Kingsmen Creatives Ltd added to my portfolio.

With the share prices of many of my investments (including those I recently blogged about) having risen by quite a bit, I decided to nibble at Kingsmen Creatives Ltd, paying 59.5c a share, as its share price remained in the doldrums.

The weakness in Kingsmen's share price today reflects Mr. Market's pessimism. Despite being a leader in the industry, Kingsmen was not insulated from a marked slowing down in the high end retail industry which led to a much lower demand for their services.

Now, 60c seems like the immediate support for its share price. Will the support hold? Of course, I don't know.

However, here are a couple of things I do know which give me some comfort:

1. Company did share buy back in 2015 and 2016, paying 62c to 65c a share. Could they have thought that it was undervalued back then?

2. Dividend per share (DPS) of 3c which means a dividend yield of 5% for me. Although if earnings should weaken, things could change, a net cash position suggests that a DPS of 3c could be maintained.

Some readers might point out that with NAV per share at 54c, I am paying a premium of 11%. 

It might be surprising to hear me say this but it doesn't matter. It would be nice to buy lower than NAV but not a must. Why?

Kingsmen is a services company and not a REIT or property developer which are asset heavy. Apart from cash and its equivalents, Kingsmen's value largely lies in the intangible (i.e. services) they provide.

The softer economy will challenge Kingsmen to bring home the bacon. However, a good track record gives me some confidence that the business would do reasonably well and that, over time, I would have another good income generator in my portfolio.

Finally, I should say that although Mr. Market is pessimistic, I am not being optimistic nor contrarian. I am staying pragmatic and, so, mine is a relatively small investment for now. 

UOB ONE Card cash rebate and the things we do.

I was chatting with a friend and ASSI guest blogger this evening about credit cards. He told me he had to spend $1,000 each month on a credit card recently in order to get a $100 rebate at the end of the quarter. 

OK, I think most of you would have guessed which credit card this is. Yes, it is the UOB ONE card.

Anyway, I have the same card but I make sure I spend only a bit more than $500 a month (together with 3 monthly GIRO payments) to get higher monthly interest income of about $100 on $50,000 deposited in my UOB ONE account. 

$1,200 a year and better than any fixed deposit can offer! 

Of course, I also get a $50 rebate for card spending at the end of each quarter.

Back to the story. 

This friend of mine is actually very frugal. I would say that he is more frugal than I am. 

To spend $500 a month on his credit card is already quite a challenge. Why did he try to spend $1,000 each month not so long ago?

Apparently, there was a month that he spent more than $1,000 on the card due to the purchase of a (once in a very blue moon) big ticket item. 

What he tried to do next was to spend $1,000 per month in the following two months in order to get $100 rebate at the end of the quarter instead of $50.

Pause.

Pause.

Pause.

OMG! 

For $50 more in rebate, my frugal friend forced himself to spend a lot more money! 

Being a frugal person, forcing himself to spend more money, I believe, gave him a lot of stress as he didn't know what to spend money on. 

I wouldn't have done it. I try to avoid stress in life.

Frankly, I don't think it was worth the angst. 

Also, that extra $50 rebate was probably insufficient to cover all the cost of all the stuff he bought which he didn't want or need in the first instance.

Even the smartest people do silly things once in a while. 

We are only human.

UOB ONE card,

Related post:
1. UOB ONE Account or OCBC 360?
2. Stupid AK learns about Y.O.L.O.