It is that time of the year again. Working on weekends to hit record billables for the firm, in exchange for getting extra pay.
Honestly, I had thought that this was only going to start in June. Hence, I had strapped myself down for a long, harsh June winter. But it seems like winter came early. Well, what does it matter? Nothing stands in the way between me and FI. So rise up Dovahkiin!
Harsh winters will always come. Hence, one should always pick stocks that can weather tough times. Just like picking a Skyrim class - always go for stealth archer, and not some lame ass one-handed sword wielder. Stealth archers own everyone, whereas one-handed specialists die before that dragon even lands (on legendary difficulty).
On that note, it is worthwhile pointing out that Singtel did poorly for their Q4 (ended Mar 2018) results. Net profit was down a whopping 19% y-o-y. The management attributed that to adverse FX effects (both IDR and AUD weakened against SGD), and lower contributions from their foreign subsidiaries Telkomsel and Airtel.
Ominously, Singtel said:
To me, this is not a good sign.
Singtel admits that telco revenue is shifting from traditional voice services to data services; however its increase in data revenue does not appear to be keeping pace with the loss of traditional revenue.
While Singtel is a stalwart and we can expect its digital and ICT investments (e.g. Amobee) to eventually do well, the transition is not going to be pretty I suspect.
As an income investor, I must say I do not have sufficient confidence that Singtel can maintain its current 5% yield. So it is indeed good that Singtel pledged to maintain its dividend for the next 2 years. My average entry price in Singtel is 3.5; so i should have some window to liquidate my Singtel position before its dividend payout becomes inevitably reduced.
Be nimble in responding to changing environments. Reallocate resources when needed.
Onward to FI!
Honestly, I had thought that this was only going to start in June. Hence, I had strapped myself down for a long, harsh June winter. But it seems like winter came early. Well, what does it matter? Nothing stands in the way between me and FI. So rise up Dovahkiin!
 | |
| I am going FUS RO DAH your ass so hard. Die Billables! |
Harsh winters will always come. Hence, one should always pick stocks that can weather tough times. Just like picking a Skyrim class - always go for stealth archer, and not some lame ass one-handed sword wielder. Stealth archers own everyone, whereas one-handed specialists die before that dragon even lands (on legendary difficulty).
On that note, it is worthwhile pointing out that Singtel did poorly for their Q4 (ended Mar 2018) results. Net profit was down a whopping 19% y-o-y. The management attributed that to adverse FX effects (both IDR and AUD weakened against SGD), and lower contributions from their foreign subsidiaries Telkomsel and Airtel.
Ominously, Singtel said:
"Barring unforeseen circumstances, the group expects to maintain its ordinary dividends of 17.5 Singapore cents per share for the next two financial years and thereafter, will revert to the payout of between 60 per cent and 75 per cent of underlying net profit."
To me, this is not a good sign.
 |
| Warning DANGER AHEAD |
While Singtel is a stalwart and we can expect its digital and ICT investments (e.g. Amobee) to eventually do well, the transition is not going to be pretty I suspect.
As an income investor, I must say I do not have sufficient confidence that Singtel can maintain its current 5% yield. So it is indeed good that Singtel pledged to maintain its dividend for the next 2 years. My average entry price in Singtel is 3.5; so i should have some window to liquidate my Singtel position before its dividend payout becomes inevitably reduced.
Be nimble in responding to changing environments. Reallocate resources when needed.
Onward to FI!
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