RIP Lee Kuan Yew

Condolences to our founding father Mr Lee Kuan Yew, who passed away on the 26 Mar 15 at the age of 91.

It is no doubt that the success of Singapore are fruits of the seeds you sow many years ago.

My ideal US portfolio

Apple

Not only because its Iphone target the upper class market share, Apple had put in a lot of effort to develop an ecosystem within its products. One of the example is iCloud which links all the data of the mac products together.

Visa

One of the highest market share in online / non-online payment services which i see as a very defensive stock.

3M

Developed products that are very durable and its excellent manufacturing quality is curved within its brand that is not easy or rather quite impossible to duplicate.

Disney

Targets the kids around the world with fun, entertaining and educational media which mature with them through adulthood , and they spare no effort to constantly market their brands.

Undervalued stock, Nam Cheong

Nam cheong seems to be one of the very undervalued stocks that is affected by the slump in oil price. Recently, it had sold 2 of its vessels for US $58m and its book orders stood healthily at $635 million ringgit.

Source: http://www.businesstimes.com.sg/companies-markets/nam-cheong-clinches-us58m-orders-for-two-vessels

It has a PE ratio of 5, with a 5% dividend growth rate and its price stood at 1 year low.

Source: http://www.bloomberg.com/quote/NCL:SP


Assessment

Since it sold 2 vessels in USD and its financial statements deal in ringgit, it is very likely that this deal will cause a spike in earnings.

Indicators of a possible interest rates hike

There had been some speculation of Fed raising interest rates. There are some indicators to suggest that interest rates are indeed about to rise.

Below are some of the news to indicate rising interest rates

• Beware of Apple Bond Sales: Company Has Knack for Calling a Top
• Time to haul off and buy junk bonds

SIBOR rates have risen

According to todayonline.com, SIBOR rates hit a 7 years high in Singapore. Seems like new properties have to slash their prices even more to make up for the rise in SIBOR.

Cooling measures from the government are still in place for properties, but whether it will be lifted after a rising SIBOR rates is unknown. As for now, property companies with developments in Singapore could be hit the hardest from this.

Source : http://www.todayonline.com/singapore/homeowners-hit-sibor-rises-highest-seven-years

REITS are in the danger zone if interest rates continue to rise. It is now the best time to keep some cash and wait for something to happen.

What stocks would i buy now?

After Isetan lost $3.1m due to surging rental and keen competition from other new malls. Its future prospects were faced with challenges of increased online shopping.

Source: http://www.channelnewsasia.com/news/business/isetan-lost-s-3-1m-last/1685270.html

As more consumers move to online shopping, there will be more demand for logistics sector in terms of warehouses for storing goods and courier services to deliver goods.

3 sectors for growth (Online shopping)

• Online payment services
• Logistics and warehousing
• Insurance (to protect online consumers)

There are a few stocks that i see opportunity in but not all of them are cheap at the moment.

• Singapore post - Established a good online platform for online shopping and a leading provider of mail, logistics and retail solutions in Singapore
• Global Logistics Property - Invest and own logistic warehouses around the world, also owned or partially owned by state-run wealth fund
• Mastercard (US. listed)  - Provides to a bulk of online and offline payments around the world