The Feds had spoken.....

Hi readers,

The time has come! 

Quantitative easing (QE) will end by October 2014 and soon we will see bank interest rates increasing 6 months from october! Mean i got about 7 months to a year to save up some Vitamin M for some reits and blue chips that are heavily leveraged now!

To some, QE ending in October may be a bad news as companies with high bank borrowings will suffer due to rise in interest rates, causing their share price to dip. But for me, this looks like a good news to me as it tells me I can save up some money for good companies whose share prices are very expensive now. Secondly, this piece of news also show me another path where i can start looking at companies with little of zero debt like Sheng Siong (OV8.SI) & Neratel (N01.SI).

Great times are coming ahead and it's about damn time for me to be greedy when other panick!

For my next blog, I will be updating my portfolio as lately I have made some purchases so stay tuned!

Happy investing!

Something I read from the newspapers today

Hi Readers,

It's the Rat Racer again. Today I read an article on the Straits Times on the higher toll fares at the Singapore/Johor customs.

It caught my attention as I felt that it will affect one of the counters on my watchlist: Sheng Siong (OV8.SI).

Based on my previous shopping spree in one of Sheng Siong branches few weeks ago, I realised that majority of their products, be it snacks, biscuits, fresh fruits & veggies and baby product like milk powder and diapers, come from our  neighbouring country, Malaysia. Also, their HQ cum warehouse is located alongisde Woodlands Road which is a very short path to the Woodlands Checkpoint within 10 minutes drive.

(Screenshot from Google Maps IPad App, Showing the location of Sheng Siong's HQ cum Warehouse location and its proximity to Woodland Checkpoint)

Based on these 2 evidences (their products & location of their HQ), I supposed that it is pretty obvious that Sheng Siong will have to pay more toll fares going in and out of Malaysia everyday for their supplies. Be prepared to see a dip in profit due to increased operations cost in their next quarterly financial report!

As of today, Sheng Siong market price is at $0.66. I personally feel that it may dip in the next few months but I can't really tell  by how much because I'm not an expert =). I will be watching this counter very closely from now on. I do not own any Sheng Siong's shares currently.

An article from fool.sg (http://www.fool.sg/2014/09/04/why-has-sheng-siong-group-ltd-fallen-by-5-6-today/) also indicated on 4th September that Sheng Siong is currently proposing a private placement which has caused its market price to dip ever since. I will be expecting this counter to drop further based on what i am observing right now.

Sheng Siong is a good company with ZERO debt and has dividend yield of 4.39%. The dividend yield is not attractive currently but if the price continue to drop to a price about $0.56 and below. This will indeed be a good entrance price as dividend will be yielding around 5% or more if its market price were to really dip to below $0.56. A zero debt company is always good in terms of growth in the long run. 

Well, these are my personal feelings and analysis on Sheng Siong (OV8). Experts may beg to differ(remember, I'm a noob investor!). Any comments are welcomed!

Happy Investing!

Rat Racer