SRS - Closing Status 22 Feb

Divested IHH 8 lots in this week under SRS portfolio for a profit of $166.  As it is a growth stock so l did not apply an exit selling price target to it.  Sky is the limit on profit for other investors on growth stock but not for me.  There should not be any regret of letting it go when a growth stock move to higher price level as there will be another chance to re-invest into it.  To me, if it is already in profit position then l can already letting it go; and hoping to re-entering in it when its price weakens.

Also divested Sheng Siong 16 lots this week from my SRS portfolio after bought into it just a week ago. Strong full year results released this week, as expected by many analysts and investors.  What is important to me is its dividends, just in case l am stuck with it if the stock market suddenly turned into a super bear.  The divestment profit of $330 is slightly higher than its dividend of $280 (16 lots x dividend rate $0.0175).  It is going XD on 3 May and dividend payment will be on 23 May so l have already collected its dividend way in advance from its XD date. If its price weakens again then l might re-entering a position in it so let's see.

Portfolio walk since previous posting :-

+$5,296 Total Returns as of 15 Feb

+$496 Gain on sales of Sheng Siong and IHH

-$265 Unrealised positions worsened

+$5,527 Total Returns as of 22 Feb

previous posting :- SRS - Closing status 15 Feb

Cash - Closing Status 22 Feb

Invested into GRP 2 lots and Sin Ghee Huat 2 lots under Cash portfolio this week.  The invested amounts were small as l was toying with the idea of investing into many stock counters to spread out risks and returns.  But in the end fear got the better of me because of markets struggling with resistance levels a few times so l have sold them all away in the same week. Another investing lesson for me here to remember whereby if and when l am able to have better control over it then l can actually leverage from it for a stable or higher yield.     

GRP posted an unexciting but fairly stable results at half time.  The only exciting element is the proposed $0.05 ($0.01 + special $0.04) total interim dividends.  This is because in each calendar year, GRP is paying an annual dividends of $0.02.  At half time, revenue and gross profit margin were almost flat vs the previous year.  There is no update on its 12.7% shareholding in Aphrodite Gold company but a quick visit to ASX is showing positive news in it.  Operating cashflow for GRP at half time is positive but lower vs last year.  There is no borrowings.  Will re-invest into GRP when its share price weakens.

Sin Ghee Huat posted an unexciting and slightly weaker results at half time.  It pays dividends only once in a year, in Nov month and it is quite stable at around $0.02 and at current price of $0.28 then this represents a 7.1% annual dividend yield.  At half time, revenue and gross profit margin were lower vs the previous year. This is due to lower margin from "project orders" in quarter 1; but in quarter 2 gross profit margin is back to normal at around 23%,  Operating cashflow for Sin Ghee Huat at half time is positive and higher vs last year.  There is no borrowings.  Will re-invest into Sin Ghee Huat when its share price weakens.


I have added SGX 1 lot into my Cash portfolio this week.  Its half time results were unexciting but this is a blue chip company so there is no worry of collapse even when the markets conditions suddenly turn topsy turvy.  It offer a genereous and stable dividend income stream.

Portrtfolio walk since previous posting :-

+$2,286 Total Returns as of 15 Feb

+$14 Gain on sales of GRP and Sin Ghee Huat

-$387 Unrealised positions worsened

+$1,913 Total Returns as of 22 Feb

previous posting :-  Cash - Closing Status 15 Feb

CPF - Closing Status 22 Feb

I have Ascott Reit 7 lots under my CPF portfolio which l have invested into it two weeks ago but it suffered the same fate as in my SRS portfolio , short-lived!  In this week l have decided to sell it all away for a small profit.  Blame it on the erratic stock market movement.  There were some investment gurus in the US warning of overheated markets. So l was thinking of letting Ascott Reit go now for a small profit and to re-invest into it at lower price level.  

Being not immune to stock market ups and downs is telling me that l have a long way to go in my investing journey.  l must learn to overcoming it as l do not want to keep shortchanging myself and not really reaping the rewards for the time put into the review works for investments and re-investments.  

Portfolio walk since previous posting :-

-$4,594 Total Returns as of 8 Feb

+$37 Profit on sales of Ascott Reit

-$114 Unrealised positions worsened

-$4,672 Total Returns as of 22 Feb

previous journals :- CPF - Closing Status 8 Feb

SembCorp Marine 27% profit plunge

SembCorp Marine released its final quarter results today and it is really in line with market expectation - disappointing!  Double digit revenue growth rate for 4Q2012 but ended up with a double digit de-growth rate on profit.

Dividends declared also lowered whereby its special dividends down to 2 cents (FY 2012) from 14 cents (FY 2011).  With this and based on my investment costs in it, the annual dividend yield is only at 2.6% which is at the lower band of my forecast in 28 Sep'12 week posting.

epiCentre in doldrums for FY 2013?

There have many reports that Apple is losing market on mobile devices particularly in Asia (Singapore, Malaysia, Thailand, Indonesia and other Asia countries).  This is particularly quite worrying to epiCentre as 87% of its revenue is very dependent on Apple branded products.  Its savior is probably MacBook but then again it has been mandated by Apple to drop prices on certain models in order to keep up with competition.

At half time, its revenue dropped 3.9% vs 2012; gross profit margin dropped to 11.6% in 2013 from 13.0% in 2012 and hence profit in the red $529k vs profit of $1033k in 2012.  Economy situation in both Singapore and Malaysia are quite bleak so consumer likely to cut spending on luxury Apple products and so this will hit epiCentre in the 2nd half time.  

epiCentre take the opportunity of sluggish revenue to spring clean its balance sheet and cutting certain operation costs :-  Staff cost -8% (l presume NO bonus payment? If yes then this is indeed very demoralizing but being still in employment is still paramount); Borrowings is down by almost $3m!!!  Even though this is an admirable move but then doing so when interest rate is quite low is another angle of contentious viewpoint; Cashflow from operating activities is positive.

It needs to keep a cool head to wade out this difficult financial year.  But what is Apple doing in keeping its distributors happy (and staying afloat)?  Certainly epiCentre is not so keen to keeping up with the price slashing momentum on its MacBook.  Perhaps if the much rumored smart watch product by Apple is true then this will a new revenue for epiCentre.  But wait, Apple seems to be interested in smart television too and epiCentre stores will need to be re-designed to make room for the smart television panels to be placed there.  All these unconfirmed revenue avenues from Apple is likely to keep epiCentre watching its working capital requirements very carefully so there is very high chance for it not to match and paying dividends for current financial year at last year's minimal dividend rate of $0.006.   Will Apple be able to save the day for epiCentre? 

Planning for retirement?

Even when our household income has gone up but can we really retire happily?


>>>>>>>>>>>>

news source :-
http://www.cnbc.com/id/100472868


A Wealthy Nation That Can't Afford to Retire

Published: Wednesday, 20 Feb 2013 | 3:42 AM ET
By: Rajeshni Naidu-Ghelani   
Assistant Producer, CNBC


The Southeast Asian city-state of Singapore may boast of the highest percentage of millionaires in the world, but retiring in this wealthy financial hub is becoming even more difficult for the common man.

According to a latest study by HSBC, the citizens of this country, which has one of the highest per capita incomes in the world, face the grim prospect of running out of their savings almost halfway through retirement as the high cost of living and increased life expectancy eats into their nest egg.

Singapore has gradually moved up human resources firm Mercer's global rankings of the world's most expensive cities, moving to sixth place in 2012 from eighth in 2011 and eleventh in 2010.

"There is cause for concern from the finding that the retirement savings of people in Singapore will run out after nine years, which is about the time they are entering into frail retirement and a stage of their lives when medical costs and other elderly care expenses are expected to rise," Paul Arrowsmith, head of retail banking and wealth management, HSBC Singapore, said in the report released on Wednesday.

"People are living longer, through tougher economic times, and expectations about their standard of living in retirement have risen," Arrowsmith added.

More than half of the 1,000 Singaporeans interviewed for the survey said that either they were not adequately prepared or not prepared at all for retirement as they expected to continue working beyond the age of 65 to be able to afford their desired lifestyle.

One also needs more money to fund one's retirement in Singapore. According to the study, the annual household income required to lead a "comfortable" retired life in Singapore is the third highest among Asia's major economies, behind Australia and Hong Kong, at $48,773. This figure is 68 percent higher than what was needed in 2011, the survey, which has been running for eight years, found.

The rising cost of living in Singapore has 58-year-old Singaporean Janice Tan worried about her retirement.

"I think the cost of living is really escalating a lot," Tan told CNBC. "During the Chinese New Year season, when I went to buy the goodies, it really shocked me, because the cost is really going up too fast."

Tan and her husband are currently paying for the education of their two children, including a 21-year-old daughter studying in Perth, Australia. While Tan, an administration professional, hopes to retire soon, she says she knows it might be another 10 years before that happens.

"As human beings we want more - a more comfortable life. That's where the worries come in on whether you will able to survive," Tan said.

According to the study, of those not saving for retirement, nearly half said they were being held back by the cost of day-to-day living.

High costs have become a major cause of discontent among Singapore's residents. This prompted a rare protest over the weekend in which about 3,000 people participated. They were voicing concerns over swelling costs driven by an influx of foreigners.

Foreigners, who account for almost 40 percent of Singapore's 5.3 million people, have been blamed for pushing up housing prices and taking up jobs in one of Asia's major business centers.

Retirement Fears

The top three fears about retirement cited by Singaporeans were poor health, financial hardship and not having enough money to provide for good healthcare, according to the study.

With retirement savings drying up at a time when Singaporeans are most vulnerable to health problems, funding medical bills could become a big burden, HSBC said.

Tan backed that sentiment, saying that medical bills from a motorcycle accident that her husband was involved in last year have been a drain on their finances.

"As we get older, I realize it [funding health costs] is a more important thing to sort out," said Tan. But the high cost of living is coming in the way. "I can't imagine how much more the cost of living is going to go up to," she added.

—By CNBC.com's Rajeshni Naidu-Ghelani

Cash - Closing Status 15 Feb

Just within one week of holding onto Perennial China Retail Trust 15 lots l have decided to divest it all away this week under my Cash portfolio.  Its XD date is 21 Feb and dividend payment date is 18 March.  My nett gain of $310 have been based on exit selling price which roughly match the dividend amount of $294 (15 lots x dividend rate $0.0196).  So l have collected its dividend in advance and l am free to re-invest the proceed already.  l will re-invest into Perennial China Retail Trust when its share price weakens because revenue starts gushing in for its new financial year.

Portfolio walk since previous posting :-

+$1,930 Total Returns as of 8 Feb

+$310 Gain on sales of Perennial China Retail Trust

+$46 Unrealised positions improved

+$2,286 Total Returns as of 15 Feb

previous posting :-  Cash - Closing Status 8 Feb

SRS - Closing Status 15 Feb

For my SRS portfolio this week, l have added Sheng Siong 16 lots.  I like what l saw of its 9M2012 results - Revenue +8.4%  and Profit +43.3%.  Operating cash flow though lower but is cash generating.  It has strong balance sheet and is debt free. With its good 9M2012 results it is a sensible move to add two new stores in Ghim Moh and Clementi and also to take a higher stock variance from its annual inventory count in 4Q2012.  The only nagging problem will be the tight regulations on supply of foreign labor; but Sheng Siong is not all alone facing this problem so it will be resolved in certain ways and format somehow.

 Portfolio walk since previous posting :-

+$5,298 Total Returns as of 8 Feb

-$2 Unrealised positions worsened

+$5,296 Total Returns as of 15 Feb

previous posting :- SRS - Closing status 8 Feb

SRS - Closing Status 8 Feb

I have invested into IHH Healthcare 8 lots in this week using my SRS funds.  Per its IPO prospectus, IHH does not pay any dividends so it is a growth stock.  Its share price has been under selling pressure since mid Jan'13.  But l do not really see anything wrong with this stock counter.  The only thing which doesn't seem right is the way how EPF Board of Malaysia almost on a very frequent basis keep buying up IHH.  I would not feel comfortable if our CPF Board of Singapore is doing the same buying frenzy on any particular stock counter.     
 

 Portfolio walk since previous posting :-

+$5,519 Total Returns as of 1 Feb

-$221 Unrealised positions worsened

+$5,298 Total Returns as of 8 Feb

previous postings :- 
SRS - Closing status 1 Feb

CPF - Closing Status 8 Feb

The buyin on SingPost 1lot happened on 4 Feb at $1.22 and the price range on that day was $1.20-$1.21; so buyin price is not part of the price range for the day.

Luckily the $1k penalty charge is waived.  Applying the oversold 1lot cost of $1310.66 against the the proceed of $1215.79 so l ended up with a nett loss of $94.87.  Oh man, this is really a waste of my money.  Any take away lesson?  I was hoping that silly mistake like this one on SingPost whereby l have entered an incorrect selling quantity can be avoided but l am just like a magnet attracting all these unwelcome silly mistakes every now and then.

For my CPF portfolio this week l have bought Ascott Reit 7 lots.  l see huge growth potential in Ascott Reit.  As Europe economy is still in shambles, it is making use of this time frame to do some asset enhancements works there. I have recently invested into Ascott Reit under SRS portfolio but l have sold it all away within the same week as l have seen a consistent huge sell volume at $1.42 price level back then and l do not know the reason behind it.  In the immediate following Monday Ascott announced that there is a private placement to raise funds for growth opportunities; the private placement was successful at a discount price at $1.305.  Innocent and normal (retail) investor will not have access info to this private placement at a discount price.  Take away lesson is that there have been a consistent sell volume at a particular selling price level before and after Ascott announced a good set of financial results and declared a higher dividend rate so, something is really amiss and hence there is need to be on constant alert and not be overly relying on fundamentals or charts.       

Portfolio walk since previous posting :-

-$4,227 Total Returns as of 1 Feb

-$95 Nett loss on oversold SingPost

-$272 Unrealised positions worsened

-$4,594 Total Returns as of 8 Feb

previous journals :- 
CPF - Closing Status 1 Feb
SingPost - incorrect input

Cash - Closing Status 8 Feb

Invested into Perennial China Retail Trust 15 lots this week under Cash portfolio.  All its development projects are likely to continue progressing well and on-schedule so revenue are expected to roll-in starting from its new financial year.  This will easily cover the reduced distribution income in the next financial year which as mentioned in its prospectus.

Also in this week l have increase my holding in UMS 45 lots so in total l have 57 lots now.  Its share price has been quite stable around $0.45-$0.46 levels for some time now despite current stock market volatility so l have decided to increase my holding in it early this week.  Its decision to move some operations to Penang is a timely move in order to lower its operating expenses in its next financial year.   

Portfolio walk since previous posting :-

+$2,138 Total Returns as of 1 Feb

-$208 Unrealised positions worsened

+$1,930 Total Returns as of 8 Feb

previous postings :- 
Cash - Closing Status 1 Feb

US postal service learning from Singapore

Our local largest mail provider SingPost stopped mail collection and delivery in May 2010; here's the link to the announcement back then :-

SingPost implements 5-day mail collection and delivery service

And now US Postal Service is trying to enforce it in 2013.

>>>>>>>>>>>

news source : AP / CNBC

Published: Wednesday, 6 Feb 2013 | 8:28 AM ET

US Postal Service to Cut Saturday Mail to Trim Costs

The U.S. Postal Service will stop delivering mail on Saturdays but continue to deliver packages six days a week under a plan aimed at saving about $2 billion annually, the financially struggling agency says.

In an announcement scheduled for later Wednesday, the service is expected to say the Saturday mail cutback would begin in August.

The move accentuates one of the agency's strong points — package delivery has increased by 14 percent since 2010, officials say, while the delivery of letters and other mail has declined with the increasing use of email and other Internet services.

Under the new plan, mail would be delivered to homes and businesses only from Monday through Friday, but would still be delivered to post office boxes on Saturdays. Post offices now open on Saturdays would remain open on Saturdays.

Over the past several years, the Postal Service has advocated shifting to a five-day delivery schedule for mail and packages — and it repeatedly but unsuccessfully appealed to Congress to approve the move. Though an independent agency, the service gets no tax dollars for its day-to-day operations but is subject to congressional control.

It was not immediately clear how the service could eliminate Saturday mail without congressional approval.

But the agency clearly thinks it has a majority of the American public on its side regarding the change.

Material prepared for the Wednesday press conference by Patrick R. Donahoe, postmaster general and CEO, says Postal Service market research and other research has indicated that nearly seven in 10 Americans support the switch to five-day delivery as a way for the Postal Service to reduce costs.

"The Postal Service is advancing an important new approach to delivery that reflects the strong growth of our package business and responds to the financial realities resulting from America's changing mailing habits," Donahoe said in a statement prepared for the announcement. "We developed this approach by working with our customers to understand their delivery needs and by identifying creative ways to generate significant cost savings."

The Postal Service is making the announcement Wednesday, more than six months before the switch, to give residential and business customers time to plan and adjust, the statement said.

"The American public understands the financial challenges of the Postal Service and supports these steps as a responsible and reasonable approach to improving our financial situation," Donahoe said. "The Postal Service has a responsibility to take the steps necessary to return to long-term financial stability and ensure the continued affordability of the U.S. Mail."
He said the change would mean a combination of employee reassignment and attrition and is expected to achieve cost savings of approximately $2 billion annually when fully implemented.
The agency in November reported an annual loss of a record $15.9 billion for the last budget year and forecast more red ink in 2013, capping a tumultuous year in which it was forced to default on billions in retiree health benefit prepayments to avert bankruptcy.

The financial losses for the fiscal year ending Sept. 30 were more than triple the $5.1 billion loss in the previous year. Having reached its borrowing limit, the mail agency is operating with little cash on hand.

The agency's biggest problem — and the majority of the red ink in 2012 — was not due to reduced mail flow but rather to mounting mandatory costs for future retiree health benefits, which made up $11.1 billion of the losses. Without that and other related labor expenses, the mail agency sustained an operating loss of $2.4 billion, lower than the previous year.

The health payments are a requirement imposed by Congress in 2006 that the post office set aside $55 billion in an account to cover future medical costs for retirees. The idea was to put $5.5 billion a year into the account for 10 years. That's $5.5 billion the post office doesn't have.

No other government agency is required to make such a payment for future medical benefits. Postal authorities wanted Congress to address the issue last year, but lawmakers finished their session without getting it done. So officials are moving ahead to accelerate their own plan for cost-cutting.

The Postal Service is in the midst of a major restructuring throughout its retail, delivery and mail processing operations. Since 2006, it has cut annual costs by about $15 billion, reduced the size of its career workforce by 193,000 or by 28 percent, and has consolidated more than 200 mail processing locations, officials say.

They say that while the change in the delivery schedule announced Wednesday is one of the actions needed to restore the financial health of the service, they still urgently need lawmakers to act. Officials say they continue to press for legislation that will give them greater flexibility to control costs and make new revenues.

SGX buying-in Securities on February 4, 2013

I have made it to SGX buying-in listing today (4 Feb) on my SingPost 1 lot which l have oversold.  It is the exact 1 lot quantity on the listing.

Announcement link

Buying-In Securities on February 4, 2013

HP NAME QUANTITY

AUSSINO^ 130,000

AsiaMed 50,000

CITYDEV 4,000

CapitaMall 1,000

China Fish 1,000

ChinaAOil 90,000

ChinaBearing 1,000

Chinasing Inv 7,200

CitySpring 50,000

Creative 50 1,000

Dragon Gp 250

Genting HK US$ 5,000

Genting SP 10,000

HKLand US$ 1,000

IEV 198,000

Interra Res 5,000

Ipco 300,000

JB Foods 22,000

K-Green 60

KSH Hldg 3,000

KepLand 1,000

Koh Bros 20,000

MDR 250,000

Mercator 3,000

NOL 1,000

NeraTel 1,000

Oceanus 200,000

Q&MDental 1,000

SPH 1,700

STI ETF 400

Semb Corp 1,000

SembMar 2,000

SingPost 1,000

SingTel 10 43

SingTel 100 900

SingXpress 1,000,000

SuntecReit 30,000

Swiber 5,000

Swing Media 30,000

Tat Hong 100,000

Triyards 5,000

Uni-Asia 10,000

Union Steel 5,000

Wee Hur 50,000

Yoma 35,000

Yongnam 100,000

Note:

Securities will not be available for Buying-In

if they are halted or suspended for trading.

PAGE 1

Cash - Closing Status 1 Feb

For my Cash portfolio this week, l have sold away City Developments 2 lots for a small nett gain of $63.  This nett profit could have been much higher (around 10-12 times more) if l have sold it off in 1-2 days later.  l am not cut into investing in growth stock yet as l realized that l have not mastered the art of being more patient.

My oldest stock holding under Cash portfolio is Hock Lian Seng 6 lots, which l have invested into it in Feb'12.  Its 9M2012 results were quite disappointing.  Revenue and Profit were off 43% and 22% respectively versus YAGO.  So there is a high chance for it to lower its dividend rate when full year results is released some time 3rd week of Feb'13.  It claims strong cash flow but it is really because of a long term borrowings of $60.5 mil as of 9M2012.  l suspect the borrowings amount is very likely to increase further when it release its full year results.  l have sold away Hock Lian Seng at break even in this week.  Over the one course of one year holding in it, l have collected $120 dividends; and adding to the small profit of $5 to it, total yield over the invested cost is 7.6%.  Not so bad after all.

Also in this week l have made two random donations of $50 each to Caritas Singapore Community Council and Muslim Missionary Society Singapore.

Portfolio walk since previous posting :-

+$1,847 Total Returns as of 25 Jan

+$67 Gains on sales of City Developments and Hock Lian Seng

-$100 Donations to Muslim Missionary Society Singapore and Caritas Singapore Community Council

+$324 Unrealised positions improved

+$2,138 Total Returns as of 1 Feb

previous postings :- 
Cash - Closing Status 25 Jan
City Developments, donations, blah blah

CPF - Closing Status 1 Feb

I have SingPost 11 lots in my CPF portfolio and l have sold it all away this week.  Unfortunately, l have entered my sell order as 12 lots hence l have oversold by 1 lot.   I am now faced with a possible $1k penalty charge on my overselling position which will wipe out the $184 nett gain on the 11 lots sold.  This SingPost 11 lots was purchased in Oct'10 and now that it is already in profitable position so l have decided to sell it all away.  SingPost will XD on 7 Feb and for 11 lots l will get $138 dividends (11 lots x $0.0125) if l hold on to it till then.  But l have decided to collect this dividend in advance when l have sold it all away for a nett gain of $184. 

In this week l have also sold away Capitaland 3 lots under my CPF portfolio for a nett gain of $412.  This 3 lots holding was purchased back in Nov'10; l have remaining 1 lot which was purchased in Aug'08.  Capitaland is expected to release  its full year results around mid Feb'13 and is likely to increase its total dividends rates as almost all its subsidiary companies have already reported higher revenue and profit.  Two weeks ago l have invested into Capitaland for 3 lots and sold it away for a nett gain of $536.  The total nett gain $948 ($412 + $536) is easily more than two times its annual dividend amount on 3 lots of shares.  l will not re-invest into it based on friday's closing share price at $3.98 as there is possibility that l would be stuck with this investment at this price level.   A price level of $3.70 and below will be ideal for me to re-invest into Capitaland.      

Portfolio walk since previous posting :-

-$5,268 Total Returns as of 18 Jan

+$596 Nett gain of sales of Capitaland and SingPost

+$445 Unrealised positions improved

-$4,227 Total Returns as of 1 Feb

previous journal :- CPF - Closing Status 18 Jan

SRS - Closing Status 1 Feb

For my SRS portfolio this week, l have sold away City Developments 2 lots for a nett gain of $163.  This nett profit could have been much higher (around 4-5 times more) if l have sold it off in 1-2 days later.  l am not cut into investing in growth stock yet as l realized that l have not mastered the art of being more patient.

My oldest stock holding under SRS portfolio is SGX 1 lot, which l have invested into it in May'11.  Annual dividend yield is around 3.5% so it is a pretty good stock to own.  As the stock is already in profit position so l have decided to sell it away for a nett gain of $38.  Will re-invest into it again when its share price weakens.

When l invested into Sing Investments 7 lots two weeks ago l have actually wanted to keep it for its annual dividend yield of around 5%.  But this week l have sold it all away for a nett gain of $71 because l reckon l have tied up a huge sum of funds into a company which pays dividends only once in each year.  Ideally l would prefer such big amount of investment to be put to work in a much harder cycle of investments and re-investments for a higher returns.  I will re-invest into Sing Inv but this will be limited to 1-2 lots as passive income.

Portfolio walk since previous posting :-

+$5,196 Total Returns as of 25 Jan

+$272 Gain on sales of City Developments, SGX and Sing Investments

+$52 Unrealised positions improved

+$5,519 Total Returns as of 1 Feb

previous postings :- 
SRS - Closing status 25 Jan
City Developments, donations, blah blah