post 3Q 2013 results release).

The link to the report is here:- NRA Capital

In summary,

• NAV of the REIT has depreciated to S$0.25 from S$0.27 due to depreciation in yen (Note: this is still higher than its current price of S$0.19).
• Japanese economy is showing signs of a pick-up (Note: as I have mentioned in my previous post, the Japan PM is taking bold and concrete steps (i.e. not just talk only) to improve the country's economy.)
• Management is committed to re-gear to expand portfolio (Note: as shown by the increases in DPU over the past years.)
• Forward looking yield of 6.4% (FY14F) and 6.5% (FY15F). 
• Fair value deemed as S$0.20 and rated long term BUY.

An earlier report posted in The Edge Singapore may be found here:- The Edge Singapore on Saizen REIT posted on 22 April 2013

If you are reading this, you may also be interested in:-

• I bought some more Saizen REIT when its price fell after its 3Q13 results

Disclaimer: The ideas expressed in this blog should not be construed as an enticement to buy or sell the securities, commodities or assets mentioned. The accuracy or completeness of the information provided cannot be guaranteed. Readers should carry out independent verification of information provided. No warranty whatsoever is given and no liability whatsoever is accepted for any loss howsoever arising whether directly or indirectly as a result of actions taken based on ideas and information found in this blog.

Bought more Saizen REIT today after its 3Q2013 results release

Saizen REIT must be the one of the least favored REITS listed on SGX. And it is hard to blame anyone for not favoring this REIT, given its rather turbulent history:-

• Listed in Nov 2007 @ IPO price of $1 (discount to its NAV of $1.05)
• Seems like the REIT has trouble servicing its loans (which are all commercial mortgage backed securities (CMBS) loans (read What is a CMBS loan and More on CMBS financing), and the market for such loans have more or less died during financial crisis in 2008) + Japan recession = no income distribution to unit holders in 2009-2010. And Saizen is allowed to do that, reason being it is not mandated by Singapore law to pay out dividends as all of its properties are in Japan.
• To add salt to this, there was the March 2011 massive earthquake. It has 22 of its 146 properties in Sendai, the hardest hit area.
• Things for this REIT started to take a turn in end 2012, after it made a series of attempts to repay its loan and made some good property buys.
• Current price is at $0.20 vs its NAV of $0.2716. 
• Yield is about 5.1 % based on current price. Income distribution for this REIT resumed in 2H2010. It has been in an increasing trend since, as shown below:-

There were some sell down activities these few days following its 3Q2013 results. Seems like there was a 70.5% decline in quarterly net income from operations - which was largely due to one off expenses as a result of early termination of loans and refinancing activities. Furthermore, due to recent depreciation in yen, there is worry that DPU will be affected.

Well, for me, I think that based on past performance, Saizen has taken positive steps to get itself out of the woods. And this shows a lot for the tenacity of the management. The fact that income distribution has resumed in 2010 and shows an increasing trend over the years gives me confidence that the REIT is in good hands.

Even though there was a decline in quarterly income for 3Q2013, this is due to a one off payment for refinancing of loans. The more favorable refinanced loan terms at lower interests means that benefits will be felt in later quarters. Furthermore, the REIT is now given more time to repay its loan, and in the meantime, is able to secure more loans to fund its future acquisitions.

As for the depreciation in yen affecting DPU, this is something that probably comes off as a tradeoff to  reviving the Japanese economy. From my impressions, the current Japan PM and his cabinet are taking big steps to shake Japan out of its decades of recession slumber. With a better economy comes a more vibrant real estate market in Japan, as more people work or invest in Japan, resulting in increase in demand for houses, and hopefully that means prices of Saizen assets appreciate in time. I'm sure this formed some of the considerations by investors when they participated in the recent Croesus Retail IPO.

Therefore, it was based on the above analysis that, instead of selling off my Saizen REIT when prices went down to S$0.189 on bad news, I loaded more on Saizen REIT today.

If you are reading this, you may also be interested in:-

• Analyst report on Saizen REIT

Disclaimer: The ideas expressed in this blog should not be construed as an enticement to buy or sell the securities, commodities or assets mentioned. The accuracy or completeness of the information provided cannot be guaranteed. Readers should carry out independent verification of information provided. No warranty whatsoever is given and no liability whatsoever is accepted for any loss howsoever arising whether directly or indirectly as a result of actions taken based on ideas and information found in this blog.

Lum Chang won a BCA award on May 16, 2013

Excerpt from Straits Times 

Loud noises are usually unavoidable during construction projects and often disturb residents living in the area. However, some construction firms have come up with innovative ways to manage the level of noise pollution and they will receive the Green and Gracious Builder Awards on May 16.

The awards from the Building and Construction Authority recognise builders who have made an effort to address environmental and public concerns arising from construction works.

...

Lum Chang Building Contractors, another award winner, customised inflatable noise barriers to reduce the noise generated from construction works.

Disclaimer: The ideas expressed in this blog should not be construed as an enticement to buy or sell the securities, commodities or assets mentioned. The accuracy or completeness of the information provided cannot be guaranteed. Readers should carry out independent verification of information provided. No warranty whatsoever is given and no liability whatsoever is accepted for any loss howsoever arising whether directly or indirectly as a result of actions taken based on ideas and information found in this blog.

Lum Chang won the case on April 24, 2013...

While doing research on Lum Chang, I came across the following piece of information on Singapore Law Watch listed 24 April 2013. Apparently, Lum Chang was involved in a law suit. Based on my understanding, Lum Chang (1st Defendant) won the case.

Case details and judgement here:- Singapore Law Watch

Excerpt from the judgement -

Ryobi-Kiso (S) Pte Ltd v Lum Chang Building Contractors Pte Ltd and another
[2013] SGHC 86

The case before me concerned an application by way of originating summons for an injunction against a call on a performance bond under a construction contract. After the hearing on 1 October 2012, I dismissed the application with the usual consequential costs orders. As the plaintiff applicant has appealed against my decision, I set out the grounds for my decision.

......

Having regard to the overall tenor and context of the entire conduct of the parties, I am unable to conclude that the 1 st Defendant’s conduct was “so lacking in bona fides” (see BS Mount Sophia at  [45]). I therefore dismissed the Plaintiff’s application with costs.

Disclaimer: The ideas expressed in this blog should not be construed as an enticement to buy or sell the securities, commodities or assets mentioned. The accuracy or completeness of the information provided cannot be guaranteed. Readers should carry out independent verification of information provided. No warranty whatsoever is given and no liability whatsoever is accepted for any loss howsoever arising whether directly or indirectly as a result of actions taken based on ideas and information found in this blog.

Lum Chang coverage in The Edge on 29 April 2013

Excerpts from coverage in The Edge on 29 April 2013:-
(source: The Edge Singapore)

Family-controlled Lum Chang Holdings does not attract much attention in the market. Yet, the decades-old contractor is an interesting play on Singapore’s property and infrastructure boom. And, its dividend of two cents per share provides investors with a steady dividend yield of about 6%. Its market value of just $123.8 million is currently a 28% discount to its book value of $173.2 million. The company also has a liquid balance sheet, with a net cash position of $33 million as at end-2012.

Much like other contractors, Lum Chang has taken stakes in property development projects. For instance, it has a 30% stake in Twin Fountains, an executive condominium (EC) development in Woodlands. The remaining stake is held by Frasers Centrepoint. The project was sold out swiftly earlier this month. The company also has a 20% stake in another joint venture with Frasers Centrepoint to develop Esparina Residences, an EC located in Sengkang that is due to receive its temporary occupation permit (TOP) at end-2013.

..... Lum Chang’s construction order book stood at about $600 million as at Dec 31. Its ongoing property development-related construction work comprises six projects. Two of these projects are for Ascendas: Nucleos in Biopolis Road and a business park development in Science Park Drive. Lum Chang is also building The Metropolis for Ho Bee Investment at Biopolis, Ripple Bay Condominium forMCL Land in Pasir Ris, and Esparina Residences.

...

Lum Chang also has a foothold in Malaysia, where it develops property.


... In February, it said it had bought property located at 42-60 Kensington High Street, London for £40.19 million ($76.8 million). “Our income will be mainly from the ground floor, achieving rental income from shops such as Zara, Topshop and Miss Sixty. The leases there are very long, 10-year leases and these will provide a good steady income,” Fong says.

The yield of the London property works out to 4.5%, giving an annual income of $3.4 million, according to a report by UOB Kay Hian. That is about 15% of the company’s earnings for FY2012. 

Lum Chang has paid a dividend of two cents per share for the last three financial years ...

Lum Chang does not have much of a following among analysts, though. However, UOB Kay Hian notes that the stock appears to be inexpensive. “Trading at 0.8 times price to book looks reasonable when compared with peers’ average of one time,” the brokerage states in a report. “Since FY2010, Lum Chang has maintained a net cash position. Its stock price is underpinned by cash reserves of $77 million as at Dec 31, which accounts for 62% of its market cap.”

Amid the hunt for yield, Lum Chang seems a good alternative to real estate investment trusts and consumer-oriented stocks that have run up sharply over the last couple of years.

If you are reading this, you may also be interested in:-

• Lum Chang - Analyst Coverage in April 2013
• Lum Chang - A hidden gem?

Disclaimer: The ideas expressed in this blog should not be construed as an enticement to buy or sell the securities, commodities or assets mentioned. The accuracy or completeness of the information provided cannot be guaranteed. Readers should carry out independent verification of information provided. No warranty whatsoever is given and no liability whatsoever is accepted for any loss howsoever arising whether directly or indirectly as a result of actions taken based on ideas and information found in this blog.

Lum Chang - a hidden gem?

Vested with a few lots of Lum Chang today.... after discovering it yesterday night.

Lum Chang's construction portfolio dates back to the 70s, and include buildings like National Library, Circle Line Stage 1, AMK Hub, Causeway Point, Paragon, Audi Terminal etc etc. It has branched into property development and investment, and holds buildings in Singapore and Malaysia for rents.

Tried to do some research on the stock, but apparently it is like a submarine stock.. hardly any news may be found for it. Which is a good thing for me, cos this means that I get to buy it at a good price without all the hype!

Here are the things I found...

1. At its last closing price of $0.34, it is trading at about 22% discount to its NAV of $0.4368.

2. It has been consistently giving dividends for the past years (my records date back to 2006).

3. Yield for last 3 years about 6% (based on $0.34).

4. Compared to its peers, Swee Hong (PB ratio 1.87 and PE ratio 18.7) and Yongnam (PB ratio 1.15 and PE ratio 8.7), its ratios of PB ratio 0.78 and PE ratio 6.0 seem much more attractive.

Hence the reason I bought today.


If you are reading this, you may also be interested in:-

• Lum Chang - Analyst coverage April 2013
• Lum Chang coverage in The Edge Singapore on 29 April 2013

Disclaimer: The ideas expressed in this blog should not be construed as an enticement to buy or sell the securities, commodities or assets mentioned. The accuracy or completeness of the information provided cannot be guaranteed. Readers should carry out independent verification of information provided. No warranty whatsoever is given and no liability whatsoever is accepted for any loss howsoever arising whether directly or indirectly as a result of actions taken based on ideas and information found in this blog.

My latest portfolio (as of 12 February 2013)

I started trading on Mar 27, 2011. The first stock I bought was F&N, and sold it for a 6.4% gain after 3 days :). Since then, I have made a number of purchases.. some good and some not so good. All in all, it has been a good learning experience.

This is latest snapshot of my portfolio.

No.	Name	Purchase Date	Purchase Px	Current Px	Gain/Loss
1	MCT	Apr 27, 2011	0.890	1.355	52.25%
2	Biosensors	Mar 16, 2012	1.450	1.330	-8.28%
3	Sabana REIT	Jul 26, 2012	1.000	1.225	22.50%
4	GP Hotels	Sep 3, 2012	0.242	0.275	13.67%
5	2nd Chance	Nov 22, 2012	0.417	0.410	-1.72%
6	Food Empire	Jan 2, 2013	0.580	0.685	18.10%
7	KSH Holdings	Jan 25, 2013	0.380	0.440	15.79%
8	Vizbranz	Jan 29, 2013	0.703	0.690	-1.85%
9	Saizen REIT	Feb 5, 2013	0.188	0.190	1.06%

Disclaimer: The ideas expressed in this blog should not be construed as an enticement to buy or sell the securities, commodities or assets mentioned. The accuracy or completeness of the information provided cannot be guaranteed. Readers should carry out independent verification of information provided. No warranty whatsoever is given and no liability whatsoever is accepted for any loss howsoever arising whether directly or indirectly as a result of actions taken based on ideas and information found in this blog.

KSH Holdings - my reasons for buying this stock

KSH Holdings first caught my attention after I read that it had obtained a Letter of Acceptance (LOA) for Qbay. Its order book now stands at more than $460 million, so there is visibility on its performance for the next 1-2 years. It has also been constantly paying dividends over the years to shareholders, with yield of 3.4% at closing price of S$0.44. PE ratio is relatively low at 8.5, which means that the stock is not overpriced. I also noted that its earnings over the years have been pretty consistent.

Initially, I was a little skeptical of construction stocks, as I feared that construction activities in Singapore is getting rather saturated due to boom in construction activities in recent years, and I had the impression that population growth in Singapore was going to be carefully controlled/curbed due to public sentiments post-General Elections. However, that changed after the White Paper came out, which projected that Singapore would have a population of 6.9 million in 2030. My feelings on this aside, I saw this information as an indicator that construction in Singapore is going to flourish for some years.

My entry price was S$0.38, which was still below its NAV of S$0.39. It's last closing price is S$0.44, which means a gain of 15% in less than a month.

There's a buy call from OCBC, revising its TP from S$0.50 to S$0.62.

Excerpt here (from http://sgx.i3investor.com/servlets/ptres/3848.jsp):

KSH Holdings: Another quarter of strong growth

KSH reported 3Q FY13 PATMI of S$8.1m, which surged 179% YoY mostly due to contributions from its property development segment as the group recognized earnings from The Boutiq, Cityscape@Farrer Park and Rezi 26. 9M FY13 earnings now cumulate to S$22.3m, up 108.3% YoY and forming 73% of our FY13 forecast. The group has sold a significant portion of launched projects, and we expect progress billings from already sold projects to underpin earnings growth ahead. Maintain BUYwith an increased fair value estimate of S$0.62, versus S$0.50 previously, as we lower the RNAV discount for its property segment from 50% to 40% to reflect a lower risk profile given a larger percentage of projects sold, and raise our PE multiple for its construction segment from 3.0x to 4.0x - a level closer in line with that of its peers. (Eli Lee)

The full report can be obtained from here: http://kshholdings.listedcompany.com/misc/KSH-130208-OIR.pdf

Disclaimer: The ideas expressed in this blog should not be construed as an enticement to buy or sell the securities, commodities or assets mentioned. The accuracy or completeness of the information provided cannot be guaranteed. Readers should carry out independent verification of information provided. No warranty whatsoever is given and no liability whatsoever is accepted for any loss howsoever arising whether directly or indirectly as a result of actions taken based on ideas and information found in this blog.

KSH Holdings - EARNINGS SURGE OVER 179.0%

KSH HOLDINGS’ EARNINGS SURGE OVER 179.0% TO HIT S$8.1 MILLION IN 3QFY2013 AND 108.3% TO HIT S$22.3 MILLION IN 9MFY2013

- Property Development division continues to achieve third consecutive quarter of strong growth, boosting bottomline 

- Strong construction order book of approximately S$461.0 million as at January 31, 2013

- Low gearing of 0.23x and healthy fixed deposits, cash and cash equivalents of S$66.7 million

Good set of results. Stocks may fly off the shelf tomorrow :) 

Disclaimer: The ideas expressed in this blog should not be construed as an enticement to buy or sell the securities, commodities or assets mentioned. The accuracy or completeness of the information provided cannot be guaranteed. Readers should carry out independent verification of information provided. No warranty whatsoever is given and no liability whatsoever is accepted for any loss howsoever arising whether directly or indirectly as a result of actions taken based on ideas and information found in this blog.

My holdings - January 2013

January 2013 has been a good month for the stock market. Stocks have been rallying, after fears of US and Europe crisis are quelled by cheery reports from the two economies.

For my holdings, on the REITs side, MCT has gone up by 12% during January from S$1.22 to reach a high of S$1.37 today. Sabana has also performed well, and increased 7% from S$1.14 to reach S$1.22 today. After doing some research, I noted that Saizen Reit is trading at S$0.19 which is a significant discount to its NAV value of S$0.30. Making use of the correction today, I bought some lots at its day low of S$0.188.

I sold my Singtel lots during this time for a profit of about 6%. Even though on hindsight, I should have hold onto the shares, however, as it is rather expensive at $3+, this gives it a lot of room to fall in price + tying up my limited $ resources, therefore I decided to sell it. If Temasek goes on a selling frenzy again, I can always buy it then :)

I still have my Second Chance. In fact, I bought a few more lots when it went XD recently and price dropped to S$0.40. Price movements are rather flat for this counter, but with a yield of 8.9%, I treat this stock like a fixed deposit. I am also holding on to my  Global Premium Hotel lots. Prices have gone up 8% during January from S$0.25 to S$0.27.

Other stocks that I hold include Food Empire (good prospects with expansion of business in China and India), KSH Holdings (booming construction in Singapore, good order outlook, and company is performing well), Vizbranz (bought on impulse recently on the basis that Lam Soon may privatise the company), and Biosensors (which I have been holding for close to a year, very low PE ratio of 5x). Of these, I am most inclined to sell Vizbranz to release the funds I have tied up in this counter.

Disclaimer: The ideas expressed in this blog should not be construed as an enticement to buy or sell the securities, commodities or assets mentioned. The accuracy or completeness of the information provided cannot be guaranteed. Readers should carry out independent verification of information provided. No warranty whatsoever is given and no liability whatsoever is accepted for any loss howsoever arising whether directly or indirectly as a result of actions taken based on ideas and information found in this blog.

Global Premium Hotels - 2012 DPU S$0.0141

Since my last post on Global Premium Hotels, it has announced its third dividend payout of S$0.0101. Coupled with the $0.002 cents for the last two payouts, total payout for FY2012 is S$0.0141. This translates into a dividend yield of 5.2 % (80% payout ratio of net profit after tax).

With my 52,000 shares, the DPU of S$0.0101 amounts to a nice final payout of S$525.20. XD on 17 April 2013.

Given the low price at which I bought the shares, there is greater potential for the shares to go upside than down, further in view that the share is still trading at a discount to its NAV of S$0.31. I will be holding on to the shares for a long while :)

Disclaimer: The ideas expressed in this blog should not be construed as an enticement to buy or sell the securities, commodities or assets mentioned. The accuracy or completeness of the information provided cannot be guaranteed. Readers should carry out independent verification of information provided. No warranty whatsoever is given and no liability whatsoever is accepted for any loss howsoever arising whether directly or indirectly as a result of actions taken based on ideas and information found in this blog.

Gold and more gold - its inverse relationship with the stock market

From what I understand, gold is a safe haven to all the money printing by the government, and hedge against inflation.

Read this rather interesting article about gold prices in recent weeks. Good news is, gold prices are coming down!

http://www.scmp.com/business/commodities/article/1136020/quantitative-easing-does-little-boost-gold-prices

Excerpt from the article

"Although gold has had a great run in the past decade, much of it has come in response to the uncertain times unleashed by the global financial crisis, and the liquidity injections and rate cuts in the central bank actions that followed.

The fact that gold did not react positively to QE3 reflects the view that the US economy is recovering. As it picks up, the likelihood of another round of quantitative easing decreases. Already in the minutes of the US Fed meeting held in December last year, discussion has begun about winding down QE3."

Disclaimer: The ideas expressed in this blog should not be construed as an enticement to buy or sell the securities, commodities or assets mentioned. The accuracy or completeness of the information provided cannot be guaranteed. Readers should carry out independent verification of information provided. No warranty whatsoever is given and no liability whatsoever is accepted for any loss howsoever arising whether directly or indirectly as a result of actions taken based on ideas and information found in this blog.

Food Empire Holdings Limited

Food related stock counters have been the new darlings of the Singapore Stock Exchange due to the F&N saga. Food Empire is one of the food related stock counters that have been in the news limelight in recent months.

It is currently trading at S$0.60, with PE ratio at 17.5 and NAV of S$0.364.

The reasons I find this counter attractive is different from those of Global Premium Hotels, which I believe is trading at an attractive price and a substantial discount to its NAV.

Food Empire is a food and beverage company, which manufactures and sells instant beverage products (e.g. instant coffee beverages), frozen convenience food (e.g. tail-on shrimp dumplings, butterfly seafood wantons), and snack food (e.g. potato crisps). Its main markets are in Russia, followed by Eastern Europe and Central Asia. 

12 December 2012: OSK-DMG says Food Empire is the cheapest Singapore-listed 3-in-1 beverage player at 14X P/E vs Super (S10.SG) at 21X and Viz Branz (L5J.SG) at 15X. 

More importantly, Food Empire is setting its eyes on the Chinese and India market which, historically, have always been tea drinkers. However, in recent years, there has been an increase in coffee drinkers in these big markets. So much so that Starbucks has also jumped on the bandwagon and set up operations in these countries.   

Starbucks established cafes in the region have maintained double-digit sales growth over the past couple of months (report in Wall Street Journal on 6 December 2012)

Starbucks opened its first cafe in India in October 2012 (report in Wall Street Journal in October 2012)

Food Empire has incorporated subsidiaries in China and India to bring its products into China and to manufacture instant coffee in India.

I am really excited by these news, and believe that there is tremendous growth opportunities for this company. And, of course I am vested :)

If you are reading this, you may be interested in:-

• Food Empire Holdings post 11.3% rise in net profit in Q1 FY 2013

Disclaimer: The ideas expressed in this blog should not be construed as an enticement to buy or sell the securities, commodities or assets mentioned. The accuracy or completeness of the information provided cannot be guaranteed. Readers should carry out independent verification of information provided. No warranty whatsoever is given and no liability whatsoever is accepted for any loss howsoever arising whether directly or indirectly as a result of actions taken based on ideas and information found in this blog.

Global Premium Hotels

Global Premium Hotels IPOed on 26th April 2012, which is a "spin-off" by its parent the Fragrance Group.

I am vested in this counter having bought some at its low point of 0.24. I hold a long term positive outlook on the shares.

Some of the reasons which I deem it an attractive buy:-
1. Current price at S$0.26 (which is also its IPO price) trading at about 20% discount to its NAV of S$0.3112.
2. Price-Earning ratio is low at 11.3.
3. Distribution of at least 80 % of net profit after tax for FY2012, estimated to be about 6% yield.

Furthermore, it has received good reviews and buy calls from various brokerages and media.

2 July 2012: 
Koh brothers increase stakes in Aspial Corp, Global Premium Hotels http://www.theedgesingapore.com/component/content/38325.html?task=view

5 December 2012: 
This is where Global Premium Hotels juices its lucky charm 
http://sbr.com.sg/hotels-tourism/more-news/where-global-premium-hotels-juices-its-lucky-charm

Buy call by OCBC
http://www.remisiers.org/cms_images/research/Dec03-Dec07_2012/GPH-121205-OIR.pdf

14 December 2012: 
http://www.theedgemalaysia.com/property/226653-global-premium-hotels-upgrades-hotels-and-opens-new-ones-away-from-geylang.html

20 December 2012:
Non-Executive Chairman Koh Wee Meng is once again accumulating Global Premium Hotels shares.
http://www.nextinsight.net/index.php/story-archive-mainmenu-60/916-2012/6236-armarda-global-premium-hotels-ezion-latest-happenings




Disclaimer: The ideas expressed in this blog should not be construed as an enticement to buy or sell the securities, commodities or assets mentioned. The accuracy or completeness of the information provided cannot be guaranteed. Readers should carry out independent verification of information provided. No warranty whatsoever is given and no liability whatsoever is accepted for any loss howsoever arising whether directly or indirectly as a result of actions taken based on ideas and information found in this blog.

Tool - SharesInv

To be able to know what stocks to buy, it is important to carry out research on the companies on your own. By this, I do not mean reading analyst reports or gather views from internet from others. This is because one cannot be sure if these analysts or others have "hidden agendas", in that they may be vested in these stocks, and are therefore inclined to persuade others to take up these stocks as well in order to drive up prices.

Of course, by the above statement, I do not mean that all analyst reports or views of others have hidden agendas. Nor do I mean that you should not read any analyst reports or not consider another's views. I just think that it is dangerous to rely only on these information sources and base only on them for your decision to buy or sell.

Thankfully, with technology, information is readily available on the internet. Some may be obtained freely, for example, on the company's own website. However, I think that it is worthwhile to pay a subscription fee, especially if you are actively trading, to subscribe to a portal that is able to provide the information to you of all the listed companies, available to you when you require it (instead of going through the hassle of searching for it, or tabulating the data).

One such portal I have used is Share Investment (www.shareinv.com). Its online subscription fee per month is SGD$7, and a yearly subscription costs $70. Information such as articles, charts, share price performance, financial ratios such as Price Earning ratio (PE ratio), Earnings per Share (EPS), Price to Book ratio (PB ratio), Yield, net asset value (NAV), dividend payout history, company announcements, quarterly performance, analysts reports are provided. There is also the possibility to customise your own watchlist, or to do stock screening, for example, to select companies based on lowest PE or PB ratios, or highest yields.

Of course, there are other possibly better portals out there, for example, those that provide you with ticker tapes, or which is able to give indication of whether the big boys are buying (through buying/selling lot sizes). However, I think that these information are not really necessary if you are not doing day trading. Furthermore, subscriptions for these portals are much more expensive.

Therefore, at present, I am quite happy with the above-mentioned portal. Their app ShareInv is available for download through the ITunes store.
Link here: Shares Investment - Pioneers & Leaders (Publishers)

Disclaimer: The ideas expressed in this blog should not be construed as an enticement to buy or sell the securities, commodities or assets mentioned. The accuracy or completeness of the information provided cannot be guaranteed. Readers should carry out independent verification of information provided. No warranty whatsoever is given and no liability whatsoever is accepted for any loss howsoever arising whether directly or indirectly as a result of actions taken based on ideas and information found in this blog.