18 August 2017

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

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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.

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