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"E-book" by AK

Second "e-book".

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ASSI's Guest bloggers

Hotung, Venture and Singpost.

Tuesday, March 25, 2014

Hi Ak,

I was looking for high dividend yield coys for investment. Three coys caught my attention. What is your view about hotung investment, a Taiwan based VC. I understand the coy is in a net cash position, and been giving consistent dividend about 7 to 8%. Why the price of the stock is undervalued and at a discount?

The other two are venture corp and sing post.

Venture corp - a well managed coy providing consistent high dividend yield. Recovering from poor performance, and has added a new product mix - 3D printing. Do expect the coy to continue giving consistent good dividend.

Sing post, reasonable dividend yield, giving quarterly dividend. A coy that may grow with e- commerce which has growth potential.

Will you consider adding these coys to your portfolio? If yes or no, why?

Thank you for your time. Enjoy reading your blog.. which is getting more and more popular.

Cheers
P




My reply:

Hi P,

I know nothing about Hotung and Venture. :(
However, thanks for pointing them out to me. I will look at them if I find the time and inclination to do so. In the meantime, if you would like to guest blog your analyses, you are welcome to do so. :)

As for Singpost, yes, I have looked at it. I want to make sure that its efforts in diversification will work out. I think it is still early days and, so far, its efforts has burnt a lot of cash. We are seeing revenue improvements but at the expense of margins. We will really need a bigger volume in a lower margin business. Will we see the volume? I think the jury is still out on this one.

Best wishes,
AK


If anyone has any thoughts on these three stocks, please share generously. Thank you.

13 comments:

Tien Song Chuan said...

Any comments on Olam?

seefei said...

e-commerce seems to be the buzz word nowadays. THe buzz is further fueled with AliBaba potential IPO which will be the biggest tech stock company IPO ever. However, tech business is a number game and volume is important.

Was looking at Singpost also. There price has run up on the "hype" of its e-commerce diversification but so far there hasnt seen any meaningful contribution as rightly pointed out by AK.

Another company that may has jumped into the e-commerce bandwagon is Sheng Shiong.

Well it is still early days and now harm to keep in view these two e-comm wannabes. We never know...

la papillion said...

Hi AK,

I've several extremely bad experiences with singpost services. If something important needs to be sent, I'll gladly pay more and use DHL/Fedex etc. Singpost is easily the cheapest and is the most unreliable of the postal package service provider here. Losing packages and not caring about it is actually quite a common thing for singpost. You can google about singpost bad reviews and see all the stories about it. Based on that alone, I'll be hesitant to put my money into it.

A good company can be a bad investment. But can a bad company be a good investment? Sure, if the price is really low. For this, I'll say much much lower than $1.20.

AK71 said...

Hi LP,

Thanks for weighing in on Singpost. :)

My sister recently had a bad experience with a parcel that was undelivered too. :(

A good company can be a bad investment and a bad company can be a good investment. This resonates with what Peter Lynch said before. All investments are good at the right price. ;)

Technically, $1.15 seems like a possibility. ;p

Jack said...

I had some bad experiences with Singpost too, so are most people living here. The fact that the next alternatives we can choose from are top notch massive freight companies show that there are no competition for Singpost on the same level.

Singpost jolly well knows their service is lousy and still continue doing it because they know they can.

paul ng said...

Thanks seefei, didn't know that sheng Siong is exploring e commerce.

Will keep a look out for the coy.

Mmm.. Accurate gauge of a coy, ground feedback, I don't use much of singpost, I am surprised by the various bad feedback. Thanks

Phyllis T said...

Hi AK

Ive purchased a few lots of venture at a high entry price. It continues to pay a handso,e dividends but the share price is still currently faraway from my purchase price.

Im interested in sabana reit. Do you think it is at a nice emtry point? Ive missed purchasing it at $1.

AK71 said...

Hi Phyllis,

If you believe that the price you paid for Venture back then was a fair price, then, you might want to buy more now as a lower price gives you better value for money, all else remaining equal. :)

As for Sabana REIT, I believe that $1 per unit is not expensive. It is probably a fair price. $1.01 or $1.02? That is a cent or two away from $1. Your call. :)

Phyllis T said...

Thanks, AK. We can never predict the future, can we? But we can do our due diligence by reading up more. Ur investment journey has been inspirational. Keep up ur good work!

AK71 said...

Hi Phyllis,

Definitely but it doesn't mean that we cannot try. I try all the time by gazing at my bowling ball. Hard work though. -.-"

Someone just asked me if it is a good time to get into Croesus Retail Trust now. 88c. Asked what price did I get in at. Well, my price was only 1c lower. So, does it make 88c safe as an entry price or not? I also don't know. ;p

sillyinvestor said...

HI AK and P,

Venture did piped my interest.

http://sillyinvestor.wordpress.com/2014/03/29/a-quick-look-at-venture/

If you or P is interested. Comments welcomed

AK71 said...

What I shared on FB:

There is going to be some EPS dilution in Singpost. Ali Baba is paying $1.42 per share. Put these together, it would make sense to sell at $1.60+ now. (Closed at $1.55 in the session before.)

"Alibaba Investment Limited, a wholly-owned subsidiary of Alibaba Group Holding Limited, have entered into an investment agreement under which Alibaba Investment Limited will invest S$312.5 million to purchase 30 million existing ordinary shares held in treasury by SingPost and 190.096 million new ordinary
shares and take a 10.35% stake in SingPost upon completion."


http://www.channelnewsasia.com/news/business/singapore/alibaba-invests-s-312-5m/1125338.html

AK71 said...

SINGAPORE Post said on Wednesday that its subsidiary, Famous Holdings Pte Ltd, has bought an 80 per cent stake in Rotterdam Harbour Holding BV (FPS Rotterdam) for S$12.6 million.

FPS, which provides personnel, facilities as well as information and communications technology services for companies in Rotterdam harbour, is now an indirect subsidiary of SingPost.

For the year ended Dec 31, 2014, FPS's net asset value stood at about S$4 million.

The postal group said an additional S$5.4 million may be paid if certain performance targets are achieved. The stake was bought from Etc Etcetera Beheer BV and Rubus Beheer BV.


Source:
http://www.businesstimes.com.sg//companies-markets/singpost-unit-buys-80-of-dutch-firm-for-s126m

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