Thursday, June 30, 2016

Added: VICOM Limited

Added 2700 shares of VICOM today at $5.75/units.
In total, I have 4,700 VICOM shares now :)

1) VICOM have zero debt and is sitting on $107.4million in cash as of Q12016 (A cash rich company)
2) VICOM paid out bi-yearly dividend. Expecting Aug16 dividend to be at least $0.0875/shares (1.5% of dividend upcoming based on $5.75/units)
3) VICOM take good care of their shareholders (well, they can afford too). Even though Revenue for Q22016 is likely to be lower YoY, but I don't expect them to dish out lower than $0.0875/shares dividend in Aug16. As per their past track record, their dividend have been increasing YoY even though there is a slight slip in revenue in 2015 thanks to their huge cash reserve and zero debt status. My guess will be $0.1025/shares of dividend to make Total Dividend per share at $0.30 for 2016.
4) Current price of $5.75 is quite close to their 52wks low ($5.69). Market had already priced in for the expected lower Revenue in 2016.
5) Daily trade volume is not high. Therefore, you wont see huge swing in stock price even in STI bull/bear (Stable stock for Keep Cool & Collect Dividend).
6) Satellite-based ERP to be ready by 2020. All cars will need to replace their existing In-Vehicle Unit (IU) to new On-Board Unit (OBU). The Gov will fit the one-time IU replacement cost. $$$$$$ for VICOM in the pipeline (Good for those long term shareholder) Source
7) VICOM have not increase their inspection fees since 2006 . Should they increase it, additional revenue can hold off the decrease in the number of registered cars which is currently at a five year low at the end of 2015 Source 
8) No matters how worst SG economy is, our dear LTA will send customers to VICOM automatically as it is mandatory by laws for all vehicle to be inspected
9) In current looming economic and high COE price, public car park charges to increase from Dec 2016. The last revision of parking charges was in 2002, 14 years ago. This add on additional already heavy burden to car owners which might let them think of getting an old car (3 years onward) instead of brand new car. Source

Wednesday, June 29, 2016

Killed my golden goose - Capitaland Mall Trust

CMT is always my favourite golden goose in my portfolio. It had been hovering around $2 - $2.20 range for the past few month. I killed it this morning with a sell price of $2.15. I believe the price will go higher given that its going into CD status next month.  

Reasons for killing:
1) The capital gain is enough to cover my next 2 years of dividends
2) The PB ratio is at 1.16 currently (Abit on the high side given there is good reits PB is under 1)
3) Funan contributed 4.3% of the Total Gross Revenue in FY 2015. With the closing of Funan on 30th Jun, expecting the Total Gross Revenue to drop around 2% in 2H16.
4) The price went up sharply (7.77%) within 3 days. Whatever goes up must come down given the #BRExit, any slight negative news will cause the price to tumble back down.
5) Too many negative news regard to empty shopping malls in Singapore.
For example in today Straits Time, 1 Market by Chef Wan closes its door (Plaza Sing).

So here I am, camping at the sideline currently hoping to buy back CMT real soon with a Target price at $1.9X

Monday, June 27, 2016

Thanks to #Brexit, the exchange rate is currently 1GBP = 1.79SGD (Double WOW!!!!)

Its time for UEFA Euro2016 and majority of the peeps are expecting low volume in the stock market due to catching the Euro Fever (Me included). I thought I can fully focus and enjoy the matches till...................................

An unexpected storm occurred on 24th Jun that caught everyone offguard - #Brexit.

Thanks to #Brexit, the exchange rate is currently 1GBP = 1.79SGD (Double WOW!!!!)
Unfortunately, we cant get that rate at our money exchanger now. So let all be patient and wait for a few more days to enjoy this double WOW rate :)

If you are wondering why, Straits Times have a good article to explain this : Click here to view it