I previously blogged that Starhub (SH) was trading at an insane price of $4.43 (here) and that was overvalued. I have sold off SH at $4.39 and it didn't surprise me that it is now trading at $4.02, near to its 52 week low.
The big drop came about after SH announced that its profit from operations has decreased by 15% when compared to 1Q2014. EBITDA was also 8.5% lower for the quarter.
With my analysis of $4.04 a share, P/E is 19.95 times. SingTel's P/E is 18.5 and M1's 18.48. This might mean that at this current share price, it is not exactly an attractive stock to buy. The D/E is 4.63 (really high) whereas the other 2 telcos are 0.37/0.56 respectively.
The PEG ratio is also high as compared to other Telcos. :(
I think the only saving grace is still its attractive dividend payout. But I wouldn't risk buying the stock and then half a year later, see a drop in price value again. End up my net return would still be the same or even worse.
Technical jargons aside, I wouldn't buy this stock yet. Not now.
Tuesday 26 May 2015
Monday 18 May 2015
QnM share Part II- Caution
In my previous post, I mentioned that QnM is a good buy, and I vested it at $0.81. That was when market open after the financial results released the night before.
Omg today I look at the price and it shot up to $1!
At $1, the dynamics is very different from $0.81. It might be overvalued given that the P/E is a whooping 80+/- ! Nobody knows for sure that their acquisitions in China and Sg might be soaring with good revenues in the next quarter and the equity it faces might be a challenge.
I urge investors to take a cautious approach for this particular stock please.
Omg today I look at the price and it shot up to $1!
At $1, the dynamics is very different from $0.81. It might be overvalued given that the P/E is a whooping 80+/- ! Nobody knows for sure that their acquisitions in China and Sg might be soaring with good revenues in the next quarter and the equity it faces might be a challenge.
I urge investors to take a cautious approach for this particular stock please.
Tuesday 12 May 2015
QnM Dental - Potential growth stock?
QnM Dental posted a very positive financial results ending 1st Qtr 2015.
1. Big jump in profit before tax
The Group’s 1Q15 profit before tax rose by 173% to $4.5 million from $1.6 million in 1Q14.
173%!! The increase was mainly due to contributions from acquisitions of their China investments.
2. Current Holdings
They have 60 dental clinics, 1 mobile clinic, 3 medical outlets, and 1 aesthetic clinic in Singapore.
In Malaysia, 3 dental hospitals.
In China, 4 dental outlets.
My take is that dental healthcare is a consistent sustainable business to be in, as many companies in Singapore provides dental benefits to their employees. In addition, when one ages, it becomes a need to see the dentist more often.. Just look at my parents, at the age of 60+, they have spent thousands on dental care!
3. Ambitious expansion plans
Now this is the exciting part. QnM has requested for a trading halt earlier this week and yesterday, they have announced their proposition to acquire 8 dental clinics located island wide.
Their profit target amounts to approx. $16.10 million.
Key dentists to be in charge to sign long term service agreements.
Apart from this, they have plans to expand into private dental healthcare in the PRC, Malaysia and through other acquisitions.
Conclusion:
Although I do have a little concern on over aggressiveness of expansion plans, at this moment I think QnM is promising.
Vested at $0.81 today when market open. :D
1. Big jump in profit before tax
The Group’s 1Q15 profit before tax rose by 173% to $4.5 million from $1.6 million in 1Q14.
173%!! The increase was mainly due to contributions from acquisitions of their China investments.
2. Current Holdings
They have 60 dental clinics, 1 mobile clinic, 3 medical outlets, and 1 aesthetic clinic in Singapore.
In Malaysia, 3 dental hospitals.
In China, 4 dental outlets.
My take is that dental healthcare is a consistent sustainable business to be in, as many companies in Singapore provides dental benefits to their employees. In addition, when one ages, it becomes a need to see the dentist more often.. Just look at my parents, at the age of 60+, they have spent thousands on dental care!
3. Ambitious expansion plans
Now this is the exciting part. QnM has requested for a trading halt earlier this week and yesterday, they have announced their proposition to acquire 8 dental clinics located island wide.
Their profit target amounts to approx. $16.10 million.
Key dentists to be in charge to sign long term service agreements.
Apart from this, they have plans to expand into private dental healthcare in the PRC, Malaysia and through other acquisitions.
Conclusion:
Although I do have a little concern on over aggressiveness of expansion plans, at this moment I think QnM is promising.
Vested at $0.81 today when market open. :D
Monday 4 May 2015
How to have $1m by age 55 & what if you do not invest..
It is no secret: Start investing and saving 30% of your savings at age 25!!
This is like a super conservative estimate:
Assumptions:
1. At age 25- Salary of $3k. Saves 30% of annual salary.
2. Saves and invests at 4.5% returns
3. Salary increases at 5% until age 30, thereafter increasing at 3% until age 40. Savings correspondingly increases too.
4. Salary reaches a max of $5k until age 45. Salary drops to 4k thereafter until age 55.
I think saving 30% of your salary annually is not that difficult right? I haven't even take into account of all the bonuses during the year end! 4.5% returns in investment is attainable, most achieve at least 7-8% for the better investors. Well if you manage to get at 5% returns, you can achieve $1m at age 53 :) calculation done.
There is no secret, the compounding effect is most powerful and benefits most during the early stages so one should really start investing and saving early.
Investing early case scenarios:
Let's further take a look at Peter and Mary case scenarios. Both of them save and invest at $700 per month, or $8400 annually. However, Peter only started saving diligently at age 35 whereas Mary started at age 25, about 10 years early.
Their portfolio at age 60:
As you can see, Mary has about $700k+ in her portfolio whereas Peter has only $400k+. That's such a big difference of $300k+!
If you do not invest AT ALL
Lastly, if you do NOT invest at all. If you were to save 30% of your annual salary and put all into the bank... ok last just assume you put all into fixed deposits as it is very safe and secure. The return is 1%.
The graph has explained itself. Your portfolio will only be 50% of what the 4.5% return portfolio have, even if both saves at the exact amount of $700 per month.
The conclusion of this post is: Save and invest early, save and invest consistently!
This is like a super conservative estimate:
Assumptions:
1. At age 25- Salary of $3k. Saves 30% of annual salary.
2. Saves and invests at 4.5% returns
3. Salary increases at 5% until age 30, thereafter increasing at 3% until age 40. Savings correspondingly increases too.
4. Salary reaches a max of $5k until age 45. Salary drops to 4k thereafter until age 55.
I think saving 30% of your salary annually is not that difficult right? I haven't even take into account of all the bonuses during the year end! 4.5% returns in investment is attainable, most achieve at least 7-8% for the better investors. Well if you manage to get at 5% returns, you can achieve $1m at age 53 :) calculation done.
There is no secret, the compounding effect is most powerful and benefits most during the early stages so one should really start investing and saving early.
Investing early case scenarios:
Let's further take a look at Peter and Mary case scenarios. Both of them save and invest at $700 per month, or $8400 annually. However, Peter only started saving diligently at age 35 whereas Mary started at age 25, about 10 years early.
Their portfolio at age 60:
As you can see, Mary has about $700k+ in her portfolio whereas Peter has only $400k+. That's such a big difference of $300k+!
If you do not invest AT ALL
Lastly, if you do NOT invest at all. If you were to save 30% of your annual salary and put all into the bank... ok last just assume you put all into fixed deposits as it is very safe and secure. The return is 1%.
The graph has explained itself. Your portfolio will only be 50% of what the 4.5% return portfolio have, even if both saves at the exact amount of $700 per month.
The conclusion of this post is: Save and invest early, save and invest consistently!
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