(Post 53/week 38)Investment project updates(peer to peer lending):Moolahsense(My seventh campaign)

Moolahsense(My seventh 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)

Issuer summary
Date of listing:FEB 2018
Amount:$50,000
Tenor: 12 months
Note 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 frequency: Monthly

• Repayment frequency: Will be paid monthly

Target interest rate:16.75%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 $300 into it
• As the target interest rate is 16.75%, this means that at the end of the tenor, which is 12 month I will expect to receive $350.25
• 100%=$300
• 16.75%(Interest for 12 month/1 years)=$50.25
• 116.75%(The Principal + the interest for six month)=$300+ $50.25
• Since the tenor is  months, each month I will receive $(inclusive of interest) in payment/equal installment
• 1month=$350.25/12=$29.18

Summary company profile

• The issue is a company incorporated in Singapore in 2012.  
• The Issuer is in the air-conditioning industry and has around 10 employees.
• The Issuer specializes in the supply, installation, maintenance, and repair of air-conditioning units and systems as well as mechanical ventilation ductworks.  
• The Issuer is registered with the Building and Construction Authority of Singapore as a Registered Contractor for Air-Conditioning, Refrigeration & Ventilation Works.

Detail of purpose

• The Issuer seeks funds to purchase inventory for various ongoing projects which have been awarded 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 2016:55.78),(Current ratio 2015:51.18)

• 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 2015:51.18, it is higher than the recommended range(>2.0)
• For the current ratio of 2016:51.78, it is higher than the recommended range(>2.0)

(Quick ratio 2016:3.29),(Quick ratio 2015:1.57)

• 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 2015:51.18, it is higher than the recommended range(>1.25)
• For the quick ratio of 2016:51.78, it is higher than the recommended range(>1.25)


(Total liabilities/equity 2016:0.47),(Total liabilities/equity 2015:2.03)





• 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 2015:0.02 it is in the recommended range(<0.75)
• For the Total liabilities/equity of 2016:0.02, it is in the recommended range(<0.75)

Why did I invest in this loan?

• All of its current ratio, total liabilities/equity and quick ratio(2015 and 2016) is in the recommended range, hence I invested in this loan

• As the moment of writing, this loan is still ongoing and there is no late payment so far

Repayment schedule?

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

Monthly interest rate:interest/start balance=$4.19/$300=1.40%(Percentage conversion must *100)

Effective interest rate:1.39%*12=16.76%(almost the same as the target interest rate at 16.75%)

From the above picture, you can see that the Net repayment is at $27.06 instead of the $29.18 that I have mentioned above at the working capital, hence I will do a calculation here again

1-month repayment:$27.06

6-month repayment:$27.06*12=$324.72

$300(the amount I put in this campaign=100%

$324.72=(100/300)*324.72=108%

108%-100%=8%

The target interest rate as you can see in my above post is at around 16.75%P.A, after taking into account of the tenor rate being 12 months compared to 8% its almost 8.75% difference(i shall call this net interest rate instead)in this campaign. To conclude, this means that if you invest in a (16.75%P. A) high-interest rate campaign in moolahsense, you will get only about 8%

The next campaign that I will update soon is a finished campaign but and they are however still paying the repayment

Stay tuned to my next week post:moolahsense(my eighth campaign)!

(Post 52/week 37)Investment project update part 2:Posb invest saver Sept 2018 summary

6.Posb invest saver(Sept 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
My POSB invest saver update for the month of Aug, read here

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

Breakdown of my regular saving plan(A35) this month(Sept 2018)
Total amount(regular saving plan)A35:$100
Price per share:$1.127300
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/$1.127300=88.26399361=88 units

Summary: As of 21Sept, the share price of A35 was at 1.127, has not change 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 will 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(Sept 2018)

Total amount(regular saving plan)A35:$100
Price per share:$3.262100
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/$3.326100=29.81772047=30 units

Summary: As of 21 Sept 2018, the share price of G3B is at 3.35 and ES3 is at 3.259. Both ES3 and G3B has been on a downtrend,with ES3 hitting this year low at 3.14 on 11 sept 2018, will be watching it for the next dip. 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,)

Don't forget to DYODD(Do your own due diligence!)

(Post 51/week 36)Learning trading/investing together part 4:ETF (exchange traded fund)

Learning trading/investing together part 4: ETF(Exchange-traded fund)

Exchange traded funds(ETFs)

What are ETFs?

• Exchange traded funds(ETFs ) are investment funds listed and traded on an exchange
• They aim to track the performance of an index and provide investors access to a range of market and asset classes
• Buying and selling is the same as that of a stock and can be transacted through any broker

Benefits of ETF

Diversification

• Investors achieve diversification in one single transaction with minimum investment versus having to build a similar portfolio by purchasing individual stock, bonds or commodities which could require a huge investment outlay

Cost-effectiveness

• The cost of investing in ETFs are generally lower than actively managed funds(for example, Units Trusts) in the same markets of assets

Accessibility

• ETFs offer access to a variety of local and global markets, as well as asset classes, both broad and specific, which may be inaccessible to individual investors

Did you know?

• SGX lists two ETFs that track the Straits Times Index(STI) and SPDR Straits Times Index ETF(ES3) and NIKKO AM Singapore STI ETF(G3B). Investors stand to benefits from potential capital gain an dividend distribution
• An overview of their performances since 2009
• Annualized Return since 2009=11.1%(data as of 2016)
• Average Annual Dividend Yield since 2009 = 2.51%(data as of 2016)

What Is Straits Times Index?

• The Straits Times Index is the benchmarks index or the Singapore Stock market. It is represented by the 30 largest, most actively traded blue-chip companies list on the SGX  and are spread across various sectors(I am currently vested in STI ETF via POSB invest saver)

The table below details the 30 STI constituent stocks sorted by their market capitalization

Do take note of the STI WEIGHT % to get a better understanding of the respective company percentage that is held in STI ETF

What are the others respective country ETF?

United States

• S&P 500 ETF(tracks the top 500 companies in the US)

Japan

• Nikkei 225(track the top 225 companies in Japan)

Hong Kong

• Hang Seng Index

Britain

• FTSE 100 index

That all for this week, ETF will be mention again in a near future post!do look out for next week post on REITs!

part 5 here!

(Post 50/week 36)Investment project updates:Moolahsense review(My sixth campaign)

**Congratulation to myself for reaching post 50!!

6.Moolahsense(My sixth campaign with Moolahsense)

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

Issuer summary
Date of listing: Jan 2018
Amount:$100
Tenor:12 months
Repayment type: Callable

Quoting from the SGYoungInvestment

• Callable: In a Callable note, an issuer has an option to early redeem the note on a quarterly basis. If the note is not early redeemed, the issuer pays a quarterly interest. The principal will be fully repaid on the quarter that the redemption is early called or at the maturity date.

Assume that you invested $10k in a campaign at a final note rate of 13.5% p.a. in a Callable note.(Below is a very useful illustration)

                               

Repayment term: Quarterly

• Repayment term: Every 3 months

Target interest rate:8%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 $100 into it(which is the amount I actually funded, and the first campaign I funded when moolahsense change their minimum amount to invest from $500 to $100)
• As the target interest rate is 8%, this means that at the end of the tenor, which is 12 month I will expect to receive $108
• 100%=$108
• 8%(Interest for 12 month/1 years)=$8
• 108%(The Principal + the interest for 12 months)=$100+$8
• However, a callable note will only pay the interest and you can redeem (principal) anytime,or you can simply just wait until the end of the tenor to get back the (principal)
• Do note that interest is automatically credit to your moolahsense account holdings

Summary company profile

• The issuer is a company incorporated in 2011
• The Issuer is in the metal and minerals wholesale industry and has around 10 employees. 
• The Issuer supplies three main categories of products: (a) base metals and metal alloys (including lead,copper, aluminium, and steel), (b) scrap metal (including copper, aluminium, steel, brass and zinc scrap), and (c) minerals and concentrates (including coal, iron ore, and copper concentrates and blisters). 
• The Issuer is headquartered in Singapore and has affiliated offices in Hong Kong, Thailand, Indonesia, Duba, and England.

Detail of purpose

• In anticipation of an increase in demand and business volume, the Issuer seeks funds to finance the purchase of additional goods for sale to its customers.

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 2016:3.29),(Current ratio 2015:1.57)

• 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 2015:1.57, it is out of the recommended range(>2.0)
• For the current ratio of 2016:3.29, it is higher than the recommended range(>2.0)

(Quick ratio 2016:3.29),(Quick ratio 2015:1.57)

• 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 2015:1.57, it is higher than the recommended range(>1.25)
• For the quick ratio of 2016:3.29, it is higher than the recommended range(>1.25)

(Total liabilities/equity 2016:0.47),(Total liabilities/equity 2015:2.03)

• 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 2015:2.03, it is out of the recommended range(<0.75)
• For the Total liabilities/equity of 2016:0.47, it is in the recommended range(<0.75)

Why did I invest in this loan?

• The current ratio 2015(1.57) and total liabilities/equity 2015(2.03) is out of the recommended range of >2.0 and <0 75 
• However the current ratio 2016 (3.29),quick ratio 2016(3.29) and,total liabilities/equity 2016(0.47) is in the recommended range of <0.75, as the financial statement ratio met all of the above-recommended ratios, I invested in the campaign
• The increase in current ratio and quick ratio ,and decrease in total liabilities/equity from 2015 to 2016 show that the company is profiting well and paying off their debt

• The loan is about halfway through so far

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

As this is a callable note, that is different from the usual equal installment, the company will pay out an interest every month and you can redraw your principal anytime, or you can simply just collect interest until the end of the campaign

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

$108=(100/100)*108=108%

108%-100%=8%

About 8% earned, and about 1% goes into moolahsense servicing fee hence,

Total net payment=$100.98+$0.98+$0.98+$0.98=$106.92

$100=100%

$106.92=106.92%

106.92-100=6.92%

Total 6.92% earn from this campaign, pretty good interest I must say!

that's all for this campaign, about halfway through all my moolahsense campaign!

(Post 49/week 35)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:$3+$2=$5(paylah)

2.Bitcoin faucets

Current coinpot holding

Bitcoin core: 5334 Satoshi
Bitcoin cash: 6211 bch
Dogecoin:  58.68doge
Litecoin:  0.00169 ltc
Dashcoin: 0.00047304 dash

3.Short link

Last two week

Currently






Total earning for short link last two week:$5.1971-$4.6883 = $0.5088

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:2 x surveyon($2.00)

The total payout for last week survey:$2.00+$2.00=$4.00

5.Adsense

Last week earning for Adsense:$0.60

Total earnings for last two week zero dollar project:$5 + $0.5088 + $4.00+ $0.60=$10.01

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

(Post 48/week 35)Learning investing/trading together part 3(Blue chips,Income stock and growth stock)

Learning investing/trading together part 3! (Let's learn about investment products!)

Note: Data are based on 2018 report, from yahoo finance and dividend.sg*

What investment are available?

• Nowadays, there are many investment products on the market which can be quite daunting and confusing for the new investor. Understanding the different product as well as our own investment goals and risk appetite is important in determining the right investment approach for ourselves
• There are four common investment products that a new investor can potentially start off with, they are blue-chip stocks,exchange-traded fund(ETF), real estate investment trusts(REITs) and regular shares savings(RSS) to help you better understand which products would best suit your investing goals

Blue chip stocks

What is a blue chip?

• Large and well-established companies with a history of stable earnings
• Typically refers to companies of quality and reliability and who have the ability to operate profitably in good times and bad
• From a financial perspective, blue-chip companies typically have: Market capitalization> $2 billion
• Business revenue > $200 million per year

What is a market capitalization?

• It is the value of the company trading in the stock market
• Market Capitalism = Share Price x Number of outstanding shares of the company

Did you know?

• Blue chip companies have worldwide business with an estimated 50% of the total revenue generated outside Singapore. For example, Capitaland(the company that own at least half the shopping mall in sg) has a vast global presence in around 146 cities across 27 countries worldwide, from Paris to Singapore
• Thai Beverage, a blue-chip company, owns famous brands like Chang Beer and 100PLUS. You can own a piece of their business with just $73(0.73/current share price * 100), that's the equivalent of 15 bottles of Chang beer
• If you had invested in DBS(the bank that every Singaporean has an account in)in the year 2015, you would have received an average dividend yield of 3.77 %. Compare this to a DBS savings account that pays up to 0.10% p.a interest in your savings
• The combined minimum investment in three well known blue chip counters-OCBC(the lesser popular bank, but still very popular), Singtel(the company where everyone sign contract for their phone with), and Keppel Corp(mostly marine and offshore, oil)-used to cost around $19,820.With the reduction of board lot size(from 1000 per lot to 100 per lot, you can buy into these companies with just $1928 now
• SATS(the company that provides ns man food...) shares gave a total return of around 30% in 2015. Investing in the company cost just a little over $400

Growth and income stock

In general, stocks can be classified as growth, income or a hybrid of both. Using certain financial ratios, we can differentiate between growth and income growth and income stocks and determine which best suits our investment goals

Growth Stock:

• A company stock that tends to increase in capital value rather than yield high income,this mean you earn more from selling the company stock rather than via dividends 

General telltale sign

• Generates substantial and sustainable positive cash flow
• Revenues and earnings increase at a faster rate than average companies
• Has a competitive advantage over its peers
• Pay small dividend as these companies tend to reinvest profits for further growth

Relevant financial criteria

• 5-year Revenue Growth
• Price-Earning ratio

You can read about 5-year revenue growth and the price-earnings ratio at my last week post here

Income Stock

• Found mostly in stable industries and pays a consistent dividend to reward their shareholders
• Capital return is generally lower than a growth stock

Relevant financial criteria

• Dividend Yield (consistent payout for at least 3 years)

You can read about Dividend yield at my last week post here

Examples of Growth Stock

Stock(Stock code):DBS Group Holdings Ltd(D05)

• Stock code are a short form that consists of letter and number or both, so when you purchase DBS share, you key in D05 instead

Industry: Bank

Link:https://sg.finance.yahoo.com/news/sgx-research-dbs-ocbc-uob-084407840.html

• DBS, OCBC, and UOB has an average P/E ratio of 14.1x
• There is also the sector P/E ratio,shareinvestor has such info but must be a member

Market Cap :$63.815 Billion

Link:https://www.investopedia.com/terms/m/marketcapitalization.asp

• Small cap companies: Around $300 million to $ 2billion
• Mid-cap companies:$2 billion to $10 billion
• Large-cap companies: More than $10 billion
• Hence, DBS is categorized as a large-cap company

Total Revenue($B): $10.17 Billion

• Known as sales in income statement, will delve deeper into it when I will study more on the financial factsheet

5-year Revenue growth %:9.32%

• 23 Aug 2013:$16.16
• 30 Aug 2018:$25.23
• Using the cagr calculator from Investopedia to calculate, it gives us:9.32%
• Interpretation from the calculator: Over the course of 5 periods your investment grew from $16.16 to $25.23, its compound annual growth rate, or its overall return, is 9.32%.
• Interpretation of CAGR: Over the course of 5 periods your investment grew from $16.16 to $25.23, its compound annual growth rate, or its overall return, is 9.32%.
• CAGR essentially smoothes out the progress of your investment over a period of time, providing a clearer picture of your annual return. However, although your investment started at $16.16 and ended with $25.23, its growth in any one year may have been quite a bit higher or even negative (if the investment ever lost money over that time). Consequently, the CAGR figure may give the impression that the investment has produced a stable return throughout its life, even if the investment was extremely volatile, fluctuating a great deal from year to year.
  
  

Price-Earning ratio:13.43

• Big and established companies(blue chip) normally have a P/E ratio of 15 of 25
• Still on its way to reaching the P/E ratio of 15

Dividend yield(Not included in the book)

• For comparison between growth and income stock

• Dividend yield(2016):2.38%
• Dividend yield(2018):6.75%(this is crazy man btw)
• From 2.38% to 6.75%(this has evolved to both a growth and income stock)
• In my opinion, any stock that has a dividend yield of more than 5 % is an income stock

Examples of Income stock

Stock(Stock code): Capitaland mall trust(C38U)

• Stock code of Capitaland mall trust, C38U

Industry: Real Estate Investment Trust(REIT)

• REITs are normally categorized under Income stock, due to their high dividend yield

Market Cap:$7.666Billion

• Small cap companies: Around $300 million to $ 2billion
• Mid-cap companies:$2 billion to $10 billion
• Large-cap companies: More than $10 billion
• Hence,capitaland is categorized as a Mid-cap company (a little surprising, really)
• Total Revenue($B):0.68

• Known as sales in income statement, will delve deeper into it when I will study more on the financial factsheet

5-year Revenue growth %:2.61%(not included in the book)

• 23 Aug 2013:$1.89 
• 30 Aug 2018:$2.15 
• Using the cagr calculator from Investopedia to calculate, it gives us:2.61%
• Interpretation of CAGR: Over the course of 5 periods your investment grew from $1.89 to $2.15, its compound annual growth rate, or its overall return, is 2.61%.
  CAGR essentially smoothes out the progress of your investment over a period of time, providing a clearer picture of your annual return. However, although your investment started at $1.89 and ended with $2.15, its growth in any one year may have been quite a bit higher or even negative (if the investment ever lost money over that time). Consequently, the CAGR figure may give the impression that the investment has produced a stable return throughout its life, even if the investment was extremely volatile, fluctuating a great deal from year to year.
  
  

Price-Earning ratio:11.51

• Big and established companies(blue chip) normally have a P/E ratio of 15 of 25
• Still on its way to reaching the P/E ratio of 15

Dividend Indicative Yield:5.28

• Dividend yield(2016):5.20%
• Dividend yield(2018):3.97%
• From 5.20% to 3.97%(this has become a "non growth and income stock?")
• Btw, Capitaland mall trust(C38U) is a REIT and REITs typically payout dividend every quarter
• In my opinion, any stock that has a dividend yield of more than 5 % is an income stock
• Will talk more about REITs in part 5!

part 4!