Friday, January 30, 2015

Second Chance Properties Stock: New Driver towards its $1 Billion Market Capitalization Goal

In my earlier post on Second Chance Properties stock, I have analysed the company’s businesses based on the company’s FY 2013 annual report as that was the latest report I could find on the company’s website. Since then, I was told that the company’s annual report 2014 was already released and I have found a copy of this annual report from SGX’s website. Hence in this post, I would analyse Second Chance Properties businesses from its FY2014 annual report. Drawing on my earlier post, I would skip the details of the business which I have earlier elaborated (you can read the earlier post here.

Wednesday, January 28, 2015

SINGAPORE STOCKS INVESTING AHEAD

Dear readers, in my earlier post on stocks investing strategies for year 2015, I have advocated a “Invest in selective stocks selectively” strategy (you can read the post here). Indeed, choosing what stocks to invest and when to invest are important pillars of sound investing and these two questions pretty much hinge on the key themes driving the stocks markets. I would like to share my humble views on the key investment themes from the United States (US), Europe, China and our country, Singapore for year 2015.

Monday, January 26, 2015

Asiatravel.com stock: my analysis

Asiatravel.com reported a 4.4% increase in its full year FY2014 revenue to $90 millions; however its profit went down to a negative of $96 million from a negative of $57 million year on year. Asiatravel.com is a business which offers online reservations in its three core products: hotels/resorts; tours & packages as well as air tickets mostly in the online domain though it has offsite offices as well. In year 2014, the announcement of the company’s collaboration with Zhong Hong, a real estate company in China sent the stock price of Asiatravel.com soaring. As Asiatravel.com is a main online player in the tourism industry, an analysis for the business of Asiatravel.com in these two aspects: tourism landscape and online domain is fitting.

Saturday, January 24, 2015

Second Chance Properties Limited stock: a Billion dollar market capitalization vision (Part Two)

This is a continuation of my earlier post on Second Chance Properties Limited stock and you can read the earlier post here.

My personal take on the five main revenue-drivers of Second Chance Properties are as follows:

1) Apparel retailing: I am quite surprised to know that 80% of Second Chance’s FY2013 apparel revenue comes from Malaysia through its First Lady stores (which Singapore has too). I believe the “entry barriers” of apparel are not high and with the competitive retail fashion and apparel scene (at least for Singapore too) plus the trend of online shopping, I wonder whether is it easy for Second Chance Properties to sustain its edge in its main business?

2) Gold jewellery retailing: I understand Second Chance Properties’ Golden Chance store is very profitable and it has no plan to open additional stores in both Singapore and Malaysia. Inflation, according to Second Chance Properties is manageable to this business as it commented that if gold price rises, though it will lead to a lower demand for gold jewellery; the profit margin will benefit; consequently, if gold price heads south, the demand for gold jewellery will head north on the back of a lower profit margin. With this business being the second-largest driver of Second Chance Properties’ FY 2013 revenue at 35%, I think this segment is quite cyclical as if the economy is to head south, people may turn to other forms of cheaper precious metals like silver whether or not gold is cheap or expensive (unless we are talking about buying gold for marriages when it is okay for the consumers to splurge more).

3) Properties rental income and 4) Property value: with the distribution of high dividends and its portfolio of properties, it was mentioned in the annual report that there was the question on why Second Chance Properties did not want to become a REIT instead? From the annual report, I understand that Second Chance Properties’ property portfolio was $210 million which was below the minimum $300 million needed for a REIT listing. I remember though that I have read that Second Chance Properties’ attempt for a REIT listing in year 2014 did not go ahead as planned and there was some speculation that it has resulted in the stock price trend of Second Chance Properties that investors are seeing now.

Though the annual report stated that Second Chance Properties’ management believes that a higher interest rate would be good for properties as a whole, I think the property rental income stream is still a cyclical one as some businesses may not want to continue if the economy heads south. Appraisal of property value is also subject to market conditions though I believe the “transformation” of the Paya Lebar area may help the property prices of the around twenty-four properties of Second Chance Properties in the area.

5) Dividend incomes from fixed securities: with the investment portfolio comprising 85% bonds and REITS, the dividends should be consistent, though this revenue stream contributed just 7.33% of Second Chance Properties’ FY2013 revenue.

Overall, I find Second Chance Properties’ business portfolio a competitive one in apparel retailing and cyclical when it comes to its property and gold business. I support a “spinning-out” of a REIT from Second Chance Properties as this will make the once multi-faceted business of Second Chance Properties easier to understand, analyzed and appreciated by investors as it will then be comprised of just its retail businesses in apparel and gold jewellery retailing. "Like" me on Singapore Stocks Investing Facebook page to receive all posts on your Facebook as well as read more articles. Follow me on Twitter too.

Second Chance Properties Limited stock: a Billion dollar market capitalization vision

Mention Second Chance and many will immediately think of the range of apparel under the company. Inevitably, this is so as the company has carved a name in apparel wear. However this is just one of the two retail businesses Second Chance is engaged in. Beside the retail of apparel through its First Lady stores, Second Chance also retails gold jewellery through its one Golden Chance store in Paya Lebar. For a full understanding of Second Chance’s business, I studied its annual report FY 2013 as of this time in writing, this report was the latest.

Friday, January 23, 2015

ECB launches Quantitative Easing, what stock investors should do now?

ECB has launched a one trillion euro plan to revive the euro economy with a release of $60 billion euros a month into the economy, as it was announced on 22 January 2015. The announcement sent US stocks rallying, with the main three indices in S&P 500, Nasdaq and Dow heading north by around 1.5%. I believe the good investor sentiment will rub on Singapore’s stocks markets when it opens later (23 January 2015). Now I believe the global markets will have its focus on the results of Greece’s election.

Wednesday, January 21, 2015

Keppel T&T stock

On 19 Jan 2015, I posted a blog post on Keppel T&T, you can view the post here. . Keppel T&T stock has since then rallied from $1.42 to $1.655, a good 16.5% rally up! I hope some readers have bought into this stock and enjoy some good profits. As for myself, if you ask me whether I have bought this stock since I have identified it as a potential stock for this good rally and share it with all of you, I will not answer this question as I believe the most important thing is to have a consistent trading and investing system, something which I have been focusing in my trading hobby. It is not useful to myself or to readers if I post some hints to a potential stock for rally and the rally works for some stocks while not for others. I just hope readers can see throughout my investing, trading and blogging journey that some of my efforts into finding a consistent trading system is starting to show as I have shared with all of you on this blog.

Stocks markets opportunities: what you need to do to invest with more Success?

Being a month where many typically feel motivated to fulfill their new year’s resolutions and goals, many of us will feel excited to start doing something about our goals now before our career and work gets the better of us. I believe such a motivation is good in many aspects of our lives but not when it comes to investments.

Will ECB launch its own QE?

Dear readers, as we know the Eurozone economy can be better. So will ECB launch its own QE? I attach a link here for your reference. Remember when it comes to investing, we should note important economical events around the world and shape our investments accordingly. "Like" me on Singapore Stocks Investing Facebook page to receive all posts on your Facebook as well as read more articles.

Tuesday, January 20, 2015

I multiply my portfolio by ten times!

It may not become as easy to invest and to trade as the investors take into account the trends from the US, Japan and the Europe. Against this backdrop, I multiply my portfolio by ten-times. You may ask how did I do that? How did I make my portfolio a ten-times multi-baggar? Well, I did not do anything to my portfolio, I have not traded for quite some time but my portfolio multiplied by ten times! And I believe yours too, as long as you have some investments in your portfolio. What am I talking about? Well, I mean our portfolios multiplied by ten-times on 19 January 2015 right? Now, you may get some hints as with effect from 19 January 2015, one lot is equivalent to 100 shares, not the usual 1000 shares. This means that if you have 100 lots of shares before 19 January 2015, you will now have 1000 lots of shares in your portfolio, hence the portfolio of yours and I have multiplied by ten times right? Though our total monetary value of the portfolio and the actual number of shares remain the same.

Monday, January 19, 2015

F&N stock: a sleepy stock or a growth stock?

I have just completed reading F&N’s annual report 2014. To investors who think F&N is just a company behind the slew of assorted soft drinks in the supermarkets, F&N is actually a company which offers dairy products, beers as well as printing and publishing services. The cozy chain of Times bookstores we have visited in shopping centres are also owned by F&N. In this post, I will not touch on the many facts and figures in F&N’s annual report but instead provide a general commentary on what I think are the growth prospects of the company as I think many retail investors view F&N as a “sleepy stock” with not much of a hype coming from this counter ever since the high-profile demerger and spinning-off of its property business into another separate listed entity.

Would you buy this blue-chip stock now?

Many investors like to buy stocks at their lows, and this is normally called “bargain hunting”. Bargain hunters seem to think that buying stocks at one of their lowest trading prices offer a wider zone of safety. This may or may not be true, in my opinion, depending on the stock which one buys. For instance, those who have been buying offshore and marine stock plays when the prices of these stocks headed down would have also seen their prices continuing the descent. Normally these stocks are quite cyclical.

Sunday, January 18, 2015

How popular is this stock?

I was surprised to read that Popular is seeking to delist the company stock from the SGX. I thought Popular is doing well, as seen from its exposure to the Properties market, its thinking of the different business models (like starting English classes in China) and the ongoing holding of annual large Popular book fairs. There is only one practical reason which I think is behind the proposed delisting and that is Popular is undervalued and is not really appreciated by investors. This is inevitable as on the local stocks markets, I do not think there is a comparable company on its own for investors to draw comparison with and more importantly, books may seem to many, a sunset industry with many online competitors in the form of ebook stores and ebooks apps. What I feel somewhat encouraging is that at least Popular gives a good exit offer to its investors.

Saturday, January 17, 2015

Two factors for a Successful trade

My mantra for my trading strategies for year 2015 has been encapsulated in this post . The basic idea is to trade selective stocks selectively. This is a simple idea but I believe to implement this mantra is not easy, as we need some key ingredients which are (a) due diligence and (b) will power.

Due diligence comes in as we need to do due diligence on the stocks we would want to buy and trade for good profits. Unless you are a “Buy and Hold” type of investor, I always advocate buying stocks at the right time. Developing due diligence to identify stocks for profitable trades requires training and this can be done either via your personal self development (e.g. buying trading books, borrowing library books on trading) or paying to attend a trading course.

Wednesday, January 14, 2015

How the Greece Elections will shape your investments?

Dear readers, we know that Greece will be going for elections and investors are watching the results of the Greece elections. I attach a link here for you to understand the big picture of the Greece Elections on global stocks markets: The link is here. "Like" me on Singapore Stocks Investing Facebook page to receive all posts on your Facebook as well as read more articles.

Buy Singapore stocks reports: what you should know

I have been reading many analyst reports which trot out names of stocks recommended for buying for year 2015. There is a general consensus among analysts that stocks like banks and transports stocks will fare well. This is in line with general market trends of rising inflation and low oil prices; hence I believe the analysts are giving out general advice. I always think of analysts’ “buy reports” as general reference for these reports do not take into account one most important factor of investing and that is none other than you, the investor.

Tuesday, January 13, 2015

Aspial stock: to buy?

Mention Aspial and many including retail investors will think of the four brands of jewellery under the company and they are Aspial, GoldHeart, City Gems and Lee Hwa Jewellery. But do you know East Village, Kensington Square are also as synonymous with Aspial as the above four brands? Yes, beside its jewellery business, Aspial is also a property company with retail and residential properties in Singapore and it is expanding it property portfolio in Australia. Beside the above two business, Aspial also owns Maxi-cash pawn-broking shops, which is the largest pawn-broking chain in Singapore. Each of the jewellery and the property business contributes close to 45% of Aspial’s revenue for FY2013.

Monday, January 12, 2015

Confession of a Singapore Stocks retail investor

Hello everyone! How have you been? It has been some time since I have time to do a more insightful post here. It has been quite a “roller-coaster” ride for the Singapore stocks markets, isn’t it? Since the beginning of the year, I have been focusing more on certain stocks and one of my earlier posts on my analysis of five Singapore stocks have drawn quite a buzz here (you can read the post here.

Sunday, January 11, 2015

How to trade Singapore stocks now?

The Singapore stocks markets have been going up and down in response to the global stocks markets. Many investors will wonder whether this is a time to enter into the Singapore stocks markets now. Well, based on the current STI reading, I think it is still not too cheap to enter into the Singapore stocks markets, especially if we are talking about blue-chip stocks. We are not at a time when the Singapore stocks are at a STI level of below 3,000 though we have noted the “southing” of the STI due to the low oil prices. Instead, I believe investors will benefit more by looking at the shifting of the market sectors and the trends of the broader stocks markets.

Saturday, January 10, 2015

Sakae holdings stock

I read that Sakae Holdings, the company behind the popular Sakae Sushi chain of restaurants is expanding into corporate finance advisory services and has even secured a first client in Q&M dental. I am even surprised that Mr Douglas Foo, the CEO of Sakae Holdings has, as reported, handed most of the management of the business of Sakae Holdings to his sister while he focuses on the corporate finance advisory services business. This is not the first time that Singapore companies have taken on the diversification path of adding different businesses into their portfolio. I always wonder whether such a diversification into non-related business would mean better returns for shareholders or erode returns.

Friday, January 9, 2015

Sheng Siong stock: Part Two

My earlier post on Sheng Siong stock was quite brief (you can read the post here), hence I am doing a follow-up post on this stock here. Coincidentally, around the time when my earlier post was put up, it was announced that Sheng Siong has acquired another site for a new supermarket at Tampines Central. The expansion of Sheng Siong’s stores can only translate into more revenue and also profits (if food price inflation and administration costs are kept reined in).

Wednesday, January 7, 2015

Sheng Siong stock

The stock prices of most cyclical stocks on the Singapore stocks markets have been shaped by the economical news from the United States as well as the low oil prices, so for today, I will be talking about a more defensive stock and this stock is none other than Sheng Siong stock. I will not be talking about the financial figures for this stock but rather touch on the more qualitative aspects of this stock.

Tuesday, January 6, 2015

Ying Li International Stock

In my yesterday’s post, I have mentioned that Ying Li International stock will head south in price as from yesterday’s price, investors are deciding; and I have thought that they might have factored in the current markets atmosphere for Ying Li stock. Today (6 Jan 2015), Ying Li International advanced 3.8% to close the trading session at $0.275, a price level which is very motivating for investors who have been invested in the stock. What is more noteworthy is the trading volume for today: 14.28 million which is more than double the trading volume for 5 Jan 2015; with this price pattern, I believe Ying Li International stock is poised to head further though there may be some investors who would want to liquidate their positions; the rally for Ying Li International is there and I believe Ying Li International stock will be a multi-bagger.

Monday, January 5, 2015

Analysis of Five Singapore stocks

Today, the STI went south by 1.26%. I am currently sitting on the fence waiting for a sign to enter the stocks markets into the stocks which are on my “radar”. Here are my commentary and analysis of some Singapore stocks:

Penguin International stock: this stock went 4.7% up today after my post over the previous weekend. Should this stock heads up beyond the $0.235 mark, then the stock will rally up.

Sunday, January 4, 2015

Will these two S-chip stocks become multi-baggars?

Midas stock rallied 24% on 2 Jan 2015 to close at $0.31. This is really a good rally for Midas, a China S-chip stock on SGX, especially when Midas has been experiencing “lacklustre” performance on the Singapore stocks markets like many of the other S-chips on our bourse. Even with a 24% rally on 2 Jan 2015, Midas stock price is still approximately 80% below its high of $0.56 reached by the stock in January 2013. I believe the performance of Midas stock has to do with the news of the merger of China's top two train makers, CNR Corp and CSR Corp to create a "world-leading" rail supplier to compete with foreign players. Though I read the news of the merger before the rally of Midas, I did not buy Midas still as I do not want to invest based on speculation. Based on SGX’s figures, the Price-to-Book ratio of Midas is 0.617, with dividend yields of 1.61% and a consensus “Hold” target price of $0.458.

Saturday, January 3, 2015

Penguin International stock

Penguin International is a Singapore company listed on the SGX with businesses in the design, building, chartering, repair, maintenance and sales of crewboats and ferries.

What I like about Penguin International Stock

1) Profitability: Penguin International is a profitable company which makes $25 million in profits for the first nine months of FY2014; this is already approximately 56% higher than its full FY2013 profits.

Thursday, January 1, 2015

Happy New Year 2015, Singapore

Dear readers, a Happy New Year 2015 to you! It is a cool morning for Singapore on the first day of year 2015 and hence relaxing at home in this coolness not often experienced in Singapore is quite comfortable. I believe many Singaporeans are still in their sleep, after a late night of partying all across the island. Though I and my family did not join in the countdown to year 2015, I watched the countdown screening on Channel Five on television till I almost dozed off, not because the Korean bands were boring, in fact they have such high energy that I tried to watch anyway.
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