Sinotel Technologies a sprint run & no.1 of the 20 Vol shares traded on 02/12/09

Top 20 Volume Shares Traded on 02/12/09; Sinotel was the no.1!

I just noticed that yesterday (02/12/09), Sinotel Technologies was the no.1 stock in the 20 Volume of the shares traded. There were 78,907,000 shares traded and the counter closed stronly at $0.62 which was a jump of 6.5 cts or +11.71% increase compared to the previous day (01/12/09).

What's the reason behind this, I wonder? I googled the net for 'Sinotel Technologies' wondering what's the latest news of this company which may have excited the market.

The only such news I found is on 30/11/09.

Sinotel Technologies Ltd. (ADR: SNOXY; "Sinotel" or the "Company") is a China-based, Singapore-listed company traded on the Singapore Exchange under ticker SGX: D3W and also traded in the United States of America as American Depository Receipt ("ADR") ticker, SNOXY, under the ADR program. Bank of New York Mellon is the Company's ADR Depositary Bank. Sinotel is an innovator of wireless telecommunications infrastructure and solutions in China. Today, the Company announced financial results for the third quarter and nine months period ended September 30, 2009.

-- Revenue for the quarter, in RMB, increased by 57.9% on a year-over-year
basis to $20.0 million, driven by strong demand in Wireless Network
Solutions business, while net profit increased 52.0% on a year-over-
year basis to $6.1 million

-- Revenue and net profit through nine months ended September 30, 2009
increased to $55.0 million and $16.5 million respectively, representing
a 39.6% and 27.3% increase, in RMB, over the same periods of last year


Third Quarter Ended September 30, 2009 Results

Total revenues for the third quarter ended September 30, 2009 reached $20.0 million. The increase of revenues of 57.9% is attributed to increasing demand for wireless network solutions. Specifically, the increase was due to more contracts secured in Shanxi province as well as the increase in sales revenue contribution from the Company's Emergency Mobile Communication System ("EMCS") which was introduced in 2008. Gross profit for the quarter, which was $8.7 million, reflected a 66.8% increase compared to the same period of 2008. The increase in gross profit was driven by the increase in revenue. Gross margin for the three months ended September 30, 2009 was 43.7% versus 41.4% for the same period of the prior year.

General and administrative expenses, which were $1.5 million for the quarter, an increase of 77.4% compared to the same period of last year. The increase in expenses was related directly to the increase in depreciation associated with fixed assets additions during second half of 2008 plus an increase in accrual for performance bonuses. As a percentage of revenue, general and administrative expenses in the third quarter was 7.7%.

Net profit for the quarter ended September 30, 2009 increased by 52.0% to $6.1 million. Net profit margin for the quarter was 30.7%. Earnings per ordinary share for the quarter were $0.02 based on 308,000,000 weighted average number of ordinary shares outstanding. Each Sinotel ADR represents 20 ordinary shares.


Nine Months Ended September 30, 2009

Through the first nine months of 2009, revenues increased to $55.0 million, a 39.6% year-over-year increase. The increase in revenue was contributed from Sinotel's Wireless Network Solutions segment as more contracts were secured from the Shanxi province. The Emergency Mobile Communications System also contributed to the growth of revenues recorded in the nine months period.

For the nine-month period ended September 30, 2009, gross profit was $22.9 million, an increase- of 35.0% compared to the same period of last year. Gross margin for the nine months period ended September 30, 2009 was 41.6% versus 43.0% for the first nine months of 2008.

General and administrative expenses, which were $3.9 million for nine-month period of 2009, reflected an increase of 63.8% compared to the same period of last year. The increase in expenses was related directly to the increase in depreciation associated with fixed assets additions during second half of last year plus an increase in accrual for performance bonuses as reported in the third quarter. The increase was offset by a decrease in staff costs and decrease in other expenses, which include office expenses and professional fees.

The finance costs for third quarter and nine months periods ended September 30, 2009 increased as a result of increased borrowings.

Net profit for the first nine months was $16.4 million, reflecting a 27.3% increase over the same period of last year. Net profit margin for the nine months period ended September 30, 2009 was 29.9% versus 32.8% for the same period of 2008. The slight decrease in net margin was mainly due to increase in general and administrative expenses as well as finance costs.

Earnings per ordinary share for the nine months period ended September 30, 2009 were $0.06 based on the weighted average number of ordinary shares outstanding for nine months period ended September 30, 2009.

Mr. Jia Yue Ting, Executive Chairman of Sinotel commented, "The Group posted a remarkable set of results for the third quarter and nine months this year amidst growing demand for wireless network solutions. Due to the pressing timeline given by our customers, several projects were completed ahead of schedule giving rise to the better than expected figures."


Outlook and Future Plans

Sinotel believes the overall macro environment for China's telecommunications industry remains favorable. The sector continues to enjoy progressive growth driven by the telecom operator's spending on infrastructure and through the development of the country's 3G mobile network.

Mr. Jia Yue Ting added, "China's 3G rollout has been progressing well, and now most of the key cities are 3G capable. We anticipate that the next stage of development will be to increase the capacity of the new network and broaden its coverage to smaller cities."

Going forward, Sinotel intends to focus on developing its business within the eight existing provinces, seeking orders from new cities and penetrating deeper into the rural areas. The Company is confident that its financial outlook will remain favorable for the rest of the financial year 2009.


Balance Sheet and Cash Flow Discussion

As of September 30, 2009, cash and cash equivalents totaled $11.3 million, $53.4 million in accounts receivable with an average days sales outstanding of 197 which, the Company believes, was consistent with that of industry peers, and shareholders' equity of $81.2 million.

From PRNewswire, "Sinotel Technologies Ltd. Posts Strong Financial Results for Third Quarter Led By Accelerating Demand in Wireless Network Solutions Business".

I am curious whether the surge will continue today for this wonder shares.

Meanwhile in Channel NewsAsia forum, the thread discussion on Sinotel has so far reached 229 pages. Check it out at "SINOTEL's Daily Update......."; not much theory was proposed, though, about the bull run of the counter.

Canny investor Ng Wai Chung gets total dividend of $24,000 a year: fact or fiction?

Mr. Ng Wai Chung (he has a blog, "Growing your tree of prosperity" at http://treeofprosperity.blogspot.com/) claims to enjoy a total dividend of $24,000 a year. He claims that he maintains a solid portfolio of 20 shares like Cityspring Infrastructure, Hyflux Water, First Shipping, Pacific Shipping, Suntec Reit, Cambridge Reit, SPH, Singapore Post, M1, StarHub, and Lippo Mapletree Reit. He claims he monitors them daily.

20 shares to be monitored daily? Now, that's incredible. I'm sorry but I find it quite difficult to believe. Moreover Mr. Ng Wai Chung is a senior IT manager. (Not just a manager, mind you. A senior manager!! How could he juggle his time, I wonder?!)

Imagine having a payout from your investments that more than covers your monthly expenses.

Canny investor Ng Wai Chung is in this happy position at the age of 34.

Mr Ng, a senior IT manager - and an author of investment books - achieved this a year ago. But rather than retire, he stays in full-time employment.

His investment income stream is the result of a plan he set in motion three years ago. That was when he decided to sell his investments in unit trusts and buy stocks that pay high dividends.

'Today, I am able to yield about $24,000 a year on my investment portfolio, enough to cover my expenses in most months," he said.

This enviable portfolio consists of real estate investment trusts (Reits) and shares that yield high dividends, such as mainboard-listed Singapore Press Holdings (SPH). Dividends are the portions of profits which a company distributes to shareholders.

Mr Ng has an engineering degree and a master's in Applied Finance from the National University of Singapore (NUS). He obtained the latter part-time while working.

The senior associate in IT governance at commodity and futures exchange Singapore Mercantile Exchange has published three books on finance: Growing Your Tree Of Prosperity (2005), followed by Harvesting The Fruits Of Prosperity (2007), and this year, Sowing The Seeds Of Prosperity. They are available in bookshops.

Mr Ng is married to quantity surveyor Pang Yoke Loo, 31. They have no children.

Q: Are you a spender or saver?

Very much a saver. In most months, my expenses are paid fully from my investment income, which arrives every quarter in the form of dividends. However, I dip into my work income for discretionary expenses, such as a trip to Korea. I can save up to 100 per cent of my salary in some months.

Q: How much do you charge to your credit cards every month?

I have only one credit card. I use it to save money by making purchases over the Internet. Normally, my credit card charges do not exceed $500 monthly. I try and pay the bill even before I receive the statement. I withdraw about $400 from the ATM about twice or three times a month.

Q: What financial planning have you done for yourself?

I invest 80 per cent to 100 per cent of my take-home pay directly in the stock market.

I had about $130,000 in my stock portfolio early this year; this has grown to $250,000 from capital gains as well as monthly cash injections from my savings. I have about 20 counters.

About half my portfolio consists of business trusts like Cityspring Infrastructure and Hyflux Water, or shipping trusts such as First Shipping and Pacific Shipping which, on average, give dividend yields of about 10 per cent. The rest are Reits like Suntec and Cambridge, which give me similar yields.

With the economic recovery, I'm focused on channelling my income into income stocks like SPH and Singapore Post, which will give me about 7 per cent yields. I have also invested about $30,000 of my Central Provident Fund savings in stocks such as M1, StarHub, Lippo Mapletree Reit and Cambridge Reit.

Q: Moneywise, what were your growing-up years like?

My financial habits were shaped mostly by my years as a kid hanging out in my parents' pet shop at Shaw Centre in the 1980s. Life was hard. My parents were at the mercy of the landlord and the consumer. As an adult, I crave job and income security. I am very averse to debt.

Q: How did you get interested in investing?

In my final year at NUS, I picked up Robert Kiyosaki's book Rich Dad, Poor Dad. This spurred me to pursue financial programmes like the Chartered Financial Analyst. Armed with investment know-ledge, I took to writing books to present my financial ideas from the perspective of a non-commission agent.

When I stock-pick, I find out first how much in dividends have been paid out over the past year. I used to aim for 10 per cent but have now lowered this to 6 per cent to 8 per cent. I check if there are any red flags raised by auditors. The free cashflow (operating cashflow minus capital expenditure) must exceed dividends declared. This ensures a company can sustain the dividends. Once the yield drops to, say, 4 per cent, I switch to a better counter. I monitor my portfolio daily.

Q: What has been your worst investment to date?

I had a very painful experience investing in McArthurcook Properties Securities Fund. I accumulated about 108,000 shares through 2007 and last year, and its yield was initially about 30 per cent. The price plummeted to 16 cents, from $1, when the recession hit. And last year, it stopped declaring dividends altogether. I exited in October last year at a loss of about $40,000.

Greed and my obsession for yields created an aversion to letting go of this. I learnt that I should not let my stubbornness get the better of me.

Q: And your best investment?

At the bottom of the market some time last year, I invested about $5,000 in Capital Retail China Trust at 60 cents per share. It had a dividend yield approaching 15 per cent. I have since doubled my money as the price is now $1.18. Most of my high-yielding counters have been doing well since December last year. My entire portfolio has almost doubled in size since early this year.

Q: What property do you own?

I am an only child; I live with my parents in Woodlands - my dad picked up a single-storey semi-detached house in the early 1970s for $70,000. The current value is estimated to be $1.6 million. I do not own any property.

Q: What's the most extravagant thing you have bought?

My iRex Digital Reader 1000S which allows me to download electronic books for easy storage and reading. It cost $1,400. I save 60 per cent to 70 per cent compared to buying the actual books.

Q: What's your retirement plan?

None, if I can help it. Work is a function of ability, and not one's state of financial independence. My personal expectation is to increase my investment income by about $6,000 a year for each year of gainful employment. The rest largely depends on whether I can continue to remain employed and whether my health will allow it.

Q: Home is now...

The semi-detached house in Woodlands.

Q: I drive...

Sometimes I drive my wife's recently purchased weekend car, a white Hyundai Avante.

From Asiaone, "Investment strategy pays dividends".

Wellness Village Spa's 330 angry customers...

They want their money back. They turn to Small Claims Tribunal; some seek waiver from banks. While I'm fully sympathy with their plight, I don't agree that the banks ought to waiver the money.

See, if the banks have already paid the not so well Wellness Village Spa shameless owners Ms. Lia Meyrina, why should the bank suffer the consequence of having to return the money to the conned Wellness Village Spa's customers?!

More than 500 clients left in the lurch by a spa which shut down abruptly last month are exploring all avenues to get back what they paid upfront for treatment packages.

About 520 of Wellness Village's clients have gone to the Consumers Association of Singapore (Case). About 330 have filed claims with the Small Claims Tribunal. Almost 300 have banded together on social networking site Facebook to share information on what they can do.

It is unclear how many clients have been left with paid-for treatments that are now likely unclaimable, or how much they had paid, but the 20 who spoke to The Straits Times had each bought packages costing between $550 and $6,000.

Most said they learnt of the spa through credit card promotions, and had either paid for the packages in full or in interest-free instalments using their cards.

Those who opted to pay in instalments are now trying to at least get the outstanding payments waived. Depending on the credit card they used, they have had varying luck on this front. Those who used Citibank cards have had their outstanding balances waived; those with other banks' cards have been less successful.

Citibank's spokesman said that in a genuine case, backed by necessary documentation such as this one, it would do its best to support its customers.

From Straits Times, "WELLNESS VILLAGE SPA CLOSURE | Clients want money back".

Related Posts:
- The address of Lia Meyrina (the allegedly vanishing director of the Wellness Vilage Spa & Fitness)
- Wellness Village Spa & Fitness is a limited liability partnership...so what?!
- Wellness Village Spa & Fitness outlets disappear? And to think that SIA Boarding Pass Privileges showcase the spa...

Lawrence Lim Hwang Ngin: jail term doubled for this maid abuser

It's been more than one year since this post of mine, "3 entries to Hall of Shame of those who abuse their maid...Presenting: Lawrence Lim Hwang Ngin, Tay Wan Leng, Maselly Abdul Aziz & family". I'm somewhat surprised to read the name Lawrence Lim Hwang Ngin appears again in the news.

His jail term had been doubled to two years! No, it's got nothing to do with those seven charges of sexual abuse, including one count of rape, which Lawrence Lim Hwang Ngin was acquited.

What I really don't understand, though, is why it takes more than one year to double his punishment.

A police staff sergeant who assaulted his Indonesian maid over a period of four months had his jail term doubled to two years on Tuesday.

In the first maid-abuse case to go before the three-judge Court of Appeal, the jail term handed down to Lawrence Lim Hwang Ngin, 37, underscored the Singapore courts' firm stance against those who abuse their domestic maids.

Justice V. K. Rajah, in a 114-page written judgment peppered with denouncements of Lim's conduct, wrote:

'This is a sentence that appropriately encapsulates my profound aversion and disquiet with Lim's deplorable conduct without having the effect of being crushing.'

The case landed in Singapore's highest court because Lim, from the Criminal Investigation Department's Intellectual Property Rights Branch, was first tried in the High Court.

Typical maid-abuse cases are tried in the Subordinate Courts, with appeals - if any - heard in the High Court.

From Straits Times, "Abuser's jail term doubled".

Should the court follow sentencing norms based on the severity of an assault, or can judges consider, in a maid abuse case, the position of authority held by the employer and the vulnerability of the maid as an aggravating factor?

This poser has split the Court of Appeal in a case involving an Indonesian maid who was abused repeatedly by her employer.

The 37-year-old accused, Lawrence Lim Hwang Ngin, is a police officer who was found guilty of kicking the maid, hitting her on the head and rapping her forehead with his knuckles on five occasions between January and May 2006. The maid was 23 at the time.

Now, the appellate court - the highest court in the Singapore justice system - in a 2-1 judgment has opted to not only let his conviction stand, it has doubled his jail term to 24 months.

While the signal from Justices Andrew Phang, V K Rajah and Woo Bih Li is clear - that maid abuse cannot be tolerated - the three Court of Appeal judges were split in their individual conclusions.

Justice Woo, the dissenting judge, felt that the positions of maid and employer ought not to be viewed as an aggravating factor.

He also argued that "there is a current sentencing norm of one to six weeks imprisonment in cases where there is no serious physical injury".

But in the 114-page written judgment, Justice Rajah opined: "Surely, it cannot be said that an abusive employer who persistently mistreats and humiliates a maid and then later physically injures her should be sentenced similarly with one who ordinarily treats a maid well but then on a solitary occasion loses control of himself and then inflicts a similar injury?"

"Does that mean that anything short of a grievous or permanent injury is not a serious injury?" he wrote.

Justice Phang, who agreed with this conclusion, added that "the sentencing process is not - and ought not to be - a mechanistic one".

This case was unique, as the accused had admitted that he wanted to wage "psychological warfare" on his victim, added the judge.

Justice Kan Ting Chiu, who presided over the trial last year, had also noted a pattern of assault, which took place at regular intervals.

Lim had initially faced 13 charges for sexual and physical assault on the maid, who cannot be named, but was acquitted on all allegations of sexual offence, including rape, because of reasonable doubt.

He then appealed against the sentences for his five convictions and the verdict for three of those, while the prosecution had appealed against the length of the jail terms for all five charges.

Justice Phang noted: "When the severe physical injuries inflicted on the victim are coupled with the mental abuse which she was subjected to (all in a systematic and patterned fashion), it can be seen immediately that the sentence meted out by the Judge in the court below is, with the deepest respect, manifestly inadequate."

From Today, "Split judgment in maid abuse case".

Tiger Beer Classic Special Edition: a failure?

I've just realized that I have bought 3 beers from Changi Airport duty free shop some time in year 2007. It's 2 years back. And even though the beer is labeled 'Tiger Beer Classic Special Edition' (nice design of the can, huh?), the usual rule of 'best consumed within 6 months of the brewed date' still, unfortunately, applies.

Pity. I tried to console myself by gulping down those expired beers. Nah, just kidding. I tried to feel better by googling about 'tiger beer classic special edition', just to find out more about the beer.

This one site beeradvocate.com has two reviews about the beer:

1. Not good. Sweet and sticky malts. Little hops or bitterness to speak of, pretty bad, i haven’t had regular Tiger in a while, but it would probably be better than this. Not particularly special in anyway over the regualt Tiger, this is just more concentrated with atocuh more alcohol.

and

2. A Singaporean student brought back a three-pack of cans from Singapore for me. He says this is not the same as the standard Tiger Beer, but the taste is not far off. The 330ml gold can reads "Classic Special Edition" in big red lettering. The abv is stated to be 5.5% and "DFS" (?) is marked on the top.

The beer is a slightly orange-ish gold and clear as day. The foamy head is dense and off-white. Aroma is nutty and sweet. The sweetness shows up in the slightly strange-tasting front. The middle is just a little fruity, leading to a bitter, but sugary finish. Obvious alcohol betrays this as possibly the "strong" version of regular Tiger Beer.

There aren't really enough good beer flavors going on here. Just straight sugar + uninteresting bitterness. (Some nuts, too, to be fair). It's kind of like drinking with a cold.

I ought to feel better after reading the negative reviews on 'Tiger Beer Classic Special Edition'. But somehow I didn't. I love my Tiger Beer! (No, again, I am not vested in Asia Pacific Brewery shares!!)

Tiger Beer related posts:
- Tiger Beer: "The Last Tiger. Worth Playing for" TV ads with 2 different endings
- The Last Tiger. Worth Playing for? (More like 'Paying')

CEPAS card: a cashless society?!

It sounds rather ominous, I'd say. A cashless society: where people do not have any cash?

Okay, seriously. It actually means that the future when people are to conduct their transaction without using any cash.

That's where CEPAS card comes into the picture. CEPAS (stands for Contactless e-Purse Application) is a Singaporean specification for an electronic money smart card. CEPAS has been deployed islandwide, replacing the previous original EZ-Link card effective 1 October 2009. (Yes, it also has an article in Wikipedia on CEPAS).

It will soon be more convenient for you to pay for your transactions using your CEPAS stored value cards.

The Infocomm Development Authority (IDA) and five companies from the industry are spending S$16 million to increase the number of point-of-sales terminals for using these cards. The aim is to increase these terminals from the current 5,000 to 24,000 by 2011.

The five companies involved in the Call-for Collaboration with IDA are EZ-Link Pte Ltd, Nera Telecommunications Ltd, Network for Electronic Transfers (NETS) Singapore, PaymentLink Pte Ltd and Way Systems Solutions Pte Ltd.

This was announced by Acting Minister for Information, Communications and the Arts, Lui Tuck Yew, at the Infocomm Industry Forum on Monday.

Singaporeans are currently holding nearly six million CEPAS cards, using them to pay for their travel on buses and MRT trains as well as purchases from some retailers.

This convenient mode of payment is set to be expanded very soon. The infocomm industry is broadening the use of the CEPAS card for payment to many more outlets like shopping malls, food outlets and convenience stores.

It is all about creating awareness of a cashless society.

Jeremy Tan, managing director of PaymentLink, said: "There are a lot of inconveniences in using cash and coins. Because we have been using (this mode of payment) for so many years, a lot of us don't recognise the inconvenience - but actually if you think about it, the coins that you get, the change, the calculations that you need to do, the bowl of coins that we have...

"The consumers already have the cards. It is now (a matter of) getting the merchants to be comfortable (with payment by card)."

Hence, IDA and the five companies involved in setting up point-of-sales terminals will be providing incentives to encourage merchants to install the devices. Among the perks is a terminal rental waiver for at least a year.

The key to encouraging Singaporeans to go cashless is also to ensure that there are adequate facilities for them to top up their CEPAS cards with sufficient money so that they can use the cards to pay a whole range of transactions, thus avoid using cash.

Nicholas Lee, executive director of EZ-Link, said: "We recognise this issue from the start and we have been working with DBS bank to equip its islandwide network of DBS-POSB ATMs to (enable customers) top up the EZ-Link cards as well when they withdraw cash. That will span over 900 machines islandwide."

He added that EZ-Link is also working with the operator of the AXS machines, which number 200 now, to accept the EZ-Link card as a means of top up.

When fully implemented by 2011, IDA believes the additional point-of-sales terminals can generate over 94 million e-payment transactions per year.

From Channel NewsAsia, "CEPAS cards can be used in more places by 2011".

And also a related post published in early November this year:

From next year, consumers can use their ez-link cards at more shops and restaurants.

PaymentLink - card operator EZ-Link's partner, previously known as QB - plans to expand the number of shops that accept the new Contactless e-Purse Application Standard (Cepas) card by three times.

More than 5,000 retail points accept this payment method at present. They include 7-Eleven stores, SMRT taxis and eateries in National University of Singapore and Nanyang Technological University.

The company, which started ez-link payment services in 2002, hopes to triple the number of retail points to 15,000 by the end of next year.

It has already roped in retail giant Dairy Farm Singapore, which will install 1,000 terminals in 226 branches of its supermarkets and convenience stores, including Cold Storage and Giant, by the second quarter of next year.

Dairy Farm Singapore came on board because ez-link is a very convenient form of payment and has a large consumer base, said its spokesman.

"Many users of ez-link are also our customers, hence we decided that it would be beneficial to add ez-link to our portfolio of services," said the spokesman.

More than six million ez-link cards are in circulation here.

This is the right time to expand the network as infrastructure for the Cepas system has been completed, said PaymentLink's group managing director, Mr Jeremy Tan.

The card's stored-value capacity has also been increased from $100 to $500, opening up more avenues for consumers to use it for retail transactions, he said.

"We are optimistic about the growth potential for contactless card payment here," he added.

Last month, Network For Electronic Transfers (Nets) launched its multi-purpose contactless card, FlashPay, breaking EZ-Link's monopoly over the $1.3-billion transit market.

This card can be used at 2,500 stores, such as Old Chang Kee and Polar Puffs.

About 39,000 of these cards have been sold, said a Straits Times report two weeks ago. IT executive Hor Woei Ming, 24, uses his ez-link card to pay for taxi fares and buy drinks from vending machines.

"It is especially helpful when you don't have cash," he said.

But he does not foresee using it for more expensive purchases, as he will not store too high a value in the card, which is not password-protected, he said.

From Asiaone, "More retail outlets to accept ez-link payments".