Hello everybody. This is AK. I'm back.
So, hope everyone's happy with how general election 2025 went. Well, that's over for uh another five years, right? And um let's all cross fingers and hope for the best.
you know what with all the crazy tariffs from Donald Trump uh still in the air, we don't know how things are going to turn out, but I think Singapore will be okay, right? With our reserves and our prudent policies in place. Um I think we should be okay, right?
I hope things are okay. I still I still can't take my CPF, my money out yet. Yeah, let's let's hope things will turn out okay anyway.
Right. So after yesterday's video um I was looking at uh stock stocks uh in my portfolio uh again and I was looking at uh their prices now and uh which one look more interesting. Um I've not been able to look very closely uh in recent weeks because of all the things that's happening at home but this weekend I have some time and uh two other stocks which are looking interesting to me now which are in my portfolio are uh Wilmer International and I global right uh Wilmer International uh is close to my last purchase price of $3 per share skin, right?
And um if you have been following my blog for a long time, you you know that I'm always looking to add at what the insiders think is a good price, right? And uh usually at about $3 or under $3 per share, slightly under $3 per share, we see insiders buying, right? And uh obviously they think that undervalues uh Wilmer International.
And uh when the share price was coming down several months ago, you know, from 3 something down to uh 320 or 310, people were already buying and asking me whether I was adding. I said, "Nope, I'm I wasn't adding. I was still waiting for $3.
" And then someone told me, "Yeah, $310 very cheap already. Right. But I I was quite adamant about waiting for $3.
It's not something that I die must increase exposure to. I mean I like buying things which are undervalued. But we must remember that undervalued can stay undervalued for a long time, right?
And um if I get more at the price at one fine if I don't then that's okay too, right? Wilmer is more like a steady dividend payer in recent years, right? And this is um consistent with what uh Mr Quark said before, you know, uh there will come a time when Wilmer uh sees his businesses mature and he doesn't have to plow in so much money into capex um and it will start paying out more consistent and more meaningful dividends and we are seeing that right.
So um it's a consistent dividend pier but unfortunately it is also pretty cyclical right and so there's um no need to rush to buy at higher prices right so there will always come uh downturns when we can buy at lower prices right and uh Wilma is very undervalued at $3 per share um I mean at the current price it's also undervalued but like I said I've always waiting at $3 per share. That's where a strong support is. Uh to put it quite simply in a nutshell, you know, if we pay $3 per share, we're basically paying for Wilmer's subsidiary in China and everything else that Wilmer has we get for free, right?
More or less is like like that kind of thing. So, you know, if you look at the sum of its parts, Wilmer is worth a lot more than $3 per share, right? So, um I like investing in Wilma at $3 per share because it's undervalues the company and um well, all investments are good investments at at the right price and I think $3 is a right price for for me anyway.
Right. So, um the next one is I global which is also beginning to look interesting. I mean, I think it went down to like 23 cents per share and in the and over the last two years, I kept saying that I wasn't adding.
I was waiting. I was waiting because um the Berlin property uh is being repositioned. All right.
I mean, is been confirmed. You know, we we've we've known this for more than a year, right? And basically it means that we won't be seeing any income from his Berlin property for about two years.
Previously I thought it was one and a half years but now it has been revealed that it's going to take about 2 years to um refurbish or redevelop that property. So they are not going to see any income from that property. And that property accounted for like 25% of I's income right?
So without any income from that property for the next couple of years, we'll see uh DPU coming down by at least 25% or maybe more because they need to borrow money to refurbish that property. Right? Apparently there's not going to be any rights issue or share placements.
They have to borrow money to refurbish that property. And I has currently a very low gearing level. Right?
It's like under 40%. If I'm not mistaken, it's about 37%. And so it has that headroom to borrow against uh in order to refurbish that property without having to come to shareholders for more money.
And already they have um signed two long-term leases with uh two hospitality operators who will take up about one quarter of the property's floor space. And that one quarter of floor space is already going to generate about 50% of the income of the tenant that vacated the property. So like I've said, you know, that property was severely under rented and they could easily command 100% higher rent.
All right. Uh once that property is completely refurbished, once it's up and running, back in operation. So uh at the current price of 23 cents per share uh the market is uh undervaluing I global right.
But if we are focused on the income and we still want the same uh distribution yield like what we were getting before the Berlin property was vacated. we know if you want the same distribution year in the next two years then we would only be biased if the share price comes down by another 20 25%. Right?
Which means that if the and when I talk about this at the time the share price was about 25 or 26 cents if I'm if I remember correctly. So basically I was waiting for the share price to come down to about 20 cents per share before I buy more. Right?
And that's still the plan. If the share price comes down from 23 cents, it comes out 20 cents per share, I'll buy more because then what happens is I'm going to get a same high yield as before, before the Berlin property was vacated. And once the Berlin property is refurbished and two years later is fully operational, the yield will be even higher.
You'll be probably in excess of 10%. Right? And that to me will be a steal.
The danger now is that uh the sponsors might privatize IIT Global. If the share price ever drops to 20 cents, I say, "Oh, that's too cheap. " And they might privatize it.
Uh so that is something that could happen. But uh you know, obviously if I can see value at 20 cents per share, the sponsors the two of both of the sponsors can see value uh there as well is be super undervalued. Right?
So these are two uh counters which I'm looking at possibly adding Wilmer at $3 per share and I global at 20 cents per share. All investments are good and investments at the right price. But remember undervalued can stay undervalued for a long time.
So even if the ideas seem interesting to you and if you do not have the holding power, I'll say don't invest in these two counters. Right? Uh I know these two counters probably a bit better and I'm quite comfortable being invested in them.
Uh and I'm also quite comfortable in adding at the prices that I've uh identified. Um in the meantime, it's okay. I'll just leave my money in the T bills.
You know, I still have my TBU ladder and uh I mean the yield has come down, but it's a very safe place to park my money. There's no price risk, right? There's no price risk.
There's no volatility. You know, 10,000, 10,000, 100,000, 100,000. I just take a small income uh interest income.
um the coupon every six months, right? And uh because I have a letter, it means every two weeks I have some pocket money coming in. It's not a bad place to park my money, right?
I don't have to optimize or maximize returns on my uh war chest, right? Um but I have been uh dismantling the letter a bit, right? Just a bit.
um because I've been buying shares of Alibaba, right? And uh I've been so dipping into the war chest. Um but uh the war chest will get replenished this quarter because the banks uh are all paying dividends and usually second quarter and third quarter I get quite a lot of dividends coming in.
So I should be able to replenish my watches. If I don't buy anything else, my watches would be topped up again. Uh but of course if you know we met goes to $3, I goes to 20 cents and if Alibaba goes to the prices I identified in yesterday's video, I'll be buying more.
So the watches will get deep get uh drawn down again. Right. So before I ramble on any further, happy Sunday.
If AK can do it, so can you. Bye-bye.
