City Developments Limited (SGX: C09), or CDL for short, is a real estate company. Its segments include property development, hotel operations, rental properties and others. In this article, I want to dig deep into City Developments’ return on equity, or ROE. The choice of ROE Why ROE, some of you might be asking? That’s because the financial metric gives investors important insights on a company’s ability to generate a profit using the shareholders’ capital it has. A ROE of 20% means that a company generates $0.20 in profit for every dollar of shareholders’ capital invested. In general, the higher the ROE, the more profitable a company is. A high ROE can also be a sign that a company has a high-quality business. That being said, it’s worth noting that the use of high leve

1. SPH Reit  --  4th Jan 20192. SPH  --  11th Jan 20193. First Reit  --  16th Jan 20194. FrasersCom Trust  --  18th Jan 20195. Kep Reit  --  21st Jan 20196. Frasers Cpt Trust  --  21st Jan 20197. Mapletreelog Trust  --  21st Jan 20198. Kep DC Reit  --  22nd Jan 20199. Kep Infra Trust  --  22nd Jan 201910. MapletreeInd Trust  --  22nd Jan 201911. MapletreeCom Trust  --  23rd Jan 201912. Kep T&T  --  23rd Jan 201913. Suntec Reit  --  23rd Jan 201914. CapitaMall Trust  --  23rd Jan 201915. SGX  --  24th Jan 201916. Kep-KBS US Reit  --  24th Jan 201917. Kep Corp  --  24th Jan 201918. Frasers L&T  --  24th Jan

In this article, we continue to highlight some of CIMB’s top alpha picks for the New Year. For investors who are seeking to outperform the market, here are four large cap stocks that CIMB thinks will fit your investment goal in 2019. Investors Takeaway: Kick Off 2019 With These 4 Alpha Large Caps By CIMB CapitaLand According to CIMB, CapitaLand managed to put in a strong performance in 2018, achieving a 9M18 return-on-equity (ROE) of 6.9 percent. This puts it well on track to hit its annual ROE eight percent target and positions CapitaLand for a strong year in 2019. Heading into 2019, CIMB notes that strong capital deployment following the divestment of $4 billion of assets and $6.1 billion of new investments announced to-date should continue to drive forward ROE expansion. In 2019, Ca

In today’s connected markets, macro events in one market can have rippling impact on the world. For example, the trade war spat between the two largest economies in the world has created uncertainty over global economic growth in 2019. The stock market was starting to find its footing until the unthinkable trade war took place. According to CIMB, here are some things investors should be looking out for in the market that would determine the market outlook in 2019. Trade War Is Here To Stay For investors who are looking for a cease fire to the trade war to re-lift market spirits, you might have to wait further. CIMB notes that the trade war spatter is likely to continue in 2019 and is not going to cease fire anytime soon (despite recent optimism of a deal). While it is clear that business

Welcome to a brand-new week, everyone. Here are three things about the local stock market that you might be interested in today. 1. The Straits Times Index (SGX: ^STI) climbed 43.6 points, or 1.4%, to end the day at 3,102.8. Of the 30 index components, 22 finished in the green, with Venture Corporation Ltd (SGX: V03) leading the pack. The electronics manufacturing service provider’s shares rose 5.3% to S$14.40 each. Meanwhile, the biggest loser of the index was Dairy Farm International Holdings Ltd (SGX: D01), which fell 1% to US$9.01. Three other blue-chips finished Monday in the red, with the remaining four ending the day unchanged. 2. CapitaLand Limited (SGX: C31) is acquiring a prime office building in Shanghai, China. In an announcement before the stock market opened today, CapitaL

The Straits Times Index (STI) is made up of the 30 strongest and most liquid stocks listed in Singapore. Comprising close to 80% of the entire market value in Singapore, the returns that the stocks on the STI provides is essentially the market returns or benchmark returns. For investors who are new or prefer taking a hands-off approach, being able to invest in the STI can be the most practical way to invest. This is primarily because it offers several advantages such as diversifying our investment portfolio with just one investment as well as receiving the market returns without requiring much knowledge or spending time monitoring and adjusting our portfolios. Currently, there are two listed STI exchange traded funds (ETFs) – the SPDR STI ETF and the Nikko AM Singapore STI ETF – that w

The revised cooling measures implemented in the middle of 2018 has finally pushed Q418 sales to a dip since Q217. It was only slightly down by 0.1% quarter on quarter and most of the decline was mainly due to landed sales so in all essence the demand for private property is still pretty buoyant.With the introduction of the new cooling measures, which coincides along with the increase in tandem in interest rates, it brings the share price of City Development down from the 52 week high of $13.6 to the last closing price of $8.08.That is a very sharp decline and if you are an investor who buys at the peak and it can get very painful to see your portfolio colored in a patriotic sea of red. But is there value now in the company after such a steep decline? Cooling Measures In This DecadeFor

2018 was a challenging year for Singapore investors. The Straits Times Index (SGX: ^STI), Singapore’s stock market barometer, was down by 9.8% in 2018. There are a number of stocks, however, that saw poorer performance in 2018. This article shows the remaining worst performers for 2018 (for the sixth to fourth worst performers, you can head here). The third worst performer This spot belongs to Golden Agri-Resources Ltd (SGX: E5H). In 2018, the company’s share price declined by 33.8%. For those who are new to the company, Golden Agri is an integrated palm oil company with large oil palm plantations in Indonesia. The firm has a presence in the entire value chain of the palm oil industry. The first nine months of 2018 have not been a good time for Golden Agri as it experienced declines in

In my last article, I shared that share buybacks are a great way for companies to (indirectly) return money to shareholders, and boost shareholder value. Share buybacks could also be a signal that the management thinks the company’s shares are undervalued. Knowing this, investors usually take heed when a company repurchases a large number of shares over a short period of time. As in the case of City Developments Limited (CDL): Date of BuybackNo. of SharesCostAverage Price Total2,400,000$21,445,467.05 $8.94 16 August 2018 300,000$2,852,198.31$9.51 17 August 2018200,000$1,929,731.93$9.65 23 August 2018100,000$943,442.64$9.43 24 August 2018100,000$929,218.25$9.29 29 August 2018100,000$951,007.41$9.51 30 August 2018100,000$933,153.48 $9.33 31 Au

Investors of City Developments Limited (CDL) can be forgiven for punching the wall. From a high of $13.50 in March 2018, CDL share price collapsed to the current dismal level of $8.23. Out of nowhere, CDL share price suffered a devastating train wreck, causing many investors to lose their pants. What has gone wrong with this leading light of SGX? As one of the biggest real estate developers in Singapore, CDL share price has withstood the test of time and has weathered numerous property cycles through the decades. This time, I am absolutely convinced it will be no different. With market capitalization of $7.6 billion, CDL is certainly one of the largest components among the prestigious Straits Times Index (STI). This means that CDL share price is extremely prone to fluctuations because sho

It was not long after Diwali was over when Singapore started getting ready for the next major festive event – Christmas. I sometimes wonder why we can’t celebrate Diwali just that little bit longer. Diwali, or the Festival of Light, for me is a reminder of the victory of light over darkness. It’s about the triumph of knowledge over ignorance. It is also about appreciating and understanding what is going on around us. What’s volatility? It was around the time of Diwali when I was asked by the morning crew on MoneyFM why Genting Singapore (SGX: G13), City Developments (SGX: C09) and Venture Corp (SGX: V03) were the three worst performers in the Straits Times Index (SGX: ^STI) in October. Point is, I don’t think anyone really knows. But what I do know is that October certainly l

Here are some of the most popular articles that have appeared on The Motley Fool Singapore’s website for the week. 3 Singapore Blue-Chip Shares That Warren Buffett Might Like Ever wanted to invest in stable companies that are part of the Straits Times Index (SGX: ^STI)? Look no further. In this article, I look at three blue-chips that have wide economic moats and why they could make good investments. Companies discussed in the article: Singapore Exchange Limited (SGX: S68), DBS Group Holdings Ltd (SGX: D05) and SATS Ltd (SGX: S58). 3 REITS That Have More Than 8% Yield Right Now Lawrence Nga explores three real estate investment trusts (REITs) that have distribution yields of above 8%. They are not excessively valued in terms of their book values as well. REITs discussed in the article a

Ted Sturgeon was a sci-fi author who claims that "90% of everything is crap" and this chapter proposes that the same applies for the stock market. This is useful when you decide what kind of media to indulge in. 90% of all fiction is crap. 90% of all Netflix shows are crap. In a moment of self-reflection, perhaps 90% of investment training is crap so I need to constantly improve my training slides.While preparing stock screens for this weekend's class to demonstrate this concept, I wanted to see how many stocks fall into this category in SGX :a) Cannot be a ADR, GDR, China Stock or a REIT.b) Cannot have a market capitalisation below $50M. c) Must have revenue above 150% of the average of the remaining counters after step (b).d) Must have an operating cash flow above the average o

Property stocks took a beating in July when the Singapore government implemented additional property cooling measures. Since then, private condominium prices have declined for two straight months, and analysts expect further corrections in the months ahead. That said, I still believe the long-term prospects of property in Singapore remains sound. The Monetary Authority of Singapore has said that it wants property prices to rise reasonably and in tandem with wage increases. As such, over the much longer time frame, property prices should increase as wages rise in Singapore. With property stocks trading some way off their peak, now may be a good time to look for bargains. Here’s a quick look at how the three blue-chip property stocks are valued now. Price-to-book ratio The price-to-book ra

1. SPH Reit  --  11th Oct 20182. Keppel Reit  --  15th Oct 20183. Keppel DC Reit  --  16th Oct 20184. Kep Infra Trust  --  16th Oct 20185. First Reit  --  16th Oct 20186. Kep-KBS US Reit  --  17th Oct 20187. Kep T&T  --  17th Oct 20188. Kep Corp  --  18th Oct 20189. FrasersCom Trust  --  19th Oct 201810. SGX  --  19th Oct 201811. Mapletreelog Trust  --  22nd Oct 201812. MapletreeInd Trust  --  23rd Oct 201813. Frasers Cpt Trust  --  24th Oct 201814. MapletreeCom Trust  --  24th Oct 201815. Suntec Reit  --  24th Oct 201816. M1  --  24th Oct201817. Semb Mar  --  25th Oct 201818. Parkway Life  --  25th Oct 20181

The STI fell 7.3 percent in the month of October as trade war worries, rising interest rates and correction in the US stock market weighed on the local market. The underperformance was underlined by weaker performance from property and O&G stocks after new property measures were announced and amidst the oil price correction. DBS: STI To End Year On A Weaker Note Given the uncertainty over impact of the US-China trade war and rising interest rates environment, DBS foresees STI to end on a weaker note at the end of the year. DBS lowered its target for STI from 3,550 to 3,200. In particular, DBS is concerned that bank stocks could be a potential drag for the STI. However, the recent fall in market has created more attractive valuation levels. Going forward, DBS recommends investors to ado

Property stocks have certainly taken a hit in recent months. The Singapore government’s sudden announcement of additional property cooling measures caused related stocks to tumble in July. City Developments Limited (SGX: C09), one of the three property developers in the Straits Times Index (SGX: ^STI) has been one of the hardest hit with prices down more than 26% year-to-date. Last week, CDL released its earnings results for the third quarter of 2018. Here are the important points to take note of. The key numbers 1. Revenue for the quarter was up 17.7% to S$1.0 billion. Gross profit grew 13% to S$485.7 million. 2. Profit before tax was up 4.6% to S$242.5 million, with profit attributable to owners 10.4% higher at S$161.8 million. 3. Year-to-date, basic earnings per share was 48.4 cents,

After the Urban Redevelopment Authority (URA) released the final 3Q18 private property index data on 26 October 2018, all eyes are on the stock price performance of several property counters, including the bulge bracket names like CapitaLand, City Developments (CityDev), and UOL Group (UOL). For the 3Q18, the PPI showed a 0.5 percent rise quarter-on-quarter (QoQ), one of the slowest paces of rise this year. The index had a 3.9 per cent rise in 1Q18, and a 3.4 percent rise in 2Q18. Final new home sales figures showed 3,012 private residential units sold in the third quarter, compared to 2,366 in 2Q18. The increase in new sales could be attributed to last minute panic buying before the implementation of the new cooling measures. Source: URA However, despite that, the overall picture for rea

Companies which buyback their shares could signal to the market that their shares are undervalued. Last month, 29 companies repurchased 30.8 million shares or units for a total amount of S$59.9 million, according to a report released by the Singapore Exchange Limited (SGX: S68) recently. The October buyback was 36% down from September’s buyback of S$94 million. In October, some companies were on blackout periods, which means that they cannot conduct share repurchases ahead of their earnings release. The top six companies with the largest share buyback amount in October 2018 were DBS Group Holdings Ltd (SGX: D05), Keppel REIT (SGX: K71U), City Developments Limited (SGX: C09), SATS Ltd (SGX: S58), Singapore Press Holdings Limited (SGX: T39), and Singapore Exchange. The six companies spe

October has been a really topsy-turvy month for US equities, which had spill over effects around the world, including the Singapore market. The STI declined from 3257.1 to 3018.8 in October, which represents a 7.3% dip. During market downturns, it is common for companies to take advantage of the dip in prices to execute share buyback mandates. Thus, it is not surprising to see that in October, 29 SGX-listed companies made share buybacks for a total consideration of $59.9 million. October’s buyback activity brought the total share buyback consideration in 2018 to S$1.34 billion. This is more than 3 times the volume compared to whole of 2017. For this week’s episode of 4 Stocks This Week, we’ll look at the 4 companies with the largest share buyback considerations for October – namely