Tuesday, June 30, 2020

Summary of my portfolio - Jun 2020

Mr CDxD portfolio

No.CountersNo. of Shares
1First REIT48,000
2HongKongLand USD19,500
3ST Engineering20,000

  • Sold 38,700 shares of Perennial on 15 Jun at $0.94. Total profit of $5555.62 (17.9%) in 2 years 2 months (Link)
  • $892.80 of First REIT dividend payout on 18 Jun (1.86cents/share)

Mrs CDxD portfolio

No.CountersNo. of Shares
1STI ETF via POSB invest Saver557

Apr 2020: 185 shares at $2.67                Cost: $498.37 (with $4.42 sales charge)
May 2020: 190 shares at $2.604             Cost: $498.87 (with $4.11 sales charge)
Jun 2020: 182 shares at $2.725              Cost: $499.96 (with $4.10 sales charge)

Tuesday, June 16, 2020

SOLD: Perennial (Jun 2020)

Sold my 38,700 shares of Perennial on 15 Jun at $0.94.
Total profit of $5555.62 (17.9%) in 2 years 2 months.

Reason for selling:
1) Privatize at $0.95

I wrote a blog post regard Perennial is going to privatize at $0.95 (Link).
This whole process will take a few months to complete.
It is worth unlock at $0.94 and reinvest the amount into another stock opportunity.

Related post:
4) Added: PERENNIAL (Mar 2019)

Saturday, June 13, 2020

Perennial privatize at $0.95

Perennial had released an annoucement on 12 Jun that they are going to privatize at $0.95 (Link).

I believe this will go through successfully given that the 4 major shareholders already own 82.4% (SGX required 90% to privatize).

Million dollar question is should existing shareholders vote YES or NO to this privatisation? 

At $0.95 offer price, this is only PB 0.6  (As of 31 Dec 2019 NAV $1.584).
From this angle, shareholders seem to be getting lowball offer.

Firstly: NAV should be higher now given the disposal completion of 30% stake in 111 Somerset and the most recent news of the disposal of AXA Tower occuring in 2020.

Secondly: More and more of their China HSR (High Speed Rail) projects will TOP over the next few years.

However, if there is no privatisation rumours (which result in the share price run up from around 45 cents to current 69 cents before trading halt), I believe the share price range will be around 40 cents max today.

Seeing the PB and dividend declare keep going downward, I also had lost my patience and partial sold my Perennial at a loss on 22 Apr at $0.43 (Link).
Well, I do not have the crystal ball and I still feel my sell decision made is correct at that point of time.

 Although this seem to be a lowball offer for shareholders (especially those who held this stocks for many years), I feel it is still a WIN WIN for both shareholders and the sponsors.

Shareholders finally can unlock their investment in current bear cycle and recycle their capital into another investment which will reap higher % returns in 1-3years timeframe (good quality stocks should rebounce faster than Perennial [Hint: HongKongLand (link) / STI ETF).

Quote from my Mar 2019 blog "I hope i am right to spot this hidden gem evolve to become a diamond ring in the next 3-5years time."

Related post:
3) Added: PERENNIAL (Mar 2019)

Sunday, June 7, 2020

What I had learned in term of Life and Financial during Circuit Breaker (CB) period

7th April 2020 is the first day of Circuit Breaker (CB) aka partial lockdown in Singapore terms.

1st June 2020 is the last day of CB.

56 days to be exact.

This 56 days affected everyone who lives in Singapore and will be in everyone memory who went through this.

1) Do not depend on single souce of income

During this period, some of us loses our job / pay cut / force leave / force unpaid leave.

It is very important to have second or more income sources in case the main income is compromise.

In Jan 2017, with the intention of finding a backup job in case I was being retrenched or tender without a job, I went to try out as Uber driver (Part 1 Link & Part 2 Link). I even went to attend course and sat for the exam in order to get my Private Hire Car Driver's Vocational Licence (PDVL) when LTA required all private hirer to have this PDVL from mid 2017. I am proud to say my PDVL is still valid as of today ;)

Although given current COVID suitation, I wont be able to survive with my PDVL as private hirer and taxi drivers are one of the worst hit industry too.

I am trying to bring out the concept of never depend on single source of income when quoting the example of PDVL.

One of my another income source, which I am putting in alot of effort for many years, is dividend.
I would like to achieve Financial Freedom so that if I were still in the workforce, that is because I choose to work and not become I need to work.

2) Cash and Cashflow is the KING

"2 in 3 here don't have savings to last past 6 months: Survey" (Straits Times link).

Living paycheck to paycheck is very dangerous although YOLO (You Only Live Once) sounds so damn cool.

It is a good time to review the type of loans and installments you have as this are money flowing out from your bank account monthly.

Recently, there is an image (I will insert here if I manage to find it) cracking a joke on how sleeping on bed can finally contribute to the Nation during this CB. This is only true during CB period only as the government required everyone to stay home. 

So, we should sleep less unless we receive income while we sleep.

3) Reduce your wants and focus more on needs

Wants are the most attractive temptation in life.
It require a strong mindset to achieve delayed gratification.

If you have too many unused wants are home currently which you did not even use them for 6 months or more, it is time to put them up in Carousell.

I am surprise by the numbers of items I managed to sell off and earn via Carousell.
If I were to just throw it down to rubbish bins, not only I harm the environment by not giving my preloved to find a new owner, I also throwing money down the bins.

4) Gaining knowledge and skillset

The World is evolving so fast that we need to consistently read and upgrade our own skillset to stay relevant.

We need to be able to Value add.

There are many good websites/blogs/articles/books out there regard to Financial Freedom such as:

5) Be Adaptable and accept Changes

COVID-19: Singapore Airlines to provide 300 'care ambassadors' to fill manpower gap at hospitals (Link)

Some house hunters buying homes after virtual viewings (Link)

Circuit Breaker: Koi To Sell Its Bubble Tea Via Online Restaurant Grain From Apr 28 (Link)

If you dont, this will happen to you
More F&B outlets close down as Covid-19 continues to pummel industry (Link)

More employees will be working from home (WFH) and companies are looking at reducing their office space as hot desking will be the upcoming trend. Do you still remember how uncomfortable and uneasy WFH when it first started and you should begin to adapt at this moment?

6) Everyone is equal in life

UK PM Johnson in good shape after COVID-19, says minister (Link)

Whether you are Prime Minister, President or Hollywood stars, you are the same and do not have the Trump card.

Some started life easier than others by borning into rich families.
Starting line do give you the advantage but how you complete the rest of the race will have to depend mostly on yourself.

Do add on to this list what you have learned / reflected during this CB period.

Related post:

Tuesday, June 2, 2020

Why I continue to renew with Tuas Power instead of other electricity retailers

I switched out from Singapore Power (SP) to Tuas Power almost 17 months ago.

As i signed up for Fixed plan 18 months contract 17.98cents/kWh (w GST), so this mean my contract will be ending next month.

I wrote an article about Open Electricity Market (OEM) and why we should choose Fixed plan instead of Discount Plan (Link).

Fast forward to today, I had made the correct choice.

Source: https://www.spgroup.com.sg/wcm/connect/spgrp/e0b9800a-c39b-4f41-8664-2bbe8e2ca826/Historical%2BElectricity%2BTariff_Oct+18%28w+GST%29.xls?MOD=AJPERES

All the 12 retailers are offering between 18% ~ 25.5% (Depending on the duration of your contract) for Discount Plan. 
For illustration purposes, assuming you managed to sign up for a 25.5% discount plan, the rate will be 18.35cents.

Thus, if you managed to sign up for a FIXED plan with rate lower than 18.35 cents, you had made a right choice.
There are many FIXED plan with rate of 17.98 cents and lower currently. 

Click here to read my previous post if you want see more statistic why Fixed plan is better than Discount plan.

OIL made headline in April 2020 when the price fell to NEGATIVE $37.63 (Link).
This is the first time in history that Oil turned negative.

As per EMA (Energy Market Authority), there is a portion of the tariff is tie with oil price (Link).

Before you got too excitied, WTI oil had went back up to current price of USD36.  

Due to COVID, alot of us are Working From Home / Staying at Home for longer hours than pre-COVID. 
Although the Circuit Breaker had ended today (YAY!!!!!!!!!), but the number of hours we going to stay in our home will be longer in this "New Normal" era.

So, if you have not switch out from SP Group to any one of the 12 retailers, this mean you are paying as high as 27% MORE for your electricity.

Do yourself a favour by switching out now especially when the economy is so bad at this moment.

What is my choice?

I will go ahead to renew with Tuas Power Fixed 36months 17.98cents/kWh plan.

Reasons being:
1) 14% saving in monthly electricity bills (Paying just 17.98cents/kWh instead of 20.97cents/kWh to SP Group)
2) I want to be able to deduct my Electricity + Gas + Water usage using U-Save voucher.
3) I want hardcopy bill free of charge
4) I do not want to pay for security deposit
5) Better value for money option
(i) I do not mind signing for a 24months contract. However, since Tuas Power have a 18months contract offering the same attractive rate (17.98cents/kWh) as other majority retailers who required to lock you down for 24 months
(ii) Given the shorter contract period, I will be able to jump to another retailers to enjoy "sign up bonus" and "attractive market rate" if Tuas Power failed to retain me as their customer. This is similar to our Telco mobile phone plans. For example: Singtel, M1, StarHub offering attractive port in bonus for you to jump ships to them (Sign up bonus) and ability to change from Combo plan to SIM only plan (Attractive market rate) only when your existing contract ended .
6) I am a Linkpoints customer. Tuas Power provide 1 linkpoint per every 8kWh usage. I love such recurring benefit.
7) I am a POSB Everyday cardholder. This allow me to get 1% cash rebate on my monthly bill.
8) 3 tiers of Referral program "Refer A Friend+".
The credit will offset directly to your monthly SP bill.
Tier 1: When you refer your friend Alice (Tier 1), you will get $20.
Tier 2: When Alice refers her friend Bernice (Tier 2), you will get $10.
Tier 3: When Bernice refers another friend Calvin (Tier 3), you will get $5.
9) Bonus Treats & Deals in your member portal "T+ Members".

Considering signing up with Tuas Power?
Please enjoy your extra $20 bill rebate if you use my referral code RCF2364 for online signup in TuasPower website
You will get $0 bill rebate if you did not key in any referral code.