Tuesday, 21 February 2017

WHY YOU SHOULD START INVESTING EARLY

As someone who's in my early twenties, most of my friends' opinion of investing is that it is something out of reach due to the complexity of financial markets as well as their perceived lack of capital. 

When I tell my friends that I've been investing since I was 18, most of them either think I'm crazy or say something along the lines of "you're going to be rich". I wish the latter was true, but unfortunately, due to some speculative bets that I made earlier in my investing journey, I'm still facing a substantial unrealised loss. Over the long term, I definitely aim to achieve a steady passive income through accumulating stable, dividend paying stocks.


Friday, 17 February 2017

COMPARING OUR LOCAL BANKS

This week, all three local banks reported their full year results for 2016. We have summarised the financial results of the banks below:



DBSOCBCUOB
NET INTEREST INCOME (S$M)730550524991
NET INTEREST MARGIN (%)1.81.671.71
NON INTEREST INCOME (S$M)418434373071
NON-PERFORMING LOAN RATIO (%)1.41.31.5
TOTAL ALLOWANCES (S$M)1434726594
NET PROFIT (S$M)423834733096
EARNINGS PER SHARE (S$)1.660.8221.85
DIVIDEND PER SHARE (S$)0.600.360.70
NET ASSET VALUE PER SHARE (S$)16.878.4918.82
  

Thursday, 16 February 2017

CHALLENGER: STAYING RELEVANT IN CHALLENGING ENVIRONMENT

TARGET PRICE: S$0.50 (HOLD)

UPSIDE: 4%





Challenger Technologies reported their FY 2016 results yesterday. Net profit fell 27% from S$18.2m in FY2015 to S$13.2m in FY 2016. Revenue remained stable, declining slightly from S$352.2m to S$339.4m. Dividend per share increased to 2.7 cents, up from 2.65 cents a year earlier.

Monday, 13 February 2017

SINGPOST'S IMPENDING WRITEDOWN

TARGET PRICE: S$1.05 (SELL)

DOWNSIDE: 25%⬇





SingPost released its third-quarter results last Friday, with net profit for 9M FY16/17 falling 31.3% from S$143m to S$98.6m. The fall in net profit come despite a 22.8% rise in revenue, from S$833m to S$1,024m. In light of the falling profits, SingPost has declared an interim dividend of 0.5 cents, down from 1.5 cents in 3Q FY15/16.

BUMPY ROAD AHEAD FOR COMFORTDELGRO

TARGET PRICE: S$2.17 (SELL

DOWNSIDE: 15%⬇



ComfortDelGro Corporation released their FY 2016 results last Friday, posting a 5% increase in net profit, with earnings per share rising to 14.72 cents, up from 14.1 cents in FY 2015. Dividend per share has increased from 9 cents to 10.3 cents. However, ComfortDelGro's management has cautioned that the operating environment ahead remains challenging. We have a sell call on the stock, given the increasing competition from private hire operators and the weak Pound.