Good bye Mr CMA - tongue in cheek post!

Good bye CMA

Parting is such sweet sorrow! I first got to know Mr CMA in 2010 when he first set foot in the public domain. I bought into his sweet lies and we cemented our relationship when i purchased two lots of Mr CMA immediately once the price fell after IPO. He sounded like he had lots of potential - came from a good background, headed into the Chinese market, dealing with brick and mortar, and he had very strong credentials to boot. What's there not to love?

Two years into our relationship, things started feeling wrong. Dividends were never substantial. Prices started tumbling. He came from a good background but he never seemed to have enough money. But i thought - this rough patch would be over. Mr CMA was still building his career - he already owned more and more and more malls in Singapore and China. It would just be a matter of time before my wait pays off. I will dance into the sunset and this will be my happily ever after. I parted with my money and invested some more into Mr CMA. 

Time is never a girls' best friend. Fast forward to today, and my heart is a tad bitter. He dangled just enough gifts in the form of dividends to keep me waiting out for more. These gifts were never enough to please, less than enough to satisfy my waning heart. And as every girl know, a man's heart is easily captivated by the next pretty thing. So this pretty thing made me an offer price to get me off Mr CMA's back. I hesitated. She offered yet again - final offer. $2.35. 

What's a girl got to do? It is still an upside and a compensation for my youth. I'll take it and wait for the next guy to come along. Hopefully, the next one gives more and take less. 

Oh, parting is such sweet sorrow! 

(I've accepted the offer by Capitaland. Have you?)

Review on SIA Engineering

SIA Engineering

Ever since I had my kid, I realised that I just don't have enough time to monitor my shares actively. That's why I have decided to go more into blue chips as opposed to capital plays. 

After divesting my interest in Nam Cheong, I decided to use the proceeds to invest in SIA Engineering instead. 

 (image from: http://sgmusicwhiz.blogspot.sg/2011/11/sia-engineering-1h-fy-2012-analysis.html) 

From a macro point of view, the market for air travel is booming. We received a record 15.5 m visitors to Singapore in 2013. With the increase in budget airlines, I can only foresee an increase in overhaul and repair services and that is where SIA Engineering comes in. 

Although the profits has dipped slightly, I remain confident that this would not be an issue. Every industry is going to face this manpower issue with the tightening of foreign labour. 

Numbers which i like about this blue chip play:

1. Good cash flow. They have 14.78 m in cash v the total debt (both short and long term) of 21.80 m. No worries about interest rates rising. 

2. Great dividends. Dividend yield is at 4.4% and this company has been known for giving good dividends even when the going gets tough. 

Neutral stuff:

1. EPS at 0.24 - kinda low

2. Book Value at 1.22. So you overpaid for the asset by about 4 times. 

Wish me luck, guys! To financial independence! 

Review on AIMS AMP CAPITAL INDUSTRIAL REIT

Review on AIMS AMP

 I purchased 2000 shares of this counter as i believe it has good potential to hold long term. Good dividends, good management, good prospect! this one is a keeper (as based on current valuation) for a few years to come!

Summary of REIT

This REIT holds the following types of properties and they are all based in Singapore (save for the Optus Centre in Australia):

1. Warehousing & Logistics
2. Manufacturing
3. Business Park / Hi Tech

There is a need for more commercial space in Singapore. The general trend is online shopping and every vendor will need warehouse space. Manufacturing remains one of the pillars of the Singapore economy. Of course, this is a space that is heavily watched by the government, and they will move to build more space if and when the economy requires.

The dividend yield is high at 7.3%. Comparing with other REITS, the leverage at 31.7% is still manageable. NAV is higher than current share price, which is good news since you don't want to overpay for an asset.

As i try moving towards a high dividend play, hope i don't make any wrong choices!