By Lim Si Jie
The past few weeks weren’t the best of weeks for shareholders of Noble.
Noble’s share price went tumbling down from $1.34 to $0.44, which is barely 33 percent of its recent valuation! The sudden fall in share price was attributable to two significant events:
- management profit guidance which led to fears that Noble’s troubles have yet to subside
- a credit rating downgrade by S&P
The fall of Noble, as the largest commodities trader in Asia, from the brutal attack by Iceberg Research acts as a reminder for investors like myself to learn from and avoid investing in rogue companies.
It reminds us of three important lessons that every investor should learn from and take your investment strategy to the next level.
Three Lessons That Investors Should Learn From Noble’s Downfall
1. Invest In Companies That Rides The Macro Trend
Another reason for Noble’s downfall was the poor outlook for the industry that Noble is in.
In the past few years, commodity companies have been bucking the macro trend as the slowdown in the global economy halted the rate of consumption of commodities. As such, commodity-related companies like Noble have been suffering from a poor macro outlook.
The macro trend will determine the general direction that your company of interest takes. …read more
By Lionel Yeo
So I was hoping you could help me out with something. I’ve been pondering it all weekend and I just can’t figure it out.
Usually, when this happens, I sit down and do a brain dump of all the thoughts swirling in my brain. Then I organise it, write several drafts, find a nice picture, and boom – we get another blogpost.
But after writing all Sunday, I still couldn’t get my head around it. Maybe you can help me out.
Here’s the thing: We talk a LOT about “financial freedom” these days. Specifically, financial freedom refers to the point when you realise that your wealth has grown SO LARGE that you never have to work any longer. Whenever I ask my readers why they’d like to start investing, the #1 reason is “to achieve financial freedom”.
Bloggers write about financial freedom as if it’s the Holy Grail. Early Retirement pundits devise elaborate spreadsheets to help you calculate the exact age when you can get there. We take it for granted that it’s THE goal we should all be striving towards.
But why should that be the case?
The “Necessary Evil” Argument
In the American version of The Office, there’s a droopy-eyed character called Stanley.
From Season …read more
I know what you are thinking. You are right.
Newton’s third law of motion: For every action, there is an equal and opposite reaction.
That’s why I always like to hear the opposite view:
By Lim Si Jie
While there were outperforming REITs for the quarter, there were a number of REITs that failed to put in a decent set of results for the quarter. In the final part of the 1Q17 report card series for REITs, we highlight five REITs that had a quarter they wish they could forget.
1. Frasers Commercial Trust
Frasers Commercial Trust delivered an above average quarterly result with the Australian segment delivering as the Australian portfolio benefited from stronger AUD and higher occupancy. This drove DPU growth to two percent year-on-year.
While the uncertainty of a potential loss of HP as a tenant at Alexandra Technopark appears largely unfavourable for Frasers Commercial Trust, it could turn out to be a silver lining for Frasers Commercial Trust as the vacating of Alexandra Technopark could allow asset enhancement initiative works to be carried out.
This will boost the potential rental contribution from Alexandra Technopark in the future.
Performance Grade For The Quarter: B+
2. Cache Logistics Trust
Source: Business Times
While Cache Logistics Trust continues to struggle with the legal proceedings for Schenker Megahub, Cache Logistics Trust was helped by higher than expected contribution from the DHL ARC (96 percent occupied). DHL is currently taking up a long rental lease of …read more
By Lim Si Jie
Following the REITs Report for 1Q17, we dive into individual REITs performance in today’s report. Here, we highlight three REITs that managed to outperform the rest of the REITs.
1. CapitaLand Retail China Trust
Capita Retail China Trust had two positive catalysts working for them in 1Q17:
Firstly, CapitaMall Minzhongleyuan has finally managed to turnaround its poor rental performance with a 35.1 percent gowth in rental reversions for 11 percent of its net lettable area leases. Shopper traffic and sales at the mall has been growing in strong double digit figures upwards of 60 percent year-on-year.
Secondly, CapitaMall Xinnan finished the quarter with a strong net property income margin of 72.7 percent in 1Q17. This is a leaped improvement in margin, given that its last quarter margin was only 52.4 percent.
Performance Grade For The Quarter: A+
2. CapitaLand Commercial Trust
The highlight of the quarter for Capitaland Commercial Trust definitely points to the divestment of One George Street at 16.7 percent above its valuation.
Based on its initial purchase price in 2008, the divestment saw CapitaCom Trust making a gain of 1.6 percent of its purchase price. The proceeds from the sale is likely to be pumped to the asset enhancement initiative of Golden Shoe Carpark …read more
By firstname.lastname@example.org (Singapore Man of Leisure)
Its quite easy to spot a person who is English or Chinese educated in cyberspace.
By Lionel Yeo
Poor Tim Gurner.
He’s the Australian millionaire who recently got destroyed online for claiming that millennials would be able to afford their own homes if they just stopped spending money on “smashed avocados and $4 coffee.”
Millennials around the world were up in arms, firing back with some (hilarious) sarcastic replies:
I was gonna put a down payment on a house last year but then I spent $44,000 on avocado toast https://t.co/SvSEisua71
— Jennifer Albright (@albrightjc) May 15, 2017
poor person eats crappy cheap food: YOU’RE UNHEALTHY & A STRAIN ON THE SYSTEM
poor person eats fresh fruit: THIS IS WHY YOU HAVE NO SAVINGS
— Piss Tape Truther (@mechapoetic) May 15, 2017
Avocado toast: $35,000
Someone good at the economy please help me budget this
— Murtaza Hussain (@MazMHussain) May 15, 2017
There’s also an awesome Open Letter from Millennials to Rich Guys with Opinions About Avocado Toast.
Yeowtch. Don’t mess with the millennials, people. They will whup yo’ Baby Boomer butt with their organic fibre hipster shoe inserts.
We millennials are a conflicted bunch. We live in an age of unprecedented opportunity (which sets high expectations …read more