Friday, 28 February 2014

UMS Holdings

UMS Holdings declared 3.5cents dividend.
(2cents ordinary + 1.5cents special dividend)
At current closing price $0.655, this is a yield of  5.34%.
Bringing FY2013 yield close to 10% (6.5cents)

Net profit for FY2013 compared to FY2012 increased significantly by 70% to $28.9m from $16.9m
Net profit for Q42013 compared to Q42013 JUMPED 806% to $10.978m from $1.2m.
Q4 EPS = 3.19 cents
FY2013 EPS = 8.4 cents
Current P/E ratio = 7.80 ($0.655/0.084)

NAV = 55.6cents
P/BV = 1.17 (Slightly premium)
Zero borrowings. Cash balance at $29.2m ($0.085 per share)

Some extracts from report:
"Higher revenue was mainly due to higher semiconductor component and integrated system sales during 4Q2013"

"Revenue in the Semicon segment soared 64% to S$33.2 million in 4Q2013 from S$20.3 million in 4Q2012. Revenue contribution from the CEM decreased by 8% to S$1.3 million in 4Q2013, compared to that of S$1.4 million a year ago"

As we can see and infer, this stellar performance was contributed largely by the semiconductor segment. UMS holdings partnership with Applied Material (AMAT) is shrewd business. 90% of revenue comes for them. Contract between AMAT and UMS expires in about 3 years time. On 26 September 2013, AMAT acquire its rival Tokyo Electron Ltd (TEL). AMAT and TEL are the 2 out of 3 biggest chip equipment firms in the industry. 1st: AMAT, 2nd: ASML, 3rd: TEL. With the merger, AMAT will own about 1/4 of the chip equipment market and 1/3 of front-end wafer fab equipment market

Things to note:
1. UMS over reliance on Applied Material. (But I heard UMS may be venturing into healthcare sector)
2. Semi conductor industry is very cyclical

Technical Analysis:
UMS just broke out of its uptrend line to reach further height. Now at overbought region with doji formed. Watch for next confirmation candle. Btw, I'm rather weak at my TA, so if I'm wrong, please do correct me.

Yet another miss opportunity for me. Had this on my watchlist back in June 2013 at 47cents. Now I can only watch it shoot up. For those who got this at around this price and still holding it. Congrats. Now you are sitting on a 13% yield per annum. That is insane dividend yield. I will definitely consider hopping on if this counter if drops for some apparent reason while fundamental still stays intact.

Little Boy

Wednesday, 26 February 2014

AP Oil (A Quick Insight)

A cash cow company?

NAV = 24.89 cent.
P/BV = 0.90397
At current share price closing today at $0.225, its about 9% below NAV.

Current P/E Ratio = 8.12 [$0.225 / ($4,563,000 / 164,531,172 shares)]

No long term/short term debt and have an cash pile of  $26,211,000.
This translate to about $0.1593 per share of cash.
($26,211,000/164,531,172 shares = $0.1593)
Net increase of $5,768,000 of cash from FY2012 $20,443,000

Dividend announced at $0.005 per share.
This computes to an yield of  2.22% at current share price ($0.005/$0.225 *100%)
Not stunning and not a magnificent dividend yield as compared to other counters out there, but AP Oil has been giving out consistent dividend of $0.005 per share for about 4 years.

Though revenue and net profit drop in FY2013 as compared to FY2012, AP oil is still making consistent profit yoy.

I have been watching this counter since June 2013 priced at around $0.185 but did not jump into it. Back then it was rather illiquid. Volume was very low and at average of less than 100 a day or it doesnt even have any trade. Price movement did not move much only until recently. Seems like momentum is building up.

A cash cow? I am rather more excited to see how the company is going to use the excess cash to  create more future economic benefit. Let's wait and see.



Monday, 17 February 2014

End of CNY And Some Small Thoughts About Investing

          Owww man! Is it me or does it feels like Chinese New Year passed so quickly this year. I haven got enough fun from all the gatherings and all the BanLuck"s". My CNY "investments" this year wasn't pretty good. Initially I won some and eventually lost all and went into further deficit. Ohwell, I guess what goes around comes around, hope all these little down in luck turn for the better and will be a blessing in disguise in future. I hope everyone had a great CNY too. Feel free to share your experience with me :)

          Some lessons learnt from my poor "investments" (Banluck. etc.) are to control my discipline and emotions. I feel this is very applicable to investing because most of us are influenced by our emotions and let our emotions override our decision makings. Especially GREED, this is one classic killer to most investors/traders. Second killer will be FEAR. These two key words are one of the reasons to Buying High and Selling Low. Buying High speculating it will go higher and selling low thinking that it will drop further. For instances, just like in BanLuck, you have this "feeling" that you gonna win it big, so you increase your bet but eventually lost that round. Next, you double up to try to make it up for the lost. Isn't greed and fear in place?

          Human brain also works in a very funny way. We tend to only agree to what we subconsciously have agreed. For example, you have a certain counter in mind which you are going to invest in. People tend to filter out the negatives and choose to agree on the positives things. This runs in the subconscious mind of us. In the end, your conclusion will still to be to invest in that counter given the "additional" positives backings you gathered through reading online, hearsay, or through broker report. I'm sure some of you are guilty of this, I am too. Of cause there is no right and no wrong to it as long as you have done your own due diligence. It is always best to weigh out both the risks and gains to it without any unfairness. A good investor will evaluate both the downside and upside and execute its trade at a margin of safety.

          This quote is especially relevant, ("Fear doesn't exist, except in our minds" - Dale Carnegie) and ("The biggest victory is to conquer yourself"). Our human brain and emotions are the biggest barrier to overcome both in investing and also in reality. If we are able to control and stay discipline in our investments, we will turn out to be better investor than others. 

          Anyway, party mood is all over and it is time for me to go back to reality. Time to start finding my studying boots, get back my motivation and focus on my studies. I have been too distracted by many small things.


Little Boy

Friday, 7 February 2014

Every dollar save is a dollar earn (Part 2)

            From my continuation of Part 1 Every dollar save is a dollar earn. I will share with you my personal experience of saving and I hope you will share my joy in saving too. 

Getting the best out of credit card

Credit card is a double edge sword, it can rip your wealth apart or it can help you save up with the benefits acquire from card privileges. It is a form of advance payment mechanism which provides you “invisible cash” to pay right on the spot. You just have to pay up the accumulated amount you spent monthly on time, if not you will incur late payment charges where penalty are extremely high (Honestly, you don’t want to get fine for that). So remember to always pay on time. Also there will be an annual subscription fee for the card but I guess waiver for the fee is possible. Other than that, I consider credit card to be important, handy, useful and practical in our today’s modern society. With many benefits, privileges (Dining discount, 1 for 1, petrol discount.etc) and cash rebate, it will be an added advantage as compared to those using cash to pay. 

Currently, I possess a few supplementary cards (Under my sister) and credit cards of my own. I prefer to use UOB one card (Supplementary) because of the attractive cash rebate they offer; 3.33% at different cap level ($300, $800, $1500) but must be able to clock ($300, 800, $1500) each month for 3 subsequent months. Sometimes, I do volunteer to pay using this card for meals with my friends so as to accumulate some cash rebate. Other than that, I hardly spend much using this card. The rest of the amount is usually amassed by my sister. 

Another card that I have is Citibank Dividend card (Supplementary). I use it only when there are dining privileges to it or discounts. Besides that, there is free entry to Zouk. So clubbers go grab this card. Hahaha, ohwell but as for me, I hardly ever go there. This card cash rebate is a little low; at 2% on dining, groceries and at pharmacies. As for other spending, it is 0.5% cash rebate, thus I’m not using it so often. 

Thirdly, I also have UOB JCB (Supplementary). The targeting audiences are probably more for the Japanese people or consumers of Japanese brands. This card offers 5% cash rebate to big Japanese brand name such as Uniqlo, Muji, Meidi-ya. Or 3% Cash Rebate at major departmental stores like Tangs, John Little, Isetan and BHG. For other spending, it offers 0.5% cash rebate. Hence, I will only use this card if I ever were to buy any stuffs from these names as above. 

The last 2 cards are my own credit cards which I sign up under POSB, Multitude and GO credit card. Both cards are the most basic cards for POSB and I don’t think there are any criteria to sign that card. Students are welcome too. Cash rebate offer is really peanuts as compared to UOB One card. It offers 0.3% cash rebate for a minimum of $500 spending per quarter. For a student to hit $500 per quarter, it a little difficult and if $500 is really met, you save $1.50. That is really little. I only use this card for Golden Village movie privileges. 

With all these cards in my hand, I get to enjoy some benefits and save some cash. My personal monthly expenditure charge on my cards is usually less than $120. Saving money is also an art, it is definitely not easy to overcome your emotions and stay discipline in saving. There are times when there is an urge to splurge and invest in yourself or “pay yourself first”. After all, it solely depends on moderation.

Sell away your unwanted stuffs

Another way that I save money or gain some cash is by selling away unwanted stuffs. I just feel disturbed to have white elephants around me, I will rather sell them away or if not a choice will give them away.  I do help my sisters sell away some of their lucky draw winnings too. For that, they reward me with some commission. Not bad huh? I will always try to get the best bargain for every deal and will try not to budge my selling price unless necessary. One fantastic deal that I made was my sales of my PS3. I bought it at $300 (2nd-hand) and spent nothing more than that because of its “jailbreak” version. After 2 years, I found that I hardly ever have time to touch my PS3, so I sold it. And guess what, I sold it at $330. Amazing how I manage to earn $30 considering the fact the depreciation value of the PS3 and its age. Some good tips to sell away your barang barang will be website such as Hardwarezone Forum, VR-Zone Forum, Ebay or any other forum. Your unwanted stuff can be sold in these places ranging from clothes, electronics, vouchers, food products or rather anything under the sun.


Please, I’m not an auntie but I feel if you really want to save up and get good deals, Groupon is a place for you. Indeed, they have all kinds of discounts. Ranging from (food, shopping, travelling, leisure etc), you get massive discount or even 1-for-1 deals. It is a smart way of spending less and a miss opportunity to save more. I don’t like the feeling of paying something more when I can get better deals.

Another intelligent way of spending less is to get vouchers such as this book called “The Entertainer” book. Heard before? Hmm, I got it free though, so I’m quite fortunate. This book contains all the 1-for-1 deals and if my family ever going to use them up, we probably can save thousands over dollar. My family made use of it for nearly every special occasion for dining. Imagine a $200 family meal can cost $100? We are paying value money for high-quality food. Awesome deal!

          Now who says saving is all literally about saving your hard earn money? Spending less is also a form of saving money. Every less a dollar spent, is a dollar earned. I will continue part 3 of how to save money. I hope you enjoyed reading and will one day share my joy of saving money too :)

(Disclaimer: I’m not a promoter of these companies; Maybe they should thank me for promoting for them instead. Haha!)

Little Boy