Donate a book to the needy.

Some might remember that I was an Amazon affiliate. In fact, I mentioned it a few times before in my blogs as well. 

I decided to remove it. It is not as if people come to my blog to buy books, right? Also, it seemed like a lot of work to make a little bit of money which is not my blog's objective anyway.

Now, I am an affiliate of BetterWorldBooks which is a social enterprise. We have the option to buy pre-owned books which could otherwise end up in landfills or incinerators. 

We are helping BetterWorldBooks with programs to train teachers and build schools and libraries.

We are helping them to improve literacy amongst the underpriviledged.

I told a friend all these earlier when she giggled at the fact that for every book sold for $10.00 through ASSI, I get $0.50. So little, she said. 

Of course, some other companies might pay more commission but I like the idea that encouraging readers to buy from BetterWorldBooks is doing some good for other people who need a helping hand in life.

I was sent an email a few days ago to inform me that for every book that is purchased from BetterWorldBooks, a book will be donated to the underpriviledged. 

For every book we buy, pre-owned or new, some less fortunate child will be given a book. 

I really like this idea.

So, if you are thinking of shopping for books for yourself, family or friends, visit BetterWorldBooks to see if they have what you want and you will be doing good at the same time.

Related post:
Recommended books for FA and TA.

Sound Global: Full divestment.

Although its latest quarterly report does not inspire much confidence, fundamentally, this should be a sound business in the longer run.

China is bent on improving its infrastructure, including the improving of sanitation and increasing the availability of clean water supply. Sound Global is a logical beneficiary.

In the shorter term, however, it would be reasonable to expect margin squeeze and higher finance cost which would be a drag on performance. The rather sudden departure of its CFO is also a possible red flag.

Technically, momentum oscillators continue to trend downwards. The breaking of the rising 50d MA to the downside in yesterday's session was a bearish signal. Today, that signal was confirmed as a doji was formed below the 50d MA.

With momentum weakening and signs of distribution, we could see a lowering share price over time and the longer term 100d and 200d MAs tested for support. These are at 58c and 57c respectively.

There could be a better time to invest in Sound Global again some time in the future.

Related post:
Sound Global: Would I buy now?

Young Engineers Academy.

I was never much good at Physics. I didn't understand my teacher in school and I concluded that it just didn't interest me much. I was a F9 student. My teacher even told me I could drop the subject.

However, I was lucky enough to discover a TV series that made Physics interesting for me! I cannot remember the name of the program by now but there was this short elderly Caucasian man with frizzy grey hair who would teach Physics through demonstrations!

Although I found it impossible to understand what my Physics teacher was saying in class, I could understand that man on TV! Then, I also discovered something called "10 Year Series Model Answers". It was so easy to understand compared to that horrible tombe of a textbook by someone called Abbott which was used by my school.

My grades gradually improved and I managed a B3 for my "O" Levels. Did I improve because of my class teacher or because the prescribed textbook became intelligible? No. I improved because I found a teacher and a "textbook" I could understand.

If you have a child who is having trouble with Science, don't immediately think the child is uninterested or slow, it could be that a different approach is required.

A fellow blogger, LP, the blog master of Bully the Bear, whom I know to be a very intelligent and humble person is offering an innovative approach to teaching Science using LEGO bricks. Yes, LEGO bricks!

Young Engineers Academy is the first and only MOE registered school in Singapore that does such a thing. The program is imported from Israel, one of the world's top patent producers. MOE even bought the Excellence 2000 program from Israel for use in our gifted education programs.

Using LEGO to teach children Science offers a non-threatening and fun environment for them to explore and learn through play. This is the philosophy of edutainment! It gets children motivated and enthusiastic about learning!

 

The ideal outcome is for the children to have so much fun playing with the LEGO models that they do not even realise that they are learning!

If this excites you and if you would like to find out more, there is a preview lesson offered at $50. However, readers of ASSI get to attend for free.

Just contact Young Engineers Academy and tell them "AK blogged about this".

Website: www.youngengineers.edu.sg

Facebook: www.fb.com/youngengineers.sg

There is also a 2 day holiday workshop in March. Early birds get a 10% discount (ends 8th March). Tell them "AK blogged about this" and get 15% discount instead.

 

Have fun while learning. I like this!

Hock Lian Seng: Dividend of 1.8c per share.

Hock Lian Seng announced a dividend per share of 1.8c. With EPS for the full year 2012 at 4.9c, we are looking at a payout ratio of 36.7%.

Although dividend is lower compared to the preceding year's 2.0 c per share, the payout ratio has actually gone up. This is because EPS is down some 20%, year on year, compared to the previous year which saw EPS improving 15.1%.

The numbers are not fantastic, for sure.

I did not expect the company to go into industrial and residential property development but they have done so. They are probably somewhat late as after seven rounds of property cooling measures by the government, it could be harder to find buyers even for industrial properties. This could be a drag on its performance.

However, with the Singapore government planning to spend some really big money on the MRT network through 2030, it is unimaginable that Hock Lian Seng would not participate in nor benefit from the exercise. So, it is probably a good idea to stay invested for this reason.

Mr. Chua Leong Hai, the Chairman and CEO, said that they are excited about the prospects for the entire local construction industry with the government's plans to improve Singapore's infrastructure.

Being a Grade A1 contractor in the Building and Construction Authority of Singapore’s (BCA) civil engineering category, it is more than likely that Hock Lian Seng would be successful in capturing their fair share of new contracts.

With share price at 30c, PER is approximately 6x. By this measure, Hock Lian Seng's stock does not look expensive. However, the technical picture hints at ongoing distribution activity. Immediate support is at 29c.

For anyone thinking of buying in, bear in mind that the company's performance could be lacklustre in the near term. Therefore, we cannot rule out the possibility of being able to buy the stock cheaper in the next 12 months.

See press release: here.

Related post:
Hock Lian Seng: 2c dividend per share.

Yongnam: Declared 1.0c dividend per share.

EPS tumbled by more than 30% and yet Yongnam's share price stayed resilient today.

2.17c (2007)
2.79c (2008)
3.27c (2009)

4.38c (2010)
5.06c (2011)
3.45c (2012)

Buying in when I did at 24.5c a share in February 2012 a year ago, it was at a PER of 3.7x, using EPS of 5.06c from the year 2011. A PER of 3.7x is pretty cheap.

Paying 24.5c a share was also approximately at a P/BV ratio of 1.04x. Yongnam's assets are a strong reason why it has a durable competitive advantage. To amass the volume and type of productive assets like Yongnam's is not an easy feat. So, paying slightly more than book value is, I believe, more than reasonable.

Although in the longer term, Yongnam is likely to benefit from Singapore government's commitment to build a more extensive MRT network through 2030, its near term performance could be lacklustre. This might or might not be reflected in its share price.

At 28c a share, PER is now 8.12x. Although not expensive, it is not cheap either.

Anyone buying into Yongnam now is buying into a strong belief that much better days are ahead for the company. Indeed, with its strong track record over the years, there is no reason to believe otherwise.

Technically, however, it is obvious that 29.5c is the immediate resistance and the selling pressure could be quite strong if it should be tested again.

"Outlook for the construction industry both in Singapore and the region remains positive as governments step up on infrastructural spending for projects like roads, railways and airports.

"Yongnam’s strong competitive advantage in the Structural Steelworks and Specialist Civil Engineering infrastructural works is expected to support the Group’s active pursuit of approximately S$1.3 billion worth of new projects in Singapore, Hong Kong, Malaysia, India, Indonesia and the Middle East."

See slide presentation: here.

See news release: here.

Related post:
Yongnam: Broke resistance! 29.5c tested.

Cooling measures for cars!

Some readers might remember my blog post on getting a new car some two years ago. I might not have revealed then but I did not take a loan for that purchase. It was the first time that I bought a car without the help of a loan and this is the way I like it. So, my car is an asset, a depreciating asset but still an asset.

Some asked me why I did not take a loan since interest rates are so low and I could invest my money for higher returns? This is a dangerous way to think, in my opinion. The returns from my investments lack certainty but the required monthly repayments to the lender are dead certain.

Borrowing in order to finance personal consumption is not a good idea, is it? A car is for personal consumption, is it not? Well, sometimes, we really need a car for various reasons and what if we could not avoid borrowing to finance the purchase?

Prior to buying my current car, I would make sure to take a loan of no more than $20,000 to be repaid over 3 years. That worked out to a monthly repayment of some $600 per month which was comfortable for me. So, for example, if the price tag of a car was $80,000, I would make sure I had at least $60,000 which would be made up of the trade in value of my old car and cash.

I do know of people who would borrow 100% against the value of a car and some would take 10 years to repay the loan. I cannot imagine why anyone would want to do that.

So, to protect potential buyers lacking in financial prudence, I believe the government's new measures are in the right direction:

Singapore’s central bank said the tenures of motor vehicle loans will be capped at five years, with the maximum motor vehicle loan amount pegged to 50 or 60 per cent of the vehicle’s purchase price, depending on the Open Market Value.

Some banks here had offered financing of up to 100 per cent of the purchase price for new cars, with tenures lasting up to 10 years. (Source: TODAY online)

Think carefully. If we need to borrow heavily in order to buy a car, can we really afford it?

Earlier this morning, I read an article which reported that the lower and middle income groups may be priced out by the new measures. It is understandable that car dealers are upset as their business could be negatively affected.

Eddie Loo, managing director of CarTimes Automobile, said: "We have a mixture of customers —— those who come and buy (with) cash, but there are definitely people who want a hundred percent loan.

"So it’s almost like 50—50 kind of market that people come into. So to penalise those who need a car and have to fork out 50 per cent of the loan amount, I think, the timing is not very correct.

Do I sense some sympathy from Mr. Loo towards people who need a 100% car loan to buy a car? What do you think? Mr. Loo thinks that "the timing is not very correct". When is a correct time for encouraging financial prudence?

Why not hear what buyers have to say?

John Molina, a prospective car buyer, said: "I want to buy a car, but because of this, I mean it’s impossible for me, or it’s almost near—impossible."

Another prospective car buyer, Mark Lim, said: "For those people who are really very rich, to them there’s no effect —— today I want to buy a Ferrari, for example, I don’t even care about how much is the downpayment."

Mr. Molina wants to buy a car. Well, if he had the money to do so, he could satisfy the want. However, since he finds it "impossible" to do so with the new measures in place, he probably is and was a poor candidate for car ownership.

As for Mr. Lim, since it dawned upon him that he could buy a car without a care for how much is the downpayment if he was "really very rich", why not concentrate on getting rich first?

Read article:
Middle & lower—income groups may be priced out of car market: dealers

Related posts:
1. Bought a new car.
2. If we are not rich, don't act rich.
3. Good debt is always good?
4. Slaving to stay in a condominium.
5. The very first step to becoming richer.