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Summary of February 2017 Transactions

In the month of February 2017, I made two sell transactions. I have divested Far East Hospitality Trust and NeraTel. You can read more on Far East Hospitality Trust at Far East Hospitality Trust Undervalued or Value Trap?  and NeraTel at NeraTel – An Abandoned Child.

There are a few stocks in my watch list such as Acromec, ISOTeam, Hock Lian Seng, Tai Sin Electric and many more but I shall not be investing in them now with the cash gotten from the sale of Far East Hospitality Trust and NeraTel. The reason is I need more time to do more research and analysis. After a year on, I am still sticking to investing for dividends. If the stock is a growth stock, it will be a plus. (more…)

NeraTel – An Abandoned Child

Prior to writing this post, I have divested all my NeraTel shares at a loss of 14.2%. This is including of the dividends I have collected. I shall share the reasons why I made the decision to do so.

NeraTel announced its 4Q2016 financial results on 22nd February 2017. After the sale of its payment solution business to Ingenico, NeraTel business is left with the Telecommunication business segment and Network Infrastructure business segment.

In 4Q2016, revenue from the Telecommunication business segment decreased slightly by 4% ($0.8 million) from $19.1 million to $18.3 million. Revenue from the Network Infrastructure business segment improved by 54.0% ($11.0 million) from $20.3 million to $31.3 million.

If we compare FY16 with FY15, revenue increased by 22.3% ($19.9 million) from $134.8 million to $164.9 million. Although revenue has increased, gross profit for FY 2016 declined by 6.6% from $45.2 million to $42.2 million. Why? (more…)

Frasers Commercial Trust Long Term Play in Office Rental

Frasers Commercial Trust Logo

While most REITs are announcing their 4Q2016 or FY2016 financial results, Frasers Commercial Trust is actually announcing their 1Q2017 financial results.

Net Property Income fell by estimated 1% due to lower occupancy for China Square Central and Central Park. We understand that China Square Central has started the development of a 16 storey hotel and the construction works will definitely affect occupancy at China Square Central. The income disruption is supplemented by S$0.9 million capital distribution. Development work is expected to be completed by mid-2019.

There are certainly many construction works going on for Frasers Commercial Trust with hotel development works at China Square Central and Alexandra Technopark performing asset enhancement works soon.

(more…)

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