Tuesday, October 19, 2021

TUB Snippets 2: SGX Companies

If you have read my old posts, you will know I still invest in SGX Companies. But since I have gotten into shorter term active trading, these are some of the SGX companies that I am VESTED IN for potential short term investment period.

1. Asian Pay Television Trust (Vested at S$0.132)

Major shareholder shift as of 2021.

As of Jul 21 – A press release was announced:

"NCC (National Communications Commission of Taiwan) rejects Da Da Digital’s proposed transaction to acquire 65% indirect interest in the Trustee-Manager of APTT

  • NCC’s decision has no impact on the operations and cash flows of APTT or TBC, nor the distribution guidance of 1.0 Singapore cent per unit for 2021
  • Araedis Investment Pte. Ltd., an associate of Da Da Digital, has been increasing its stake in APTT; remains committed to growing its partnership with APTT and TBC."

The company is also involved in providing broadband services in Taiwan, and as per Q2 FY21 Report:

"TBC remains on track to capture data backhaul opportunities in Taiwan. Its network investments are now past the peak, after increasing its fibre density from an average of more than 750 end-homes per fibre node three years ago to less than 250 end[1]homes per fibre node today – removing network congestion and allowing data to be transmitted at higher speeds. This places TBC in a good position to support wireless operators in the build out of their 5G networks – multi-year investments that present opportunities for the Trust."

Insiders have been purchasing shares and in Q2 FY21 Report, there is this point which captures my attention:

“The Board has re-affirmed the distribution guidance for the year ending 31 December 2021. The distribution for 2021 is expected to remain at 1.0 cent per unit...Distribution guidance for 2022 is expected to be announced when APTT releases its third quarter results for 2021.”

I am looking forward to Q3 Results and its dividend guidance in 2022.

2. First Ship Lease Trust (Vested at S$0.084)

Dividend released for FY2020 is US$0.045 per share against share price of around S$0.089 at that point in time.

Dividend for Q2 FY21 was announced to be US$0.02, which similar share price.

During last 2 years, the trust had turn around by selling a few vessels, reduced debt significantly (Zero net debt) and increased its cash significantly as well.

In Sep 21, it has since disposed another big vessel on spot charter and purchase an additional vessel with 8 years charter.

Summary of the fleet of the trust below:

First Ship Lease Presentation

As of Q2 FY21 report – the company also stated the following:

“With 7 of the 11 vessels in the portfolio operating under fixed-rate period charters and contracted revenue of approx. US$22.3 million…”

Currently, the trust now has predictable cashflow in view of its long-term charter and a stable cash hoard with lower net debt.

Let’s also not forget about the Marco energy crisis that is on-going now which will definitely assist the trust in the spot market.

Again, I looked forward to the next Q3 FY 21 announcement. If necessary, we may need to wait till Q4 FY 21 announcement for a fat dividend announcement.

3. Metech International Limited (Vested at S$0.275)

There was a placement issue at S$0.21 per share in early Oct 21.

After that, the company released numerous press releases.

This is how I summarizes the story:

Lab grown diamond in SG, Cutting and polish in India, getting tested and sell thru exchanges in China for retail and industrial purposes, and also sell thru Korean/Swiss retailers.

Basically, the company is changing with a focus on lab-grown diamond. For the uninitiated, there is also a shortage of rough diamond around the world currently.

This could be a longer-term approach – nibbling in small positions and waiting for the big results to come, in terms of financials – probably in the next 2 quarters.

4. Hatten land (Vested at S$0.072)

This is 1 of the companies that is listed in SGX and getting into Bitcoin mining.

To fully explain this business, you should read the following 2 bulls thesis that summarizes the positives:

By cow888:

“…the transformation of Hatten Land's assets into hubs for blockchain and other digital activities that will contribute to the growth and transformation of Melaka…Looks like the developer has got upper hand in their core businesses such as in their properties in many areas in Melaka, to develop their new initiative in the blockchain and crypto world…Rigs will be installed starting from the fourth quarter of this year (4Q21) in phases under the strategic collaboration and management agreement between Hatten Land's wholly-owned subsidiary Hatten Technology (S) Pte Ltd (HTPL) and Singapore-based Frontier, which currently operates over 700 cryptomining rigs in Singapore…”

Read the full cow888 IN post in this link.

By Swee Swee IN post:

“There have been a series of positive announcements by the company recently. It is moving into new growth areas in the form of crypto mining, blockchain, NFT, solar energy implementation etc, with the aim of building an ecosystem of tokenised assets in Malacca.

It has raised some funds through a small placement exercise and garnered some partnerships. Meanwhile, its investment properties in Malacca should be rebounding back strongly now that Malaysia has achieved a 90% vaccination rate and interstate travelling is allowed for the vaccinated. Its Malacca shopping malls should be crowded again. I have stayed in their service apartments in Malacca and they are new and well maintained…”

Read the full Swee Swee IN post in this link.

My plan for this is hold a small position and wait for another breakout, since Bitcoin is volatile.

So these are my views of the 4 SGX listed companies and hope you liked it.

If you are interested, please do bookmark this Blog or follow me on TUBInvesting FB, or Fundamental Scorecard Telegram Group (please google for the links!).

Stay tune for my next post!

Friday, October 15, 2021

TUB Snippets 1: Tapestry Inc (TPR)

Prior to talking about <Company 6>. I decided to start a new series on this blog called “TUB Snippets”. It will be a short and simple analysis that I did on companies I had looked at.

As I revealed in my post on my portfolio, I have a 3rd portfolio for active trading and also many small positions in the 3 portfolios (25% of the combined portfolio in 17 companies).

I realize as the economy move forward, there are many long term opportunities as well as short term opportunities. Thus, I will do small pockets of fast trading/short term trading (3 to 6 months) to take advantage of possible short term positive effects.

Short term opportunities come from news or sudden mispricing, due to misreading of financials, or short-term economic shift – such as the energy crisis now, inflation crisis and the upcoming festive season.

1 of the opportunities was Waitr Holdings Inc (WTRH).

Screenshot from Finviz

To keep the story short, the company intend to change the business model from solely delivery to an eco payment system for its partners through a series of acquisition (CEO very rude in the last transcript). Then one of the analyst did the below in Aug 21:

Screenshot from Seeking alpha

After the company falls to US$0.80+, it was revealed that Morgan Stanley had a 10% stake and the price rockets to about US$1.35. That's when I sold the whole position.

Screenshot from Seeking alpha

So today, I will be revealing a VESTED short term position I have – The company is Tapestry (TPR).

For those that followed me on my Fundamental Scorecard Telegram Group and InvestingNote, you will understand now why I put up these polls lately.

Screenshot of Fundamental Scorecard Telegram Group

Screenshot of InvestingNote

It was to find out the CURRENT popularity/sales of Coach and Kate Spade handbags/products – which Tapestry owns. Basically, from the small number of votes, we can still conclude there is still brand value among these 2 brands.

So why TPR?

  • Compare against Burberry, Capri, Prada – it has the lowest valuation in terms of ratios.
  • Significant increase in revenue recently, the share price should not have been down trending.
  • With the amount of excess cash in the market and festive season coming along and economy opening up, I believe consumer goods will benefit.
  • If you look at Facebook now, many people are doing Facebook live to sell overseas branded goods during to the lack of travelling overseas. So I foresee another channel for the revenue to rise.
  • Even my wife, whom haven’t been buying branded stuff for some time, got influence by these Facebook Live event and bought a coach wallet and a coach bag.
  • In the next 2 quarters I foresee a better revenue figure. 

Screenshot of Fundamental Scorecard Website

Do note that this is a short term position. Thus, instead of the regular factors, I will still compare the company against the competitors, look for short term catalysts (which was already listed) and ensure that the company will survive/not go busted (using the Fundamental Scorecard above).

As per the company’s fundamental scorecard, the balance sheet seems neutral and the FCF has improved significantly in the last year. This will have provided some comfortability for me to invest in the company.

With that, this is the summary:

  • Lowest valuation among selected competitors
  • Festive Season/Revenge Shopping/Excessive Liquidity/Economy Opening Up/Facebook Live
  • Higher Revenue in the next 2 quarters (upcoming Nov Results and next Feb/Mar Results)
  • Sustainable Balance Sheet with recovery in Revenue/Net profit/FCF
  • Holding period - Estimated about 3 to 6 months/till breakout.

This is the first company under the “TUB Snippets” and I hope you like this series.

If you have a company you will like me to look into, do comment on the post/platform. I will try my best to do it.

If you are interested, please do bookmark this Blog or follow me on TUBInvesting FB, or Fundamental Scorecard Telegram Group (please google for the links!).

Stay tune for my next post!

Saturday, October 9, 2021

2021 Strategy Series - Company 8 that starts with H

Vested with an initial share price of US$7.25 and an average share price at US$6.81 (including premiums over 10 options)

Read till the end to know the name of Company 8.

After my last blog post, there seem to be more people asking about <Company 8> rather than <Company 6>. Maybe because 8 means (Fa/Huat/Prosperity) in Chinese?

Thus, for this post I will be revealing Company 8 first and it will be called “8” in this post.

Part 1 – What the Company Does?

As per Seekingalpha, “8 operates as a cryptocurrency mining company in North America. The company engages in industrial scale bitcoin mining operations. It also owns and operates 38 BlockBoxes in Drumheller, Alberta; and 56 BlockBoxes in Medicine Hat, Alberta. The company is headquartered in Toronto, Canada.”

Yes – it is a crypto-mining firm and an industry I had specifically chosen.

This is because there was still no ETF on cryptocurrency and I cannot buy Grayscale BTC on Tiger. Furthermore, I am too lazy to go through the process of buying and holding bitcoin.

But I really want to get involved in the cryptocurrency industry, especially bitcoin. With the digitalization being sped up by the pandemic, I do think that cryptocurrency, especially bitcoin and many others (obviously those with usage), do have a future.

Part 2: The Segment of Fundamental Scorecard That Caught My Eyes

Fundamental Scorecard is a visualization tool that simplify all quantitative information into graphs while calculating the intrinsic value using timeless theories, and providing conclusions about the company for the reader to have an easier time to make decision. (If you are interested, do click on this link).


The company has just been uplifted to the Nasdaq not long ago. Thus, it does not have 10 years of financials. However, what caught my eyes is definitely the increasing revenue as well as the increase in net profit, along with a strong balance sheet.

Part 3: 8 Reasons and 1 Risk of Choosing 8

1. 8 is a bitcoin mining firm that HODL its self-mined bitcoin. It is also the top company that hold on to the most self-mined bitcoin and is probably in 2nd place for holding onto the most bitcoins among the bitcoin mining companies. As of Sep.30, total bitcoin balance held in reserve stood at 4,724. This definitely appeal significantly to me since I want to hold bitcoin but lazy to get the set up the process.

2. 8 uses gas, wind and green energy to mine their bitcoin. No coal is used. Green energy is an important factor for bitcoin mining firm currently.

3. On expansion, 8 also has a partnership with Validus Power Corp for a supply of an additional 100mw. This agreement is unique as it looks at capturing waste gas or flare gas. As stated in the press release, “…The agreement includes significant optionality…if the Company decides to scale beyond the first 100MW. The anticipated commercial operation launch date of an initial 35MW is early Q4, 2021… A portion of the energy production for the project will be generated from captured waste gas and converted to electricity by leveraging cutting-edge mobile power plant solutions to be provided by Validus Power Corp…”

4. 8 also expects their hashrate to be 3.0EH by year end 2021 and 6.0EH by mid 2022.

5. Their structures which are deem to be “BlockBoxes”, which as explained can be removed and placed anywhere with energy to spare (This also explains why they can use captured waste gas as a source of energy). This is unique within the bitcoin mining industry where many have to focus on purchasing a building or build one where its close to the source of power.

6. In my opinion, 8 is also very innovative in terms of their business model. It works with Genesis Mining and Galaxy Digital to earn yield on their Bitcoin reserve. This kept them afloat during the pandemic. 8 also works with Luxor Mining to mine ethereum and get paid in bitcoin. This will significantly reduces their cost of mining.

7. Bitcoin mining is very competitive and bitcoin is a finite commodity. With rewards halving every 4 years, I believe bitcoin mining might become less profitable moving forward (probably in after 2024) and having different sources of revenue is important. Therefore, other than earning yield on its bitcoins, the company also has a White label hosting business.

8. Finally, my opinion is that 8’s Management seems to be very PR friendly and transparent - just look at their Twitter and all the interviews in Youtube. This provided significant information for the investors on their business model and future outlook/developments.

9. The main risk that I foresee is that HODL on Bitcoin and not selling them meant that cash will eventually run out. Investors will have to be realistic and expect 8 to have share offering when their liquidity runs low.

With that I will reveal that Company 8 is actually Hut 8 Mining! It is really coincidental that its in the 8th position in my portfolio! 

If you are interested, please do bookmark this Blog or follow me on TUBInvesting FB, or Fundamental Scorecard Telegram Group (please google for the links!).

Stay tune for my next post!

Thursday, October 7, 2021

Top 10 Position In My PortfolioS

It’s been a long while as I update my blog. You can deem this as a return to writing till my “energy” runs out again.

Market been volatile, so have my portfolio. Therefore, for this post, its probably time to talk a bit more about my portfolios and the top 10 positions.

The Background of My PortfolioS

For those that still do not know, I had 2 portfolios

As I had explained previously, one of them is solely US companies, and the other is a mixture of SG and US companies. What I did not state is that the one solely with US companies has a 3-year period. The one with a mixture of SG/US companies has a 10-year period.

However, over time, both portfolios have changed. The timeline remains the same. But both of them currently has a mixture of US, SG and HK companies.

In addition, I started a 3rd portfolio that will consist solely of US companies lasting till Dec 21. This portfolio is a trading/active management experiment portfolio. Since starting in 30 Aug 21, I have lost 45% of the portfolio. This probably meant I am not a trader and I still stay on the same course in future. Nevertheless, I will still keep this portfolio till Dec 21. It currently holds only 5 positions.

When I combined the 3 portfolios, it amounts to a total of S$200+k with a cash position of 3%. The total number of companies I have stands at 27 companies. However, the Top 10 Positions contributes to 73% of the portfolio. The remaining 17 companies contributes to the remaining 24% of the portfolio.

Details of the Total 10 Positions

1st, 2nd and 3rd are Tencent (700), APPS and Alibaba (9988) respectively. They contribute to 36% of the portfolio. Although I had always stated that APPS is my biggest position, but when the China started cracking down on their big tech firms, I decided to start positions in Tencent and Alibaba. I continued to accumulate while their share price continued to plummet and eventually both of them occupies the 1st and 3rd position in my portfolio.

4th, 5th and 6th are CRNC, PLTR and <Company 6> respectively. They contribute 18% of the portfolio. I have written about CRNC and PLTR previously and my conviction remains high for these 2 companies. <Company 6> is an interesting company that I will probably do a more detailed write next week.

7th, 8th, 9th and 10th are DIS, <Company 8>, CICT (C38U) and Starhill REIT (P40U). They contribute towards 19% of the portfolio. DIS has been my very long time holding. CICT and Starhill REIT are the sole contributors to the Top 10 positions from Singapore. I do not foresee I will continue to add to these 3 companies in the near future. As for <Company 8>, it is another company I will be interested to do a write up on.

With that, these are my top 10 positions and I believe most of them will remain in their position for some time.

For my remaining 17 companies, I am currently reviewing them and I foresee I will only keep 10 of them by year end.

Hope this explains my portfolio and I will follow up with post of <Company 6> and <Company 8> soon!

See you on the next post!

More information on Fundamental Scorecard Telegram Group (please google for the links!). So if you are interested to know more, please join us in the Telegram Group.

Thursday, September 9, 2021

Let's Talk EP2: OTS Holdings Released Their FY21 Full Year Results

Please read till the end for a SPECIAL SURPRISE!

Since the last article as of 15 Jun 21, OTS has released its full year result.

SAC Capital has subsequently provided a “Buy” rating on them with a price target of 40 cents (SAC Target, not mine) as per article.

As quoted in the article, these are the interesting pointers that I like to highlight:

“…Earnings excluding IPO expenses would have been 13.9% higher y-o-y at $4.0 million. Revenue for the period was 11.5% higher at $38.5 million…”

“… OTS made inroads into Malaysian foodservice sector in early 2020 before Covid-19 hit. It plans to commence sales in the Philippines in Nov 2021 to take on competitor brand SPAM. In Indonesia, it has a 50:50 JV with Salim Group to produce and sell processed meat products…”

Furthermore, I will like to add the following 2 points:

1. Many investors tend to miss this – but if we look at the cashflow generated from the operating activities, it is a significant increase of over 300%!

This is mainly due to significant improvement in their operations, especially the changes in Inventory – from an increase of S$5.2m ending FY20, to a reduction of S$2.139m ending FY21 – meaning their inventory are selling fasting!

2. Initially, I was also worried if their expansion may mean that they need more cash in future. But looking at the Cash and cash equivalent amount at the end of FY21 which was S$15m, it seems that these worries are irrelevant.

Conclusion

In short, I just like to point out the other positive aspects of OTS full year results in terms of cashflow as a company that just IPO.

Although I am still not vested yet BUT I had tried their luncheon meat last month as posted on InvestingNote (1 week after trying a South Korean Brand). In my opinion, it is definitely less salty and taste better.

Screenshot of InvestingNote

Therefore, I took the opportunity to just write to OTS if they were interested to provide anything EXCLUSIVELY for my readers.

Just to be upfront, this is not sponsored. I just wanted to try something different this time round for the readers.

AND OTS GOT BACK TO ME!

This is an exclusive deal for T.U.B. readers:

Subject to the following

- 1 person can only use the code ONCE.

- This promotion will end on 16 Sep 21.

- Subject to availability.

What should you do?

Go to their website (https://golden-bridge.com/shop/ or https://www.ellaziq.com/shop) and apply the coupon code accordingly to get the 15% OFF! (See the picture below)

Golden Bridge Website code: GB15OFF (15% off min spend $40)

Ellaziq Website code: EL15OFF (15% off min spend $40)

Taken from Golden Bridge Website

That’s all.

I hope you like this special surprise!

See you in the next post!