Investors must be wondering if NetLink NBN Trust would do an Asian Pay TV Trust (APTT) or Hutchison Port Holdings (HPH) Trust. Both the unit prices of APTT and HPH suffered catastrophic meltdowns in recent years due to declining business fundamentals. Incidentally, Temasek Holdings is a major shareholder in all the three trusts. Even though both APTT and HPH Trust are favoured by investors for their high yields, the plunge in their unit prices would have offset the returns. Thus, the important lesson for NetLink NBN Trust investors is never judge a trust by its yield. Always make the effort to understand the business fundamentals when investing in equities. While big boys like Temasek Holdings can afford to lose monies in their investments, retail investors surely don’t have such deep po

At 30 years old, I had 6 years of investing under my belt.  But my returns was heading nowhere. One of the main reasons was that I was trying a lot of different things. So I told myself, its time not to mess around anymore and try one method that I feel goes best with my character. Then I doubled down on it. I lean towards investing for dividends. And what a friend said about respecting value makes sense.  So I doubled down on value investing with a focus on finding dividend paying companies.  I been doing that since then, and regular readers would know where to check how I am doing.  Why Investing with a Tilt Towards Dividends? Dividend investing has a lot of appeal, and I think the reason is that people likes to be validated that they are slowly getting a cash flow pa

You give some people whose job is to invest money, and by a lot of standards they are good at it.  Shockingly only 49% of their picks made money. Some of them was successful only 30% of the time.  At the end of these, almost non of them lost money. They still made a lot of money out of it.  I think this was the part of the article that caught my attention.  The main reason is that it is something that is not often explain in a book, or by course trainers, or in video how to navigate this problem.  A lot of the stocks that you come across will look like they are the best picks.  Some of these, you didn’t do the prospecting yourself. You followed someone you assessed as an astute investor (and correctly so by all measure), yet after 5 years, your results l

2019 started off very well as my portfolio recovered partially. Not in all but it has consoled my heart. Here are some of the updates.Asian Pay Television Trust I have a residual portfolio of 32,000 shares which I sold it earlier this year at $0.127. I know that it has recovered but I was looking at the statistics and I don't think there is any reason for it to go up. Thus, I sold it off and look for other opportunities.Sasseur REIT Looking at the statistics of Sasseur REIT and the recent drop in price, it has become attractive that I actually bought 60,000 shares at $0.64. Thus it is worth about $38,000. The reason is that it is trading at an attractive rate of 9.6% yield and it is also trading at the discount to its NAV. Currently, it is the highest yielding REIT which is still trading b

What an absolute nightmare it is for investors. The disastrous collapse of Asian Pay TV Trust unit price is something that I have never seen for a business trust. Since its IPO in 2013, the performance of APTT unit price is nothing short of shambolic. From IPO price of $0.97, APTT unit price suffered an incredible meltdown within six years as the unit price slumped to the current abysmal level of $0.13. In fact, investors never had a good sleep with this counter as APTT unit price never exceed the IPO price level after its much-hyped listing. Of course, die-hard fans of Asian Pay TV Trust would argue that this trust is one of the best yield counters in Singapore Exchange. In fact, over 43 cents per unit in distributions had been declared since IPO (including Q3 2018 distribution). But give

Most valuations' case study tends to focus on companies that are exhibiting positive growth rate in their earnings or cashflow over the next 5 years.They project the running cashflow rate by forecasting them over the next five years then discount them to the present value using a predetermined wacc rate.The alternative is to use the Gordon Growth Model to identify the company's terminal growth rate then have them discounted back over the present value using the same method.The terminal value of a company is a rough approximation of its future value at some date beyond which specific cash flows cannot be estimated.Example of a Gordon Growth Model using Terminal Growth RateIf you are a sell-side analyst working in a large corporation, it makes sense that you want to be covering stories that

Current Price on 28th Dec 2018 = S$0.335Yield = 8.77%  Price-to-book Ratio = 0.434Assets per unit = $2.138Debt per unit = $1.366 (including current liabilities and non-controlling interest)Gearing = 63.9%While reading and refamiliarising myself with HPH Trust, I realize that there is a substantial non-controlling interest appearing as equity in the balance sheet which unitholders don't own. Thus, it affected the price-to-book ratio which I have always been using to calculate so now I am including it as liabilities for ease of comparison for people like us. Here are the statistics.With 8.77%, it is yielding high although I think it is not high enough considering that it is a port trust rather than a real estate investment trust. Its price-to-book ratio is rerated to be 0.434 which mean