OUE Limited: A nibble.

On 25 September, I wondered in a blog post if I might be given a chance to pay 50c for what was worth a dollar. I am referring to OUE Limited's stock, of course.

Twin Peaks.

Although already trading at a hefty discount to NAV back then, I was concerned about how its luxury condominium project, Twin Peaks, could be a drag on performance. Also, looking at the charts then, selling pressure showed no sign of weakening. So, I decided to wait.

Today, I became a shareholder of OUE Limited as my overnight buy order at $2.01 a share was filled.

As the NAV/share is $4.04, I have paid 50c for what is worth a dollar. My wish came true.

It is a very small long position as sentiments are still very bearish and if the $2.00 psychological support should give way, we could see lower prices.

Could we see $1.96 or even $1.92? It could happen but it might not. If it should happen, I suspect that it could be a slow slide downwards. So, I am not going to be too hasty or "show hand" as some readers would say.

If the stock should be well supported and if the support at $2.00 should hold, then, I could add more to my long position if a reversal should take place.

Related post:
OUE Limited: An asset play that could be cheaper?

Financial security: What good is the idea to us?

Sometimes, I wonder why people making lots of money at work are still complaining about not having enough money. Then, if we ask a few questions, we understand why.

Often, the reason is because they scaled up their consumption as they made more money.

Keep our lifestyle simple even as we make more money over time. That is a sure way to having enough money now and in the future.

Want some ice cream? We don't have to go to Swensen's.

Over the years, quite a few readers have written to me to say that they took action after reading my blog posts. I am happy that they feel less stressed up and more secure about their finances now.

Recently, I wrote this in reply to a reader:

"I am happy to sense a tone of determination and also a clarity of mind in your message. You have a plan now and you sound confident of your financial future."

I would have liked to share his story but he would rather not have his story shared. It would have been quite helpful to some, I thought, to read a real life account of how scaling up our consumption even as we make more money would set us back financially.

I will end with a Chinese saying:
师父领进门，修行在个人.

If we do not act upon a good idea, what good is the idea to us?

Related posts:
1. Are you sometimes forced to be extravagant?
2. The evil instalment schemes and their minions.
3. An essential habit to becoming richer.

Free "e-books" on financial security for Singaporeans: here.