As from April 2013 my Journey in Investing is to create Retirement Income for Life till 80 years old for two over market cycles of Bull and Bear.

Welcome to Ministry of Wealth!

This blog is authored by an old multi-bagger blue chips stock picker uncle from HDB heartland!

"The market is not your mother. It consists of tough men and women who look for ways to take money away from you instead of pouring milk into your mouth." - Dr. Alexander Elder

"For the things we have to learn before we can do them, we learn by doing them." - Aristotle

It is here where I share with you how I did it! FREE Education in stock market wisdom.

Think Investing as Tug of War - Read more? Click and scroll down



Important Notice and Attention: If you are looking for such ideas; here is the wrong blog to visit.

Value Investing
Dividend/Income Investing
Technical Analysis and Charting
Stock Tips

Tuesday, 30 April 2013

DBS - Bullish!


Cash: A Call Option With No Expiration Date



Read? Cash: A Call Option With No Expiration Date

Buffett’s View – Cash as a Call

Warren Buffett views cash as a perpetual call option, according to his biographer Alice Schroeder in her tome “The Snowball: Warren Buffett and the Business of Life.” Schroeder says that one of the most important things she learned from many years of studying Buffett and his holding company, Berkshire Hathaway, is that he perceives cash as a call option with no expiration date or strike price. “No expiration date” alludes to Buffett’s patience as a long-term investor, since he is quite content with waiting for the right opportunity to come along. “No strike price” implies that Buffett generally does not publicly specify a price level for a stock or index at which he would be willing to invest. Instead, he tends to invest at levels where he is confident of adding shareholder value.

Buffett’s perception of cash can also be summed up in one of his aphorisms -
“Cash combined with courage in a crisis is priceless.” As Schroeder explains in her book, Buffett’s best opportunities have always arisen during periods of crisis and uncertainty, such as after the 2001 dot-com bust and corporate fraud epidemic (Enron, WorldCom, etc.). While others may lack the insight or resources to invest heavily during such times, Buffett went on a shopping spree in 2002 through Berkshire Hathaway, making investments and scooping up companies in a number of sectors. Buffett also famously urged investors to “Buy American” equities in an op-ed in the New York Times on October 16, 2008, a month after the bankruptcy of Lehman Brothers, when global stock markets were in free fall.

Can the Average Investor Benefit?

To benefit from this view of cash as a perpetual call option, an investor needs to have two prerequisites: access to a substantial amount of cash, and an innate sense of market timing. Savvy investors who possess both have generated a great deal of wealth by investing in stocks – or increasing their allocation to equities – at market lows.
But such investors are likely to be the exception rather than the norm, since not many people have the luxury of access to substantial amounts of cash on demand, and market timing is not easy to put into practice.
However, there are periods when the average investor may benefit from holding a relatively large cash balance, rather than being in a hurry to put this cash to work. The most common instance is when asset prices are trading at or near record highs, because at such times, the downside risk is likely to be greater than the upside potential.

Holding cash has an opportunity cost, which is equal to the difference in returns between other better-performing assets and the minimal return on cash. For example, if you decide to stay in cash and opt for a certificate of deposit paying 1% annually instead of investing in an equity index that subsequently returns 10%, your opportunity cost would be 9%. But if the equity index returns 2%, your opportunity cost is only 1%.



Uncle8888 is learning too. Patience, patience, patience .....























Why Uncle8888 keep repeating like an insane person?

In investing, Your Account Size Really Matters!

Read? How to become rich in stocks??? (14)


This opportunity cost should be viewed as the option premium paid for staying in cash, or the cost associated with having cash as a call option. The “cost” of such call options fluctuates over time. It is low when investment opportunities are few and upside is limited, at which time investors are better off holding cash as they await better entry levels. But at other times – typically during the uncertainty that reigns after a market crash – when downside is limited and investment opportunities are both abundant and compelling, the opportunity cost of staying in cash is too high. At such times, investors should consider aggressively deploying their cash holdings into assets that offer potentially higher returns.

Lian Beng wins 3 deals worth $211m


CONSTRUCTION firm Lian Beng Group yesterday announced it had secured three new projects worth a total of $211 million.

This brings Lian Beng's construction order book to a new high of $1.2 billion, and will provide the group with a substantial construction revenue flow through FY2016.

The three new contracts involve the construction of Oxley Tower @ Robinson, a hotel at 122 Middle Road, and Goodwood Residence.

Oxley Tower @ Robinson, secured from a wholly owned subsidiary of Oxley Holdings, is a 32-storey office building project at 138 Robinson Road. Work is expected to begin in May this year and be completed by July 2016. The contract is worth $86.25 million.

DOW : 14,818.75 Up 106.20(0.72%)

By: CNBC.com Writer

 
Stocks finished near session highs Monday, with the S&P 500 setting a record close and the Nasdaq ending at its best level since November 2000, following a better-than-expected pending home sales report and after Italy's new prime minister named his cabinet over the weekend, ending two months of political deadlock in the nation.

 
The Dow Jones Industrial Average jumped 106.20 points to end at 14,818.75, led by Microsoft and Hewlett-Packard.

The S&P 500 climbed 11.37 points to end at 1,593.61, logging a fresh closing high and surpassing its previous record set on April 11. And the Nasdaq rallied 27.76 points to finish at 3,307.02, closing at its highest level since November 2000.

The CBOE Volatility Index (VIX), widely considered the best gauge of fear in the market, closed near 14.

Saturday, 27 April 2013

You Can't Predict. You Can Prepare



Read? You Can't Predict. You Can Prepare


Just about everything is cyclical.

Nothing goes in one direction forever.

Tree’s don’t grow to the sky. 

Few things go to zero.

Cycles always prevail eventually.


- Howard Marks





























































Kep Corp's dividend in specie - K-Green and Kep REIT. Am I better off with them?


K-Green @ $1.15

Net yield (less capital depreciation) over 2.8 yrs = 7.8% or 2.7% p.a.

Still waiting for Kep Corp to offload their power assets into K-Green. Next year?






































Kep REIT @ $1.37

Capital appreciation by 10%



 
 
 
 
 



REITs. Simply explained! (6) - Revisit



Read? REITs. Simply explained! (6)

Thinking back, Uncle8888 counted himself lucky (by lucky draw to attend) to attend this company's event to learn something from the Horse himself. The Horse who has started Singapore's first REIT!

The Truth revealed!

More understanding from the ex-Horse's Mouth. (Horse has retired) in Q & A session.
 
"CPL is actively re-cycling its capital to maximize returns to its shareholders.

When a piece of its properties has become MATURED it will then offload it into one of its REITS to recover its capital and to look for better investment yield by taking higher risks"  


Why not simply ask any experienced private property investors, will they invest in matured properties just for their rental yield?

What can you expect from their answers, good or bad?





10% dividend yield for 10 years? Fact or Fiction? (7)



Read? 10% dividend yield for 10 years? Fact or Fiction? (6)


temperament27 April 2013 09:12:00 GMT+08:00

"Last night i attended a 2 1/2 hours talk on share investing and the lecturer likes "CRISIS INVESTING" method."

"CRISIS INVESTING" method???

This is also true for Dividend Hunters, Chasers or Farmers.

Here is the evidence from Uncle8888 for crisis investing.

His Top Three positions in his Portfolio for Long-term investing.


With Semb Corp and DBS going XD soon and factoring full year 2012 dividends into annualised yield on cost computation as follows:










































But .... STI is at 5 years high!























Is Mr Bear sleeping further for the next few years?













Lian Beng






























Friday, 26 April 2013

Singapore's STI ends at new 5-year high









 






























SINGAPORE - Singapore shares continued to climb on Friday, rising to a fresh five-year closing high.

The blue-chip Straits Times Index (STI) ended up 11.16 points at 3,348.87 -- its highest close since January 7, 2008. It added 1.7% for the week.

In the broader market, 2.18 billion shares valued at S$1.44 billion changed hands.

Gainers beat losers 269 to 165.

Among the losers, Olam ended off 0.3% at S$1.665 after initially trading up as much as 3.0% on the release of its strategic review saying it will slow its investment pace and reduce loans -- addressing some concerns raised by short seller Muddy Waters in a report.

CapitaLand rose 2.0% to S$3.65 ahead of its earnings release. After the market closed, it announced first-quarter net profit rose 41% on year to S$188.2 million. 

Buy and Hold??? How easy to do that with a winning stock? (2)

Just for Thinking - Investing



Read? Buy and Hold??? How easy to do that with a winning stock?


Foolish conclusion

In 1998, Buffett looked like a genius for buying Coke stock when he did. In 10 years, Coca-Cola had returned more than 1,000%. That strong initial performance makes Coca-Cola look like a good performer in Buffett's portfolio when considering the full 25-year holding period to date. Yet the stock has been a dud for the past 15 years, drastically under performing the S&P 500 and offering a total return of approximately 2% annually.

Read? Coke Stock: One of Warren Buffett's Biggest Investments Might Be His Worst


Great example of Doing it (practise) and Talking loud (theory)!

Famous wise words from Yogi ...

"In theory there is no difference between theory and practise. In practise there is."























Uncle8888's real life experience ...


Market cycles will make us feel like a fool at certain points in time.


Right?


Peak in 2007 = $13.73

Today market closing price of Kep Corp = $10.84

Total dividends collected from 2008 to 2012 = $2.53

Total worth = $10.84 + $2.53 = $13.37

Hmm .....









 

 

























Got lose out a lot meh?





Singapore's CapitaLand Q1 net profit up 41 pct


SINGAPORE, April 26 (Reuters) - Singapore's CapitaLand Ltd reported on Friday a 41 percent rise in first-quarter net profit and said it was cautiously optimistic about the housing market in the city-state despite the latest round of property cooling measures.

The biggest property developer in Southeast Asia posted net profit of S$188.2 million ($151.9 million) for the three months ended March, up from S$133.2 million a year earlier.

CapitaLand said it achieved strong residential sales in Singapore and China. For the quarter, the company sold 544 residential units in Singapore with total sales value of S$1.3 billion.

In China, it sold 955 residential units valued around S$400 million, it said.

CapitaLand said last month it was conducting a strategic review of its 59.3 percent stake in Australand Property Group and had appointed J.P.Morgan as its financial advisor.

Thursday, 25 April 2013

DBS's turn to shine in STI???


Singapore shares rise to 5-year high. STI 3,337.71 Up 15.00(0.45%)

























SINGAPORE: Singapore shares rose 0.5% on Thursday to end at their highest in more than five years, erasing early losses amid gains in most regional markets.

The blue-chip Straits Times Index (STI) rose 15 points to end at 3,337.71, its highest close since January 9, 2008.

In the broader market, 2.17 billion shares changed hands. Gainers beat losers 244 to 191.
Among the gainers, Genting Singapore jumped 3.9% to S$1.48.

CapitaMalls Asia rose 3.6% to S$2.04 after reporting first-quarter net profit rose 9.6% on-year to S$73.2 million.
The three local banks all rose, with UOB up 1.5% at S$20.91, DBS rising 1.3% to S$16.18 and OCBC gaining 0.6% to S$10.96. The trio will report earnings next week.  

Wednesday, 24 April 2013

Singapore's inflation rate down to 3.5 per cent last month

SINGAPORE] Plunging car prices drove Singapore's inflation rate down to 3.5 per cent last month - the lowest it has been in more than two years. It is expected to fall further, possibly to 2 per cent, this month.
 
But core inflation could still rise in the second half of the year as economic restructuring costs pass through to prices, economists said.

Consumer prices rose by 3.5 per cent from a year ago, less than private-sector economists' consensus forecast of 3.6 per cent. This prompted at least two banks to cut their full-year inflation forecasts; DBS has lowered it from 4 per cent to 3.6 per cent, and Bank of America Merrill Lynch to 3.5 per cent.

The 1.4 percentage point drop from February's inflation rate of 4.9 per cent was largely due to falling vehicle costs, the Monetary Authority of Singapore (MAS) and Ministry of Trade and Industry (MTI) said in a joint statement.

In month-on-month terms, the consumer price index (CPI) fell 0.5 per cent in March after rising one per cent in February.

Private road transport costs, which weigh 12 per cent in the CPI's basket of goods, still rose 8.6 per cent in March from a year ago. But this was half the 17.4 per cent year-on-year jump in February, thanks to weaker certificate of entitlement (COE) premiums and car dealers lowering prices in the wake of the MAS's curbs on car-loan financing in late-February.

While COE premiums are expected to fluctuate as the market adjusts further, MAS and MTI think they will contribute less to headline inflation in the coming months.

"Overall inflation should recede from its Q1 high," the authorities said.

This is also because imputed rentals on houses lived in by their owners (which involve no out-of- pocket expenses) will rise at a slower pace, given the upcoming completion of a large number of private housing units, they added.

Slight moderation was already seen in March. Accommodation cost inflation edged down to 5.8 per cent from February's 5.9 per cent, because of a smaller rise in market rentals.

Excluding private road transport and accommodation costs - which accounted for more than two-thirds of March's inflation - core inflation eased to 1.7 per cent, from 1.9 per cent in February.

Food inflation fell to 1.8 per cent from 2.3 per cent in February, as the Chinese New Year boost to food prices wore off; services fees rose a slower 2.5 per cent, down from February's 2.7 per cent. Lower prices at petrol pumps also sent prices of oil-related items falling a steeper 2.8 per cent in March than February's 0.2 per cent year-on-year dip.

MAS and MTI said: "Imported inflation in 2013 will likely remain subdued, given ample supply buffers in the commodity markets."

But upward wage pressure from a persistently tight labour market may push businesses to pass their costs to consumers at a faster pace later this year.

The path ahead is thus likely to be bumpy.

Barclays economist Joey Chew says the impact of lower global oil prices on petrol prices and electricity tariffs, as well as government rebates, could send headline inflation "to or below 2 per cent in April".

Rebates for public housing service and conservancy charges, slated for disbursement in April, July and October, will lower accommodation costs in those months, but inject significant volatility into the inflation rate, she said.

Citi economists Kit Wei Zheng and Brian Tan noted that the government's latest assessment of headline inflation "sounded more dovish" than a month ago, but not its take on core inflation. This would be in line with the central bank's decision earlier this month to stick to its exchange rate policy stance and anchor inflation expectations.

The multi-pronged approach of administrative measures to cool the housing and car markets, subsidies, and continued appreciation of the trade-weighted Singapore dollar "appears to be working", said Ms Chew.

The government is keeping to its 2013 forecasts of 3-4 per cent headline inflation and 1.5-2.5 per cent core inflation
 
 

DOW: 14,719.46 Up 152.29(1.05%)






 


























By: CNBC.com Writer

Stocks ended a volatile day with strong gains Tuesday after taking a sharp nosedive in midday trading, following a false Twitter post of two explosions in the White House.

 Stocks took a steep plunge following a false AP tweet that indicated that the White House had been the victim of an explosion and that President Obama had been injured. The AP confirmed its Twitter account was hacked and the spokesman said the tweet was "bogus." The Twitter account was suspended shortly after the fake tweet.

White House Press Secretary Jay Carney held a press conference shortly following AP's Twitter post, saying "the President is fine."

"That goes to show you how algorithms read headlines and create these automatic orders – you don't even have time to react as a human being," said Kenny Polcari of O'Neill Securities. "I'd imagine the SEC's going to look into how this happened. It's not about banning computers, but it's about protection and securing our markets."

















Almost immediately following the tweet, the Dow Jones Industrial Average took a quick 143-point dive, before recovering most of its losses within minutes. The three-minute plunge triggered by the tweet briefly wiped out $136.5 billion of the S&P 500 index's value, according to Reuters data. The Dow finished up 152.29 points, or 1.05 percent, to end at 14,719.46.

Interestingly, Tuesday has been the best day of the week for the blue-chip this year with an average return of 0.46 percent. If the index closes in the black today, it will have been up for the 15th consecutive Tuesday. The last time the Dow rose for 15 straight Tuesdays was in 1927. The index rose 27.7 percent in that year.

 
The S&P 500 jumped 16.28 points, or 1.04 percent, to close at 1,578.78. The Nasdaq rallied 35.78 points, or 1.11 percent, to finish at 3,269.33. All three major averages are now back in positive territory for April.

The CBOE Volatility Index (VIX), widely considered the best gauge of fear in the market, fell below 14.


 

Tuesday, 23 April 2013

10% dividend yield for 10 years? Fact or Fiction? (6)



Read? 10% dividend yield for 10 years? Fact or Fiction? (5)

Kep Corp XD tomorrow so dividend for H2 FY 2012 is in the pocket.


Full Year 2012 Yield on Cost = 55%!
 
But, it is not highest.

The highest goes to Semb Corp at 59.8% when it divested Semb Log and did capital reduction.


Top 10 Highest Yield on Cost































30% per annum yield on cost for 11 years!

Even though Uncle8888 got it wrong in Jul 2007, Kep Corp still provide decent 4.6% p.a. yield on cost for 5 years as pain-killer for sitting tight on his paper losses.

Quite okay. Right?



Monday, 22 April 2013

Reading this won't make you great! (3)



Read? Reading this won't make you great! (Re-visit)

Read? 3 Pillars of Learning


"Seeing much, suffering much, and studying much, are the three pillars of learning." — Benjamin Disraeli
 
 
Read? Deep Value Investing: Learning from Peter Cundill Protégé Jeroen Bos

"However, like other great investors, Peter Cundill was adept at both the science and art of investing, always remaining flexible. He fully recognized that there is no mechanical formula to investing. Rather, there is a balance between intellect and intuition, or “what your tummy tells you.” Peter Cundill referred to this as “osmosis”:"


"Stock picking is part science, part art, part luck, part intuition, and always uncertain - "not precisely knowing." - Author??? Forgotten who!



Question is how can we learn or improve on our intuition?


Read? Stock picking is part science, part art, part luck, part intuition, and always uncertain - "not precisely knowing."


Read? Stock Picking is like Choosing your own durians?

Keppel Subsidiary Applies For Seabed Minerals Exploration Licence (Revised with more articles. Can re-read)

Keppel Corporation Limited (Keppel Corporation) has today announced the formation of Ocean Mineral Singapore Pte. Ltd. (OMS), which intends to explore for polymetallic nodules several kilometres beneath the ocean's surface.

Polymetallic nodules contain copper, nickel, cobalt and manganese, as well as rare earth minerals, and have the potential of supplying these key metals to meet growing global demand in applications as diverse as construction, aerospace and alternative energy.

OMS has applied to the International Seabed Authority (ISA) for its first seabed exploration licence which will be considered by the ISA in July.

OMS is a Singapore-incorporated company majority owned by Keppel Corporation, with UK Seabed Resources Ltd, a wholly owned subsidiary of London-based Lockheed Martin UK Holdings Ltd and Singapore-based private investment company Lion City Capital Partners Pte. Ltd. as minority shareholders.

"We are pleased to be working with UK Seabed Resources on seabed exploration," said Mr Ong Ye Kung, Director of OMS.

"With Keppel's many years of offshore and marine experience, this could be an exciting opportunity to emerge at the forefront of the industry should the application be successful."

"It is a privilege to be associated with Keppel and apply our technology, skills and scientific expertise in order to explore for polymetallic nodules in an environmentally responsible way," said Stephen Ball, Chief Executive, UK Seabed Resources.

Seabed mineral harvesting beyond nations' territorial waters is administered by the International Seabed Authority (ISA) established under the United Nations Convention on the Law of the Sea.

While harvesting polymetallic nodules from the ocean floor at depths of several kilometers has previously been considered uneconomic, the development of new technologies for the offshore oil industry and aerospace industry over the past decade has changed this dynamic.

Nodules can be brought to the surface using a combination of remotely operated or autonomous underwater vehicles, pumps and riser pipes.

Read? UK Seabed Resources joins deep-ocean mineral-mining rush


Read? UK company pursues deep-sea bonanza


Read? Harvesting riches from the seabed


Sunday, 21 April 2013

For how long can we control our mind? Don't need to talk about investment! (4)



Read? For how long can we control our mind? Don't need to talk about investment! (3)



After cancer, Uncle8888 fears most is Dementia!


Don't save on your cup of coffee!
















Read? Nervous About Alzheimer's? Coffee May Help




What you need to know about Keppel's latest deal with its 'prodigal rig'

Singapore Business Review – Wed, Apr 17, 2013 2:12 PM SGT

Falcon sealed a US$225m jack-up rig deal.

According to CIMB's report ''The Prodigal Rig," Keppel has secured a US$225m jack-up rig contract from Singapore-listed Falcon Energy. The rig is scheduled for delivery in 3Q15, with 25/75 payment terms.

China Merchants Heavy Industry (CMHI) is currently building two jack-up rigs (GustoMSC CJ-46) that Falcon awarded in Oct 2011 for delivery in Oct 2013. CJ-46 jack-up rigs are entry-level rigs that may not be widely acceptable in the market.

Here's more from CIMB:



Even though the rigs came with the option for two more units, Falcon still ordered a KFELS super B-class rig, suggesting that proven designs could be more in favour.
In early 2013, Falcon Energy entered into agreements with PetroVietnam Drilling and Well Services to set up JVs in Singapore, focusing on providing drilling services. The PetroVietnam JVs are likely to take on the jack-ups that are currently being built by CMHI. However, with more opportunities from international national oil companies in the pipeline, quality and proven track record could be the reasons why Falcon is returning to home ground and ordering the rig from Keppel.
Jack-up rigs make up more than 85% of Keppel Corp’s YTD orders, suggesting unabated demand in the industry. YTD, a total of 20 units have been ordered globally compared to a total of 15 in 2012.
Singapore yards have clinched 10 of the 20 units ordered YTD while Chinese yards secured the other 10.
 
Falcon Energy is a new customer for Keppel with two jack-ups already on order in China. Besides the units already signed for, the company stated it is "positioning itself to expand its fleet of premium drilling rigs for the market."
 

CW8888:

Why Falcon is not going back for cheaper rigs as repeated customer and opt for more expensive stuff?

Value for money or something fishy happening at CMHI Yard since the delivery is scheduled in Oct 2013?






Buy Gold/Silver as insurance or hedge against inflation? (6)




Read? Buy Gold/Silver as insurance or hedge against inflation? (5)


Borrow the idea from La Papillion

** "BIAS" is a special feature in my blog where I get to say whatever I want with scant regards for your feelings. I'm not politically correct in this feature, so go ahead, judge me."

Uncle8888 is going to do another BIAS post!


This time is about Gold as Insurance for SMALL retail investors!

If you are one of Gold Lovers; you may want to stop reading further.

Later, you "tulang" at your own risk if you choose to continue ....



























Gold is for Insurance and not for Investment.


How come?






















No Yield. No Growth.


Why Warren Buffet like stocks?

 



















Dying To Be Me: My Journey from Cancer, to Near Death, to True Healing

Just for Thinking ...















Read? original NDE description that Anita Moorjani submitted to The Near Death Research Foundation in August 2006

Read? Dying To Be Me. The Manifestation Q&A Series: Anita Moorjani.

Saturday, 20 April 2013

Olam: strategy review

Olam International Limited (“The Company”) will announce the results of its strategy review on Thursday, April 25, 2013 after trading hours
 
 



 


Buy Gold/Silver as insurance or hedge against inflation? (5)



Read? Buy Gold/Silver as insurance or hedge against inflation? (4)

Borrow the idea from La Papillion

** "BIAS" is a special feature in my blog where I get to say whatever I want with scant regards for your feelings. I'm not politically correct in this feature, so go ahead, judge me."


Uncle8888 is going to do another BIAS post!

This time is about Gold as Insurance for small retail investors!

If you are one of Gold Lovers; you may want to stop reading further.

Later, you "tulang" at your own risk if you choose to continue ....


















Gold as Insurance means paying premiums for protection


Gold is without yield


That missing yield is the cost of premiums paid for using Gold as protection against future inflation and/or government printing more and more worth less paper currencies.

Common folks understanding is that Gold as hard assets will be able to retain at least its base value across market and economic cycles.


Cost of Protection

Here is the truth from Uncle8888!


You may not like to hear from Uncle8888 telling you the truth and fact.


How savvy are you as retail investors in investing your own money?

Can you make at least 10% yield on your investment?

If you can make 10% yield, your cost for using Gold as protection is 10% premium.

If you are dumbest retail investors, your cost of protection is the lowest.

Smartest retail investors will be paying the highest cost for protection!

Silly right???


Why Warren Buffet no like Gold?

Got the answer???


To be continued soon ....













What is Uncle8888's opportunity cost of doing NOTHING?



What if Uncle8888 choose to do nothing for the rest of months in 2013?

He is likely to end 2013 like this ...






















Friday, 19 April 2013

Sembcorp to Develop its First Overseas Energy-from-Waste Facility in the UK

- Project marks an important milestone in the Group's plan to grow its renewable energy capabilities

- Waste supply secured under a 30-yr contract


SINGAPORE, April 19, 2013 - Sembcorp Industries (Sembcorp) is pleased to announce that it will be developing a new energy-from-waste facility in Teesside, the UK, which will be the Group’s first energy-from-waste facility outside Singapore. The new energy-from-waste facility will be capable of producing up to 49 megawatts of gross power or 190 tonnes per hour of steam, using municipal and commercial waste. The facility will be located at Wilton International, a 770-hectare industrial site which Sembcorp owns, operates and manages in Teesside.

The new facility will be developed by a 40:40:20 joint venture between Sembcorp, SITA UK (part of SUEZ ENVIRONNEMENT) and ITOCHU Corporation.

The facility will utilise up to 450,000 tonnes per year of municipal waste, which would otherwise have gone to landfill, to produce sustainable power and steam. Through this facility, Sembcorp will be able to divert waste from landfill, convert waste into a fuel to produce energy, reduce the consumption of fossil fuels and lower carbon emissions. The energy-from-waste facility will reduce carbon emissions by an estimated 130,000 tonnes per year, compared to landfilling an equivalent amount of waste.

The waste will be supplied by the Merseyside and Halton Waste Partnership under a 30-year contract, which the joint venture won through a competitive bidding process.

To be located at Sembcorp’s Wilton International site, the facility will provide a new income stream and enhance the competitiveness of our UK operations when it becomes operational. Apart from the energy-from-waste facility, the joint venture will also be developing a waste transfer station in Knowsley, Merseyside, to transport the waste by rail from Merseyside to the energy-from-waste plant in Teesside. Both facilities are expected to be operational in 2016, and will be developed under a build, own, operate and transfer arrangement with the Merseyside Recycling and Waste Authority for a period of 30 years.

Tang Kin Fei, Group President & CEO of Sembcorp Industries, said, “We are very pleased to embark on this project and to develop a new energy-from-waste facility at our Wilton International site, a quality industrial site that offers integrated services, from land, utilities to infrastructure, to customers there. This new energy-from-waste facility will complement our existing assets at the site to generate power and steam competitively, enhancing the competitiveness of our UK operations. It is also a significant milestone as we continue to grow our renewable energy capabilities. We look forward to working closely with our partners and the local authorities on this exciting new project.”

Besides energy-from-waste capabilities, Sembcorp also has biomass and wind power as part of its renewable energy portfolio. Sembcorp now has a renewable energy capacity of over 330 megawatts of power and 250 tonnes per hour of steam in operation and under development around the world, accounting for approximately 5% of its total power and steam portfolio.

Financial Information

The total investment for both the energy-from-waste facility and waste transfer station amounts to approximately £250 million (approximately S$473.5 million), which will be funded through a long-term non-recourse project finance loan, an equity bridge loan, shareholder loans and equity. Financial close of the project is expected in the second half of 2013 or early 2014.

Sembcorp’s equity investment for this project, comprising equity and shareholder loans, is £21.9 million (approximately S$41.5 million), which will be funded through the Group’s internal resources. The investment and waste contract are not expected to have a material impact on the earnings per share and net asset value per share of Sembcorp Industries for the current financial year.
- END -

Thursday, 18 April 2013

Kep Corp: 1Q 2013 REPORT CARD

1Q 2013 REPORT CARD


1. Net profit decreased 56% to S$331 million, compared to 1Q 2012's S$751 million.

2. Earnings per Share of 18.4 cents, down 56% from 1Q 2012's 41.9 cents.

3. Annualised Return on Equity of 13.9%.

4. Economic Value Added decreased from S$654 million to S$191 million.

5. Cash outflow of S$732 million.

6. Net gearing of 0.26x.


SINGAPORE, April 18 (Reuters) - Singapore's Keppel Corporation Ltd, the world's largest offshore oil rig builder, reported a 56 percent drop in quarterly net profit from a year earlier to S$331 million ($267.75 million), in the absence of one-time gains from sales of its Reflections at Keppel Bay units.

The conglomerate, which has businesses in property, telecommunications and infrastructure, said revenue in the three months ended March 31 fell 35.3 percent from a year earlier to S$2,758 million.


By mid-year, KMC's 1,300MW power generation capacity will be fully operational. Keppel Energy will focus on further improving the plant's efficiency for healthy and stable returns.

(CW8888: Injecting this power asset into K-Green by 2014?)


View? Kep Corp's Presentation slides






































 
 
 

Wednesday, 17 April 2013

Sembcorp's 1,320-Megawatt Power Plant in India Secures 25-Year Power Purchase Agreement

SINGAPORE, April 17, 2013 – Sembcorp Industries (Sembcorp) is pleased to announce that its joint venture in India, Thermal Powertech Corporation India (TPCIL), has signed a long-term power purchase agreement with the Andhra Pradesh Power Distribution Companies, wholly owned by the government of Andhra Pradesh. Under the power purchase agreement, 500 megawatts of power will be sold to the Central, Eastern, Southern and Northern Power Distribution Companies of Andhra Pradesh for a period of 25 years.

Sembcorp owns a 49% stake in TPCIL through its wholly-owned subsidiary, Sembcorp Utilities, while Gayatri Energy Ventures, a wholly-owned subsidiary of Gayatri Projects, owns the other 51% in TPCIL.

The Rs 6,869 crores (S$1.9 billion) 1,320-megawatt coal-fired power plant, located in Krishnapatnam in Andhra Pradesh’s SPSR Nellore District, is Sembcorp’s first power project in India. The power purchase agreement will not only provide a stable long-term revenue stream, but also enable the company to play an important role in helping to reduce the severe shortage of power supply in Andhra Pradesh. The state currently faces severe power shortage of up to 19% of unmet power demand during peak periods. In addition to the inadequate generation within the state, the transmission corridor, which brings power into southern India from the rest of the country, is also limited in its capacity. As such, the plant, located in southern India, will play an essential role in helping to mitigate this shortage when it commences operation by the second half of 2014. The plant will also apply supercritical technology which allows for enhanced efficiency, thereby reducing emissions of carbon dioxide and other pollutants by consuming less fuel per unit of electricity generated compared to conventional sub-critical coal-fired generating units.

The signing of the power purchase agreement is not expected to have a material impact on the earnings per share and net asset value per share of Sembcorp Industries for the current financial year.
 

Tuesday, 16 April 2013

41% of Singapore's richest need to save $1.6m for retirement: survey

From Singapore Business Review

Others still have no clue for their retirement.

According to Friends Provident International's investor attitudes survey, Singaporeans have altered their savings priorities from six months ago.

In view of the demographic challenges in Singapore, the government has placed increasing emphasis on attending to the needs of a rapidly ageing population, such as healthcare and housing. Singaporeans, too, appear to have aligned their savings priorities to adapt to macro changes.

Retirement tops the savings priority list amongst affluent investors surveyed, with ‘rainy day’/emergency needs second and education for children third.

These three categories remained the top three priorities for male investors but female investors have switched their top priority from saving for ‘rainy day’/emergency to retirement in this survey.

Chris Gill, Principal Officer and General Manager, Southeast Asia, Friends Provident International said “We noted last year that female investors were more concerned about shorter term issues and would save for emergency needs. However, this survey highlighted that the proportion of female investors saving for retirement has increased from 47% to 69% over this six month period."

In addition, the survey also highlighted that 57% of affluent Singaporeans feel that the total of their CPF savings, other savings and investments would be sufficient to reach their retirement goals. Of those not saving enough, a shortfall of between 30% and 40% is the most popular estimate of their ‘savings gap’.

41% of affluent Singaporeans surveyed believe they need to save a capital sum of about S$800,000 to S$1.6 million to retire at age 65.


Another 24% think they need S$1.7 million to S$2.4 million for retirement.


45% of the respondents determined the amount of money they needed for retirement themselves while about a quarter of respondents relied mainly on guesswork and appear to have no real idea how much they need for retirement.

Gold Settles Down 9.3%, Lowest Since February 2011

 
 
 
 
 
Gold plummeted more than 9 percent on Monday, and was down more $140 per ounce, as investors ditched the precious metal en masse in search for better returns in other assets.

Gold's drop triggered a broad based commodity sell-off and was mirrored by a 10 percent plunge in silver. Platinum and palladium also fell sharply.

Bullion's harrowing sell-off caught many veteran investors by surprise. In percentage terms, it has fallen 13 percent over the past two days.

There has been no drastic changes in gold's supply/demand picture in the last week although numerous factors have kept gold from rising while investments like U.S. stocks took off.

While last week's news that the Central bank of Cyprus might sell gold reserves to finance its European Union bank bailout did trigger a rush for the exits when bullion slid below the pivotal $1,500 an ounce threshold, few saw it likely to usher in a round of other official disposals.

"The pressure from proposed sale of Cyprus gold is one of the factors, and once one of them start they all run from the hen house,'' said Robert Richardson, senior account executive and trading officer at Canadian broker-dealer W.D. Latimer Co. Ltd.

The big question is whether the gold bull market is over after 12 years of consecutive yearly gains. Gold has now halved its rally since the 2008 economic crisis, leaving the metal $550 below its record high of $1,920.30 set in September 2011.

Weaker-than-expected Chinese economic data earlier on Monday simply gave investors another excuse to slash holdings as U.S. equities and other key industrial commodities including oil and copper fell. But Monday's selloff in the Dow Jones industrial stock average comes days after stock indexes hit record highs.

Recent signs that Fed officials appeared to be nearing a decision to start winding down their bond purchases to end stimulus contributed to the negative tone for gold, even though inflation has failed to materialize as feared during its rounds of post-financial crisis quantitative easing.

The yellow metal has been a traditional hedge against inflation and safe haven in times of economic turmoil.

Gold dropped as low as $1,355.80 an ounce before recovering slightly to $1,369, still down 7.4 percent.

U.S. gold futures settled down $140.30 at $1,361.10 per ounce at the lowest level since Feb. 11, 2011. The drop was the largest fall in dollars on record and the biggest percent decrease since March 17,1980.

Gold ETF Outflow, Cyprus

Investors cut exposure to gold, with total holdings at the world's major bullion gold-backed exchange-traded-funds falling to their lowest since early 2012.

Investors have been dumping gold for the past three weeks.

Even escalating tensions on the Korean peninsula and Japan's aggressive monetary stimulus have failed to burnish its safe-haven appeal.

"We are entering a phase of additional long liquidation by ETF investors and short-selling from hedge funds, which will continue in the foreseeable future,'' Saxo Bank senior manager Ole Hansen said.

Among other precious metals, silver was down 8.6 percent to $23 an ounce. Spot palladium dropped 4.7 percent to $667.72, while platinum was down 4.7 percent at $1,415 per ounce.
 






Worst One-Day Drop in 2013: Stocks Skid 2%, Dow Tumbles 250; Vix Spikes 40%







 



























By: CNBC.com Writer
                


Stocks finished at session lows Monday, posting their sharpest one-day drop this year, as disappointing economic data from China triggered a selloff in commodities.

The Dow Jones Industrial Average tumbled 265.86 points, or 1.79 percent, to finish at 14,599.20. All 30 Dow components ended in the red, led by Caterpillar and ExxonMobil.

The S&P 500 plunged 36.49 points, or 2.30 percent, to close at 1,552.36. And the Nasdaq dropped 78.46 points, or 2.38 percent, to finish at 3,216.49.

The CBOE Volatility Index (VIX), widely considered the best gauge of fear in the market, surged more than 40 percent to finish above 17.

Major averages snapped a four-day winning streak last Friday, but still closed up more than 2 percent for the week.

All key S&P sectors closed sharply in negative territory, dragged by materials and energy.


Art Hogan, Lazard Capital Markets, explains what's behind today's stock market dive.
China's gross domestic product grew 7.7 percent in the first quarter, over the same period a year-ago, below the expected 8 percent level and down from 7.9 percent in the previous quarter. Data on Chinese industrial production for March also missed forecasts. China is the world's second-largest buyer of gold.
 

Monday, 15 April 2013

K-Green Trust: 1Q FY2013 RESULTS HIGHLIGHTS

1. Group revenue for the first quarter ended 31 March 2013 was $17.0 million. Excluding construction revenue arising from the flue gas treatment upgrade following its completion, revenue for 1Q 2013 improved by $0.5 million, representing a 3.0% increase compared to 1Q 2012.

2. The profit after tax achieved for 1Q 2013 was $3.2 million, contributing to earnings per unit (EPU) for the quarter of 0.51 cents.

3. Net asset value per unit as at 31 March 2013 was $1.01.

4. Cash generated from operations was $10.0 million for the quarter.

Keppel REIT's Net Property Income Increased 20.7% Year-on-year

  • Net Property Income ("NPI") increased 20.7% year-on-year ("y-o-y") to $34.4 million primarily due to improved performance from Ocean Financial Centre ("OFC") and 77 King Street.
  • Property Income registered an improvement of 13.2% y-o-y to $41.4 million.
  • Share of Results of Associates increased 26.4% y-o-y to $14.2 million due to higher contribution from Marina Bay Financial Centre Phase 1 ("MBFC Phase1").
  • Distributable income for 1Q 2013 was $52.2 million, an increase 7.6% y-o-y.
  • Annualised 1Q 2013 Distribution Per Unit ("DPU") rose by 4.6% y-o-y to 7.99 cents.
  • All refinancing for 2013 is completed, and weighted average term to expiry has been extended from
    3.1 years to 3.2 years.
  • Completed the acquisition of the new office building to be built on the Old Treasury Building site
    in Perth, Western Australia.
  • Overall committed portfolio occupancy increased to approximately 99%.
  • Four out of seven completed properties are 100% occupied.

Keppel O&M wins US$226m jack-up order

KEPPEL315
 
KEPPEL Offshore and Marine bumped up its order book to US$1.8 billion (S$2.23 billion) to-date, with a fresh jack-up rig win - PHOTO: KEPPEL
KEPPEL Offshore and Marine bumped up its order book to US$1.8 billion (S$2.23 billion) to-date, with a fresh jack-up rig win.

Subsidiary of Singapore-listed Falcon Energy Group awarded Keppel Fels an order for a US$226 million KFELS B Class jack-up.

Keppel Corporation fell three cents on April 15 to end at $11.39.

CW8888's estimated Order Book












































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