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SEA Limited’s Q3 & 9M FY2022 Results

SEA Limited’s Q3 & 9M FY2022 Results

Unless you have been living under a rock, I’m sure you should know about all the negativity surround SEA Limited (NYSE:SE) at the moment – as a result of the economic headwinds, and with the company sinking deeper into a net loss position, it has made the painful decision to undergo a few rounds of retrenchment exercises.

The company’s top management have also made the decision to forgo their salaries until it achieves ‘self-sufficency.’ Additionally, the CEO Mr Forrest Li, also said the company will be changing its focus from growth to achieving net profit.

This post was originally posted here. The writer, Jun Yuan Lim is a veteran community member and blogger on InvestingNote, with a username known as @ljunyuan and has close to 2100 followers.

Yesterday evening (15 November), the company have made available its results for the 3rd quarter, as well as for the first 9 months of the financial year 2022, and as a shareholder of the NYSE-listed company (with my average price at US$191.87), you will find my review (where I will be highlighting the good and bad) about its latest financial performance, cash flow statement, along with comments from its CEO. 

SEA Limited derives its revenue from 3 business segments:

i. Digital Entertainment – Through Garena, a leading online games developer and publisher with games such as League of Legends, Call of Duty, Arena of Valor, Free Fire, and Speed Drifters;

ii. E-commerce & Other Services – Through Shopee, a leading e-commerce platform in Southeast Asia and Taiwan, along with SeaMoney, a leading digital payments and financial services provider in Southeast Asia (one of them is Shopee Pay.)

iii. Sales of Goods – Where revenue is generated from the sales of products on the Shopee platform which SEA Limited purchases from manufacturers and third parties. 

Financial Performance (Q3 FY2021 vs. Q3 FY2022)

SEA's Q3 FY2021 vs FY2021 Financial Performance
SEA’s Q3 FY2021 vs FY2021 Financial Performance

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Which Singapore-Listed Bank Had the Most Resilient Set of Q3 Results for FY2022?

Which Singapore-Listed Bank Had the Most Resilient Set of Q3 Results for FY2022?

All 3 Singapore-listed banks (in DBS, UOB, and OCBC) have already released their business updates for the third quarter ended 30 September 2022. As I have investments in them, I have posted reviews when their business updates were made available and you can find them in the respective posts below:

This post was originally posted here. The writer, Jun Yuan Lim is a veteran community member and blogger on InvestingNote, with a username known as @ljunyuan and has close to 2100 followers.

My focus in this post is to put the 3 banks’ results side-by-side to find out which one reported the most resilient set of results both on a quarter-on-quarter (Q3 FY2021 vs. Q3 FY2022) and on a year-on-year (9M FY2021 vs. 9M FY2022), as well as which is currently the ‘cheapest’ (based on their current valuations.)

Before I begin, a quick recap on the 3 banks’ performance for the 2nd quarter, as well as for the first half of the financial year – both UOB and OCBC stood out in terms of improvements in its financial results, as well as in its key financial ratios, with OCBC being ‘cheapest’ among the three.

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My Review of OCBC’s Q3 FY2022 Business Update

My Review of OCBC’s Q3 FY2022 Business Update

Early this morning (05 November 2022), Overseas-Chinese Banking Corporation Limited (SGX:O39), or OCBC for short, is the last of the 3 Singapore-listed bank to release its business update for the third quarter of FY2022 ended 30 September 2022 (you can check out my review of UOB’s Q3 FY2022 business update here, and DBS’ Q3 FY2022 business update here.)

This post was originally posted here. The writer, Jun Yuan Lim is a veteran community member and blogger on InvestingNote, with a username known as @ljunyuan and has close to 2100 followers.

Just to recap – in the previous quarter (i.e. Q2 and 1H FY2022), the performance of its non-performing loans ratio (where it saw a 0.1 percentage point, or pp for short, decline to 1.3%, despite the economic headwinds) stood out. Also, the 12.0% increase in its interim dividend payout to 28.0 cents/share was also a pleasant surprise (do note that for the current quarter under review, there are no dividend payouts declared as the bank pays out dividends on a half-yearly basis.)

Will its results this time round spring up any more pleasant surprises? Let us find out in this post, where you’ll read about my review of the Singapore-listed bank’s latest Q3 and 9M business update (as the bank have also changed to reporting its full financial statements on a half-yearly basis, it only provided a snippet of its financial performances this time round) in terms of its key financial performances and ratios:

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DBS Group Holdings’ Q3 FY2022 Business Update – What You Need to Know

DBS Group Holdings’ Q3 FY2022 Business Update – What You Need to Know

Singapore’s largest bank in DBS Group Holdings Limited (SGX:D05) is the second bank to release its business update for the third quarter of the financial year 2022 ended 30 September 2022 early this morning (03 November 2022.)

This post was originally posted here. The writer, Jun Yuan Lim is a veteran community member and blogger on InvestingNote, with a username known as @ljunyuan and has close to 2100 followers.

Similar to UOB (which have published its Q3 FY2022 business update last Friday, and you can check out my review about it here), for the current quarter under review, it only released a snippet of some of the key financial figures (as the bank have switched to reporting its full financial results on a half-yearly basis), which we will be looking at, along with some of the key financial ratios in this post. I’ll also be sharing my thoughts about the bank’s latest ‘report card.’

Let’s begin:

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Does PayPal Holdings Inc. (NASDAQ:PYPL) Make a Good Addition to Your Investment Portfolio? (GUEST POST)

Does PayPal Holdings Inc. (NASDAQ:PYPL) Make a Good Addition to Your Investment Portfolio? (GUEST POST)

If you have been shopping online, then the name PayPal should sound familiar to you – as some of the merchants make use of the digital payment platform to accept payments from their customers.

PayPal completes GoPay acquisition, allowing the payments platform to enter China | TechCrunch

This post was originally posted here. The writer, Lim Jun Yuan is a veteran community member and blogger on InvestingNote, with username known as ljunyuan and has 1386  followers.

Before you continue reading today’s post, a disclaimer: I am currently invested in the company I am going to talk about today – PayPal Holdings Inc. (NASDAQ:PYPL). But having said that, as always, rest assured I will be impartial in my analysis of the company.

I’m sure the name PayPal is not one that’s alien to you – especially to those of you who have shopped online before, you should have come across it when making payments, as some merchants make use of its digital payment platform to accept payments from their customers (for a small fee.)

From my understanding in its FY2019 annual report (for the financial year ended 31 December 2019), the company currently has 281 million customer active accounts and 24 million merchant active accounts across more than 200 markets worldwide. The company also owns Braintree (a company based in Chicago in the United States that specializes in mobile and web payment systems for e-commerce companies, which was acquired by PayPal in September 2013), Venmo (a mobile payment service that allows for the transfer of funds between its app users), and Xoom (a platform that facilitates the sending of money, paying of bills, and reloading of mobile phones from the United States and Canada to 131 countries worldwide; the company was acquired by PayPal in November 2015.)

Among the various means that PayPal Holdings Inc. generates its revenue from include:

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The Curious Case Of SIA’s Price Action After Ex-Rights (Guest post)

The Curious Case Of SIA’s Price Action After Ex-Rights (Guest post)

I am not sure if there are any fellow investors who find the price action of SIA (Singapore Airlines) pretty weird yesterday, the first day it went ex-rights. The stock actually appreciated more than 20+%!

screen-shot-2020-05-06-at-10-41-35-am

This post was originally posted here. The writer, Royston Tan is a veteran community member and blogger on InvestingNote, with username known as Royston_Tan.

SIA RIGHTS: THE CURIOUS CASE OF ITS PRICE ACTION

SIA went ex-rights today and there was some pretty weird action in its share price which I can’t seem to understand. I have previously written this article: SIA Rights Issue: Debunking the complication behind the Math. In that article, I tried to “simplify” the seemingly complicated SIA rights issue announcement and more importantly, look to calculate what might the trading price be for the Rights and the MCBs when they start trading on the bourse.

SIA’S VALUE WENT UP BY 26% OVERNIGHT?
SIA’s share price closed at S$5.91 yesterday. This morning, it went ex-rights. First I believe that the “Rights” here includes both the 1) Right Shares as well as 2) the Rights MCBs.

SIA previously calculated that the Theoretical ex-rights Price (TERP) was S$4.40/share based on the last traded price of S$6.50 before the announcement of the intended rights issue was made. This TERP only includes the Rights Share component, based on the issuance of approx 1.78bn shares.

I shown that the calculation of the TERP price was as such:

At S$6.50/share with 1.18bn of outstanding shares, the market cap of SIA is S$7.67bn.

With the issuance of 1.78bn rights shares, the total number of shares will increase to 2.96bn. Total amount of capital raised = 1.78bn * S$3.00 = S$5.34bn.

So post rights issuance market value of SIA = (existing market cap (S$7.67bn) + new cash raised (S$5.34bn)) / total number of new shares (2.96bn) = S$4.40/share.

Based on the last closing price of S$5.91 which indicates a market cap of S$6.97bn, the TERP should be (existing market cap(S$6.97bn) + new cash raised (S$5.34bn))/the total number of new shares (2.96bn) = S$4.16/share.

This morning, SIA’s share price open at S$4.20 which is around the calculated TERP. However, it traded up to as high as S$5.04 and as of this writing, it is at S$4.77.

The current price of S$4.77 is even higher than the TERP price of S$4.40 base on a pre-ex-rights price of S$6.50. The current S$4.77 price would indicate a pre-ex-rights price of S$7.44! WoW. Overnight, SIA’s price/share has increased from S$5.91 to S$7.44 which is an appreciation of 26%! What is going on here?

Seriously, I am not sure what the market is thinking at this moment pertaining to SIA. In the analysis above, I have also excluded the impact of the MCBs which should indicate a much lower TERP of S$4.16/share. Granted that these MCBs are not convertible to shares immediately. I have previously calculated that the ex-right price after all the conversions would have been in the arena of S$3.71/share based on the last closing price of S$5.91.

What is going to happen if the share price of SIA stays at S$4.77 when the rights are converted to shares (on the 8 June)?

Let’s assume that an investor bought 1000 shares of SIA yesterday at S$5.91/share. The total outlay will be S$5,910 (excluding comms etc). For 1000 shares, he will be entitled to 1,500 right shares. He can exercise the rights, paying S$3/rights, and convert them into actual shares.

His total outlay will be S$10,410 (S$5,910 + S$4,500) and he is now the proud owner of 2,500 SIA shares. At S$4.77/share, that will equate to a market value of S$11,925 which is a quick profit of S$1,515. In addition, he will still have 2,950 Rights MCB which should be worth some value when they are tradeable.

I last calculated that value to be approx S$0.37/Rights MCB. 2,950 of them will equate to another S$1,091 in value. Total profit could be a hefty S$2,606 based on an outlay of S$10,410 or a quick turnaround of 25%! Even if I am wrong in the calculation of the Rights MCB value, it cannot be negative.

Hence an investor who bought SIA shares at S$5.91/share before the ex-right date (which is May 6) will be able to pocket at least S$1,515/share if the share price remains at S$4.77/share when his rights are converted to shares. Alternatively, if he is concern that the share price might decline from the current level, he can hedge and lock in the profit by shorting the counter (perhaps through CFDs or borrowed shares) until his rights are converted to actual shares.

if SIA’s share price is lower at that point, his hedges make money. If SIA’s share price is higher at that point, he can offset the losses on his hedges with his actual shares which are now worth more.

There could be other factors in play that might explain the price action of SIA such as potential redemption of short positions driving its share price up or the market all of a sudden became extremely positive over this rights issue. Bloomberg claims it could be due to hopes of easing lockdowns.

Already there are casualties in the market. The daily leverage -5x counter of SIA has been suspended as the underlying price has appreciated more than 20% from their theoretical adjusted price of S$3.71 which means that losses are now in excess 100% for this leverage product.

SIA RIGHTS: KEY TIMELINE

6 May: Ex-rights

13 May to 21 May: Rights and MCBs are being traded on the bourse

28 May: If you still own the Rights or MCBs (as original SIA shareholders who are entitled to it or if you purchase on the open market), this will be the last day for subscription. You can pay for your rights through the ATM if your SIA shares are held under your own CDP or pay it through your custodian broker account.

8 June: Rights share will start trading (if you have subscribe to your rights by paying S$3/rights, you will now have additional SIA shares)

9 June: If you have subscribe to your Rights MCBs at S$1/MCB, your rights will be converted into bonds which are also traded.

CONCLUSION
This has really been an eye opener and frankly a development which i did not expect.

SIA’s market cap has just appreciated by 26% overnight!

For readers who have more insights pertaining to this “unique” situation, do feel free to share your thoughts here.

Once again, this article is a guest post and was originally posted on Royston_Tans profile on InvestingNote. 

Become a part of our community and also see what other investors are saying about the current market right now: (click on the view now button)

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So what should investors be doing right now? Hold cash? Buy more? Or wait for it to bottom?

So what should investors be doing right now? Hold cash? Buy more? Or wait for it to bottom?

We’ve been getting a lot of questions from our community members lately but the questions more of less narrow down into one thing on each investor’s mind: So what should they be doing right now? Hold cash? Buy more? Or wait for it to bottom?

Truth is, nobody has a crystal ball that can foresee the future.

The more important question is, what we should be doing to improve our investing acumen & skills, so that we have the higher odds of earning profit from stocks even in a recession.

There’s really no better time to learn and pick up some investing skills & strategies since circuit breaker measures has most of us working from home until 1 June.

To help you with this, we’re introducing one of the best-selling online courses available on our marketplace, where you will learn How to Discover Giant Stocks with Value Investing Strategies.

Veteran investor and educator, Dr. Tee will explain, breakdown all the strategies and reveal his 11 critical FA criteria that he always uses to identify giant stocks, in a simple and easy to understand way. He will also demonstrate how exactly to screen good stocks globally.

This is the online video course suitable for both beginners to intermediate investors to get a sense of the different strategies and how to pick stocks to build a stronger portfolio – with updated course content spanning 7 hours over 9 learning modules!

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Learning Points:
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– Income Statement
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– Selection Criteria for Growth Stocks, Undervalue Stocks & Dividend Stocks
– Sample over 100 Global Giant Stocks with Dr Tee personal reviews and analysis for 8 stock exchanges in Singapore, US (NYSE & NASDAQ), Hong Kong, Malaysia, Indonesia, Australia & Thailand
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The instructor for this online course is Dr. Tee Tong Yan, who holds a PhD specialized in computational simulation.

Dr Tee Tong Yan holds a PhD specialized in computational simulation. He possesses over 20 years of trading/investing experience with in-depth knowledge in stocks and various major investment markets. He was a corporate Vice President, now the founder of a consulting firm. He has achieved financial freedom, spending most of his free time in life mission to educate the public towards the right path of investing.

Dr Tee is the founder of www.ein55.com, the investing blog with applications of Ein55 Styles of investing, sharing his experience extensively with over 1000 investment articles, 2 eBooks and over 500 investment courses using LOFTP (Level, Optimism, Fundamental, Technical, Personal Analysis) Strategies. He is a well sought after speaker in major trading firms and various investing seminars.

Dr Tee has trained over 30,000 students (4-hr stock investment course) and over 3000 graduates (6-day comprehensive course).

The online course is now available both in English and Chinese (separate purchase). Each version has life-time access of course content spanning 7 hours over 9 learning modules, for just $25!

Also, get free access to Dr. Tee’s private group here where he does frequent sharing.


InvestingNote is the first and largest social network for investors in Singapore. Find out more about us here.

Download our free app here:

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Also, join our telegram channel here: t.me/investingnoteofficial

We’re here to keep you in touch with the latest investing & stock-related news, happenings and updates!

Investing Workshop: How to Find and Evaluate Value-Growth Stocks

Investing Workshop: How to Find and Evaluate Value-Growth Stocks

We’re having an upcoming workshop next week on How to Find and Evaluate Value-Growth Stocks.

a-gathering-seminar-series-3

Join James Yeo (SmallCapAsia), one of our leading veteran community members and financial blogger as he offers his take and style on investing to both novice and seasoned investors alike.

**Use promo code: FIVEOFF to enjoy $5 OFF!

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Also: Did you know that Warren Buffett made 99% of his fortune after his 50th birthday?

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350% in 7 trading days (Guest Post)

350% in 7 trading days (Guest Post)

Since the time when I mentioned about Y-Ventures last week, it had multiplied by 350%. It was about 7 trading days since it hit the bottom at 3.8 cents on 31 March and 1 April 2019. I had mentioned in the article that it probably worth a punt on the stock.

This post was originally posted here. The writer, Brennen Pak is a veteran community member and blogger on InvestingNote, with username known as Brennen Pak, with more than 3000+ followers.

Y Ventures

Y Ventures

Given that it is a penny stock, the queue in the buy column at that time was very low at 10,000 to 20,000 shares. So, it meant that you could key to buy at a few bits lower than the trading price and, still, somebody was willing to sell the stock to you. However, when one were to look at the the transaction volume, it was another story. It was comparatively huge, perhaps 1 to 2 million shares showing the market was full of spot sellers willing to short the stock for any ready buyer. For the past one year, the share price has been beaten down and was close to 5% of the peak value by end March/early April. This could be one of the best chance to buy the stock at fire-sale price. It can only happen when the market thinks that the company is on the brink of bankruptcy or is widely expecting a rights issue. The company was listed on the stock exchange fairly recently, of less than 2 years and the stock price has been affected by the fallen crypto-currency joint venture and the accounting fiasco that it experienced last year.

With the quantity of shares issued at 200 million, it is possible to buy 0.1% of the company with only $8,000 at the share price of 4 cents. (The pre-IPO share quantity was 35 million from which about $7m was raised.) It means that at 4 cents, it is below the pre-IPO price valued at 5 cents. In effect, it is worth the risk to take the plunge. At most, if the company did go bust (touch wood), I would lost a few thousand dollars. The potential upside should be higher than the downside.

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Genting Singapore – My Thoughts On The IR Expansion Plan (Guest Post)

Genting Singapore – My Thoughts On The IR Expansion Plan (Guest Post)

This is a follow up from the previous article on Genting which I’ve written not too long ago. You can view them here if you have not done so.

The big news on Genting is finally out of the bag which we’ve been waiting for sometime.

 

This post was originally posted here. The writer, Brian Halim is a veteran community member and blogger on InvestingNote, with username known as 3Fs, with more than 1000+ followers.

Redevelopment of RWS Expansion

Resort World Sentosa Pte Ltd, a wholly owned subsidiary of Genting Singapore Ltd, has been granted approval for extension of their Integrated Resort over the next 5 years. This will see the existing IR Property expanded with approximately 50% of new gross floor area, adding 164,000 square metres of GFA of leisure and entertainment space. Development and enhancement of the integrated resorts will also include:

  • Expansion of Universal Studios Singapore, with 2 new highly themed and immersive environment – Minion Park and Super Nintendo World
  • Expansion of the S.E.A Aquarium to be re-branded as “Singapore Oceanarium”
  • Conversion of the Resorts World Theatre into a new Adventure Dining Playhouse
  • Expansion of in-resort accommodation with up to 1,100 more hotel rooms at a new waterfront lifestyle complex and within the central zone of the RWS
  • Enhanced waterfront promenade to be lined with restaurants and retail outlets
  • Expansion of MICE facilities to bring more events into Singapore
  • Development of Driverless Transport System which will enhance last-mile connectivity to RWS attractions

 

The development of the IR expansion will involve the intensification of land and a related grant of leasehold interest and license from SDC.

The redevelopment is expected to cost Genting approximately $4.5b over the next 5 years, and will be funded by internal working capitals and/or borrowings. 

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