Avenues for Raising Funds for Companies with Poor Liquidity

What are the avenues that a company can do to raise funds to pay off current debts? They are as follows:

• Borrow from Banks
• Issues Bonds
• Sell Part of the Business
• Private Placement to Financial Companies
• Shares offering to Institution / Existing Shareholder
• Rights Issues

DISCLAIMER The ideas expressed in this blog should not be used to buy or sell the securities, commodities or assets mentioned. The accuracy or completeness of the information provided cannot be guaranteed. Readers should carry out independent verification of information provided. No warranty whatsoever is given and no liability whatsoever is accepted for any loss howsoever arising whether directly or indirectly as a result of actions taken based on ideas and information found in this blog.

Using CURRENT RATIO in your Google Scanner

Investopedia explains 'Current Ratio'

The ratio is mainly used to give an idea of the company's ability to pay back its short-term liabilities (debt and payables) with its short-term assets (cash, inventory, receivables). The higher the current ratio, the more capable the company is of paying its obligations. A ratio under 1 suggests that the company would be unable to pay off its obligations if they came due at that point. While this shows the company is not in good financial health, it does not necessarily mean that it will go bankrupt - as there are many ways to access financing - but it is definitely not a good sign.

From the above, we will have an idea that Current Ratio < 1 are companies that have pay-back problems. This type of companies, we'll try to avoid. Thus, one of the screening criteria that i have use in Google Scanner is as follows:

Mkt Cap : 100M to Max
Div Yield: 5-15
Current Ratio < 1

DISCLAIMER The ideas expressed in this blog should not be used to buy or sell the securities, commodities or assets mentioned. The accuracy or completeness of the information provided cannot be guaranteed. Readers should carry out independent verification of information provided. No warranty whatsoever is given and no liability whatsoever is accepted for any loss howsoever arising whether directly or indirectly as a result of actions taken based on ideas and information found in this blog.

Criteria for Fundamental Scanning on Google Finance

In scanning for new ideas using google finance, what are the criteria to use to filter out unwanted stocks? There are many different type of investors in this world with different portfolio. What i uses is basically to suit the Growth and Dividend style investor.

Thus the criteria that i uses are as follows:

• Mkt cap: 100M - 56B
• Div: 5 -10%
• Book Value: 0-1
• Total Debt/Equity Ratio: 0-30%
• ROE: 8-50%

Explanation for the following criteria are as follows:

Mkt cap - We choose companies that have a minimum 100M in mkt capitalization. This is to ensure that the companies can survive any downturn in economy.

Div - A dividend of 5- 10% is to ensure that we as investors received the proper returns as we invest in the company selected. Using the 10-yr treasury yield as a risk free reference, investing in stocks takes risk. Thus by demanding a higher yields we can satisfy the risk as an investor take.

Book Value - Book value refers to the worth of a company should it wind up with all debts paid down. This value i have chose to 1 as it means looking for companies which is less than $1. You can play with more than 1 should you feel that u can invest in higher worth companies. By looking the book value, and comparing with the mkt price, we will know whether the company we have chosen are undervalued or overvalued.

Total Debt/Equity Ratio. This ratio tell us the total debt that a company is carrying against its equity. If it is more than 100%, this means that the company is borrowing heavily to sustain its operation. This is a BIG NO for investors and we need to avoid companies that has BIG BORROWING. I'll limit it to 30% of a company's equities.

ROE or Return on Equity measures the corporation profitability by revealing how much a company generates with the money. I've set it to 8% as a minimum. Any lower will probably affect the dividend payout.

DISCLAIMER The ideas expressed in this blog should not be used to buy or sell the securities, commodities or assets mentioned. The accuracy or completeness of the information provided cannot be guaranteed. Readers should carry out independent verification of information provided. No warranty whatsoever is given and no liability whatsoever is accepted for any loss howsoever arising whether directly or indirectly as a result of actions taken based on ideas and information found in this blog.

Technical Trades on Thai Beverage dtd 6 Dec 2013

Entry point @ 0.495
Stops @ 0.47
Target @ 0.53        Risk Reward Ratio: 1.4
Trade type: Long (Countertrend)
Minimum Vol => 15.9 mil


DISCLAIMER The ideas expressed in this blog should not be used to buy or sell the securities, commodities or assets mentioned. The accuracy or completeness of the information provided cannot be guaranteed. Readers should carry out independent verification of information provided. No warranty whatsoever is given and no liability whatsoever is accepted for any loss howsoever arising whether directly or indirectly as a result of actions taken based on ideas and information found in this blog.

Technical Analysis on Tech Oil&Gas

Entry point @ 0.68
Stops @ 0.63
Target @ 0.75        Risk Reward Ratio: 1.4
Trade type: Long
Minimum Vol => 1.44 mil



DISCLAIMER The ideas expressed in this blog should not be used to buy or sell the securities, commodities or assets mentioned. The accuracy or completeness of the information provided cannot be guaranteed. Readers should carry out independent verification of information provided. No warranty whatsoever is given and no liability whatsoever is accepted for any loss howsoever arising whether directly or indirectly as a result of actions taken based on ideas and information found in this blog.

Dogs of STI

A dividend idea that we can look into is known as "Dogs of the DOW".

Taken from Wikipedia definition:

The Dogs of the Dow is an investment strategy popularized by Michael B. O'Higgins, in 1991 which proposes that an investor annually select for investment the ten Dow Jones Industrial Average stocks whose dividend is the highest fraction of their price.

Proponents of the Dogs of the Dow strategy argue that blue chip companies do not alter their dividend to reflect trading conditions and, therefore, the dividend is a measure of the average worth of the company; the stock price, in contrast, fluctuates through the business cycle. This should mean that companies with a high yield, with high dividend relative to price, are near the bottom of their business cycle and are likely to see their stock price increase faster than low yield companies. Under this model, an investor annually reinvesting in high-yield companies should out-perform the overall market. The logic behind this is that a high dividend yield suggests both that the stock is oversold and that management believes in its company's prospects and is willing to back that up by paying out a relatively high dividend. Investors are thereby hoping to benefit from both above average stock price gains as well as a relatively high quarterly dividend. Of course, several assumptions are made in this argument. The first assumption is that the dividend price reflects the company size rather than the company business model. The second is that companies have a natural, repeating cycle in which good performances are predicted by bad ones.

We can applied this concept to STI market, thus we'll called it "Dogs of STI". Please note this cut-out is based on THE BUSINESS TIMES dtd 23 November 2013.

DISCLAIMER The ideas expressed in this blog should not be used to buy or sell the securities, commodities or assets mentioned. The accuracy or completeness of the information provided cannot be guaranteed. Readers should carry out independent verification of information provided. No warranty whatsoever is given and no liability whatsoever is accepted for any loss howsoever arising whether directly or indirectly as a result of actions taken based on ideas and information found in this blog.

Using Free Stock Scanners

Learning to use a stock scanner is a handy tool to scan for 700++ Singapore stocks for ideas. Google Finance has provided such a avenue that we can shorten the time we needed to look for an idea to buy a stock.

Using a few criteria which we can easily set, we can scan for small cap, mid cap or large caps stocks with dividend setting, net margin or some other criteria. Happy experimenting!

DISCLAIMER The ideas expressed in this blog should not be used to buy or sell the securities, commodities or assets mentioned. The accuracy or completeness of the information provided cannot be guaranteed. Readers should carry out independent verification of information provided. No warranty whatsoever is given and no liability whatsoever is accepted for any loss howsoever arising whether directly or indirectly as a result of actions taken based on ideas and information found in this blog.

Creating a STRUCTURE PORTFOLIO

When the number of stocks you owned has increased in holdings, it will be more difficult to manage. Do you sell all in a bear market or add more in a bull market? This let me to layout a proper structure so you can manage your own portfolio with ease.

A structure portfolio which I consider for a long term holding and low risk model is to have a 70%-30% segregation. This means that 70% of our stock portfolio consists on Dividend stocks while 30% consists of Growth stocks. In layman terms meaning, for a group of 10 counters, 7 stocks is dividend stocks while 3 stocks are stocks that don't pay a dividend but has good potential to grow in the future. This setup, in my own opinion is suitable for those in the 40-50s age range while those below can consists of a strategy of using 60%-40% range. I do not advocate a 50%-50% range as your portfolio are exposing to higher risk.

For those above 50s, you might wanna consider a 80%-20% strategy. While those above 60s, a 90%-10% portfolio is a good model as most will be retiring and they will be consuming what they have saved over the past 30 years of working life.

This structure portfolio which i have lay out is very conservative and even if the market has gone down, you need not worry as you still have dividends income while balancing the growth stocks as it gets hit.

DISCLAIMER The ideas expressed in this blog should not be used to buy or sell the securities, commodities or assets mentioned. The accuracy or completeness of the information provided cannot be guaranteed. Readers should carry out independent verification of information provided. No warranty whatsoever is given and no liability whatsoever is accepted for any loss howsoever arising whether directly or indirectly as a result of actions taken based on ideas and information found in this blog.

Analysis on Straco Corporation

Straco listed on 20 Feb 2004

Financial Data

Yr                  Earning/Share                  Revenue              Net Profit % Margin
2012                  2.32c                          55.198 mil                 35.7%
2011                  1.91c                          46.122 mil                 35.8%
2010                  2.15c                          51.571 mil                 36.2%
2009                  1.02c                          34.543 mil                 25.6%
2008                  0.89c                          32.300 mil                 23.9%
2007                  0.71c                          24.173 mil                 25.6%
2006                  0.39c                          18.504 mil                 18.2%

Other Data

Cash Bal: 101.148 mil
Debt: NIL
Shares Issued : 843,739,580
Treasury Shares : 25, 190,000
NAV: $0.1823
Div Yield: 2.8%

Business Model

The Group has been one of the few overseas companies that have managed to build up significant presence and influence in the tourism industry in China. The Group showcases high quality tourism-related projects, incorporating entertainment, education and culture to create a unique experience for visitors and audiences. These projects include large-scale public aquariums, cable-car facilities, the protection and redevelopment of historical sites and production of cultural entertainment shows.

http://straco.listedcompany.com/

Opinion

Having seen it few qtrs of report, this company is positive on the growing track. It presented a good margin on its net profit and healthy cash balance with ZERO debt.

Conclusion

Overall, the price of the its stock is selling at a premium but could be worth a look as we can compare with OSIM as it has a low book value but good earning power. As long as it has the pricing power, this company is good to accumulate for the long term.



DISCLAIMER The ideas expressed in this blog should not be used to buy or sell the securities, commodities or assets mentioned. The accuracy or completeness of the information provided cannot be guaranteed. Readers should carry out independent verification of information provided. No warranty whatsoever is given and no liability whatsoever is accepted for any loss howsoever arising whether directly or indirectly as a result of actions taken based on ideas and information found in this blog.

Follow-up News on CWT

CWT: 3Q13 Net Profit Down 53% To S$19 Million.

06 Nov 2013 17:11

CWT Limited reported financial results for the quarter ended September 30, 2013. The Group reported revenue of S$2.2 billion, gross profit of S$61.1 million, profit after tax of S$19.2 million and earnings per share of 3.18 cents. The Group also incurred administrative expenses of S$38.7 million, finance costs of S$10.3 million and reported other income of S$0.8 million...

http://cwt.listedcompany.com/news.html/id/378914



DISCLAIMER The ideas expressed in this blog should not be used to buy or sell the securities, commodities or assets mentioned. The accuracy or completeness of the information provided cannot be guaranteed. Readers should carry out independent verification of information provided. No warranty whatsoever is given and no liability whatsoever is accepted for any loss howsoever arising whether directly or indirectly as a result of actions taken based on ideas and information found in this blog.

An Analysis on Rickmers Maritime Trust

Rickmers Maritime Trust is listed on 4 May 2007

Note: All data quoted in priced is USD unless otherwise stated

Financial Data

Yr                  Rev                   Net Income             DPU
2013                                                                        2.4c
2012           151.101 mil           27.623 mil                2.4c
2011           155.872 mil           40.326 mil                2.4c
2010           155.968 mil          (28.553) mil              2.31c
2009           162.228 mil           40.741 mil                3.91c
2008           111.758 mil           34.437 mil               8.89c
2007*           42.488 mil             20.596 mil             5.644c         *- proforma

Other Data (as of 30 Sept 2013)

Debt:

• Current: 48.765 mil
• L.Term: 406.043 mil
• Total: 454.808 mil

Convertible Bond @ $0.399385 : USD 50.417 mil

Cash Bal: 57.836 mil

Share Issued: 847,350,000

Diluted with full bond conversion: 1,028,613,067

NAV: $0.63

         : $0.52 (diluted)  => SGD 0.64 (US$ 1 => SG $1.23)

Opinion

After the downfall in 2010, this trust has been struggling to stay afloat. With 16 containerships currently chartered on fixed rate time charter currently reported on 30 Sept 2013, my opinion is that we may have seen the slump in the shipping industry. Although it may have seen its worst day, there is need to see that it expands its services to increase its stagnant revenue. The last 2 yrs of revenue stay around 150 mil. which is relatively stable.

For its debt issue, the mgmt has managed to solve its convertible bonds issue. Short-term debt should not be a problem for the company. What matters is the debt carried after 1 yr. Thus, rights issue or private placement is possible.

Conclusion

With its current dividend yield at around 10%, this counter is good to pick up in the short term as it gives a stable dividend of 2.4c  per annum. It is trading below its book value with a 50% discount, this provide a margin of safety for us.

DISCLAIMER The ideas expressed in this blog should not be used to buy or sell the securities, commodities or assets mentioned. The accuracy or completeness of the information provided cannot be guaranteed. Readers should carry out independent verification of information provided. No warranty whatsoever is given and no liability whatsoever is accepted for any loss howsoever arising whether directly or indirectly as a result of actions taken based on ideas and information found in this blog.

An Analysis on Ascendas India Trust

Ascendas India Trust is listed on 1 Aug 2007

Financial Data

Yr                     Rev                        Net Income                  DPU
2013/14                                                                              4.5c (est)
2012/13          126.286                     45.288 mil                  4.65c
2011/12          127.515                     51.148 mil                  6.00c
2010/11          121.506                     70.576 mil                  6.58c
2009/10          120.862                     73.793 mil                  7.55c
2008/09          118.079                     57.07 mil                    7.54c
2007/08          102.713                     45.578 mil                  6.85c

Other Data (as at 30 Jun 2013)

Debt

• Current: NIL
• L.term: 205.264 mil
• Total : 205.264 mil

Cash Bal: 45.331 mil

Shrs Issued: 915,052,000

NAV: $0.60

Dividend mth: MAY, NOV

Opinion

AIT has taken a hit recently due to the falling Indian Rupee. This present an opportunity for us to load this counter as it is close to its NAV. Below attach is the exchange rate between Singapore Dollar and Indian Rupee.

As the Indian Rupee has seen its weakest drop against Singapore Dollar, we can see that AIT could be headed for a trend reversal. With its current yield at 7.4%, this counter may be an opportunity for holding on the longer term.

Conclusion

The biggest worry to hold this counter is always the exchange rate instead of its income as its shows the strength of its stability to hold to its genreating revenue. Given that we may have seen its lowest point to India Rupee, it would be worth while to hold to a small position to generate revenue for this counter.

Note: I have vested intereste in this counter for a very small holding.

Updated on 24 Oct 2014: I have clear my positions. :)





DISCLAIMER The ideas expressed in this blog should not be used to buy or sell the securities, commodities or assets mentioned. The accuracy or completeness of the information provided cannot be guaranteed. Readers should carry out independent verification of information provided. No warranty whatsoever is given and no liability whatsoever is accepted for any loss howsoever arising whether directly or indirectly as a result of actions taken based on ideas and information found in this blog.

What factors constitute to discount buying on equities?

When we buy a stock, we're actually buying a piece of business that we actually want to own. With more than 700++ listed companies on SGX, how do we filter out bad companies and information to find the gems that we wanna owned?

These companies listed in the market are transacted with a buying and selling price. We may inadventlty  buy a price that could be too high (premium) or a dirt cheap company that could be an empty shell company. Using a basic criteria, i have grasp a few points to note. They are:

• buying a stock below/at its book value with a margin of safety
• low current debt to asset ratio
• dividend returns at 2x higher than the 10 yr treasury yields.  

DISCLAIMER The ideas expressed in this blog should not be used to buy or sell the securities, commodities or assets mentioned. The accuracy or completeness of the information provided cannot be guaranteed. Readers should carry out independent verification of information provided. No warranty whatsoever is given and no liability whatsoever is accepted for any loss howsoever arising whether directly or indirectly as a result of actions taken based on ideas and information found in this blog.

Technical Analysis on Far East Hospitality Trust

Entry Point - 0.895
Stop-loss - 0.875
Profit Target - 0.94

Note: This is purely TA on this stock. No fundamental play is involved.

DISCLAIMER The ideas expressed in this blog should not be used to buy or sell the securities, commodities or assets mentioned. The accuracy or completeness of the information provided cannot be guaranteed. Readers should carry out independent verification of information provided. No warranty whatsoever is given and no liability whatsoever is accepted for any loss howsoever arising whether directly or indirectly as a result of actions taken based on ideas and information found in this blog.

Technical Analysis on BioSensor

LATEST UPDATES CHART DTD 19 OCT 2013

Unfortunately, Biosensor has moved sideways while waiting for its financial reports to be released 12 Nov 2013. Till then we wont see much action to this counter.

Ascending triangle formation on Biosensor. Will it breakout with HIGH volume surge?


DISCLAIMER The ideas expressed in this blog should not be used to buy or sell the securities, commodities or assets mentioned. The accuracy or completeness of the information provided cannot be guaranteed. Readers should carry out independent verification of information provided. No warranty whatsoever is given and no liability whatsoever is accepted for any loss howsoever arising whether directly or indirectly as a result of actions taken based on ideas and information found in this blog.

Technical Analysis on Starhill Global REIT

Starhill Global shows a ascending triangle.  Near term resistance will probably be at 85c (200D MA).


DISCLAIMER The ideas expressed in this blog should not be used to buy or sell the securities, commodities or assets mentioned. The accuracy or completeness of the information provided cannot be guaranteed. Readers should carry out independent verification of information provided. No warranty whatsoever is given and no liability whatsoever is accepted for any loss howsoever arising whether directly or indirectly as a result of actions taken based on ideas and information found in this blog.

Technical Analysis on QAF

QAF has a nice broadening formation.



DISCLAIMER The ideas expressed in this blog should not be used to buy or sell the securities, commodities or assets mentioned. The accuracy or completeness of the information provided cannot be guaranteed. Readers should carry out independent verification of information provided. No warranty whatsoever is given and no liability whatsoever is accepted for any loss howsoever arising whether directly or indirectly as a result of actions taken based on ideas and information found in this blog.

Technical Analysis on CapitaCommercial Trust

Note that this chart presented a hypothetical case that it will form an inverse Head & Shoulder. 

DISCLAIMER The ideas expressed in this blog should not be used to buy or sell the securities, commodities or assets mentioned. The accuracy or completeness of the information provided cannot be guaranteed. Readers should carry out independent verification of information provided. No warranty whatsoever is given and no liability whatsoever is accepted for any loss howsoever arising whether directly or indirectly as a result of actions taken based on ideas and information found in this blog.

An Analysis on CapitaCommercial Trust

LATEST UPDATES - Q3'2013

Rev - 94.041 mil
Net Profit - 72.564 mil
EPS - 1.81c
DPU - 2.04c

NAV $ 1.64
Cash Balance - 59.259 mil

No outstanding debt with 1 yr.

Opinion - CCT maintains its DPU this qtr but its incoming rev has dropped as compared to Q3'2012. Much has been pointed at its lower occupancy at Capital Tower and the cessation of yield protection at George Street. The mkt expects the office rental to be revised upwards, thus CCT looks to be position for the ride. My opinion is to HOLD this stock as it is still below its book value with a Div yield @ 5.7% at current rate.

---

CapitaCommercial Trust listed on 11 May 2004

Financial Data

Yr                 Rev                   Net Income                DPU
2013                                                                        8c
2012           375.806 mil           295.524 mil             8.05c
2011           361.242 mil           277.315 mil             7.52c
2010           391.911 mil           298.983 mil             7.83c
2009           403.323 mil           220.957 mil             7.06c
2008           335.285 mil           233.471 mil             11.0c
2007           240.078 mil           173.996 mil             8.70c
2006           155.722 mil           114.668 mil             7.33c
2005           115.131 mil            84.252 mil              6.81c

Other Data (as at 30 Jun 2013)

Debt

• Current: 801.416 mil
• L.Term: 1196.576 mil
• Total: 1991.180 mil

Cash Balance : 74.652 mil

Shares Issued : 2,374,598,116
Outstanding Convertible Bonds:

• $190.3 mil @ 2.7% with conversion price at $1.2324 due in 2015
• $175 mil @ 2.5% with conversion price at $ 1.6394 due in 2017

NAV: $1.65

Opinion

Currently, CCT is undervalued as compared with its book value of $1.65. With its current shr price at $1.43 (11 Oct 2013), and its reporting date on 18 Oct 2013, this counter may pick up slightly but wont be a big affair. Its dividend payment is around Feb and Aug semi-annually. This counter offers a DIV yield of 5.6%
and estimated 8c this year.

Looking at its current debt and its Debt reporting presentation on 14 Aug 2013, this counter managed to refinance its debt. The rest of its debt are 300 mil @ yr 2014, 430 mil @ yr 2015, 808 mil @  yr 2016. I believe they will need short term loans or Medium Term Note to pay off its debt.

Conclusion

This counter is for long term holding. Accumulate as its share price goes lower.



DISCLAIMER The ideas expressed in this blog should not be used to buy or sell the securities, commodities or assets mentioned. The accuracy or completeness of the information provided cannot be guaranteed. Readers should carry out independent verification of information provided. No warranty whatsoever is given and no liability whatsoever is accepted for any loss howsoever arising whether directly or indirectly as a result of actions taken based on ideas and information found in this blog.

An Analysis on Indofood Agri Resources

Indofood Agri is listed on 14 Feb 2007 on the Singapore Mainboard

(All listed values are in Indonesia Rupiah unless otherwise stated)

Financial Data

Yr             Eps                   Rev                    Net % Profit Margin
2013         250 (est)
2012         730                 13845 mil                   13.13%
2011        1031                12605 mil                    20.95%
2010         974                 9484 mil                      20.09%
2009        1061                9040 mil                      22.71%
2008         550                 11840 mil                     9.01%
2007*       671                 6505 mil                      15.28 %

Ave           836                                                    15.36%

Note: Yr 2007 is a proforma year

Other Data (as at 30 Jun 2013)

Debt:

• Current: 3023.159 mil
• L.Term: 4698.939 mil
• Total   : 7722.098 mil

Cash Bal: 3965.056 mil

Shares Issued: 1,434,283,000
Treasury:      13,500,000

NAV : 9658 rp

Business Model

 http://www.indofoodagri.com/business.html

Opinion

Looking at Indoagri, my first surprise is the eps that it had earned for the 1st half of the year. At only 120 rupiah, i feel that this company is going to be a letdown for its entire year. While tabulating its 6 yrs of financial data, it looks like this year earning is worst off than 2008, where the whole world mkt collapse.

Conclusion

Palm oil has seen its hays days. With intense competition, low demand and poor margins, it is better to put this counter on the watchlist  till it can prove that it can earn back its revenue.




DISCLAIMER The ideas expressed in this blog should not be used to buy or sell the securities, commodities or assets mentioned. The accuracy or completeness of the information provided cannot be guaranteed. Readers should carry out independent verification of information provided. No warranty whatsoever is given and no liability whatsoever is accepted for any loss howsoever arising whether directly or indirectly as a result of actions taken based on ideas and information found in this blog.

Technical Analysis of Mapletree Greater Commercial Trust

MGCC was chosen as you can see from this chart that it has a forms a base at around 86c before going higher to 96c then coming down to its support at 89c. Thus it forms a higher low. Although it looks like having a cup and handle pattern, this may be negated if it consolidates around 89c.

The reporting date for this company is on 31 Oct. As expected they are giving put Dividends of around 3c which will bring abt a fair value of 96-98c. Thus in my opinion, we can load on this counter,


DISCLAIMER The ideas expressed in this blog should not be used to buy or sell the securities, commodities or assets mentioned. The accuracy or completeness of the information provided cannot be guaranteed. Readers should carry out independent verification of information provided. No warranty whatsoever is given and no liability whatsoever is accepted for any loss howsoever arising whether directly or indirectly as a result of actions taken based on ideas and information found in this blog.

Technical Analysis on Mapletree Logistics Trust

As you can see from the daily chart, this stock is trading sideway between 1.04 - 1.115. The weekly chart show a convergence in MACD histogram.

Thus, with its reporting date on 17 Oct 2013 coming, expect some action underway for this counter.  Estimated Dividend for this stock is 1.8c.

Entry point : 1.045
Profit target : 1.10
Stop loss: 1.035

Note: There is no fundamental play for this chart. Purely on TA analysis.

DISCLAIMER The ideas expressed in this blog should not be used to buy or sell the securities, commodities or assets mentioned. The accuracy or completeness of the information provided cannot be guaranteed. Readers should carry out independent verification of information provided. No warranty whatsoever is given and no liability whatsoever is accepted for any loss howsoever arising whether directly or indirectly as a result of actions taken based on ideas and information found in this blog.

Technical Analysis on China Fishery

DISCLAIMER The ideas expressed in this blog should not be used to buy or sell the securities, commodities or assets mentioned. The accuracy or completeness of the information provided cannot be guaranteed. Readers should carry out independent verification of information provided. No warranty whatsoever is given and no liability whatsoever is accepted for any loss howsoever arising whether directly or indirectly as a result of actions taken based on ideas and information found in this blog.

An Analysis on Sabana REIT

Sabana REIT is listed on 26 Nov 2010

Financial Data

Yr                Rev              Net Income              DPU
2013           86 mil (est)      80 mil (est)            9.70c (est)
2012           81.768 mil      76.937 mil             9.28c

2011           76.945 mil      73.074 mil             9.53c

Other Data (as at 30 June 2013)

Debt:

• Current:  Nil
• L.Term : 417.291 mil
• Total    : 417.291 mil

Borrowing breakdown

• 100.2 mil 3-yr term CMF (Commodity Murabaha Facilities) due in Nov 2004
• 177.6 mil 3-yr term CMF due in Aug 2015
• 75 mil 5-yr term CMF due in 2017
• 72.5 mil @ 4.5% Convertible Sukuk due 2017. Where the convertible sukuk can be converted to shares @ $1.1933

Cash Bal: 13.442 mil

Shares Issued: 649, 704,185

As of 24 Sep 2013, a private placement of 40,000,000 units @ $1 has been carried out. This will rank pari pasu with the normal shares. Thus total share has been enlarged to 689, 704, 185. This constitutes to about 6% dilution in the ordinary shareholding.

NAV: $1.09

Business Model

http://www.sabana-reit.com/about.html

Opinion

With an estmated 8% div yield Sabana REIT looks good to any investor who is looking for long term gains. However upon researching this REIT, we may need to take note of a few issues:

• The REIT does 100% payout every qtr, they do not have any capital reservation for expansion
• In order to increase their revenue, their only way is by borrowing from the market to fund any acquisition. Thus, their borrowings will be subjected to market prevalent rates.
• Any increase in the 10-yr treasury rates of Singapore Bond, the market will force this REIT to lower their mkt price in order to maintain the yields abv 7%.

Conclusion

As this REIT is fully funded by debt, we may need a large margin of safety in order to keep this REIT for long term. If we're to assume that the 10-yr treasury yield is going to increase by 1% to 3.5%,  we may need to have at least a minimum of 10% buffer to its book value for us as an investor to enter to this stock.


DISCLAIMER The ideas expressed in this blog should not be used to buy or sell the securities, commodities or assets mentioned. The accuracy or completeness of the information provided cannot be guaranteed. Readers should carry out independent verification of information provided. No warranty whatsoever is given and no liability whatsoever is accepted for any loss howsoever arising whether directly or indirectly as a result of actions taken based on ideas and information found in this blog.

An Analysis on Pan United Corporation

Pan United is listed on SGX on 22 Dec 1993

Financial Data

Year             Eps                   Rev                   Net Profit % Margin
2013         6.5 - 7c (est)
2012           7.80c                  715.327 mil             7.2%
2011           5.40c                  512.679 mil             7.5%
2010           3.70c                  391.392 mil             7.0%
2009           6.30c                  470.801 mil             8.7%

2008           9.10c                  553.048 mil             9.65%
2007           6.03c                  436.988 mil             9.15%

Ave             6.40c                                                 8.2%

Unfortunately, i'm unable to get any info from 1994 to 2006. Thus i've put up the latest 5 yr earnings.

Other Data (as at 30 Jun 2013)

Debt

• Current : 0.676 mil
• L.Term : 73.13 mil
• Total    : 73.806 mil

Cash Bal : 91.507 mil

Shrs Issued: 559, 330, 160

NAV : $0.59

Business Model

A diversified group that comprise of the following business:

• Basic building resources
• Ports & Logistics
• Shipping

Opinion

In my opinion, this company has proper management and good earnings. Its earning are stable even when the crisis hits in 2009, it manages to have a 3c returns. Its business are diversified thus even if one sector is down, it is still able to depend on other business segment. Its distributes ard 5% dividend annually.

Conclusion

I would love to accumulate this counter if it is around 65 -70c range. Given that it is trading at 90c on 3 Oct 2013, would we have to chance to own this wonderful company?





DISCLAIMER The ideas expressed in this blog should not be used to buy or sell the securities, commodities or assets mentioned. The accuracy or completeness of the information provided cannot be guaranteed. Readers should carry out independent verification of information provided. No warranty whatsoever is given and no liability whatsoever is accepted for any loss howsoever arising whether directly or indirectly as a result of actions taken based on ideas and information found in this blog.

An Analysis on Banyan Tree Holdings

Banyan Tree is listed on Singapore Exchange on 14 June 2006

Financial Data

Year       Eps                Rev                   Net Margin %          Div payout
2013       2.8 -3c (est)                                                                0.651c
2012       1.96c            338.416 mil          4.53%
2011       0.20c            329.492 mil          0.90%                        0.5c
2010       2.10c            305.300 mil          5.00%         
2009       0.40c            313.300 mil          1.00%                      
2008       0.90c            412.600 mil          2.00%                        2.0c
2007       10.8c            421.900 mil          1.90%                        1.78c
2006       3.90c            335.300 mil          8.00%                                      

Average   2.90c                                      5.78%

Other Data (as at 30 Jun 2013)

Debt
      Current  : 156.999 mil
      L.Term  : 234.814 mil
      Total     : 391.813 mil
 
Cash Bal : 131.177 mil

Bonds Issued:  70 mil @ 5.75%  due 31/7/2018
                          70 mil @ 5.5%    due 14/3/2014
                          50 mil @ 6.25%  due 30/5/2017

Shares issued : 760,912,080
Treasury : 490,200

NAV : $0.76

Business Model

A hospitality company that manages spas & hotels. It has 7 areas of business segment namely:

• Hotel investment
• Hotel management
• Spa operations
• Gallery operations
• Hotel residences
• Property sales
• Design and related services

Opinion

Looking at the past data of this company generally tell us that it has very thin margins and their dividends payout are not systematic. The company have taken on bonds issuing to shore up their cash flow and looking at their debt level, probably they need to look at bank overdraft or refinance.

Conclusion

It is great to invest into their bonds as they are paying higher payouts. If you are considering from the point of investing into their ordinary shares, we need to consider the risk of no dividends payout. Thus a margin of safety have to be considered. As of 27 Sept 2013, the share is trading at 68c. The 52 weeks high and low is 52c and 80c respectively. At its current share price, it now has a 10.5% discount to its NAV.

My conclusion is for a trading buy below 65c and to sell around 78c.


DISCLAIMER The ideas expressed in this blog should not be used to buy or sell the securities, commodities or assets mentioned. The accuracy or completeness of the information provided cannot be guaranteed. Readers should carry out independent verification of information provided. No warranty whatsoever is given and no liability whatsoever is accepted for any loss howsoever arising whether directly or indirectly as a result of actions taken based on ideas and information found in this blog.

An Analysis on Ascott REIT

Ascott REIT is listed on SGX on 31 March 2006

Financial Data

Year              Rev                      Net Income                   DPU
2013                                                                              8 - 8.2c (est)
2012         303.841 mil                99.698 mil                  8.76c
2011         288.653 mil                96.166 mil                  8.53c
2010         207.223 mil                57.714 mil                  7.54c
2009         175.522 mil                45.207 mil                  7.32c
2008         192.381 mil                53.659 mil                  8.78c
2007         154.837 mil                45.069 mil                  7.70c
2006         89.811 mil                  24.577 mil                  5.24c         * 9 months

Other Data (as at 30 Jun 2013)

Debt

• Current: 239.652 mil 
• L.Term: 1077.418 mil
• Total:    1317.070 mil

Cash Balance: 141.235 mil
Div Yield: 7% (est)

NAV: $1.21
Shares Issued: 1,261,596,000


Business Model

A real estate investment vehicle that invest in property for hospitality purpose. Currently has a very big portfolio of 81 properties in Asia and Europe.

Opinion

Ascott REIT has distribute 4.081c for the first 1/2 of the year. While the remain half, we can expect another 4c. Given that its NAV is $1.21, we can expect a full value of $1.25-1.28 for FY 13. For the second half of their FY, they need to tackle their debt as their Cash on-hand show they need to raise additional cash to pay off their current debt. Thus, probably they will be using bonds to pay their big amount.


Conclusion

Given that Ascott is trading at ard $1.25 on 26 Sept 2013, they are fully valued. I would like to see further downside of 10% (below $1.15) to the counter before entering. This is to ensure we have a margin of safety and any downside risk is limited.

DISCLAIMER The ideas expressed in this blog should not be used to buy or sell the securities, commodities or assets mentioned. The accuracy or completeness of the information provided cannot be guaranteed. Readers should carry out independent verification of information provided. No warranty whatsoever is given and no liability whatsoever is accepted for any loss howsoever arising whether directly or indirectly as a result of actions taken based on ideas and information found in this blog.

Analysis on China Fishery

China Fishery is listed on SGX on 25 Jan 2006

Financial Data
(All values listed in USD unless otherwise stated)
          
Year                     EPS                   REV                     Net Profit % Margin
2013               6.1 - 7.3c (est)       
2012                   7.63c                  604.001 mil            12.93%
2011                  10.22c                  685.45 mil              15.10%
2010                  13.01c                 538.931 mil             21.60%   * Change in financial yr to end at Sept
2009                  9.08c                   383.449 mil             20.37%   * 9 mths reporting (Jan - Sept)
2008                 12.05c                  459.419 mil             20.52%
2007                 11.37c                  406.369 mil             21.77%
2006                  6.70c                   157.082 mil             31.40%

Year                  Shrs Issues               Div Issued(SGD)
2013                 2,046,354,546         
2012                 1,023,177,273         0.19c with Rights offer 1 for 1 @ SGD 0.34
2011                 1,022,262,139         0.45c
2010                 1,002,421,099         0.50c (scrip div)
2009                 860,287,997            0.42c (scrip div) + Offer 1 shr for 10 shrs
2008                 782,080,000            2.19c
2007                 782,080,000            5.51 c + Stock split 1 to 2 shr  
2006                 362,040,000            5.31c:

Other Datas (As at 28 Jun 2013)

Debt
        Current:  191.115 mil
        L.T      :  427.945 mil
        Total    :  619.05 mil

Cash Bal : 318.28 mil

NAV: $ 0.56  / SGD 0.70 (Taking USD 1 = SGD 1.26)

Shares Issued: 2,046,354,546
Warrant: 35,728,154 @ exercise price SGD 1.57
Rights: 1,023,177,273 @ exercise price of SGD 0.34

Business Model

The company operated around the world on high seas with the following operations:

• Fishing and fish supply
• Fishmeal & fish oil processing
• Fish products

Opinion 

With the financial data reported, this company looks good as it has a proper margin and good revenue. But further inspection of its shares issued and dividends, i feel that the renumeration committee is not rewarding its shareholders properly. As the years progress, the dividend shrink is size and their shares sizes have increased much faster than their revenue. I viewed it as diluting the shareholder's value.

With the current debt that stands at 191 mil, they should be able to self-sustain for a year or two before their larger debt obligation came crushing. With the 3rd qtr reporting (as at 28 Jun 2013) with an earnings of 5c (using 1,411,522,895 shrs), we can expect around 6.1c - 7c earning for the full yr. But with enlarged shareholdings, i expect around 2 - 2.5c earnings.


Conclusion

Given that the mkt price at SGD 0.40 (as on 23 Sept 2013, 1600), my conclusion is that it is still a BUY with aim of capital appreciation till SGD 0.66. Best buying range is around SGD 0.35 - 0.38.


   
DISCLAIMER The ideas expressed in this blog should not be used to buy or sell the securities, commodities or assets mentioned. The accuracy or completeness of the information provided cannot be guaranteed. Readers should carry out independent verification of information provided. No warranty whatsoever is given and no liability whatsoever is accepted for any loss howsoever arising whether directly or indirectly as a result of actions taken based on ideas and information found in this blog.

An Analysis on Civmec Ltd

Civmec is listed on 12 Apr 2012

Financial Data

Year                              Earnings / Shr              Revenue                          Net Profit
                                        (cents)                          (mil)                               (% margin)
2013                                7.2                              405.924                                 8.79
2012                                6.05                            328.654                                 9.22

Other Data (as at 30 Jun 2013)

Debt:

• Current       : 9.521 mil
• Long-term   : 19.95 mil
• Total          :  29.476 mil

Cash Balance : 23.108 mil

Shares Issued : 501,000,000

NAV : 21.99c

Dividend (2012) : 0.6c
                (2013)  : 0.7c

Div payment date: Dec

Biz Model

Civmec is an engineering company that is involved in the following sectors:

• Oil and Gas sector
• Mining and other services

Opinion

Civmec is an engineering company based in Australia. As an investor, we may need to take note of the currency exchange between Australia and Singapore. Secondly, as it is a engineering company, revenues comes in from projects and services jobs which are not recurring and thus making it harder to have stable earnings. Currently it is trading over 80c on the Singapore Exchange on 20 Sept 2013, in my opinion is very expensive. With only 2 yrs of facts, it is difficult to make an estimation of how much eps Civmec will make for FY 2014. But my estimation will be around 7-9c. Dividend yield is only 1.1% which is even lower than SG 10yr bond of 2.50% currently.

Conclusion

Using estimates of 7-9c for FY 2014, coupled with NAV will give us a NAV estimated of 30c. I think this stock has to come down in order for me to buy in. If i were to really buy in, only below 30c will i consider with a dividend yield of 4% to take the risk of owning this stock.

DISCLAIMER The ideas expressed in this blog should not be used to buy or sell the securities, commodities or assets mentioned. The accuracy or completeness of the information provided cannot be guaranteed. Readers should carry out independent verification of information provided. No warranty whatsoever is given and no liability whatsoever is accepted for any loss howsoever arising whether directly or indirectly as a result of actions taken based on ideas and information found in this blog.

An analysis of Starhill Global

Starhill Global REIT is listed on SGX on 20/9/2005

Financial Data

Year                              Net Income                      DPU
                                        (mil)                               (cents)
2013                                                                      4.77c (est)
2012                             148.4 mil                          4.39c
2011                             143.6 mil                          4.12c
2010                             130.46 mil                        3.90c 
2009                             106.95 mil                        3.85c
2008                              95.85 mil                         3.66c   (7.17c*)   Rights Issued
2007                              76.81 mil                         6.19c
2006                              46.41 mil                         5.79c
2005                              38.518 mil                       1.58c     Proforma Distribution

Other Data   (as at Q2'2013)

Debt

• Current: 648.74 mil
• Total: 855.37 mil

Cash Balance : 62.065 mil

Shrs issued: 2,153,218,267
CPU Holders: 27,986,168

Div Yield (est): 5.7%

NAV (diluted): $0.87 

Debt Findings

A breakdown of Starhill Global borrowings:

• 284 mil       - Refinance at yr 2013
• 159.5 mil    - Refinance at yr 2013
• 124 mil       - Due 2015
• 64.6 mil      - Short term revolving credit
• 18.6 mil      - JPY Bond Due 2016
• 2.2 mil        - RMB Bond Due 2014
• 73.7 mil      - Due 2017
• 131.5 mil    - Due 2015

Business Model

An asset class company holding office and commercial space for rental.

Singapore Holding

• Wisma Atria (74.23%)
• Ngee Ann City (27.23%)

Malaysia Holding

• Starhill Gallery
• Lot 10

Australia Holding

• David Jones Bldg
• Plaza Arcade*         acquired in 2013

China Holding

• Renhe Spring Zongbei

Japan Holding

• Holon L
• Harajyuku Secondo
• Roppongi Terzo
• Ebisu Fort
• Nakameguro
• Daikanyama

Opinion

Given that Starhill Global REIT, has managed to refinance its debt, it did not need to go to the open market to look for refinancing. Thus, there may be no more options / rights issue this year. As Japan has started to reflate its economy, Starhill may just be at the right place to hitch a ride. An estimated div of 4.77c per annum can be expected for this FY 2013.

Conclusion

As of 16 Sept 2013, it is still trading at $0.78 below its NAV of $0.87. This works out to be around 10% discount. Thus, this counter should be able to accumulate on a medium to long term basis. Best pricing is below $0.76.



DISCLAIMER The ideas expressed in this blog should not be used to buy or sell the securities, commodities or assets mentioned. The accuracy or completeness of the information provided cannot be guaranteed. Readers should carry out independent verification of information provided. No warranty whatsoever is given and no liability whatsoever is accepted for any loss howsoever arising whether directly or indirectly as a result of actions taken based on ideas and information found in this blog.

An Analysis on Biosensor

BioSensor listed on 20 May 2005

Financial Data (All values in USD)
Year (FY)             Earnings / Share     Revenue         Net Profit                                                                                                                              (cents)                   (mil)            % Margin
2014                          4 - 6c (est)              
2013                              6.60c                   336.187                34.3%                                      2012                            23.63c                   292.141                125%          *1-time gain            2011                              3.88c                   156.593                27.6%                                             2010                             2.96c                   116.179                 27.5%                                       2009                            (0.11)c                 118.954                 N.M                                         2008                            (3.20)c                  44.318                  N.M                                          2007                           (3.99)c                   34.353                  N.M
2006                           (2.61)c                   37.852                  N.M    
Other Data (as at Q1'2014 report)
Debt

• Current - 0.01 mil
• Total     - 272.592 mil

Cash Balance - 546.22 mil
  Shares Issued        - 1,710,959,000
Treasury Shares    - 32,574,000
Options                   - 43,889,701
 
Div Payout - USD 0.02
Div period - July
NAV -  73.81c / SGD 0.90 

Business Model

This company comprises of the following product group

1. Critical care
2. Interventional cardiology
3. Cardiac Diagnostic
4. Licensing & Royalty revenues

Opinion

Biosensor since listed on SGX has been in the red for the inital 4 yrs before going into the profit region. However their earnings are inconsistent. But we can roughly gauge that they will have an earnings of 4 to 6 cents this year since their Q1'2014 has already been published on their website. I believe this company will be profitable this yr as they have expanded their capability to include Cardiac Diagnostic products.

Conclusion

This company is price at 97c on 12 Sept 2013. However,  i believe this is the fair value for the company going forward. It would be great to accumulate if this counter can go below 88c.


DISCLAIMER The ideas expressed in this blog should not be used to buy or sell the securities, commodities or assets mentioned. The accuracy or completeness of the information provided cannot be guaranteed. Readers should carry out independent verification of information provided. No warranty whatsoever is given and no liability whatsoever is accepted for any loss howsoever arising whether directly or indirectly as a result of actions taken based on ideas and information found in this blog.