Can You Still Invest in Singpost?
Investors who invested in SingPost after Value Investing Summit 2014 made 40.29% in capital appreciation and dividends… have you?
One of the highlights of the Value Investing Summit is the discussion of case studies. In Jan 2014, 8 Investment Co-Founder, Ken Chee shared a stock that 8 Investment has invested in the Singapore Stock Exchange. This stock has not been in the limelight of investors for many years. In fact, that business was thought to be a sunset business. However, this business came to Ken’s radar when he noticed a change in his wife’s shopping habits.
In recent years, Ken’s wife has been doing online shopping due to convenience and the variety offered in websites such as Alibaba and Taobao. The frequency of online purchases increased after the birth of their twins… parcels after parcels…. And all these parcels were delivered to their home by one company — SingPost.
In late 2013, Ken, together with 8 Investment analysts decided to study the business model of SingPost. So, what did Ken shared about SingPost in the VIS 2014? We have a snippet of it here.
At that point of sharing in Jan 2014, SingPost was only trading at $1.34.
Key Growth Driver:
Strategic partnership with Alibaba
On May 27 2014, Alibaba completed the investment of S$312.5m in SingPost for the purchase of 30 million existing treasury shares and 190 million new ordinary shares at S$1.42/share. This gives Alibaba a 10.35% stake in SingPost, making it the second largest shareholder behind SingTel. Alibaba’s decision to partner SingPost rather than other regional logistics providers reaffirms the company’s leading position in e-commerce logistics.
The two parties also signed an MOU to negotiate a potential JV that will create a platform or international e-commerce logistics. While details of the JV with Alibaba are yet to be set in stone, SingPost believes that its partnership with Alibaba has the potential to increase shipment volumes by 3-4x. We think these volumes will come gradually rather than overnight as
1) both parties will need to integrate their back-end systems, and
2) SingPost will over time build significant scale across the region.
As at 14 Oct, SingPost share price has risen to $1.83. Our VIS 2014 participants who have taken action to invest in SingPost made at least 36.5% in capital appreciation and 3.7% in dividend yield. No monitoring, No charting, No options.
Have you missed this opportunity? Are you going to miss more of such good opportunities to learn what the successful investors are investing in?
The Value Investing Summit 2015 is going to be held on 24 – 25 Jan 2015 at the Singapore Expo, Max Atria. We have invited 8 outstanding Value Investor Practitioners to share with you more ideas on value investing. Our keynote speaker will be Thailand’s “Warren Buffett”, Dr Niwes Hemvachiravarakorn. Dr. Niwes was ranked as one of the “World’s 99 Greatest Investors” by Magnus Angenfelt’s, The World’s 99 Greatest Investors (2013) [See Below Picture]. For the past 17 years, Dr Niwes grown his savings from USD300,000 to USD100,000,000, a compounding return of 40.7% per year!
Grab your Early Bird Price tickets by 30 Nov 2014 at www.valueinvestingsummit.com.Earning Disclaimer
“Please note that the material here is provided to you for general information and illustrative purposes only, or as descriptive case studies on how our value-investing principles may be applied. It is not intended to be and should not be construed as any form of general or specific financial advice. For the avoidance of doubt, we do not recommend or provide opinions on how or what you should or should not be investing in, and you should always do your own research and independent assessment before making any investment decisions, taking into account your own specific circumstances. If you require any financial advice on investments or any other financial matters, please consult the relevant professional financial advisers.”