Home - Wok

Bought a Tefal wok ( 28cm ) from Metro @ compass point at a cost of $43.90.

Portfolio Update - December 2007

Top Ten Holdings ( by market value )

1. ST Engineering
2. Noble Grp
3. SIA
4. Swiber
5. UOB
6. SingTel
7. OCBC
8. Comfort Delgro
9. Allgreen
10. Semb. Marine

Dividend for the month of November = $427.29

From 05-12 year2007 ( over 8 months ), my total dividend is $15,124.43

Market Value of equity = $428,348.12
Market Value of trust fund ( fundsupermart ) = $73,564.83
Market Value of trust fund ( finatiq ) = $59,819.25

Market remains volatile throughout the month with the credit crunch issue very much in the forefront of the whole nervousness. Year end rally did not materialise, though there was a slight upwsing on the last day of the month. The whole economy in general still appear to be on the rising trend and hopefully 2008 will turn on the heat for another bull run. Under such circumstance, it is important to position oneself for the upswing if it comes, before all the uncles and aunties jump onto the wagon too.

HMI - Rights on 24 Dec 2007

The Rights Issue is to be made on a renounceable non-underwritten basis to Entitled Shareholders on the basis of 2 Rights Shares for every 4 existing Shares held by Entitled Shareholders as at the Books Closure Date at an issue price of $0.05 for each Rights Share, fractional entitlements to be disregarded.

The Issue Price represents a discount of approximately 76.7% to the last transacted price of S$0.215 per Share on the Official List of the SGX-Sesdaq( now known as Catalist ) on 24 October 2007 ( being the last full trading day of the Shares prior to the announcement of the Rights Issue on 25 October 2007 ) and a discount of approximately 65.5% to the last transacted price of S$0.145 per Share ( traded on an ex-rights basis ) on the OfficialList of the SGX-Sesdaq( now known as Catalist ) as at 19 December 2007 ( being the last full trading day of the Shares prior to the Lastest Practicable Date).

Based on the Company's issued share capital of 343,686.600 Shares as at the Latest Practicable Date and assuming that there is no change to the Company's issued share capital by the Books Closure Date, the Company will issue up to 137,474,640 Rights Shares pursuant to the Rights Issue.


Expected Timetable of key events :
Shares trade ex-Rights - 19 Dec 2007
Book Closure Date - 24 Dec 2007
Despatch of the OIS, ARE and PAL - 28 Dec 2007
Commencement of trading of "nil-pad" rights - 28 Dec 2007
Last date and time for splitting - 8 jan 2008
Last day for trading of "nil-pad" rights - 8 Jan 2008
Last date and time for acceptance of and payment for Rights shares - 14 jan 2008
Last date and time for renunciation of and payment for Rights shares - 14 Jan 2008
Last date and time for application and payment for excess Rights shares - 14 Jan 2008

Application :
On 4 jan 2008
Applied 800 shares of rights = $40.00
Applied 4200 shares of excess rights = $210.00

Results :
A sum of $150 was returned to me. ( successfull application of $100 )
This means I was successful in getting
rights = 800
excess rights = 1200

a total of 2000 shares at a price of $100.00

Purchase of SGS T-Bills ( TB-080103-0007 )

My seventh purchase of SGS T-Bills

The bid done for today is for the auction next week :
Issue Code - BQ08100A
Issue Date - 03 Jan 2008
Tenor - 91 days
Maturity Date - 03 April 2008

a 10% downpayment was made ( = $100.00 ) which will be refunded when the transaction is performed next week.

I made a bid of S$1000.00The yield will be known next week through the auction result.

yield = 2.00%
total paid = $995.01
gain = $4.99

Home - Lights

The ceiling light in the living room consists of 3 bulbs of 40W. It is yellow light. Recently I changed it to 3 white bulbs of 40W. The brand is Philips ( also available in OSRAM ). It costs $4.90 each. With white light, one cannot dim the lights, as such, I have taped down the dimmers.

The side lights at the dining room were changed too. I changed it from a 40W yellow bulb to a 60W yellow bulb. Each bulb costs $0.80.

Purchase of SGS T-Bills ( TB-071227-0006 )

My sixth purchase of SGS T-Bills

The bid done for today is for the auction next week :
Issue Code - BQ07151A
Issue Date - 27 Dec 2007
Tenor - 91 days
Maturity Date - 27 March 2008

a 10% downpayment was made ( = $100.00 ) which will be refunded when the transaction is performed next week.

I made a bid of S$1000.00
The yield will be known next week through the auction result.

yield = 2.0%
total paid = $995.01
gain = $4.99

Next In Sight website

In the newly revamped Pulses magazine, one of the guest writers is Sim Kih. She is a phtojournalist with NextInSight, a Singapore online portal dedicated to in-depth features on SGX-listed companies.

Home - Rice Cooker

Today I bought a Philips 1 litre rice cooker @ Robinsons. It costs $50.

Home - Bills for dec

Bills for the month of Dec

1. Singtel residential phone fixed line - $20.92 for quarter
2. SP Services - $23.03
3. S&CC - $18.75 (1/2 month rebate )
4. SCV - no subscription yet.
5. Broadband - $45 ( 1st month )
6. Property Tax - no need due to rebates.
7. TV licence - $110 per year ( paid for 2008 )

black - not paid,
blue - paid

updated on 19 dec 2007, 25 dec 2007, 29 dec 2007

An inspirational story about Tony Fernandes.

Kleer has a very nice and inspirational story arhive here originally published by Dr. Money for the New Paper.

The Perfect Egg

Came across this interesting egg boiling timing instrument in Robinsons@Centrepoint, Burton's Plastic Egg Timer. It is selling at a price of $11.20.

An article on the timer, Egg-Per'fect Color Changing Egg Timer .

IPO - JES

Applied for IPO :
IPO price : $0.67
Shares applied : 5,000
Total cost : $3,350

Updated on 19 Dec 2007 -
Cost Returned : $2,680
Shares Allocated : 1,000
Cost : $670

Kleer's JES part 1
Kleer's JES part 2

RaboJet Cert - Series 5 - knockout

On the observation date 28 Nov 2007, the knockout condition was satisfied. So the issue was exited. All the daily returns will be returned to user. See here for daily returns.

Total number of scheduled trading days duinrg the life of the Certificates = 250
Number of scheduled trading days elasped since Launch Date 28 Aug 2007 = 60
Number of scheduled trading days elasped since Purchase Date 5 Sept 2007 = 56
Number of scheduled trading days to date when Lock In Amount Accumulated = 56
Lock in Amount acumulated to date ( per Board Lot of 1,000 Certificates = SGD $44.8 ( $0.8/day)
Profit = $44.8.0 - $43.43= $1.37

On 10 Dec, I was returned $1026.60 instead of $44.8 because of clearance fee by CDP.

So my actual return is
$1.37 - $26.60
= -$25.23

So in fact I made a loss.

Two reasons for the loss :
1. the brokerage fee when I made the purchase. ( which is zero if I bought it during pre-launch )
2. the clearance fee when exiting.

taking away the overhead, the return is quite attractive. however, with the front and back end fees, and also the small sum invested. It is not that rewarding.

Another blog

On 15 Dec 07 ( Saturaday ), I created another blog here. The purpose of this blog is to keep track of my stuff related to Information Technology (IT) and photography. The intention is not to over-clutter my investment blog.

Home - Internet Broadband

Today, I setup the Internet Broadband in my home.

My broadband is SingNet 3Mbps Unlimited Plan.
( Upload Speed : up to 350kbps )
$45/mth
24 month contract

FREE
30MB Email Storage
24-month 20MB Supplementary
Email Account
3-month Anti-Spam & Email Virus Scan
3-month My Album
1GB Storage
Wireless@SG 1

comes with
- iPod touch - 8GB2

Revolutionary multi-touch interface
Brilliant 3.5-inch widescreen display
Ambient light sensor and accelerometer
Surf the web with Wi-Fi
For
Mac and Windows

- Ethernet Modem (Win/Mac Compatible)



Installation is very simple, just insert the setup CD and follow the installation instructions on the screen. In total, it took around 30 mins.

Download speed is so much faster compared to my experience from starhub broadband.

Purchase of SGS T-Bills ( TB-071221-0005 )

My fifth purchase of SGS T-Bills

The bid done for today is for the auction next week :
Issue Code - BQ07150V
Issue Date - 21 Dec 2007
Tenor - 91 days
Maturity Date - 21 March 2008

a 10% downpayment was made ( = $100.00 ) which will be refunded when the transaction is performed next week.

I made a bid of S$1000.00
The yield will be known next week through the auction result.

yield = 2.0%
total paid = $995.07
gain = $4.93

IPO - Soon Lian Holdings Ltd

Applied for IPO :
IPO price : $0.21
Shares applied : 10,000
Total cost : $2100

Updated on 18 Dec 07
Shares Allocated : 0
Cost : 0

Kleer's Soon Lian

Finance Learning - Inflation

Inflation Tutorial

Inflation is defined as a sustained increase in the general level of prices for goods and services. It is measured as an annual percentage increase. As inflation rises, every dollar you own buys a smaller percentage of a good or service.

Several variations on inflation:
- Deflation;
- Hyperinflation;
- Stagflation.

In recent years, most developed countries have attempted to sustain an inflation rate of 2-3%.

Causes of Inflation
Demand-Pull Inflation - This theory can be summarized as "too much money chasing too few goods". In other words, if demand is growing faster than supply, prices will increase. This usually occurs in growing economies.

Cost-Push Inflation - When companies' costs go up, they need to increase prices to maintain their profit margins. Increased costs can include things such as wages, taxes, or increased costs of imports.

Problems arise when there is unanticipated inflation:
- Creditors lose and debtors gain if the lender does not anticipate inflation correctly. For those who borrow, this is similar to getting an interest-free loan.
- Uncertainty about what will happen next makes corporations and consumers less likely to spend. This hurts economic output in the long run.
- People living off a fixed-income, such as retirees, see a decline in their purchasing power and, consequently, their standard of living.
- The entire economy must absorb repricing costs ("menu costs") as price lists, labels, menus and more have to be updated.
- If the inflation rate is greater than that of other countries, domestic products become less competitive.

The question shouldn't be whether inflation is rising, but whether it's rising at a quicker pace than your wages.

In some situations, little inflation (or even deflation) can be just as bad as high inflation. The lack of inflation may be an indication that the economy is weakening. As you can see, it's not so easy to label inflation as either good or bad.

Measuring inflation is a difficult problem for government statisticians. To do this, a number of goods that are representative of the economy are put together into what is referred to as a "market basket." The cost of this basket is then compared over time. This results in a price index, which is the cost of the market basket today as a percentage of the cost of that identical basket in the starting year.

Consumer Price Index (CPI) - A measure of price changes in consumer goods and services such as gasoline, food, clothing and automobiles.

The Fed meets eight times a year to set short-term interest rate targets.

Interest rates directly affect the credit market (loans) because higher interest rates make borrowing more costly. By changing interest rates, the Fed tries to achieve maximum employment, stable prices and a good level growth. As interest rates drop, consumer spending increases, and this in turn stimulates economic growth.

It's the Fed's job to maintain that delicate balance. A tightening, or rate increase, attempts to head off future inflation. An easing, or rate decrease, aims to spur on economic growth.

The main problem with stocks and inflation is that a company's returns tend to be overstated. In times of high inflation, a company may look like it's prospering, when really inflation is the reason behind the growth. When analyzing financial statements, it's also important to remember that inflation can wreak havoc on earnings depending on what technique the company is using to value inventory.

This example highlights the difference between nominal interest rates and real interest rates. The nominal interest rate is the growth rate of your money, while the real interest rate is the growth of your purchasing power.

Conclusion :
Some points to remember:
- Inflation is a sustained increase in the general level of prices for goods and services.
- When inflation goes up, there is a decline in the purchasing power of money.
- Variations on inflation include deflation, hyperinflation and stagflation.
- Two theories as to the cause of inflation are demand-pull inflation and cost-push inflation.
- When there is unanticipated inflation, creditors lose, people on a fixed-income lose, "menu costs" go up, uncertainty reduces spending and exporters aren't as competitive.
- Lack of inflation (or deflation) is not necessarily a good thing.
- Inflation is measured with a price index.
- The two main groups of price indexes that measure inflation are the Consumer Price Index and the Producer Price Indexes.
- Interest rates are decided in the U.S. by the Federal Reserve. Inflation plays a large role in the Fed's decisions regarding interest rates.
- In the long term, stocks are good protection against inflation.
- Inflation is a serious problem for fixed income investors. It's important to understand the difference between nominal interest rates and real interest rates.
- Inflation-indexed securities offer protection against inflation but offer low returns.

Home - TV - free gifts

Today I collected the free gifts redemption for my Sharp TV.
It includes a $200 cash card.

See this link for usage of cash card.

Finance Learning - P/E ratio

Price Earning Ratio

P/E, you simply take the current stock price of a company and divide by its earnings per share (EPS):
Most of the time, the P/E is calculated using EPS from the last four quarters.

Historically, the average P/E ratio in the market has been around 15-25. This fluctuates significantly depending on economic conditions. The P/E can also vary widely between different companies and industries.

In other words, a P/E ratio of 20 suggests that investors in the stock are willing to pay $20 for every $1 of earnings that the company generates. However, this is a far too simplistic way of viewing the P/E because it fails to take into account the company's growth prospects.

Although the EPS figure in the P/E is usually based on earnings from the last four quarters, the P/E is more than a measure of a company's past performance. It also takes into account market expectations for a company's growth. Remember, stock prices reflect what investors think a company will be worth. Future growth is already accounted for in the stock price. As a result, a better way of interpreting the P/E ratio is as a reflection of the market's optimism concerning a company's growth prospects.

The P/E ratio is a much better indicator of the value of a stock than the market price alone. For example, all things being equal, a $10 stock with a P/E of 75 is much more "expensive" than a $100 stock with a P/E of 20. That being said, there are limits to this form of analysis - you can't just compare the P/Es of two different companies to determine which is a better value.

1. Company growth rates - How fast has the company been growing in the past, and are these rates expected to increase, or at least continue, in the future? Something isn't right if a company has only grown at 5% in the past and still has a stratospheric P/E. If projected growth rates don't justify the P/E, then a stock might be overpriced. In this situation, all you have to do is calculate the P/E using projected EPS.

2. Industry - It is only useful to compare companies if they are in the same industry. For example, utilities typically have low multiples because they are low growth, stable industries. In contrast, the technology industry is characterized by phenomenal growth rates and constant change. Comparing a tech company to a utility is useless. You should only compare high-growth companies to others in the same industry, or to the industry average.

Earnings is an accounting figure that includes non-cash items. To complicate matters, EPS can be twisted, prodded and squeezed into various numbers depending on how you do the books. The result is that we often don't know whether we are comparing the same figures, or apples to oranges.

A low P/E ratio does not necessarily mean that a company is undervalued. Rather, it could mean that the market believes the company is headed for trouble in the near future. Stocks that go down usually do so for a reason. It may be that a company has warned that earnings will come in lower than expected. This wouldn't be reflected in a trailing P/E ratio until earnings are actually released, during which time the company might look undervalued.

First of all, we believe that novice investors shouldn't be shorting. Secondly, you can get into a lot of trouble by valuing stocks using only simple indicators such as the P/E ratio. Although a high P/E ratio could mean that a stock is overvalued, there is no guarantee that it will come back down anytime soon. On the flip side, even if a stock is undervalued, it could take years for the market to value it in the proper way.

Home - TV

Today, my LCD TV was delievered. The model is as follows :

Sharp AQUOS LC37A53M

Features :
High Resolution WXGA Panel with 100Hz/120hz fine Motion Advanced Technology
( 1366 x 768 pixels )
7500:1 high Dynamic Contrast Ratio
Two HDMI Inputs
PC Input ( 15-pin D-sbub )
3D Y/C Comb Filter

5 years warranty.
Best Denki ( compass point )

Finance Learning - Stock Buyback

A Breakdown Of Stock Buybacks

excerpt as follows :
A stock buyback, also known as a "share repurchase", is a company's buying back its shares from the marketplace. You can think of a buyback as a company investing in itself, or using its cash to buy its own shares. The idea is simple: because a company can’t act as its own shareholder, repurchased shares are absorbed by the company, and the number of outstanding shares on the market is reduced. When this happens, the relative ownership stake of each investor increases because there are fewer shares, or claims, on the earnings of the company.

2. Open Market The second alternative a company has is to buy shares on the open market, just like an individual investor would, at the market price. It is important to note, however, that when a company announces a buyback it is usually perceived by the market as a positive thing, which often causes the share price to shoot up.

Nevertheless, there are still sound motives that drive companies to repurchase shares. For example, management many feel the market has discounted its share price too steeply. A stock price can be pummeled by the market for many reasons like weaker-then-expected earnings results, an accounting scandal or just a poor overall economic climate. Thus, when a company spends millions of dollars buying up its own shares, it says management believes that the market has gone too far in discounting the shares - a positive sign.

Another reason a company might pursue a buyback is solely to improve its financial ratios – metrics upon which the market seems to be heavily focused. This motivation is questionable. If reducing the number of shares is not done in an attempt to create more value for shareholders but rather make financial ratios look better, there is likely to be a problem with the management. However, if a company’s motive for initiating a buyback program is sound, the improvement of its financial ratios in the process may just be a byproduct of a good corporate decision. Let’s look at how this happens.

Moreover, buybacks reduce the assets on the balance sheet (remember cash is an asset). As a result, return on assets (ROA) actually increases because assets are reduced; return on equity (ROE) increases because there is less outstanding equity. In general, the market views higher ROA and ROE as positives. (See Reading The Balance Sheet.)

The buyback also helps to improve the company’s price-earnings ratio (P/E).

Based on the P/E ratio as a measure of value, the company is now less expensive than it was prior to the repurchase despite the fact there was no change in earnings.

Bull markets and strong economies often create a very competitive labor market - companies have to compete to retain personnel and ESOPs comprise many compensation packages. Stock options have the opposite effect of share repurchases, as they increase the number of shares outstanding when the options are exercised. As was seen in the above example, a change in the number of outstanding shares can affect key financial measures such as EPS and P/E. In the case of dilution, it has the opposite effect of repurchase: it weakens the financial appearance of the company.

In many ways, a buyback is similar to a dividend because the company is distributing money to shareholders. Traditionally, a major advantage that buybacks had over dividends was that they were taxed at the lower capital-gains tax rate, whereas dividends are taxed at ordinary income tax rates. However, with the passing of the Jobs and Growth Tax Relief Reconciliation Act of 2003, the tax rate on dividends is now equivalent to the rate on capital gains.

Conclusion
Are share buybacks good or bad? As is so often the case in finance, the question may not have a definitive answer. If a stock is undervalued and a buyback truly represents the best possible investment for a company, the buyback - and its effects - can be viewed as a positive sign for shareholders. Watch out, however, if a company is merely using buybacks to prop up ratios, provide short-term relief to an ailing stock price or to get out from under excessive dilution.

....

Purchase of SGS T-Bills ( TB-071213-0004 )

My fourth purchase of SGS T-Bills

The bid done for today is for the auction next week :
Issue Code - BQ07149
Issue Date - 13 Dec 2007
Tenor - 91 days
Maturity Date - 13 March 2008

a 10% downpayment was made ( = $100.00 ) which will be refunded when the transaction is performed next week.

I made a bid of S$1000.00
The yield will be known next week through the auction result.

yield = 2.00%
total paid = $995.01
gain = $4.99

Oilpods Investment

I received my 4th monthly income from my ownership of the Brookshire Salt Dome project= $108.38

Brookshire Salt Dome project monthly income breakdown
Aug 07 = $114.49
Sept 07= $110.89
Oct 07 = $108.84
Nov 07 = $108.38

Total Sum to date = $442.60

Total Holding Yield = 442.60/ 15,210 = 2.91%

Makansutra Raw + episode 1

Makansutra raw is on TV. Details here.

Episode 1 recommended stores are here and also listed below.

Marine Parade Laksa (The Original Katong Spoon Laksa)
50 East Coast Road
#01-64/72 Roxy Square
8am – 7pm

328 Katong Laksa
216 East Coast Road
9am – 9pm

Famous 49 Katong Laksa
49 East Coast Road
Hock Tong Hin (off Ceylon Road)
9am – 9pm

Guan Hoe Soon Restaurant
214 Joo Chiat Road
11am – 3pm, 6pm – 9pm
Closed Tue.
Tel: 6344 2761

Hajjah Mona Nasi Padang
#01-301 Geylang Serai Temporary Market(between Eunos Road 5 & Sims Ave)
7.30am – 7.30pm
Closed Wed

Geylang Lor 29 Fried Hokkien Mee
396 East Coast Road
Food R Us Coffeshop
11.30am – 9.30pm (till sold out)
Closed Mon

Swee Guan Fried Hokkien Mee
549 Geylang Road
Sing Lian Eating House (off Lor 29)
4.30pm - 11.30pm
Closed Alt Wed

Rabojet Cert Series 6

I saw an advertisement in Business Times today on the pending launch of Raboject Cert Series 6.

RaboJet Certs Series 6 is a structured product. The performance of th Certificates is linked to, but not directly invested in, the H-shares of 3 Chinese companies listed on the Stock Exchange of Hong Kong: China Mobile Limited, China Life Insurance Company Limited & Bank of China Limited ( "underlying shares"). These are three of China's largest listed companies.

I called POEMS and found that i can buy Rabojet Cert from my broker from POEMS. I need to fill up a form in order to make a purchase. I cannot buy it over the phone. Also, there is a small fee to pay when making the purchase.

If cert is purchased before launch date, there is no broker's fees to pay, only those payable in the table above. Closing date for order is 12 Dec 07, 12pm.

See this link for basics of certificates.

Asus Eee PC

Came across this interesting PC ( subnotebook ) from Asustek. Saw on advertisement that it was sold at the recent SITEX 2007 @ S'pore Expo.

It is actually based on a Linux OS and uses Flash as storage ( h/d ).

The following are some reviews I gathered :
1. Asus Eee PC First Thoughts
2. Asus Eee PC Hands On Preview
3. Asus Eee PC - wikipedia

SGS Treasury Bill information

SGS Treasury Bill details can be found in SGS website here.
( weekly auction result is also displayed there )

The issue code can be found in the link here.

Financial Terms - Currency Carry Trade

What does it means...
A strategy in which an investor sells a certain currency with a relatively low interest rate and uses the funds to purchase a different currency yielding a higher interest rate. A trader using this strategy attempts to capture the difference between the rates - which can often be substantial, depending on the amount of leverage the investor chooses to use.

Investopedia says...
Here's an example of a "yen carry trade": let's say a trader borrows 1,000 yen from a Japanese bank, converts the funds into U.S. dollars and buys a bond for the equivalent amount. Let's assume that the bond pays 4.5% and the Japanese interest rate is set at 0%. The trader stands to make a profit of 4.5% (4.5% - 0%), as long as the exchange rate between the countries does not change. Many professional traders use this trade because the gains can become very large when leverage is taken into consideration. If the trader in our example uses a common leverage factor of 10:1, then she can stand to make a profit of 45%. The big risk in a carry trade is the uncertainty of exchange rates. Using the example above, if the U.S. dollar were to fall in value relative to the Japanese yen, then the trader would run the risk of losing money. Also, these transactions are generally done with a lot of leverage, so a small movement in exchange rates can result in huge losses unless hedged appropriately.

Details here.

Draft beer

Draught beer (also known as draft beer or tap beer) has several related though slightly different understandings. The majority of references to draught beer are of filtered beer that has been served from a pressurised container, such as a keg or a widget can. A narrower meaning is beer that is served from a keg (or tap), but not from a can, bottle or cask, is also used. A more traditional definition is beer that is served from a large container, which could be either a keg or a cask. The different understandings may at times overlap and cause confusion. Some traditionalists object to the more modern use of the word when applied to canned beer. The slight usage differences of the term is due to the history and development of beer dispensing.

Details here.

Home - Bills - SP Services for nov

SP Services bill for nov
= $42.20

Liverpool Fan Club

The Liverpool Football Fan Club is relocated to the following location :

Official Liverpool F.C. Fan Club (Singapore)

Telok Ayer Hong Lim Green Community Centre

20 Upper Pickering Street

Singapore 058284

Home Page here.

Location here.

Home - Total Bills To Pay

Since owning my own home, the following are the bills that I have to pay.

1. Singtel residential phone fixed line - $20.92 for quarter
2. SP Services - $42.20 for nov
3. S&CC - $37.50 for nov
4. SCV - tbd
5. Broadband - $45 ( updated on 151207 ) see this.
6. Property Tax - no need due to rebates.
7. TV licence - $110 per year

Portfolio Update - November 2007

Top Ten Holdings ( by market value )

1. ST Engineering
2. Noble Grp
3. SIA
4. Swiber
5. UOB
6. SingTel
7. OCBC
8. Comfort Delgro
9. Allgreen
10. Semb. Marine

Dividend for the month of November = $1211.65

From 05-11 year2007 ( over 7 months ), my total dividend is $14,691.14

Market Value of equity = $423,728.37
Market Value of trust fund ( fundsupermart ) = $72,265.23
Market Value of trust fund ( finatiq ) = $58,289.43

m.v. of equity continues to drop as the whole month remains weak, in line with the drop in Dow Jones. I hope that the market will rally in the year end with the festive season now here. However, I believe the market will continue to remain reactive to any bad news from the credit crunch in US. ( this might come in the early of year 2008 )

Home - S&CC for nov

Today I went to Ang Mo Kio-Yio Chu Kang Town Council to pay for my S&CC.

Amount paid for Nov = $37.50
( w/0 rebates = $55.00 )

Payment can be made by :
1. Cheque Deposit,
2. Cash over counter ( need booklet ),
3. GIRO service ( need to apply ),
4. AXS/S.A.M stations.

Payment can be made on any day from 1st to the last day of the month.

Purchase of SGS T-Bills ( TB-071206-0003 )

My third purchase of SGS T-Bills

The bid done for today is for the auction next week :
Issue Code - BQ07148Z
Issue Date - 06 Dec 2007
Tenor - 91 days
Maturity Date - 06 March 2008

a 10% downpayment was made ( = $100.00 ) which will be refunded when the transaction is performed next week.

I made a bid of S$1000.00
Have to check next week for the yield.

yield = 2.19%
total paid = $994.54
gain = $5.46

Baby's First Month Gift Set

Today, I received a gift from a colleague with regards to her baby first month celebration. It is a nice gift set from "sweet surprises".

Home - Fridge

Today, my fridge was delivered. ( 271107 )

Fisher & Paykel
E521T ( sandstone )
$1210 from BKC

5 yrs warranty
Fisher & Paykel (Singapore) Pte Ltd
Service Department : 6741-0777

Photograpy - how to reduce size of image

Reduction is needed as the pictures were taken at highest resolution.

No cropping or other forms of addictives were performed on the images
before the reduction. I need to reduce the file sizes as i need to send them over internet.

The following links provide guide to how to reduce size of image.
1. Design boom.
2. Graphicssoft.

NCC - service for the month Dec

09/12 - Cam 2, 3rdsession
23/12 - Cam 1, SIS
30/12 - Cam 2, 4th session

12/12 - P n W for servers, 1930 hrs ( wed ).

Financial Terms - Nil-Paid Rights

What does it means....
Security that are tradeable but originally posed no cost to the seller. For example, a renounceable right being sold by the original owner to another investor is considered nil-paid. A right is an opportunity to purchase more shares, usually at discount, given to shareholders by a corporation. The shareholders receive these rights at no cost, and if the rights are renounceable, the shareholders can choose to sell them on the market.

Investopedia says...
Though the word "nil-paid" may suggest that nil-paid rights give shareholders the right to acquire new shares for no cost, this is not the case. Nil-paid rights are only the right to acquire more shares at the current share price or a discount. The corporation issuing the rights to its shareholders does not receive payment for the rights, but if the shareholders decide to exercise the rights, they must pay for the securities they are given the right to buy.

Details found here.

Photography - Flash Diffuser

Yesterday I bought a Sto-Fen Omni Bounce for my Canon 430EX flash unit.

Sto-Fen products can be found here. It costs me $30, which I bought from John3:16.
See how it works here.

Purchase of SGS T-Bills ( TB-071129-0002 )

My second purchase of SGS T-Bills.
( my naming convention :
TB - treasury bill
yymmdd - year, month, date
xxxx - running serial no. )

The bid done for today is for the auction next week :
Issue Code - BQ07147F
Issue Date - 29 Nov 2007
Tenor - 91 days
Maturity Date - 28 February 2008
a 10% downpayment was made ( = $100.00 ) which will be refunded when the transaction is performed next week.

I made a bid of S$1000.00
Have to check next week for the yield.

yield = 2.32%
total paid = $994.22
gain = $5.78

Home - Property Tax

I submitted a GIRO form to IRAS for my property tax. According, I supposed to pay 4% of $4680 ( value of house ) = $194. There is a permanent rebate of $150 for 3-room flat. Furthermore, there is a rebate for the GST increase. So I might not have to pay any property tax for these coming 2 years.

Got to wait for official letter from IRAS to confirm this.

Home - Service and Conservancy Charges ( S&CC )

I received a letter from Ministry of National Development on Service and Conservancy Charges ( S&CC ) dated 05/11/07.

It states that i will get S&CC rebates and will not be paying S&CC charges from dec 2007 till march 2008.

Financial Terms - Underwriting

What does it means...
1. The process by which investment bankers raise investment capital from investors on behalf of corporations and governments that are issuing securities (both equity and debt).

2. The process of issuing insurance policies.

Investopedia says...
The word "underwriter" is said to have come from the practice of having each risk-taker write his or her name under the total amount of risk that he or she was willing to accept at a specified premium. In a way, this is still true today, as new issues are usually brought to market by an underwriting syndicate in which each firm takes the responsibility (and risk) of selling its specific allotment.

Details found here.

Rights which are underwritten would means that the underwriting company will take up the remaining unsubscribed rights.

Home - TV licence

Today I paid for my TV licence at a Post Office. TV licence is under IRAS. I paid a sum of $12.54 for today to the end of the year.

The TV licence is an annual subsciption of $110. Therefore my next bill will be for the year of 2008.

Payment can be done at AXS station.

Financial Terms - Renouncable Rights

What does it means...
An offer issued by a corporation to shareholders to purchase more shares of the corporation's stock (usually at a discount). Renounceable rights have a value and can be traded.

Investopedia says...
Stockholders that have received renounceable rights have three choices of what to do with the rights. They can act on the rights and buy more shares as per the particulars of the rights issue; they can sell them on the market; or they can pass on taking advantage of their rights.

Details found here.

Non-Renouncable Rights
What does it means...
An offer issued by a corporation to shareholders to purchase more shares of the corporation (usually at a discount). Unlike a renounceable right, a non-renounceable right is not transferable, and therefore cannot be bought or sold.

Investopedia says...
Issuing more shares dilutes the value of outstanding stock. But because the rights issue allows the existing shareholders to buy the newly issued stock at a discount, they are compensated for the impending share dilution - the compensation the rights issue gives them is equivalent to the cost of share dilution. However, shareholders who do not take exercise the rights by buying the discounted stock will lose money as their existing holdings will suffer from the dilution.

Details found here.

Underwriting for that rights would means that if the rights are not fully total up, the underwriting company will fulfill the quota.

Impact of Currency - sgfunds

By meatball ( 18 nov 2007 )

1) Trade Balance of Payments.
When the country export more than it import, its currency is expected to rise. As the influx of funds back into the country increases, where the currencies is converted back to local currencies causing a increase in demand for the currency. For example, ppl buy ur goods, they will buy SGD to buy your goods and services etc...

2) Monetary Policy (Eg. Interest Rate)
When the country's interest rate increases, the currency will strengthen. Ppl may save more money, increasing the reserves and less outflow of funds resulted. Inflow of funds increases as foreigners may put money into your country as deposit or buy your currency for Fixed Deposit (in ur or their countries), Bills, Bonds etc. Eg. the carry trades which involves ppl especially big institutions borrowing low interest rate JPY and puting them in the high yielding AUD or NZD etc.

3) Fiscal Policy
Fiscal policy affects the economy and will indirectly affects the trade flows and Balance of Payments especially for Singapore where we import most or all of our resources.

There are some other areas I missed out, this are some of the main pts.

Details found here.

Vibropower - Rights on 6 nov 2007

Renounceable non-underwritten rights issue of up to 251,745,494 new shares at an issue price of $0.005 for each rights share, on the basis of two(2) rights shares for every one existing share in the company held on 6 nov 2007.

Expected Timetable of key events :
Book Closure Date - 6 nov 2007
Despatch of the OIS, ARE and PAL - 12 nov 2007
Commencement of trading of "nil-pad" rights - 12 nov 2007
Last date and time for splitting - 20 nov 2007
Last day for rading of "nil-pad" rights - 20 nov 2007
Last date and time for acceptance of and payment for Rights shares - 26 nov 2007
Last date and time for renunciation of and payment for Rights shares - 26 nov 2007
Last date and time for application and payment for excess Rights shares - 26 nov 2007
Expected date for issuance of Rights shares - 4 dec 2007
Expected date for commencement of trading of Rights shares - 5 dec 2007

Application :
On 16 nov 2007
Applied 4000 shares of rights = $20
Applied 4000 shares of excess rights = $20

Results :

A sum of $10 was returned to me. This means I was successful in getting
rights = 4000
excess rights = 2000

a total of 6000 shares at a price of $30.00

1st purchase of SGS T-bill

Today I bought my first SGS T-bill at an UOB Bank branch office. It took about an hour to settle everything as I had to open a new trading account for the transaction.

The bid done for today is for the auction next week :
Issue Code - BQ07146E
Issue Date - 22 Nov 2007
Tenor - 91 days
Maturity Date - 21 February 2008
a 10% downpayment was made ( = $100.00 ) which will be refunded when the transaction is performed next week.

I made a bid of S$1000.00
Have to check next week for the yield.

yield = 2.34%
total paid = $994.17
gain = $5.83

If one is buying T-bills in the auction, the purchase is always one week earlier. So today's purchase is for next week's auction. Since it is one week earlier, one can actually register the bid anytime before Friday. But as the bank only knows the issue code on Friday, it is best to register the bid on Friday itself, during office hours ( 0930 - 1600 hrs ).

Financial terms - Treasury Bill

What does it means...
A short-term debt obligation backed by the U.S. government with a maturity of less than one year. T-bills are sold in denominations of $1,000 up to a maximum purchase of $5 million and commonly have maturities of one month (four weeks), three months (13 weeks) or six months (26 weeks).T-bills are issued through a competitive bidding process at a discount from par, which means that rather than paying fixed interest payments like conventional bonds, the appreciation of the bond provides the return to the holder.

Investopedia says...
For example, let's say you buy a 13-week T-bill priced at $9,800. Essentially, the U.S. government (and its nearly bulletproof credit rating) writes you an IOU for $10,000 that it agrees to pay back in three months. You will not receive regular payments as you would with a coupon bond, for example. Instead, the appreciation - and, therefore, the value to you - comes from the difference between the discounted value you originally paid and the amount you receive back ($10,000). In this case, the T-bill pays a 2.04% interest rate ($200/$9,800 = 2.04%) over a three-month period.

Details found here.

What is the difference between bills, notes and bonds?

Equity-Treasury Bills

Yesterday, I dropped by the UOB branch at Novena Square. They allow buying of SGS T-bills ( 3 months ).

Things needed for 1st purchase :
1. I.C.
2. UOB bank book.

When to purchase :
1. Every Friday morning every week.

What is to be done on each appointment
1. Open trading account ( 1st time )
2. State amount to purchase ( min $1000 )
3. Quote issue number ( available on SGS website )
4. 10% downpayment, refundable upon purchase of T-bills.

After this, one can buy from any UOB branch.

Current rate = 2.4% p.a. ( 5 nov 2007 )
( for 3 months T-bills, return is ~ 2.4% divide by 4 )

One can purchase T-bills if one have POEMS account. Bank is doing it as a free service while buying from POEMS, there is a small charge as they make buy it over secondary market.

Home - Singtel bills

I took over the ownership of my residential fixed line.
However on 08 Nov 2007, i received a email from vpost regarding my singtel bill for the month of Nov 2007. The sum is $43.78.

I was told that Singtel is automatically linked to vpost, that explains why I am getting a reminder from them. Checked with Singtel Hello store, they said that I should checked with vpost if I want a hardcopy. So I called vpost @ 1605, and have them set my account such that I will get a hardcopy of my Singtel bill.

I also send vpost a email on how I can make the setting myself.
( vpost responded, nothing new )

Singtel bill can be paid through AXS station.

Photography - Tripod

On 08 November 2007, I bought a tripod to top-up my accessories for my camera. I bought Monfrotto 190XPROB costing in total $328.00

It consists of
- tripod ( $185 )
- tripod head, ball socket ( $105 )
- strap ( $38 )

Photography - Flash

In october 20007, I bought an external flash for my Canon 400D. The model is Canon Speedlite 430 EX, which costs $465. I bought it @ john 3:16 in Funan Centre.

Financial terms - acquisition

What it means...
When one company purchases a majority interest in the acquired.

Investopedia says...
Acquisitions can be either friendly or unfriendly. Friendly acquisitions occur when the target firm agrees to be acquired; unfriendly acquisitions don't have the same agreement from the target firm.

Details found here.

Mergers and Acquisition: Introduction.

Private equity here.

RaboJet Certs - Series 5 - updates

Based on the updates here. My return is as follows :

Total number of scheduled trading days duinrg the life of the Certificates = 250
Number of scheduled trading days elasped since Launch Date 28 Aug 2007 = 39
Number of scheduled trading days elasped since Purchase Date 5 Sept 2007 = 35
Number of scheduled trading days to date when Lock In Amount Accumulated = 35
Lock in Amount acumulated to date ( per Board Lot of 1,000 Certificates = SGD $28.0 ( $0.8/day)
Profit = $28.0 - $43.43= -$ 15.43

Next observation date = 28 Nov 2007.

Financial terms - amortization

What it means...
1. The paying off of debt in regular installments over a period of time.
2. The deduction of capital expenses over a specific period of time (usually over the asset's life). More specifically, this method measures the consumption of the value of intangible assets, such as a patent or a copyright.

Investopedia says...
Suppose XYZ Biotech spent $30 million dollars on a piece of medical equipment and that the patent on the equipment lasts 15 years, this would mean that $2 million would be recorded each year as an amortization expense.While amortization and depreciation are often used interchangeably, technically this is an incorrect practice because amortization refers to intangible assets and depreciation refers to tangible assets.

Details here.

What is the difference between amortization and depreciation?

Amortization usually refers to spreading an intangible asset's cost over that asset's useful life. For example, a patent on a piece of medical equipment usually has a life of 17 years. The cost involved with creating the medical equipment is spread out over the life of the patent, with each portion being recorded as an expense on the company's income statement.

Depreciation, on the other hand, refers to prorating a tangible asset's cost over that asset's life. For example, an office building can be used for a number of years before it becomes run down and is sold. The cost of the building is spread out over the predicted life of the building, with a portion of the cost being expensed each accounting year.

Depletion refers to the allocation of the cost of natural resources over time. For example, an oil well has a finite life before all of the oil is pumped out. Therefore, the oil well's setup costs are spread out over the predicted life of the oil well.

Oilpods Investment

I received my 3rd monthly income from my ownership of the Brookshire Salt Dome project= $108.84

Brookshire Salt Dome project monthly income breakdown
Aug 07 = $114.49
Sept 07=$110.89
Oct 07 = $108.84

Total Sum to date = $334.22

photography - candid camera

The following points were taken from an article titled "Candid Camera - How to use a candid aesthetic in Photography" from Asian Photography Magazine dated september 2007.

Financial terms - impairment

Impairment
What it means...
1. A reduction in a company's stated capital.
2. The total capital that is less than the par value of the company's capital stock.

Investopedia says...
1. This is usually reduced because of poorly estimated losses or gains.
2. Impairment can be used in many contexts. Whatever the situation, impairment is bad for the company.

Details here.


Impaired Asset
What it means...
A company's asset that is worth less on the market than the value listed on the company's balance sheet. This will result in a write-down of that same asset account to the stated market price. Accounts that are likely to be written down are the company's goodwill, accounts receivable and long-term assets.

Investopedia says...
If the sum of all estimated future cash flows is less than the carrying value of the asset, then the asset would be considered impaired and would have to be written down to its fair value. Once an asset is written down, it may only be written back up under very few circumstances. Firm's carrying goodwill on their books are required to make tests of impairment annually. Any impairments found will then be expensed on the company's income statement.

Details here.

Impairment Charges: The Good, The Bad and The Ugly

Portfolio Update - October 2007

Top Ten Holdings ( by market value )

1. ST Engineering
2. Noble Grp
3. SIA
4. UOB
5. Swiber
6. SingTel
7. OCBC
8. Comfort Delgro
9. Allgreen
10. Semb. Marine

Dividend for the month of September = $20.50

From 05-10 year2007 ( over 6 months ), my total dividend is $13,479.49

Market Value of equity = $435,378.77
Market Value of trust fund ( fundsupermart ) = $75,944.26
Market Value of trust fund ( finatiq) = $61,488.60

m.v. of equity actually drops slightly from last month.

NCC - service for the month Nov

11/11 - Cam 2, 2nd session
18/11 - Cam 2, 3rd session
25/11 - Cam 2, 3rd session

Home - Bills

Bills to settle :

- consvervancy charge
Took a GIRO form from them. Need to submit back to them at AMK Town Council at Blk 342, AMK Ave. 1

Consvervancy charge for the month is billed at the 3rd week of the month. It can be paid at AXS stations.

- utilities bill
by SP services. The bill dated 20 oct 2007 was $70.36 ( deposit )
Called them at 1800-222-2333 to request for a GIRO form.

Photography - Flash

For my Canon 400D camera,
it is recommended to use Canon SpeedlLite External Flash

Canon Speedlite Flash
- review from amazon
- review from photonotes
- review from cnet
- review from photography on the net forum
- review from digital picture

HDB resale - second appointment

The second appointment was held on 16 October 2007, 3.30pm.

Was handed the Resale document stated that i will be the sole owner with effect from 1/11/07. The title deed is held by HDB. Need to call them if i need the actual copy.

On the same day, the following transactions were also done
- purchased fire insurance, AIA at a cost of $6.30
- opened an account with SP services ( need to go pay from nov onwards )
- transferred residential telephone account
- keys were handed over.

Home - Fridge

This site give a good list of the available fridge model with energy label rating, here.
This powerpoint slide explains the green tick rating, here.

The more ticks that one appliance has, the better. For fridge, the max is 3.

Recommended brands - panasonic, mitsubitshi, fisher & paykel.

Recommended retail
- Ban Kim Chuan
- Goh Ah Bee
- Hong Liang Electrical Enterprise

Globtech fridge FAQ
Sandstone = cream color

Fisher n Paykel

Photography - Camera Spec

My Canon 400D camera specification

EOS 400D Body /
Kit II (with EF-S 17-85mm f/4-5.6 IS USM lens). Canon camera spec here.

EOS - electro-optical system
EF - electrofocus
IS - image stabilization
USM - ultrasonic motor system ( USM definition )

Kit II lens spec here.

Good beginning article on Canon EOS cameras.

Oilpods Investment

I received my 2nd monthly income from my ownership of the Brookshire Salt Dome project
= $110.89

Brookshire Salt Dome project monthly income breakdown
Aug 07 = $114.49
Sept 07=$110.89

Total Sum to date = $225.38

RaboJet Certs - Series 5 - updates

Bought 1 lot on 5 sept 2007.

Based on the updates here. My return is as follows

Total number of scheduled trading days duinrg the life of the Certificates = 250
Number of scheduled trading days elasped since Launch Date 28 Aug 2007 = 21
Number of scheduled trading days elasped since Purchase Date 5 Sept 2007 = 17
Number of scheduled trading days to date when Lock In Amount Accumulated = 17
Lock in Amount acumulated to date ( per Board Lot of 1,000 Certificates = SGD $13.6

Profit = $13.6 - $43.43
= -$ 29.83

Next observation date = 28 Nov 2007.

NCC - service for month Oct

07/10 - Cam 4, 3rd session
14/10 - Cam 2, 4th session
28/10 - Cam 2, 2nd session

Portfolio Update - September 2007

Top Ten Holdings ( by market value )

1. ST Engineering
2. Noble Grp
3. UOB
4. SIA
5. Swiber
6. SingTel
7. OCBC
8. Comfort Delgro
9. Allgreen
10. Semb. Marine

Noble shot up 2 places becos of a sharp increase in price. SIA has a capital reduction exercise, so reducing my share in it. A surge in price for Singtel, also see it climbs up slightly. Banks are hard hit this month by the sub prime issues in US. Allco REIT has remained undervalued and it drops out of my top ten.

Dividend for the month of September = $2,298.34

change in Equity m.v. = $39,372.13
change in Equity profit = $34,020.63

Pleasantly surprised that i got another $2k+ dividend payout month.
From 05-09 year2007 ( over 5 months ), my total is $13,478.99

When my oilpods preproduction payment starts, i will have another $2000 per annum of income.

This dividend forms my passive income.

Investopedia - learning

Tutorial - Beginners
Basic Fundamentals
1. Investing 101
2. Stock Basics
3. Bond n Debt Basics
4. Mutual Fund Basics
5. Retirement Planning
6. Economics Basics

Now that you have started
1. 20 Investments You Should Know
2. Brokers and Online Trading Basics
3. Online Investment Scams
4. Learn About the P/E Ratio
5. Index Investing
6. Reading Financial Tables
7. IPO Basics
8. World's Greatest Investors.

Oilpods - Biamante

On 21/09/07, I purchased 1 unit of Biamante project ( location in Goliad county ) from OilPods.Com
Contract was signed on 22/09/07
Cost = US$5,000 ( S$7586.50 )

( 1 unit = 0.0476% of 19% of the WI in the subject property
which is a proportionate 0.009048% of 100% of the WI in Biamante project )

See contract ( subscription and appointment agreement ) point 3 and 4 for details on the scheduled payout.

The rationale for continuing to invest in this oilpods is because i want to generate other form of incoming cash flow and also as a form of diversification from equities/stocks.

This unit and the previous 2 units would generate an incoming cash flow of about $2000 per annum for me, when both starts pre-production payments.

I could have used the money to buy into dividend yield stocks to generate similar and slightly lower yield, but i feel that i should not focus on keeping everything in equities. Also oilpods has a possibly of giving better than 12% per annum in the residual stage.

Company's Past Dividend

To check a company's past dividends

1. goto SGX url.
2. select "Corporate Info" on the left.
3. select "Corporate Distribution" on the top right under "view results by"
4. select the company under the the alphabetical order.
5. the display will show the dividends, rights etc.

Oilpods investment - Brookshire Salt Dome

On 28/03/07, I purchased 2 units of Brookshire Salt Dome project from OilPods.Com
Contract was signed on 30/03/07
Cost = US$10,000 ( S$15,210 )

The idea behind OilPods investment is broken down into 3 stages
1. Development Phase ( 1-2 years )
9% p.a. ( monthly income )

2. Breakeven Period Phase ( 1.5 - 3 years )
Steady stream of monthly income to recover capital

3. Residual Returns Phase ( 10-20 years )
9-12% p.a. ( monthly income )

My share of the project is
Brookshire Salt Dome Lease, Waller County, Texas, USA.

I received my first monthly income on 7 sept 2007
= $114.49

I received my title deeds from my agent on 13 sept 2007
( ~ 6 months from contract )

Oilpods.Com is the marketing agent of Powder River Basin Gas Corp in Singapore. PRBS is a revenue generating producer, acquirer, and marketer of crude oil and natural gas properties. It has interests in Texas, Oklahoma, Louisiana, New Mexico, Mississippi and Wyoming.

Oilpods
Powder River Basin Gas Corp

HDB resale - first appointment

On leave today for HDB resale first appointment at 0900 at Toa Payoh HDB Hub.

total paid in addition to the selling price of $218,000.
Stamp fee = $2,570.00
Conveyancing fee = $247.15
Convey n Conveat fees = $69.80

2nd appointment in between 16 to end Oct 2007

Things to settle at 2nd appointment
- transfer of electrictiy, water etc. ;
- keys;
- purchase of fire protection plan.
( stainless steel window grilles )

RaboJet Certs - Series 5

Launching date = 28 Aug 2007
Listing date = 5 Sep 2007

Daily lock-in starts on the next day after the launch date ( i.e. 29 Aug 2007 )

Information on RaboJet Certificates - Series 5 can be found here.

For launch prices and daily status, the information can be found here.

I bought 1 lot of $1000 on its listing date 5 sep 2007.
cost = $1043.43
( bought through my remiscier )

Wanted to experiment with RoboJet Certs, so bought 1 lot for testing.
If i were to bought it before its launch, it would be $1000. As I bought it on listing date, there is the cost of brokerage.

Technical Analysis - Catalog

Technical Analysis
1. Globevestor



Tools

Portfolio Update - august 2007

Top Ten Holdings ( by market value )

1. ST Engineering
2. SIA
3. UOB
4. Noble Grp
5. OCBC
6. Swiber
7. Singtel
8.Comfort Delgro
9. Allgreen
10. Allco REIT

Dividend for the month of August = $2,314.14
Dividend for the month of July = $5.00
Dividend for the month of June = $329.64
Dividend for the month of May = $8,531.87

Profit change from last month = $0
( since this is my first month of record )


Currently I am holding on to too many junk stocks to my own liking. I have learnt much ( still much more to learn ) from many goodwill people from sgfunds about value investing. I intend to move forward in that direction. In the month of august, with the big correction from the sub-prime mortgage issue, my portfolio's profits at one point in time dropped by 40%. It was hard to stomach, but it also make me understand the value of value investment.

Photography - Tutorial

1. DC photography tutorials

Photography - Filters

1. eBay Guides - Camera Filters Buying Guide
2. Digital SLR Guide - Filter *

Photography Catalog

- My equipment
- Tutorial
- Filters
- Flash
- Misc

Warrants

Like an option, a warrant is a security that gives its holder the right to buy or sell a given quantity of an underlying asset at a pre-determined price, on or before an agreed expiry date. This means a warrant becomes worthless after its expiry date. The SGX has two types of listed warrants - traditional corporate warrants which have been around for many years, and the new structured warrants. While both these warrants may appear similar, many investors do not realise there are a number of major differences that affect their liquidity and market value.

As its name suggests, a corporate warrant is issued by a listed company, which makes use of its own shares as the underlying asset. Often, it is a sweetener during a fund raising exercise to entice shareholders to subscribe for a rights issue or bond issue. Corporate warrants typically have a lifespan of between three to five years. They can be exercised at any time before the expiry date into new shares, which will be issued and delivered by the company. While this helps bring additional funds into the company's coffers, the new shares created will cause earnings dilution for existing shareholders. A key distinction between a corporate warrant and a structured warrant is that the latter is issued by a third party, usually a bank or financial institution, on the existing shares of an unrelated company. As new shares are not created when these warrants are exercised, the company's shareholders will not have to be concerned with earnings dilution. Structured warrants also have a shorter lifespan, typically expiring within a period of two years.

Moreover, a company can only issue call warrants, meaning that holders can only exercise the right to buy the underlying shares. In contrast, a structured warrant can only be issued as either a call or put warrant. This is an important difference. As put warrants give holders the right to sell the underlying shares, there is flexibiliy for investors to take a trading position if they expect the share price to decline. In addition, put warrants also create opportunities for a wider range of hedging strategies, which we will discuss in more detail in future. As corporate warrants are usually issued to the company's shareholders during a fund raising exercise, they tend to be owned mainly by individuals and institutions. Due to their minimal cost, these warrants are usually tightly held which means there is restricted trading liquidity.

Structured warrants, on the other hand, are more market-driven products. To ensure a warrant is well traded when it is listed, the issuing institution has to tailor it to appeal to the needs of savvy private investors. The institution also has an oblighation to act as a market maker, which means it has to provide competitive bid and ask prices for the warrant. The ease of buying and selling structured warrants has made it an attractive choice for investors, as compared to corporate warrants. While this ready source of liquidity has been a big draw for the structured warrants market, another major reason for its success is the leverage these instrumnets provice investors to profit from movements in the underlying stock.

Source : Pulses, Aug 2007

Certificates

What are certificates and what types of certificates are available on the SGX?

Certificates are issuer-led structured financial products that offer investment opportunities based on different market themes and expectations.

Before investing in certificates, it is important that you read and understan the nature and risks of such instruments. You should carefully consider whether such trading is suitable for you in the light of your financial objective and situation.

Types of Certificates

a. Participation Certificates

Participation Certificates are essentially zero strike warrants. With an exercise of ( close to ) zero, such certificates will track the performance of the underlying asset(s) such as single stocks, stock indices and thematic indices etc. with no leverage or a gearing ration of one.

Investors buying a participation certificate will have synthetic ownershp of the underlying shares without the entitilement of dividends and will effectively replicate the performance of the underlying. Upon maturity, cash settlement will be executed and the certificate will be redeemed for cash at market value on the valuation date.

b. Discount Certificates

Discount Certificates, also known as a call spread warrant, are financial instrunments that allows an investor to buy into the performance of an underlying asset at a discount to its actual price. The potential gain to the investor is limited to a maximum amount from the onset (cap). This cap is fixed when the instrumnet is issued and remains constant for the entire lifetime of the instrument.

c. Daily Lock-in Certficates

Daily Lock-In Certificates are structured products with a daily accrual feature where the investor accumulates a lock-in amount throughout the life of the certificate if the underlying shares or indices perform in a certain way ( for example, the underlying price does not fall below 88% or above 95% of the intial price level). These products may have specific feature which investors should also consider, for example a knock out feature where the certificate will be subject to early termination and settlement.

Interpreting the Trading Name of Certificates

As Certificates are products customized by the respecitive issuers, the trading name of Certiificates will start with the issuer code followed by the product information. In general, the features below willl be reflected in the trading name.

1. Issuer
AA ABN AMRO Bank
DB Deutsche Bank
RB Rabobank

2. Product Type
ZPC Participation Certificates
DC Discount Certificates
DLC Daily Lock-In Certificates

3. Underlying Instrument
This information may not be indicated depending on the product structure.

4. Special Features ( if any )
. Products that are exotic
K Procducts with a knock-out feature

5. Expiry Date
The expiration date is represented in this format, yy mm dd.

Source : Pulses, july 2007

NCC - service for month Sept

02/09 - Cam 1, 4th session
09/09 - Cam 1, 3rd session
16/09 - Cam 2 training, 2nd session
22/09 - Cam 5, SIS, sat
27/09 - Cam 4, thurs
30/09 - Cam 2 training, 2nd session

Makan catalog

1. Help With Cooking



1. Makansutra raw

Birth of My Blog

7th August 2007.
This day is the birth of my Blog.

HDB - catalog

1. Resale Transaction
2. Home
3. Bills

Football - catalog

1. Liverpool - misc
2. Misc

Equity - Catalog

General

Rights Issue

Treasury-bills
Fixed Deposit

Dividends

Warrants

Certfiicate

Investopdeia- Learning
Currency

Financial Terms
Finance Learning


1. Scorebot Pte Ltd - Internet cafe plus trading environment .
2. Retirement cost - Prudential website on working out cost of retirement.
3. Enzios -

Badminton - archive

Laws of Badminton
1. Wikipedia to badminton
2. BBC law of badminton - old 15 points system
3. International Laws of Badminton - rally system
4. IBF new rally system

Score sheet
1. Umpire score sheet - revised 2005
2. Umpire score sheet - revised dec 2005
3. Downloadable score sheet
4. Sample score sheet from NZ

IT matters

1. IT tools
2. IT toys
3. general

Investment Gurus' Blogs - others

Active
ghchua
Tan Kin Lian blog ( ex CEO NTUC )
willow tree
Shares owl Shares Investment
Kenny
fivecentstencents
Elfinchilde.blogspot.com
singaporeinvestor

Inactive
Kleer
berkshire
TYL


Fixed Desposit
askchrishow
alanto72
derek
drizzt
kelongstocks
Doc Money (7 august 2007)
Dennis Ng ( Leverage Holdings Pte Ltd )
Dr roubini ( Dr Doom )