New addition!

Source: todayonline.com

Shared my humble portfolio of SGX counters, it is updated every evening (7 or 8pm). Scroll down all the way to the bottom to see. Enjoy.

Welcome comments and discussions.

Cheers!



Credits to sgxcafe.

ARA Asset Management: Updates from the AGM April 2016

If you have not read my last Investment Idea post, follow the link.

Updates from the latest AGM

Stable business

1. The board of directors are rather confident in the company, some have bought shares recently using their own money.
2. CEO assured that core business is REIT management, which generates recurrent income unless ARA loses position as manager.
3. Has been overperforming in terms of Assets under management (AUM) growth, vision to hit 40 billion AUM in near future, which CEO deem is world-class.

Drivers for growth

1. Trend that money from within South Korea, China and Hong Kong are moving out of  their country for investments. ARA is benefiting from this trend with their private funds set up in these countries.
2. Currently also making progress in Australia using the same strategy.

CEO's reply to query on last rights issue

Image source: forbes.com

1. The funds raise are not to clear debts but expansion.
2. Used as seed capital in REITs and private funds.
3. Seed capital is relatively low at <2% compared to competitors' 4%.
4. If never raise capital, would be to cut dividends.
5. ARA is asset-light company, so does not enjoy easy loans from banks.

Guidance on dividends

Image source: nasdaq.com

1. CEO admits that payout ratio is high but is committed to maintain 5cents per year for dividends.
2. The Board will consider shareholder's suggestion of scrip dividend option, where dividends are paid in terms of shares.

Investment Ideas (April 2016) - ARA

ARA Asset Management (D1R:SGX)
D1R Google finance Summary
Current price: 1.16
Expected Dividend yield: 4.3%
Trading plan: Buy and hold long term @ below 1.10

Background

ARA Asset Management Limited (“ARA”) is a premier integrated real estate fund manager in Asia. It manages familiar names like Suntec Reit.


Why I buy?

1. Gives exposure to reits 
2. Stable and sustainable dividends at $0.05/year 
3. $1.00 is psychological support level. Plus that is also the price of the latest rights issue 
4. Last FY results was a bit of a confidence booster amidst the equities selloff in Dec-Jan.

Disclosure: Already vested below 1.10, am looking to increase holdings should it fall below 1.10 again. So, if you are new to this counter and current price feels good to you, feel free to go ahead and buy. There is much potential for upside for price. DBS set a TP of 1.5X early this year.

That's my investment idea this time round, DYODD.

Investment Ideas (March 2016) - Cache Logistic

Since there isn't that many module reviews to write about, I would post writings on things that I am interested in from time to time. In this post,  I will present a share counter which potentially hold the key to unlocking better rewards than SGD time deposits.

Cache Logistic Trust (K2LU:SGX)

K2LU Google finance Summary

Current price: 0.840

Expected Dividend Yield: >8%

Trading plan: Buy & hold at least 1 year

Why I buy?

I would love to accumulate Cache at below 0.850, especially below 0.830. The dividends for FY16 (this year) is not expected to decline much, meaning the high div yield will provide a strong support for the price in 2016. The REIT acquired new properties in Australia last year which will strengthen the distribution per unit (DPU). In Singapore, it also has a newly developed DHL Supply Chain Centre will increase its revenue. If one is optimistic on global economic performance in 2016, the current price has got to be a bottom. So are you optimistic? Personally, I thought this would be an investment which I will not regret regardless of market upturn or downturn. Meanwhile, I am still in the process of nibbling (did not lump-sum buy) Cache... All in all - fat dividend yield with limited risk.

Any questions?

Leave a comment below. I am not well-equipped to answer "expert questions" but layman discussions would be no problem. Look out for more of my stock picks from this blog in the future!

Caution: Stock market is risky and I am not to be held responsible for any losses incurred as a result of following my trading plan. I am only responsible for my own money, so are you.

Module Review Year Two Sem 1 (AY2015/16)

Yay! Finally not freshman anymore.

I have been slacking much this sem, much to the extent that I won't be able to give proper reviews like the past two semester. Lazy to churn out reviews now too.

Will keep this post reserved for future updates, if one day I am able to feel strongly about the modules to give reviews. :D

Update: 24 Dec 15 >>>>Added module reviews
Update: 16 Apr 16 >>Deleted Grades attained
Modules for this semester...

Module Title		MC
IE2101	Introduction to Systems Thinking	4
IE2110	Operations Research I	4
CS1020E	Data Structures and Algorithms	4
ES2331	Communicating Engineering	4
no review	GEM/SS//UEM/Breadth	4
TOTAL		20

IE2101 Introduction to Systems Thinking

First thoughts on this module, lost and still lost. There are no tutorials but tutorial sessions are conducted once in a fortnight. There are long lab sessions in SMAL Lab and another computing lab, once in a fortnight. You will use software iThink to complete the lab assignments in groups of 3. These assignments are graded and returned+discussed during the tutorial sessions. Before you start cursing and swearing, I actually got a decent B+ for this.

I guess I am lost because IE2101 is not a typical module I would 'choose' to take. The concepts on systems thinking are abstract (i.e. no textbook approach to solving a problem using systems thinking.) No mathematical formulas, no scientific theory. Basically, you are taught how to use iThink and that you need to identify factors leading to the main 'stock'. Quote//Stock – entities that accumulate e.g. money. //Unquote. Then, you are left to complete a project in your group of 5. Project comprises of an interim report 1, detailed report 2 and oral presentation 3. 1 is the least important, just introduce your project to the prof. 2&3 are co-graded with CELC. My advice is to force yourselves to complete the project progressively.

Lastly, there is an end of term quiz which is easy if you have been following the labs (or at least bother to read through what your group mates did).

IE2110 Operations Research I
Topics covered:
Part 1 by Prof. Adam Ng

• Intro to Linear Programming (LP),
• Solving LP by graphical methods and excel,
• Simplex Algorithm- Simplex tableau, Artificial variable, Big M method, Two-phase method,
• Sensitivity Analysis and Duality.

Part 2 by Prof. Ng Kien Ming

• Transportation problems- NW corner method, Minimum cost method, Vogel's method, Transportation Simplex,
• Assignment problem,
• Network models- Shortest Path using Dijkstra's Algorithm, Max-flow using Ford-Fulkerson method, Project scheduling using Critical Path, Minimum Spanning Tree Algorithm,
• Non-linear Programming (NLP)- Convex/Concave functions, Matrices.

Mid-terms test for Part 1 but will still be tested in finals. CA consists of regular assignments to be completed by groups of one to three members (have to be the same group throughout semester), and a term paper by groups of six. I enjoyed this module. The course is well-structured and Prof. Ng K.M. teaches very well. I attended all lectures since there were no webcasts. Taking notes is important! The ppt slides does not clearly explain the algorithms, you got to write down step by step for your reference.

My only regret is doing a last minute revision. I only started finals revision for this the day before IE2110 exam. Managed to to complete revision but no time to try past year papers... This C+ is a thorn in my heart because I seek average grades. Anything lower than B is a heartbreaker.

CS1020E Data Structures and Algorithms
Teaches Object-oriented programming (OOP) using C++ by Prof. Tan Sun Teck. He is the best Prof. I have seens so far. He spent endless hours out of class to conduct voluntary help sessions. I attended most and found them very useful as revision for finals. The chief TA, Ivan, also spent many unofficial hours to conduct help sessions.

Progressive learning is needed. At the bare minimum, you should complete the graded take home lab assignments. For me, I attempted ALL take home lab questions, though some incomplete. The tutorials are quite difficult, I did not do most, not even review them for finals. I did well for almost all labs including the final Practical Exam.

I did badly for mid-terms but kind of scored average. For finals, I did all the qns I could do but still left many blanks. Feeling salty of my grade... if the module is solely based on practical assessments, I would have gotten an A. Least did I expect to get a grade below B+!

ES2331 Communicating Engineering
This is a CELC module exclusively offered to Engineering undergraduates. It is compulsory. Very light workload, just attend classes to talk. No need to take notes (or just pretend to be taking). You learn the importance of communication. CA all the way and class participation marks are quite useful when you need to pull grade.

Major assessment is on CEP 1 and CEP 2 tasks.

CEP 1. In groups of three, interview an engineer with voice recording. Nope, this is not graded, just a prelude to CEP 1. However, please do not be a sucker to feed on your teammates because there is peer review for it to affect your class participation marks. The information gathered from the interview will be used to prepared for a panel discussion (the CEP 1). All interview transcripts will be made available on IVLE. You will be required to cite your sources during the discussion.

CEP 2. Prepare a presentation consisting of persuasive speech on a topic related to engineering. It was fun preparing the slides. Imagined myself as a communication master who would use all possible tactics to achieve my objective of manipulating the minds of my audience. Please dress formally (blazer is optional), although smart casual is 'said' to be accepted.

Feel free to leave a comment if you are seeking something which I have not addressed.

First Step to Investing- ETFs

Hi readers,
This post is 1 week late from when I promised. Let's move on...

Most student does not have much savings in cash. It is perfectly fine, investment can start from $100! Today, I will be introducing the Exchange Traded Funds. This will not be a technical lecture on each ETF but it is sort of a walk-through for you guys to follow and get started. I am proud of myself because I self-learnt all these and more in 3 months summer vacation.

Intro to ETFs
Exchange traded funds aimed to mimic the performance of indices, for example the Straits Times Index. It resembles unit trusts but could be traded on SGX, unlike unit trusts. ETFs hold assets. Let's take G3B (Nikko AM STI ETF) for example. G3B holds shares belonging to several blue chips listed on SGX. These counters are also major components in computation of the STI. By buying units of G3B, you are indirectly investing in those blue chips. Like any other counters, G3B pays dividends as well.

How to buy ETFs?
I strongly recommend you to start with an ETF, preferably Singapore market. I believe there are only 2 ETFs that tracks STI, G3B and ES3. Both should be equally safe and yields almost the same profits but I choose G3B because it is offered under Regular Savings Plan of POSB/DBS.

This RSP is currently charging 1% sales fee on each purchase of G3B. You decide the monthly investment amount, starting from SGD100. There are no management fees and when you want to liquidate your holdings, the 1% fee does not apply. You may enrol/terminate/adjust the RSP anytime through ibanking. This method employs dollar-cost-averaging strategy, which eliminates the requirement to "spot" the correct entry price. Having such an arrangement is very convenient, no need to think much, just keep track and review annually.

I recently convinced myself of a better method to get invested in G3B. Using the SCB (Standard Charted Bank) trading account. Just bring your IC and head down to any branch to open accounts. Just tell them you want to open a trading account. Please note that a compulsory opening of esavers account is required if you are not a current SCB customer. New T&Cs, from 28 August 2015, we have to maintain average daily account balance of minimum $1000 in esaver account to avoid $2 fall-below fee. Literally just park $1000 in it and don't touch will do. If you have problem coming up with this extra $1000 to park, stick with DBS RSP first. The catch of SCB trading account is that it does not charge minimum commission on all trades! Other brokers are charging $18 to $25 per trade. SCB charges 0.20% per trade, which allow us to do DCA with even lower cost than the RSP. We can also have some control over the time of entry while RSP die die have to purchase every 13th of the month. However, min trade lot size is 100units. Taking current price of G3B at $3.26, that would be $326 per trade instead of a lower $100 using RSP. I will reduce my trading frequency to accommodate my limited cash balances...

Of course, there is another hardcore method to buy ETF. This one will suit the rich kids. Do your own maths, min broker's commission is $25. The good part is, you get to keep the units in your CDP account. Not like it can yield higher profits but you will not be exposed to the bankruptcy of SCB. The probability is very low, so I took the 'risk'. By the way, SCB does not offer CDP linkage. All shares are under the bank's custodian account. This means you will be unable to get invitation for AGMs and hard-copy statements. All statement are published online, so fear not.

My next post should be covering either REITs, Dividends or Blue Chips.

Thanks for visiting my blog. Feel free to ask any related questions in comments.

Signing off.

Financing in your Uni Life.

Hello to All!

Since there are not that so many module reviews to write, I might just share anything that might interest you readers. This time, it is about personal finance for undergrad students. Below are some topics I shall cover but not limited to these.

1. Planning for tuition fees?
2. Work & study?
3. Managing your money,

It time for me to sleep, stay tuned for my next post by this weekend.

Yours,

JiakBaVehFree