SGX Stock Competition 2012

A veteran Stock Trader? A new comer learning the ropes on how to invest?

It doesn't matter where you come from or who you are! Because there is REAL MONEY to be made in this Stock Competition!

SGX is now holding a stock market compeition and there are really attractive prizes to be won.. $_$

Sounds like i am advertising for them... but No. Haha, i am just excited about joining it because i used to win competitions held by other brokerages :)

Cheers and have fun! Anyway, Registration is from 30 July 2012 to 31 October 2012. So do register and join me in the game! :)

Support me at my facebook too can? Thanks!


How 'Death' can be Awakening

I was planning to skip blogging during this weekend but i suddenly feel like paying my respects to Dennis Ng, Author of personal finance books and Creator of Masteryourfinance.com.

He is a great guy and offer lots of great financial advice to people around him. 

Feels quite sad for him especially when he still have so much more to offer at only a mere 40+ age.

He also made me think of Steve Jobs and his quote on Death below:

"Almost everything--all external expectations, all pride, all fear of embarrassment or failure--these things just fall away in the face of death, leaving only what is truly important. Remembering that you are going to die is the best way I know to avoid the trap of thinking you have something to lose. You are already naked. There is no reason not to follow your heart."

It seriously made me ponder on what I have to do in my life and how to add value to the people around me.

My goals:
  1. Be either Portfolio Manager in my Career or start up a business like Motley Fool giving newsletter subscriptions and eventually even setting up their own funds!
  2. Buy a Car for my and my wife's families usage (I know owning a car is expensive in Sg, but I always cringe when i see mothers having to care for their children on public transport and I want to make them smile = Personal Preference)
  3. Give back to Society - It also makes me sad when i see many elderly having to work or sell tissue papers at their old age when they are supposed to enjoy a comfortable life towards their final journey.
Lastly, I will also want to leave a legacy behind just like how Dennis Ng and Steve Jobs did. It doesn't matter how long you live, but what you have accomplished and contributed to the people around you that matters. With that, I will work even harder towards my goals!


BUY Noble Group @ 1.04 on 28/7/2012

After the Positive News from European Central Bank Chief that he is vowing to protect the euro, stocks shot up sharply higher in Europe and US by 1+%.

Not wanting to waste this chance of optimism, I look around my familiar ground scanning for growth stocks.

As i looked through the list of Top 20 volume in SGX website, Noble Group caught my eye with a small increase of $0.005. What was really interesting is that its share price has originally been dropping non-stop and now showing signs of turn-around!

I plugged into ChartNexus and saw that RSI was at 18.2 (Anything below 30 = oversold) and it is bouncing back to the long-term support line of $1.052.

I went to check out the Analyst Reports at Reuters and got the info below:

Much as i do not like following Analyst Reports, when none of the 20 analyst gave "Underperform" or "Sell" comments, I believe it is an added bonus for my trade (We have to face it, many people still base their stock picks on analyst reports without doing their own research).

Coupled with the Positive market sentiment which i believe will continue at least for a few days (since US is also having better-than-expected economic reports); Noble Group Limited is a good one.

Hope you like my post and can do me a favour by "Like"-ing my facebook page at www.facebook.com/kissinvesting. Thanks & HUAT AH!


Joke of the Day!

A Chinese man walks into a bank in New York City and asks for the loan officer. He tells the loan officer that he is going to China on business for two weeks and needs to borrow $5,000.
The bank officer tells him that the bank will need some form of security for the loan, so the Chinese man hands over the keys of his new Ferrari parked on the street in front of the bank. He produces the title and everything checks out.
The loan officer agrees to accept the car as collateral for the loan.
The bank’s president and its officers all enjoy a good laugh at the Chinese man for using a $250,000 Ferrari as collateral against a $5,000 loan. An employee of the bank then drives the Ferrari into the bank’s underground garage and parks it there.

Two weeks later, the Chinese man returns, repays the $5,000 and the interest, which comes to $15.41. The loan officer says, “Sir, we are very happy to have had your business, and this transaction has worked out very nicely, but we are a little puzzled. While you were away, we checked you out and found that you are a multi-millionaire. What puzzles us is, why would you bother to borrow $5,000?”
The Chinese man replies: “Where else in New York City can I park my car for two weeks for only $15.41 and expect it to be there when I return?”


One of the World's Safest ways to Trade

Kissinvestor Input:
Got this Article by some email subscription... I find that its really a good way to earn some side income while the market is whip-sawing now... So here it goes:

Why This Is Our "Greatest Wealth Secret"
By Amber Lee Mason and Brian Hunt, DailyWealth Trader
Monday, July 23, 2012
We call it "S&A's greatest wealth secret"…

It's selling puts on high-quality, dividend-paying companies when they suffer a temporary setback. It's one of the world's safest ways to trade. And once you get familiar with how it works, it's as easy as clicking your mouse.

If you're looking for a high-income trading strategy, you won't find one better than this. Here's how it works…

When you sell a put, you get paid to agree to buy shares of a stock at a set price by a set point in time. When you use this strategy on beaten-down blue-chip stocks, you almost can't go wrong.

Take our trade on Procter & Gamble (PG), for example…

Procter & Gamble owns dozens of ubiquitous household brands, including Tide, Gillette, and Charmin. Twenty-five of those brands each generate $1 billion or more in sales every year. The company uses all that cash to support a rock-solid dividend (it now yields 3.5%) that has grown every year for more than five decades.

Over the last couple years, shares of PG have waffled between about $60 and $66. But stock market weakness last month pushed shares toward the bottom of their range.

We took that opportunity to tell our DailyWealth Trader readers to sell puts on the stock. They agreed to buy shares at $60 between then and October. In exchange for making that agreement, they collected $2.65 per share.

Their "cost basis" if they had to buy shares was $57.35 (the $60 they agreed to pay minus the $2.65 they collected). The last time Procter & Gamble spent any time below that price was back in 2006. And buying at that price would lock in a 3.9% annual dividend. The yield hasn't been that high since the late '80s.

As you can see in the chart below, PG staged a big rally off those June lows. Shares have popped 7% higher since we wrote up the trade…


If this rally reverses and shares end up below $60, our readers will own Procter & Gamble at an incredible price. But right now, it seems more likely they'll walk away with their $2.65 "dividend" and never have to buy shares.

Just like any organization, a huge company with great brand names and growing cash flows will suffer short-term setbacks. When these setbacks arrive, shares sell off and get cheap.

That's when put-sellers can come in and collect safe cash payments. The upside is you collect instant cash, the downside is you buy an elite company for a good price.

That's why it's one of our greatest wealth secrets.

Hope you like what i have just shared and can do me a favour by "Like"-ing my facebook page at www.facebook.com/kissinvesting. Thanks & HUAT AH!


JB Foods IPO - Chocolate World!

I got the email from my stockbroker on JB Foods Analysis and would like to share with you all:

Oh ya.. and its website - http://www.jbcocoa.com/ [don't laugh why i put this link here... You cannot even find it when you search for "jb foods"!!!]

Short Intro
JB Foods, a major cocoa ingredient producer in Malaysia, has launched an initial public offering (IPO) of 100 million shares comprising 84 million new shares and 16 million vendor shares at 30 cents each on the Singapore Exchange (SGX) mainboard.
The placement size is 97 million shares and the public-offer tranche is three million shares. The invitation shares represent 25 per cent of the company's post-IPO enlarged share capital of 400 million shares. Based on the company's share capital and invitation price, its market capitalisation will be $120 million.
It now produces and sells cocoa butter, cocoa powder, cocoa liquor and cocoa cake with cocoa powder and cocoa butter accounting for more than 90 per cent of its revenue.
It has a production capacity of 60,000 tonnes of cocoa bean equivalent per year and in FY2010 a market share of 13.3 per cent in Malaysia based on revenue.
Last year, JB Foods reported revenue of RM691 million (S$276 million) and net profit of RM51 million. Besides expanding its factory in Malaysia, the company is also exploring options to acquire two cocoa processing factories in Germany and Indonesia. 

JB Foods intends to recommend and distribute not less than 30 per cent of its net profit attributable to shareholders this financial year.

Key Points to Note
  • Based on Post-IPO 400m shares, JB Foods' EPS is at 0.1275 RM, converted to around S$ 0.0507. And P/E Ratio = $0.30 / $0.051 = 6.
  • Malaysia’s cocoa grinding industry had shown healthy growth with a CAGR of 4.7% for grinding volume from 2004 to 2010.
  • Steady Increasing Revenue + Profit after Tax throughout 3 years.

My Take
JB Foods may be neglected to the over-casting of shadow by IHH and people will have their money stuck there. Considering the positive market outlook for IPOs and a low P/E ratio, i believe JB Foods may be a hidden gem.
Nevertheless, i also don't recommend holding it for the long term as it is in an industry with such slow CAGR of only 4.7%. There are much better choices out there. :)

Sorry for the late post and the IPO is finished. You can still buy when it comes right up on the trading day at 9am! :D

Hope you like my post and can do me a favour by "Like"-ing my facebook page at www.facebook.com/kissinvesting. Thanks & HUAT AH!


A Joke to share with you all!

A man calls his stockbroker all anxious and out of breath with this urgency in his voice. 

He says, "Sell it all, sell everything fast, right away." 

The stockbroker tries to explain that the market is cyclical in nature and that for long term outlook stocks still remain the place to be.

The man says, "Let me tell you a secret. You know I've been married for 6 years now and I've been your client for 5 years." 

"Yes, go on," the stockbroker says.

"Well. My wife has this thing about the market. Her grandparents lost it all in the great crash and ever since then her family found investing in the market akin to original sin. 

When we got married I promised her that I would follow in her parents footsteps and never venture in the stock market and always leave all our money under the mattress."
"Wow, I didn't know that. I guess you want the money because the market is going down, in case she asks for it."

"No, I want the money because she ordered a new mattress and it is being delivered in two days."

Hope you like my post and can do me a favour by "Like"-ing my facebook page at www.facebook.com/kissinvesting. Thanks & HUAT AH!


Benefits of Investing in REITs

Here's a sneak preview of my Ebook Launch soon! Stay tuned for more information!

Benefits of Investing in REITs

Although REITs are already there in USA for around 50 years, they haven’t surface in Singapore until recently. Meanwhile, people frustrated of their hard-earned savings being eroded by inflation has only the few usual investments to choose from: stocks, mutual funds, fixed deposit.

REITs emerged as an excellent alternative and have attracted many layman investors (many ladies) due to its advantages which I will go through here…
         High Yield
For many investors, the main attraction of REITs is their dividend yield. The average 6% p.a. returns notably run down savings and fixed deposits rates of below 1%!
Also, REIT dividends are secured by stable rents from long-term leases, and many REIT managers employ conservative leverage on the balance sheet.

2.    Double Tax Avoidance
REITs are exempt from taxes at the corporate level because of their legal structure as they agree to give 90% of their profits to investors.
Uniquely in Singapore, there is also no tax at the personal level for either dividends collected or capital gains when you sell the REITs!
Double taxation avoided leads to lower costs and allow more of your money to compound!

3.    Liquidity
Remember that a REIT combines qualities of real estate and stock? One major advantage a REIT has over real estate is that REITs are liquid on SGX.
Unlike real estate directly held by the investor, REITs are a liquid asset that can be sold fairly quickly to raise cash or take advantage of other investment opportunities.

4.    Diversification
Using REITs, investors with only a few thousand dollars available can diversify their holdings between various geographic areas and property specializations, depending on the REIT’s portfolio.
In the case of direct property ownership, this would not be financial feasible unless the investor took on excessive leverage or business partners.
Thus, a greater amount of diversification is generated as the trust companies are able to buy numerous properties and reduce the negative effects of problems with a single asset.
In short, investors are able to reap benefits of a diversified property portfolio for a small investment.

5.    Professional Management
A professional, dedicated management team responsible for the day-to-day operation of the business is able to provide the investor with expertise beyond his or her own knowledge base.
This is very important as they can also increase distribution through clever management strategies [e.g. draw in anchor tenants, renovating property for a fresh look, hosting events and promotions] which a single investor is fairly limited to.
Lastly, as the REIT manager would handle many properties concurrently, there are economies of scale to be harvested in the process.

6.    Easy Due Diligence
The best part about most REITs in Singapore is that it is easy to conduct due diligence (treat it as detective work, exciting yeah?!) on the REIT.
If you are looking at retail malls REIT, you can pay a visit to the malls to check out the crowd and gauge whether tenants are profitable. (profitable tenants = profitable REIT = $$$ for investors!)
If it is an office, you can easily view the condition and general maintenance of the building, its level of security, how conducive it is for tenants and how many vacancies there are in the building.
A short interview with the tenants may reveal to you their stance towards the management and the building.

Hope you like my post and can do me a favour by "Like"-ing my facebook page at www.facebook.com/kissinvesting. Thanks & HUAT AH!


Results of Mystery Shopping by MAS

If you take a look at the link:
http://www.mas.gov.sg/en/News-and-Publications/Press-Releases/2012/MAS-Releases-Results-of-Mystery-Shopping-Survey.aspx, you will realise that in Singapore, many "financial advisers" in banks or insurance companies aren't really there to advise you on how you should manage your wealth.

They are there for the sales commission and most of us should know it by now.

I got interested about this whole thing because i was once a bank salesperson who joined the bank with intentions to help people make money and grow their wealth. This whole issue is therefore, very personal to me.

How wrong can i be... If you look at the banks profits, you will know that the bank staff are helping the BANKS to make money and not YOU. 

I saw from Wilfred Ling's blog [http://www.wilfredling.com] and earnestly believes in what he say. He as an independent financial adviser, gives REAL and HONEST advice rather than just sell you endowment and wholelife insurance like it is a natural thing for everyone to have.

If you look at REITs nowadays, you can get a minimum of 6% yield yearly, without even considering the capital gains, why the he*k do you need to give one year premium [Yes! in case you don't know.. one year premiums = their commissions $_$] to the bank adviser who sell you the stuff and leave you in the lurch until he/she is ready to sell you another product again?!

As the slogan goes, there is no such thing as Free Lunch in the world. They provide you with "Free" financial advice on how good endowment policies are and then earn big fat profits for their ownselves.

Straits Times "Invest" section on 15/7/2012

It's little wonder DIY Investing is on the trend now.. People nowadays surf the net and visit investing blogs like mine :P for news and Unbiased, independent financial advice before making their big decision.

Right now, Independent financial advice should be hot now.. I will perhaps come out with some personal finance articles in the future rather than just touch on stocks :)

Hope you like my post and can do me a favour by "Like"-ing my facebook page at www.facebook.com/kissinvesting. Thanks & HUAT AH!


Penny Stocks with Growth Prospects

There has been always Analyst Reports about Blue Chips or the few similar counters they always cover.

Personally, I like to seek out hidden undervalued gems, just like Sarin (A previous blog post I have written before) and Osim; OR Penny stocks with growth prospects going forward.

Below i come out with a list of Penny stocks & the reasons why they have the potential for huge capital gains:

2) Midas Holdings [Current Px: $0.345]
  1. Rapid Growth in Securing contract wins [http://midas.listedcompany.com/newsroom/20120711_172609_5EN_3EA9C2ED1C08A79548257A38003307DD.1.pdf]
  2. Turn-around with China govt package for metro trains
  3. High Volume = High Demand [http://sg.finance.yahoo.com/q/ta?s=5EN.SI&t=1y&l=on&z=l&q=l&p=v&a=&c=]

3) Nam Cheong [Current Px: $0.191]
  1. Soaring Net Profit (Doubles for 1Q 2012) [http://www.shareinvestor.com/news/news.html?source=si_express&nid=48783]
  2. Dominant OSV-builder with a 50%-75% market share; benefitting from Malaysia RM300b 5-year capital expenditure
  3. Order book surging to RM874m [http://files.shareholder.com/downloads/AMDA-GJWBU/1938933692x0x578449/EAA85944-0035-40A8-8840-4313FE50A0D7/AmFraser_120621_Nam_Cheong_-_Maintain_BUY_-_Swinging_up_the_value_chain.pdf]

Besides these few stocks, I believe there may be more out there that i missed out.

Feel free to bring the stocks up on the comments and i will cover them again next time!

Hope you like my post and can do me a favour by "Like"-ing my facebook page at www.facebook.com/kissinvesting. Thanks & HUAT AH!


IHH IPO - 60x oversubscribed by Institutions!

I believe you have read from the newspapers and saw from the other websites how IHH will be expecting HUGE.. (60x oversubscribed by institutions!) demand

I shall cut short the whole story and make it not repetitive as what you read from elsewhere. 

First up - IPO Details

Indicative Timetable 

Allocation of Shares
Of the base offer of 2.23 billion shares, 62 per cent have been pre-allocated to cornerstone investors (Cornerstone stands for rock, kidding... it means they will not sell the shares for a long period of time, usually 6 months).
About 350 million shares will be offered to the public in Malaysia and Singapore.

Ok... let's go to the Pros n Cons everyone waiting for!


  • IHH Healthcare Berhad is a BIG, leading healthcare provider in 8 countries, majority in Singapore, Malaysia and Turkey.
  • Former Parkway Healthcare being de-listed by IHH and now IHH is coming back for a listing in a whole new and bigger way! 
  • Management believes IHH will overtake HCA listed in NYSE as the number one healthcare service provider in the world in three to five years time.
  • IPO being propped up by pre-election encouragement from the government and by cash-rich state funds
  • IHH follows through the Great momentum set by Felda Global Ventures last week, and while Felda soars 20% in the first day of debut (http://finance.yahoo.com/news/palm-oil-giant-felda-soars-stock-market-debut-053631417--finance.html); it is the hype that brings many investors to think that IHH will have the same impact.


  • 90% of the proceeds raised will be used to pay off bank loans! No money from the listing is used to expand the company at all! However, according to the management, they plan to lower the debt to lower levels using the IPO and then borrow higher again to expand the next time... Not really a wise move if they take on too much debt...
  • Based on the prospectus, the EPS using the enlarged share capital was US 0.96 cents and US 0.64 cents for the year 2011 and 3 months to 2012 respectively. This translate into a historical listing PER of 93x for FY2011.


Although IHH IPO is there to pay off their high debts and listing at quite expensive levels, it will definitely have a strong impact on the price. This flurry of IPOs should be somewhat linked to the government elections because when the public subscribe to the IPO and earn money -> happy -> vote for them. (Hahaha! My way of thinking) 

You may not have to worry about the price since there are 22 cornerstone investors covering your backside as you buy into this listing... whenever there is selling on the stock, these big institutions will surely ask someone to "suck up the selling" and maintain the price as where it is.

I am following http://singapore-ipos.blogspot.sg/2012/07/ihh-healthcare-berhad.html and i will also do a Hit-n-Run if i am applying for it. 

Another perspective: When you look at all the forums and hear from your investing friends, they are ALL interested in applying for the IPOs => Over-subscription liao!!! Therefore, if you are just applying 1 - 10 lots, i don't think there is high hope of being balloted.

However, if you look at the indicative timetable, you will see that they will refund you on 23 July and trading will start only on 25 July. Therefore, play it both ways!
  1. Subscribe for the IPO first (before 12 July!) & Test your luck
  2. Keep track of whether they refund you the amount on 23 July. Be prepared to stick to the computer at 8.59am and buy at whatever price it lists! Sell at a profit margin you are comfortable with :)
Good Luck to All! HUAT AH!

Hope you like my post and can do me a favour by "Like"-ing my facebook page at www.facebook.com/kissinvesting. Thanks & HUAT AH!


Neo Group IPO - A Good Buy?


Covered by the Hype and massive public advertisement/awareness over IHH IPO, there is another local firm which is also launching its IPO, starting trading even before IHH.

The local catering company is Neo Group Limited and it has launched an initial public offering (IPO) of  1m shares for public and 21m shares via placement at 30 cents each for a Catalist listing on Singapore Exchange.

The IPO closes on 9 July (Monday!) at 12pm and starts trading on 11 July at 9am. Check out Neo group prospectus here!

The invitation shares on its platter - which constitute 15.3 per cent of the group's enlarged share capital of 144 million shares - comprise one million public-offer shares and 21 million placement shares.

The placement shares "have already been oversubscribed", according to Neo Group's executive director Elvis Lee. He also said there were no cornerstone subscribers as the company "spread out its investors".

Background [i would like to give credit to http://singapore-ipos.blogspot.sg for the wonderful insight to the IPO too]

Neo group is started from MR NEO Kah Kiat, a self-made millionaire who drop out after Secondary 2 as he felt that a diploma or a degree would not guarantee riches and respect. 
He started his business at the age of 20 with $15,000 borrowed from relatives and friends after amassing useful experience by helping out at a relative's chap chye peng (economical rice) stall between ages 15 and 17 (Read his whole story here). 

Today, Neo group owns:

Reasons to Buy:
  1. Ranked by Euromonitor as the no.1 events caterer in Singapore.
  2. Too many awards :p (You can see for yourself here)
  3. Net Profit increasing steadily from S$2.2m to S$2.8m to $5.4m from FY2010 to FY2012.
  4. Intends to distribute Dividends not less than 60% of its net profits (equal to around 6% yield on $0.30) attributable to shareholders in each of FY2013, FY2014 and FY2015.
  5. MORATORIUM - All existing shareholders have each undertaken to have 100%, 70% and 40% of their respective shareholdings in our Company moratorised in the first, second and third year from the date of admission of our Company to Catalist. (meaning they will not sell off their shares based on the % according to the year!)
  6. Proceeds used to Expand and develop our Food Catering Business & Food Retail Business


If you look at market-changing companies like Microsoft, Apple, UOB etc; they always have a leader at the helm of the company.

And i seriously believe that Mr Neo, founder of the Neo Group, is a man of such calibre and able to lead the company to greater heights. Few people have the courage and the dreams to drop out at age 14 and worked as hard as he needs to achieve his wealth and success.

With only 1million (1000 lots) issued for the public, no. of shares being issued is quite limited & majority of it held by the existing shareholders (who are sticking to the Moratorium mentioned above), this stock should do well on its debut and may attract long term investors seeking for good yields

Seldom do you come across a company CEO with his rags to riches story and I personally have patronized his catering and Umi-sushi outlet before... I will buy the IPO and also go on a yacht trip with my friends or gf next time! :D

Hope you like my post and can do me a favour by "Like"-ing my facebook page at www.facebook.com/kissinvesting. Thanks & HUAT AH!


SakariResources - BUY @ $1.455, 03/07/2012

~StraitsAsia is now known as SakariResources~

Woooo... Sakari Resources jumped today for a 5.8% gain in one day! I have bought the shares at $1.355 and are now gaining an unrealized profit of $450. Evidence as shown below with CIMB stock brokerage account:

But I am not writing this blog post to just show off my trades, I just want my readers to know that I am talking about real stuff and I do walk the talk...

Anyway, here is a Sakari Stock Analysis Chart from Chartnexus:

Technical Analysis:

The breakout from Ascending Triangle + Bollinger Band coupled with High Volume = Potential Upside!

Taking into consideration the global market condition: 

  • Market Analysis: Euro starting to resolve their problems / People used to the negative news until there is not much impact o.O
  • Fundamental Analysis (see 2 charts below): Strong Balance Sheet & Financial Position, Coal prices rising and an attractive dividend yield of 6% at current prices!
    After suffering from a dip in profits in year 2010, year 2011 seems back on track. Looking back at the 5 year trend, Sakari has been generating an ROE of 20+% and Net Profit Margin of >10%!

Hope this short summary of Sakari Independent Analysis helps you! This is really a Value Stock Pick I would say!

Hope you like my post and can do me a favour by "Like"-ing my facebook page at www.facebook.com/kissinvesting. Thanks & HUAT AH!