(Post 62/week 49)Investment project updates(Peer to peer lending):Moolahsense(My ninth campaign)

Moolahsense(My ninth 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:Mar 2018
Amount:S$73,500.00
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:18%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
• As the target interest rate is 18%, this means that at the end of the tenor, which is 12 month I will expect to receive $118
• 100%=$100
• 18%(Interest for 12 month/1 years)=$18.00
• 118%(The Principal + the interest)=$100+ $18.00=$118.00
• Since the tenor is 12 months, each month I will receive $9.83(inclusive of interest) in payment/equal installment
• 1month=$118/12=$9.83

Summary company profile

• The issue is a company incorporated in Singapore in 2007.  
• The Issuer is in the building and construction industry and has more than 50 employees.
• The Issuer is registered with the Building and Construction Authority of Singapore as a Registered Contractor for General Building and as a Licensed Builder with the designation General Builder Class 2.

Detail of purpose

• The Issuer seeks funds to provide working capital for the performance of various contracts 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 2016:2.35),(Current ratio 2015:1.83)

• 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 2015:1.83, it is lower than the recommended range(>2.0)
• For the current ratio of 2016:2.35, it is higher than the recommended range(>2.0)

(Quick ratio 2016:2.35),(Quick ratio 2015:1.83)

• 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 2015:2.35, it is higher than the recommended range(>1.25)
• For the quick ratio of 2016:1.83, it is higher than the recommended range(>1.25)


(Total liabilities/equity 2016:1.31),(Total liabilities/equity 2015:1.87)





• 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 2015:1.31 it is out of the recommended range(<0.75)
• For the Total liabilities/equity of 2016:1.87, it is out of the recommended range(<0.75)

Why did I invest in this loan?

• The current ratio of 2015 and total liabilities/equity is out of the recommended range,however they the current ratio,quick ratio and total liabilities/equity has improve from 2015 to 2016,hence i believe it will continue to improve in 2017.Hence,i have decided to invest

• 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=$1.50/$100=15%(Percentage conversion must *100)

Effective interest rate:1.5%*12=18%(almost the same as the target interest rate at 18%(see top of the post))

From the above picture, you can see that the Net repayment is at $9.08 instead of the $9.83 that I have mentioned above at the working capital, hence I will do a calculation here again

1-month repayment:$9.08

6-month repayment:$9.08*12=$108.96

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

$100=(100/100)*108.96=108.96%

108.96%-100%=8.96%

The target interest rate as you can see in my above post is at around 18%P.A, after taking into account of the tenor rate being 12 months compared to 8.96% its almost 10% difference(i shall call this net interest rate instead)in this campaign. To conclude, this means that if you invest in a (18%P. A) high-interest rate campaign in moolahsense, you will get only about 8-9%%

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

(Post 61/week 48)TipforThought:Bill gates helpful lessons

I just chance upon this interesting article and decided to take a picture. Some wise words from bill gates.

It read as follow...

Bill Gates gave a speech at high school about 11 things they will not learn in school. They are...

1. Life is not fair, get used to it

2. The world won't care about your self-esteem. The world will expect you to accomplish something before you feel good about yourself

3. You will not make $60,000 a year out of high school. You won't be a vice president with carphone until you earn both.

4. If you think your teacher is tough, wait till you get a boss

5. Flipping burgers is not beneath your dignity. Your grandparents had a different word for flipping, they call it opportunity.

6. If you mess up, it is not your parent fault, so don't whine about it and learn your mistakes

7. Before you were born, your parent aren't as boring as they are now. They got that way from paying your bills, cleaning your clothes and listening to you talk about how cool you thought you were. So before you save the rain forest from the parasites of your parent's generation, try declosing the closet in your room

8. Your school may have done away with winners and losers but life has not. In some schools, they have abolished failing grade and they give you as many times as you want to get the right answer. This doesn't bear the slightest resemblance to anything to real life.

9. Life is not divided into semesters. You don't get summers off and very few employers are interested in helping you find yourself. Do that on your own time.

10. Television is not real life, in real life, people actually leave the coffee shop and go to work

11. Be nice to nerds, chances are you will end up working for one

(Post 60/week 48)Zero dollar project updates:carousell,Bitcoin Faucets,Short Link,Online survey and Adsense update

Updates for last x week of zero dollar project(Honestly, been too long due to exam)

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

1.Carousell

My carousell:carousell.com/eric996

Been doing some heavy marketing everywhere, gumtree, facebook, you name it...

Total earnings for carousell last week:$4 + $1=$5.00


2.Bitcoin faucets

Current coinpot holding

Bitcoin core: 5718 Satoshi
Bitcoin cash: 8562 bch
Dogecoin: 61.37 doge
Litecoin:  0.00198316 ltc
Dashcoin: 0.00057426 dash

3.Short link

Last x week

Currently

Total earning for short link last x week:$2.5820

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 week(only for nov):paneland

The total payout for last week survey:$5.00

5.Adsense

Last week earning for Adsense:$3.82

Total earnings for last x zero dollar project:$5 + $5+ +$2.58 + $3.82 =$16.40

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

(Post 59/week 47)Investment project update part 2:Posb invest saver NOV 2018 summary

Posb invest saver update(Nov 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
My POSB invest saver update for the month of Sept, read here
My POSB invest saver update for the month of Oct, read here

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

Breakdown of my regular saving plan(A35) this month(Nov 2018)
Total amount(regular saving plan)A35:$100
Price per share:$1.131500
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/$1.131500=87 units

Summary: As of 21 Nov, the share price of A35 was at 1.132, has not changed much from last month, 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.No change in sentiment from last month.

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

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

Total amount(regular saving plan)A35:$100
Price per share:$3.173300
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/$3.3173330=31 units

Summary: As of 21 Nov 2018, the share price of G3B is at 3.16 and ES3 is at 3.083. Both ES3 and G3B has been on a downtrend, will ES3 drop below 3.00?. I think there is still a possibility.  Will continue to 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 58/week 47)Learning investing/trading together part 7:Deciding on a brokerage

Sometime back in April 2018, after selling off my entire POSB invest saver for G3B, you can read about it here. I decided to take a more active approach in my money by foraying into investing/trading. Now, the first thing to do is to decide on a brokerage as a brokerage will allow you to do online and mobile trade

Link:https://blog.seedly.sg/the-ultimate-cheatsheet-cheapest-stock-brokerage-in-singapore/

The research link above from seedly provide a very comprehensive guide on choosing the cheapest stock brokerage in Singapore.

The 1st question to decide on a brokerage in Singapore would be: CDP or custodian?

1. What is CDP? (Central depository pte limited)

As quoted from this SGX link,"CDP is a wholly owned subsidiary of the Singapore Exchange Ltd ("SGX"). We provide integrated clearing, settlement and depository facilities for our customers in the Singapore Securities Market, including both equities and fixed income instruments.

As an investor, you can view and manage the investments you have with multiple brokers through a single CDP Securities Account".

To put it simply...

• CDP is a place where all your shares are stores
• You can only have one CDP account under your name but you can use different broker ranging from DBS, OCBC, POEMS etc
• There will be a clearing fee(0.0325%) and SGX trading fee(0.0075%) on each of your transaction, more on about this in the near future

2. What is Custodian?

• The stock is held by the brokerage you use,e.g standard chartered
• Cheaper than a CDP account

3. Which broker did I choose?

I had already set up a brokerage account in DBS in 2016 at My first stock carnival. It was a fuss-free process of filling up particular form on the application of a brokerage account and a CDP account, which they have provided and voila, my DBS Vickers(DBS brokerage) online trading account and cash upfront account is set up!

What is a cash upfront account?

Link:https://www.dbs.com.sg/vickers/en/resources/faq/cash-upfront-account

• As quoted from the above link, it is a pre-funded account where you need to top up sufficient cash into an account before executing a trade.
• Currently, the cash upfront account only allows you to trade in Singapore Stocks

So, why did I choose DBS as my broker?

• Simply because everyone in Singapore would have a POSB/DBS account when they're born(In short, for convenience sakes).

What is the brokerage fees for DBS  cash upfront account?

• Currently, the brokerage fee for DBS cash upfront account is 0.18%, min SGD10

What should be the minimum amount one should invest? (I mention this a few weeks before in this post)

• 0.18%/100=0.0018
• 10/0.0018=$5,555.55
• The minimum amount that one should invest in each trade should be more than $5,555.55 

***Currently, DBS Vickers is having a promotion 15% trade rebate, this means that the 15% rebate is on the commission, ie 15% rebate on $25 (min standard comm) or 15% rebate on the $10 (cash upfront trade).Up till September 2018. Compare to the previous promotion of $5 trade rebate which I mention in my post a few weeks ago, this promotion definitely loses out.

Most importantly...

***When you make a trade with DBS Vickers cash upfront account, it will only hold your stock for 3 days before transferring to your CDP account, this means that if you have to sell your stock after 3 days, you will have to sell it via your normal cash account when you place the sell order, which means you incurred a brokerage fee of  0.28%, min $25(Will give an example more about this in my future post)

But bear in mind that DBS Vickers cash upfront account only allows you to trade in the Singapore market and not the foreign market, so what if you want to trade in the US market?

Which bring me opening a second brokerage account with standard chartered bank which is a custodian account hence the lower brokerage charges compare to DBS Vickers, you can view the brokerage charges for standard chartered in this link.

• Brokerage charges for standard chartered online and mobile trades:0.20%, min $10
• 0.20%/100=0.002
• $10/0.002=$5000
• The minimum amount that one should invest in each trade should be more than $5,000

So far, I have only use DBS Vickers for all of my investing/trade and have not used standard chartered for any trades yet, but since the brokerage fee policy has changed for DBS Vickers, I will probably start using standard charter more.

What are you guy using for your brokerage? Do share below:)

stay tuned to the next post!

(Post 57/week 45)Learning trading/investing together part 6:RSS (Regular shares savings)

Regular Shares Savings(RSS)

Previously, I have written about my choice for choosing POSB invest saver plan here

What is RSS? 

• RSS plan offers investors an affordable and convenient way of investment by committing a fixed amount of money on a monthly basis for a preferred share, allowing us to enjoy the benefits of dollar cost averaging

What is dollar-cost averaging?

• When the share price is higher, we would buy fewer shares with the fixed dollar amount
• When the share price is lower.we would buy more shares with the same amount
• This means we automatically buy less at market highs and buy more at market lows
• Over time, the price we paid for our portfolio of shares would be averaged out

Benefits of RSS 

1.Affordability

• RSS allows us to buy into selected shares by investing an affordable and regular amount per month, from as little as $100 

2. Dollar cost averaging

• RSS removes the need to time the market and trying to figure out when is the lowest point to buy

3.Flexibility

• RSS generally has a lower cost of transaction with no lock-in period

Who provides RSS?

RSS is offered by DBS group, Maybank Kim Eng, OCBC Bank, and phillip securities

This useful chart from seedly show the different regular saving plans in Singapore

POSB invest saver however only allow you to have a choice between STI ETF(G3B) and ABF  Singapore bond fund index, unlike the other regular saving plan that allows you to choose other shares

As for me, I see the regular saving plan as a form of (dollar cost averaging)savings and defensive measure to ensure that my money continues to grow in an "average result" besides doing trading, saving and whatnots.

So, after giving an introduction to the various forms of investment, next week, I am going to talk about the different brokerages before moving on to some trading strategies that I currently employed or employed, stay tuned to that! 

(Post 56/week 43)Investment project update part 2:Posb invest saver OCT 2018 summary

*100000 views! thank you all for reading my blog!

Posb invest saver(OCT 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
My POSB invest saver update for the month of Sept, read here

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

Breakdown of my regular saving plan(A35) this month(Oct 2018)
Total amount(regular saving plan)A35:$100
Price per share:$1.123100
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/$1.123100=88 units

Summary: As of 22Oct, the share price of A35 was at 1.121, has not changed much from last month, 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(OCT 2018)

Total amount(regular saving plan)A35:$100
Price per share:$3.163600
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/$3.3163600=31 units

Summary: As of 22 Oct 2018, the share price of G3B is at 3.19 and ES3 is at 3.117. Both ES3 and G3B has been on a downtrend,with ES3 hitting this year low 3.077 at Oct, have brought quite a few at 3.1. Will reveal more about it in a future post and may purchase more. Hence, 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!)