Ok,..I was thinking to have both yield and margin-of-safety,...

I think for such stepping-stone counters, there is still a chance now to buy-in because the DPS has been announced to be the same as last year's. At this DPS, the yield would be about 6.10%,... and I think too that this counter would have a chance to appreciate further together with the rising tide,.....

The downside would be the counter pays out the divvy only once-a year,... just like my ASX investments in MY. I would prefer to get my funds faster,...

Yield is not everything, yield can change if the underlying business factor change. If the earning is increasing, you can more or less bet that your yield will increase, but if the earning is suffering, you can bet the yield will be less in the future. If a company cannot earn enough money or having a loss, how to maintan the dividend?

It is more important for you to analyze the underlying business and deduct if there is sufficient margin of safety. Margin of safety is not just as simple as PE, PB, DY, EV/EBITDA, FCF etc... as these are all moving target and the business change.

True margin of safety is that IF i buy this business now, AND if things go south, how far south it can possibly go, what is my safety factor?

Just my 2 sen..

This post has been edited by gark: Mar 2 2016, 01:11 PM

Seems like a lot of SG bank fans here.. here I give you all some data to make your own conclusion..











Source

Tq Gark for your good insights,....

Buy-in slowly and carefully into KepCorp,... her prbs are not over yet,....mtg concerning Sete Brazil is next week. At the mtg,... there are talks that Sete Brazil may choose to go the bankruptcy protection route :-

What should rig builders do if Sete Brasil flops?

Selling the rigs will be tough in this market.

There are few avenues open to Singapore’s largest rig builders in the event that Sete Brasil, their largest customer, ends filing for bankruptcy protection.

According to Pei Hwa Ho, equity analyst at DBS Vickers, Singapore rig builders are buffered by the 65% collection of contract value of first seven rigs, in the worst case scenario that Sete files for bankruptcy protection.

Ho noted that it might make more sense for the rig builders to continue building the units which are already at advance stages and sell them in the market. Given weak market sentiment, however, continuing construction would require millions of dollars of working capital from each yard. Selling the units will also be tough, and it is uncertain whether either of the rig builders will be able to profit from such a sale.

In addition, Sete Brasil’s imminent bankruptcy also raises concerns if the rig builders are required to write down the value of their yard facilities in Brazil.

Ho said that Sembcorp Marine will be more adversely affected because it has invested $1bn for its new Brazilian yard over the past 3 years. On the other hand, Keppel should be less affected given its Brazil yard is a relatively old facility acquired over 10 years ago.

Singapore’s rig builders took hefty impairments for the Sete Brasil projects in the fourth quarter. Keppel made provisions of $230m for the Sete Brasil projects in Q4, after accessing the construction progress, payments received, receivables from Sete Brasil and payables to vendors, among others.

On the other hand, Sembcorp Marine made $329 million in impairments for its Sete Brasil drillship projects in FY15. SembMarine warned that the current down-cycle will be "more protracted than previous cycles".

- See more at: http://sbr.com.sg/energy-offshore/in-focus...h.hd2MeNmj.dpuf

Usual la...

when RETRACE.. scare to buy

when Up... Thinking missed the boat.

Cash is still KING... for the time being...

too much cash for too long will bury the king!



really... us markets looking up, crude price looking up (nervously).

gotta be very alert when the next significant pullback comes.

look like another 2-3% gain today for banks.

i dunno.. Feb div all in.. Since Nov div collected till now, i hv not buy anything.
Sitting in SG... earning nothing!!!!!!

But if buy , takut Buy wrong.. now suddenly very EMO.

My Objective.. Buy for long term yield.. but looks like still need EMO STAMINA....

If you need to hold cash longer term, but want some return can try to hold in ABF SG Bond ETF (A35). Current yield is 2.32%.

But short term, be mindful of trading cost.

THX.. i waiting for OPPORTUNITY with my CASH!!! haha

So, it need to stay liquid for time being...

Got bad experience holding too much cash during 2014-2015.

Being too liquid can be painful if exceed 6 months.. especially in SG, as the FD is pretty poor. As least MY FD is more palatable.

Been there done that, so 2016 strategy is to try to get nearly fully invested, with opportunity fund in more stable instruments. These instruments will be sold off if need cash to invest.

See if it works out.

This post has been edited by gark: Mar 3 2016, 03:30 PM

Bro Gark, you intend to invested more to Reits or other counters as in the opportunity fund? Will you build a diversified portfolio into different sector like financial, telco, healthcare, transport, real estate, consumer utility etc.?

What's your strategy?

I am investing in a few countries, with 4 different brokerage. For Sg I am going for passive income investing. It will be roughly 60-70% REIT and 30-40% yield stocks, my target blended yield to be 8% with 90-95% invested (5-10% generated from dividend to subscribe future rights ).

This is still a plan tho.. most of my holding is still in cash . For investing in other countries I am going for capital gain.

This post has been edited by gark: Mar 3 2016, 04:17 PM

same for my strategy for SG. More of Yield collection.

Anyway, Thank you to "Gark".

if not because of him.... i will not be motivated to take a trip to SG
and open my DBS ac. TQ....

SG is my safe haven.. IF anything happen to Malaysia (touch wood).. can still run there and live off my investments.

That is why it is important for me the brokerage is in SG.

Anyway no need to thank me, its my pleasure to help.

This post has been edited by gark: Mar 3 2016, 04:22 PM

yes i agree....

In few years time, i will need to transfer out funds for my kids Education from Singapore.

Still looking at what is safe to buy....

i am geared towards the 4x div ... instead of 1 x

very shiok to see my statement with the dividends.. haha.

yes thanks Gark, indeed SG is the safe heaven for yield collection. I had pulled most of my investment in MY to SG and only left those hard asset at there. Hope time will prove me right one day.

Wah.. HANSEL.. yr KEPPEL CORP.. making money already...!!!!