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  • Asked by Anonymous

    Junus Eu
    Junus Eu
    Top Contributor

    Top Contributor (Apr)

    Level 7. Grand Master
    Answered 10h ago
    When I was working as an equities analyst - I had the usual triple screen Bloomberg set-up to reference daily. Because of that, I was able to check the news and stock movements every morning, so much so that it was the replacement for reading the papers in the morning. If there are specific companies that you are interested in, you can easily set up alerts for it!
  • Asked by Anonymous

    Junus Eu
    Junus Eu
    Top Contributor

    Top Contributor (Apr)

    Level 7. Grand Master
    Answered 2w ago
    I don't think its weird, and in fact wish someone gifted me shares! If you already own the stock, then you will need to fill in CDP Form 4.2 (if I am not wrong) to transfer it to their CDP account.
  • Asked by Anonymous

    Tracy Lim
    Tracy Lim
    Level 3. Wonderkid
    Answered 21h ago
    You can take a look at the percentage of the transaction fees to the total price you are paying. In this case you're paying $0.80/share x 100 = $80 Transaction fee = $10 Effectively, you're paying $80+$10 for 100 shares. i.e: Cost per share = $0.90 It means you will need to see the share increase $0.10 before you break even. That means 12.5% increase. After which, you will see a gain. But anything less you are losing. So to answer your question, if you think the stock can increase 12.5% (or $0.10 per share in this case) when you exit, then nope it's not foolish!
  • Asked by Anonymous

    Randy Chai
    Randy Chai, Partnerships & Growth Lead at Seedly
    Level 3. Wonderkid
    Updated 1d ago
    Hi there, Great timing for this question as SingPost has just released their full-year earnings report (for 2018/2019) earlier this month. Citing sources from Yahoo Finance and Singpost's Financial Statement here are Singpost's 8 Key Earning Numbers: 1) Sales Revenue - S$1.56 billion (Up 2.9% YOY) 2) Operating Profit - S$136.3 million (Down 7.2% YOY) - Q4 2018/19 was an outlier (Down 53.4% as compared to Q4 2017/28) 3) Underlying Net Profit - S$100.1 million (Down 5.8% YY) - Net profit before exceptional item, net of tax 4) Earnings Per Share (EPS) - S$0.18 cents (Down from S$5.32 cents YOY) 5) Free Cash Flow - S$120.9 million (Down from S$136.1 million YOY) - Lower operating cashflow this this year (S$186.8 million as compared to S$196.2 million last year) 6) Net Cash Position - S$101.3 million (Up from S$70.1 million YOY) - Largely due to cash generated by operating activities - Borrowing (S$290.9 million) - Bank balance (S$392.2 million) 7) Revenue Growth Per Segement - Post & Parcel (4.1% YOY Growth) - This was bouyed by a strong international mail revenue growth of 9.3% - Logistics (Down 0.3%) - Revenue decline at Quantium Solutions Courier Please was impacted by the depreciation of the Australian dollar against the Singapore dollar - eCommerce (Down 0.3%) - Exiting the U.S market due to intensifying competitive and cost pressures and an increase in customer bankruptcies in the industry - Property (13.5% YOY Growth) - Comprising commercial property rental and the self-storage business derived from rental income from the SingPost Centre retail mall, which commenced operations in October 2017 after a period of redevelopment 8) Dividend of 2 cents per ordinary share (3.5 cents total dividend for this financial year) Other points of consideration include: 1) Buying back of shares (by Temasek Holdings) in September 2018 - Positive 2) Partnership with Alibaba - Positive 3) Partnership with Park N Parcel - Neutral 4) Exiting the U.S market eCommerce - Negative 5) Partnership with Synagie Corporation - Positive In conclusion My personal preference is to invest in companies that shows at least 1.3X share price growth over a 10 year period (plot a linear graph to see if it’s upwards trending overtime). Unfortunately, if this was going to be my first long term investment in the public market, SingPost wouldn’t be where I would like to park my savings in over a 10 year period. However, if you do not have a Post & Parcel/Logistics company in your portfolio, then sure, why not. After all SingPost's share price did manage to grow by 0.305 since their IPO in May 2003 (Highest Closing Price - 2.14 in Jan 2015). P.S. You can learn more about SingPost's financial numbers here on Seedly within our community "(Stocks Discussion) SGX: Singpost SGX: S08?" I hope this will help!
  • Asked by Kelly Wong

  • Asked by Anonymous

  • Asked by Anonymous

    Isaac Chan
    Isaac Chan, Business at NUS
    Top Contributor

    Top Contributor (Apr)

    Level 7. Grand Master
    Answered 1d ago
    TL;DR Lonza seems to have a strong growth profile, and has reinvested a lot into the business. The current valuation is a little too high for me, as cash flows and risks are on the high end. Source: Lonza Business Profile Source: Lonza Lonza Group is a Swiss chemical and biotechnology MNC headquartered in Basel. They also have major facilities in Europe, North America and South Asia. The core competitive advantages of the firm are advanced manufacturing and quality-control systems, superior regulatory expertise and in-depth market knowledge. As of 2018, the firm had more than 100 sites with 15,500 employees. Income Statement For 2018, Lonza had fairly good profitability margins, with a net margin of almost 12%. These margins had weakened since 2017, but they were much better than 2016's figures. Revenue and earnings have also improved over the last few years, although earnings per share had decreased. Balance Sheet As a whole, the balance sheet of the firm seems not bad. Short-term liquidity seems on the weaker end due to the lower amount of current assets relative to current liabilities. Additionally, most of the current assets do not have strong liquidity as well. It seems that short-term liquidity had improved over time, however. Relative to other assets, Lonza seems to hold a healthy amount of debt. When debt is compared to earnings, these figures look good. Overall, the debt profile looks fairly healthy. Overall, it seems that the debt profile of the firm had improved since 2016, although the biggest increase in debt can be seen in 2017. Free Cashflow Analysis For 2018 itself, the free cash flow that the firm produces is quite good. This was by a decrease in fixed assets as well as very strong earnings. However, working capital conditions had consumed more cash flow. Overall, the large increase in free cash flow is caused by the significant decrease in fixed assets as well as improved earnings. This thus resulted in a large improvement in free cash flow to equity as well. This improvement in cash flow probably led to an increase in dividends being paid out. Overall, the dividend payout ratio seems relatively neutral. Efficiency Metrics Overall, the firm seems more inefficient in its use of resources. This could be due to the large amount of capital that the business had taken on recently which has yet to generate the expected returns. When we look at ROE< we can see that the main cause of ROE being low is weak Asset Turnover. This is despite high net margins and high Asset/Equity. The company also reinvested much fewer resources in 2018 as compared to 2017. So far, the Return on Capital for the firm is fairly low as well, which could mean that higher reinvestment may not bring in many returns. Valuation As a whole, the valuation of the firm is very high. This could be due to how the market has already priced in the growth aspects of the firm. This has resulted in free cash flow yield and free cash flow to equity yield that is on the low end. In some instances, the companion variables to some of the multiples such as Net Margin and NOPAT margin are good, which could justify some of the valuation metrics. As a whole, however, I do think that the valuation for the shares could be too high. Cost of Capital Overall, it seems that the firm's cost of capital is lowered by the lower cost of debt, but increases due to the higher cost of equity. This is the result of the high beta of 1.4. Another driver for the increase in the cost of capital is the high market cap of the firm. Altogether, this produces a WACC of 8.53%, that is higher than the ROIC of 7.65%. Hence for investors, their capital injections are incurring most cost than returns, which is quite a bad sign. One reason for this low ROIC could be due to the long gestation period of the invested assets that have not materialised yet. Closing Thoughts Source: Lonza I like the profitability of the business, but I'm more worried about the debt profile as well as cash flows. The valuation of the business seems a little too high for the current earnings of the firm. Although the market has probably priced in growth potential, I'm also concerned about the high market risk involved for shareholders.
  • Asked by Anonymous

    Isaac Chan
    Isaac Chan, Business at NUS
    Top Contributor

    Top Contributor (Apr)

    Level 7. Grand Master
    Answered 1d ago
    TL;DR The financials of the business don't seem very strong due to high debt levels and weak cash flows. The valuation of the business also seems too high. There are lower risk and cost associated with capital, which might lead to a higher valuation of the firm. Source: Top Glove Business Profile Source: ABC Top Glove is a large manufacturer of gloves that operates in Malaysia, Thailand and China, with offices in the US as well. The company captures 26% of the world market share and serves the healthcare and non-healthcare segment. All in all, Top Glove serves 2,000 customers internationally. They have also been expanding rapidly through M&A, seeking to capture 30% of the global market share by 2020. Source: The Edge Markets Income Statement For 2018 itself, the margins of the firm look pretty good. These margins have also improved over time, which shows that the firm has become more profitable. However, despite revenue growth, the earnings of the business have fallen. This means that despite a drop in earnings, profit had improved. Balance Sheet For 2018, the balance sheet of the firm seems weak. This is due to short-term liquidity being quite weak, with debt to earnings ratios being weak as well. Hence, the default risk for the firm would be on the high end. These metrics had weakened over time as the company took on more and more debt. Cashflows For 2018, the cash flows of the firm seem fairly weak as well, with a free cash flow margin of 3.54% only. This is due to high reinvestment needs which had resulted in weak cash flows. Free Cashflows had decreased YOY due to higher reinvestment in fixed assets as well as working capital. This occured despite an increase in earnings from the previous year. Given their relatively high dividend payout ratio, it might be unlikely that the firm will continue to pay out dividends. The high free cashflow to equity is caused by a lot of debt being taken on. If these funds are used for investment, then there will be less cashflow for dividends. Efficiency Metrics As a whole, the firm is quite efficient in its use of capital. The high ROE figure is enabled by high net profit margins, but also by good asset turnover and low equity multiplier. As we can see, the reinvestment rate is very high, which reduced free cashflows. However, return on capital is very high too, which could suggest that the firm would have very strong growth in earnings the following year if we hold ROC constant. Valuation As a whole, the firm seems to have a pretty good valuation for some metric, while weak metrics for others. This is caused by very high multiples, except for P/E and P/EG ratio. This could be due to several reasons such as the very EV from the large amounts of debt, as well as the low free cash flow metrics. The companion variables look good, but the valuation might be too high. Perhaps most investors had probably priced their shares based on cash flow growth in the future, which had not materialised yet. Cost of Capital Astonishingly, their cost of capital is very low, due to their very strong interest coverage ratio, but also due to the negative beta that the shares trade at. Their ROIC is much higher than the cost of capital, which suggest that the firm is generating a lot of value based on invested capital.
  • Asked by Anonymous

    Tracy Lim
    Tracy Lim
    Level 3. Wonderkid
    Updated 1d ago
    TL;DR: Riverstone is currently trading at its 52-week low. Revenue in 1Q2019 saw a 14.6% increase YoY. Business overview Riverstone is a Malaysia-based company that specialises in manufacturing cleanroom and healthcare gloves. Incorporated in 1991, they have since received significant awards and certifications. Share price The share price of Riverstone is trading at $0.97 (as of 17 May 2019). The 52-week L/H is at $0.96/$1.24, i.e Riverstone is trading near its 52-week low. Revenue portfolio Financials note that figures are in RM Dividend payout ratio of 40%, with a dividend per share of 7.0 sen per share. P/E ratio sits at 16.6, which is pretty alright, not a great bargain but it could have been undermined by the lower profits. Their cash will be able to cover all their short and long term debt. 1Q2019 performance Revenue in the first quarter grew, but the cost of goods increased thus leading to an overall decrease in net profits of 2.8%. Now they are undergoing phase six of their capacity expansion plans which they expect to add 1.4 billion pieces to amass a total production capacity of 10.4 billion pieces of gloves per annum by end FY2019. SWOT Analysis Strengths - Expanding its production plants, which can bring about greater economies of scale with higher production. - R&D and technical expertise: Being in the field for 28 years, they possess the strength in research and product development to produce high-quality healthcare gloves and that is used by multinational corporations. Opportunities - According to the Malaysian Rubber Glove Manufacturers Association, the rubber glove industry has been growing at an average of 8% to 10% for the past 25 years, and we expect this to continue in FY19. This is underpinned by the growth in the healthcare industry, an increase in hygiene standards and economic growth in emerging economies. Threats - High competition from other glove makers (such as in China), triggering a price war that impacts their margins and they are not able to pass on the rising costs due to competitiveness. - A shortage of raw materials led to a 10.0% hike in average raw material prices, while a shortage of manpower toward the last two quarters affected their operating performance. They also faced a weakening US Dollar, a currency where the majority of our sales are denominated in. Conclusion In the first quarter of 2019, revenue increased but profits decreased. A decrease in profits doesn’t mean that we shouldn’t consider this stock. Although they are faced with macroeconomic risks, I feel that the fundamentals of this company are pretty strong, and they are undergoing expansion too which means higher revenue. Links: https://seekingalpha.com/article/4231751-defensive-growth-opportunities-growing-medical-glove-market
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