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A Summary of Mapletree Logistics Trust’s EGM on 23 November 2020 (guest post)

A Summary of Mapletree Logistics Trust’s EGM on 23 November 2020 (guest post)

Blue chip logistics REIT Mapletree Logistics Trust (SGX:M44U) held its extraordinary general meeting (EGM) yesterday afternoon to seek unitholders’ approval on the proposed acquisition of 22 properties in China, along with 1 property in Malaysia as well as in Vietnam. Approval was also sought for its proposed issue of new units of the REIT as partial consideration for its China acquisitions, and also for the proposed whitewash resolution.

 

An Analysis of Mapletree Logistics Trust

This post was originally posted here. The writer, Lim Jun Yuan is a veteran community member and blogger on InvestingNote, with a username known as @ljunyuan and has 1442 followers.

Due to the safe distancing measures imposed by the Singapore government (due to the ongoing Covid-19 pandemic), the EGM was held in a hybrid mode – both online as well as offline (limited spaces available.) I have opted to attend the online version of the meeting as a unitholder and in this post, you’ll find a key summary of it, which I’ve compiled for the benefit of those who weren’t able to attend…

Presentation by Chief Executive Officer, Ms Ng Kiat

  • The following are details of the acquisition:
    • Acquisition of the remaining 50.0% stake in 15 warehouses in China, a 100.0% stake in 7 warehouses in China, 1 warehouse in Malaysia and also in Vietnam
  • Aggregate Agreed Property Value: S$1,509.2 million
  • Implied Net Property Income yield: ~5.2%
  • Net Lettable Area: 1,223,660 sqm
  • Committed occupancy rate: 94.7%
  • Weighted average lease expiry: 2.3 years
  • CEO of Mapletree Logistics Trust, Ms Ng Kiat, shared that the logistics industry have benefited from the ongoing Covid-19 pandemic, where demand for Grade A warehouse space have increased as a result of an increase in adoption of e-commerce.
  • She explained that 3 geographical locations which the REIT will be acquiring properties in (China, Malaysia, and Vietnam) have seen their GDPs staying resilient despite the pandemic. Also, these countries are also projected to see a strong growth in their urban population in the years ahead (which will lead to an increase in demand for modern logistics space.) Coupled with the limited supply of Grade A warehouse space in the 3 countries, Ms Ng added that represents an opportunity for the REIT, being a leading provider of quality logistics space in Asia-Pacific, to come in and fill the market gap.
  • On top of that, Ms Ng also shared that the warehouses’ locations are strategically located near local consumption hubs in under an hour, which is an important consideration for tenants in e-commerce businesses. Not just that, post-acquisition, the REIT will see new top 10 tenants (by percentage of gross revenue) in JD.com… (which will contribute 2.4%) and Cainiao (which will contribute 2.1%.)

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OCBC – Summary of Q3 and 9M FY2020 Business Update (Guest Post)

OCBC – Summary of Q3 and 9M FY2020 Business Update (Guest Post)

How is OCBC faring this third quarter? Let’s find out.

Salaries at OCBC in Singapore: what you'll really get paid | eFinancialCareers

This post was originally posted here. The writer, Lim Jun Yuan is a veteran community member and blogger on InvestingNote, with a username known as @ljunyuan and has 1433 followers.

Besides DBS (you can check out my summary of its latest Q3 and 9M FY2020 results here), Overseas-Chinese Banking Corporation or OCBC (SGX:O39) also provided its business updates for the third quarter as well as for the first 9 months of the financial year 2020 (ended 30 September 2020) early this morning before trading hours.

As a shareholder of the longest established bank in Singapore, I have studied the related documents and in this post, you will find a summary of the bank’s latest financial statistics, key financial ratios, along with my personal thoughts to share.

Let’s get started…

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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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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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Will Genting Singapore Be Affected By The New Integrated Resorts’ Expansion?

Will Genting Singapore Be Affected By The New Integrated Resorts’ Expansion?

In a joint statement on Wednesday evening (April 3), the operators of the two integrated resorts (IR) will pump in $9 billion to build world-class attractions, which will include a fourth tower to the iconic Marina Bay Sands (MBS) development, three new hotels, a 15,000-seat entertainment arena and extensions to Universal Studios Singapore (USS).

Image result for mbs singapore casino

Image result for rws casino

The Ministry of Trade and Industry said that the $9 billion investment is almost two-thirds of the IRs’ initial investment of about $15 billion in 2006.

According to the Straits Times, MBS and Resorts World Sentosa (RWS) will be allowed to expand their casino operations, with their exclusive rights to run a casino here extended until the end of 2030.

However, their gambling revenue will be further taxed by the Government. This means that casino levies on Singapore residents will be increased. The daily levy will go up from $100 to $150 from Thursday (April 4), while the annual levy is being increased from $2,000 to $3,000.

Genting Singapore, which has its key business vested in RWS, has inadvertently been drawn into the limelight.

Genting Singapore has announced the plans to invest $4.5 billion to renew and refresh Resorts World Sentosa (RWS).

In view of this investment, the government has agreed to extend the exclusivity period for the two casinos at RWS and Marina Bay Sands (MBS) to end-2030. MBS, on the other hand, also committed to a $4.5 billion investment to expand its property.

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Financial questions regarding Hyflux debts? (Guest Post)

Financial questions regarding Hyflux debts? (Guest Post)

Just a few days ago, the headlines for the recent Hyflux Saga read: “Taxpayers’ money cannot be used to help investors recoup their losses, says minister,”.

https_%2f%2fs3-ap-northeast-1-amazonaws-com%2fpsh-ex-ftnikkei-3937bb4%2fimages%2f0%2f2%2f9%2f7%2f2097920-7-eng-gb%2f0223n_hyflux

There was also a protest by disgruntled Hyflux investors at Hong Lim Park over the weekend.

Credits: Straits Times
Credits: Straits Times
Credits: Straits Times
Credits: Straits Times

I chanced upon the article on Hyflux story so far in BT Weekend, 23-24 March 2019. Given that it had listed the debts raised in the past years, I decided to compile them into a timeline in hope to have a better picture of Hyflux’s current predicament. What really puzzled me was the perpetual raised in 2016. It was stated that the perpetual of $500m was raised to redeem the two tranches of perpetuals raised for institutional and accredited investors. The first was $300m perpetual @5.75% raised in January 2014 and the second was $175m perpetual @4.8% raised in July 2014.

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.

 

Just purely from a financial management point of view, why is Hyflux willing to raise perpetual at 6% to redeem perpetuals at lower coupon rates. After all, the 4.8% and the 5.75% perpetuals were hardly 2-year old 3-year old respectively when they were redeemed. Why was Hyflux so anxious to redeem those perpetual bonds when the perpetuals are still so recent by any standards.

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Top Ten Attributes of Great Fundamental Investors

Top Ten Attributes of Great Fundamental Investors

The Top Ten Attributes of Great Fundamental Investors by Michael J. Mauboussin.

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The following is an excerpt of the full report:

“Perhaps the single greatest error in the investment business is a failure to distinguish between the knowledge of a company’s fundamentals and the expectations implied by the market price.”

The world of investing and business has seen a great deal of change in the past 30 years.

This report shares thoughts on the ten attributes of great fundamental investors. Accounting is the language of business and you need to understand it to appreciate economic value and to assess competitive positioning. Investors face a slew of psychological challenges.

Perhaps the most difficult is updating beliefs when new information arrives. Position sizing and portfolio construction still do not get the attention they warrant. The substantial shift from active to passive management has profound implications for the investment industry.

I started on Wall Street 30 years ago today…”

Read the full report [PDF] here.

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How Corporate Actions Affect Stock Prices More Than Anything Else

How Corporate Actions Affect Stock Prices More Than Anything Else

But first, what exactly is a corporate action? And why does it matter?

According to Investopedia,

A corporate action is any activity that brings material change to an organization and impacts its stakeholders, including shareholders, both common and preferred, as well as bondholders.

https_%2f%2fs3-ap-northeast-1-amazonaws-com%2fpsh-ex-ftnikkei-3937bb4%2fimages%2f0%2f2%2f9%2f7%2f2097920-7-eng-gb%2f0223n_hyfluxPhoto: Hyflux AGM

Corporate actions includes:

  • Stock Split and reverse split (consolidation)
  • Spin-Offs
  • Dividend Payouts
  • Mergers and Acquisitions
  • Bonus Issue
  • Rights Issue
  • Share buybacks
  • IPO

Corporate actions are important source of indicators for the retail investors to monitor the company’s direction and effectively, the share price. There are some rules that investors and traders have to take note of, according to Li Guang Sheng (a top tier remisier and veteran community member):

  • Officers and employees of the Company two weeks before the announcement of the Company’s financial results for the first three quarters and one month prior to the announcement of the full year results (“Black-out Period”). Usually there will be internal memo to notify and remind all Directors, officers and employees of the Company on compliance with the best practices on dealing in securities pursuant to Listing Rule 1207(19)(c), in not dealing with the Company’s securities during the Black-out Period. The Company, its Directors and officers should be aware that the Company should not deal in its own securities (including undertaking any share repurchases) during the Black-out Period. Therefore, the Company would wish to complied with the Listing Rule 1207(19)(c) and not run foul with SGX.
  • If the players of the company shares belong to insiders, then during this period there may be less buyers and harder for you to run or sell your shares. Also if the company is undergoing share buyback and supporting the share prices through daily share buy back, the price may tank during the 2 weeks of no buying from the company or 4 weeks if it is the full year listing result period. So for those who trade heavy, be prepared to reduce your position 2 weeks prior to quarter result announcement due to less liquidity.
  • Also take note on listed company share buy back rules,
    • a) on-market purchases should not exceed 5% above the average closing market prices of the share over the last five market days;
    • b) details of purchases to be released to the SGX-ST, if it is non-market purchases, by 9am on the next market day, or, if an off-market acquisition, by 9am on the second market day after the close of acceptance.

Watch this quick video of Guang Sheng where he explains why corporate actions are so important:

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