05 July 2018

Singapore savings bond reaches 1.78% pa for year 1, Fixed Deposits up to 1.8% at CIMB & 1.85% pa at ICBC Singapore

If you are a saver, we have some good news for you the Singapore Savings Bond. The first year interest rate has reached 1.78%.

At the moment, a few banks have launched new campaigns to draw in more SGD. CIMB just launched their e-FD, which is electronic FD that can be placed from funds from the CIMB Fastsaver's account. The Minimum sum is S$20,000 and the yield is 1.8% pa.

So, the highest bidder is now 

1) ICBC Singapore eFD at 1.85% from S$20,000 onwards
2) CIMB eFD at 1.80% pa from S$20,000 onwards 
3) SSB Aug issue at 1.78% pa (for another amount below $100,000 per person)

From the trend, it looks like the savings rates is on the upward trend. Do note that different bank and institutions have different terms & conditions for premature withdrawal. So, check with the relevant banks/institutions before making the placement.

24 May 2018

Rumour : TPG launching telco service in June in Singapore ?

There are some rumours going on the cyberspace that TPG, the 4th telecom operator will begin operations in June 2018.

From my own observation, this might be true. Just in the months of Apr and May, we see two new MVNOs joining into the war.

In Mar/Apr, Zero1 joins in the MVNO wars with Zero1 launching it's S$19/mth offer which comes with unlimited data (after the first 3GB).

In May, MyRepublic joined in with a S$8/mth unlimited plan (after 1GB) with 1000 minutes of calls and SMS.

Circles.Life being the 2 years old MVNOs probably sees massive port out and launched the $0 flexi plan to counter the two new comers. It has been quite successful in it's attempt as it is giving a 30 minutes talk time, 1GB data and 30 SMS per month to every one who registers with valid ID in Singapore. Users can top up using the app whenever necessary.

Would this price cuts in anticipation of TPG's launch next month ? The latest Circles.Life plan not only targets the MVNOs, it also target TPG's plan to issue free SIM to seniors aged 65 with 3GB of mobile data, and free local voice calls for the first 24 months.

TPG is a 4G service provider only. What that means is that, even if you decide to sign up their SIM only plan, you might not be able to use their voice call service unless you only rely on WhatsApp or SKYPE. The reason is because not all the phones in the market supports VoLTE. Of course, if you can live with just a data plan it is fine.

Secondly, with the cheap plans offered by MVNO Circles.Life, Zero1, Zero Mobile, MyRepublic, the users have the option to sign up 2 or more lines without contract.

In a market like Singapore, we now have 4 MNOs and 4 MVNOs. Will that impact the share price of the 3 incumbent telcos ? I don't think so.

In fact, the MVNOs in a way are just extensions of the MNOs in a different form. For example, M1 will still sell it's high end plans with 4G unlimited data with no throttling and can bundle that with it's fibre broadband service. Circles.Life targets the mid range and now the Flexi plan eats up the whole pic of entry level users. The subscriber base will only increase and provide more revenue for the incumbents. The same applies for Singtel and Starhub.

TPG may have a hard time luring new users as their network is untested and there are bound to be technical hiccups or line disconnections or reception issues in the early stages.

I am invested in Singtel and M1.

13 April 2018

AMD Ryzen 2nd generation Ryzen 7 2700X, 2700, Ryzen 5 2600X 2600 on Amazon

Those who have been waiting for can order it online today at Amazon. Pricing in USD

The Ryzen 7 2700X comes with the PRISM LED cooler while the 2700 and 2600X comes with Spire.

The lowest end Ryzen 5 2600 comes with Wraith Stealth cooler

AMD Ryzen 7 2700X Processor with Wraith Prism cooler  $329.00 https://amzn.to/2qt9oiS

AMD Ryzen 7 2700 Processor with Wraith Spire  $299.00 https://amzn.to/2GYQLul

AMD Ryzen 5 2600X Processor with Wraith Spire  $229.00 https://amzn.to/2IPr0Np

AMD Ryzen 5 2600 Processor with Wraith Steath  $199.00 https://amzn.to/2ISnHoV

24 January 2018

M1 M Send transferred cannot be used for data plan subscription

If you are holding two M1 M card (prepaid), there is a feature known as M*send which you could transfer credits from one card to another.

It is a nice feature to have. Unfortunately this feature has hidden features that is no spelt out in the Terms & Conditions.

It is only after I transferred the credits of S$10, I found that it went to a so called Bonus Balance. This Bonus Balance can only be used for making calls and SMS and cannot be used to activate data plan.

It also has a validity of only 30 days.

Looks like I have to make hell lots of calls to deplete this $12 worth of credits before it expires.

I called up the hotline and the staff told me there is no way to revert the transfer or transfer it to the main  balance.

So, do you think it is fair to a customer who is paying for the service and yet unable to use it to activate the services just because it is an bonus balance ?

26 August 2017

M1 Fibre gives discounts to existing ADSL/Cable broadband users to switch to M1 Fibre Broadband

M1 is now offering really cheap fibre broadband plans never seen before for defactors of ADSL and Cable broadband users.

The two plans are 

300 Mbps at S$23/mth for the first 12 months followed by S$29/mth for the next 12 months. That averages to S$26/mth for 24 mths. A total of S$624 for 24 mths. 

For the 1Gbps plan, it is priced at $29/mth for the first 12 mths and S$39/mth for the subsequent 12 mths. That averages to S$34/mth. A total of S$816 for 24 mths. This plan comes with a free 802.11ac Router.

The two plans comes with a 500MB SIM that you can use for surfing on 4G or make calls (charges applies).

A 24-month service commitment contract applies. Discounts are valid for 24 months, thereafter, prevailing rates apply. Promotional monthly subscription rate of $23/$29 for M1 Fibre Broadband 300Mbps/1Gbps service respectively is valid for the first 12 months and will commence on the service activation date. Promotion is valid from 26 August 2017 to 15 September 2017. Each M1 Fibre Broadband 300Mbps sign-up may choose to receive a wireless AC router by topping up an additional $5/month (subject to availability of stock). Each M1 Fibre Broadband 1Gbps sign-up will receive a wireless AC router (subject to availability of stock). M1 reserves the right to substitute the wireless AC router with a product of similar value at its sole discretion without prior notice.

Promotion is not valid in conjunction with other offers. A one-time registration charge of $48.15 will apply to new sign-ups for Fibre services. Waiver of ONT Activation fees up to $58.85 is only applicable for installation on weekdays (9am to 5pm). For 4G Mobile Broadband SurfValue (SIM only): A SIM card will be issued to new customers. Customers can enjoy up to 500MB of local data usage per month. Excess data usage charges of $10.70/GB, capped at a maximum of $188.32 (excluding monthly subscription) apply. M1 High Speed Fibre Broadband Plans are available for access and use at residential premises (“Service Address”) only. Installation and other miscellaneous fees may apply. Visit m1.com.sg/fbbtnc for full promotion terms and conditions.


18 August 2017

M1 continues with a 2nd day of share buyback

M1 (B2F) continues with it's share buyback. The maximum number of shares authorised for purchase is 93,006,278  or 93 million shares.

Today, on 18 Aug 2017 they only bought back 400,500 shares price ranging from $1.77 to $1.795. A total of $716,973.36 was spent in buying back the 400,500 M1 shares.

Yesterday they bought back 3,000,000 shares from $1.74-1.78. Total $5,321,323.81
To date, they have bought back 3,400,500 shares.

Sheng Siong is being sold off due to fear

It is unfortunate that the local stock market has more young technical traders than investors. A lot of times, long time investors are taken for a ride due to traders speculating and spreading rumours about counters on online forums and WhatsApp.

Sheng Siong is one of the latest victims. The share price was around $1.00 before it started to drop on Amazon's entry into the Singapore market.

Although we see high business volume at Sheng Siong, Amazon has changed the landscape as they can deliver anywhere in Singapore within 2 to 4 hours for free. Sheng Siong, which has a lead by more than one year didn't anticipated that the buyer's behavior has changed and they still only deliver within the north eastern Singapore.

Sheng Siong has to counter this challenge. Amazon is not RedMart or smaller players but a big company that even the Trump dislikes as it has disrupted the retail business over there.

Amazon will also challenge other retail business soon once they expand the products carried locally. Some of these include Courts, Harvey Norman, Lazada, Qoo10.

FA or TA, this doesn't look too good for Sheng Siong for the short term.

17 August 2017

M1 begins share buyback of 3 million shares in open market to support share price

M1's share price has been shorted the most after it's strategic review didn't go through.

Today, M1 made an announcement that they are doing Share BuyBack. This is supportive of the share price and it is a bullish indicator.

I predict that M1 share price will move back to $2.00 or more. The company's initiative with NB-IoT will pay off. Secondly, TPG will have minimal impact on the telcos as the infrastructure isn't ready.

02 August 2017

HSBC offers no minimum trading charges for SGX, HKEX and US trading

Take advantage of our promotional brokerage rates and invest in stocks in the USNEW, Singapore and Hong Kong markets  online through Personal Internet Banking.
From 1 to 31 August 2017, enjoy 0.052% brokerage fee with no minimum fee* on all trades via HSBC Online Securities Trading platform. There is no minimum charge of $10 for the trade. It is valid from 1 to 31 August 2017.


27 May 2017

Did Singapore dollar outperform Ringgit over a ten year period 2007 to 2017 ?

The above scenario is based on a FD of 1.2% kept in a Singapore bank versus a FD of equivalent amount  
converted to MYR in 2007 at 1 SGD=2.29 MYR. 
No withdrawals are done and after ten years, the compounding effect of the MYR at 4.5%
outperform the SGD.


                          SGD                            MYR
2007 100000 229000
2008 101200 239305
2009 102414.4 250073.725
2010 103643.3728 261327.0426
2011 104887.0933 273086.7595
2012 106145.7384 285375.6637
2013 107419.4873 298217.5686
2014 108708.5211 311637.3592
2015 110013.0234 325661.0403
2016 111333.1796 340315.7872
2017 112669.1778 355629.9976
If we convert MYR back to SGD, using the current exchange rate of 3.1
SGD 112669.1778 x 3.1 = MYR 349274.45

This is just a simplistic comparison as FD rates of both countries fluctuated over the past ten years too.

Post your comments below:

27 December 2016

Is it worth putting money in POSB SAYE for the 2% pa interest

Came across this SAYE on POSB website lately and I thought I found a gem to place my funds. It is only looking through the illustration, I found out that the effective interest rate is almost half of the so called 2% pa interest.

How this scheme works is that you open an account and credit your salary monthly for 2 years. Every mth, they will credit a base interest of 0.1% pa  and a 2% pa interest on the cumulated amount.

The illustration shows that a person banks in every beginning of the month with S$100. After 24 months, his accumulated amount is S$2400. the base interest accumulated is $1.25 and the additional bonus (2% pa) is $50.06. Total interest over 2 yrs is 51.31.

Dividing 51.31 over $2400 gives you 2.1379% over 2 yrs. That equates to only 1.068% pa interest if you have placed the $2400 in a Fixed Deposit which yields a 1.5% pa. (2 yrs of 1.5% will yield $36 annually, 2 yrs will generate $72).

If the amount is too small for you to see the difference, we can easily magnify it ten 10 times. Depositing $24000 for 2 yrs will yield $720 after 2 yrs. If you credit $1000 dollars over 24 months, total yield will be $513.1.

You would argue that you don't have a lump sum. If that is the case, you might be better off placing the funds in Std Chart e-saver account which generates 1.25% pa.

Tell us what you think.

23 December 2016

Intel Corporation (INTC) ? Is it a good buy ?

Intel Corporation (NASDAQ:INTC) will report its next earnings on Jan 12 – Jan 16 (Est.). The company reported the earnings of $0.8/Share in the last quarter where the estimated EPS by analysts was $0.73/share. The difference between the expected and actual EPS was $0.07/share, which represents an Earnings surprise of 9.6%.

Many analysts are providing their Estimated Earnings analysis for Intel Corporation and for the current quarter 30 analysts have projected that the stock could give an Average Earnings estimate of $0.75/share. These analysts have also projected a Low Estimate of $0.71/share and a High Estimate of $0.79/share.

In case of Revenue Estimates, 32 analysts have provided their consensus Average Revenue Estimates for Intel Corporation as 15.73 Billion. According to these analysts, the Low Revenue Estimate for Intel Corporation is 15.66 Billion and the High Revenue Estimate is 16.2 Billion. The company had Year Ago Sales of 14.91 Billion.

These analysts also forecasted Growth Estimates for the Current Quarter for INTC to be 1.4%. They are projecting Next Quarter growth of 13%. For the next 5 years, Intel Corporation is expecting Growth of 10% per annum, whereas in the past 5 years the growth was 3.88% per annum.

Some buy side analysts are also providing their Analysis on Intel Corporation, where 0 analysts have rated the stock as Strong buy, 0 analysts have given a Buy signal, 0 said it’s a HOLD, 0 reported it as Underperform and 0 analysts rated the stock as Sell. (These Recommendations are for the Current Month Only reported by Yahoo Finance.)

When it comes to the Analysis of a Stock, Price Target plays a vital role. 35 Analysts reported that the Price Target for Intel Corporation might touch $46 high while the Average Price Target and Low price Target is $39.89 and $25 respectively.

To analyze a stock, one should look for Upgrades and Downgrades of a stock. Intel Corporation got Initiated on 13-Dec-16 where investment firm Loop Capital Initiated the stock to Buy.

Intel Corporation closed its last trading session at $36.31 with the gain of 1.6%. The Market Capitalization of the company stands at 177.13 Billion. The Company has 52-week high of $38.36 and 52-week low of $27.68. The stock’s current distance from 20-Day Simple Moving Average (SMA20) is 4.21% where SMA50 and SMA200 are 4.34% and 10.29% respectively. The Company Touched its 52-Week High on Oct 10, 2016 and 52-Week Low on Feb 11, 2016.

The Relative Volume of the company is 0.86 and Average Volume (3 months) is 21.73 million. Intel Corporation P/E (price to earnings) ratio is 17.34 and Forward P/E ratio of 13.12.

The company shows its Return on Assets (ROA) value of 9.7%. The Return on Equity (ROE) value stands at 16.8%. While it’s Return on Investment (ROI) value is 13.6%.

Intel is slated to launch it's 200 series chipsets at CES 2017.


22 December 2016

DBS Vickers maintains a BUY call for MM2 ASIA Target price 56 cents

DBS Vickers Securities is maintaining its “buy” call on mm2 Asia, the films and TV production house, with a target price of 56 cents. This comes after the successful listing of UnUsUal as well as after mm2 reported a net profit of $8.9 million for 1H17, nearly double from the previous year.

Looking ahead, DBS analyst Ling Lee Keng anticipates the group’s increasing focus on North Asia, and expects the region to contribute over 70% of core revenue from FY17F, up from 23% in FY16.”

“The successful listing of UnUsUal, which mm2 acquired at 10.2x PE back in February 2016, would enable mm2 to crystallise gains and unlock value,” Ling adds.

mm2 in November proposed the acquisition of 13 cinemas in Malaysia, which will increase its total number of owned cinema screens in the country to 133.

Aside from building a source of recurring income, Ling believes the acquisition will enable mm2 to “scale up for better synergies and cost savings”, as well as propel the group to become a top four player in Malaysia from FY18F onwards.

“mm2 will continue to expand in the area of new media content. With an Over-thetop (OTT) content platform in development and the recent proposed acquisition of RINGS.TV to offer more diverse content and an additional platform for broadcast, mm2 is in a position to produce, distribute and exhibit transmedia content and enter new market segments,” asserts the analyst.

Shares of mm2 are trading at 43 cents. It has already cross the moving average. Target 44.5c followed by 47c, 49c, 55c.