(Post 66/week 51)Investment project updates(Peer to peer lending):Moolahsense(My tenth campaign)

Moolahsense(My tenth 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$100,000.00
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:17%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 17%, this means that at the end of the tenor, which is 12 month I will expect to receive $117
• 100%=$100
• 17%(Interest for 12 month/1 years)=$17.00
• 117%(The Principal + the interest)=$100+ $17.00=$117.00
• Since the tenor is 12 months, each month I will receive $9.75(inclusive of interest) in payment/equal installment
• 1month=$117/12=$9.75

Summary company profile

• The issuer is a company incorporated in Singapore in 2010.
• The Issuer is in the building and construction industry and has around 40 employees. 
• The Issuer specializes in scaffolding works.
• The Issuer is registered with the Building and Construction Authority as a Registered Contractor for Formwork (i.e. scaffolding) and for Air-Conditioning, Refrigeration & Ventilation Works
• The Issuer is a member of the Association of Process Industry, a trade association for businesses in the petroleum, petrochemical and pharmaceutical sectors, as well as engineering companies which provide facility maintenance and construction services for those sectors

Detail of purpose

• The Issuer seeks working capital for the performance of various scaffolding works 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 2017/right side of the column is for the year 2016)

Year 2017/Year 2016

(Current ratio 2017:2.28),(Current ratio 2016:1.8)

• 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 2016:1.8, it is lower than the recommended range(>2.0)
• For the current ratio of 2017:2.28, it is higher than the recommended range(>2.0)

(Quick ratio 2016:1.3),(Quick ratio 2015:1.09)

• 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 2016:1.09, it is lower than the recommended range(>1.25)
• For the quick ratio of 2017:1.3, it is higher than the recommended range(>1.25)


(Total liabilities/equity 2016:0.79),(Total liabilities/equity 2015:1.19)





• 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 2016:1.19 it is out of the recommended range(<0.75)
• For the Total liabilities/equity of 2017:0.79, it is out of the recommended range(<0.75)

Why did I invest in this loan?

• The current ratio and quick ratio of 2016 along with total liabilities/equity is out of the recommended range,however the current ratio,quick ratio and total liabilities/equity has improve from 2016 to 2017,hence i believe it will continue to improve in 2018.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=$1.42/$100=1.42%(Percentage conversion must *100)

Effective interest rate:1.42%*12=17.04%(almost the same as the target interest rate at 17%(see top of the post))

From the above picture, you can see that the Net repayment is at $9.03 instead of the $9.75 that I have mentioned above at the working capital, hence I will do a calculation here again

1-month repayment:$9.03

6-month repayment:$9.03*12=$108.36

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

$100=(100/100)*108.36=108.36%

108.96%-100%=8.36%

The target interest rate as you can see in my above post is at around 17%P.A, after taking into account of the tenor rate being 12 months compared to 8.36% 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 (17%P. A) high-interest rate campaign in moolahsense, you will get only about 8-9%

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

(Post 65/week 51)Zero dollar project updates:carousell,Bitcoin Faucets,Short Link,Online survey and Adsense update

Updates for last week 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

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

Total earnings for carousell last week:$3.50 + $1=$4.50


2.Bitcoin faucets

Current coinpot holding

Bitcoin core: 5896 Satoshi
Bitcoin cash: 10646 bch
Dogecoin: 62.45 doge
Litecoin:  0.00207161 ltc
Dashcoin: 0.00063188 dash

3.Short link

Last x week

Currently

Total earning for short link last x week:$0.30

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):surveyon

The total payout for last week survey:$2.00

5.Adsense

Last week earning for Adsense:$4.73

Total earnings for last week zero dollar project:$4.50 + $0.30+ +$2.00 + $4.73 =$11.53

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

(Post 64/week 50)Learning investing/trading together part 9:How to purchase a stock part 2?(DBS vickers)

For more information on the various term, please refer to this link

Continue from part 8: How to purchase a stock? (you can read all about it here)

16)Change the account-cash upfront

17)Change the buy action to buy or sell

Some key term to note...

Settlement mode

• Cash or Cash upfront
• Choose cash upfront if you are using cash upfront account

Settlement currency

• The money that you would like to purchase the stock with, for purchasing of US stock(USD) and for purchasing of Singapore stock(SGD)

Stock name

• Name of the stock itself,in my case it is the STI ETF

Stock Code

• Stock code as the name implies, SPDR STI ETF(ES3)

Order type

• The below chart does a good job of explaining the various order type
• Market order-Buy or sell at the current Ask price(Order get filled immediately)
• Limit order-Buy or sell at a specific price(Order filled depend on the price you key in, will explain later in the post)
• There is no stop order for DBS Vickers(correct me if I am wrong)

Order duration

• A Good for Day order is a limit order good for that business day only. If the order is not filled by the end of the trading day, the order will expire. 
• This is the order we are going for, for simplicity sake. 

18)Key in the quantity of stock that you would like to buy

SGX(lot size)=100 shares

19)Key in the price that you would like to bid

The price that I would like to bid:$3.095

You may ask why $3.095?

Remember the place order from the last post? (Black circle)

• The bid price is $3.095(Note: this may not get your order to fulfill instantly and your order will be added to the queue)
• This is like trying to bargain with a shop seller at a market to buy an item(e.g fish) which the price tag stated as selling for $4, but you want to buy it cheaper at $3.50

Can you bid lower than $ 3.095?

• Yes, you can put the bid price at $3.094 or $3.00(Note: this may not get your order to fulfill instantly and your order will be added to the queue)
• This is also like trying to bargain with a shop seller at a market to buy an item(e.g fish) which is stated as selling for $4, but you want to buy it cheaper at $3.50

Can you bid higher than $3.095?

• Yes, you can put the bid price at $3.100(Note: this will get your order fill instantly because you are purchasing the stock at the selling price(Ask))
• This is just like buying an item (e.g fish) at a stated price from the shop seller at the market without any question asked, you hand over your money and off you go

What does it mean by having my order added to the queue?

• Since there is no seller willing to sell(ask) at the price you want(bid), your order is added to a queue
• A queue is like a database where they store everybody offer whose order is not filled, the order is more likely to fill quickly if you key in the price nearer to their Ask price(selling price)-
• E.g you key in 3.099 as your price and the Ask price is 3.100(below in the picture

20)Click the confirm order button to place your order(Black circle)

A few more key term to note...

Total contract value

• The total contract value would be $3.095(the price that I have key in) * 100(quantity) =$309.50

Commision

• I mentioned before in my post a few ago about the DBS Vickers commission
• Currently, the brokerage fee for DBS cash upfront account is 0.18%, min SGD10

Clearing fee

• Also mentioned before in this post
• Total Contract Value(100%)=$309.50
• Clearing fee(0.0325%)=$0.10

SGX trading fee

• Total Contract Value(100%)=$309.50
• SGX trading fee(0.0075%)=$0.02

GST

• The irony even though, I am doing it DIY...
• GST is 7% of Comission + Clearing fee + SGX trading fee 
• GST=7%(the magic number)
• Commission + Clearing fee + SGX trading fee =100%
• $10.00 + $0.10+ $0.02=100%
• 100%=$10.81
• GST=$0.71

Total Comission and fees

• Commission + Clearing fee + SGX trading fee + GST=Total Comission and fees
• $10.00 + $0.10 + $0.02 + $0.71= $10.83
• Total Comission and fee = $10.83

Indicative total proceed

• Total Contract value +  Commission + Clearing fee + SGX trading fee + GST=Indicative total proceed
• $309.50 + $10.00 + $0.10 + $0.02 + $0.71= $320.33
• Indicative total proceed=$320.33

I will not proceed with the next step as it means that I have purchased a stock. Hope you all learn something from my post, do watch out for my next post:)

(Post 63/week 50)Learning investing/trading together part 8:How to purchase a stock?(DBS vickers)

When I first started out on my buying stock, I search all over the internet for information on how to purchase a stock. But there wasn't much info out there(Trust me, I still haven't found any yet).

So here is a step by step guide on how to purchase a stock on DBS VICKERS(Apologies for not showing how to link the brokerage to CDP, but I have absolutely no way to replicate those step, you can comment below if you need any help though)

*P.S You can also skip this guide and contact your broker to guide you through step by step!

**As of 2020 ,new DBS Vickers Account do not need to topup your DBS Vickers Cash Account as new account holders will have their own eMCA Account linked to their DBS Vickers Account and all the funds in the eMCA account can automatically be used for DBS Vickers Cash Upfront when you login from your iBanking and select DBS Vickers.Hence you can skip to step 2

Step 1)Transfer money into your DBS Vickers account

How much to transfer? 

• Well, it depends on how much your budget to purchase those stock and whether you have enough in your bank(laugh)
• Currently, the brokerage fee for DBS cash upfront account is 0.12%, or min SGD10 whichever is higher
•  Hence, the amount one should invest to maximize brokerage fee is $8,333.33
• 0.12%/100=0.0012
• 10/0.0012=$8,333.33
• The maxmimum amount that one should invest in each trade should be not more than $8,333.33 
• SCB charges 0.2% or minimum $10
• FSM charges 0.08% or minimum $10
• if you are investing up to $5,000, you can either use DBS Vickers or SCB or FSM.
• If you are investing above $5,000 and up to $8,333.34, use either DBS Vickers Cash Upfront or FSM.
• If you are investing above $8,888.34, use FSM.
• ***Note: You can invest in any amount you like it need not be $8,333.33, in my personal case I use either $3000 or $5000

So you have decided the amount? What's next?

• Transfer the money, of course!

1. Go to the investing tab in your DBS banking website and click on more investment services(black circle)

2. You will reach this page

3.Scroll down and select Top up cash to DBS Vickers account(Red circle)

4.You will Probably be asked to enter your sms 6 digit pin number at this time

5.After entering the your sms 6 digit pin number,you will arrive at this page

6.Scroll down and enter the amount you would like to transfer to your dbs vicker cash upfront account(e.g $1000),*take note it is an immediate transfer

7. You will be asked to verify the amount, click the submit button

8. After clicking the submit button, you will be shown the below screen

Step two)Time to buy some stock!

9. Go to the invest tab and click DBS Vickers online trading(Black circle)

10. You will be brought to this page, click the next button(Red circle)

11.Welcome to DBS Vickers! On the right side, you will see the drop down option to switch between the cash account and cash upfront account, the cash upfront account should reflect the amount you just deposited

12)The cash upfront buying power showed how much I have transferred into DBS Vickers, which in my case is $1000

13)Go to the trade tab and click place order(Blue circle)

14)You will be brought to the place order page, scroll down to the place order part

15)Start by entering the stock code that you would like to purchase(google for the company stock code if you are unsure)

This post is getting a little too long, I never really like long post, so I am going to continue this at my next post after explaining the various term

So, in my case I enter in the code: ES3(STI ETF)*Take note, this is different from the other STI ETF that you purchase with POSB invest saver(For more information about the difference between the two ETF, read here)

The terms are taken from this post, a while back,some important terms are...

Last

• Last action-how much was this share bought or sold for

Bid

• Bid-how much someone is willing to pay for the share

Ask

•  Ask is the price a seller is willing to sell the share

Bid Vol

• Bid volume is buying volume because it has the potential to move the price up,in the above case it mean someone is buying 74900 shares at 3.095

Ask Vol

• Ask vol is selling volume because it has the potential to move the price down,in this case it mean someone is selling 2000 shares at 3.100

*As taken from here: When a market is experiencing more buying volume than selling volume, it means that there are more traders buying at the ask price, which has a tendency to push the price up.

When a market is experiencing more selling volume than buying volume, it means that there are more traders selling at the bid price, which has a tendency to push the price down.

Chg or change

• For a stock or bond quote, change is the difference between the current price and the last trade of the previous day

High

• Today highest price for the stock so far

Low

• Today lowest price for the stock so far

*Will continue at part 9:How to purchase a stock(part 2)?(DBS vickers)

(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!