OCBC Dividend too

 Another choice to make here: OCBC is offering a cash or stock option.

Similarly to Mapletree NAC, I think cash is the way to go for this time too as I think OCBC is not that undervalued too. Offer price is $11.93 and current price is $12.40. We might see some short term weakness in price due to the lockdown so not too inclined for this. 

OCBC Scrip Dividend Again

 It has been a long time since I posted, and virus numbers seem to be improving. Praying that this will persist. 

It is that time again of the year where it's scrip dividend news!

I had a look at my previous post where I wrote about the scrip dividend last year. Issue price was $9.57 and market price then was about $10.49 (~8.77% discount).

The stats for now is an issue price of $7.81 and market price is about $8.56 on Sep 4 closing (~8.76%). I wasn't very enthusiastic about the last scrip because I thought the price was rather high then. I will be entering for this as $7.81 is a pretty good price to accumulate (bearing in mind the 52-week low is $7.80).

How about you?

Coronavirus and Thoughts

I haven't been posting in a while because of my new job, but I think it is always good to take a step back and formulate my thoughts about recent news.

The best incident to fall back on while considering this issue would be the 2002-2003 SARS outbreak because both incidents are largely similar: SARS started around November 2002 and ended around May 2004. A quick look at the STI:

We can see that from the period from November 2002 to May 2003 there was a clear downtrend in the STI before rebounding decently into 2004.

Currently, the STI seems to be in the infant stage of a downtrend which suggests some potential buying opportunities. I came across this article which aptly compares the two outbreaks.

Further points to take note:

1) China's economy is much bigger now than it was during the SARS outbreak period so the impact is gonna be pretty painful as trade between China and Singapore is quite extensive.

2) Banks will be affected as they have exposure to China; OCBC has the highest exposure here.

3) Airlines are affected too as flights are being cancelled here and there. Example: Hong Kong Airlines being on the verge of bankrupt. Note to self- SIA.

4) REITs with China exposure are already feeling the pain - Mapletree NAC, CapitaChina, Sasseur.

5) Generally, retail should continue to deteriorate as everybody will most likely be minimizing their outside movements. (CapitaMall, Suntec, Mapletree Com, Starhill)

But otherwise, I think it would be a good time to look at the market to consider entry points. Cheers!

OCBC Scrip Dividend

It has come to the time again where we must decide about whether to take the scrip dividend. This time, I think it is a good consideration to take up the offer which is $9.57 per share, which was cheaper than the last scrip dividend offer. It is also below the current NAV of $10 which looks good. Current price is about 10.49 and the last offer for scrip dividend was $10.55.

It would be great if you can leave a comment if you will be taking up the offer. Cheers!

OCBC and Scrip Dividend News

My dad has some OCBC shares and this notice caught my eye. OCBC is offering $10.55 per share when its market price is about $11.01 now. 

Honestly, I am not very inclined to take up the offer as I believe stocks will continue to drop this year due to the continued economic slowdown and trade war.

Will you be taking up OCBC's offer? Let me know in the comments!