Tea with AK71: My briefcase.

When I first started work as an adult, I spent almost $200 buying a leather briefcase. I saw it in a mail order pamphlet, thought it looked nice and the price rather reasonable. It lasted some two years before giving way. So, did I buy a new briefcase? No.


One of my vendors gave me a briefcase made of fabric. It was much lighter than the leather briefcase I had and it was free! I was very pleased with that briefcase and used it with pride until it too gave way a few years later.


My third briefcase was also made of fabric. Again, it was free! Wow! That was a free bag from a periodical I subscribed to. I believe it was Asiaweek. I don't see this periodical anymore. Could be defunct now.

Since the demise of the leather briefcase I first bought as a working adult, I have never bought another briefcase. Every single one was free since.


Over the years, I would collect free briefcases. Collect? Yes, they were free from merchants, banks or malls when certain conditions were met. In recent years, I also received two briefcases as presents from friends, a leather one and a fabric one.

My current briefcase is my favourite, a very lightweight fabric bag that has lasted me four years but it has finally given way. It has torn but I want to continue using it for a while more.

Free bag from United Colors of Benetton.

After years of faithful service, it is fraying.

This was a free bag from United Colors of Benetton. Yes, it is branded!


The bag was given free to my sister for purchasing a certain minimum amount from them. She didn't want it. So, I took it!


This was probably 8 years or so ago. I can't be sure but it was a long time ago. I think the shop was in Centrepoint.


Well, nothing lasts forever really, not even a diamond, scientifically speaking. I would have to retire this bag one day and choose a replacement from my ready stock of free briefcases at home. ;p

Related post:
Money management: Needs and wants.

A movie: The Iron Lady.

I just watched "The Iron Lady" in which Meryl Streep plays Baroness Margaret Thatcher, the powerful former leader of Great Britain. Meryl Streep's performance was entrancing and she got the accent down pat!

It was a sad movie in the end but it was a sadness with an air of dignity.

Many things that Baroness Margaret Thatcher stood for in the movie resonated with me and I feel that Singaporeans or anyone, for that matter, would benefit from her wisdom.

This left the deepest impression on me:

“What I do think is a man should be encouraged to stand on his own two feet. Yes, we help people. Of course we help people, but for those who can do, they must just get up and do. And if something’s wrong, they shouldn’t just whine about it. They should get in there and do something about it. Change things.”

I have, whenever and wherever appropriate, made comments to the same effect.

When people tell me that they are just average people and that they cannot achieve financial freedom, I tell them to stop being average. Be more than average. Often, we are our worst enemies.




Related posts:
1. Do you want to be richer?
2. Envious? Find our own way.

Losing your hair?

Some of us might be suffering from pre-mature hair fall. I know many friends who are pulling out their hair because of this problem. Er... ok, bad joke.

Anyway, if you suffer from pre-mature hair fall, why not give natural remedies a try?

TK TrichoKare is a holistic hair and scalp care centre that provides European Herbal remedies (consisting natural botanicals such as Jojoba, Rosemary, Nettles, Burdock, Aloe Vera and Lavender) for all hair conditions.

Fill out your details and enjoy a special introductory price at TK TrichoKare: here.

Yongnam: FY 2011 results.

Went through Yongnam's FY2011 results as I munched on my lunch of wholemeal bread with margarine. I am very impressed with the results. For a company in a sector which is expected to suffer from the vicissitudes of cyclical effects with weak margins, it has done really well.

Year on year, revenue dipped 0.7% while gross profits improved 8.2%. Gross profit margin improved from 28.6% to 31.1%! This shows an increase in productivity. I always like using less resources to do more.

EPS improved 15.5% year on year from 4.38c to 5.06c. NAV improved from 18.92c to 23.25c. This is an increase of 22.9% as gearing reduced 38.8% from 0.49x to 0.30x. Earnings and assets are up while borrowings are down. Very nice.

To make the picture nicer, a dividend of 1c per share has been declared. This represents a pay out ratio of about 19.8%. At a share price of 25.5c, it translates to a dividend yield of 3.92%. 

The dividend paid out in the preceding year was 0.65c per share. Dividend per share has grown 53.8% year on year, therefore.

In FY2011, Yongnam saw greater contribution by its Specialist Civil Engineering business which commands a higher gross margin over its Structural Steelworks business. This allowed its gross profits to grow while revenue flatlined.

In FY2012, this trend is likely to continue. As of end December 2011, Specialist Civil Engineering already had a 61% share of its order book value of S$462m.

Not only does Yongnam have an enviable number of projects on hand, the high barrier to entry in the niche it has carved out for itself means that competition now and in the future is quite limited, allowing it to command better margins.

The increased spending by regional governments on infrastructure projects and Yongnam's strong ties with reputable international contractors will probably see Yongnam winning more contracts as the year progresses. This bodes well for the company, especially with expectations of a slow down in private sector demand.

See presentation slides: here.

See press release: here.

Related post:
Yongnam: Smart money is accumulating.