Now is turbulent time in the stock market and the risk averse persons should stay by the sideline during this uncertain time, with the coming QE tapering, Syria conflict, etc.
For example, China Minzhong unexpectedly plunged more than 50% in just a couple hours and afterwhich trading of the stock was halted.
I have mentioned in my earlier post that the money invested into stocks should be the extra cash that you can afford to hold aside or to lose. And preferably on those blue chips that are able to ride through these turbulent "waves". Even in the event that the whole stock portfolio is badly hit, there is no immediate impact on you or your family's livelihood and commitments.
My stock portfolio is still staying afloat at the moment. However, it is supported mainly by SGX and Starhub, which I have gotten at a relatively low cost.
When there is danger, there is also opportunity...
Wednesday, 28 August 2013
Saturday, 10 August 2013
UOB Structured Deposit 2013 Series (1)
UOB's Structured Deposit 2013 Series was eye-catching as 9.3% looked quite interesting:
Other promotional information:
1. Total Guaranteed Fixed Interest of 9.3% of the Principal Amount over 5 years and 11 months (equivalent to an effective interest rate of 1.5687% per annum)
2. 100% Principal Amount guaranteed when held to maturity.
This structure product has a bonus interest component linked to 5 Singapore companies' shares price performance:
Potential Bonus Interest of up to 10% linked to 5 Singapore Company Shares
The potential bonus will be given out if all the above 5 stocks are above 105%, compared with the initial stock prices when the structure product begins.
Assuming an investment amount of S$10,000, held till maturity:
1. Best case scenario - If all 5 stocks are above 105% their initial values:
2. Worst case scenario - If any one of the 5 stocks is less than 105% their initial values:
However, upon closer examination, this structured product is less appealing. In actual fact, it is just an effective interest rate of 1.5687% p.a. for 6 years. Yes, your principal amount is guaranteed, but it is also locked in for the next 5 years and 11 months. There is a loss of liquidity, if any other opportunity arises.
Next, that the additional 2% bonus interest is not easy to get. You would need all of the 5 stocks to be 105% over the initial entry price in order to get the 2%. And it is 2% or nothing, there is no in-between bonus.
But can this happens? The main activities for these 5 companies (DBS, KEP, SMM, SIA and SPH) cover finance, marine, property, air transport, media, etc; which is a very wide coverage. It is a long shot that nothing bad would happen in such a wide field for the next 6 years, be it financial crisis, property bubble, oil price, regional conflict, pandemic, earthquake, volcano eruption, etc, etc. Just one of the stocks not doing 105% and the bonus interest will not materialize. Also, SPH price was hyped up by the launch of SPH Reit and it is not clear how the stock will move in the future.
Moreover, the interest rate 1.55% is fixed, which means it won't get higher with market fluctuation. As the 12 months FD is now at 1.18% p.a. (Bank of China), I would be very surprised if the 12 months FD rate will not move up to exceed 1.55% in the near future. Furthermore, ICICI Bank is already offering 1.55% p.a. for FD on 36 months tenure term.
This structure product supposed to end 31st August, but according to UOB's website, applications are now closed due to overwhelming response. People are rushing to take up this 1.55% p.a. structured product, but is it really a "smarter way to invest"?
One last point, I wonder why UOB wanted to use its rival DBS as one of the 5 companies in the basket. Why not UOB???
Other promotional information:
1. Total Guaranteed Fixed Interest of 9.3% of the Principal Amount over 5 years and 11 months (equivalent to an effective interest rate of 1.5687% per annum)
2. 100% Principal Amount guaranteed when held to maturity.
This structure product has a bonus interest component linked to 5 Singapore companies' shares price performance:
Potential Bonus Interest of up to 10% linked to 5 Singapore Company Shares
| Shares in Underlying Basket | DBS Group Holdings Limited ("DBS") Keppel Corporation Limited ("KEP") Sembcorp Marine Limited ("SMM") Singapore Airlines Limited ("SIA") Singapore Press Holdings Limited ("SPH") |
The potential bonus will be given out if all the above 5 stocks are above 105%, compared with the initial stock prices when the structure product begins.
Assuming an investment amount of S$10,000, held till maturity:
1. Best case scenario - If all 5 stocks are above 105% their initial values:
Best Case Scenario (Maximum Interest
Potential)
| |||
End of Year
|
Guaranteed Fixed Interest Rate on Principal
Amount
|
Potential Bonus Interest Rate on Principal
Amount
|
Total Interest Payable
|
1
|
|
|
|
2
|
1.55%
|
2.00%
|
3.55%
|
3
|
1.55%
|
2.00%
|
3.55%
|
4
|
1.55%
|
2.00%
|
3.55%
|
5
|
1.55%
|
2.00%
|
3.55%
|
At maturity
|
1.55%
|
2.00%
|
3.55%
|
Total interest payout
|
9.3%
|
10%
|
19.3%
|
Principal + Interest payout
|
S$10,000 + S$930 + S$1,000 = S$11,930
| ||
2. Worst case scenario - If any one of the 5 stocks is less than 105% their initial values:
Worst Case Scenario (Minimum Interest
Payable)
| |||
End of Year
|
Guaranteed Fixed Interest Rate on Principal
Amount
|
Potential Bonus Interest Rate on Principal
Amount
|
Total Interest Payable
|
1
|
|
|
|
2
|
1.55%
|
0%
|
1.55%
|
3
|
1.55%
|
0%
|
1.55%
|
4
|
1.55%
|
0%
|
1.55%
|
5
|
1.55%
|
0%
|
1.55%
|
At maturity
|
1.55%
|
0%
|
1.55%
|
Total interest payout
|
9.3%
|
0%
|
9.3%
|
Principal + Interest payout
|
S$10,000 + S$930 + S$0 = S$10,930
| ||
However, upon closer examination, this structured product is less appealing. In actual fact, it is just an effective interest rate of 1.5687% p.a. for 6 years. Yes, your principal amount is guaranteed, but it is also locked in for the next 5 years and 11 months. There is a loss of liquidity, if any other opportunity arises.
Next, that the additional 2% bonus interest is not easy to get. You would need all of the 5 stocks to be 105% over the initial entry price in order to get the 2%. And it is 2% or nothing, there is no in-between bonus.
But can this happens? The main activities for these 5 companies (DBS, KEP, SMM, SIA and SPH) cover finance, marine, property, air transport, media, etc; which is a very wide coverage. It is a long shot that nothing bad would happen in such a wide field for the next 6 years, be it financial crisis, property bubble, oil price, regional conflict, pandemic, earthquake, volcano eruption, etc, etc. Just one of the stocks not doing 105% and the bonus interest will not materialize. Also, SPH price was hyped up by the launch of SPH Reit and it is not clear how the stock will move in the future.
Moreover, the interest rate 1.55% is fixed, which means it won't get higher with market fluctuation. As the 12 months FD is now at 1.18% p.a. (Bank of China), I would be very surprised if the 12 months FD rate will not move up to exceed 1.55% in the near future. Furthermore, ICICI Bank is already offering 1.55% p.a. for FD on 36 months tenure term.
This structure product supposed to end 31st August, but according to UOB's website, applications are now closed due to overwhelming response. People are rushing to take up this 1.55% p.a. structured product, but is it really a "smarter way to invest"?
One last point, I wonder why UOB wanted to use its rival DBS as one of the 5 companies in the basket. Why not UOB???
Friday, 9 August 2013
English Premier League: Starhub Vs SingTel
The match between Starhub and SingTel has kicked off. This is the first year that EPL is available on both SingTel mioTV and its rival Starhub.
SingTel announced that the EPL, which kicks off on Aug 17, will cost $59.90 a month by itself (stand-alone fee). This will be available to both SingTel's mioTV and Starhub subscribers.
MioTV customers will also be able to buy a bundle of football programmes, including the EPL, the Champions League and Spanish La Liga, plus entertainment programming, for $64.90. Last year, SingTel sold a sports bundle which included EPL for $34.90. Therefore, the cost almost double for SingTel mioTV subscribers for the new season.
Starhub subsequently announced their prices for the new cross-carriage Barclays Premier League on cable TV.
Customers who sign up for the EPL will now receive up to $30 off their bills per month up to a maximum total of $600 over the next two seasons.
This applies to all Starhub TV customers, both new and existing. For existing customers, this monthly rebate applies to whatever current packages they are on. The offer is also contract-free, and customers have until 30 September 2013 to sign up.
However, new and existing Starhub customers still have to pay the S$59.90 (cross-carried EPL package) stand-alone fee announced by rights owners SingTel.
If the Starhub TV bill amounts to less than $30 per month, it will be waived fully. So technically if a brand new Starhub customer signs up for its promotional HD pack of $22.47, after discounting the S$30 monthly rebate, he could end up paying simply just S$59.90 to watch the EPL on the telco's platform.
Competition is supposed to bring benefits to consumers, by offer more choices and supposedly at lower cost. However, this is not the case for EPL. The consumers are the casualties in the telco companies bidding war for broadcasting rights.
SingTel announced that the EPL, which kicks off on Aug 17, will cost $59.90 a month by itself (stand-alone fee). This will be available to both SingTel's mioTV and Starhub subscribers.
MioTV customers will also be able to buy a bundle of football programmes, including the EPL, the Champions League and Spanish La Liga, plus entertainment programming, for $64.90. Last year, SingTel sold a sports bundle which included EPL for $34.90. Therefore, the cost almost double for SingTel mioTV subscribers for the new season.
Starhub subsequently announced their prices for the new cross-carriage Barclays Premier League on cable TV.
Customers who sign up for the EPL will now receive up to $30 off their bills per month up to a maximum total of $600 over the next two seasons.
This applies to all Starhub TV customers, both new and existing. For existing customers, this monthly rebate applies to whatever current packages they are on. The offer is also contract-free, and customers have until 30 September 2013 to sign up.
However, new and existing Starhub customers still have to pay the S$59.90 (cross-carried EPL package) stand-alone fee announced by rights owners SingTel.
If the Starhub TV bill amounts to less than $30 per month, it will be waived fully. So technically if a brand new Starhub customer signs up for its promotional HD pack of $22.47, after discounting the S$30 monthly rebate, he could end up paying simply just S$59.90 to watch the EPL on the telco's platform.
Competition is supposed to bring benefits to consumers, by offer more choices and supposedly at lower cost. However, this is not the case for EPL. The consumers are the casualties in the telco companies bidding war for broadcasting rights.
Sunday, 4 August 2013
Shareinvestor Fair at Suntec, 2nd – 4th Aug 2013
My main objective of visiting this Shareinvestor Fair at Suntec City was to see how Suntec City look like after the Asset Enhancement Program. Couples of month ago, when I passed by Suntec City Convention Center, it was still all blocked up under the AEP development. After the visit, I am quite impressed on how Suntec City has transformed itself. I am seriously considering adding more units of Suntec Reit to my portfolio, especially if the stock price goes below my average cost for Suntec Reit.
Secondary mission is to check out what type of investment options are available there.
At the fair, there are the usual Stock Broking Houses - OCBC Securities, CIMB Securities, Lim & Tan Securities, Phillip Securities, Thinkorswim Singapore and E*Trade.
The Contracts For Difference (CFD) and Forex providers - CMC Market, City Index, IG and Onada.
The Financial Educators:
- Adam Khoo Learning Technologies Group, students can achieve sensational results through dynamic and comprehensive seminars and programs.
- Online Trading Academy, training to achieve highly-developed skills for virtually any trading instrument.
- V3Go Academy, training to gain consistent profit across different markets such as futures, forex, stocks and commodities.
- VectorVest Inc, provides stock analysis and portfolio management system that show you how to make money in both up and down markets.
- WK Events Pte Ltd, learns how to own properties with little or no money down.
Moreover, there are many alternative investments at the fair, and for some amazement and good laughs:
- Australian Wine Index (WPI) - recommends wines with the best capital growth potential ranging from established wines with steady gains to cult wines that yield higher profit margins but with greater risk.
- Barons Group - Barons FIS Plan, maximizing the waterfall effect of securing 21% cash flow.
- Bullion Investment Group (B.I.G) - casino acquisition and operations, investors buy "seats" in their casino.
- GoldSilver Central Pte Ltd - physical bullion trading in gold and silver.
- Hatten Group - Melaka properties investment, "guaranteed" returns 36% for six years.
- Infinity Treasures Pte Ltd (inside MAS IAL) - Exit Strategy (House flipping in Florida) - 15% fixed for 12 months and Crude Oil investment - 3% continual payout every 3 months for 24 months.
- Prudential - some unit trust giving 7.5% returns.
- Shenton Energy Asia Pte Ltd - investing in fuel, 3% payout every 3 months.
- Shenton Wealth Holdings/Dolphin Capital Asia Pacific [both in MAS IAL]- Germany Government Listed Building Opportunity, with 24% gains in 24 months.
- Walton International Group - land banking, 21.59% p.a. annualized total return.
- Zochwell group - investment in Myammar's exploding growth.
All these alternative investment providers said they have conducted due diligence into researching, investigating and analyzing their products. But if investors really buy their products, they are not acting diligently.
There are also some free talks and paid workshops, but I did not attend those.
Finally, the free coffee offered by Nescafe was great.
Secondary mission is to check out what type of investment options are available there.
At the fair, there are the usual Stock Broking Houses - OCBC Securities, CIMB Securities, Lim & Tan Securities, Phillip Securities, Thinkorswim Singapore and E*Trade.
The Contracts For Difference (CFD) and Forex providers - CMC Market, City Index, IG and Onada.
The Financial Educators:
- Adam Khoo Learning Technologies Group, students can achieve sensational results through dynamic and comprehensive seminars and programs.
- Online Trading Academy, training to achieve highly-developed skills for virtually any trading instrument.
- V3Go Academy, training to gain consistent profit across different markets such as futures, forex, stocks and commodities.
- VectorVest Inc, provides stock analysis and portfolio management system that show you how to make money in both up and down markets.
- WK Events Pte Ltd, learns how to own properties with little or no money down.
Moreover, there are many alternative investments at the fair, and for some amazement and good laughs:
Alternative Investments (companies seeking investors' money):
- Art Futures Group (AFG) - focus on Chinese Contemporary Arts investment.
- Asia Plantation Capital (APC) - investing in their plantations and trees.- Art Futures Group (AFG) - focus on Chinese Contemporary Arts investment.
- Australian Wine Index (WPI) - recommends wines with the best capital growth potential ranging from established wines with steady gains to cult wines that yield higher profit margins but with greater risk.
- Barons Group - Barons FIS Plan, maximizing the waterfall effect of securing 21% cash flow.
- Bullion Investment Group (B.I.G) - casino acquisition and operations, investors buy "seats" in their casino.
- GoldSilver Central Pte Ltd - physical bullion trading in gold and silver.
- Hatten Group - Melaka properties investment, "guaranteed" returns 36% for six years.
- Infinity Treasures Pte Ltd (inside MAS IAL) - Exit Strategy (House flipping in Florida) - 15% fixed for 12 months and Crude Oil investment - 3% continual payout every 3 months for 24 months.
- Prudential - some unit trust giving 7.5% returns.
- Shenton Energy Asia Pte Ltd - investing in fuel, 3% payout every 3 months.
- Shenton Wealth Holdings/Dolphin Capital Asia Pacific [both in MAS IAL]- Germany Government Listed Building Opportunity, with 24% gains in 24 months.
- Walton International Group - land banking, 21.59% p.a. annualized total return.
- Zochwell group - investment in Myammar's exploding growth.
All these alternative investment providers said they have conducted due diligence into researching, investigating and analyzing their products. But if investors really buy their products, they are not acting diligently.
There are also some free talks and paid workshops, but I did not attend those.
Finally, the free coffee offered by Nescafe was great.
Saturday, 3 August 2013
August Fixed Deposit Rates Update - 1.18% P.A.at Bank of China
First some clarifications: Fixed Deposit is not for real investment. My review on Singapore's FD is limited to S$50,ooo and below; and tenure term not exceeding 12 months. Fixed Deposit is for parking the emergency fund and allowing immediate access to the fund when needed. These are also based on the following considerations:
1. Singapore's Deposit Insurance Scheme maximum coverage up to S$50,ooo only.
2. Long tenure term will potentially affect your cash-out value for your emergency fund, as you may suffer a penalty fee for early withdrawal.
Back to the update: According to its website, Bank of China's Fixed Deposit promotion is still on. The 12-month FD rates of 1.18% p.a. is still highest in Singapore currently. The minimum deposit amount for BOC FD is S$50,000.
This promotion is valid for customers with fresh funds only, meaning it is not applicable for money transferred from existing BOC accounts.
There are few branches of BOC in Singapore:
1. Battery Road (BOC Building),
2. Chinatown branch (Furama Hotel),
3. Katong branch (188-192 East Coast Road),
4. Middle Road (BOC Plaza),
5. Maxwell Road (Maxwell House).
According to BOC's website, this promotion is for a limited period only.
Promotion Details:
Please let me know if there is better offer in the market.
1. Singapore's Deposit Insurance Scheme maximum coverage up to S$50,ooo only.
2. Long tenure term will potentially affect your cash-out value for your emergency fund, as you may suffer a penalty fee for early withdrawal.
Back to the update: According to its website, Bank of China's Fixed Deposit promotion is still on. The 12-month FD rates of 1.18% p.a. is still highest in Singapore currently. The minimum deposit amount for BOC FD is S$50,000.
This promotion is valid for customers with fresh funds only, meaning it is not applicable for money transferred from existing BOC accounts.
There are few branches of BOC in Singapore:
1. Battery Road (BOC Building),
2. Chinatown branch (Furama Hotel),
3. Katong branch (188-192 East Coast Road),
4. Middle Road (BOC Plaza),
5. Maxwell Road (Maxwell House).
According to BOC's website, this promotion is for a limited period only.
Promotion Details:
| SGD Time Deposits Promotional Interest Rates % p.a. | ||||
| 3-Month | 6-Month | 9-Month | 12-Month | |
| S$50,000 and above | 0.55% | 0.85% | 0.95% | 1.18% |
Please let me know if there is better offer in the market.
Thursday, 1 August 2013
My Stock Portfolio @ end July 2013
| No. | Stock Name | Lots | Portfolio% | Avg Cost$ | Breakeven$ | Market$ | |
|---|---|---|---|---|---|---|---|
| Starhub | |||||||
| SPH | |||||||
| SGX | |||||||
| CapitaLand | |||||||
| CapitaMall Trust | |||||||
| CDL HTrust | |||||||
| Starhill Global | |||||||
| Suntec Reit | |||||||
| SingTel | |||||||
| Hyflux | |||||||
| AIMS AMPI Reit | |||||||
| HPH Trust | |||||||
| FE Orchard | |||||||
| CapitaMalls Asia | |||||||
| CitySpring | |||||||
| Boustead | |||||||
| Sing Post | |||||||
| SPH Reit | |||||||
| FE HTrust | |||||||
Sold:- SP Ausnet
Bought:- Boustead, SPH Reit.
Dividends collected in July: $25
2013 avg dividends/month: $298.94
Bad month for dividends. Thanks to SPH's special dividend payout, August will be another dividend harvesting month.
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