Browsed by
Tag: stock

EC World REIT– Key Highlights of Q3& 9M FY2020 Results & My Thoughts (Guest Post)

EC World REIT– Key Highlights of Q3& 9M FY2020 Results & My Thoughts (Guest Post)

How is EC World REIT performing?

EC World Reit taps market for $630m, Companies & Markets News & Top Stories - The Straits Times

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.

The following table is the REIT’s distribution per unit for the current quarter under review, compared to the same period last year:

Despite the Singapore Exchange allowing companies to switch to reporting its full financial results on a half-yearly basis, EC World REIT (SGX:BWCU) at the moment is still continuing to report its full financial results on a quarterly basis, along with declaring a distribution payout to its unitholders once every three months as well (however, that could change in the future.)

Aftermarket hours yesterday (09 November 2020), the China-based logistics REIT reported its financial results for the third quarter, as well as for the first nine-months of the financial year 2020 (ended 30 September 2020.)

As a unitholder of the REIT, I have studied its results and in this post, you will find key aspects about its latest financial results, debt and portfolio occupancy profile, as well as its distribution payouts, along with my personal thoughts to share.

Let’s begin…

Read More Read More

The Clorox Company (NYSE:CLX) – Does the Company Make a Good Addition to Your Investment Portfolio? (Guest Post)

The Clorox Company (NYSE:CLX) – Does the Company Make a Good Addition to Your Investment Portfolio? (Guest Post)

Is The Clorox Company a good addition to your investment portfolio?

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 1408 followers.

NYSE-listed The Clorox Company (NYSE:CLX) has products on the supermarket shelves that clean and disinfect our homes. What with the ongoing Covid-19 pandemic, people have been stepping up their hygiene standards at home so as to protect themselves as well as their loved ones from being part of the Covid-19 statistic.

Apart from Clorox, some of the brands you should be familiar with (which is also from the company) include Glad’s range of plastic food wraps and food bags (you can check out their range of products on the website of supermarket retailers Cold Storage and Giant), Liquid-Plumr’s range of decloggers (again, you can check out the range of products sold in Singapore on the website of Cold Storage and Giant), as well as Burt’s Bees range of skincare products (you can check out their range of products on Sephora Singapore’s website here.)

In my writeup about The Clorox Company today, I will be sharing with you a bit more about the company’s other businesses, followed by looking at its historical financial performance, debt profile, and dividend payout to its shareholders over the past 6 financial years (as the company has a financial year-end every 30 June, I will be looking at its financial results between FY2014/15 and FY2019/20.) On top of that, I will also be sharing whether or not at its current traded price, is the company considered ‘cheap’ or ‘expensive’ based on its current vs. its historical valuations.

Let’s get started…

Read More Read More

MM2 Asia Stock Review – Potential Beneficiary from Economy Reopening? (Guest Post)

MM2 Asia Stock Review – Potential Beneficiary from Economy Reopening? (Guest Post)

Will MM2 Asia benefit from the reopening of the economy?

mm2 Asia to acquire Cathay Cineplexes for $230m after failed bid for Golden Village, Companies & Markets News & Top Stories - The Straits Times

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 905 followers.

MM2 Asia is benefiting from the latest announcement of the Government’s green light to allow more patrons in cinemas. On 23 September 2020, the government announced that from Oct 1, large cinema halls with more than 300 seats will be allowed to admit up to 150 patrons in three zones of 50 patrons each.

On the other hand, smaller cinema halls will also be allowed to increase their capacity to 50 percent of their original operating capacity or maintain the current limit of up to 50 patrons per hall, subject to safe management measures.

For Cathay Cineplexes’ parent company – MM2 Asia, it would have breathed a sigh of relief that the worst is probably over as they can welcome more customers.

But that being said, the Cathay cinema is just 1 division of MM2 Asia as the latter owns many more integrated businesses across the content, immersive media, event, and concert industries across Asia.

Mm2 Asia Profile

mm2 Asia is a leading producer of films and TV/online content in Asia. As a producer, mm2 provides services over the entire film-making process – from financing and production to marketing and distribution, and thus has diversified revenue streams.

Read More Read More

SIA Rights Issue: Debunking The Complication Behind The Math (Guest Post)

SIA Rights Issue: Debunking The Complication Behind The Math (Guest Post)

Most of you would probably have been aware of Singapore Airlines’ (SIA) plight and the need to do a massive fund-raising exercise, fully-backed by Temasek. This means that if Singaporeans are not willing to support our national carrier by subscribing to those new shares, Temasek will come in to backstop 100% of the issue. SIA looks to raise a total amount of S$15bn (SIA Rights), through a combination of S$5.3bn in Rights Shares issuance and S$9.7bn via Rights mandatory convertible bonds or MCB for short.

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 and has 17 followers.

SIA reassures cabin crew on medical leave system, Singapore News ...

SIA RIGHTS ISSUE: DEBUNKING THE COMPLICATION BEHIND THE MATHS

By now, most of you would probably have been aware of Singapore Airlines’ (SIA) plight and the need to do a massive fund-raising exercise, fully-backed by Temasek. This means that if Singaporeans are not willing to support our national carrier by subscribing to those new shares, Temasek will come in to backstop 100% of the issue.

SIA looks to raise a total amount of S$15bn (SIA Rights), through a combination of S$5.3bn in Rights Shares issuance and S$9.7bn via Rights mandatory convertible bonds or MCB for short.

S$15bn looks like a HUGE amount of equity to be raised, particularly when one compares with SIA’s key competitor Qantas which, a few days prior to SIA’s announcement, highlighted that it has managed to secure ONLY A$1.05bn in collateralized (against its fleet of 7 Boeing 787 aircraft) debt funding at an interest rate of 2.75%. Qantas share price appreciated by 26%.

Unlike SIA which has been levering up on its balance sheet to make new aircraft purchases, Qantas, on the other hand, has maintained a steady net debt balance of A$3bn over the past 3 years. Comparatively, SIA’s net debt balance has ballooned to S$8bn (including lease liabilities) as at end-2019 as a result of their aggressive fleet renewal plan.

So, Qantas (with a market cap of A$5bn) requires an additional A$1bn to tide over this major aviation crisis (for now perhaps) while SIA (now with a market cap of S$7bn) requires a potential total of S$15bn (plus S$4bn in bridging loan) and one can see the huge disparity in terms of capital management.

With that notion in place, let’s evaluate the two Rights issuance, first the SIA Rights Share followed by the SIA Rights Mandatory Convertible Bonds.

I will then follow up with 4 scenario analysis for a potential SIA shareholder and calculate what might the market value of the SIA Rights Shares and SIA Rights MCBs be worth when they start trading.

They are;

Read More Read More

Thoughts On CK Hutchison Holdings 2019 Results (Guest Post)

Thoughts On CK Hutchison Holdings 2019 Results (Guest Post)

2019 was a pretty challenging year by all standards. Being listed in Hong Kong, investors were concern about the impact of Hong Kong Riots on results. Since they have enough assets in Europe, a region which many believe is declining, they were concern about how Brexit impacts them. The declining in Euro and GBP, trade war between the United States vs China and Europe and also in recent times, it is Covid-19 and the plunge in oil prices will impact them.

This post was originally posted here. The writer, Kyith Ng is a veteran community member and blogger on InvestingNote, with username known as Kyith and has 953 followers.

 

In terms of investments, CK Hutchison (0001.HK…) will probably go down as one of my poorer investments.

I got it at $85.90, $87.65, $81.25, $80.60, $82.90, $76.40, $67.90, $55.45. Based on cost, this is one of my largest position. It may go down as one of my biggest mistakes.

CK Hutchison or CKH for short is the listed flagship company of Li Kar Shing. In 2018, he step down from the company, handing the reins over to his eldest son Victor Li.

Victor Li manages CKH together with the best-paid employee in Hong Kong Canning Fok and Frank SIXT.

CKH this week together with their sister companies CKI, CKA, and Power Assets announced their full-year results.

In terms of key metrics this is how it lines up:

  1. Share price: HK$49.60
  2. Total outstanding shares: 3.8 billion
  3. Total market capitalisation: HK$188.5 billion
  4. Enterprise Value: HK$395.5 billion
  5. Net earnings attributable to shareholders: HK$39.9 billion (2018: HK$39 billion)
  6. Free cash flow: HK$35.7 billion (2018: HK$24.7 billion)
  7. Earnings Yield: 21%
  8. FCF Yield: 18.9%
  9. Dividend per Share: HK$3.17 (2018: HK$3.17)
  10. Prevailing dividend yield: 6.39%
  11. Dividend Payout Ratio: 30%
  12. Net Debt to Asset: 19.3%
  13. EV/EBITDA: 3.53 times
  14. Price / Equity (net of non-controlling interests): 0.40 times.

 

Why a Post on CKH Matters

On paper, you do not wish to hear me talk about one of possibly my big investment failures. But I thought the results are applicable in the context of what we are going through today.

CKH operations happens to be global:

  1. Ports in China, Hong Kong, Belgium, Germany, the Netherlands, UK, Spain, Poland, Sweden, Malaysia, Indonesia, South Korea, Thailand, Pakistan, Thailand, Australia, Egypt, Oman, UAE
  2. Retail Beauty & Health stores through AS Watson, ParknShop, Rossman, Drogas in Albania, Belgium, Czech, Germany, HK, Hungary, Indonesia, Ireland, Latvia, Macau, Malaysia, the Netherlands, Poland, Russia, Singapore, Taiwan, Thailand, UK, Vietnam
  3. Infrastructure through CKI in Australia, Canada, Germany, Hong Kong, Mainland China, The Netherlands, New Zealand, UK, Portugal.
  4. Energy in Canada through Husky Oil
  5. Telecommunications in the UK, Italy, Sweden, Denmark, Austria, Ireland, CKH Networks, Indonesia,

2019 is a pretty challenging year by all standards. Being listed in Hong Kong, investors were concern about the impact of Hong Kong Riots on results. Since they have enough assets in Europe, a region which many believe is declining, they were concern about how Brexit impacts them. The declining Euro and GBP is a concern as well. As they are tapped into so many areas of world trade, investors were concerned about how the trade war between the United States vs China and Europe will impact them.

In recent times, it is Covid-19 and the plunge in oil prices.

There is definitely no escape for CKH. They tried to pillage the world. Now the world will royally fxxk them.

In the results update, we can learn more about how well they navigate these challenging times and how Covid-19 and the oil crisis have been for them.

Here we go.

Read More Read More

3 Important Things You Should Do Before Investing (Guest Post)

3 Important Things You Should Do Before Investing (Guest Post)

You tend to hear horror stories about people going into debt. Others are buried under thousands of dollars of credit card bills. Some are picking up extra jobs and taking out loans left and right. Having a good system to manage your finances is a smart idea if you want to stay out of debt and possibly save for the future. Here is a beginner’s guide to managing your money before investing.

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 821 followers.

 

Image result for working guy with 2 hands on the head

You tend to hear horror stories about people going into debt. Others are buried under thousands of dollars of credit card bills. Some are picking up extra jobs and taking out loans left and right.

Having a good system to manage your finances is a smart idea if you want to stay out of debt and possibly save for the future. Here is a beginner’s guide to managing your money.
1. Set up a Rainy Day Fund

Contrary to popular belief, setting aside is the most #1 important thing you should do as compared to learning how to save or cutting down your debt etc.

This is because a rainy day emergency fund is for unplanned essential expenses, such as a sudden car repair or if you lose your job. The rule of thumb is to have:

Rainy Day Fund: At least 3 to 6 months of your expenses

The easy way to go about it is to just spend an excruciating month tabulating your expenses for the entire month. After that, smoothen out any irregular spike in expenses based on the number of months/years – example spending for staycation or travelling worth $5k should be divided by how many times you do it in a year.

After you build your emergency fund, you may consider building up your savings.

 

Image result for saving budget

 
2. Automate your savings budget

When most people think of a budget, they think of a set of rules. Now, something is telling them what they can and cannot buy.

While this definition or practice is supposedly correct, i find that (from my friends) it rarely works. Its more of a theory thing.

Reason being that people will always spend whatever they have to the last dime and savings will only come by if there’s extra – but there wouldn’t be any!

So instead, we should all practise automation when it comes to our budget – Open a separate savings account and establish a automatic transfer of at least 10% of our take-home income.

Better still – Don’t apply any atm card for that account. Because…

You can’t use what you can’t see!

3. Protection before Earning

Last but not least, it is wise to have enough insurance coverage even before you start investing.

No matter how much you can earn, one illness can rob you of all these riches instantly. Health is always more important than Wealth.

Hence, you have to at least protect your downside (hedging) through insurance before you start to embark on the route to investing.

Conclusion

The first principle of managing your money is to live within your means. Always spend less than what you make and keep to your budget.

Once you have a strong foundation, you will not panic when your investments suddenly turn sour – just like the vicious spread of coronavirus which sent the markets into a tailspin.

Thanks for reading.

Once again, this article is a guest post and was originally posted on Smallcapasias 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)

button_view-now


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

Download our free app here:

apple   android

ARA HTrust – Most Oversold Stock in Singapore with 10% Estimated Dividend Yield (Guest Post)

ARA HTrust – Most Oversold Stock in Singapore with 10% Estimated Dividend Yield (Guest Post)

ARA HTrust comes out to be the most oversold among Singapore listed stocks yesterday with a RSI of 8.2. This is its most oversold level since listing. ARA HTrust has tumbled approximately 22% from an intraday high of US$0.900 to close at US$0.705 yesterday, which is the lowest close since IPO.

This post was originally posted here. The writer, Ernest Lim is a veteran community member and blogger on InvestingNote, with username known as el15 and 400 followers.

Yesterday evening, as I run my stock screening via Bloomberg, ARA HTrust comes out to be the most oversold among Singapore listed stocks yesterday with a RSI of 8.2. This is its most oversold level since listing. ARA HTrust has tumbled approximately 22% from an intraday high of US$0.900 to close at US$0.705 yesterday, which is the lowest close since IPO.

Why does it attract my attention? Read on for more.

 

A) Chart – Selling pressures may ease as oversold pressures escalate

Based on Chart 1 below, ARA HTrust is entrenched in a downtrend. All the exponential moving averages (“EMAs”) are trending lower with death cross formations. However, indicators such as RSI and MACD are near, or at all time oversold levels. For example, RSI closes at 8.2 yesterday, all time low since IPO. At 8.2, this is also extremely low on an absolute basis. Although there is no rule to stipulate that RSI cannot go below 8.2, suffice to say that, on the balance of probabilities, near term downside may be capped as oversold pressures build. In addition, ARA HTrust has been bouncing around US$0.700 and this support level looks good on both chart and absolute basis (typically stocks find support on a round number).

Near term supports: US$0.700 / 0.675 / 0.650

Near term resistances: US$0.735 / 0.745 – 0.750 / 0.775

Chart 1: ARA HTrust has fallen 22% since its record high US$0.900
https://s3-ap-southeast-1.amazonaws.com/investingnote-production-webbucket/attachments/6b3ca741312c1560d88c9727ff14446c19b6bd81.png?1583393464

Source: InvestingNote 5 Mar 2020

B) Analysts are positive with target prices ranging from US$0.95-1.25

Based on Figure 1 below, average analyst target is around $1.10. Analysts estimate that ARA HTrust may distribute US$0.070 – 0.074 / share as dividends in FY20F. If I conservatively use US$0.07 as the estimated dividends per share to be distributed in FY20F, this works out to an estimated dividend yield of around 9.9% given the closing price of US$0.705 yesterday. All in, total potential return amounts to around 66%!

Figure 1: Average analyst target $1.10; total potential return 66%!
https://s3-ap-southeast-1.amazonaws.com/investingnote-production-webbucket/attachments/8957fb0bf1ad21d14b0929d5745c42c3ed0cc0b6.gif?1583393465

Source: Bloomberg 5 Mar 20

C) Other noteworthy points

ARA HTrust has completed the acquisition of its three new Marriott acquisitions on 17 Jan 2020 and this is likely to contribute to their net property income. In addition, ARA HTrust has set up S$800m debt program in Jan 2020. According to KGI’s research report, they cited that ARA HTrust’s management intends to acquire more Marriott or Hilton hotels.

Risks

As with most companies, there are numerous risks that ARA HTrust faces. Just to cite a couple of risk factors (readers can refer to the analyst reports HERE for more risks that ARA HTrust faces)

a) Macro outlook has deteriorated

Given the supply headwinds, compounded by COVID-19 which is likely to have an impact on domestic and overseas travel, the macro outlook for ARA HTrust has deteriorated. It is noteworthy that since news of COVID-19 spreading in countries like South Korea broke out on the weekend of 22–23 Feb, ARA HTrust’s share price has slumped 18% from US$0.860 on 21 Feb to close US$0.705 on 4 Mar 2020. Although part of the decline can be attributed to its weaker than expected results, I think part of the decline may also be attributed to the spread and the fear of COVID-19 worsening in U.S. and overseas resulting in a drop in domestic and overseas travel. If this worsens further, it may have an adverse impact on current and future net property income and subsequently distributions.

b) Illiquidity is an issue

Average 30-day volume for ARA HTrust is merely 320K shares per day. This is an illiquid stock where it is not easy to enter or exit with a meaningful position. Furthermore, it may be subject to large price movements should there be sudden buying or selling interest.

c) Other risks include U.S. tax changes; forex risks etc

Other risks include U.S. tax changes and forex risks as ARA HTrust’s earnings and distributions are denominated in US$.

Conclusion

ARA HTrust captures my attention due to its extremely oversold nature, coupled with an attractive potential capital upside and good dividend yields especially in current low interest rate environment. However, it is noteworthy that its business faces certain headwinds. Illiquidity is also an issue.

Notwithstanding the above, it is noteworthy that I am neither familiar with ARA HTrust’s fundamentals, nor do I have direct access to management (as my main basis is more on its oversold nature). Readers who are interested in ARA HTrust should view ARA HTrust’s announcements on SGX or on their website. Furthermore, you can view the analyst reports HERE.

P.S: I have highlighted to my clients on ARA HTrust past two days where it is trading around US$0.700-0.705. I am vested in this stock for trading purpose.

Thanks for reading.

Once again, this article is a guest post and was originally posted on el15s 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)

button_view-now


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

Download our free app here:

apple   android

My Favourite Stock Contest!

My Favourite Stock Contest!

It is the time of the year where we want you to tell a story about a stock! This is “My Favourite Stock Contest” where you will be able to win attractive prizes just by telling us what is your favourite stock, why do you like so much about it and it must be from either one of these market channels: US, Malaysia and Hong Kong.

For example, if you’ve ever invested in Tesla $TSLA stock and made some good returns, tell us how you did it! If you are looking to invest into growth companies like Beyond Meat $BYND or have been watching $TENCENT(700.HK), tell us why you’re looking and what’s the potential!

Each post must be kept to the word limit of 300 words and a min of 150 words and is subject to one chance of winning with respect to each market.

With regards to the design, you will only be allowed to add in the company logo and stock symbol as part of the add-on and the edited design MUST be attached to your post.

aug-multiple-market-campaign-2

Each post must also start with the sentence “My #favstock is….” followed by the reasons/stories for choosing the particular stock as your favourite.

By the end of the contest, a lucky winner will be selected from each market channel by lucky draw. All the best and let’s start sharing your stories!

Read More Read More

3 Dividend Pitfalls for Dividend Seeking Investors (Guest Post)

3 Dividend Pitfalls for Dividend Seeking Investors (Guest Post)

There is nothing wrong with investing in dividend stocks to generate passive income for your retirement planning. However, it will cause a huge dent in your retirement portfolio if you are investing wrongly. The following are the 3 dividend pitfalls that you have to avoid.

image

This post was originally posted here. The writer, Kenny Loh is a veteran community member and blogger on InvestingNote, with username known as marubozu and 700+ followers.

Read More Read More

FREE Event*: Analyzing Hedge Fund Movements – How to gain advantage by buying BEFORE breakout and BEFORE volume

FREE Event*: Analyzing Hedge Fund Movements – How to gain advantage by buying BEFORE breakout and BEFORE volume

FREE Event*: Analyzing Hedge Fund Movements – How to gain advantage by buying BEFORE breakout and BEFORE volume!

free stock trading event

Join RonaldK in his upcoming workshop to learn more about his ultra-precision timing on buying before a breakout and before big volume which will give you an edge in the stock market.

Key learning points include:
✔ Learn to analyze the readiness of the stock using Time & Sales
✔ Learn to spot the next EXPONENTIAL STOCK using Top 30 Volume
✔ Learn to analyze the interest of Smart Money in a stock effectively using FREE charts available online (no software required)
✔ Learn the mindset of how to turn 4-digit to 5-digit using short-term trading
✔ Learn how to leverage on Capital Gains instead of Dividend Gains when doing investment

✔ And more!

Date: 2nd February, Saturday. 10.30am – 1.30pm

Venue: City Index. GAIN Capital Singapore Pte Ltd. 6 Battery Road #20-01. Singapore, 049909

Cost: Free

button_register-here

Limited seats. First come, first serve basis. Light refreshments will be provided.

→ Sign up here: https://www.eventbrite.sg/e/how-to-gain-ad…

*this event is sponsored by CityIndex Singapore.