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Let Your Stock Serve its Purpose

Peter Lynch classifies companies according to different characteristics such as size, growth potential, nature of industry etc.
This can actually be of great use to most investors. We have our portfolio of stocks, companies from different industries, at different phase of their growth. In general, if we ask what are the objectives of us investing in them? The first answer that comes to mind is of course, to make money! What other reasons can there be right, as no one will buy a share to lose money.
But if we were to probe deeper, the question we should actually be answering is how would these companies grow its earnings such that market recognises their ability to grow earnings, and in turn push up its price, realizing its value and growth, and present us with a chance to cash out on our profits.
Answering the question will affect how we position these stocks in our portfolio – positioning of shares in a portfolio matters. What purpose does this counter serve in your portfolio? What s…

ISOTeam HY 2017 Results

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Results overview

*Operating profit derived after deducting COGS, Marketing and Distribution Expenses, General and Admin Expenses, Finance Costs
Bright spotsIncrease revenue in A&A, C&P and other business segments by 77%, 67% and 41% that picked up the slack for the fall in R&R segmentFirst contract for HDB Improvement programme of $17.5m– higher profit margin job with usually bigger contract sizeSingle largest renewable energy project at $6.3mImproved GP margin and largely consistent OP margin. Probably mean good cost control and effective integration of acquired businesses
Areas of ConcernBig drop in R&R revenue, the main business segment.Still no announcement on major contract in MyanmarShrinking new orders obtained in this half compared to previous result announcement although total order book at historical high
For ISOTeam, investors are looking at realisation of growth potential in the form of more contract wins translating into improving numbers. Such is the nature …

What Has 2016 Taught Me/Reminded Me

It is year-end again, and typically, people review their life, thinking about what could have been done better, what went wrong, what good things happened. People also always look forward to a better year ahead. Such is human nature, no matter how bad (good) the year has been, we always remain optimistic and hope next year will be good (better).
Market had its fair share of exciting events and experienced some volatility. In perspective,  some of the market drops were significant, but not catastrophic. In Jan STI was down around 25% from recent peak of 3,500. Significant no doubt, but not that uncommon and catastrophic as some people or media described. I mean, compared to 08/09 this is quite mild.
With the wild-swinging market in 2016, it is even more important to hold on to solid investment principles or philosophies firmly, as these principles will guide us and help navigate through the choppy market. The more wild-swinging the market is, the more we need these principles to anchor…

Sembcorp Industries turning around soon?

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The recent plunge in oil price has affected the oil and gas sector badly, which has rocked Semb Marine’s corporate performance. That, in turn, has dragged Sembcorp Industries’s earnings too, as marine business still contribute a significant chunk of Sembcorp’s revenue (about 45% as of Q3 2016). Sembcorp’s share price has not been spared and dropped more than 50% from $5.5 to $2.5.
However, under the doom and gloom has been a common narrative running behind the investment merit of Sembcorp: it is more than just a Marine company and it has a promising and growing utilities business that is well-positioned to capture the rising demand for energy and water treatment services among the emerging economies.
So, if an investor wished to capitalise on Sembcorp’s current depressed valuation/share price and profit from its turnaround in future that’s envisioned to be led by the utilities business, he needs to study the  performance of its utilities segment up till 9M 2016 to determine whether th…

Frasers Centrepoint Trust Latest Acquisition

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FCT acts fast. Hot on the heels of its quarterly results announcement 2 weeks ago where management hinted that they will be looking at acquisition of asset held and managed by their sponsor, they announced yesterday that they will be buying the Yishun 10 Cineplex from Bonvest Holdings.
Yishun 10 houses the only Cineplex – Golden Village in Yishun, and several other retail shops such as Koi, Singpost, Arnold’s Chicken etc. It is located just across the road from Northpoint. It is not a big property and acquisition to be honest, as its NLA is just 10k square feet, about 5% of Northpoint’s NLA. And it cost FCT $37.75m to be paid fully in cash to the seller. The property is valued at $40m and enjoyed 99.5% occupancy.
As a Yishun resident that frequent the cinema there, I am excited to hear this news. I was just commenting to my wife few weeks ago that how good will it be if FCT can buy over Yishun 10, integrate it into part of the enlarged Northpoint City by dovetailing into its ongoing A…

Some Thoughts on Collecting Good Stuff

In my earlier post, I blogged about having the 'collector' mindset to view stocks of strong companies as collectors item worthy to be collector slowly and patiently during market mini crashes like the ones we had in Jan-Mar this year - COLLECT GOOD stuff at CHEAP price.

More recently during the Brexit vote, market dropped again and I viewed it as a good opportunity to deploy some cash to collect some shares. So what have I got this round?

Comfort @ 3.65; UOL @ 5.4; SPH reit @ 0.935; M1 @ 2.42; HSBC @ HKD 50.5

Fortunately, these holdings are are all in the green with varying profitability. Sometimes when the market rise higher and I looked at them with large amount of earnings it does feel good and I give myself a pat on the back. Other times when market is down and I know their value would drop in tandem too then I will just look at them less often to minimise emotions of regret.

There are a few things I would like to share my thoughts on regarding this 'Collection' mi…

How Do I Decide To Sell

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Personally I am faced with less problems when buying a share, compared to selling. As shared in an earlier post, I try to buy at a price so low that I do not have to worry about selling.
However, it does not mean that you are spared from the mental struggle or sense of uncertainty experienced when you try to sell. Kim Iskyan discussed about “Stockholm Syndrome” in this article, which is basically a buyer-remorse condition where one  questions himself whether the purchase was a right decision, and whether the buying could have been executed better, after the purchase.
I don’t usually experience the Stockholm Syndrome. Not that I am expert at valuing a company, or I have some divine ability to always buy at the rock bottom price. It is because I do not look at the share price often after I buy, hence do not have much opportunity to experience the buyer remorse. Also mentioned before, I intentionally not check the share price frequently, and instead just have a sense on the STI level to …