(Post 47/week 34)Investment project updates part 2:Posb invest saver AUG 2018 summary

6.Posb invest saver(Aug 2018)

My POSB invest saver update for the month of May, read here
My POSB invest saver update for the month of June, read here
My POSB invest saver update for the month of July, read here

Regular saving plan updates for ABF Singapore Bond Index Fund(A35)

Breakdown of my regular saving plan(A35) this month(Aug 2018)
Total amount(regular saving plan)A35:$100
Price per share:$1.12700
Gross sales charge:0.5%
Net sales charge amount:0.5% of 100=$0.50
Net amount invested: Total amount-net sales charge amount=$100-$0.50=$99.50
Units issued: Net amount invested/price per share=$99.50/$1.12700=88.28748891=88 units

Summary: As of 22 Aug, the share price of A35 was at 1.133, a slight increase from last month,1.127(July update) which is quite at the middle with its maximum at 1.25(2011) and its lowest 1.00(2008). Will be watching it for any further movement, once below 1.100 may make a bulk purchase

Regular saving plan updates for Nikko AM Singapore STI ETF(G3B)

Breakdown of my regular saving plan(G3B) for this month(Aug 2018)

Total amount(regular saving plan)A35:$100
Price per share:$3.352100
Gross sales charge:0.82%
Net sales charge amount:0.82% of $100=$0.82
Net amount invested: Total amount-Net sales charge amount=$100-$0.82=99.18
Units issued: Net amount invested/price per share=$99.18/$3.352100=29.58742281=29 units

Summary: As of 22 Aug 2018, the share price of G3B is at 3.32 and ES3 is at 3.24. Both ES3 and G3B has been on a downtrend and ES3 has broken the support line at 3300, could be some signs that the economy is slowing down but will probably recover temporary. Will be watching it along with A35

(Current regular saving plan portfolio)

(When you trade long term through dollar cost averaging, no need to worry about the red:D)

(Post 46/week 33)Investment project updates:Moolahsense(My fifth campaign)

6.Moolahsense(My fifth campaign with Moolahsense)

Note*the company name will not be revealed just like the previous post as my money are still inside moolahsense, haha(this is not a sponsored post by the way)

My first default loan!!!:(

Issuer summary
Date of listing: DEC 2017
Amount:$500
Tenor:6 months
Repayment type: Equal installment

Quoting from the moolahsense website

• Equal installment:A promissory note by which an installment of the principal subscription amoung and/or interest accrued and due up to the date of payment shall be payable on such dates as set out in a repayment schedule specified in the promissory note, and on the maturity date, the principal subscription amount would have been paid in full

Repayment term: Monthly

• Repayment term: Will be paid monthly

Target interest rate:24%P.A

Quoting from Moolahsense website

• Target interest rate: The maximum rate the issuer is willing to provide the interest on the principal subscription amount which the issuer wished to obtain, as notified in writing by the issue to Moolahsese

Purpose: Working capital

Quote from valuepenguin:https://www.valuepenguin.sg/what-is-working-capital

• Working capital: It is a concept to describe a business ability to cover its short-term operating costs
• E.g For this campaign, I have funded $500 into it(which is the amount I actually funded, which is the minimum sum that moolahsense accept for the campaign at that time)
• As the target interest rate is 24%, this means that at the end of the tenor, which is 6 month I will expect to receive $560
• 100%=$500
• 12%(Interest for 12 month/1 years)=$60
• 112%(The Principal + the interest for six month)=$500 + $60
• Since the tenor is 6 months, each month I will receive $(inclusive of interest) in payment/equal installment
• 1month=$560/6=$93.33

Summary company profile

• The issuer is a company incorporated in 2006
• The Issuer is in the building and construction industry and has around 10 employees
• The Issuer is a specialist in mechanical engineering project and has been engaged by government hospitals in Singapore to implement various automation projects.
• The Issuer is registered with the Building and Construction Authority of Singapore

Detail of purpose

• The Issuer seeks working capital to perform automation projects awarded by a government hospital in Singapore to the Issuer.

Financial statement

Will only reveal a part of the financial statement due to confidentiality. As I have mentioned a few weeks ago in my post, that I only mainly use this three ratio: current ratio, quick ratio and debt to equity ratio to decide in investing in a campaign, hence I will be showing its ratio below

The ratio is as follow(left side of the column is for the year 2016/right side of the column is for the year 2015)

Year 2016/Year 2015

(Current ratio 2016:3.62),(Current ratio 2015:49.79)

• A simple ratio of current asset divide by current liabilities
• Current liabilities are debt that needs to clear in the short term(in a year)
• If a company has a current ratio less then 1.0, do not invest in it
• If a company has a current ratio more then 2.0, May consider investing in it
• The higher the current ratio, the better
• For the current ratio of 2015:49.79, it is higher than the recommended range(>2.0)
• For the current ratio of 2016:3.62, it is higher than the recommended range(>2.0)

(Quick ratio 2016:3.62),(Quick ratio 2015:49.79)

• The quick ratio is almost similar to current ratio except that it is assumed that the company does not sell its inventories(e.g Toyota inventory is its car) or stock, it is still able to fulfill its debt
• If the company has a quick ratio of 0.75 and below, do not invest in it
• If the company has a quick ratio of 1.25 and above, May consider investing in it
• The higher the quick ratio the better
• For the quick ratio of 2015:49.79, it is higher than the recommended range(>1.25)
• For the quick ratio of 2016:3.62, it is higher than the recommended range(>1.25)

(Total liabilities/equity 2016:0.19),(Total liabilities/equity 2015:0.01)

• The debt ratio is calculated by total liabilities divided by the equity
• If the company has a debt ratio of 1.5 and above, do not invest in it
• The company should essentially have a debt ratio of 1.0, if the debt ratio is below 0.75, do consider investing in it
• The lower the debt to equity ratio the better
• For the Total liabilities/equity of 2015:0.01, it is out of the recommended range(<0.75)
• For the Total liabilities/equity of 2016:0.19, it is in the recommended range(<0.75)

Why did I invest in this loan?

• Both the current ratio 2015(49.79), quick ratio 2015(49.79) are above the recommended ratio of >2.0 and >1.25 respectively(This default loan is the epitome that if something is too good to be true, it probably is)
• The current ratio 2016(3.62), quick ratio 2016(3.62) are above the recommended ratio of >2.0 and >1.25 respectively and its Total liabilities/equity 2016(0.19) is in the recommended range of <0.75, as the financial statement ratio it met all of the above-recommended ratios, I would invest in the campaign(again if something is too good to be true, it probably is)
• The Total liabilities/equity (2015) is 0.01 while the Total liabilities/equity (2016) is 0.19, suggesting it is increasing and this most probably means that the company are taking more on their liabilities/debt

• Even though this loan has defaulted, nevertheless below is the supposed repayment schedule so far(I only got dec and Jan repayment, by the way)

link on how too read the effective interest rate for moolahsense:http://letscrowdsmarter.com/understanding-interest-rates/

Monthly interest rate:interest/start balance=$10.00/$500=2%(Percentage conversion must *100)

Effective interest rate:2%*12=24%(Same as the target interest rate)

From the above picture, you can see that the Net repayment is at $89.26 instead of the $93.33 that I have mentioned above at the working capital, hence I will do a calculation here again

1-month repayment:$89.26

6-month repayment:$89.26*6=$535.56

$500(the amount I put in this campaign=100%

$535.56=(100/500)*535.56=107.112%

107.112%-100%=7.112%

The target interest rate as you can see in my above post is at around 24%P.A, after taking into account of the tenor rate being 6 months (12% only), compare to 7.112% its almost 5% difference(i shall call this net interest rate instead)in this campaign. To conclude, this means that if you invest in a (24%P. A) high-interest rate campaign in moolahsense, you will get only about 7.112%.

And of course, I was a bit depressed at that time because after all seeing your hard earn money go down a drain...there was simply no words to describe...

Nevertheless, after that incident, I pick myself up and since then I had switch to investing in other areas such as stocks, bond etc(e.g  Learning investing/trading together part 1(Why invest in stocks?)

But of course, at that time I still didn't know that this loan was going to be eventually defaulted, hence leading to me investing in my sixth campaign...

(Post 45/week 33)Zero dollar project updates:carousell,Bitcoin Faucets,Short Link,Online survey and Adsense update

Updates for last two week of zero dollar project

1.Carousell
2.Bitcoin faucets
3.Short link
4.Online survey
5.Adsense update

1.Carousell

My carousell:carousell.com/eric996

Total earnings for carousell last week:$1+$2(via meetup)=$3

2.Bitcoin faucets

Current coinpot holding

Bitcoin core: 5235 Satoshi
Bitcoin cash: 5873 bch
Dogecoin:  57.26doge
Litecoin:  0.00158 ltc
Dashcoin: 0.00045305 dash

3.Short link

Last two week

Currently

Total earning for short link last two week:$4.6883-$3.8508 = $0.8375

For more information on how's I use both short link on my blog and YouTube, read here

4.Online survey

Current online survey on my list...(Bold mean that these survey websites have been verified for payout)

4.1 Toluna
4.2.surveyon
4.3 YouGov
4.4 mobrog
4.5 ipanelonline
4.6 viewfruit
4.7 mysurvey
4.8 millleu(App on google play store)

Survey that payout last two week:surveyon($2.00),mobrog($6.25)

The total payout for last week survey:$2.00+6.25=$8.25

5.Adsense

Last week earning for Adsense:$0.54

Total earnings for last two week zero dollar project:$3 + $0.8375 + $8.25+ $0.54=$12.62

That's all for the updates this week for my zero dollar project! stay tuned to my investment project updates for this week!

(Post 44/week 33)Learning investing/trading together part 2(Investment style)

Continuing on from last week(part 1), this week we will be learning about the different investment  style and the different between different type of stock

Growth investor

What you want from your investments

• Capital gains and growth are more important

For an investor who...

• Have shorter term horizons
• Are seeking higher capital appreciation
• Want to achieve a lump-sum investment amount that is larger than accumulated savings

Company and stock selection

• Identify companies that have the potential to grow, or whose revenues and earnings are expected to increase at a faster rate than its peers

Relevant financial criteria

• 5-year Revenue Growth

How to Calculate 1-year revenue growth?(just like calculating simple interest rate in school)

Link:https://pocketsense.com/calculate-total-revenue-growth-accounting-4241.html

E.g A company reports  $10 million in total revenue last year and $12 million for the recent year. You take this year $2million divide last year's $10 million which gives you 0.2(0.2 * 100), which times 100 gives us 20%(remember percentage is *100). Therefore, this company had a 1-year revenue growth of 20% from last year to this year.

Total revenue for last year:$10,000,000($10 million)
This year for this million year:$12 million($12 million)
Difference between this year and last year:$12,000,000-$10,000,000=$2,000,000
1-year revenue growth:$2,000,000/$10,000,000=0.2*(100)=20%

Calculating 1-year revenue growth may seem chicken feet to some(at least not for me! haha), but what if you want to calculate 5-year revenue growth?

How to calculate 5-year revenue growth?(just like calculating compound interest formula in school)
Link:https://www.investopedia.com/terms/c/cagr.asp

The 5-year revenue growth is the same as the CAGR(compound annual growth rate)? I think?
P.S, I hate financial jargon as much as you do...

So what is CAGR(compound annual growth rate) anyway?

• It is the mean annual growth rate of an investment period of more than a year, which in our case is 5 year!
• It is also a representation number that describes the rate of the investment if it has grown steadily over the years, however, some years the company made more money or made less money(e.g company A make $2 million for the year 2018 and make $1 million for the year 2019)

For example, company A data:
The year 2013(Begin value, currently has):$10million
The year 2018(End value, currently has):$20million
Number of years=2018-2013=5 years

CAGR of company A is =(($20,000,000/$10,000,000)^(1/5))-1=14.8%

• Price-Earnings Ratio

What is the Price-Earnings Ratio?

link:https://www.investopedia.com/terms/p/price-earningsratio.asp

Link:http://www.sharesinv.com/articles/2014/07/04/price-to-earnings-tutorial/

• The Price-earnings ratio is one the popular ratio that measures the price of its current stock to its earnings.
•  To put it in a simpler word, it is a ratio that identifies how expensive or how cheap a stock is.
• For example, a company currently trading at a P/E of 10, this means that the investor is willing to pay $10 for $1 current earnings. Below is an example of how to calculate the P/E ratio of SingTel currently (z74)

link:http://www.sharesinv.com/Z74/

As you can see in the above picture, the black circle show the P/E(price to earnings ratio), most of the websites will show the P/E, so there is no need for actual calculation(what a relief, eh?)

But let's verify the Price/Earning ratio via the formula above:)

• P/E ratio(Black circle):9.6

Price per share(Red circle):$3.200

• Earning per share(Pink circle):$0.3339
• P/E ratio:$3.200/$0.3339=9.6

As you can see above the P/E ratio is pretty accurate, hence there is no need to do self-calculation.

P/E ratio rule of thumb

• Big and established companies(blue chip) normally have a P/E ratio of 15 of 25

• Bear in mind that different industries in Singapore have different P/E ratio and that tech company such as facebook and google have very high P/E as you can below(Facebook P/E:28.44, Google P/E:53.56)

Will delve deep into P/E ratio for the different industries in a future post.

Risk to be aware of

• This is a more aggressive form of investing which requires more active portfolio monitoring and management

Income investor

What you want from your investments

• Having an income stream is more important

For an investor who...

• Are depending on having a regular stream of income from their investments

Company and stock selection

• Identify companies that pay dividend consistently

Relevant financial criteria

• Dividend Yield

What is Dividend Yield and how to calculate it?

Link:https://www.investopedia.com/terms/d/dividendyield.asp

• It indicates the percentage of your principal sum that the company is going to pay in the form of a dividend. 
• It is similar to the bank interest rate(e.g DBS interest rate of 0.05%) that you earn annually but in this case, it is the stock interest rate that you will earn annually. Below is an example of how to calculate my dividend for Singapore bond index(A35)

Link:https://www.dividends.sg/view/A35(This is a very good link to check dividend by the way)

Using the formula to calculate dividend yield above

• Annual dividend per share: $0.0261
• Current share price:$1.125
• Dividend yield:$0.0261/$1.125=0.0232(percentage always *100)=$2.32

As you can see it is the same as the dividend yield state above in the picture, so there is not a need to calculate too

Do look forward to part 3 where we explore the different investment product@

(Post 43/week 32)Investment project updates part 2:Posb invest saver JULY 2018 summary

6.Posb invest saver(JULY 2018)

My POSB invest saver update for the month of may, read here
My POSB invest saver update for the month of June, read here

Regular saving plan updates for ABF Singapore Bond Index Fund(A35)

Breakdown of my regular saving plan(A35) this month(June 2018)
Total amount(regular saving plan)A35:$100
Price per share:$1.129700
Gross sales charge:0.5%
Net sales charge amount:0.5% of 100=$0.50
Net amount invested: Total amount-net sales charge amount=$100-$0.50=$99.50
Units issued: Net amount invested/price per share=$99.50/$1.129700=88.07648048=88 units

Summary: As of 22 July, the share price of A35 was at 1.127, which is quite at the middle with its maximum at 1.25(2011) and its lowest 1.00(2008). Will be watching it for any further movement.

Regular saving plan updates for Nikko AM Singapore STI ETF(G3B)

Breakdown of my regular saving plan(G3B) for this month(June 2018)

Total amount(regular saving plan)A35:$100
Price per share:$3.306500
Gross sales charge:0.82%
Net sales charge amount:0.82% of $100=$0.82
Net amount invested: Total amount-Net sales charge amount=$100-$0.82=99.18
Units issued: Net amount invested/price per share=$99.18/$3.306500=29.997882958=29 units

However, this month is special as the dividend from G3B come in this month!!

Fund name: NIKKO AM SINGAPORE STI ETF
Units held:55.0000

Dividend per share:$0.05200
Dividend amount:$2.76

Summary: As of 23 July 2018, the share price of G3B is at 3.36 and ES3 is at 3.345. Both ES3 and G3B has been on a downtrend for the last days and I think highly likely it will continue its downtrend, this could be a sign that the economy is slowing down. Will be watching it along with A35

(Current regular saving plan portfolio)