QT Vascular IPO - upcoming IPO

Recently, the IPO fever seems to heat up again. While there are 2 upcoming IPOs, QT Vascular and PACC Offshore Services Holdings (POSH); the former seems to be down-played due to the lack of advertising and significantly smaller size.


QT Vascular produces devices to treat diseased arteries in the heart and elsewhere, aims to develop new products and enhance its existing ones. The company, which operates out of California and Singapore, registered revenue of US$1.5m for FYSep12, and doubled to US$3m in FY13. 

Current flagship product is a balloon catheter known as the "Chocolate" PTA balloon device, which is implanted to treat peripheral artery disease, or blocked arteries in the leg. It is the first Singapore-designed device to win approval from the US FDA. 

The company counts multi-national pharmaceutical company Johnson & Johnson, the Economic Development Board's Biomedical Sciences Investment Fund, and homegrown Juniper Capital among its major shareholders. QT Vascular is working with UOB Kay Hian and Prime Partners for the IPO.

Details of IPO
The company will list on the Catalist, with a placement of 196,429,000 new shares, at S$0.28 each. This translates to about S$50 million in proceeds, less fees. The offering is not made public and only Each of Three Arch Partners, BMSIF and J&JDC intends to subscribe for Placement Shares in the Placement.

QT Vascular will use S$5 million for commercial expansion and marketing purposes, while S$15 million will be used for new product development. The rest of the proceeds – S$30 million, will be used for general working capital purposes.

The IPO Prospectus can be found here.

Opinion of IPO

Since you are not able to buy it before it list in Catalist, should you buy after the IPO? IMO, it's a no-no. Just look at the continued losses it has been making.

Secondly, It doesn't even have a website!? Maybe it's only me who cannot find it though. Lastly, Biomedical technology companies similarly like Biosensors tend to fluctuate a lot based on the Patents and successful breakthrough next time. While it may work in the U.S. due to strong coverage, it may not bode so well for a rather small Catalist company like QT Vascular.


Why Money comes Later in Life...

If you have taken a chance to look at what my Fool.sg colleague, Ser Jing has mentioned in his post, You would kinda change your mindset on looking at how huge fortunes can be manifested with one word - Dream.

In the post, he talked about how many companies concentrate with a big dream be it like facebook (creating a social network for the world) or Apple (building great products with creative designs) and money will automatically flow into their pockets.

On another article by the Straits Times correspondent, Jonathan Kwok, he then mentioned about how some people should avoid following their passion if it does not equate to you making it big (something along the line). He concluded by saying that you should try to balance your personal interests and earning ability and you will be satisfied if you are good at something.

IMO, I will follow the mantra by the leaders of past eras to create the future ahead for me.

Like what Steve Jobs say, "would you want to regret living your life doing what people expect of you or doing what you love?"

Which one do you find meaning in? I have heard of many success stories from the newspapers where they started off part-time and eventually generate lots of money while doing something they love as well.

Body Shop is one famous example too where the founder wanted to make natural body soaps/lotions without chemicals that harm the earth. In the process of selling to millions of people, she became very wealthy as a result, a by-product from pursuing her passion. 

Hope this post will set you thinking for your good Friday tomorrow! I hope one day I will pursue my dreams & passion of educating the masses on how to get rich too! Cheers!


Why You should take Brokers' Analyst Reports with a Pinch of Salt

Conflicting Interests

If you have watched the "Wolf of Wall Street" Movie, the most significant takeaway is that people (not only stock brokers) are usually there for their own interests. When you know that a stock broker earns his pay-check by the commissions when you trade, you would have jolly well know that they will try all means to entice you to trade stocks in and out actively for their commissions to be as fat as possible.

Furthermore, they have the tendency to be slightly biased when the company is doing business with the bank they are working in too. That said, you cannot say that all of them are bad apples too. Some of them provide us with valuable and relevant stock information that are only available/accessible to them. My stock broker is one of them, everyday he sends me the forecasts and various reports.

However, ultimately I have to make the final judgement and decide whether to invest, according to my investment style. What he is doing is just to provide the information for me as a platform to filter through the stocks i want to look at. Thus, when you make money through their recommendations, you are happy and they will be happy too. However, if things turn for the worse, you cannot blame them as they are only providing recommendations - its up to you if you want to follow; and they are protected with disclaimers.

No crystal ball

When you see two different banks' analysis on a stock with different views, one say SELL, one say BUY, which one should you listen to? The following example below depicts the question relatively well...

Well, while analyst can do a detailed analysis of the firm using the same data set, different assumptions can lead to different results/outcomes. Neither one of them is wrong down here - they are just providing their viewpoint about where the stock price is going, a target price they say.

All in all, the lesson here is to educate yourself if you wish to be successful in stocks investment. And there is the slogan that goes - there is no free lunch in this world. You cannot expect to just buy into all the stocks recommended and think that you will become a millionaire at the end.


How Procrastination is not making you Rich

Procrastination can have a number of undesirable consequences, such as missed deadlines, wasted opportunities and sub-standard work as a result of insufficient time. The costs of procrastination, while substantial, are not easy to quantify.

But what can be quantified – at least to some extent – are the costs associated with putting off decisions and actions when it comes to personal finances and investments. Beware of such "financial procrastination," because the price tag of needless delay in this crucial area can be steep.

Five Costs of Financial ProcrastinationBroadly speaking, we can classify the costs of financial procrastination in four main areas: 

  1. Delays in investing
  2. Putting off routine investment decisions
  3. Tardiness in organizing personal finances
  4. Procrastinating on major financial decisions
#1 Investing Delays

Delays in putting your money to work through investments can eventually end up costing you a lot. Consider the case of two hypothetical investors, Mr. Invest-First and Mr. Play-First, who begin investing $2,000 annually at ages 30 and 40 in REITs, assuming that the annual return is 5% (rather conservative). By the time they turn 60, Invest-First's portfolio would have grown to about $132,878, twice the size of Play-First as Table 1 shows.

Annual Rate of Return 5.00% 5.00%
Period (years) 30 20
Annual Investment $2,000 $2,000
Total Investment (I) $60,000 $40,000
Total Value (V) $132,878 $66,132
Growth (V – I) $72,878 $26,132
Cost Of Procrastination$26,746

Of course, the fact that Invest-First invested an additional $20,000 over 10 years accounts for part of the difference in the two portfolios. But a substantial part of the difference – or $26,746 – can also be attributed to the compounding effect of the $20,000 for the additional 10 years that Invest-First has been investing. 

Another way of looking at this from Play-First's viewpoint is that this $26,746 in incremental growth represents his "cost of procrastination" for the 10-year period (recall that he commenced investing at age 40, rather than at 30).
#2 Putting Off Investment Decisions

Putting off investment decisions until the market "improves," or consciously delaying investing in a bid to "time the market," can also cost thousands of dollars over the long term. Many professionals view market timing as an exercise in futility, primarily because missing the market's best days can erode returns significantly. (Personally I am guilty of this too!)

One study shows that $10,000 invested in the S&P 500 on January 1, 1980, would have grown to $121,029 on June 30, 2008. But if the investment missed just the 10 best-performing days for the index over this period, it would have only grown to $70,745 or about 42% lower.

Another study shows that $10,000 invested in the S&P 500 for a 30-year period from January 1, 1979 would have grown to about $229,000 by December 31, 2008, or an 11.0% annual rate of return. Missing the best 20 months over this time-frame would erode the value of the investment to approximately $42,000, or 4.9% annually.

Sometimes, the best way out can be the easiest way too. And that one solution would be to make periodic investments through an automatic plan (we term it as dollar-cost averaging) rather than through a lump sum to avoid missing out on days when financial markets are on a red-hot streak.

3. Tardiness in Organizing Personal Finances

Getting your financial house in order is a vital area that may tend to get overlooked in the hustle and bustle of daily life. In some cases, this tardiness may have a direct opportunity cost - for example, a $50 gift card that you delayed using for two or three years until it was well past expiry. In other cases, procrastination may have a relatively minor effect at first, but may have a cascading impact that gets magnified over time.

One popular example, would be the tendency in delaying paying of bills and incurring late charges or interest costs. On top of these financial penalties, it may also lead to a bigger impact to one's credit profile and credit score.

A couple of minor bills that you never got around to paying can eventually end up as a red flag on your credit report. Lenders who view your credit report may then view you as a higher-risk borrower, and charge you a higher interest rate to compensate for this perceived greater risk. 

This can result in thousands of dollars in higher interest costs for big-ticket items such as a house or a car, a steep price to pay for procrastinating on a couple of bill payments.

#4 Procrastinating on Major Financial Decisions

While the preceding cases can cost in the thousands, procrastinating on major financial decisions can ultimately cost you the most.
Procrastinating on major financial decisions may lead to a number of pitfalls such as:
  • Making hasty decisions without adequate research
  • Having insufficient time to read and analyze the "fine print" in contracts
  • Not having adequate insurance coverage or assets in times of need
Buying an overpriced condo without assessing its investment merits; being unaware that one's adjustable-rate mortgage will reset to an interest rate that is twice the teaser rate; being struck down with a debilitating illness when one does not have long-term disability insurance. 

These are all examples of unfortunate financial situations that can wipe out a massive chunk of one's bank balance and net worth. However, doing one's homework and taking prompt action can help avert or at least mitigate these losses.


Time is indeed money when decisions have to be made and actions taken with regard to your personal finances and investments. In this regard, prompt action needs to replace financial procrastination, since the costs associated with the latter can be very steep.

Hope you like my post! You can receive more regular updates by "Like"-ing my facebook page at www.facebook.com/kissinvesting. Thanks & HUAT AH!


Learn the Habits of the Millionaires!

Saw this from a website and it is really worth a share! You can click here to see it in a bigger picture!

How to earn passive income from REITs

Most often than not, people are lazy to get started learning about investments but know the importance of saving for the long term. 

Thus, many of them usually put their hard-earned money into safe instruments like bank deposits, fixed income; with insurance being the most commonly utilized to grow their wealth.

While they are generally safe, the returns they offer are so little that you cannot even cover the inflation rate of 4% in Singapore! As a result, many people have flocked to the world of REITs, known as Real Estate Investment Trusts, for higher returns. They offer distribution yields averaging 6% with the highest reaching almost 10%!

What is a REIT?

A REIT is a company that mainly owns, and in most cases, operates income-producing real estate such as apartments, shopping centers, offices, hotels and warehouses. Some REITs also engage in financing real estate. The shares of many REITs are traded on major stock exchanges.
To qualify as a REIT, a company must have most of its assets and income tied to real estate investment and must distribute at least 90 percent of its taxable income to its shareholders annually. A company that qualifies as a REIT is permitted to deduct dividends paid to its shareholders from its corporate taxable income. 
As a result, shareholders of REITs are usually entitled to stable distributions as REITs have to honour this tax preferential treatment which do not require them to pay income tax.
Why are REITs so popular?

  • The first thing why people look at REITs is usually because of its steady distribution yield.
    It is even more so for semi to full retirees like my dad. The picture on the right shows the annual reports he received from owning them.

    Heeding my advice, he bought into many REITs on the aftermath of the U.S. subprime crisis, and sits on some multi-bagger capital gains and juicy dividend yields based on the low share prices when the purchases were made.
  • No Hassle. People may ask why they should buy REITs instead of property. The main point is this, when you buy property, you will need to rent out it. Having disastrous tenants may offer you the worst nightmare. On the other hand, when you buy REITs, you are taking advantage of the experts to handle everything there can be.
In my next article, I will touch on how to choose the right REIT that fits you as well as explaining the different types of REITs. Hope you like my post! You can receive more regular updates by "Like"-ing my facebook page at www.facebook.com/kissinvesting. Thanks & HUAT AH!


Why the rich get richer by utilizing these 3 Assets

Have you ever wondered why the rich keep getting richer and the poor get stuck in a rat race (the pendulum circle rats keep running in)?

This is especially so when they have the same 24 hours as you do? It is because they utilize leverage in an efficient manner such that they can accomplish much more in the same amount of time that you have.

3 types of assets you see the rich own:

1) Businesses - they leverage on people working for them while they think on how to expand the biz to make more $$!

2) Properties - they leverage on people paying rent to help them "pay" for their properties (after paying the downpayment; the property is theirs after the instalments are paid fully by their tenants!)

3) Stocks - They leverage on the skillset and capability of the companies to continue growing and as a result, they pay out dividends and capital gains back to the investor~
An example is how Warren Buffett really owns businesses but not trade on them.

Thou shall remember: Price is what you pay; Value is what you get.

So now own these assets and start geyting rich!


What do the Stock RMK (remarks) mean?

During the past week, I have one colleague vested in Olam and she got a shock when a "H" suddenly appears in the "Rmk" column just beside the stock code. I told her that the management team is requesting a trading halt to make an announcement; and the stocks will resume after the request is lifted once more.

She panicked again, asking if it is bad news. I teased her saying it may be; whereas it can be either good or bad. Fortunately, it turns out to be an acquisition from Temasek's subsidiary! In the end she profited handsomely from the deal. haha.. happy for her.

So what actually do the abbreviations in Remark (Rmk) column denotes? According to the I touch on a few common ones below:
  • CD - means with dividend. A Dividend has been declared but not paid.
  • XD - Ex-dividend date signifies that the dividend has been paid out. Thus, you must buy the stock from the period [CD to one day before XD] to be entitled to the dividends.
  • H - Trading Halt [A temporary suspension in the trading of a particular security on one or more exchanges, usually in anticipation of a news announcement or to correct an order imbalance. A trading halt may also be imposed for purely regulatory reasons. During a trading halt, open orders may be canceled and options may be exercised.]
  • SUSP - It means that the shares are suspended indefinitely on a case-by-case basis, usually pending investigations. In the local context, many china stocks have been suspended before. E.g. China Hongxing.

As you can see from the list beside, there are still many other remarks to learn for stocks investing. Nevertheless, you do not have to worry so much. Stocks investment is an on-going journey, what matters most is that you are willing to keep an open heart to learn as you go along. Google is always there to help out!


6 Steps to take when you "tio" Toto or 4D!

Note: This article is from J.D. Roth, who founded Get Rich Slowly in 2006.

When my father died in 1995, he left behind a small life insurance policy that awarded each family member $5,000. It wasn't much, but it was the best he could do based on the fact that he had cancer. He hadn't been much of a planner, and hadn't been good with money, so that $5,000 per person was actually a significant amount.

At the time, I was deep in debt. I had over $20,000 in credit card balances, and was gradually adding more all of the time. If I'd been smart, I would have taken the proceeds from my father's life insurance and used them to immediately repay $5,000 in debt. But I wasn't smart.

I used $1,000 to pay off debt (and patted myself on the back for it), but spent the rest on a new computer, software, and accessories. It didn't take long to realize that this was a dumb decision.

You see, when you receive a windfall, whether it's a tax refund, an inheritance, a gift, or from any other source, it's like you've been given a second chance. Although you may have made money mistakes in the past, you now have a chance to fix those mistakes (or some of them, anyhow) and start down the path of smart money management.

It can be tempting (as I well know) to spend your windfall on toys, trips, and other things that you "deserve," but doing so will leave you in the same place you were before you received the windfall. And if that place was chained to debt, you'll be just as unhappy as you've always been.

If you receive a chunk of cash, I recommend that you:
  1. Keep 5 percent to treat yourself and your family. Let's be realistic. If you receive $1,000 or $10,000 or $100,000 unexpectedly, you're going to want to spend some of it. No problem. But don't spend all of it. I used to recommend spending 1 percent of a windfall on yourself, but from talking to people, that's not enough. Now I suggest spending 5 percent on fun. That means $50 of a $1,000 windfall, $500 of a $10,000 windfall, or $5,000 of a $100,000 windfall. Don't be tempted to spend more!
  2. Pay any taxes due. Depending on the source of your money, you might owe taxes on it at the end of the year. If you forget this fact and spend the money, you can end up in a bind when the taxes come due. Consult a tax professional. If needed, set aside enough to pay your taxes before you do anything else.
  3. Pay off debt. Doing so will generally provide the greatest possible return on your investment (a 20 percent return if your credit cards charge you 20 percent). It'll also free up cash flow; if you pay off a card with a $50 minimum monthly payment, that's $50 extra you'll have available each month. Most of all, repaying debt will relieve the psychological weight you've been carrying for so long. Don't underestimate the feeling of freedom that comes from no longer having creditors.
  4. Fix the things that are broken. After you've eliminated any existing debt, use your windfall to repair whatever is broken in your life. Start with your own health. If you've been putting off a trip to the dentist or a medical procedure, take care of it. Do the same for your family. Next, fix your car or the roof or the sidewalk. Use this opportunity to patch up the things you've been putting off.
  5. Deposit the rest of the money in a safe account. It can be tempting to spend the rest of your windfall on a new motorcycle or new furniture or new house. Don't do it. Take some time to breathe. After attending to your immediate needs, deposit the remaining money in a new savings account separate from the rest of your bank accounts. Be sure that the account is as difficult to access as possible -- no ATM card, no easy transfer to your other accounts, no nothing.
    [On a side note, IMO, the rest of the money can be better invested in ETFs or even insurance in the long run, guaranteeing you a large sum of money as your nest egg in the future with minimal risks involved]
  6. Make a wish list. Allow your initial emotion to pass, getting over the urge to spend the money now. Live as you were before. Meanwhile, spend some time learning how far your windfall could go. Most people have unrealistic expectations about how much $10,000 or $100,000 can buy. Resist the temptation to spend the money now, but do run the numbers to see what you could buy.
In the end, it's often best to take the remainder of a large windfall and invest it for growth.

You've already repaid your debt and fixed the things that are broken, both of which are methods to spend on your past. You've also used 5 percent to treat yourself and your family, which is money spent on your present. The smartest move with the rest of the money is to spend on your future by funneling the funds into an investment account. (If you don't know how to do this, consult an investment professional.)

When I sold Get Rich Slowly in 2009, I received a large windfall. The old J.D. would have gone crazy with the money. The new, improved model of me was prepared, however, and made measured moves designed to favor long-term happiness over short-term happiness. Yes, I spent some money on new furniture and a trip to Europe. But I also set aside money to pay my taxes and to fix the problems in my life. (I was 50 pounds overweight in 2009, so I allocated $200 per month to becoming fit.)

Today, the bulk of my windfall still sits in the same place it's been for the past five years: an investment account. When first I put the money there, I thought I might use it for something in the not-so-distant future. That didn't happen, and now I've had time to get used to the idea that I have a large chunk of money that can act as a sort of "personal insurance." That cash eases my mind. It helps me sleep easy at night. And that's more rewarding than spending it on new toys could ever be.


What to learn from the Founder of Million-dollar Game - Monopoly

Let’s take a look at the life of a man who has been attributed as the first game inventor to become a millionaire.
Charles Darrow was an unemployed salesman and inventor living in Germantown, Pennsylvania, who was struggling with odd jobs to support his family in the years following the great stock market crash of 1929. Remembering his summers spent in Atlantic City, New Jersey, Charles spent his spare time drawing the streets of Atlantic City on his kitchen tablecloth, with found pieces of material and bits of paints, wood etc. contributed by local merchants. A game was already forming in his mind as he built little hotels, houses and other tokens to go along with his painted streets.
Soon friends and family gathered nightly to sit around the kitchen table to buy, rent and sell real estate, all part of a game involving spending vast sums of play money. It quickly became a favorite activity among those with little real cash of their own.
The friends soon wanted copies of the game to play at home (especially the winners.) The accommodating inventor began selling copies of his board game for four dollars each. He then made up a few sets and offered them to department stores in Philadelphia. Orders for the game increased to the point where Charles decided to try to sell the game to a game manufacturer rather than going into full-scale manufacturing.
He wrote to Parker Brothers to see if the company would be interested in producing and marketing the game on a national basis, but the company turned him down, explaining that his game contained “three fundamental errors” including: the game took too long to play, the rules were too complicated and there was no clear goal for the winner.
Undeterred Charles continued to manufacture the game, and hired a printer friend to produce five thousand copies. He had orders to fill from department stores including F. A. O. Schwarz.
One customer, a friend of Sally Barton, daughter of Parker Brothers’ founder, George Parker, bought a copy of the game. The friend told Mrs. Barton how much fun Monopoly was, and suggested that Mrs. Barton tell her husband, Robert B. M. Barton, who was the then president of Parker Brothers. Mr. Barton listened to his wife and bought a copy of the game.
Not long after he arranged to talk business with Charles in Parker Brothers’ New York sales office, offering to buy the game and give him royalties on all sets sold. Darrow accepted and permitted Parker Brothers to develop a shorter variation of the game, added as an option to the rules.
The royalties from Monopoly made Charles Darrow a millionaire, the first game inventor to make that much money.
So what can we learn from this?
Here are ten million dollar ideas drawn from the example of Charles Darrows…
  1. Think – Take time to think. Pause from your busy life and think.
  2. Identify – Identify a problem and seek a solution. Stay alert.
  3. Explore – Delve into new areas of thought with fresh eyes. ‘Livingstone, I presume?’
  4. Doodle – Keep a journal and write down ideas whenever they come into your head. Keep a record.
  5. Review – Go over your records of old ideas. There is a season for ideas. It may have been winter the last time you looked, but now it may just be spring.
  6. Experiment – Try things. Don’t discount anything until you have exhausted all the possibilities and then some.
  7. Brainstorm – Pull together a team and throw up your ideas. Write down what your team comes up with. This is the place for idea multiplication.
  8. Initiate – Don’t wait for a publisher to recognize you. Self-publish. Charles Darrow created the game long before the ‘big guys’ ever noticed.
  9. Twist – Look at existing ideas and add your own unique twist to make it faster, smoother or better. There is always another way.
  10. Succeed – Turn recess into success by just staying committed to yourself and your ideas.
With those ten ideas activated you will be in a position to turn any recession into a powerful succession.
And when it comes to succession – participate!
information source: en.wikipedia.org/wiki/Charles_Darrow
Post written by Peter G. James Sinclair.