As from April 2013 my Journey in Investing is to create Retirement Income for Life till 80 years old for two over market cycles of Bull and Bear.

Welcome to Ministry of Wealth!

This blog is authored by an old multi-bagger blue chips stock picker uncle from HDB heartland!

"The market is not your mother. It consists of tough men and women who look for ways to take money away from you instead of pouring milk into your mouth." - Dr. Alexander Elder

"For the things we have to learn before we can do them, we learn by doing them." - Aristotle

It is here where I share with you how I did it! FREE Education in stock market wisdom.

Think Investing as Tug of War - Read more? Click and scroll down



Important Notice and Attention: If you are looking for such ideas; here is the wrong blog to visit.

Value Investing
Dividend/Income Investing
Technical Analysis and Charting
Stock Tips

Tuesday, 31 January 2012

CIT’s distributable income up 12.7% for FY2011

Total assets exceed S$1.1 billion


• NTA per unit rose to 62.0 cents from 60.7 cents in previous year

• Strong balance sheet and gearing ratio of 33.1% keep CIT poised for expansion opportunities

• CIT continues to enhance asset portfolio and kick-starts two built-to-suit development projects

• Starts off FY2012 with acquisition of 3C Toh Guan Road East, divestment of 7 Ubi Close and new 7-year pre-lease commitment from an anchor tenant at 88 International Road

Biosensors - Set another new record!!!

A new all time high @ $1.64
A new all time high closing @ $1.62



The Bulls may have run out of patience???



Monday, 30 January 2012

Why it is easier to become rich from property and not stocks?

We are more likely to hear people becoming rich in properties than in stocks. Read and understand the wisdom from Soros and you will know why?



"It's not whether you're right or wrong that's important, but how much money you make when you're right and how much you lose when you're wrong." ~ George Soros

Risk and Substantial Stake

Even you are good at picking a few multi-baggers in your portfolio; do you have substantial stake in these multi-baggers to become rich?

Do you dare to take up significant risk to build up high stake in these high growth stocks which may be your potential multi-baggers to become rich? How many people have steel balls?

In property investing, the story is different, you don't need to have steel ball to play because once you are in it. You already put up substantial stake without even noticing it and even leverage up to play this game.

You become rich not because property is a good investment instrument. You actually become rich because you are less risk averse and you put in substantial stake and leverage it up. That is the reason why it is easier to become rich in property and not stocks.

The moral of the story.

To become rich, you must be comfortable with risks and put in substantial stake. If your multi-baggers are not among your top holding in your portfolio, it is very hard to become rich in stocks.  You may be better off doing property investing.




Olam invests US$75m in Russian Dairy Co

By CARINE LEE


Olam International Limited on Monday announced that it has invested US$75 million for a 75 per cent stake in Russian Dairy Company, a growing player in the Russian dairy industry.

The company plans to develop large scale dairy and grains farming in the Penza region of Russia.

'The investment in Russian Diary is another important step towards the implementation of Olam's dairy and grains strategy, which involves selective integration across the value chain with a focus on building end-to-end capabilities,' said Sunny Verghese, CEO of Olam.

Russian Diary plans to invest US$400 million over the next four to five years to expand the area under grains cultivation from the current 52,000 hectares to 106,000 hectares.

It will also construct four new modern dairy farms to increase the total milking cows population to 20,000 heads from 3,600 heads.

The company also has plans to establish a training and development centre aimed at inculcating best practices in international farming and milk production.



Sunday, 29 January 2012

Passive income ONLY - You can't really get rich with it! (2)

Read? Passive income ONLY - You can't really get rich with it!

Anyone has read an article or personally know someone who is NOT rich and became rich through passive income investing. Not me. I have yet to read one on it.

But, I knew there are people who became rich either through huge capital gains or successful leveraging up on their investment.


Passive income ONLY - You can't really get rich with it!

Read? Does Your Account Size Matter? - Part 3

You can't really get rich with it!

When your account size is not extremely large, you can't get rich with passive income ONLY. Passive income from property rentals, stock dividends or bond coupons. However, it may be possible; but it will take decades of doing it right to become rich.

To Get Rich = Getting  more and more Total Return

Total Return = Capital Gain + Passive Income.

Passive income is generated from the "utility" of property, stock or bond. It is an expected form of return from this "utility".

So where does Capital Gain come from?

The Greater Fool theory!

Your capital gain must come from "Greater Fool" in the market who will hand over part of their hard earned money from their jobs to you in the form of speculation. The large Capital Gain in the market must come from many Greater Fools speculating and handing over part of their hard earned money from their jobs slowly to the Better Fools. When more and more Greater Fools start chasing it you can become rich pretty fast.

"The market is not your mother. It consists of tough men and women who look for ways to take money away from you instead of pouring milk into your mouth." - Dr. Alexander Elder




Thursday, 26 January 2012

Kep Corp - Order book and deliveries


Look like deliveries in 2012/2013 is still healthy despites much lower order in 2009/10


10% dividend yield for 10 years? Fact or Fiction? (2)

Read? 10% dividend yield for 10 years? Fact or Fiction?

Kep Corp FY 2011 full year dividend = $0.17 + $0.26 = $0.43 after bonus issue.

Highest dividend yield = 32.7%
Average dividend yield = 16.6%

High yield for a blue chip is not a fiction!














Kep Corp FY 2011 Report Card


1. Net profit improved 14% to S$1,491 million, compared to FY 2010's S$1,307 million (restated).

2. Earnings Per Share of 83.8 cents, up 13% from FY 2010's 74.3 cents (restated).

3. ROE of 21.6%.

4. Economic Value Added increased from S$964 million to S$1,024 million.

5. Total dividend increased to 43.0 cents per share, comprising a final dividend of 26.0 cents and an interim dividend of 17.0 cents already paid.

6. Net gearing of 0.17x.












Wednesday, 25 January 2012

Singapore's CPI up 5.5% on-year in Dec

SINGAPORE: Singapore's consumer price index (CPI) rose 5.5 per cent on-year in December.


That's down from 5.7 per cent in November.

This is according to data from the Department of Statistics (DOS) released on Wednesday.

DOS said the lower CPI reading was largely due to a smaller increase in the cost of private road transport - which moderated at 12 per cent year-on-year compared to 14 per cent in the previous month.

But housing costs - which was 11 per cent higher during the month - kept inflation elevated.

For the whole of 2011, inflation averaged at 5.2 per cent.

This year, inflation is expected to hover between 2.5 and 3.5 per cent, according to the Monetary Authority of Singapore and the Ministry of Trade and Industry.

- CNA/cc

Tuesday, 24 January 2012

Monday, 23 January 2012

My yearly living expenses (cash only)

Read? Year-end budgetting for the next 2 years


Tightening the belt in 2009 due to sub-prime crisis in 2008/09 as expected. LOL

Entering the Year of Dragon!

Just For Thinking ....

Your investing goals for the Year of Dragon!

Property, Stocks, Bonds, Gold or Silver?

It doesn't really matters!

It is not any particular investment instrument that brings us more wealth in the Year of Dragon. It is the successful execution of 3M's - Method, Mind and Money that will bring us more wealth.

It is you! The man or woman behind the 3M's that counts. If you believe you can't. You can't!


Sunday, 22 January 2012

The last newspapers reading on property vs. stock debate before leaving Rabbit and entering the Dragon

Just For Laugh ...

How come we never hear stories of property investors who have burnt their backside in newspapers?

But, I often hear from friends and relatives that so-and-so are holding stuck properties (net losess) like stuck stocks. Monthly rental also not enough to cover losses.

Entering the Dargon Year. Gong Xi Fa Cai!


Wishing all readers Good Health and a very Happy Dragon Year!

Saturday, 21 January 2012

XIRR/CAGR: Investor's true performance indicator! (6)

Read? XIRR/CAGR: Investor's true performance indicator! (5)

Uncle8888, how to back track my investing capital and investible cash to compute XIRR since investing?

If you have all your stock transaction records and dividends statement, you can back track your capital and work out your current investible cash and then proceed to compute your XIRR.

One reader, OT has done it with the assistance from Uncle8888. He can now measure and visualize his portfolio XIRR and can fine-tune his investing strategies to meet his long-term investing goals.























If you like to have the sample file to compute your XIRR since day one of your investing, email me. LOL!

XIRR/CAGR: Investor's true performance indicator! (5)

Read? XIRR/CAGR: Investor's true performance indicator! (4)

Read? Two Bank Accounts? No, You may need Four! - (4)

How can I easily maintain and track investible and virgin cash?

It is lot easier if you have your investment bank account linked to your broker and CDP.

See the following examples. No sweat tracking.








When I add more spare cash e.g $20,000 into investment bank account for future investment opportunity in stocks






When I sell $20,000 stock, my bank account will be credited with 20,000 by my broker.






Still blur?

Then you have to buy Lasksa set at ToastBox for 1-to-1 coaching. LOL!


Friday, 20 January 2012

XIRR/CAGR: Investor's true performance indicator! (4)

Read? XIRR/CAGR: Investor's true performance indicator! (3)

Another good reason why we must fully aware of our average rate of return over market cycles.

Read on. You may understand it better.

Retirement: how much is enough?


Funding your retirement years comfortably is a trade-off between playing it safe, taking risks and spending prudently

By BEN FOK

AT A FAMILY function, my 60-year-old cousin Peter asked me for my views on retirement planning. He said that over the last 35 years he has worked hard, consistently saved and prudently invested his money. When he retires in two years' time, this should provide him with a nest egg of about $500,000. As I listened to him, it seemed that he had secured his financial future. But he kept asking: 'Is it really enough?'

At this age, many would expect to have a significant retirement nest egg. If they don't, they had better do something about it now.

In Singapore, our official statistics show that there are more than 300,000 individuals aged between 50 and 54 who are due to retire in 10 to 15 years' time. As a financial adviser, I often discuss this subject with my clients but often this issue is not treated as a top priority. Understandably, there are other priorities, such as children's education and mortgage repayments or other immediate needs, that take precedence over retirement planning.

Given the current economic volatility, the outlook for those planning their retirement is very cloudy. Over the last two years, we have seen the cost of living here increasing yearly, making retirement more expensive and resulting in many more Singaporeans having to put off retirement for a few more years. With higher longevity and people not saving enough, the working population of those aged 60 and over will inevitably continue to rise.

In Peter's case, he and his wife are healthy and they are likely to have a long life ahead of them. So it would be a mistake to concentrate solely on what's happening now or even on what might happen months from now. Rather, they should focus on coming up with a spending and preservation plan that can assure them of enough money to live comfortably for the next 25-30 years, if not longer.

Hence, funding your retirement years is a trade-off between playing it safe, taking risks and spending prudently.

With the nest egg that Peter has accumulated, he can create a cash flow, and that is the most important consideration during his retirement. At this point, he has to set a reasonable withdrawal rate that will give him the spending cash he needs but won't deplete his nest egg too soon. Peter asked: 'How much can I safely withdraw from my retirement fund every year?' It is obvious that a miscalculation could result in an involuntary return to the workforce or having insufficient funds for retirement.

To help Peter understand how much he can withdraw, I produced a table to show the number of years his money will last.


The table shows withdrawal rates ranging from 4 per cent to 13 per cent and annual growth rate of investment from 3 per cent to 12 per cent, which resembles a 100 per cent stocks to a 100 per cent bonds portfolio.

It also shows how many years a sum will last at various withdrawal rates and various rates of return. If the withdrawal rate and the rate of return are the same, the principal will not change. For example, when $100,000 earns 8 per cent per annum and 8 per cent is drawn, the principal stays the same. This is another strategy by which a retiree can create an income stream. So if Peter invests $500,000 in a diversified investment that can give him 5 per cent returns, he can make $25,000 per year of withdrawals without affecting his principal.

However, if $100,000 earns 4 per cent per annum ($4,000) and 8 per cent ($8,000) is withdrawn annually, the $8,000 annual income will continue for 17 years before the principal is gone.

It is important to understand that the rate of return and the withdrawal rate determine how many years the principal will last. There are no guarantees, of course, but generally the lower your withdrawal rate, the better the chances that your money will last throughout your retirement. But when the earnings are less than the amount that is taken out, you are dipping into your principal, so your money will not last for a long time.

If you start withdrawing a small amount from your portfolio, and adjust it for inflation, the chances are that your money will last longer whether you invest relatively conservatively or aggressively.

So to enjoy a decent retirement, you need to be responsible for your old age by starting to save adequately and invest prudently for your retirement as early as possible. I also believe that it is just as important that people take financial advice well in advance of their anticipated retirement. We have to carefully assess their investment portfolios, as this could make all the difference in the long run.

Singaporeans are intending to retire later, and those planning to stop working between the ages of 60 and 65 will double in the future. With increased longevity comes increased risk of potentially outliving one's retirement assets.

Another point to note is the unexpected 'life events' that may happen. No one can predict what lies ahead in their retirement journey. While we can determine when we want to retire and exercise to keep in good health, there are no certainties in life. Planning for one's retirement years must include taking into consideration life events that have the potential to disrupt your retirement years.

Hence, certain protection products - like medical, hospitalisation and long-term care insurance - are still needed during one's retirement to protect against the potentially devastating effects of unexpected life events like death and chronic illness. We need to have a financial strategy that is flexible enough to adapt to a person's changing needs and circumstances. Retirement can truly be great, but only if you carefully manage your money throughout your golden years.

Note: The strategy described in this article may not be suitable for all readers. If you are in doubt, consult a financial adviser.




Biosensors: A real nice way of entering Dragon Year!


A new all time high closing @ $1.575 and also set a new all time high record @ $1.60



Are the bulls pulling it to the next higher box?

XIRR/CAGR: Investor's true performance indicator! (3)

Read? XIRR/CAGR: Investor's true performance indicator! (2)

Read? My money works harder for me (4)

Why am I investing my hard earned money?

I don't invest as hobby. For hobby, I go fishing.

I come to stock market to make my money works harder for me so I will need to know how hard is my money working for me.

Can I afford to work less for money when my money is working harder for me?

How can I roughly know it?

This is where the past performance will provide some indication. Historical XIRR trending pattern across market cycles of Bulls and Bears will help to provide good insight.

Common question

Should we include investible cash in our portfolio XIRR?

What is investible cash?

Investible cash is the cash available for investing after selling stocks. Your excess Virgin cash sitting in your bank account should not be included as investible cash as it is still virgin since it has no "sex" with your favourites. But, once it has entered a stock; it is no longer virgin. LOL!

Portfolio Value = Capital + Realised P/L + Unrealised P/L
                        = Current stocks at market closing price + Investible cash available for investing in stocks.


I want to know how hard is my money working in the stock market i.e. to measure the productivity of my capital. XIRR over portfolio is the way to go and track it on daily basis and plot it as a line graph. Seeing is believing!

Wednesday, 18 January 2012

Olam

Compound Interest is not the same as Compound Returns (4)

Read? Compound Interest is not the same as Compound Returns (3)

I think the most misunderstood quotation from Einstein by many investors is this one:

"Compound interest is the eighth natural wonder of the world and the most powerful thing I have ever encountered." ~ Albert Einstein Quotes

Einstein was talking about compound interest and not on return on investment or compound return on investment.

Open your eyes big and big and read again.

Tuesday, 17 January 2012

Kep Corp

K-Green posts net profit of $16m for FY2011

By CARINE LEE


K-Green Trust on Tuesday posted net profit of $16 million, 7.3 per cent higher than projected for the full year ended December 31, 2011.

Turnover for the year was $90.56 million, which is 17.9 per cent higher than the projection of $76.8 million, due mainly to higher recognition of construction revenue. A year ago, it posted revenues of $65.8 million.

Distribution per unit was 7.82 cents, up from 4.31 cents a year ago.



How to know when I am wrong? (2)

Read? How to know when I am wrong?

Track, Measure and Visualise!

Traders will measure their trading performance closely; but how many retail investors will do it. Many retail investors are just tracking or recording their stock transaction; but thinking that they are measuring their investing performance and results. Tracking is not the same as measuring.

Graphs are very useful for us to visualise our performance and results. If we cannot clearly visualise our performance and results; then how can we know we are right or wrong on a particular investing method, decision or strategy.

Start charting your investing performance and results now!

Monday, 16 January 2012

How Singapore Ministers should be paid?

Just For Laugh ....

Why so diificult to determine their pay?

Simply, divide the range of Singapore citizens annual income into ten parts and the ministers are paid X% of each part. PM is paid full 10% of each part and rest of the ministers at X%.

Sunday, 15 January 2012

How to know when I am wrong?

Read? Buy and hold??? Take a good look and seriously think over it.

It is very important to track and measure our performance closely so that we can objectively know when we are wrong.

e.g. I will know that I am wrong if I don't make any money from the market for three consecutive months. I will stop and stay sideline. LOL!

S'pore economy already starting to see slowdown: PM Lee

SINGAPORE: Prime Minister Lee Hsien Loong said Singapore's economy is already starting to see a slowdown, particularly in the electronics sector.


But he sounded a note of confidence, saying that Singapore is prepared for the uncertainties ahead.

"The economy... probably will grow slower than last year. We're projecting 1 to 3 per cent growth. We have to take that in our stride, and accept that. But within Singapore, we should continue to build, we should continue to develop, we should continue to prepare ourselves and our next generation for the future," said Mr Lee.

Mr Lee said what the government can do is to improve the education and public transport systems, and build more homes so that young couples can start their families.

He made these points at a Lunar New Year event on Sunday morning in his constituency of Teck Ghee, which is part of Ang Mo Kio GRC.

He also officiated the re-opening of a wet market and food centre at Block 409, Ang Mo Kio Avenue 10, which had recently been renovated.

He said more of such markets will be built over the next few years, with the aim of keeping food prices affordable.

The prime minister also distributed red packets, each with S$150 in cash and supermarket vouchers to low-income residents.

It's a small gesture that brought a smile to housewife Haslinah Mahmood, who said she's concerned her Malaysian husband will be affected by the downturn.

"I'm more worried because he has a work permit. Who knows... if one day he can't carry on working with the work permit, what will happen to us?"

Madam Haslinah has two young children, and she plans to use the money for school fees and transport fares.

- CNA/cc

Do you still believe in financial experts or Gurus forecast and calls?

Read? Do you still believe in financial experts or Gurus forecast and calls?

The Gurus continue with another 6 stocks to make it 12 sparkling stocks in 2012.

7. Olam $2.44 (CW8888 also has)
8. OKP $0.55
9. OCBC: $8.16
10. GLP: $1.865
11. SoundGlobal: $0.56
12. LMIR: $0.37

So I have 2 out of 12 i.e. Kep Corp and Olam. Let us see at 31 Dec 2012, how many of them are sparkling or rotten?

Buy and hold??? Take a good look and seriously think over it.

Just for Thinking ....

Buy and hold???

The same old debate will start fresh once again whenever we have new investment bloggers on board.




Take a good look and seriously think over it.

The keys to long-term investing:
  1. Market timing.
  2. Pocket must be deep enough to buy enough of them on sales. ("It's not whether you're right or wrong that's important, but how much money you make when you're right and how much you lose when you're wrong." ~ George Soros)
  3. Right and Hold.



Saturday, 14 January 2012

How did Kep Corp survive the last crisis?

How did Kep Corp survive the last crisis?

Can it survive the next crisis in 2012/13?

Looking at its past net order book especially in 2006, 2007and 2008 and that may have lead to its rising EPS.



















For the next few years, how will its EPS like?


Will the growing infrastructure division be enough to mitigate the lack of order in 2009 and 2010?


























Do you still believe in financial experts or Gurus forecast and calls?

Read? Do you still believe in financial experts or Gurus forecast and calls?

This time from the Gurus from Share Investment for 6 stocks in 2012

At 13 Jan 12 market closing price:

  1. Kep Corp: $10.27 (This one is Createwealth8888's all time favourite stock)
  2. M1: $2.55
  3. ComfortDelgro: $1.445
  4. Q&M: $0.84
  5. Ezion: $0.71
  6. Super: $1.39
Let see them at 31 Dec 2012

Kep Corp


Good trading stock!

Thursday, 12 January 2012

Biosensors: Closing a new 52W high @ $1.565 near all time high @ $1.57


Amazing bull stock in not a bull market!

Sembcorp Signs Agreement To Explore Developing A 1,200 Megawatt Power Plant In Vietnam

Sembcorp Industries (Sembcorp) is pleased to announce that its wholly-owned subsidiary, Sembcorp Utilities, has signed a memorandum of understanding (MOU) with the People’s Committee of Quang Ngai Province (Quang Ngai PC) to explore the feasibility of developing a 1,200 megawatt coal-fired power plant in Dung Quat Economic Zone, located in central Vietnam’s Quang Ngai province.

The MOU was signed by Ng Meng Poh, Executive Vice President & Head of Singapore and ASEAN (Utilities) of Sembcorp, and Cao Khoa, Chairman of Quang Ngai PC. The signing took place in Quang Ngai province earlier today and was witnessed by Le Tuan Phong, Deputy Director General, General Directorate of Energy, Vietnam Ministry of Industry and Trade, Low Sin Leng, Executive Chairman of Sembcorp Industrial Parks & Deputy Chairman of Sembcorp Utilities, and Vo Van Thuong, Party Secretary of Quang Ngai province.

Commenting on Sembcorp’s latest development plan in Vietnam, Mr Ng said, “Dung Quat Economic Zone’s rapid industrial development has in recent years supported the tremendous economic growth of Quang Ngai province. It has been earmarked by the Vietnamese government to become a multi-sectorial economic zone and a base for oil refining and petrochemical industries. As such, Sembcorp certainly sees opportunities to invest and further establish our utilities presence in this fast growing region.

“With our combined expertise and proven track record, Sembcorp is well-positioned to offer integrated solutions for Dung Quat Economic Zone’s present and future power needs. We look forward to working closely with Quang Ngai PC on this project.”

This is the second agreement Sembcorp has signed with Quang Ngai PC in the recent six months. Earlier in September 2011, Sembcorp’s Industrial Parks business, through its joint venture in the Vietnam Singapore Industrial Park, also signed a MOU with Quang Ngai PC to conduct a comprehensive feasibility study of a 1,020-hectare integrated township and industrial park in Quang Ngai province. This comprised a 500-hectare industrial park located within Dung Quat Economic Zone and 520 hectares of land zoned for commercial and residential purposes near downtown Quang Ngai city.

“We are pleased that the Group is able to build on the strong relationship that our Industrial Parks business has established in Vietnam and with the Quang Ngai PC. We are confident that, with Sembcorp’s group strength and capabilities, we will be able to offer an integrated approach to support the development of Dung Quat Economic Zone,” said Ms Low.



Wednesday, 11 January 2012

Kep Corp: Sold $10.14

Round 94: ROC 2.3%, 154 days, B $9.85 S $10.14 (Bought back at higher price. Last sold @ $9.05)

Round 93: ROC 5.7%, 67 days, B $8.50 S $9.05

Round 92: ROC 10.6%, 166 days, B $7.98 S $8.89

Tuesday, 10 January 2012

Do you fully understand how your investment yield come from?

Just For Thinking ....

Do you fully understand how your investment yield come from?  Especially those investment that provides monthly yield. How can this be possible?

This is a true story.

My colleague, his siblings and relatives all also kena burnt due to kind recommendation from him after he has been receiving nice monthly passive income from his investment. Good investment opportunity must share in the family. Right?

Read? 'I was victim of mis-selling by own brother'

Same as those guaranteed rental income for X years from property investment. How can it be possible? Think about it. If you still don't understand; buy me coffee for the answer. No free answer hor!

CapitaLand in US$3.33b Chongqing project

By JASMINE NG


CapitaLand said on Tuesday it will embark on a mixed development project in Chongqing worth 21.1 billion yuan (US$3.33 billion).

The pact was sealed between CapitaLand, CapitaMalls Asia, Singbridge Holdings and the Chongqing government.

The development will comprise a shopping mall and eight towers for residential, office, serviced residence and hotel use. It has a total gross floor area of about 817,000 square metres.

CapitaLand and CapitaMalls Asia each owns a 25.0 per cent effective stake in the development, while SBH owns a 30.0 per cent effective stake. The remaining 20 per cent is held by unrelated parties.

CapitaLand said the project will be funded through a mix of debt and equity.





Kep Corp

Monday, 9 January 2012

Keppel AmFELS to Construct and Upgrade Deepwater Semisubmersible for Diamond Offshore for US$150 million

Keppel AmFELS LLC, a US wholly-owned subsidiary of Keppel Offshore & Marine Ltd (Keppel O&M), has secured a contract from Diamond Offshore to construct and upgrade a moored semisubmersible rig with delivery scheduled for 3Q 2013. The estimated shipyard contract price is approximately US$150 million.


The rig, to be named Ocean Onyx, will be constructed from an existing hull from a Diamond Offshore cold stacked unit, which previously operated as the Ocean Voyager.

Keppel AmFELS' scope of work on the Ocean Onyx includes the reconstruction of the rig, installation of advanced equipment such as a modern drilling package, and installation of sponsons to the pontoons to enhance the stability of the rig in deepwater. The rig will be designed to operate in water depths of up to 6,000 feet and will have a variable deck load of 5,000 long tonnes, a five-ram blowout preventer, and quarters capacity for 140 personnel.

Mr Larry Dickerson, President and CEO of Diamond Offshore, said, "We have worked with Keppel for more than a decade, and our rigs have consistently been delivered on time and within budget, whether in the US or Singapore. With Keppel's track record as a leading offshore yard, we are confident that this project will also be a success."

Keppel O&M has previously built four similar semisubmersible rigs for Diamond Offshore: the Ocean Baroness, Ocean Rover, Ocean Endeavour and Ocean Monarch.

Mr Tan Geok Seng, President of Keppel AmFELS, said, "We are pleased to be able to embark on another major rig project for Diamond Offshore, who has worked with Keppel on more than 20 projects since 1996. Diamond's rigs are sent regularly to our yards around the world for maintenance, repair and upgrade, and Keppel AmFELS has proven to be their choice yard in the US Gulf of Mexico. Having built a long-term partnership with Diamond, we understand the company's needs and are confident of delivering another high quality rig to their satisfaction."

The above contract is not expected to have a material impact on the net tangible assets or earnings per share of Keppel Corporation Limited for the current financial year

Saving, Lending and Investing (4)

Read? Saving, Lending and Investing (3)

There is so much interest in CapitaMalls Asia's 10 Year Retail Bonds and even seasoned investors are heading to ATMs too.

How come?

The stock market is too volatile for comfort???

More retail rather be a lender than investor and choosing return of money over return on money. I rather be a small patient investor than an opportunistic small lender.










Sunday, 8 January 2012

Understanding the Concept of Demand and Supply

Passive Income - Rental vs Dividend Yield (3)

Understanding the Concept of Demand and Supply

I believe most of us know what is Demand and Supply in Economic theory; but allow me to take it a bit further into passive income.

How do we get paid for passive income?

Read? Saving, Lending and Investing (3)

For interest on saving, coupon on bonds, dividend on stocks, we are in the Demand side; but NOT in the Supply side of getting paid for our capital. We basically demand yield and that is all about it.

However; for rental on properties it is different, we are in the Supply side; but NOT actually in the Demand side of getting paid for our capital. When we supply, people are expecting us to provide some level of basic services to meet their demand (expectations). Some unexpected demand can sometime drive us nuts. Similar to some nasty internal and external customers and bosses at our workplace with their unexpected demand are driving us nuts too.

See the big difference between Supply and Demand of getting paid for passive income. I rather stay in the Demand side.













Stress test your portfolio!

Read? Portfolio Management - Portfolio Risk (3)

Track, measure, and visualise

Is the next bear market happening in 2012/2013?

If it happened, how bad will our portfolio get hit?

Will we still have enough cash to survive without liquidating our investment near market low till the next bull?

When the general forecast and sentiment for market condition in 2012 is bad, we must prepare and get ready for it. We must have enough resources to seize the opportunities and the window for that opportunity is only 2-4 months for sharp capital gains.


Stress test your portfolio. Visualise it!
 
My stress test result on my portfolio.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 

Passive Income - Rental vs Dividend Yield (3)

Someone said:

"I have been reading on your blogs that your plans on achieving financial freedom and passive income through stocks investments.

I would like to hear your views on why you would not consider passive property rental income as part of your passive income? I believe you have your bullets and so...just curious and would be glad to hear your thoughts."
 
Read? Passive Income - Rental vs Dividend Yield (2)
 
Why I prefer stock dividends as passive income?
 
Stock dividends as passive income is truly passive as it doesn't require lifting a finger to receive them; but it will require strong heart to ride the emotional roller coastal ride across market cycles of bulls and bears.


A portfolio of diversified stocks and good money management to scale in and out the amount of investing capital according to market condition it will help to mitigate portfolio risk and stabilise the heart.

Saturday, 7 January 2012

Investing Made Simple by Uncle8888 (30)

Read? Investing Made Simple by Uncle8888 (29)

Tell you the secret of finding multi-baggers

Read? MULTI-BAGGER STOCK PICKER

There few gurus or trainers out there in Singapore who can teach you to pick multi-baggers or do value investing for a few thousands bucks. You just need to place your trust and have good faith in them and hand over your money to learn it. It is the easiest way to find multi-baggers. Believe it or not. It is up to you.



How to find multi-baggers?

Are you strong in TA?

If you answer yes.

Uncle8888 is sorry to tell you that you may not have chance to hold multi-baggers in your portfolio and it doesn't matter which school of TA Kung Fu you come from. The reason is fairly simple. The market cycles of bulls and bears will definitely generate plenty of exit signals for you; and one of these exit signals will eventually trigger you to sell.

Understanding holding power

What is holding power???


Most retail investors are capable of holding on to their stocks when their stock prices are falling. Their holding power comes from their financial strength as they don't need to liquidate stocks for cash. But, when their stock prices are rising fast and when the sign of market reversal in sight. Will they have same the holding power as when their stock prices are falling? Where does the source of holding power come from?

Read? Shake Off That Seller's Mindset (2)

Can you shake off the seller's mindset?

If you can't.

Again Uncle8888 is sorry to tell you that you may have no chance to hold multi-baggers as your holding power is weak; even though you can be financially strong.

What will drive a stock price?

Future earning growth and dividend growth. If both are expected to rise together; the stock price is more likely to rise faster. No analysts can forecast company earning beyond three years. Two to three year is the norm.

So it is for you to visualise on your own and trust their own instinct. Your own instinct will come from the number of companies and sectors that you actually lay your hand on and bet with your money. The more the merrier.

Stock picking is part science, part art, part luck, part intuition, and always uncertain - "not precisely knowing."

Friday, 6 January 2012

Biosensors: A bull stock in a bear or dull market.

In every bull market, there will some bear stocks. In every bear market, there will be some bull stocks. This is how market works!

Biosensors is one such example of a bull stock in dull or bear market. Today, Biosensors closed at a new all time high @$1.545. The last closing of all time high @ $1.52.


A new all time high closing @ $1.545

10% dividend yield for 10 years? Fact or Fiction?

Greatsage said...


"I dun think such stocks exist in our SGX. 10% dividend yield for 10 years? Absolutely no, as least not in SGX."

Read? Dividend Yield

10% dividend yield for 10 years?

Fact or Fiction???

See? Keppel Corp's Dividend History

See? Semb Corp's Dividend History


CW8888's Kep Corp dividend yield since 2001



CW8888's Semb Corp dividend yield since 2002

















Read? Investing vs Trading (3) - Here the Hard Truth from me!

The Great Robinson Sales in the stock market is worth waiting for. When will it come?


Holding power???

Just For Thinking ...


What is holding power???

During falling stock price

When we don't need to sell even the stock price hits a newer low everyday, we have holding power.

Holding power = No need to liquidate stock for cash

During rising stock price

When the stock price keeps rising, where can we find our holding power???




Thursday, 5 January 2012

Wednesday, 4 January 2012

Tuesday, 3 January 2012

Keppel to expand suite of solutions for Offshore Wind Farm Installations

It will acquire a substantial stake in OWEC Tower, an industry leading designer of jacket foundation.

Singapore, 3 January 2012 - KV Ventus B.V., a wholly-owned subsidiary of Keppel Corporation Ltd. (Keppel) has today entered into a share purchase and subscription agreement and shareholders' agreement to acquire a 49.9% stake in offshore wind turbine foundation designer OWEC Tower (AS) for about NOK $61 million.

OWEC Tower, headquartered in Norway, is a leader in the design and engineering of offshore wind turbine foundations. The company has developed a proprietary jacket foundation design known as OWEC Quattropod®, which is currently the only proven jacket design in the market. The OWEC Quattropod® design separates and optimises the piling and jacket installation process, resulting in reduced installation costs and faster project delivery.

With the aim of getting a slice of the offshore wind foundation business, this investment will enable Keppel Offshore & Marine to tap on OWEC Tower’s expertise to further develop its business in the design and construction of offshore wind turbine foundations as well as installation and support vessels thereby providing value-added solutions to its customers.

Mr Michael Chia, Director of Group Strategy and Development at Keppel said, “We are seeing offshore wind energy rapidly gaining traction around the world and a large number of offshore wind farms are under construction and planning. This will result in a huge increase in demand for foundation structures. With OWEC Tower’s leading design in this segment, our partnership puts us in the ideal position to capture a share of this market.

“As offshore wind farms move into deeper waters with bigger capacity turbines, a large number of jacket foundations will be required. With our experience and expertise as a leading rig builder, we see good potential in supporting OWEC Tower to meet this demand in a cost-effective and reliable manner. Together with our proprietary designs for offshore wind turbine and foundation installers, we are confident of further enhancing our suite of solutions for the offshore wind industry.”

To-date, OWEC Tower is the only company with a track record of having its jacket foundation design installed for offshore wind farms. Projects include the Beatrice pilot test off the coast of Scotland, the German pilot project Alpha Ventus, Ormonde wind farm in the UK, and the Belgian Thornton Bank project.

Europe is currently the leader in offshore wind energy. According to the European Wind Energy Association (EWEA), at the end of 2010, Europe had 1,136 offshore wind turbines installed and connected to the grid on 45 wind farms in nine countries. In total, these have a power capacity of 2.9 GW and can produce 11.5TWh of electricity in a normal year.

Offshore wind will become increasingly important as European countries move towards renewable energy. EWEA has set a target of 40 GW installed by 2020 and 150 GW by 2030. The huge number of offshore wind farms under construction and planning will result in a corresponding demand for foundation structures.

Investments in offshore wind farms in Europe alone are projected at €209 billion from 2010- 20.

The above foregoing transaction is not expected to have any material impact on the net tangible assets and earnings per share of Keppel Corporation for the current financial year.

Sunday, 1 January 2012

Wishing you a very Happy New Year!

Gone Batam!

1-2 Jan 2012

I started the New Year with a Golden View!


I will be spending 1-2 hours in hot jacuzzi longbath having a view on 2012.



Who knows I may come back with better insights on how to huat in 2012!





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