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.

Financial freedom through building Dividend Machines!

Many people ask how can they retire from work earlier and be financially comfortable like me? Of course, I tell them investing for income has a big part to play.

Often, the next question is whether I could teach them how to invest for income? No, that sounds like work and I am lazy. Bad AK! Bad AK!

Well, we have Dividend Machines.

I know many are waiting for the next intake and it has been almost a year. Good news! The wait is over! See:

Dividend Machines

Learn how to analyse REITs.
First peek into AK's head.

Investing for income consistently and correctly could help us to achieve financial freedom. 

This is when income received from our investments is enough to replace our earned income or at least meet our expenses in life. 

Then, we have the option to work if we want to and not because we have to. 

Learn how to analyse REITs.
Second peek into AK's head.

I like Dividend Machines because it really helps investors for income shorten their learning curve and it is also great value for money.

You will be surprised by how affordably priced it is. Find out for yourself:

Dividend Machines

Don't wait too long to sign up because once this intake is full, it will be another long wait before the next intake.

Don't say you should have started investing for income earlier. 

The best time to start is always now!

Dividend Machines

If you enjoy listening to AK talking to himself, you will definitely enjoy Dividend Machines. 

If AK can do it, so can you.

Related post:
Dividend Machines for a secure retirement.

"REMOVE SABANA REIT MANAGER" FB PAGE.

This blog is in reply to Jerry Low's comment:

Source: HERE.

Hi Jerry,

Saizen REIT was not a shitty counter. It was just misunderstood and it was thanks to the misunderstanding that I was able to accumulate a sizable position relatively cheaply so many years ago.

In fact, I thought Saizen REIT had a very competent manager who ate their own pudding. 

Of course, the REIT was a fantastic investment, as it turned out, for me and many other investors. I shan't say more since regular readers should be quite familiar with the narrative.

As for Sabana REIT, I did blog about it quite regularly for a few years as it was a big part of my S-REITs portfolio for the same number of years. 

Although I agree that the REIT has a mediocre manager who strikes me as mostly self serving, to be fair, it was a rewarding investment for me. Having said this, I am aware that that there are fellow Sabana REIT investors who are less fortunate. 

As always, I am quite happy to help people to help themselves. If my blog has helped to educate retail investors to some degree, I am glad. 

In the end, however, I must let readers make their own decisions and I won't push them in any direction. I am not allowed to and I don't want to.

Although I am sympathetic to those who have lost money investing in Sabana REIT, I believe that they must take responsibility for their own action or inaction as investors. 

If they happen to form the majority of Sabana REIT's investors and if they choose to be apathetic for whatever reason, then, they have to accept whatever the consequences might be.

By replying to your comment in the form of a blog, I am helping to spread the word about the activism that is taking place now. 

However, please understand that I do this because I believe that more people must be made aware of how investing in REITs for income is not as easy as they might think and they must know that REITs are not risk free investments. 

I am not doing this to be a part of the activist movement against the manager of Sabana REIT.

With best wishes,
AK

If you are a Sabana REIT unitholder and if you are interested, here is the link to the FB page:
https://www.facebook.com/groups/1586399528054150/?qsefr=1

By the way, as requested by some readers, tomorrow, I will be sharing a check list for investing in REITs.

It will be part of an advertorial which was planned weeks before. If this is of interest to you, please visit my blog again tomorrow. 

Investing in REITs for income is simple enough to understand but it might not be as easy to do it well.