AK shares 5 reasons to buy a diesel car.

By now, many readers have found out that AK bought an "inexpensive expensive" car.  Why the peculiar phrase?

Well, the car might be from an "atas" brand but it is rather inexpensive to run and it is also less costly to the environment. Yup, the car runs on diesel.


I love my new car and if you are wondering what is so good about a car that runs on diesel, here are 5 reasons to consider one:

1. Diesel cars are less expensive to buy than their equivalent petrol versions with the CEVS. What is CEVS? Carbon Emission-Based Vehicle Scheme. Cars that produce less CO2 will enjoy subsidies and it could be a big $XX,XXX deal!

2. Amazing fuel economy! I could get as much as 20km per litre with relatively smooth traffic on the expressways. What about driving about town? If not caught in a traffic jam, I could get as much as 15km per litre.

3. Diesel is much cheaper to buy compared to petrol. When the time comes to refuel, remember that 95 Octane petrol costs about 80% more than diesel here in Singapore! After all the discounts at the pump, I pay about 82 cents a litre for diesel only. Yes, I know, only.

4. Diesel cars are cleaner these days. Hey, Euro 5 standard, ok? Don't refuel with cheaper diesel from across the Causeway. Those have higher sulphur content. They are still stuck at a lower standard. Later, your diesel car "poon orh yen" (i.e. spew black smoke) like those J.B. trucks, don't say diesel cars no good hor.

5. More torque! I really love this! You must experience this for yourself. My car flies and I thought my old car was good! I am still learning to be very gentle on the accelerator.

Although I have already granted ROFR (i.e. right of first refusal) for this car to a friend who bought my last car, I might just drive this one for the full 10 years. 

I am in love.

Related posts:
1. My new car's fuel consumption.
2. My passive income all gone...
In the comments section, a reader shared with me that diesel cars give off other types of pollutants. Cham. How like that?
http://www.theguardian.com/environment/2016/feb/05/the-truth-about-londons-air-pollution

NeraTel is an investment for income no more?

I have been a NeraTel shareholder for many years. In the middle of 2013, I significantly increased my investment in the company. At that time, I had this to say:

This is a net cash company and has a record of paying consistent and meaningful dividends. Its last payout was 4c a share with an EPS of 5c. At today's closing price of 61c, we are looking at a dividend yield of 6.56% which is very decent. With its recurring revenue streams, dividends are probably sustainable.

I started accumulating at 40.5c a share and the bulk of my investment are at 60c to 63c a share. Yielding about 5% annually, over the years, my investment in NeraTel paid me thousands of dollars in dividends. As an investment for income, it was pretty good.

Its share price went up and its share price went down. I did a few trades but I mostly held on tight to my investment for income. Movement in the share price didn't bother me.

Recently, I received many messages from readers, most of them asking me if they should sell their investment in NeraTel and some did as its share price rose from a low. I said I might consider partially divesting if its share price were to go higher, all else remaining equal.

Well, the share price did move higher and a good reason to reduce exposure to the stock surfaced:


Ingenico’s offer of S$88 million represents 35% of Nera’s market capitalization of S$251.5 million as at close of trading on 19 May 2016. Based on Nera’s FY2015 financials, its payment solutions business accounted for approximately 26% of the Company’s total revenue of S$181.5 million and approximately 21% of its total earnings of S$13.4 million. 

As an investor for income, I was most interested in NeraTel's payment solutions business for its more predictable income generating ability. The other two business segments with their more lumpy revenue are not as comforting.

While I understand that a large part of the gains from selling the payment solutions business would be distributed to shareholders, how much would it be on a per share basis? 

Although a back of the envelope calculation suggests that it could be as much as 17c or so a share, give or take a cent, it could be a case of killing the goose the lays the golden eggs.

Breakfast.

With this in mind, I decided to reduce my exposure to NeraTel significantly, booking a nice capital gain in the process. 

With more than decent capital gains and dividends received over the years, the rest of my much reduced investment in NeraTel is probably free of cost. 

It would be interesting to see how the management unlock or create value for shareholders in future.

See: http://infopub.sgx.com/FileOpen/20160520_NTL_Media%20Release_Disposal_PS.ashx?App=Announcement&FileID=405815

Added on 16 Jan 17:

Related post:
NeraTel: Aggressive selling as 3Q disappoints.
"As I invest primarily for income, I am mainly concerned whether NeraTel is still able to pay a meaningful dividend. I am also concerned if the balance sheet is still strong, naturally....NeraTel's balance sheet is still strong. Operating cash flow has also remained positive."