Bonvests - Liat Tower & Sherton Tower
NAV = $2.06
Share Price = $1.34
Dividend = 1.6 cents
Dividend yield = 1.2%
Potential RNAV of $3.40. Lots of patience may be required, and there is a risk of value trap as the management are very conservative.
Hotel Grand Central
NAV = $1.39
Share Price = $1.54
Dividend = 5 + 5 = 10 cents
Dividend yield = 6.5%
HPL - Prime Properties: Hilton Hotel, Four Seasons Hotel both FH & ForumShopping Mall.
NAV = $3.28
Share Price = $4.13
Dividend = 4 + 6 = 10 cents
Dividend yield = 2.4%
Potential RNAV of $8.00
Offer last year @ $4.00
OUE - Prime Properties: OUE Bayfront, Mandarin Ochard Singapore, Mandarin Gallery, Mandarin Marina Singapore, Crowne Plaza, One Raffles Place, OUE Downtown & oversea properties; US Bank Tower in LA & Lippo Plaza in Shanghai.
NAV = $4.35
Share Price = $2.17
Dividend = 15.9 cents (13.9 cents distribution in specie)
Dividend yield = 7.3%
OUE is focus on asset enhncement by transforming:
- OUE Downtown into a mixed-use development that includes serviced suites and a new mall, Downtown Gallery.
- Iconic US Bank Tower by addition of an open-air observation deck and two restaurants. The first observation deck of its kind in southern California. OUE Skyspace LA offer vistors unobstructed 360-degree views of LA stretching from the Hollywood Hills to the Pacific Ocean.
- Recycle the capital of OUE portfolio of assets by divested Crowne Plaza Changi Airport and its future extension to OUE H-REIT.
History has shown that real estate assets still remain a relatively stable investment in Singapore. These stocks which I have highlighted reap its profit mostly from recurring income. Its only a matter of times these companies will reap handsome bonus from its prime properties. Holding onto these stocks may also help to mitigate headwinds from the inpending interest rate increase in the near future.
Successful investors have the ability to pick winning shares and allow winners to run it's course rather than snatch profits too early. One way is manage risks of the stocks in our porfolios. (Guide by "Risk Management Check Lists".) By following these steps we can avoid trouble companies. As long as the stocks are on the right growth path, as one should not be worry so much on short term share price.
Bad investors often sold off winners far too early and holding onto loosers far too long. As a result they end up with small profits and huge losses.
Avoid trouble stocks: Many trouble stocks had end up as pennies stocks.
Low price stocks: Does not mean its cheap! Far too many had been burnt by trading in pennies!
Successful investors are those who able to run the winners and cut off losers. Look out for potential growth companies at a good price but avoid highly leverage stocks. The main problem at this point of time is difficult to find winning stocks at a good price. Buying opportunity will present itself if we have patience.
By Morgan Housel-- a columnist at the Motley Fool.
We listen to the story we want to hear.
This is the golden age of financial information.
A child in Africa with a smartphone has access to more financial information than many professional investors did 20 years ago. Twitter, blogs and 24/7 news offer a constant stream of investing opinions in every flavor imaginable.
It’s a wonderful thing. But “confirmation bias”—starting with an answer and seeking evidence to back it up—has never known more fertile ground. No matter what you believe, you can find investors who believe the same thing.
This allows people to start with a preferred investing narrative—maybe you think stocks are overvalued, or undervalued, or hyperinflation is right around the corner—and become more confident in that view after discovering confirmation from fellow investors.
So bulls listen to fellow bulls, bears listen to fellow bears. It is a terrible way to learn something new, and often keeps you miles away from the truth.
As a rule of thumb, the more you believe in an investment idea, the more important it is to understand the opposing side’s view.
Income investor is one of the best investment strategy. By receiving perpetual dividend regularly I'm not concern which direction the share price is heading. It is more important for the company able to grow its business and increase or at least maintain its revenue and profit and paid regularly perpetual dividend.
If the share price comes down to attractive level, I can buy more share cheaply. On the other hand when the share increase too high or over value I can sell some share for capital gain. Buying at lower share price will result in increasing yield. Selling when share price is over value will result in capital gain.
The key to growing your portfolio is to stay invested. It has to be continuous and sustainable. The cash flows of a stock should be regular and sustainable. The stock should generate enough income for me to live on or grow my portfolio regardless of whether the economy is up or down.
Blue chips do pay out regular dividend. At this point of time most blue chips are already over-price. Best time to buy into blue chip is when there is market correction or crashes when blue chip are corrected to fair value. Blue chip are usually the first to increase in share price during the early bull market.
Buying penny stock is like throwing darts at a board hoping to hit bull's eye.
I'll avoid buying cyclical stocks.
The devaluation of the chinese yuan have resulted in market pullback. Next the US Federal Reserve impending increase in interest rate which is just around the corner. All these events will result in volatile times. Greed and fear often affect markets than their true underlying fundamentals.
Market pullback doesn't signal an end. Instead, it's an opportunity for investors to cherry-pick fundamental sound stocks at more reasonable prices. I strongly believe for a start the US Federal Reserve will increase interest rate by only 25 basic points. This will remove the uncertainty and resulted in buying on news. Remember market dislike uncertainty. Being investors we have to keep thinking toward the future.
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