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Two more evenings with AK and friends.

Friday, February 27, 2015

After a sell out first session, AK is conducting not one but two more sessions to meet you, the readers of ASSI. I hope that these two sessions would be enough to meet demand as grossly insufficient tickets in the first session left many readers disappointed.

My friend, Sean Seah, has kindly sponsored the event venue again and although his classroom is big enough to accommodate more than 80 seats, I have decided to limit the number of seats per session to 50 which is 10 more than the first session held in January last month.

The first "evening with AK and friends".

I feel that this is a good enough compromise to give more readers a chance to attend what is basically a chit chat session with AK and his more learned friends. Too many attendees and the level of interaction I would like to have with readers might be diluted.

Some people remarked that the way I sold tickets for the first session was somewhat primitive (my word). So, leveraging on Sean's experience in organising events, for a fee paid to an online ticketing service, we have a more elegant way to handle ticketing this time. It will definitely be more convenient for readers who don't have internet banking facility and there will be no more rushing to ATMs to secure tickets.

For these two sessions, Sean has also kindly agreed to make available a total of 30 copies of his book at a special price. This means 15 copies per session.

Sean's book, Gone Fishing With Buffett, usually retails at slightly more than $24 a copy in the bookshops. I highly recommend this well written book if you are interested in value investing or if you want to make a gift to a friend or family member who is interested in value investing.

OK, here are the details and the links to the ticketing service for both dates:

Anything with regards to personal finance and investment (but don't expect us to have all the answers).

Ticket prices:
$28.00 per ticket (including book).
$16.00 per ticket (excluding book).

10, Anson Road,  
International Plaza, #36-05A.
Singapore 079903.

Dates and ticketing links:
For 23rd March (Mon), click here.
For 30th March (Mon), click here.

7pm to (latest) 10pm.

Important note:
Please have your dinner before attending the event.

Official media partner: 
TheFinance. (Derek! Don't AWOL hor!)

OK, looking forward to chit chatting with you face to face (which is technically quite impossible since I will be in disguise but I think you know what I mean.)

Related posts:
1. An evening with AK and friends: Thank you.
2. An evening with AK and friends: Photos.

Hock Lian Seng: Testing 39.5c resistance.

Thursday, February 26, 2015

The last time I blogged about Hock Lian Seng was in December last year. Since then, the stock has seen its price rising almost relentlessly. Drawing some Fibo lines shows that share price is now probably testing the resistance at 39.5c. It is a golden ratio and probably quite a strong resistance.

I have readers asking me if they should sell their investment in Hock Lian Seng in the last month or so. I said it is really up to them.

I am not ready to sell because I invested in Hock Lian Seng for income and even at 36c a share, a 1.8c dividend per share (DPS) would still mean a 5% dividend yield and that is based on a 40% pay out ratio. Still a pretty good income generator. So, even at 36c, it wasn't a price I would sell at.

Just now, I was alerted by a reader that Hock Lian Seng is declaring a 4c DPS and although I thought a bumper dividend possible before, it is still a pleasant surprise. This means a dividend yield of as much as 16.67% based on my lowest entry price in October 2011.

Over the years, Hock Lian Seng has been a very rewarding income investment for me and the higher DPS declared today is the icing on the cake.

What about the future?

Hock Lian Seng has been winning projects and their order book, including the Gali Batu Depot project from LTA in Jan 2015, is now worth about $457 million. Even without new order wins which I think is unlikely, they will be kept busy for many years. This is in line with my initial investment thesis that Hock Lian Seng is a natural beneficiary of our country's escalating investment in infrastructure projects till the year 2030.

Hock Lian Seng has another industrial development property project which will obtain TOP probably in the next month or so. This will mean recognising more net proceeds as the project is almost 90% sold. An interim dividend, perhaps? Well, we can always hope although given the conservative nature of Hock Lian Seng's management, I doubt that it would happen.

Now, let us look at the burr in Hock Lian Seng's side, the Skywoods. Although the Skywoods condominium is less than half sold, I have written a pretty detailed piece before on how Hock Lian Seng's business is much more than just Skywoods. This residential development project, a joint venture, is expected to obtain its TOP sometime in 2016.

Recent transactions for Skywoods.

I would have been quite contented to stay invested in an income generating business that Mr. Market wasn't paying much attention to as I would have liked to build a bigger long position at lower prices. With the attention that Hock Lian Seng is now getting, I feel that its stock is no longer undervalued but, taking everything into consideration, it isn't expensive either.

Related post:
Hock Lian Seng: Robust order book.

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