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.

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