Wednesday, 19 April 2017

IS KINGSMEN CREATIVES A VALUE TRAP?


Kingsmen Creatives is a company that recently caught my eye. The company has four business segments - exhibitions and thematic, retail and corporate interiors, research and design and alternative marketing. It organises events including the Formula 1 Singapore Grand Prix and the Singapore Airshow, and designs interiors for Uniqlo, DBS Bank and Coach. 

As a value investor, I constantly look for shares that are trading close to their 52-week lows. Kingsmen Creatives is currently trading at 60 cents, just off its 52-week low of 58.5 cents. When share prices of companies decline, it could either be an opportunity to purchase undervalued shares, or it could be a value trap. Understanding the fundamentals of the company would allow us to make an informed investment decision. 

Monday, 27 March 2017

WILL SATS SOAR WITH NEW TERMINAL AT CHANGI?



Shares of SATS Ltd have performed strongly during the past few years. Investors who bought shares of SATS five years ago and held them till today would have more than doubled their investment, when dividends are included. Recently, SATS has fallen by more than 10% from its all time high of $5.39 back in January. This correction seems to be a good opportunity to invest in a business with good growth potential.

Thursday, 23 March 2017

SHOULD WE INVEST IN REIT ETFs?

Last October, the Phillip SGX APAC Dividend Leaders REIT ETF was listed on the SGX, the first REIT ETF to be available here. It aims to track the performance of the 30 highest total dividend-paying REITs in the Asia Pacific Region. At the end of this month, another REIT ETF, the Nikko AM Asia ex-Japan REIT ETF would be listed, giving investors an additional investment option. With their high and consistent dividend payouts, REITs generally appeal to investors seeking regular passive income.

Some investors may be deciding between investing in individual REITs or the REIT ETF. We believe that REIT ETFs are more suitable for investors seeking diversification, with smaller capital available and with limited time to research thoroughly on individual REITs. On the other hand, investors with more capital may want to select a few individual REITs, given their higher dividend yields compared to the REIT ETFs.