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Friday, June 1, 2018

Safe Heaven Bond

The Singapore Saving Bond : The monthly issuance size of the SSB Programme has been increased to $250m from this month .

 GX 180070N : available for applying from 1st June 9am to 26 th June before 9pm.



 Result will be made known after 27th June .

 Applicant may apply via Internet banking from the 3 local banks such as DBS,Uob & OCBC .

 First year interest is 1.72% & 10 year interest is about 3.41%. You may refer to the table below ;



 Each Savings Bond has a term of 10 years and pays interest every 6 months. Savings Bonds cannot be traded like conventional bonds or shares. Interest income is exempt from tax. Only individuals above 18 years old can apply.

 Savings Bonds are fully backed by the Singapore Government. And because the bonds can always be redeemed for the full amount invested, investors are protected against capital losses when interest rates change.

 This makes them one of the safest possible investments for individuals to hold.



 Save up to 10 years, and earn interest that “steps up” or increases over time. Hold your Savings Bond for the full 10 years and receive an average interest per year that matches the return from 10-year Singapore Government Securities yields, which has generally been between 2%-3%. Flexible : Or, choose to exit your investment in any given month, with no penalties.

There is no need to decide on a specific investment period at the start.



Before you Apply: You will need: A bank account with DBS/POSB, OCBC or UOB. Visit any of the three local banks’ branches in Singapore to open a bank account.

 An individual CDP Securities account linked to any of your bank accounts through direct crediting service (DCS). CDP is the custodian for Savings Bonds and will process applications, interest payments and redemptions. Visit CDP's webpage for information on opening your CDP Securities account.

 $2 transaction fee A non-refundable transaction fee will be charged by the bank for each application request.




After you have Apply: MAS will allot the new Savings Bond among applicants on the 3rd last business day of the month (called the "Allotment Day")You will receive the first interest payment 6 months after the bond is issued. Interest will be automatically paid into the bank account that is linked to your CDP account.

 The application results will be available on the Announcements page after 3.00pm on Allotment Day. Should the total amount of applications exceed the amount on offer in a particular month, you may not get the full amount you applied for (why not?). The excess cash will be refunded to you by the end of the 2nd last business day of the month.

Savings Bonds will be issued on the 1st business day of the following month. You will be notified by CDP via mail of the amount of Savings Bonds allotted to you. You can also check your holdings online through the CDP Internet service or by calling CDP at 6535-7511.



 Received your interest : You will receive the first interest payment 6 months after the bond is issued. Interest will be automatically paid into the bank account that is linked to your CDP account. Interest will be paid every six months after that, on the 1st business day of the month. The interest payments will be reflected in your CDP statements. When your bond matures Each Savings Bond has a term of ten years. At the end of ten years, your principal and the last interest payment will be automatically credited to your DCS bank account.

You do not need to take any action, and the $2 transaction fee is not applicable in this instance. Redeeming early You can redeem your Savings Bonds in any given month before the bond matures, with no penalty for exiting your investment early. To redeem your bond: Submit your redemption requests through the DBS/POSB, OCBC or UOB ATMs, or Internet Banking portals. Redeem in multiples of $500 up to the amount you have invested for each bond. You can redeem more than one bond per month. A $2 transaction fee will apply for each redemption request. Please note that you will not be able to amend or cancel submitted redemption requests.

The redemption period opens at 6pm on the 1st business day of each month and closes at 9pm on the 4th last business day of the month. Redemption proceeds will be paid by the end of the 2nd business day of the following month. Will I receive any interest? Savings Bonds pay interest every 6 months.

If you redeem your bond when there is a scheduled interest payment, you will receive the scheduled interest together with your redemption amount. If you redeem before the scheduled interest is paid, you will receive a pro-rated amount, called the accrued interest, which is the interest you have earned but have not been paid.

CityDev , UOL & Capitaland

Property counter 

The local properly counter are trading on a Down trend mode chart patterns.
This is rather bearish as can be seen from the chart reflected for these 3 counters.
The current price is trading well below its 20, 50, 100 & 200 days moving average.

More over MACD is still trending downwards and it may likely provide further indication that the share price may continue to head further South.



CityDev:

As can be seen from the chart , after hitting the high of $13.50 price level, it has seen corrected sharply and went down to touch the low of $11.06 .

Breaking down of this price level of $11.06 would be super bearish and we can expect to see the price slide further down towards $10.50 .

With Dow overnight gaining +217 points, it might be a good opportunity for those who want to exit/lock in profits when a short rebound may likely happen!

Please do you own due diligence.



UOL:

After touching the high of $9.48 , it has since retreated sharply and went down to touch the low of $7.99 before closing slightly highly at $8.10.
This is rather bearish!

Short term wise, a technical rebound may likely happen. If it is not able to hold above $8.00 price level then it might give way and continue to trend lower to test the next support level at $7.47 .

So , investor or trader may want to watch out for this critical price level at about $8.00 psychological price level.



Capitaland:

After hitting the high of $3.87, it has since correctly sharply and went down to touch the low of $3.44 price level.

Breaking down of this price level would be rather bearish and may likely continue to see price further sliding down towards $3.30 then $3.20 with extension to $3.13.

I think short term wise, we may likely see a short rebound happening soon.
Investor / trader may want to make use of this opportunity to trim their lossses  or exit to lock in their profit.

Not a call to buy or sell.

Trade/invest base on your own decision.




City Developments Limited (CDL) is a leading global real estate operating company with a network spanning 100 locations in 28 countries. Listed on the Singapore Exchange, the Group is one of the largest companies by market capitalisation. Its income-stable and geographically-diverse portfolio comprises residences, offices, hotels, serviced apartments, integrated developments and shopping malls. With a proven track record of over 50 years in real estate development, investment and management, CDL has developed over 40,000 homes and owns over 18 million square feet of lettable floor area globally. Its diversified land bank offers a solid development pipeline in Singapore as well as its key overseas markets of China, UK, Japan and Australia.

UOL Group Limited, through its subsidiaries, primarily engages in property development and management, property investments, and hotel businesses. Its property development projects include residential units, office towers and shopping malls, and hotels and serviced suites. The company also owns and/or manages approximately 30 hotels under the Pan Pacific and PARKROYAL names in Asia, Oceania, and North America with approximately 10,000 rooms in its portfolio. In addition, it is involved in the rental of serviced suites, commercial offices, and retail malls; treasury services business; management of serviced suites; operation of restaurants; and management and operation of health and beauty retreats and facilities. Further, the company engages in the retail of computer hardware and software; property trading business; management and licensing of trademarks; and provision of information technology related products and services. UOL Group Limited has operations in Singapore, Australia, Vietnam, Malaysia, the People’s Republic of China, Myanmar, and the United Kingdom. The company was formerly known as United Overseas Land Limited and changed its name to UOL Group Limited in 2006. UOL Group Limited was founded in 1963 and is based in Singapore.

CapitaLand Limited, together with its subsidiaries, develops, owns, and manages real estate properties in Singapore, China, other Asian countries, Europe, and internationally. The company operates through four segments: CapitaLand Singapore, CapitaLand China, CapitaLand Mall Asia, and Ascott. Its real estate portfolio includes integrated developments, shopping malls, serviced residences, offices, and homes. CapitaLand Limited also owns and manages real estate investment trusts and funds; invests in real estate financial products and assets; and provides investment advisory and management services. The company was formerly known as Pidemco Land Limited and changed its name to CapitaLand Limited in November 2000. CapitaLand Limited was founded in 1989 and is headquartered in Singapore.

Bank counter - DBS, OCBC & UOB

The 3 local bank counters are having quite similar chart patterns as shown on the daily candlestick chart patterns.

All 3 counter current price are trading below its 20, 50 & 100 days Moving average.
Looks rather bearish!



OCBC Bank:

It has experienced a Gap down on 30th May 2018 from the previous closing price of $12.99 to touch the low of $12.51 before manage to close slightly higher at $12.66 price level.

The current price of $12.53 is staying slightly above its 200 days moving average at about $12.36 level. Breaking down of $12.36 level , it would be super bearish and may likely continue to slide down to test $12.25 then $11.90 with extension to $11.40.



DBS :

Similarly for DBS , it is having a Gap down scenario on 30th May 2018 whereby the price went down to touch the low of $28.140 before closing slightly higher at $28.23 level as compare to previous day  closing price of $29.15 level.

Looks rather bearish and it may continue to go lower to test $28.14 then $$27.60 with extension to $26.30.



UOB:

It has gone down to touch the low of $28.16 before closing slightly higher at $28.36 price level as compare to the previous day closing price of $29.29 .

This is rather bearish and the price may likely to go lower to test $28.00 then $27.45 with extension to $26.00.

Not a call to buy or sell.

Please do your own due diligence.


Some discussion about the recent selling down:



Any reason u can think of to cause these drags on all 3 banks after reporting excellent results???
Sporeshare
Reply to @AllenYip : I think is kind of selling after result . Moreover bank counter are trading at P/B 1.4-1.6 seems expensive. The correction is healthy.. I think any short rebound due to Dow overnight +219 it might be a GD opportunity to exit /lock in profit. Pls dyodd
limchris8
Reply to @AllenYip : The answer is simple. Fund managers pushing up bank stocks or any stock prices are not here for charity. They would not wait for ordinary investors to take profit before them. As bank stocks reached few 52-week highs, it was natural to take profit thereby causing corrections. Besides, there are too many uncertainties/volatility this year. It is wise to take money off the table. With nice capital gains & dividend, why shouldn't they take profit? Furthermore, the reporting season for banks is over. Wait till the next reporting season, the games will repeat again..


Oversea-Chinese Banking Corporation Limited provides financial services in Singapore, Malaysia, Indonesia, Greater China, other parts of the Asia Pacific, and internationally. The company's Global Consumer/Private Banking segment provides a range of products and services to individuals, including checking accounts, and savings and fixed deposits; housing and other personal loans; credit cards; wealth management products consisting of unit trusts, bancassurance products, and structured deposits; and brokerage services. This segment also offers investment advice and portfolio management, estate and trust planning, and wealth structuring services for high net worth individuals. Its Global Corporate/Investment Banking segment provides project financing, overdrafts, trade financing, and deposit accounts; fee-based services, such as cash management and custodian services; and investment banking services, including financing solutions, syndicated loans and advisory services, corporate finance services for initial public offerings, secondary fund-raising, and takeovers and mergers, as well as customized and structured equity-linked financing services. It serves corporates, public sector, and small and medium enterprises. The company's Global Treasury and Markets segment is involved in the foreign exchange activities, money market operations, and fixed income and derivatives trading, as well as provision of structured treasury products and financial solutions. Its OCBC Wing Hang segment offers commercial banking, consumer financing, share brokerage, and insurance services. The company’s Insurance segment provides fund management services, and life and general insurance products. Its Others segment is involved in property and investment holding activities. As of May 7, 2018, the company operated a network of 590 branches and representative offices in 18 countries and regions. Oversea-Chinese Banking Corporation Limited was founded in 1912 and is headquartered in Singapore.

 DBS Group Holdings Ltd, an investment holding company, provides commercial banking and financial services in Singapore, Hong Kong, rest of Greater China, South and Southeast Asia, and internationally. It operates through Consumer Banking/Wealth Management, Institutional Banking, Treasury Markets, and Others segments. The Consumer Banking/Wealth Management segment offers banking and related financial services, including current and savings accounts, fixed deposits, loans and home finance, cards, payments, investment, and insurance products for individual customers. The Institutional Banking segment provides financial services and products for bank and non-bank financial institutions, government-linked companies, large corporates, and small and medium sized businesses. Its products and services comprise short-term working capital financing and specialized lending; cash management, trade finance, and securities and fiduciary services; treasury and markets products; and corporate finance and advisory banking, as well as capital markets solutions. The Treasury Markets segment is involved in structuring, market-making, and trading in a range of treasury products. The Others segment offers stock broking and Islamic banking services. The company operates approximately 280 branches across 18 markets. DBS Group Holdings Ltd was founded in 1968 and is headquartered in Singapore.

 United Overseas Bank Limited provides financial products and services. The company’s Group Retail segment provides deposits, insurance, card, wealth management, investment, and loan and trade financing products for personal and small enterprise customers. Its Group Wholesale Banking segment provides financing, trade, cash management, capital markets solutions, and advisory and treasury products and services. The company’s Global Markets segment offers foreign exchange, interest rate, credit, commodities, equities, and structured investment products; and manages funds and liquidity. Its Other segment provides investment management, property, and insurance services. The company has a network of approximately 500 offices in 19 countries and territories in the Asia Pacific, Europe, and North America. The company was formerly known as United Chinese Bank and changed its name to United Overseas Bank Limited in 1965. United Overseas Bank Limited was founded in 1935 and is headquartered in Singapore.

Thursday, May 31, 2018

Wilmar Intl

Holding up well within the range of 3.20 to 3.26 . Looks like it may likely re-captured $3.28 . Breaking out of $3.28 with ease + good volume that may propel to drive the price higher towards $3.30 then $3.40.


I think the dir has bought back share again at $3.20 per share .

http://infopub.sgx.com/Apps?A=COW_CorpAnnouncement_Content&B=AnnouncementLast12Months&F=WGMX1YIGZQV8TT6W&H=fa52113b6aac6e348f976b8f1644381902142a5ff2c3c7c0c6d9bcaf2d53b2fc


Not a call to buy or sell.

Please do your own due diligence.




18 May 2018 - Wil dir has been buying up share after the released of their first quarter result!

He has snapped up share raning from $3.11 to $3.15.



Without this support ,price may have corrected lower.



It has now managed to recover and fill up the Gap at $3.21.
Yesterday closed well at $3.23, looks rather bullish!



It may move up to retest $3.28 soon!

Do take note that it's NAV is about $3.30-$3.40.



Wilmar Intl Went up to touch the high of $3.27 but was being sold down end of the day to close at $3.21 . Down 4 cents from $3.25 yesterday closing price.

It seems like some insider news being leaked prior to result was released after trading hours.

1Q 2018 result, Total revenue was up 5.7% to 11.116m.Net profit was down 37.2 % to US183.4m , EPS of 3.2 (US) due to lower palm oil price and sugar ops loss.

Ops cash flow was healthy generating US1.83m.

NAV of $3.40.

Not a call to buy or sell.

 Wilmar - touch $3.26 again. Looks rather bullish! Breaking out with ease may sail smoothly towards $3.30.

MACD is rising that may likely provide further indication that the share price may likely continue to trend higher.





Price is hovering above the SMA lines. High chance for a nice breaking out moment that may take the price higher to 3.30 and $3.40 and above.

Not a call to buy or sell.
please do your own due diligence.




Wilmar Intl - NAV $3.304, Rolling EPS 0.306, PE 13.721.


Together with Interim dividend of 3 cents. Total dividend is 10 cents. Yield is 3.2% at $3.12 per share. The recent share buying back by company director of 2.44m share at $3.103 per share & 79300 share at $3.18 per share may likely be a boost of confidence.. I have jeep small lots at $3.12 today.


.I am buying for the future growth and may be the listing of their China ipo.. dyodd. Reply to @Sporeshare : Ah.....This is the golden big question! If Wilmar is really pushing for an IPO of their China operations in Shanghai exchange, I think can look at other similar commodity giants that are already listed in Shanghai exchange to see where are they trading now in their price to earnings multiple. That will give us a good gauge what types of multiples we are potentially looking at. Surely, we cannot expect Wilmar to list their China operations at too low a gap from their peer competitors on Shanghai exchange. If that is the case, why still push for IPO listing if the valuation it would fetch is not attractive at all? If want to unlock value by the IPO, might as well unlock it well.

 I attached an article from TheEdgeSingapore which an analyst pegs a target price of $4.10 based on an attractive valuation now, strong crushing margins so far in FY18 and the anticipated listing of its China unit. You can read through the article to see the rationale put forth by the analyst. In any case, we are not trying to be precise in forecasting our target price.



 The analyst puts forth a possible listing of the China unit at up to 23 P/E ratio on the Shanghai exchange. Based on good common sense and my previous sharing, Wilmar's share price definitely has all the good catalysts as we can see currently going for it to reach a higher price level. My previous estimated fair price of $3.18 is based on a worst case scenario. Unless we think Wilmar will eventually fail in all accounts of the prospected catalysts in having weaker overall performance this year and anticipated listing of it's China unit falls through, then worst case scenario may pan out. Thus, the downside as I can see on probability terms is low while upside has high probability of happening. Therefore, if you ask me, is $4 you quoted likely to reach in future? My answer is even if not reaching $4, I think the probability of the share price rising higher from current level in view of all these potential future catalysts is surely there. How about a $3.60 price in future based on my "anyhow" guess? I think that will be already at least a good perk of 11.5% share price gain if it really happens by this year end. $4.10 will be even more "shiok" with a potential return of 26.9% if it really happens within one year's time based on the analyst's target price in this article by

TheEdgeSingapore! I think it is a case of making either more or lesser returns from this bet here on Wilmar. As long as one does not chase at higher price if it should chiong but instead has already accumulated cheap in advance, one should be falling into the case of making more or lesser returns on this bet hopefully within one year's time frame. https://www.theedgesingapore.com/wilmar-kept-add-valuations-strong-crushing-margins-and-upcoming-listing-china-unit Wilmar International. The overall feel I have of this large agricultural international group is that it already has extensive and deep degree of reach in it's agricultural and related businesses in terms of many geographical regions they are in (about 50 countries as reported on their website with about 500 manufacturing plants worldwide) and also the entire value chain they are serving from upstream plantation and harvesting to mid stream processing and refining to downstream distribution and sales of their final products to consumers. On a one decade time frame, Wilmar International has compounded it's revenues at a CAGR of 10.3% which is respectable and not surprising considering how significant this group has grown over the years. It's operating income has compounded at a CAGR of 8.1% over the past decade. It's net income has compounded at a CAGR of 7.7% over the past decade. It's EPS has compounded at a CAGR of 4.1% over the past decade. Again, this looks like a moderate to slow grower over the past decade just slightly better than SATS that we looked at previously in terms of the growth in it's profitability. If we look at their past 5 years trend for the revenue, operating income, net income and EPS, there was a dip in all these metrics after FY12 onwards which only recovered in their FY17 results near to FY12 levels.




 qUOTE : I checked up the palm oil historical prices and indeed it confirmed my thinking that this dip over the past 5 years which only recovered recently was probably correlated to the drop in palm oil price over the past 5 years. Currently, palm oil price has recovered from the lows but still it is now only two-thirds of the last peak price reached in 2012. The big question is whether the palm oil price will continue to recover towards the last peak price reached in 2012 going forward or continue to hold around current price and do a ding-dong in price, sometimes up and sometimes down but no clear up direction for the next few years? This I do not know as I think only insiders of the palm oil industry will know the dynamic factors of global supply and demand affecting palm oil prices. I consider this as outside my circle of competence. But looking at palm oil historical prices, it sure looked quite volatile to me and hard to grasp.{ jeremyowtaip} As such, the various trend on their returns on assets (ROA), returns on equity (ROE) and returns on invested capital have also dipped over the past 5 years and have almost recovered in the latest set of FY17 results to close to same returns as FY12. However, the various returns are still single digits returns in %. For example in FY17, ROA is now around 3% while ROE is around 7.6%. If we stretch further backwards to compare their current returns against one decade ago which the various returns were higher in FY07 of ROA around 6.7% while ROE was around 13.8%, we can clearly see that Wilmar is now not a high return beast as it used to be a decade ago. It seems that it is not easy to attain the same returns as before anymore now that Wilmar has outgrown so much that at it's current size it cannot generate the same returns on assets and shareholder equity as before. Now again, the big question is how will the various returns going forward in future years be like? Will it remain around same level as now or become lower? Size is one thing which makes it increasingly difficult to generate the same level of returns. What if they can grow their revenue and profits further in future years should palm oil prices recover? Maybe there could be a chance to improve their returns though going back to double digits returns likely will be difficult.




This would mean they have to increase their current net profits by another approximately 120% at current size of total assets for example to go back to previous decade ago record of ROA. A jump in 120% increase in net profits at current level of USD 1.22 billion for WIlmar next year based on core businesses and not through some non-recurring disposal of assets? One must be joking to ask the dog to jump over the high wall! The financial leverage of Wilmar has been steady over the years managing their debts level and balance sheet well. Cash flows wise though can be volatile seems to still generate free cash flows at least enough to pay a dividends which has grown over the past decade. Their CAGR for EPS over the past 5 years has been about 0% even though 10 years CAGR was 4.1%. I will factor in a best case scenario and a worst case scenario in estimating their fare share price value taking into account all the above mentioned details of this comment. If we make a best case scenario of Wilmar continuing to grow it's current EPS at CAGR of 4.1% going forward, then using my method of estimation, their fare share price will be $4.25. However, if we make a worst case scenario of a CAGR of 2% on their EPS going forward for next business cycle (7 years), then their fair share price will be $3.18. This is mind-blowing! It all depends on the performance of Wilmar going forward. If they can parallel their historical compounded growth rates on their EPS, then it will be a bonus to buy their shares now at cheap cheap share price! However, should they grow at a lower forward CAGR about somewhere half in % terms on their EPS, then we are exactly getting Wilmar now at fair value $3.18 and it will not be cheap now to buy! This really requires an investor's forward opinion on how Wilmar will perform for next 7 years cycle to decide whether to put in his or her stake at current price. Will this be a value buy or value trap? Hmm Wilmar International has since diversified their commodity businesses over the years into business segments including tropical oils, oilseeds and grains, sugar and biofuels and other investment businesses. This horizontal diversification and vertical integration tapping at all levels of the value chain has allowed Wilmar to grow to it's current humongous size despite being in a general low profit margin agricultural commodity businesses. I forgot to mention another important piece of bright spot for Wilmar! I read up in it's most recent financial report that they are considering looking at an IPO listing of their China rice, flour and related consumer products operations in China.


http://sbr.com.sg/agribusiness/news/wilmar-eyes-china-expansion But things are still in the early stage of assessment. If that were to happen, imagine the craze of investors rushing in for this potential spin-off of their China businesses which will unlock value for shareholders. Then, buying at current share price is now cheap if we factor in this potential unlocking of value from such a future proposition which will increase their profits and returns by some substantial jump if that were to happen some time down the road. It may happen as early as 2019 based on a write-up by Singapore Business Review. Hmm....I am now starting to get somewhat interested after knowing this. Some info on Shree Renuka Sugars I found out. It is the largest raw sugar producer in India and Brazil. As what the others have pointed out, the management was too aggressive in their overseas expansion bet in South America which didn't go well chalking up huge debts. This is because after year 2012, the sugar prices dropped from their peak reached and also correlated to Shree Renuka's operating losses from 2013 to now as sugar prices remain lower and now only recovered to two-third of the peak price reached in 2012. Wilmar has this chance to acquire a controlling stake in Shree Renuka Sugars because the latter chalked up so much debts from their aggressive expansion to South America market which didn't pan out well. Thus, during this current debt restructuring exercise, Wilmar can take this opportunity to acquire a controlling stake in the equity of India and Brazil largest raw sugar producer Shree Renuka Sugars. quote :I will need to examine the financial strength of Wilmar whether they can take on this acquisition without risking themselves too much. But, the offer to acquire a controlling stake in Shree Renuka Sugars by itself sounds to be a wonderful move. If sugar prices should continue to recover to previous peaks in 2012 and earlier, Shree Renuka Sugars may be able to return to better profitability again. The return on invested capital for Shree Renuka Sugars before they went downhill in 2013 are still good. If Wilmar after acquiring Shree Renuka Sugars can turnaround this largest sugar producer in India and Brazil successfully, it will be very good for Wilmar to further expand their sugar business significantly.




PS: Shall investigate whether Wilmar is strong enough to take on this acquisition without stressing their balance sheet too much. Get back to you again. I did an estimation on the required amount for Wilmar to make the acquisition of shares in Shree Renuka Sugars based on regulations of Securities and Exchange Board of India after Wilmar converted it's convertible preference shares to common equity shares and triggered the regulations of the exchange to make an offer to acquire up to 26% of the emerging share capital of Shree Renuka Sugars. The cash outlay needed to acquire up to 26% of the emerging share capital of Shree Renuka Sugars is approximately USD 124 million. Wilmar has about USD 2.96 billion in cash and equivalents plus other bank deposits. It's current ratio stands at around 1.15 based on FY17 financial report. This acquisition requires very small cash outlay for Wilmar as compared to the cash and bank deposits it now has. However, after the acquisition of a controlling stake in Shree Renuka Sugars has been completed, I am not sure how much remaining debts of Shree Renuka Sugars Wilmar will carry as some of the debts owed to the lenders have been converted to equity in Shree Renuka Sugars. I checked up Shree Renuka Sugars balance sheet as at Sep 17. They carried a total of about USD 1 billion worth of total liabilties on their balance sheet. With some of the borrowings of Shree Renuka Sugars converted to equity, the total liabilities should be lesser than this figure. Thus, with Wilmar's existing USD 2.96 billion in cash and equivalents plus bank deposits and if we consider Wilmar's current assets of total about USD 22.6 billion, Wilmar definitely has much more than enough resources to cover the liabilities of Shree Renuka Sugars even after Wilmar completes this acquisition of a controlling stake in it.


 There is no concern at all in acquiring a controlling stake in Shree Renuka Sugars for Wilmar. Instead, Wilmar would have gotten this India and Brazil largest raw sugar producer under it's wings.(jeremyowtaip) But having said that, those few stocks we discussed about like Wilmar and Thai Beverage are good stocks to hold for the longer term as there are future potential catalysts in them. The potential listing of China operations for Wilmar which will unlock value for shareholders and may re-rate share price higher. The future long term contributions to earnings and returns from the new acquisitions for Thai Beverage will outpace the cost of their initial investment. The market position of Thai Beverage has strengthened as a leader in this Southeast Asia region with these acquisitions. The fair share price of Thai Beverage I cannot determine at the moment. But, in future the direction of the share price can only go one way which is up as the new acquisitions start to increase the overall profitability and cash flows further while the debts get slowly reduced over time. For SATS, it is a steady slow grower. Just need a bear market to grab it cheap at fair value or lower than fair value and see the price will bounce back and trade higher than fair value due to so many favourables surrounding it which may continue for a very long number of years ahead.

Wednesday, May 30, 2018

YZJ

Dow jumps more than 300 points after banks rebound; small caps hit new record.





The company bought back 5m share at 90-91.5 cents, looks like we may see a strong rebound today especially with Dow gaining 300+ points overnight.





  • The Dow Jones industrial average rose more than 300 points, with Boeing, Chevron and Home Depot leading the blue-chip stocks higher. The Russell 2000 hit a new high.
  • The euro recovers much of its previous losses with a 1.1 percent climb against the greenback to $1.166.
  • An uptick in rates push the big banks upward, with Goldman Sachs, J.P. Morgan, Citigroup, Morgan Stanley, Bank of America and Wells Fargo all finishing up more than 1 percent.
  • Crude oil futures settled higher Wednesday, with West Texas Intermediate (WTI) up $1.48, or 2.22 percent. (Cnbc.com)

Chart wise, we have witnessed the price Gap down from 95 cents to touch the low of 90 cents . It has manage to bounce-off from this level and closed higher at 92.5 cents .



Looks like we are seeing a hammer shape candlestick bar is appearing on the chart, seem like bull is able to take control of the situation.

Short term wise, we may likely see a reversal play taking place it it is able to overcome 97.5 cents and rises back to $1.00 and above .

Not a call to buy or sell.

Please do your own due diligence.

NAV of $1.29.
Dividend of 4.5 cents





Yangzijiang Shipbuilding (Holdings) Ltd., an investment holding company, operates in the shipbuilding activities. The company operates through Shipbuilding, Investments, Trading, and Others segments. It produces a range of commercial vessels, such as containerships, dry bulk carriers, oil tankers, and liquefied natural gas (LNG) carriers. The company also engages in the production and processing of steel structures. In addition, it facilitates the sale and export of ships for the ship builder; trades in ship related equipment and shipbuilding related materials/supplies; provides microcredit to enterprises and individuals; invests in held-to-maturity financial assets; and supplies marine equipment and materials. Further, the company is involved in the ship demolition and vessel owning activities. It primarily serves ship owners in the United States, Canada, the United Kingdom, Germany, France, Greece, Norway, Argentina, Turkey, Bulgaria, Poland, Australia, Japan, South Korea, Singapore, India, Thailand, Bangladesh, Mainland China, Hong Kong, Taiwan, etc. The company was founded in 1956 and is headquartered in Jingjiang, China.



Tuesday, May 29, 2018

DBS,OCBC & UOB

Dow losses almost 400 points to close lower at 24,361.45 amid losses in Goldman Sachs, Boeing, and J.P. Morgan Chase. At its lows, the index lost more than 500 points, or 2 percent.
The S&P 500 fell 1.16 percent to close at 2,689.86, while the Nasdaq composite fell 0.5 percent to finish at 7,396.59.

Stocks extended their losses throughout the day as European exchanges closed and the euro fell further against the dollar.
Concerns about a global credit blight and anemic interest rates appeared to weigh on U.S. financial stocks Tuesday, sending shares of the nation's largest banks tumbling. Goldman Sachs, J.P. Morgan, Citigroup, Morgan Stanley and Bank of America all lost more than 3 percent.
The Financial Select Sector SPDR (XLF) exchange-traded fund fell 3.34 percent, below its 200-day moving average.
Banking investors could be nervous that a decline in global credit could lead to collateral damage to holders of international bonds, though widespread strengthening in global government debt Tuesday also dampened the banking outlook. (Cnbc.com)

Likely to see bank counter such as DBS, Ocbc & Uob being selling down today due to not so rosy market sentiment.

DBS may likely go down to retest it's recent low of $28.51 level. Breaking down of this level would be rather bearish and may likely see it goes further down towards $28 with extension to $27.00.


Not a call to buy or sell.

Please do your own due diligence.