Minister Chan explains confusion between cotton and sheep as being due to the lack of sleep

In a recent media podcast, Minister for Trade and Industry Chan Chun Sing explained that “it would not be possible for Singapore to survive without trade”. “We must not forget – even to produce eggs ah, where does the egg come from? You would probably tell me hens. But where does the chicken come from? […]

The post Minister Chan explains confusion between cotton and sheep as being due to the lack of sleep appeared first on The Online Citizen.

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SPP’s Jose Raymond: What is the voting plan for overseas Singaporeans?

The Singapore People’s Party’s chairman and its candidate for Potong Pasir SMC Jose Raymond has posted a query on his Facebook page seeking clarity on how voting will be conducted safely for Singaporeans based overseas. In his Facebook post, he stated that there are more than 200,000 Singaporeans based overseas in various countries around the […]

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Could Air Canada Make You a Millionaire?

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It’s hard to imagine being a millionaire in today’s economy. Most people are struggling pretty badly right now. The COVID-19 pandemic has left many people without jobs, without businesses, and with little way of supporting themselves.

But putting money aside in the right stock could not only prove to bring in cash over the long run, given time, it could definitely make you a millionaire. One stock with this potential is Air Canada (TSX:AC).

Air Canada has had a tough go as of late. The company soared to all-time highs just a few months ago, and have since been brought to lows not witnessed in almost a decade. So let’s see what it would take for you to become a millionaire from this one stock.

The pandemic

What’s important to remember right now is that Air Canada isn’t to blame for its current losses. The company has been ravaged by the recent pandemic, with its fleet forced on the ground as everyone stays home.

What’s really hurting the company right now is Air Canada recently reinvested in its fleet of aircraft. It now has a highly efficient line of aircraft ready to go, but nowhere to take passengers until flights are up and running once more.

The company also reinvigorated its operations and cutting costs so it could reinvest in its core business, and to acquire companies such as Air Transat. This acquisition is now on hold until after the pandemic, but it’s still part of Air Canada’s path to becoming a major player in the low-cost carrier business.

But when it’s completed, the company will control 60% of the Canadian transatlantic market.

Looking ahead

Once the pandemic is passed, the company’s financials should significantly improve. Air Canada has cash and assets to fall back on, though of course it will take years for the company to rebound completely from this significant loss.

There is also the possibility of a government bailout. So, once things improve, the company should be back trading at fair value within the next year.

If Air Canada continues on its previous trajectory, then a few decades from now investors should see a massive increase in share price.

Right now, the company is a steal with a price to earnings ratio of 60.16. That’s pretty much all analysts believing the current situation is definitely not going to last. Investors today would pick up the stock for a discount of almost 60% compared to fair value.

Path to millions

To get to a million dollars, investors would definitely need to hold onto the stock for decades. Let’s say the stock reaches fair value within a year, and continues on its similar path from there. A $60,000 investment in your TFSA would bring in $95,106.55 in just a year.

After that, let’s say there is conservative growth in the future. That would mean investors could reach $1,032,363.29 in just 25 years based on today’s share price.

While I wouldn’t imagine the company can recreate the huge increase in share price that was seen in the last five years, investors can still remain optimistic.

It could be a long time before we see Air Canada reach that $50 share price again seen last November, but it’s fairly likely it will reach that number again.

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Fool contributor Amy Legate-Wolfe owns shares of AIR CANADA.

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The Best TFSA Investments on the TSX in 2020

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The best Tax-Free Savings Account (TFSA) investments on the TSX in 2020 are stocks, which have historically delivered the best returns in the long run amongst all asset classes.

Just remember that most profits and income in TFSAs are tax free, but there are exceptions.

The big question — which TSX stocks are the best to invest in 2020?

Value investing is a wonderful strategy for most investors. Essentially, you aim to buy businesses at significant discounts to what they’re worth. If you combine that with dividend investing, it’s even better. You get paid to wait for these assets to appreciate.

Why this high-growth dividend stock is a top pick for 2020

A business that I plan to own for the long term is Brookfield Asset Management (TSX:BAM.A)(NYSE:BAM). Here’s why it’s an excellent investment.

It is a global alternative asset manager across real estate, infrastructure, renewable power, private equity, and credit. So, it’s diversified in terms of asset type and geography.

Brookfield Asset Management’s interests are well aligned with shareholders’ because it owns large stakes in its various businesses and earns hefty, growing fees — management fees and performance-based income — as the manager.

It has the expertise to optimize operations of the businesses it acquires, which results in improved returns. BAM’s value-investing nature also helps maximize long-term returns, including employing an ongoing capital recycling plan in its subsidiaries.

From the various businesses, Brookfield Asset Management generates substantial cash flows because its assets are long-life cash cows. Specifically, Brookfield Property Partners, Brookfield Infrastructure Partners, and Brookfield Renewable Partners offer yields of about 12.9%, 4.8%, and 4.1%, respectively, at writing.

So, it’s very common for investors to gravitate toward its higher-yielding subsidiaries if they seek income.

BAM’s track record

From a trough during the last financial crisis in 2009, BAM has delivered annualized returns of 18.8% on the TSX.

Ardent investors should note that the growth stock currently trades at a low, which could very well be a trough in hindsight.

The TSX stock value is shaved by about 28% from $60 per share in February to about $43 today. Now’s a great opportunity to accumulate BAM shares for long-term growth.

In merely three years, BAM has more than doubled its fee-bearing capital (which is more than half of its assets under management) to US$264 billion. For the record, its acquisition of Oaktree helped tremendously.

During the period, BAM’s fee-related earnings increased by 86%, while its cash available for distribution and or reinvestment increased by 53%.

Therefore, it was also able to healthily increase its dividend by 28.6% in the past three years. The yield is only 1.5% today, but investors can expect it to grow at about 10% per year in the long run!

BAM also earns gains from its private funds when investors receive a predetermined minimum return. These gains are accumulated as carried interest that’s typically paid to BAM toward the end of the life of a fund after the capital is returned to investors.

These accumulated unrealized carried interest has nearly tripled to more than US$3 billion in three years!

The Foolish takeaway

The 28% drop in BAM shares is a once in a blue moon opportunity to build your stake in the global growth stock. The last time it had a similar drop was 12 years ago!

Currently, the 12-month average analyst price target suggests BAM stock has 27% near-term upside. However, long-term investors can be confident that it has much more room to run.

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Fool contributor Kay Ng owns shares of Brookfield Asset Management, Brookfield Infrastructure Partners, and Brookfield Property Partners. The Motley Fool owns shares of and recommends Brookfield Asset Management. The Motley Fool recommends BROOKFIELD ASSET MANAGEMENT INC. CL.A LV, BROOKFIELD INFRA PARTNERS LP UNITS, Brookfield Infrastructure Partners, and Brookfield Property Partners LP.

The post The Best TFSA Investments on the TSX in 2020 appeared first on The Motley Fool Canada.

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Chan Chun Sing: ELD cannot “prematurely” announce rules and regulations of next GE

Minister for Trade and Industry Chan Chun Sing has said that the Elections Department (ELD) cannot “prematurely” announce the rules and regulations relating to the next General Election as these may be “overtaken by events”. This was said at a media briefing on Saturday (30 May), where he noted that the ELD is fully aware […]

The post Chan Chun Sing: ELD cannot “prematurely” announce rules and regulations of next GE appeared first on The Online Citizen.

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