Earlier this week, on 21 May 2024, I was invited for a short interview on Money FM 89.3, Singapore’s first business and personal finance radio station, by Chua Tian Tian, the co-host of the station’s The Evening Runway show. We discussed a number of topics, including:
- OUE’s announcement to buy back up to around 84 million shares in an off-market purchase (Hint: It looks like good capital allocation from OUE’s management on the surface because the company ended 2023 with a book value per share of S$4.31; the buybacks, which could be up to 10% of OUE’s outstanding shares, would be done at a price of S$1.25 per share, which equates to a price-to-book ratio of just 0.3; the buybacks would also not harm OUE’s balance sheet in any material way since it would cost S$105 million at most while the company ended 2023 with shareholder’s equity of S$3.6 billion)
- Singapore Airlines’ agreement with Garuda Indonesia to explore revenue sharing arrangements for flights between Indonesia and Singapore, and to partner on their frequent flyer programmes (Hint: The latest agreement is unlikely to move the needle for Singapore Airlines because the entire SIA group serves more than 100 destinations in nearly 40 countries and Indonesia is just one of many key markets for the airline)
- City Developments’ sales revenue in Singapore for the first quarter of 2024 and what it means for the property sector in Singapore (Hint: City Developments had a strong performance, but the company’s numbers cannot be seen as a broad read-through of Singapore’s property market)
- Tencent’s suspension of its Dungeon & Fighter Mobile game within an hour of its Chinese debut and what it means for the company (Hint: For now, it seems that the game is enjoying really strong demand from gamers, and this bodes well for Tencent’s business)
- The bankruptcy of US seafood restaurant chain Red Lobster (Hint: Red Lobster appears to have been badly mismanaged; court documents for its bankruptcy revealed that Red Lobster’s restaurant leases were “priced above market rates” and there were questionable aspects with its food ingredient procurement practices)
- Nvidia’s earnings and what it means for the company’s share price (Hint: How Nvidia’s share price will react in the short run is anybody’s guess, but over the long run, the company’s share price movement will be determined by its business performance; its business performance, will in turn – at least based on the current picture – be largely determined by the growth in demand for its AI GPUs in the years ahead)
You can check out the recording of our conversation below!
Disclaimer: The Good Investors is the personal investing blog of two simple guys who are passionate about educating Singaporeans about stock market investing. By using this Site, you specifically agree that none of the information provided constitutes financial, investment, or other professional advice. It is only intended to provide education. Speak with a professional before making important decisions about your money, your professional life, or even your personal life. I have a vested interest in Costco, Tencent, and TSMC. Holdings are subject to change at any time.