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6 Key Points About iFAST (after losing bid for digital banking licence) (guest post)

6 Key Points About iFAST (after losing bid for digital banking licence) (guest post)

On Friday evening, MAS announced that it will award full digital banking licences to Internet firm Sea and the Grab-Singtel consortium, as well as DWB licences to China’s Ant Group and a consortium led by Greenland Financial. The iFast’s consortium, with China’s Yillion Group and Hande Group, fails bid for digital wholesale bank (DWB) licence and its share price is down 30% today.

Singapore to have 4 digital banks, with Grab-Singtel and Sea getting digital full bank licences, Banking News & Top Stories - The Straits Times
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This post was originally posted here. The writer, SweeSwee is a veteran community member on InvestingNote, with a username known as @Sweeswee and has 300+ followers.

 

1. To say the least, I am very disappointed that iFast did not get the WDB license.

2. While I understand that Ant was a firm favorite and they won, I don’t quite understand why only 2 WDB licenses were awarded when they had planned for up to 3. Did iFast fail to even meet the WDB requirements? I thought its unlikely since Lim CC would be experienced enough to satisfy all the requirements before bidding. Maybe MAS wants the company to already have at least S$100m in cash now? iFast’s thinking was that it could easily raise S$100m from consortium partners and the market if it wins.

Also, I scratch my head why the consortium led by Greenland could win. Greenland’s parent company is among the biggest property developers in China but it is also heavily indebted, highly geared. I believe its financial arm also does not have much track record in the finance business, especially in South East Asia.

Why give it to Greenland? Why MAS does not award to one of the biggest, best run, most promising home-grown fintech companies in Singapore?

3. To be fair to iFast, part of the reasons why its share price soared in the last few months was because its existing businesses have done very well. The business units continued to register strong growth and higher profits throughout the Covid-19 pandemic. AUA continues to rise to record levels quarter after quarter.

Indeed, it also just won licenses to operate its platform for stocks trading in Malaysia and to operate as a private fund manager in China. Both these new business lines will commence operations in Q1 2021 and start to bring more revenues for FY21.

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3 Dividend Stocks With Quarterly Payouts (Guest Post)

3 Dividend Stocks With Quarterly Payouts (Guest Post)

What are some dividend stocks ideas?

Top 10 Highest Monthly Dividend Stocks to Invest In

This post was originally posted here. The writer, James Yeo is a veteran community member and blogger on InvestingNote, with a username known as @Smallcapasia and has 909 followers.

We have researched hard and have found 3 dividend stocks that pay dividends every quarter that you should know. If anything, the pandemic has taught us lots of things not only in terms of health but also in terms of finances. A conventional 6 months of expenses in emergency savings are not working out anymore.

Many unfortunate people are facing retrenchment or pay cut since March, and that has been more than 6 months ago.

Monitoring our cash flow is extremely important for retail investors like us. Receiving consistent and high-frequency dividends are one way to tide us through this tough time.

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Liquidity and Network Flywheel Causes Multiplier Effect On Business and Shares Valuation (Guest Post)

Liquidity and Network Flywheel Causes Multiplier Effect On Business and Shares Valuation (Guest Post)

The liquidity and Network Flywheel effect is key to unlock business growth and expansion.The Data Flywheel: How Enlightened Self-Interest Drives Data Network Effects

This post was originally posted here. The writer, Brian Halim is a veteran community member and blogger on InvestingNote, with a username known as @3Fs and has 2259 followers.

One of the most important elements of a tech platform business model is the ability to create multiple expansion network effects, using the Network Flywheel concept.

A network effect is often described in economics and businesses as one of the key pillars of success as it depicts a contagion behavior of one additional usage of products or services that will have on the next users. This creates a long-lasting effect and an increasing value of a customer’s lifetime value, which is one of the key unit economic metrics for a business.

The Internet is clearly the easiest example of the network effect, where everything in our daily activities flows through the web channel.

Let’s take a look in more detail by using a private ride-hailing network, Grab as an example.

Grab started out as a ride-hailing platform where it aims to create a large pool network of supply and demand in each market so they can have what is called the network liquidity flywheel as depicted in the graph I created above.

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3 Companies With Insiders Buying Shares Recently (Guest Post)

3 Companies With Insiders Buying Shares Recently (Guest Post)

Occasionally, I would like to look at insider or share buybacks to see if I am lucky to spot any hidden gems. In fact, this is also one of the more commonly used strategies by investors. Why is that so?

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This post was originally posted here. The writer, James Yeo is a veteran community member and blogger on InvestingNote, with username known as Smallcapasia and has 864 followers.

As the legendary Fund manager Peter Lynch once said, “Insiders might sell their shares for any number of reasons, but they buy them for only one: they think the price will rise.”

In short, a company’s management would only purchase the stock or initiate share buybacks when they perceive that the stock is undervalued. Hence, it makes sense for investors (like You and Me) to do some further research to see if the stock is really a bargain per se.

With these in mind, let’s zoom into 3 interesting companies I’ve cherry picked which have seen insiders buy shares recently.

1. iFAST Corporation Ltd

 

iFAST is present in Hong Kong, Malaysia, China and India. The Group offers access to investment products including unit trusts, bonds and Singapore Government Securities, stocks and exchange traded funds, and insurance products.

It also provides services such as online discretionary portfolio management services, research and investment seminars, financial technology solutions, and investment administration and transaction services to financial advisory firms, financial institutions, banks, multinational companies, as well as retail and high net worth investors in Asia.

On 1st June 2020, its CEO and Chairman Lim Chung Chun purchased 124,000 shares through market transactions. Shares were bought at approximately $1.10 per share. After the acquisition, it increased his percentage of shares held to 22.3%.

As of the latest Q1 2020 report, iFAST’s revenue increased by 41.5% to $38.5 million. Net profit increased by a drastic 132.1% to $3.6 million. Free cash flow was at $2.8 million. Cash balance is at $21 million, which is enough for it to maintain its operations.

iFAST last closed at $1.10, which values it at a P/E ratio of 26.2 and dividend yield of 2.86%.

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