Dec 31, 2010

First Reit Rights Subscription - Result is out

I just checked my CDP for the First Reit rights subscription result.  It turns out to be a pleasant surprise !!

Before the result was out, there was news released about the almost full subscription for this rights excercise and I did not have much hope to get any excess allocation to me. However, I am lucky to get it afterall. Hence, below is the summary on the total First Reit shares I am now holding :

Open market purchase : 4000 shares (4 lots)

Entitled shares through rights subscription : 5000 shares (5 lots)

Additional shares obtained through excess rights subscription : 1000 shares (1 lot)

Total First Reit shares bought : 10000 shares (10 lots)

A happy ending for investment year 2010 indeed !!   :=)

Dec 22, 2010

2010 year-end thoughts

It is almost Christmas and a new year is about to begin.

Looking back at this year, it has been wonderful to me so far. First of all, I formalised my passive income investing plan and it is progressing well. Secondly, I managed to increase my average monthly income from S$36 to S$147, and expecting it to hit S$200 per month. Although it is still a far cry from my target plan of S$3000/mth, I strongly believe when I do the right things and the things right, this target is achievable.

Looking forward into next year, I plan to accumulate blue-chip stocks into my humble portfolio slowly. As usual, I will update my portfolio once they are bought.

At this point of time, I will like to wish all a Merry Merry Christmas and a Wonderful New Year !!  :=)

Dec 9, 2010

First Reit Rights Subscription

Finally, the long awaited moment has arrived !!

Today is the second day opening for First Reit rights subscription via ATM. I proceeded to subscribe my 5000 rights as per planned.  On top of that, I am trying my luck for an additional 5000 excess rights, hope I can be lucky to get at least 1000 shares out of it.  Looking forward to the right subscription announcement day !!  :=)

Nov 30, 2010

Dividends for Q310 - Final

Ok, I finally received my PST dividend and it is just 1 cent off my calculation of S$108. With that, my final dividends received for Q310 is as calculated before :

S$(108 + 123 + 100 + 111) / 3 = S$147

I am very eagerly looking forward to 4Q10 dividends now !!   :=)

Nov 11, 2010

First Reit - my first healthcare reit

Just two days ago, First Reit announces that it is going to issue rights to fund the purchase of two hospitals in Indonesia. According to the announcement, it is going to issue rights at S$0.50 per unit and the TERP is estimated to be at S$0.70. It is also a yield accretive acquisition as the distribution yield is to rise from 8.57% to 9.14% (based its calculation on the closing price of S$0.95 on 4th Nov 2010).

All along, I have been interested to own some units of this reit and now it provides me a very good opportunity to do just that. Due to my capital limitation, I intend to own about 10000 shares (10 Lots) of it. After some calculation and consideration, I decided to do this :

1. Buy from open market = 4000 shares (4 Lots)
2. Rights to be received = (4000/4) * 5 = 5000 rights units
3. Shares own after rights conversion = 4000 + 5000 = 9000 shares
4. For the balanced shares :
  • To apply excess rights for at least = 1000 units => 1000 shares
  • Or, buy again from open market = 1000 shares

 Net shares to own = 9000 + 1000 = 10000 shares

So far, I have completed Step 1 today. Hence for now, I shall wait for the window of rights application to open and then proceed with my rights and excess rights application.

I will continue my update about this purchase in my later posts.

Oct 30, 2010

Dividends for Q310 - Part 2

With AimsAmpReit released its latest financial report, I re-calculate average monthly income to be :

S$(108 + 123 + 100 + 111) / 3 = S$147

When the foreign exchange rate is finalised by FSL & PST, I will update the final figure for my average monthly income in Part 3.

AimsAmpReit - Q2FY11 DPU result

The financial result is out for AimsAmpReit.

Its DPU is the same as last quarter but is now diluted by new issues of units, hence the lower DPU this quarter. As reported, this quarter DPU is S$0.003968.  Therefore, my dividend for this stock for this quarter will be :

S$0.003968 x 28000 shares = S$111

On average, this is in line with the dividends I receive for my other stocks, in absolute dollar terms.

Oct 28, 2010

Dividends for 3Q10 - Part 1

So far, 3 out of 4 stocks in my portfolio have already announced their dividends payout. I will have to wait for AimsAmpReit to also release their financial result before I can update my average monthly passive income for 3Q10 achievement.

However, basing on the temporary calculation from PST & FSL, and adding Starhill Global Reit, my tentative average monthly income is roughly at

S$(108 + 123 + 100) / 3 = S$110

Although the increase is marginal, but I am quite please to see a forward advancement based on my financial plan.

Starhill Global - Q3FY10 DPU result

Kind of excited because I just bought this stock not too long ago, but receiving its dividend this soon.  The DPU it is giving out in this quarter is S$0.01 per share, which is purportedly higher than those in the past quarters.  The amount of dividend I will be receiving is :

S$0.01 x 10000 shares = S$100

Another ringing from the cash register. [grin]

FSL - 3QFY10 DPU result

Like PST, the dividend is out and is at US$0.0095 per share. Since it is also given out in US dollar, I am making the same temporary assumption that USD/SGD exchange rate to be at 1.3.  Hence, my dividend for this stock for this quarter will be :

US$0.0095 x 1.3 x 10000 shares = S$123

Looking forward to the payout day !!

Update on 24 Nov 2010

FSL has finalised the USD/SGD exchange rate to be at 1.2962. So, the finalised dividend I shall receive from FSL will be :

US$0.0095 x 1.2962 x 10000 shares = S$123.13

PST - 3QFY10 DPU Result

Its financial result is out.

No big surprises, but I am glad that its DPU has increased slightly more than the last quarter. In this quarter's DPU, PST is giving out US$0.00832 per share.  Assuming the exchange rate for the US and Sing dollar would be at 1.3 (just a rough estimation), my dividend for this stock for this quarter will be :

US$0.00832 x 1.3 x 10000 shares = S$108

I will revise this figure once the exchange rate is determined by PST.  It is so good to hear the ringing of the cash register again.

Oct 25, 2010

Retail investors will have to prove that they know what they are getting into

Retail financial investors to get better protection

(SINGAPORE) Soon, retail financial investors will have to prove that they know what they are getting into before they are allowed to buy certain investment products.

And if they don't, the Singapore Exchange (SGX) is ready to give them a primer over the Internet on the subject.

The onus of the new regime, however, falls on financial institutions. They must make sure that their customers have financial knowledge or experience before doing business with them, said the Monetary Authority of Singapore (MAS) yesterday.

Investment products that fall under the new, tougher Regulatory Regime for Listed and Unlisted Investment Products include popular unit trusts, structured deposits and exchange traded funds (ETFs).

Those not caught under the new regime include shares, depository receipts representing shares, rights issues, company warrants, plain vanilla bonds or debentures, business trusts, Reits, life insurance policies and foreign exchange contracts.

The MAS said that for the sale of unlisted investment products, financial advisers have to conduct a customer knowledge assessment before a sale, to assess whether the customer has the relevant knowledge or experience to understand the risks and features of the product.

The assessment should find out if the customer has any finance-related background relevant to the product, which includes relevant educational qualifications; investment experience or work experience directly related to the product or similar products.

For trading of listed products under the regime, the remisier has to do a customer account review before account opening. The review is to ascertain whether the customer who wishes to trade the listed security has the relevant knowledge or experience to understand the risks and features of derivatives, before approving the customer's account for trading such products.

For customers who do not have the relevant qualifications, remisiers could ask if they wanted to take an Internet-based tutorial on derivatives that is developed by SGX, said MAS.

Existing customers are not exempt from the review, but remisiers will be given a transition period to comply with the requirement.

The tougher regime will be implemented as soon as possible.

'Generally, proposals which do not require legislative amendments will be implemented first,' said an MAS spokeswoman.

Financial institutions will be expected to adopt the remaining proposals even before legislative implementation as good practice in conducting business with their customers, she said. 'We are targeting all legislative amendments to be effected by the end of 2011.'

Bankers expect the tougher requirements to increase compliance cost but saw it as generally beneficial to customers.

Helen Neo, Maybank Singapore head of consumer banking, said that the proposed customer knowledge assessment requirement was already embedded in its sales advisory structure.

'While this may lead to a stringent sales advisory process, it is beneficial to the customers as this enhanced due diligence is put in place to protect customers' interest before they purchase any investment product.'


My comment : I think this is generally a good move to ensure investors safe guard their money against their ignorance in any investment product.  However, I do not really understand why unit trusts and ETFs fall under the new regulation. I hope they make a review on these two types of investment vehicles.

Oct 16, 2010

Capital appreciation or income distribution ?

I read somewhere someone commented it is better to focus on capital appreciation than income distribution, if one has not achieved a certain level of wealth. There is some truth to this, however, from my personal experience, this is not an easy task to do.

From hindsight, we could have bought some stocks that would see a sharp recovery from the trough in March 2009 and obtained quite a fortune through capital appreciation. But there exists a single problem - who would have known it at that point of time ?

In reality, I have had been trying to do exactly that - identifying potential stocks that might appreciate very fast in price so that I could earn the most in the shortest span of time. I spent much of my time reading up Technical Analysis and its related topics, indulged a lot of personal hours into scanning charts. The result ? I was able to find some good ones and earned some coffee money. Yes, after spending so much time and effort, I managed to only earn a little money enough to buy some nice cups of coffee. This is because I always had sold much too early when they ascended or breakout from their base. Aside from that, I had my fair share of picking the bad eggs too, and I had to cut losses fast in order to protect my capital. My deep involvement in the market had also affected my performance of my day job too. All in all, when I now look back at the past few years, I realise I am about break-even, not much gains or losses. Now, this is something serious that requires me to re-consider and re-evaluate the way I should go about in the stock market.

During the bear market of 2007/2008, most stocks would simply just sink, day in and day out. The stock market was basically DEAD. I could not even earn coffee money back then, but luckily, I still have a job to cling on. What about shorting, you may ask. No, shorting just isn't my cup of tea as I view it as a lot of risk involved. Hence, since I had got nothing much to do, I returned to reading some investing books.

I chanced upon some investing books that cited examples on how, if one had invested a dollar in the US stock market back in the beginning of last century until now, this person would now have amassed quite a substantial fortune, just by re-investing his dividends. This amazed me. I went on to read more on this and found out that there were actually studies made and confirmed this. The most successful example, needless to say, is Mr Warren Buffett. From then on, I decided to change my investment plan.

Coming back to the topic - Capital appreciation or income distribution ? I will definitely go for and have since decided on income distribution. I understand that I am a very small player in this market, but I have a strong belief now that with determination and self-control, I will be able to snowball my little investment and grows it to become bigger and bigger in the future. Hence, I am now working towards my goal as stated in the first post of my blog.

Wishing myself good luck [grin].

Oct 15, 2010

AimsAMPReits Rights Subscription

After a long wait, the result is finally out. Besides being allocated of my entitled 7000 shares (7 lots), I am only given excess of an additional 1000 shares (1 lot). Together, my total investment in AimsAMPReits has increased from 20000 shares (20 lots) to 28000 shares (28 lots). According to their recent announcement, the new issues will also be subjected to the impending dividends too, so I will very much look forward to it [grin].

Sep 30, 2010

Subscribed my AIMSAMPReits Rights Issues

It has been very fraustrating to be unable to find a less crowded ATM for subscribing the Rights Issues of this Reit. But thankfully, today I managed to locate one to proceed with my subscription.

Not only did I fully subscribed my 7000 rights issues (7 Lots), but I also try my luck for excess rights, and hope I can get them too.

For now, I just wait for this excercise of rights issuing to be completed and looking forward to the coming dividend day.

Sep 17, 2010

Starhill Global Reit

Added this Reit into my current portfolio yesterday. It may not be a best price purchase but since I am unable to forcast the price movement, I'm not too concern by it. If it ever goes down much, I will buy more of it to enjoy the benefit of cost averaging. Lastly, I want to say, "Welcome to become a part of my portfolio, Starhill Global !!"

Sep 12, 2010

I have a dream

A dream that I always have.

Yes, you guess it right, it's being financially free. Being able to enjoy what life hands to us, but yet do not have to worry over the bread & butter issues. Imagine, for one moment, I can be gone fishing, or choose to travel wherever and whenever I prefer, without the concern for and bogged down by work commitments. Or, I am able to extend a lending hand to social work and help out those that are in need, probably financially. With financial freedom, I can do much more !!

But how to do it, you may wonder ?

Here's what I plan to do to achieve this goal in my life :
  1. Have a budgeted plan on my income earned through my salaried job(s)
  2. Regulate my expense and spending to the least possible
  3. Save as much as possible
  4. Channel a part of my savings into stocks that provide dividends regularly
  5. Re-invest all the received dividends back into Dividend Stocks
  6. Repeat Step 1 - 5
  7. Invest in physical gold whenever I have spare cash
  8. Invest in real estate whenever I have enough cash
For now, I am doing Step 1 - 5, and hopefully it'll snowball fast and big enough for me to carry out Step 7 & 8. I have detailed my current stock holdings and average monthly dividend income goal on the right-hand side of this blog.

I will update any new purchase and add it into my stock portfolio. I will also aim to increase my monthly dividend income, at least on a per quarter basis.