T.U.B Investing

This article contains PART of my 1st Scorecard Newsletter written on 22 Aug 2018 for my Moat Scorecard subscribers.  This is the 1st write up of the Scorecard Newsletter just for you, as a subscriber.  This write up will comes with full disclosure on the companies that I will be discussing, even if they are in my portfolio. Do note that this write up will be reproduced on TUB Investing Blog 1 month later without full disclosure. Before I start, I like to discuss about the consequences that occurred during the Turkey-US crisis.  Basically, market went down quite drastically and it caught quite us by surprise. This signifies the volatility of the current market – a simple discussion between countries can result in multiple ripples globally.  This is most probably the Nth time I had said it – as a retail investor, we need to invest in a strong fundamental company to be able to avoid these ripple effect. Companies with strong moat will have strong fundamental...

M1 Ltd  has been falling for a prolonged period, from the heights of $3.930 on April 2015, till $2.020 on 31 Oct 2016, before recovering slightly recently. Over the period of freefall, there was also a slight recovery during this period of fall. Nevertheless, as per the chart below, the share price is currently at the lowest point over the last 5 years. Why? Many factors has caused this downfall, such as the pending establishment of the 4th Telco, the Jan-Feb 2016 correction, the insider selling by the CEO and also the recently released 3rd Quarter financials which were deem to be "very poor". These factors were further enhanced by analyst reports that states M1 Ltd will be the worst hit among the 3 Telcos. Yes, people continues to be "addicted" to analyst reports . So there are some truth... 1. M1 will be the most badly hit by the emergence of 4th Telco - This factor, as reported by many analyst reports, is due to M1's busine...

I will be using M1 as the first company to test my Triple S Scorecard. Profile In Short If you do not know what M1 does or is, you do not know Singapore enough. In simple terms, M1 is still one of the only 3 telecommunication companies in Singapore. Based On Triple S Scorecard: Why So Good? Defensive Stock - Telecom Companies are deem as defensive stocks, due to their business model. It will always have business and its customer are locked up with them for at least 2 years (due to signing up a 2 year mobile plan with M1). 1 of the only 3 Established Telecommunications Company in Singapore - Despite announcement of a 4th Teleco coming along the way, it has been stated widely that M1 may AT MOST LOSS 20% of the revenue. This is due to the fact that Teleco industry has a high barrier to entry. Having established in Singapore for such a LONG TIME, M1 already an established infrastructure. High Dividend Yield, Dividend Payout Company - M1 is a company that p...

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 D...

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...

Telcos: M1, Starhub, Singtel (Part 2) You can read about Part 1 here which I wrote on 24 May 2015. However, things didn't go that well for me. I had itchy hands and got myself some lots of Singtel (@4.220) and Starhub (@4.05) on 25 May 2015 as I felt the drastic drop is enough. Never did I expect Telcos to continue to drop and so drastically. My over-confidence in my view blinded my vision and now my portfolio is "Telcos" heavy (I already had some M1 very long time ago). However, I came across an article  by Assi AK. In my opinion, it tell us to question our initial actions and if the investment will still do its job. So why did I enter into these 2 trades (Starhub & Singtel)? 1. For Dividends. 2. Blue Chips Stable company in view of recurring income. 3. Current Drop is due to 4th Telco News and maybe the "Big Boys" selling their shares. With the above reasons, I believe Telcos stocks are still good to hold. I bought them for the long term a...

Telcos: M1, Starhub, Singtel Over the last week (18 to 24 May 2015), the 3 local Telco prices dropped drastically. One of my friend was asking if he should pick up some of M1 stocks that time. I told him -  M1 has been a local company all along (only serving the customer in SG). Therefore, with the 4th Telco coming in, it is very bad being a local player serving mainly HP and Fibre Boardband customers.  In addition, M1 holds little cash (Similar to Starhub) and their high dividend yield is mainly feasible due to the recurring business. Despite being the first company serving the Fibre Broadband market, I believe Singtel is catching up. Thus, M1 recently announced an investment in Oman. This middle east market to me is unproven. Unlike UAE, Oman is not as developed (Correct me if I am wrong). In view of the above, the market may have react too by the selldown of the stocks. However, in my opinion, this sell down is too drastic as many facts are still unp...