Showing posts from June, 2015

M1 - A more extensive explanation

Many of you might have read what I wrote about Singtel  and some of you asked me about my investment in M1 as well. I bought it at 2.66 in Sep 2012 and have been holding on to it since. Every year I received about 4% to 5% of Dividend and I believe this will continue. M1 has always been my prefer choice of local telco investment, prior to the 4th Telco News, because: 1. Cheapest Defensive Stock among the 3 Telcos and with the one with the lowest debt. 2. No Cable TV or Mio TV - With the streaming services readily available on the net, this seems like a lose-making venture, especially with the fighting of the EPL rights. Charging sky high prices towards the consumers will only backfire eventually. 3. First Teleco to step into the fibre boardband spectrum. 4. Consistent Rising Trends. Singtel and Starhub, at that point, has a more roller-coaster trend. So with the news of the 4th Telco (in additional to the Greece Drama as well as the new up and coming China Drama

My Methods Has Evolved Since...

Ever since I have joined some of the Facebook Groups and follow some of the experienced traders, my methods has changed. Rather than just solely looking for at value investing shares, I look at: 1. News - On future opportunities  I have talked about AIIB, Japan Investing in Asia and ICT Tenders (Read here Part 1 & Part 2 ). Now I have found other interesting news as well. Singapore building an Indian City - Blue Chips will definitely get involved. But how profitable will it be? Sembcorp Intention of Buying 1MDB Edra? - Opportunity or Political Move or Something in the dark we don't know? My view is that most probably they intent to expand their utilities unit in view that Oil and Gas is not doing well. Greece Risk Timeline - A matter that will create shock wave across the world. I always view these news as opportunity rather than risk. If its risky, invest after that event as blue chips tend to fall. If its opportunity, invest before it happen as these events

I Sold Starhub and Lose $$

I believe I should update, whoever have read my previous 2 write-ups ( Part 1 & Part 2 ) on the drastic drop in the Telco Prices, that I have sold off my Starhub shares (and had a small loss incurred). This is because Singtel Shares have dropped even more and I view it as an opportunity. Thus I decided to transfer my holdings to Singtel (despite incurring some losses). Why Singtel? Not M1 or Starhub? (1) Global Firm vs Local Singapore Firm The drastic drop maybe due to the introduction of 4th Telco in Singapore. M1 and Starhub, being more focus within Singapore, will result in a greater drop in Revenue (if subscribers jump ship to 4th Telco). This will lead to lower profit then lower dividend. Dividend yield will drop of dividend payout dropped. Global Firm, where majority of the revenue comes from Outside Singapore, the impact will not be so big. Thus, hopefully maintaining dividend. (2) Same Business At the moment before I sell, I have all 3 Telco Shares (Singtel, Starhub