AK's guest panel of friends: Ser Jing (from Motley Fool Singapore) Rusmin (from The Fifth Person) Sean and Leong (from Value Investing College) This time round, introduction was kept to a minimum and while questions were not as fast and furious, there was more in depth analysis on the stocks that were covered. Without going into detail, here are some of the topics that were discussed. Q. What are your thoughts on Nobel? Panel:
- Dislike that it continue to raise money from the public.
- Business model is complicated.
- Negative cash flow.
- Not a good stock to invest for income.
- Institutional buying does not guarantee that the stock will do well.
- There is no need for Fed to raise Interest Rates. When US currency goes up, interest rates will follow suit.
- It is not in Fed's interest for Interest Rate to go up too fast for fear of losing its competiveness.
- Be prepared for all possible scenarios - War Chest.
- Oil will not likely drop to $20+ a barrel which is the breakeven price of production.
- Current low oil prices is not a fundamental issue but rather a cycle.
- Look for companies that will benefit from a fall in oil prices.
- Exports will benefit.
- ST Engineering mentioned as a company that will benefit from a weaker Singapore Dollar.
- Depends on the dividends you are expecting. 6 cents is not sustainable.
- Talked about the new projects that may bring about growth.
- Based on the Market PE, it is fairly valued.
- Talked about Hong Kong market PE which is in a single digit now but has to be very wary of what stocks to buy because regulations there are different from Singapore.
- About 10 REITs but focus mainly on AIMS, First REIT and Saizen.
- Non-REITs will include ST Engineering etc.
- AK also mention that he prefer Sembcorp Industries than Sembcorp Marine because utility business is relatively stable.
- Look for low gearing and how their loans are structured. Fix rate loans are preferred.
- There was a discussion on Frasers Centrepoint Trust and Capital Mall Trust.
- Impact should be minimal since it is only a share consolidation.
- Over the long term Ringgit will continue to slide. To hold or sell will depend on the individual's exposure based on their portfolio.
My final thoughts: It reinforces my belief that the market is fairly priced now and it is not easy to find low hanging fruits. I will stick to nibbling my company shares and building up my war chest.
Hi Derek,
Thanks for the summary! It’s gd for pple who didn’t attend to see what the views of the expert panels are :)
Hi LP,
You are most welcome. I hope that I didn’t get the stock names wrong. I’m amazed that a small panel can have so much to talk about and I’ve difficulty catching up.
Indeed , gr8 informal session with more to come ! Oh , and Derek , and you’re like a shadow lurking somewhere hahahaha.
Hi Kendrick,
More like a zombie. LOL. I was kind of stoned that day.