AK feels like Bilbo Baggins.

The good thing about being an anonymous blogger is that I feel more comfortable to share more openly many things about myself, including what is my annual passive income from investments, for example. Anonymity gives me some protection and that gives me courage.

Over the years, I have been invited to speak at various public events or to be interviewed. Predictably, I have declined all such invitations with only one exception.

Bilbo Baggins. Source: Wikipedia.

Recently, I met a group of big hearted people who feel that many people will benefit from me sharing in person my little ideas about financial well-being and investing. Of course, my immediate response was to decline the offer. No surprises there.

However, I was so won over by what they are setting themselves up to do that I offered to them my blog which represents more than 4 years of dedication. To me, if my blog is able help fulfil the noble vision which they have, it would give me great satisfaction. Well, of course, I would still be blogging. I still enjoy it enough not to give it up yet.

They are very decent people and they think that it is not right for them to take my blog. They reasoned that it is not right to take it without fair compensation. They do not like the idea they will benefit from the arrangement but not me. This is the kind of people they are. Despite telling them that it doesn't matter to me, they refused.

Instead, they asked me to seriously consider doing greater good by inspiring people in person. I understand the argument that many people do not read blogs. I understand that many prefer people to people contact. However, there are already so many speakers and trainers who are doing a good job of inspiring people. Why me?

I am just a regular guy who works as a manager in a family controlled SME. I make a mid 4 figure salary and have 14 days of annual leave a year. I make use of common sense and try to be prudent with money. I also try to make my money work for me by investing for a second stream of income. There are many people who are like me in Singapore, I reckon.

Fear of the loss of privacy is the biggest thing that is holding me back from making a public appearance. It would also be terrible if, by making a public appearance, I cause my family to be subjected to scrutiny as well.

I told one of these friends that I feel like Bilbo Baggins and that, to me, he is Gandalf who has come knocking on my door. Should I pack up my stuff and go with him?

I am a worrier by nature and, already, I can imagine how things could go wrong in more ways than one. I wonder is this going to be worth it?

Related post:
Common but admirable people.

Hock Lian Seng: DPS of 1.8c.

Hock Lian Seng's strong balance sheet, cash flow as well as high gross profit margin attracted me. Even if it is not a good investment for growth, I believe that it is a good investment for income with its record of paying out meaningful dividends.

Hock Lian Seng reported a gross profit margin of 40% on the back of lower revenue but higher gross profit. NAV per share improved from 24.9c to 27.8c. EPS reduced slightly from 4.9c to 4.7c, year on year.

A DPS of 1.8c has been declared. This means a payout ratio of 38.3% and a dividend yield of 6.67% based on the price of 27c a share.

Realistically, Hock Lian Seng will face headwinds in future and the management has said that:

The Group will continue to participate selectively in the some of the upcoming infrastructure projects tenders called by the Singapore Government. However, the Group is expected to face stiff competition from large foreign contractors, higher construction costs and a shortage of foreign workers.

So, although there is reason to believe that Hock Lian Seng will do reasonably well based on past track record, the landscape has definitely become more challenging.

Its exposure to property development could also be ill timed:

On the property development front, the Singapore Government has implemented property cooling measures to both the residential and industrial property market. The Group believes that the measures would create a stable and sustainable property market in Singapore.

The construction of the two industrial property developments are expected to be completed by early 2015. The joint venture residential project at Dairy Farm Road was launched in September 2013.

Having said this, now, with a PE ratio of 5.75x and trading at a slight discount to NAV, the stock does not seem expensive.

See: Full year results.

Related posts:
1. Hock Lian Seng: Buying on weakness.
2. Hock Lian Seng: Dividend 1.8c per share.