Author: A Singaporean Stockmarket Investor (ASSI)

Replies from AK71: All things Saizen REIT.

For a friend who is hot on Saizen. On Saizen’s income (in Saizen REIT’s quarterly report, 11 Feb 10): “Operationally, Saizen REIT is not losing money. I think this is what you are concerned about. In fact, it made more money than the same period last year. This is remarkable if you realise that it has done this after selling away five properties. “Look at net income from operations. It is up 5.3%. What makes it looks bad is this: Net fair value loss on financial derivatives. This has a loss of JPY401.7m for the period reported. “……. their explanation...

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Charts in brief: 16 Mar 10

The STI defied gravity to add 22.1 points today, closing at 2,896.43, it is only a bit more than 100 points away from the magic number 3,000.  However, today’s volume of 1,143,954,590 and total value of  $989,019,766 suggest that the upward movement is weak.  Volume is low and the value is lower.  Activity has clearly reduced and moved to the pennies. It would not be wrong to lock in some gains for anyone vested in index linked counters. For anyone looking to add to their positions, waiting for a pullback might be prudent.  However, if in doubt, my strategy is always to hedge.  For...

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Healthway Medical: A beautiful symmetry again

On 11 January, I had a post titled “Healthway Medical: A beautiful symmetry.”  In that post, I said: “I am a believer in chart patterns. See how the cup formation troughed at 9.5c and topped out at 14.5c? The target price in case of a breakout of the top of the formation is just a projection of the trough to the top and beyond which gives us 19.5c. This target price was reached in just one week from the midpoint of the cup pattern at 12c.” Now, I observe a similar symmetry in Healthway Medical’s chart once more.  Recent...

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First REIT: This one is for keeps

You might have experienced deja vu before. It has happened to me countless times. Psychic? Maybe but sometimes, things just fall into place in the strangest ways. Today, I received a payment voucher from my broker on income distribution from First REIT. This is not a very glamorous REIT but I count it as one of the strongest in my portfolio. The generous distribution put a smile on my face. Then, I wondered if I should blog about First REIT, using it as an example of the type of REIT we want to have in our passive income portfolio....

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Seven steps to creating passive income from the stock market.

I have made it known to my family and many friends that I aim to create a minimum of $50k in annual passive income from investments in the stock market alone.  Recently, while chatting in the cbox at Bully the Bear, I mentioned this and at least one person was incredulous.  How to achieve this? Well, to me, it’s quite simple, if I invest $500k in a basket of stocks that yields 10% per annum, I would have that $50k passive income.  Then, I gave it some thought later on and decided that perhaps I should share more in detail how this could be achieved. Taking a leaf...

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STI: Marching in place in March?

TA is not about predicting price movements. TA always presents two possible scenarios. To most people, this immediately means it’s as good as not saying anything. Well, if we had a tool that could tell us if a security was definitely moving up or down, …………..; you fill in the blanks. Then, why do we still have TA? Well, knowing the trends, supports and resistance levels could help us make certain decisions when certain numbers are hit. Is that it? I am probably not doing the subject justice but for my purpose, in a nutshell, yes. OK, on to...

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Money management: Needs and wants.

I first learned about needs and wants more than twenty years ago in an Economics class when I was a Junior College student. During the class, a female classmate told an irritating guy that he needed medication and asked if he wanted some. That made the distinction between needs and wants very clear to us all and we had a good laugh. There will always be things out there to buy in the modern world. The question to ask is always whether we need these or we want these. The question seems innocent enough at first glance. However, one...

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A rebound or something more lasting?

A reader, CT, posed some questions in response to my post yesterday: “i was wondering why u would reduce ur exposure at this point in Goldenagri and STI. do u think that there will be another correction soon? or are u just afraid of high volatility? could u expand ur thoughts on that? i ask because it seems to me that after this correction, the entire mkt seems poised for a steady uptick.” Read...

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Fundamental Analysis: Balance Sheet

A company’s balance sheet is a record of its assets and liabilities. Basically, if we look at how much the assets are worth and deduct the total value of the liabilities, we will arrive at the net worth of the company. Net worth or the book value of the company is also known as shareholders’ equity. Under assets, first, we see Current Assets. Current Assets are cash and other assets which can be converted into cash within a very short time. Usually, they are listed in the balance sheet in order of liquidity with cash being the first item...

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Fundamental Analysis: The Income Statement

Every trading day would see me looking at charts in the evening and looking out for pertinent news which might have an impact on my investments. On weekends, I would sometimes blog about my personal experience and some ideas which I might have about investments. The Chinese New Year long weekend is giving all of us a much needed break from trading. Take some time to smell the flowers, so to speak. I have decided that I will blog about different aspects of FA and this will probably spread over a few posts to make it more manageable. My...

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A capital question: how much to have or how much to use?

I remember reading a book titled “The Swiss Family Robinson” in my school going days. It was one of many classics such as “Black Beauty” and “Call of the Wild”. It is very strange but most people who are younger than me by just, say, 6 or 7 years have never read these books before. Classics, they are. Anyway, I digress. The book in question is about how a family got shipwrecked on an island and had to to use whatever was available there to build a life for themselves and over time, they did quite well. Very resourceful...

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Excuse me, are you an investor?

We have heard many times the advice that we should diversify our investments to minimise risk. For those of us who have read books about Warren Buffet, we would also remember something along the line that diversification is for the “know nothing” investor and for the “know something” investor Warren Buffet, when he identifies something good, he goes in big! He doesn’t diversify, he concentrates! Of course, this is probably viable for us if we were in the same league as Warren Buffet and, of course, if we were in the same league as him, I wouldn’t be blogging...

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Portfolio strategy

Done my weekly reading of The EDGE. Goola Warden, Darryl Guppy and Michael Kahn are people whose articles I enjoy reading. I have also learned a lot about TA from their writings. In this issue of The EDGE, all of them have gone decidedly bearish about the prospects of global stock markets. My own reading of the STI shows that the uptrend is still intact but the index is in a rather dicey situation should it not confirm the reversal signal seen in the last session. With the US market closing in the red in the last session, the...

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Grow your wealth and beat inflation

In some interviews earlier in the year, Marc Faber said that the meteoric rise in global stock markets in 2009 was a once in a lifetime opportunity to make a lot of money and that 2010 should be a year of capital preservation (ie. not to lose money). Marc also said that, on average, it is still possible to get about 10% gain from the stockmarket this year. People who know me would know that I have a lot of respect for Marc and I take his advice to heart. However, I believe that if we use fundamental analysis...

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Rationale for partial divestment

Amongst the three counters I am actively monitoring, I remain heavily vested in only one counter: Saizen REIT. I have divested 90% of my position in Golden Agriculture and 80% of my position in Healthway Medical in the recent run up in prices. From 4 Jan, the first trading day of 2010, Golden Agriculture raced from 51c to a high of 65.5c for a gain of 14.5c or 28%. Healthway Medical blasted through the roof as it started the year at 14c and hit 19.5c for a gain of 5.5c or 39%! In both instances, partial divestments took place...

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