Win A Trip To Australia

What a coincidence! Just after posting my previous entry about Australia, New South Wales. I happen to see this lucky draw contest to win a trip there.

Here is the link:
Win a 4D3N Free & Easy Package to Sydney, New South Wales!

No harm participating in this contest since it takes only less than a minute to fill up my details

Hope I can win :) Hehe! Then it will be my chance to go this time.

Best of luck to any one participating too!

Cheers!

Little Boy

Australia (Cultural & Monetary Value)

My parents just got back from Australia, New South Wales not too long ago. Great that they are enjoying their golden years and traveling around the world together. They had quite a handful of oversea trips after their retirement already.

Both of them shared with me their stories about their recent Australia trip. It is fascinating to hear about the cultural differences between Singapore and other nations.

Here are some interesting findings my parents encounter.

1) People
The Australians are very warm-hearted and courteous people. They will greet strangers on the street with a smile lit on their faces; "Good Day Mate". They are very munificent and helpful citizens too. For instance, my uncle was asking one of a passerby for toilet directions. He was so willing to help to the extent that he literally guide my uncle to the nearest toilet which was quite a distant away. These small little help may not be of a big thing, but it really shows how much their people are willing to go an extra mile to help strangers or even to brighten a person's day.

V.S

It is quite rare Singaporeans do that. I am not trying to say Singaporeans are not polite or generous because they do not greet people. It may be due to our conservative environment that we are brought up in or our shy nature. I believed Singaporeans are equally polite and kind hearted but we express in a different manner. I seen many honest, humble and polite people in Singapore and also a fair share of uncouth Singaporeans. We cannot simply write off Singaporeans as unfriendly people because of these minorities.


2) Transportation
They still rely on train conductors; A little backwards in terms of technology as compared to Singapore where we uses EZ-link card. Their payment system based quite a lot on trust. Their payment for the train goes like this:

Train Conductor steps into the train.
Train Conductor: "Who haven pay your tickets, please raise your hand."

I been to Australia once before too. I remembered that their payment for buses are by cash too. They are more carefree, laid back and "slower in pace". Commuters will line up to make cash payment to the bus driver and change will be given back to you. This process can take up a few minutes before the bus starts proceeding on it's journey.

V.S

In Singapore, we have a vast network of transportation. Most part of SG is convenient and accessible. Apart from our frequent SMRT breakdowns (These few days keep breakdown ARGHHHH!) which results in many angry commuters to curse and swear, our public transportation is rather efficient. At the expense of being much faster in pace, sometimes we do get nasty remarks or signs of impatience when we hold up commuters behind us. You may encounter some "death stare" or people behind you making this "TSKKKK" sound. It gets worse if you hold up the peak hour traffic commuters. End of the day, this question arises in my head, "So does technology actually improves our life?"


3) Shops
In NSW, all or most of their shops close at 5pm. Only on Thursday, some of them are open till 9pm.

V.S

In Singapore, most shops close around 9pm or latest 10pm on a daily basis.  

4) Food
Food wise; minimum cost per casual meal is about 10-15AUD. Usually a rather large portion is served which can be shared by 2 medium eaters. NSW have very little variety of food, most of it are Western Food which are deep fried and oily. Their staple food seems like French Fries. I wonder how they are able to indulge in such unhealthy food everyday.

The most worth meal my parents had was Golden Rooster (KFC-alike). They have the biggest chicken portion ever. Tender, crispy and finger licking good. Unlike SG KFC, our chicken seems to be abused and underweight.

The most ridiculous meal my parents had was at a Chinese Restaurant.
A. Broccoli with prawns (28AUD)
B. Duck slice (36AUD)
C. Noodle using curry powder seasoning (Forgotten)
They mentioned that the Chinese food was terrible. It was some ordinary shop, so standard of food may be explainable. But, the price of the food is sky high. It is literally day light robbery.

5) Car Park Charges
Apparently, New South Wales seems to have higher charges for parking. My initial assumption was that Australia being a country with abundant land and space, parking should be relatively cheap. Did not seems to be in this case; car park fee is particularly expensive. On average, most places charges around 6AUD per hour. Some of their parking system is also a little different whereby some car park only limit a maximum of 0.5/1/2 hours of parking. If you exceed the time, you will get fine. The highest car park fee my parents happen to see was 50AUD per hour. That is one huge burn in the pocket. Interestingly, they also have "ERP" but my parents are not sure how they actually work.

V.S

Singapore have considerably expensive car park charges too. As long you own a car in Singapore, be prepared to spend and do some damages to your wallet. We have both the gantry payment system and our very own coupon parking system. We have our distinctive "summon" aunties too. Their presence always brings panicky and funny sightings. Suddenly, you will be able to see people rushing to the car park. At some locations (Eg. Coffeeshop, Restaurants), they provide "informants" to spot for "summon" aunties. Hahaha. Quite an adorable way Singaporeans work together hand in hand to fend them off. We are indeed uniquely Singapore.


Nutshell

It is always good to understand and learn other country's culture. You never know when you need these knowledge. As for me, I am very curious and inquisitive. I love to find out and hope to sink into other country's unique culture. I find it awe-inspiring. Besides that, each an every nation have their pros and cons. No country is perfect but every country got their own distinctive culture and lifestyle. Some of it will defines us from others and that is what makes it so special. Like every human beings, we have a purpose in life, a talent and that is where we should specialize and strengthen on it. Work on your strength!

Cheers!

Little Boy

Straco : Did Someone Queue to Buy At A Wrong Price Today?

Did somebody queue to buy Straco at a wrong price this morning?

Yesterday closing was 0.595.

Today it open at 0.670 and 2 lots were traded.

I bought 1 lot at 0.580, queue to sell (Limit Order) yesterday at 0.600 and SCB managed to fill my order at 0.670 to match the opening price of today.  I was shocked to see my order filled at 0.670, I thought probably it was some error. Phew, it wasnt.

The spread today is so wide, it drop back to a low of 0.615.

This is more of a speculative trade which I bought, thus only 1 lot. I will consider this a very fortunate trade. And I wouldn't dare to say I am proud winning this trade, it is really fluke.

I used to own this darling stock at 0.300 with quite a big allocation to it. Sold it quite long ago at 0.340, thought it will drop back because of the strong resistance and illiquid nature. I was wrong, it bust through the roof and rocket higher each week. It hurts to see the stock I have faith in the most to rise higher and higher each week. I could be sitting on few thousand dollar profit by now. But ohwell, money earned is better than money lost.

It taught me some very important lesson :

1. To trust my analysis and not my instinct that it will drop back.
2. Let my profit run, don't be too hurry on taking profit.
3. Be patient.
4. Don't let emotions take over you. I was too quick in wanting to cash out too; I was looking in terms of monetary value/profit and not how much the share is worth.

I will cherry pick this share if it ever drop back to a 0.500 or lower. I believe Straco is still a very strong fundamentally sound company with further room to grow. Hmm, probably? They are undergoing a bid for a new project which may be a further catalyst to it. As for their current tourism-related projects such as the underwater world and aquarium, recent and last few earning reports show dramatic rise in tourist inflow, thus the drastic increase in profit. But, one question is how much can they still grow?



To sum up

I hope I will be more wise in riding on my profits next time. Still, a very happy and lucky trade I gained today.

Cheers!
Little Boy

UMS Holdings : Bonus Share 1 to 4 / How Will It Affect?

UMS just announced yesterday that they are proposing to issue out 1 Bonus share for every 4 existing ordinary shares held by shareholders which are subjected to approval.

"The proposed Bonus Shares issue is subject to the in-principal approval of Singapore Exchange Securities Limited (SGX - ST)" - Quoted from the announcement

A quick summary of the important points

1.Based on current issued shares of 343,654,327. Up to 85,938,581 Bonus Shares will be issued out.

2.The Bonus shares will not be issued at any cost and it will rank pari passu with all existing shares.

3."The bonus shares will not be entitled to any dividends, rights, allotments or distributions, the record date of which falls before the date of allotment and issue of such Bonus Shares." (My assumption: Bonus Shares will not be entitled to receive the upcoming dividend of $0.035 dividend)

4. Bonus shares issued to increase share capital base of the company to reflect the growth and expansion of the group's business and to increase trading liquidity and more participations by investors

All these information can be found in full details here : UMS Announcement - Propose Bonus Issue



My Take

Not to worry, bonus shares are deem as a sign that the company is expanding and doing well. It does not dilute the shares because each existing shareholders are getting the bonus shares. It is the increase of share base capital.

For example in UMS Holding's case, If I own 4000 lot. I will be entitled to 1000 lot of bonus share.

Before Bonus shares issued :
(4,000,000 / 343,654,327) x 100% = 1.16%
Means I possess 1.16% ownership of UMS Holdings

After Bonus shares issued:
(5,000,000 / 343,654,327 + 85938581 [Bonus Shares issued] ) x 100% =1.16%
Eventually, I will still end up possessing the same amount of ownership of UMS Holdings

In accounting term, Bonus shares are issued out from either General Reserves or Share Premium of the company (Can be mixture). In General Reserves it is further sub branch out into Retained Profit (Accumulated from the earnings through the years) or Profit for the year.

What effects does Bonus Shares contribute to?

1. Price of shares will reduce accordingly after bonus shares XD.

Eg. Take for example UMS Holdings' case again (If I own 4000 lots of UMS). Let's say UMS Bonus XD on this monday 31/3/2014. Based on last closing price of 0.770, the price will fall accordingly to :

($0.770 x 343,654,327) / (343,654,327 + 85938581 [Bonus Shares Issued] ) = $0.6159

Market Capitalisation remains the same. You can work backwards.

And

You will still have the same amount worth of UMS shares:

4,000,000 x $0.770 = 5,000,000 x $0.6159



2. Net Asset Value and Earnings Per Share will decline due to the increase amount of shares.

Eg. Take for example, UMS issued out Bonus Shares. (Extracting values from the latest report FY2013).

NAV
Current NAV = $0.556

EX-Bonus NAV
= (0.556 x 343,754,327) / (343,654,327 + 85938581 [Bonus Shares issued])= $0.445

EPS
Current EPS = 8.40 Cents

EX-Bonus EPS
= (0.0840 x 343,754,327) / (343,654,327 + 85938581 [Bonus Shares issued]) = 6.72 Cents

Importantly, do take note that there may be a drop in NAV and EPS in following reports of UMS after issuing of Bonus Shares. It will be unkind and injustice to judge UMS performance base on the drop of EPS and NAV, we have to take into account the drop in EPS and NAV due to bonus share issued. The greatest/best case scenerio ever, If UMS maintain a EPS of 8.40 cents in following FY, which translate to a net income increase of ($0.084-0.0672) x 429592908 = $7.2m . I can only dream. But of cause, dreams do exists and it may be possible.

Do take note too that, if profit does not increase, dividend yield will be affected too.

Why do companies issue bonus shares?

1. Increase liquidity for more trading activity because there is an increase of share base and the reduced or cheaper stock price may be more affordable for many other investors.

2. Reward shareholders in the form of shares instead of cash

3. To show that the company is looking forward to expand. Like I said, increase in Bonus Shares will lead to decrease in NAV, EPS and even Dividend yield. So if a company is proposing to issue Bonus shares, it goes to indicate that they are able to handle the bigger share capital base and provide more economical benefits in the future.



Cheers!
Little Boy

Retirement : Enjoying the fruits of your labour

Just thought of sharing this story and a little about my background since most people in this financial community are discussing about retirement. From Investopedia, definition of retirement means it is the period when a person chooses to leave the workforce. My definition of retirement is a very big word and a whole new and different step in life. It is the point of enjoying your life forever and ever without financial worries. It is probably the last phase of your life, a carefree one with the least stress ever throughout your existence.

Other than being a child with no worries or stress. I guess the next best phase will be retirement.

Examples of  the worries you have in your phases of life
Teen:  school, homework, studies, getting A's
Young adult:  financial, work, studies, building up a career.
Mid age adult: housing, loans, spouse, marriage, financial.
Adult with kids: children, financial, building a family.

I'm not too sure what worries do retiree have as I have yet to reach that stage. One day, if blogs still exist and I have retired, I will share and note it here :) But right now, from what I observe from my parents, they are really living the life.

Both of my parents have retired for quite some time already. My father about 5-6 years while my mother join in the "retirement" club about 1-2 years later. I would consider us as an average or above average earning income family. My dad was a civil servant serving the nation for 37 years which was his first and very last job. My mother hop around a few jobs, got retrenched once during the SARS period if I recall correctly. Fortunately, my father had an iron rice bowl. Both of them balance their work and family commitment very well, providing ample family bonding time together. We never lack of food, have a roof over our heads and basic necessities are not a problem. I am very privileged to grow up in this family and fortunate to be living in such state. I wouldn't dare ask for more and I am very contented with what I have now.

Now, both of my parents are enjoying their golden years and fruits of labour. I guess they do not have anymore financial worries and stresses because both of my sisters are financially independent already. I am very happy and glad for my parents, they really deserved this life. Having seen them relax and take their time to do whatever they like really makes me envious. There was once my father spent a few weeks flying his kite that he made which reminisce his youth days. He always proclaims to us that during his younger days he was the best kite flyer and he was able to cut down many other kite flyers who competed with him. He always shares with me lots of his real life stories that brings plenty of moral values to it. I roughly can recite a few of his stories because he do repeat them at times. Hahaha. Maybe I should dedicate a blog post to him some day.

Here is another short write up about SGYI's family background. I sincerely respect him for not being afraid to share his background. I sympathize for him because his background is not as fortunate and privileged as mine. But it is great to hear that he is doing very well now, with a positive mindset and a goal in mind.
A little story on SGYI's family background


To end it off
Retirement all depends on personal preference. It is not a rat race whereby whoever retires first is the winner. One can choose to retire at any age as long as you know whether you are capable of doing so. Some people choose not to retire because they rather kill their time at work or they simply love their job too much. Ultimately, one must not forget to enjoy life even if you are retired or working. As long as you are living and breathing, we should lead a happy and go lucky life. Bring a smile along where ever you go. It will not only lighten your mood and brighten your day, it also helps to cheer up the environment around you :)

#YOLO

Cheers!
Little Boy