Ah Lim's Kopi Chat Blog Post 2 - Don't just Hear the Good Stuff

Ah Lim's Kopi Chat is a short blog post that takes me just 5-10 min (time for me to finish a cup of coffee) to write and publish. It could be a rant, investment related or even non-related. In short, it could be anything. Short and simple. That's it.

It's the time of the year again where Reits start to announce their quarterly result. It's also window dressing time for those companies not performing so well to think what good news they could highlight to shareholders. 1 good example is improved earnings compared to previous quarter. They could use it as a title e.g "Distributable income grew by x%" in their earnings report. However the improved earnings could be at the expense of increase in unitholders e.g rights issue. Don't just look at the size of the pie. Look at how many people are going to share the pie. 

Don't just hear the good stuff. Check the numbers.

My Recent Purchase's Share Price just went Down today. :(

If you have read the earlier post about my April's purchase (link here), you would know I just bought Singtel's shares last week at $3.87. As of today, it is down to $3.82 (-1.55%). Alamak, Simidaiji (Oh dear, what happen)?

I quickly check for possible Singtel's announcement that could trigger the price drop. There's none. Next I went to Investing Note forum where the stock experts (武林高手) gather and give stock guidance and coverage. Within 1 minute, I got my answer. TPG is the culprit!

Next, I googled for TPG news. From what I have found, TPG is planning to build their own mobile network in Australia. It is currently operating as a Mobile Virtual Network Operator (MVNO) and leasing mobile network resources from Vodafone in Australia. They have successfully bid for 2 x 10 MHz spectrum for $1.3B. Telstra, the largest mobile operator in Australia's share price went down by 6% at market open! Optus which is Singtel's subsidiary and second largest operator in Australia did not secure any spectrum during this bidding war. Source: here

My Thoughts On TPG

From what I understand, TPG does not have the experience of building and maintaining a mobile network. They will sure offer high salaries to recruit expertise in these areas. They need to invest a lot in spectrum bidding, mobile infrastructure and skilled expertise. So how low can their subscription plan go in order to compete with the existing Telcos? For mobile subscribers who need reliable network coverage for work and leisure, would they jump ship to TPG? Take note TPG can only operate on 4G spectrum so if the network coverage is poor in that area, the phone signal will not switch to 3G. Just no network coverage. If it's 4G core network goes down, any redundancy? Do they have more cash to burn for 5G mobile network? I wander how's Circles.Life doing. It is riding on M1's 4G network so at least there is some sort of quality assurance.

My Thoughts on Singtel

Back to Singtel. I took a look at Singtel's revenue from it's subsidiary, Optus. It has been going downhill. The impact from TPG could made a further dent in it's earnings in a few years time. I hope the company has some strategies to counteract moving forward.

Would I load up on Singtel? The price will need to go lower to entice me. Even if the price drops to $3.70, the dividend yield would be around 4.73% which is not a big jump to my current yield. I would wait for the analysts to give their expert views on Singtel before making any decision on my next purchase price. 😛

SREITs Summary 11.4.2017 - Positive Day for all Sectors!

Today's a Green day for SReits! Perhaps it's due to earning season around the corner.

Let's zoom into Healthcare and Retail sectors.

Sea of Green! I Like!

Ok lar. Here's more. Commercial, Industrial and Hospitality Sectors.

                      Mapletree Logistics Trust is missing in my list. Will add it soon.

Ah Lim's Kopi Chat Blog Post 1 - Ascott Reit's Rights Issue Result is Out!

Ah Lim's Kopi Chat is a short blog post that takes me just 5-10 min (time for me to finish a cup of coffee) to write and publish. It could be a rant, investment related or even non-related. In short, it could be anything. Short and simple. That's it.

I logged into my savings account this morning to check how much refund I got back from Ascott Reit's Rights Issue. Slightly disappointed I didn't get as much excess units I would like to have. I blogged about the Rights Issue in earlier posts (link here).Would create another blog post when I receive my cdp statement. Huat ar!

Both StarHub and M1 are holding their AGM tomorrow at Suntec Singapore Convention & Exhibition Centre. StarHub's meeting is 10 am whereas M1's meeting is 230 pm. M1 will not offer any bento food and voucher from the coming AGM onwards. No more A Good Meal (AGM) for shareholders? At least free coffee? 😛

SREITs Summary 10.4.2017 - Sea of Red Day but Earning Season is back!

It's another sea of red day for Reits. There are 5 counters with positive result today. They are as follows:

Starhill Global Reit(+0.65%)
Mapletree GCC Trust (+0.49%)
Capitaland Commercial Trust (+0.32%)
Keppel Reit (+0.48%)
IReit Global (+1.36%)

On the bright side, earning season is back! SPH Reit announces it's second quarter result today. DPU is 1.40 cents which is the same as 2016's second quarter result. Not vested though.

Compared to last year's second quarter, I am missing the distribution from Sabana and Suntec Reit this year. For this year, I am looking forward to results from Starhill Global, Cache Logistic (20th April), Frasers Commercial Trust (21st April AM), Soilbuild Business Reit (12th April), Frasers Centrepoint Trust (25th April AM) and Mapletree GCCT (26th April). Hopefully results would be positive.😟 May the Huat be with us!

My First Purchase for April...And The Rationale behind it.

I did my purchase for April on Friday. I bought 2000 shares of SingTel at $3.87. I currently owned 3000 SingTel shares under my CPF Investment Portfolio. My previous purchase price was $3.77.
Wah...averaging up. When SingTel was trading above $4 recently, I had keyed in my Interest Price in my Excel Spreadsheet as $3.95 but I didn't buy when the price was breached. Heng ah.

Next...The Big Question..Why did I buy SingTel?

Dividend
The dividend payout ratio for the last few years is within the 70-73% range. M1's last 2 years payout ratio is 95-99% range while StarHub's last 5 years is 90-101% range. Ouch! In my opinion, SingTel has the capability to maintain and grow it's current dividend compared to the other 2 telcos. Assume the dividend is maintained at 17.5 cents, based on my purchase price of $3.87, my dividend yield would be 4.52%. But wait, SingTel shareholders may receive special dividend with the upcoming Netlink Trust IPO. Don't take my word for it. Check out the source here. On a side note,  MM2 Asia just launches Unusual IPO this week. MM2's share price was up by 9% on Friday! I can't say it's due to the IPO but there's no special announcement from MM2 Asia that could explain the 9% jump in share price. What an unusual move! Hopefully, NetLink Trust IPO could give a boost to SingTel's share price.

4th Telco Impact
The upcoming 4th Telco would have the least impact on SingTel. According to the 2016 Annual Report, over 70% of their earnings is from overseas operations.

Market Cap
If we compare the second largest telco StarHub against SingTel, the market cap of StarHub is $4.9B vs SingTel's $63.3B. I am buying shares of a much larger company with overseas business. The closing price of StarHub was $2.84 on 7-4-2017. Sounds like a good deal. I like.😀

Who's been Buying/Selling?
I also like to check who's been buying and selling the company shares recently before I trade. The fact that CEO and Director of the company has been buying the company shares certainly give confidence to investors about the company.

Using Spiking app, Temaseks purchase in Nov was $4.163. I am undercutting Temasek. 😀

In contrast, M1's CEO has been selling her company shares in recent years. I am an M1 shareholder and I am unhappy about it. What kind of signal is she sending to investors?

Karen ah Karen, this year need to rebalance stock portfolio or not?

Analysts' Forecast 

I used the app My SGX to check on analysts' forecast for SingTel.

 It's a BUY according to analysts from OCBC and UOB KayHian

From the site markets.ft, huge upside potential

In my opinion, SingTel is a company that would still be around for the next 10 years. It is a company that I could invest for long-term without losing sleep. I am prepared to accumulate on further price weakness. 

With this single purchase, I have clocked the higher interest rate for my DBS Multiplier account in April. I blogged about this account in this Post. Buy shares and earn interest at the same time. Shiok ah! 😁

Is this the Best Trading Account now? (Add-on to Previous Post)

To add on to my earlier post (link here), the shares bought using DBS Vickers account would still be held in our own CDP account even though we are enjoying the lower commission charges. This is unlike some other brokerages where the shares are held in some custodian account. In this case, the brokerage firm holds the shares on your behalf. No thanks. If you need to sell your shares, you will need to sell through the same firm where you bought the shares from. If the platform is down when you need to sell, good luck. For shares held in CDP account, we can use another brokerage account to sell our shares if 1 account's platform has issues. The custodian firm may also raise the commission charges next time and you have no choice but to sell through them. I think there's a choice to transfer to CDP account but it could also incur additional charges. The company that you bought the shares would not invite you to attend their meetings and send you their annual reports.

For DBS Multiplier account, the higher interest rate earned on the amount inside this account would be credited within 7 working days.

Code ATINT is the normal interest rate equivalent to savings account.

From now till 30th June 2017, DBS Vickers is offering free access to SGX Market Depth. This is an SGX initiative so other brokerages would probably also offer this feature. I have not checked it out myself though.

DBS Vickers Market Depth

I am not paid by DBS Vickers for blogging about their promo. I only earn the monthly interests that I am entitled to. 😀