The overall market sentiment for the past month has been bearish. There seems to be too much pessimism within investors resulting in large sell-off in the market.
As for OUE, imho, is a good counter with good prospects. Despite share price plummeting over the last few months, I am not the least worried about it as I believe I still have the holding power to await for market upturn. It has turned its focus on acquiring US property assets as US economy gradually improves. I believe this is a smart move and rumors of setting up commercial REIT in the near future is something worth anticipating. For now, I will maintain my stance and believe in myself.
As the bearish market looms, I'll also be constantly tracking several stocks to see if I can get any bargain out of the market.
Peace out
Monday, 30 September 2013
Tuesday, 20 August 2013
QE Tapering - How does it affect investors?
Been wondering why the STI suffered a declined for the past few days.. Blue-chips, S-reits all registered fall in share prices in the past week. While there were no fundamental changes to any of the listed companies, what resulted in the fall?
QE Tapering:
It is widely expected that the US Federal will likely proceed with QE tapering - buying less bonds or selling part of the bonds it has bought previously when the US economy and unemployment rate was bad. It is understandable as QE was never intended to last forever - as economy improves there would be a point when Fed would start to tighten things up. But how is this going to affect the markets across the globe?
Previously when QE started a few years back, companies were able to borrow funds more easily, and were capable of coping with lower finance costs to build their business. As for now, Central Bank will be looking to buy lesser bonds or sell off their existing bonds, therefore, money supply would decrease - resulting in potential rising interest rates. This is likely to slow down economy growth as spending would be reduced as a result of tapering. As we know, s-reits are largely affected by interest rates since it is has a direct impact on the expenses of companies (refinancing cost, existing loan facility cost etc. are all expected to increase). Hence, companies might suffer the backlash of raising interest rates. EPS will be affected and the value of the company would be eroded.
While the minutes of meeting of US Federal has yet to be released, investors are wary of such threat it could potentially pose to the companies. Some traders would then be inclined to play safe and start selling off their shares to protect themselves against possible decline. Bringing in the law of demand and supply, as supply exceeds demand, share prices drop.
In conclusion, QE tapering will affect all markets in the world. But what will you do from the point of view of an investor?
To accumulate more shares while the price is low, or sell off current shares to cut loss?
Pardon if I have stated any incorrect in my write up (i am on a steep learning curve!) Feel free to leave me any comments on my write-up as I look to improve bit by bit!
SGBoy94
QE Tapering:
It is widely expected that the US Federal will likely proceed with QE tapering - buying less bonds or selling part of the bonds it has bought previously when the US economy and unemployment rate was bad. It is understandable as QE was never intended to last forever - as economy improves there would be a point when Fed would start to tighten things up. But how is this going to affect the markets across the globe?
Previously when QE started a few years back, companies were able to borrow funds more easily, and were capable of coping with lower finance costs to build their business. As for now, Central Bank will be looking to buy lesser bonds or sell off their existing bonds, therefore, money supply would decrease - resulting in potential rising interest rates. This is likely to slow down economy growth as spending would be reduced as a result of tapering. As we know, s-reits are largely affected by interest rates since it is has a direct impact on the expenses of companies (refinancing cost, existing loan facility cost etc. are all expected to increase). Hence, companies might suffer the backlash of raising interest rates. EPS will be affected and the value of the company would be eroded.
While the minutes of meeting of US Federal has yet to be released, investors are wary of such threat it could potentially pose to the companies. Some traders would then be inclined to play safe and start selling off their shares to protect themselves against possible decline. Bringing in the law of demand and supply, as supply exceeds demand, share prices drop.
In conclusion, QE tapering will affect all markets in the world. But what will you do from the point of view of an investor?
To accumulate more shares while the price is low, or sell off current shares to cut loss?
Pardon if I have stated any incorrect in my write up (i am on a steep learning curve!) Feel free to leave me any comments on my write-up as I look to improve bit by bit!
SGBoy94
Wednesday, 14 August 2013
Income Stocks
I will be aiming to buy stocks with strong fundamentals and respectable yields once I have some idle cash in bank. This will be the long-term plan as I will be accumulating these stocks to earn dividends to counter against imminent inflation and low bank interest rates.
Below are some of the criteria I am preferably looking out for.
1. Yield on cost >5% and with consistent dividend track record
2. At least 10% discount on NAV
3. Gearing ratio <30%
4. PE ratio <20
Nevertheless, I am also looking at fundamentally strong companies S-reits would probably best suit the above criteria. However, I am constantly aware that one should not be overly vested in reits. Furthermore, most reits are quite overpriced now. There are not many stocks out there which are under-valued.
I will be looking to build up my portfolio on income stocks first before diversifying when i have more funds.
Fortune favors the brave
SGBoy94
Below are some of the criteria I am preferably looking out for.
1. Yield on cost >5% and with consistent dividend track record
2. At least 10% discount on NAV
3. Gearing ratio <30%
4. PE ratio <20
Nevertheless, I am also looking at fundamentally strong companies S-reits would probably best suit the above criteria. However, I am constantly aware that one should not be overly vested in reits. Furthermore, most reits are quite overpriced now. There are not many stocks out there which are under-valued.
I will be looking to build up my portfolio on income stocks first before diversifying when i have more funds.
Fortune favors the brave
SGBoy94
Thursday, 1 August 2013
OUE Dividend
Woots
OUE finally annouced its imminent special & interim dividend - 21 cents per share (date payable early Oct). Even though it is lower than what was expected, it still represents a 7.36% yield on my buying price!
At the same time, Q2 report was also released in SGX. Despite encountering a drop in profits - 63% in 1H, it still enjoyed revenue rise. The drop in profits was mainly due to increase in cost of sales - professional fees and legal fees, and affected occupancy rate in investment property (Shenton way). However, it doesn't really bother me as OUE is in the midst of striking a deal with new occupants. Soon after, related expenses will be reduced as well. So despite the drop in profits i don't think it is something that would make shareholders panic. - it still gave out dividends a few times this year
Will expect the share price to go up tmr despite its weak profits reported for 1H. The dividend yield is far too attractive for investors like me to resist.
Fortune favors the brave
SGBoy94
OUE finally annouced its imminent special & interim dividend - 21 cents per share (date payable early Oct). Even though it is lower than what was expected, it still represents a 7.36% yield on my buying price!
At the same time, Q2 report was also released in SGX. Despite encountering a drop in profits - 63% in 1H, it still enjoyed revenue rise. The drop in profits was mainly due to increase in cost of sales - professional fees and legal fees, and affected occupancy rate in investment property (Shenton way). However, it doesn't really bother me as OUE is in the midst of striking a deal with new occupants. Soon after, related expenses will be reduced as well. So despite the drop in profits i don't think it is something that would make shareholders panic. - it still gave out dividends a few times this year
Will expect the share price to go up tmr despite its weak profits reported for 1H. The dividend yield is far too attractive for investors like me to resist.
Fortune favors the brave
SGBoy94
Tuesday, 30 July 2013
Bought OUE Ltd
Bought straight 2 lots OUE @ 2.85 today despite the low transaction volume these few days. Hopefully situation changes once special dividends announced!
Awaiting for special dividends!!! Mooncake festival coming can buy mooncake wahahhaaha
Fortune favors the brave
SGBoy94
Awaiting for special dividends!!! Mooncake festival coming can buy mooncake wahahhaaha
Fortune favors the brave
SGBoy94
Saturday, 27 July 2013
Overseas Union Enterprise
I find it quite surprising why there isn't much talking point about OUE. With its recent asset spin off to OUE Trust, it has been rumored that a special dividend of about 30 cents per share is coming up.. At share price of 2.85 present, it would represent a 10% special yield. This excludes the usual dividend OUE will be giving out..
In addition, its current share price is at a 20% discount to its NAV. However, its recent q1 report reflects a drop in profits due to increase in finance and admin cost etc. Nevertheless,its revenue still enjoyed a rise. An important note is that OUE has still consistently gave out dividends in May 2013.
Back to its recent asset spin off, it is likely to improve its gearing ratio and debts will be significantly reduced. At the same time, finance cost would be reduced which is gd news since interest rates is likely to increase based on reports.
OUE also has a diversified portfolio ranging from retail to commercial to hospitality in different countries. Revenue is produced from different sources. An area affected might not be too detrimental to the group as a whole.
An imminent special dividend will definitely bring rise to its current share value. It represents a good investment now from my point of view..
Signing off
SGBoy94
In addition, its current share price is at a 20% discount to its NAV. However, its recent q1 report reflects a drop in profits due to increase in finance and admin cost etc. Nevertheless,its revenue still enjoyed a rise. An important note is that OUE has still consistently gave out dividends in May 2013.
Back to its recent asset spin off, it is likely to improve its gearing ratio and debts will be significantly reduced. At the same time, finance cost would be reduced which is gd news since interest rates is likely to increase based on reports.
OUE also has a diversified portfolio ranging from retail to commercial to hospitality in different countries. Revenue is produced from different sources. An area affected might not be too detrimental to the group as a whole.
An imminent special dividend will definitely bring rise to its current share value. It represents a good investment now from my point of view..
Signing off
SGBoy94
Friday, 26 July 2013
First Investment Didn't Start Off As Plan
Ok I am rather unlucky, as demand GREATLY exceeds the supply of SPH reit shares, I am so unfortunate to not even get 1 lot of SPH reit shares.
Anyway, with such high demand for d reit shares, I expected the share price to open at a higher price to its IPO - indeed, at the end of day 1, closed at 0.985. Impressive I would say, based on its debut performance.
Another reit IPO - OUE HTRUST, made its debut at a price near its IPO price of 0.88, which is quite disappointing as reports did reflect high demand for the IPO as well. Those who wanted to stagg might have failed based on its debut performance..
Well, seems like I have to park my savings aside first before making my first move in the stock market. All blue chips in SGX now seems too overpriced to invest on, I shall bide with time before investing in a good one.
Anyway, I've been following RafflesMG quite closely these few days. As of today down 1.5%. As people starts getting more health conscious and the stable need for healthcare services, it seems like a good investment. Healthcare sector should grow from strength to strength.
Continue to bide with time!
HUAT
SGBoy94
Anyway, with such high demand for d reit shares, I expected the share price to open at a higher price to its IPO - indeed, at the end of day 1, closed at 0.985. Impressive I would say, based on its debut performance.
Another reit IPO - OUE HTRUST, made its debut at a price near its IPO price of 0.88, which is quite disappointing as reports did reflect high demand for the IPO as well. Those who wanted to stagg might have failed based on its debut performance..
Well, seems like I have to park my savings aside first before making my first move in the stock market. All blue chips in SGX now seems too overpriced to invest on, I shall bide with time before investing in a good one.
Anyway, I've been following RafflesMG quite closely these few days. As of today down 1.5%. As people starts getting more health conscious and the stable need for healthcare services, it seems like a good investment. Healthcare sector should grow from strength to strength.
Continue to bide with time!
HUAT
SGBoy94
Friday, 19 July 2013
SPH reit
This is my first post! Decided to create a blog to document all my learnings, investment etc as i find it meaningful to see my learning curve!
I have decided to splash $4,500 of my hard-earned savings on SPH reit - priced at $0.90/share. (subject to balloting)
What i really like about SPH reit is that, despite its rather low yield of about 5.5% (which would earn me about $270/year), it has rather fundamentally strong SPH as its backing. In addition, it has rather healthy gearing ratio of <30% which means that it has relatively low debts to its equity. With Paragon and Clementi under its properties, I would say both are rather strategically located which would enjoy good crowd. Both malls are enjoying 100% occupancy as well. Future rental prices are likely to increase, and with asset enhancement strategy, its future growth can be anticipated (slow growth though).
I would say that investing on SPH reit is a rather low risk investment which would guarantee respectable dividend yield, which encouraged me to fork out the money to dive into this IPO.
Based on reports, apparently it is receiving extremely strong demand from institutional and private investors. So i might predict that during its first few days after listing (25 July), the demand is likely to push up the share price of 90 cents. Nevertheless, that is my not my main focus as i am planning to hold it for long-term! - enjoy unrealized gains (if share price goes up) and dividends! Well, like what Warren Buffet said, we should buy a stock and have the intention to hold it indefinitely!
Till then!
SGBoy94
I have decided to splash $4,500 of my hard-earned savings on SPH reit - priced at $0.90/share. (subject to balloting)
What i really like about SPH reit is that, despite its rather low yield of about 5.5% (which would earn me about $270/year), it has rather fundamentally strong SPH as its backing. In addition, it has rather healthy gearing ratio of <30% which means that it has relatively low debts to its equity. With Paragon and Clementi under its properties, I would say both are rather strategically located which would enjoy good crowd. Both malls are enjoying 100% occupancy as well. Future rental prices are likely to increase, and with asset enhancement strategy, its future growth can be anticipated (slow growth though).
I would say that investing on SPH reit is a rather low risk investment which would guarantee respectable dividend yield, which encouraged me to fork out the money to dive into this IPO.
Based on reports, apparently it is receiving extremely strong demand from institutional and private investors. So i might predict that during its first few days after listing (25 July), the demand is likely to push up the share price of 90 cents. Nevertheless, that is my not my main focus as i am planning to hold it for long-term! - enjoy unrealized gains (if share price goes up) and dividends! Well, like what Warren Buffet said, we should buy a stock and have the intention to hold it indefinitely!
Till then!
SGBoy94
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