Cache Logistic Trust – What really matters in a REIT

Some numbers are not provided due to the lack of available information

Constituted on 11 February 2010 | Warehouse Properties | Singapore, China & Australia | Portfolio value at 1.3 billion

  1. IDENTIFICATION OF COMPANIES THAT ARE UNDERVALUED.

    • Price to Book Ratio: 1.009 (overvalued by 0.9%)
  2. LEARN ABOUT THEIR NUMBERS

    • Gearing : 66.93% ( Above average reliance on financing for growth)
    • Wale : 4.4 Years
    • Current Ratio : 0.685 ( Unable to pay off short-term debts and long-term obligation if liquidated)
    • Growth Rate : 7% (over 5 years)
    • Cash Flow Per Share : -0.0122
    • Poor management ability ( Decreasing dividend payout | Net income decreasing| Poor cashflow management )screen-shot-2016-10-16-at-6-25-47-pmscreen-shot-2016-10-16-at-6-23-21-pm

Still not a buy for me hais –  due to the management’s ability! Anyway, I have just read finish Benjamin Graham – Intelligent investor!! It’s a really good read that advocates the importance of number! I’ll share more on what I’ve learned on the next post.

p.s I wanted to write about tax evasion…. but…. hais

“+1 knowledge point”

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Fraser Centrepoint Limited Treasury – What really matters in a Bond

Like the Aspial Treasury, I couldn’t find much financial info on the treasury company, I will using the group’s financial number

Matures on 22 May 2020 | 3.65% | Semi-Annually coupon payment | Subsidiary of Fraser Centrepoint Limited | Started in 2011 |

1)  IDENTIFICATION OF BOND BELOW PAR VALUE

  • Current market value : 1.008 ($8 above its par value)

2)  LEARN ABOUT THEIR NUMBERS

  • Debt To Equity: 1.25 (Strong reliance on financing for growth) – But still better than Aspial
  • Growth Performance: -16.94%
  • Current Ratio: 1.84 ( Above average) – Genting is better
  • Below average management ability ( Increasing dividend payout | average net income growth | Poor cashflow management)screen-shot-2016-10-14-at-8-22-43-amscreen-shot-2016-10-14-at-8-22-31-am

The bond is used for the corporate reason such as refinancing loan, financing and increasing general working capital. The numbers are not to my liking and hence I won’t be entering and of course, I’m trying to get my bang for my buck

“+1 knowledge point”

Aspial Treasury- What really matters in a Bond

Due to the lack of financial information on this company, I’ll be doing on the corporate company

Matures on 28 August 2020 (4 more years) | 5.25% | Semi-annually coupon payment | Subsidiary of Aspial Corporation | Founded in 2015 | Jewellery / Maxi Cash / World Class Island (Real estate)

1)  IDENTIFICATION OF BOND BELOW PAR VALUE

  • Current market value : 0.915 ($85 below par value)

2)  LEARN ABOUT THEIR NUMBERS

  • Debt To Equity: 485% ( super high reliance on financing – Not safe)
  • Growth Performance: 6.65%
  • Current Ratio: 2.49 ( Above average) – Genting is better
  • Poor management ability ( Reducing dividend payout | Poor net income growth | Poor cashflow management)screen-shot-2016-10-11-at-12-19-56-pmscreen-shot-2016-10-11-at-12-19-52-pm

 

Even though this bond is one of the highest paying one, I would be more conservative in investing in this company due to its poor management ability. How can you have such a high Debt/Equity ratio with an above average current ratio yet having a poor net income margin??? – something is wrong somewhere.

“+1 Knowledge point”

Singtel – What really matters in a Stock

The more familiar the brand is… the safer it would be??

Diversified Telecommunication Services | M1 & Starhub are industrialized as Wireless Telecom Services – HUH?!?!? | 6 Subsidiaries (Optus, NCS, InSing, Innov8, Amobee, TrustWave) | 1 Partner – Bridge Alliance

1)  IDENTIFICATION OF COMPANIES THAT ARE UNDERVALUED.

  • Price to book ratio : 2.542 ( 1.5 times overvalued)
  • Price to earning ratio :  16.687 ( Over performing – Due to its niche industry)

2)  LEARN ABOUT THEIR NUMBERS

  • Debt To Equity : 36.289 % ( Low reliance on debt for growth)
  • Growth Performance : 0.2332% (Low growth rate)
  • Current Ratio : 0.841 ( inability to pay off short-term debts and long-term obligations, if liquidated now – very weird with such a low debt-to-equity ratio)
  • Cash flow per share : 0.3771 ( And you’re paying $4 a share with a dividend payout of 0.175 per share)
  • Questionable management ability ( Increasing dividend payout | Increasing Net income | Cashflow from operations are decreasing??? choppy numbers?? hmm)screen-shot-2016-10-06-at-12-07-35-pmscreen-shot-2016-10-06-at-12-07-30-pm

There is definitely some fundamental reasons/strategy for all of this BUT…..With such a high premium to pay for at such a low growth rate with questionable numbers….. I choose to say no to conventional ideas on huge corporation.. unless it’s cheaper 🙂 of course, why would u want to buy 1.5 times for an “apple” when you get it cheaper and better elsewhere…. if I’m just patient enough…. will patience get you somewhere RICH???

“1 Knowledge point”

Ascott Residence Trust – What really matters in a REIT

should you just purchase since it’s a big company/well known?

Listed on SGX 2006 (10 Yrs) | 4.9 Billion Asset | Property around the world

  1. IDENTIFICATION OF COMPANIES THAT ARE UNDERVALUED.

    • Price to Earning Ratio : 10.216 (Under Performing – 20 is the mean)
    • Price to Book Ratio : 0.73 ( 27% Discount)
  2. LEARN ABOUT THEIR NUMBERS

    • Gearing : 74.42% ( High dependency on debt to finance growth)
    • Wale : 3
    • Current Ratio : 0.953 (Poor)
    • Growth Rate : -13.3%
    • Cash Flow Per Share : 0.3162  (The “value” of one share you hold through their earnings – Is calculated after tax)
    • Poor management ability ( Decreasing dividend payout | Net income growing (good thing) – But debt is an issue )screen-shot-2016-10-04-at-12-19-45-pmscreen-shot-2016-10-04-at-12-18-51-pm

It’s not a buy for me due to its conflicting management strategy that I can’t really grasp. Additionally, with such a Growth rate and Current ratio…….. Even Suntec looks better

Would you buy?

“+1 Knowledge point”

Suntec – What really matters in a REIT?

Whatever that is written there is my bias opinion and you guys have to remember that!

Park Mall | Suntec City | One Raffles Quay | MBFC properties | 177 Pacific Highway | 98.6% committed occupancy (Averaged out between Office and Retail)

  1. IDENTIFICATION OF COMPANIES THAT ARE UNDERVALUED.

    • Price to Earning Ratio: 12.929
    • Price to Book Ratio: 0.806 ( 19.04% Discount)
  2. LEARN ABOUT THEIR NUMBERS

    • Gearing: 55.08% ( High dependency on debt to finance growth)
    • Wale: 3.4 years (Average between Office & Retail spaces)
    • Current Ratio: 0.56 (Inability to pay off its short-term debts and long-term obligations if the firm is liquidated now! – BAD)
    • Growth Rate: -6.83%
    • Cash Flow Per Share: $0.1372 (The “value” of one share you hold through their earnings – Is calculated after tax)
    • Poor management ability ( Dividend payout are not constant | Net income dropping | Cashflow very choppy with heavy financing )screen-shot-2016-10-01-at-6-03-24-pmscreen-shot-2016-10-01-at-6-04-49-pm

 

In a “Reit” shell, I would have to give it a miss due to its Management instability and a Low probability for a growth rate… Something is wrong, especially with such a high occupancy rate…… My answer is no… what about yours??

+1 Knowledge Point

 

Genting Singapore – What really matters in a Bond

very safe

Perpetual Securities – Get paid first before the shareholders | 5.12% | Hotel, Restaurant & Leisure

1)  IDENTIFICATION OF BOND BELOW PAR VALUE

  • Current market value : 1.030 ( $30 dollars above par value)

2)  LEARN ABOUT THEIR NUMBERS

  • Debt To Equity: 14.09% ( Low reliance on debt)
  • Growth Performance: -35% (Negative growth rate, worst than the previous company)
  • Current Ratio: 8.93 (Very good)
  • Suspicious management ability ( Steady dividend payout – Might be a smokescreen for poor growth/ Net income has reduced drastically)screen-shot-2016-09-28-at-7-13-59-pmscreen-shot-2016-09-28-at-7-13-49-pmScreen Shot 2016-09-28 at 7.15.19 pm.jpg

I wouldn’t buy into the bond (even thou with such a high current ratio – I doubt it will last with such poor performance) or stock as financial statements are really contradicting…. what are your thoughts??

+1 knowledge point