Term Insurance

I have never talked about personal financial planning in my blog, even though it is such an important topic.
It is important because financial planning helps us manage risks of undesired events that can wipe out one’s savings and assets. The cost of dealing with, and recovering from, these catastrophic events is very large, such as medical cost for dread illness, cost of surgery due to accidents, or cost of having a caretaker over long term. These events are unforeseen but the risks are very real. Financial planning helps us prepare for these events happening, and enable us to recover from incidents more easily and get back on with our life.
Financial planning is a broad topic. Insurance is one important piece of the puzzle. A commonly shunned topic among common folks, but no less important than investment.
In general, insurance plans can be grouped according to the purpose and type.
Insurance Purpose Life Insurance Health/Medical Insurance Investment and Annuity Type Term Plan C…

Could Basic FA Have Helped Me Avoided Noble?

I bought Noble stock at the earliest date of, according to my record, early 2010 at a price of $1.69 (price quoted pre-10 to 1 share consolidation from here on). I traded a few rounds of Noble after that, with the highest buy price at $2.02 and lowest at $0.845. Details were sketchy as I just started investing back then and didn’t keep proper transaction records.
And what is the current price of Noble on 7 June 2017? $0.033. That is a whopping 98.4% plunge in from the highest price I ever paid for it. For the record, I held my Noble shares from 2010, and just recently sold in Mar this year at $0.195. In other words, I witnessed its share price dropped, and dropped, and dropped further. I lost around $13k on this share. 
It is the most epic, disastrous and horrendous investing experience I ever had.
Investors usually have a short memory and I believe many would not recall that Noble was once trading at $2.2, and perhaps I am one of the very few investors who held Noble for this long,…


FCT recently released its FY17 Q2 results. I am posting a very simple, top line quick glance of their results. These figures are the usual set of indicators I look at for very stable REITs such as FCT. should there be nothing that looks out of the norm, my homework for the REIT stops here. Nothing more nothing less, short and simple.

Revenue: $45m, a 2.9% drop y-o-y
NPI: $32m, similar 3.3%  drop y-o-y
NPI Margin: 71.2% vs 71.5% last year. same.
Income available for distribution: $28.5m vs $28.9m last year. minimal change.
Q2 DPU: 3.04c, same as last year.

Balance Sheet
Gearing saw a slight increase to 29.4% from 28.3% end FY16.

Interest Cover continues to be healthy at 7.56 times compared to 7.44 times end FY16.

but do note that FCT has a significant amount of debt maturing this FY: $191m or 24.6% of total borrowings.

Operational Performance
Overall occupancy is a lower 87.2% compared previous quarter 91.3%. Not surprising as this is due to Northpoint (NP)'s ongoing AEI. …

Let Your Stock Serve its Purpose

Peter Lynch classifies companies according to different characteristics such as size, growth potential, nature of industry etc.
This can actually be of great use to most investors. We have our portfolio of stocks, companies from different industries, at different phase of their growth. In general, if we ask what are the objectives of us investing in them? The first answer that comes to mind is of course, to make money! What other reasons can there be right, as no one will buy a share to lose money.
But if we were to probe deeper, the question we should actually be answering is how would these companies grow its earnings such that market recognises their ability to grow earnings, and in turn push up its price, realizing its value and growth, and present us with a chance to cash out on our profits.
Answering the question will affect how we position these stocks in our portfolio – positioning of shares in a portfolio matters. What purpose does this counter serve in your portfolio? What s…

ISOTeam HY 2017 Results

Results overview

*Operating profit derived after deducting COGS, Marketing and Distribution Expenses, General and Admin Expenses, Finance Costs
Bright spots Increase revenue in A&A, C&P and other business segments by 77%, 67% and 41% that picked up the slack for the fall in R&R segmentFirst contract for HDB Improvement programme of $17.5m– higher profit margin job with usually bigger contract sizeSingle largest renewable energy project at $6.3mImproved GP margin and largely consistent OP margin. Probably mean good cost control and effective integration of acquired businesses
Areas of Concern Big drop in R&R revenue, the main business segment.Still no announcement on major contract in MyanmarShrinking new orders obtained in this half compared to previous result announcement although total order book at historical high
For ISOTeam, investors are looking at realisation of growth potential in the form of more contract wins translating into improving numbers. Such is the nature …

What Has 2016 Taught Me/Reminded Me

It is year-end again, and typically, people review their life, thinking about what could have been done better, what went wrong, what good things happened. People also always look forward to a better year ahead. Such is human nature, no matter how bad (good) the year has been, we always remain optimistic and hope next year will be good (better).
Market had its fair share of exciting events and experienced some volatility. In perspective,  some of the market drops were significant, but not catastrophic. In Jan STI was down around 25% from recent peak of 3,500. Significant no doubt, but not that uncommon and catastrophic as some people or media described. I mean, compared to 08/09 this is quite mild.
With the wild-swinging market in 2016, it is even more important to hold on to solid investment principles or philosophies firmly, as these principles will guide us and help navigate through the choppy market. The more wild-swinging the market is, the more we need these principles to anchor…

Sembcorp Industries turning around soon?

The recent plunge in oil price has affected the oil and gas sector badly, which has rocked Semb Marine’s corporate performance. That, in turn, has dragged Sembcorp Industries’s earnings too, as marine business still contribute a significant chunk of Sembcorp’s revenue (about 45% as of Q3 2016). Sembcorp’s share price has not been spared and dropped more than 50% from $5.5 to $2.5.
However, under the doom and gloom has been a common narrative running behind the investment merit of Sembcorp: it is more than just a Marine company and it has a promising and growing utilities business that is well-positioned to capture the rising demand for energy and water treatment services among the emerging economies.
So, if an investor wished to capitalise on Sembcorp’s current depressed valuation/share price and profit from its turnaround in future that’s envisioned to be led by the utilities business, he needs to study the  performance of its utilities segment up till 9M 2016 to determine whether th…