Top 5 stocks at bargain prices

Sabana Reit - 18% dividend yield based on last year payout

Asian Pay TV - 21% dividend yield based on last year payout

Cache Logistics- 11% dividend yield based on last year payout

Wee Hur Holdings - 12% dividend yield based on last year payout

M1 - 9% dividend yield based on last year payout

Cache Logistics - Yield Play

Technicals

Based on the 10 year chart, Cache logistics is trading at a 10 year low with a dividend yield of 8-11%. 

About Cache

Cache's portfolio comprises 19 high quality logistics warehouse properties strategically located in established logistics clusters in Singapore, Australia and China. The portfolio has a total gross floor area of approximately 7.5 million square feet valued at approximately S$1.3 billion as at 30 September 2016.

Hong Fok, secretly moving

Hong Fok's a very quiet stock that no investor will notice. It is a property company and owns The Concourse as its biggest assets. Its net asset value stood at $2.36 while it is currently trading at $0.79.

Directors in the company is actively buying back Hong Fok shares and recently, it announced plans to issue 1 bonus share for every 10 shares owned.

Beware of China markets

This article explained that the Chinese government are allowing the people to buy stocks with borrowed money, and they can even use their house as collateral to buy stocks. This move is aggressive and not sustainable.

Source: http://www.bloombergview.com/articles/2015-07-06/chinese-imitate-western-steps-with-stock-market-interventions

Although Goldman Sachs and DBS CEO said that the china markets are not in a bubble yet, it could probably be the case of easing the public about the dangers of the China market.

Source:
http://www.smh.com.au/business/markets/goldman-sachs-stays-bullish-on-china-stocks-20150708-gi7cjs

Today, Chinese government told China state-owned firms not to sell shares despite stock market plunge with hope to stablise share prices.

Source:
http://www.straitstimes.com/business/companies-markets/china-tells-central-government-owned-firms-not-to-sell-shares-as-stocks

If there is too much reliance on the government to influence share prices, markets may move up or down corresponding to government decisions rather than fundamentals.

As of now, i think that retail investors should still look into SGX stocks. Although SGX had reported failling liquidilty in the markets. However illiquid SGX may be, it based in Singapore and supported by a stable currency.

As SGX is highly regulated by MAS, it is for now safer to invest here than China.

20k Portfolio in Blue Chips SGX stocks

My perspective of a $20k blue chip stocks for retail investor. Below are a list of stocks that would construct a retail investor portfolio.

Prices of Stocks

• STI ETF ($3.38)
• M1 ($3.25)

4000 shares x STI ETF = $13,520

2000 shares of M1 = $6500

Total cost is = $20,020

STI ETF provides excellent diversification in the event of a single sector crash. Its top 5 holdings include 3 relatively strong Singapore banks namely DBS, OCBC and UOB.

Source: Bloomberg

Current Dividend Yield 2.75%

Over a 10 year period, the STI ETF provided a return of 9.06% including dividends and 5.89% excluding dividends

Source: STI ETF Annual Report

M1's recent drop in price due to news of a fourth telco had became an attractive buy with a dividend yield of 5.83%.

Source: Bloomberg

Its recent first quarter financial statements, M1 slashed off 16% of its debt. Lesser company debts keep M1's balance sheet healthy. 

19 Jun 15, chairman of M1 bought 50,000 shares at $3.23 each. This could be an indication of a slightly undervalued share value.

M1, a relatively stable Blue Chip Stock

M1 is relatively stable, given its consistent payout of dividends and rolling out of its 4G network. Although it only focuses on non-tv business, it experienced a healthy net profit growth of 6.6% in its 1st quarter of 2015 as compared to 2014.

It reduced its borrowing from $52 million to $3.8 million, a 92% reduction and also see its cash flow reduced by 83% from 103.9 million to $17.8 million.

Without the need to concentrate on TV business unlike Starhub and Singtel, it should have more resources to its 3 core services namely Mobile telecommunications, International call services and fixed services.

A right decision to sell Pan United

I bought Pan united on the 1 Oct 12 and sold it on 16 May 14. Initially, i see this company as a dominant supplier of basic building materials in Singapore, coupled with huge government initiatives to upgrade infrastructure and build public housing.

However, the company acquired Changshu Changjiang International Port (CCIP) for RMB436.5m in Feb 14. The news was bad in my perspective because port facilities will incur more expenses to maintain.

I like its supply of basic building materials business in Singapore, but do not like that fact that it is acquiring a port and not focusing on its profitable business. With so much assets to handle, this company may not be able to concentrate on what's most profitable to itself as well as to shareholders.

The image below is taken from SGX website show a review of its FY2014 performance indicating that CCIP was part of an increase in interest costs and depreciation expenses.

How warrants can reduce your risks in the stock market

This is a video by Macquarie Investor Academy to show you how warrants can reduce your risk exposure to the volatility of the stock market.

Structured Warrant Video by Macquarie Investor Academy