Showing posts from December, 2015

The Value Portfolio - Recent Actions and Views - Post 5

I am lucky enough to be in time to post my last blog post in 2015 - A review of my portfolio. My overall portfolio has not done well - it was down an average of about 5%. However, looking on the bright side, it is still better than how the STI performed over the year. The following are stocks in my portfolio: 1) ISDN Holding Limited + Post 2 2) Sin Ghee Huat Corporation Limited 3) PNE Industries Limited 4) Chuan Hup Holding Limited 5) LHT Holdings Limited 6) TTJ Holdings Limited 7) Accordia Golf Trust  + Post 2 8) Singapore Telecommunications Limited 9) Sapphire Corporation Limited 10) Suntec Real Estate Inv Trust 11) Oversea-Chinese Banking Corporation 12) CH Offshore Ltd 13) Maxi-Cash Financial Services Corp Ltd 14) ST Engineering Ltd 15) Bukit Sembawang Estates Ltd + Post 2 16) PSL Holding Ltd 17) M1 Limited 18) Hock Lian Seng Holding Ltd 19) United Industrial Corporation Ltd Bought United Industrial Corporation Ltd - This is

Rising Interest Rate and A Stronger USD $

On 16 Dec, Fed increases the interest rate in USA.  In this modern world, this increment in interest rate will eventually cause the Singapore Interest rate to increase as well. There is a whole lot of information on the net explaining this link This rise in interest rate will also result in a strong USD dollar in future. So how will this affect the companies in Singapore? Higher Interest Rates: 1. Those companies that uses leverage to grow will be in for a tough time. Their debt will balloon and they will need to pay higher finance cost. 2. Companies with debts on fixed interest rate will not be affected as much. 3. Companies with huge cashload will gain more interest earning. 4. Companies earning rental from properties that are mortgaged to banks, may have huge opportunity costs. If their actual rental yield is not higher than the yield that can be earned from the safer investment, such as treasury bonds, these companies will lose out. Higher USD$

Why The Triple S Scorecard Do Not Have The "ROE" Criteria?

After reading this article from the fifth person, I was wondering if it is the right move to not include the ROE as a criteria. In my initial Scorecard, I did include an analysis of ROE as a criteria. But I remove it for the Triple S Scorecard because of the chapter 21, Market Consistently Underprices Quality, in Show Me The Money Book 2. It basically states mean reversion of ROE does have over a long time. A good ROE will drop and a bad ROE will rise over a long time. (I maybe wrong in my interpretation). Nevertheless, the question came to my mind after reading the article from the fifth person. While researching on ROE, I found that ROE can be broken (or remembered) into the Dupont Analysis. ROE can be broken into Asset Turnover, Operating Margin and Financial Leverage. If you remember the criteria in the Scorecard, I emphasize that the I do not want a company to have significant liabilities (total liabilities to equity must be less than 2/3) or have a debt to equity

Recent Views on Investment Environment (As of 07 Dec 2015)

It's been a while since I did a write up on the investment environment. So far...I only have 1 word for it - BAD. This conclusion is formed due to 1 reason - The Oil Price Is Still Falling. This is mainly due to supply and demand factors: 1. Oversupply due to USA increasing its shale oil output and other oil production. Thus, the usual suppliers like Saudi Arabia start to sell to Asian powerhouse instead.  2. Instead of cutting supplies like usual, OPEC is trying to defend the market share instead oil price. Further increasing the supply of oil. 3. Increase of the use of alternative energy sources. So lesser countries will use oil as a source of energy. 4. With the increase in supply, demand remains the same. So the price keep falling. So how has that affected the world? 1. With the oil export dependent countries having deficit, their sovereign wealth funds have withdrawn money from asset managers. ( Read news )  2. With this withdrawal of fu

Leisure Reading Articles for the Singapore Strategy in 2016

Sorry for the lack of articles lately as I am preparing for the course and have been busy too... This post is just informing you that I have 4 articles from the banks on hand:  - Credit Suisse Asia Pacific Strategy for 2016 - OCBC Investment Research on Singapore Strategy for 2016 - RHB Singaore Smart Nation Article - RHB Singapore Strategy for 2016 If you are interested in all the 4 articles, do email me at or use the email contact box beside this post. Nonetheless, these articles are public information and you can find on the web. These articles are just for leisure reading purposes and I am not endorsing their views in the paper. Please still do your own due diligence. If you are interested in my "Triple S" scorecard, contact me through my blog or message me on my T.U.B Investing Facebook Page . Oh and we will have a online course up soon... contact us for more details if you are interested. Do like our facebook page too...