tag:blogger.com,1999:blog-7944902213075756335.post7315583577666516165..comments2024-03-29T10:22:24.187+08:00Comments on A Singaporean Stocks Investor (ASSI): SingTel and Netlink NBN Trust.AK71http://www.blogger.com/profile/16832145412062954289noreply@blogger.comBlogger18125tag:blogger.com,1999:blog-7944902213075756335.post-81272150818896345102018-11-23T11:16:35.736+08:002018-11-23T11:16:35.736+08:00Hi Ah John,
Definitely, it is a concern.Hi Ah John,<br /><br />Definitely, it is a concern.AK71https://www.blogger.com/profile/16832145412062954289noreply@blogger.comtag:blogger.com,1999:blog-7944902213075756335.post-59266646258500221702018-11-17T22:56:41.698+08:002018-11-17T22:56:41.698+08:00hi AK, I studying Netlink trust.
The distributio...hi AK, I studying Netlink trust. <br /><br />The distribution policy by the trust: <br />"The Trust’s distribution policy is to distribute 100% of its cash available for distribution (“CAFD”), which includes<br />distributions received from its wholly-owned subsidiary NetLink Trust (“NLT”). NLT’s distribution policy is to<br />distribute at least 90% of its distributable income to the Trust AhJohnhttps://www.blogger.com/profile/07927395374670213105noreply@blogger.comtag:blogger.com,1999:blog-7944902213075756335.post-56271942344303235252017-12-31T23:00:15.846+08:002017-12-31T23:00:15.846+08:00Hi TNL,
We have to take all these numbers with a ...Hi TNL,<br /><br />We have to take all these numbers with a pinch of salt. ;)<br /><br />Maybe, someone who is finance trained could enlighten us. :)AK71https://www.blogger.com/profile/16832145412062954289noreply@blogger.comtag:blogger.com,1999:blog-7944902213075756335.post-65379417678167688082017-12-31T22:44:39.846+08:002017-12-31T22:44:39.846+08:00"Furthermore, Singtel is at a valuation disco..."Furthermore, Singtel is at a valuation discount. Its core telco and digital business is trading at just 5.6 times FY18F EV/EBITDA compared to its peers." <br /><br />Not sure how DBS gets the 5.6 EV/EBITA. Yahoo Finance shows EV/EBITA of 13.3.<br /><br />If the 5.6 EV/EBITA include the one-off earnings from NetLink IPO, then using it compare against StarHub and M1 seems incorrect. <br ThinkNotLefthttps://www.blogger.com/profile/12923865962137056109noreply@blogger.comtag:blogger.com,1999:blog-7944902213075756335.post-64607747561354715172017-12-26T13:41:09.420+08:002017-12-26T13:41:09.420+08:00According to DBS, Singtel is now in a position to ...According to DBS, Singtel is now in a position to invest $1 billion in growth companies without taking on too much debt. <br /><br />In the next five years, Singtel’s growth business (ICT and digital) is expected to make up 40 percent of its revenue, from the current 25 percent.<br /><br />Furthermore, Singtel is at a valuation discount. Its core telco and digital business is trading at just 5.6 AK71https://www.blogger.com/profile/16832145412062954289noreply@blogger.comtag:blogger.com,1999:blog-7944902213075756335.post-28074712938077396662017-11-07T16:14:26.198+08:002017-11-07T16:14:26.198+08:00Reader says...
I would like to consult u, in your ...Reader says...<br />I would like to consult u, in your opinion and own valuation, what is the fair price that Singtel's share ideally should be? <br />These couple of weeks, I've accumulated a 6 figure sum of Singtel's shares and hope to keep it for the very long term to "compensate" for the loss of dividend income from CRT privatisation. <br />Many thanks in advance for AK71https://www.blogger.com/profile/16832145412062954289noreply@blogger.comtag:blogger.com,1999:blog-7944902213075756335.post-16514134106045176062017-10-17T17:51:39.101+08:002017-10-17T17:51:39.101+08:00Reader says...
I went for your talk last year and ...Reader says...<br />I went for your talk last year and bougt Dbs.<br />My regret is I bought no enough.<br />After your talk this month, I bought Singtel.<br />I bought and maybe I should buy more.<br />What does your crystal ball say?<br /><br />AK says...<br />Crystal ball blur blur. -.-"<br />I don't know if the price is going higher or lower but I think SingTel offers a fairly good AK71https://www.blogger.com/profile/16832145412062954289noreply@blogger.comtag:blogger.com,1999:blog-7944902213075756335.post-41870022048767827222017-09-04T14:43:47.735+08:002017-09-04T14:43:47.735+08:00>$2 billion = >15 cents per share in proceed...>$2 billion = >15 cents per share in proceeds raised from the IPO of NetLink NBN Trust.AK71https://www.blogger.com/profile/16832145412062954289noreply@blogger.comtag:blogger.com,1999:blog-7944902213075756335.post-6179860623690380582017-08-21T13:23:00.852+08:002017-08-21T13:23:00.852+08:00Reader:
I look at Singtel's annual report. I c...Reader:<br />I look at Singtel's annual report. I can't derive the 20%. It is 40+ % to my calculation. How did u derive it? <br /><br />AK:<br />Well spotted. I meant to say its Singapore mobile business which is, of course, what would probably be impacted by the entry of a 4th Telco next year. That business segment accounts for 13% of SingTel's total revenue.AK71https://www.blogger.com/profile/16832145412062954289noreply@blogger.comtag:blogger.com,1999:blog-7944902213075756335.post-54257577520194145722017-08-16T19:07:55.773+08:002017-08-16T19:07:55.773+08:00Frankly, not all REITs are good investments.
We s...Frankly, not all REITs are good investments.<br /><br />We should wonder at the sustainability of distributions.<br /><br />A REIT could have high CAPEX down the road:<br /><br />http://singaporeanstocksinvestor.blogspot.sg/2015/08/is-keppel-dc-reit-attractive-investment.html<br /><br />A REIT could see their assets disappear in the not too distant future:<br /><br />http://AK71https://www.blogger.com/profile/16832145412062954289noreply@blogger.comtag:blogger.com,1999:blog-7944902213075756335.post-52422378479184905042017-08-16T19:00:04.377+08:002017-08-16T19:00:04.377+08:00Hi redponza,
Like I said, they are different anim...Hi redponza,<br /><br />Like I said, they are different animals. <br /><br />It depends on how we look at investments and how value is created. <br /><br />Most REITs pay out more than they earn. They do not retain any earnings.<br /><br />SingTel pay a percentage of their earnings and they retain some earnings so that they become more valuable over time.<br /><br />I like some REITs and my AK71https://www.blogger.com/profile/16832145412062954289noreply@blogger.comtag:blogger.com,1999:blog-7944902213075756335.post-25625957792409231892017-08-16T15:54:11.307+08:002017-08-16T15:54:11.307+08:00Is telco attractive?
From my point of view, retu...Is telco attractive? <br /><br />From my point of view, return = dividend yield + dividend growth, taking debt into consideration.<br />There is lower growth and lower yield in telco, thus I am puzzled why telco is even considered in the first place.<br /><br />And from a price to book standpoint, they can never beats a REIT =.=<br /><br />But on the other hand, I saw famous investors grabbing redponzahttps://www.blogger.com/profile/12482736417233080153noreply@blogger.comtag:blogger.com,1999:blog-7944902213075756335.post-33295318658138153592017-08-16T14:24:05.232+08:002017-08-16T14:24:05.232+08:00One more thing, we really shouldn't be compari...One more thing, we really shouldn't be comparing Telcos with REITs. The yields are not comparable.<br /><br />SingTel pays out a percentage of its earnings as dividends while REITs pay out from their operational cash flow.<br /><br />If we were to use the same yardstick for both, we would worry about REITs since their DPU is usually higher than their EPS.AK71https://www.blogger.com/profile/16832145412062954289noreply@blogger.comtag:blogger.com,1999:blog-7944902213075756335.post-6927316218695597622017-08-16T14:19:51.139+08:002017-08-16T14:19:51.139+08:00Hi redponza,
SingTel derives less than 20% of its...Hi redponza,<br /><br />SingTel derives less than 20% of its revenue from Singapore. It is truly an MNC.<br /><br />As for CAPEX, selling away most of its stake in Netlink NBN passed a heavy baby to other investors. SingTel retains only a 25% stake in the newly listed entity.<br /><br />If you are worried about the 4th Telco and increased competition in Singapore, you should be more worried aboutAK71https://www.blogger.com/profile/16832145412062954289noreply@blogger.comtag:blogger.com,1999:blog-7944902213075756335.post-48784091231703264492017-08-16T13:44:12.757+08:002017-08-16T13:44:12.757+08:00Hi AK,
There is a 4th telco getting into Singapore...Hi AK,<br />There is a 4th telco getting into Singapore, don't you worry about the intensified competition?<br /><br />Also, unlike REIT where there is minimum capital expenditure, telco needs to upgrade their network consistently to maintain competitiveness. With the lower yield, and meh growth potential, not sure why it is better than REIT. <br /><br />In the telco space, isn't Starhub redponzahttps://www.blogger.com/profile/12482736417233080153noreply@blogger.comtag:blogger.com,1999:blog-7944902213075756335.post-92166257341814938072017-08-15T11:37:32.565+08:002017-08-15T11:37:32.565+08:00Hi Spur,
I was in university too and I also had ...Hi Spur, <br /><br />I was in university too and I also had to top up my CPF account. Haha.<br /><br />Good kopi money for the win. ;)AK71https://www.blogger.com/profile/16832145412062954289noreply@blogger.comtag:blogger.com,1999:blog-7944902213075756335.post-5346745560726325622017-08-15T11:22:19.414+08:002017-08-15T11:22:19.414+08:00Yeah, still have those original STA and ST2 shares...Yeah, still have those original STA and ST2 shares in my CPF account. Had to top-up my CPF with cash in 1993 as I was in final year Uni, and my CPF from all those part-time jobs too pathetic to max out the allocation for STA shares. Haha!<br /><br />Many years ago, my CDP account suddenly appeared with couple hundred ST shares. Unbeknownst to me, my late grandma had apparently nominated me for Spurhttps://www.blogger.com/profile/11824813457786462446noreply@blogger.comtag:blogger.com,1999:blog-7944902213075756335.post-12185135283477293622017-08-15T10:16:50.459+08:002017-08-15T10:16:50.459+08:00On my FB wall:
Kelvin Tan:
I remembered starting...On my FB wall:<br /><br />Kelvin Tan: <br />I remembered starting a CPF account with cash then, just to participate in the Singtel IPO in 1993.AK71https://www.blogger.com/profile/16832145412062954289noreply@blogger.com