Charts in brief: 16 Jun 2010.

Golden Agriculture: Price rose and met resistance at 55c as expected. The falling 50dMA and 100dMA both approximate 55c which makes this a strong resistance.  If this could be taken out, we could likely see a target of 57.5c which is where we find the 138.2% Fibo line.  This is also a gap resistance. AIMS AMP Capital Industrial REIT: The fourth gravestone doji in seven sessions.  21.5c is … [Read more...]

FSL Trust: A crisis or an opportunity?

I still have units of FSL Trust which were bought at an average price of S$1.00 per unit. By any stretch of imagination, I cannot foresee FSL Trust trading at S$1.00 per unit in the next few years, if ever. I have kept these units in a frozen portfolio together with a few other stocks to remind myself of the mistakes I made. As FSL Trust enjoyed a recovery in unit price and was trading at an … [Read more...]

Create more passive income with limited capital

I have blogged about how Warren Buffet is a "know something" investor whereas I started out as a "know nothing" investor to being a "know a bit more" investor and, now, a "know a bit more than a bit" investor. Warren Buffet buys a lot of something which he thinks is a winner whereas for the rest of us it seems that diversification is the way to go. See: Excuse me, are you an … [Read more...]

Do not fear the selldown

It is safe to say that there is a lot of fear in the air. Palpable? Almost. What are we to do? Well, I am sure everyone has his or her own opinion as to the best strategy in such a situation. Maybe, I shouldn't be so sure. So, what do I think? Well, I have been sharing my thoughts in this blog and what I now think is largely the same as before. For a stock which is clearly in a downtrend, sell … [Read more...]

STI at 2,425 points?

What we have is a sea of red.  Sentiments have not been so bearish in a long time as the HSI sank below 20,000 points.  I continue to believe that any rebound that comes along in the near future should be an opportunity to reduce exposure in the stock market. This is more so for stocks which are clearly in a downtrend. Having said that, the STI is holding up rather well under all the selling … [Read more...]

Saizen REIT: 3Q FY2010 Results.

A good set of numbers overall for Saizen REIT. The only thorn in its side remains the CMBS for YK Shintoku which it defaulted on late last year. Key points for me: 1. Saizen REIT's properties are all Freehold and not Leasehold. So, there is no "depreciation" which some investors might be concerned about. 2. Occupancy rates have been consistently above 90% even through the financial … [Read more...]

What are investors to do in a downtrend?

I am a long only investor. I do not short the market. The blogmaster of Time to Huat has taken pains to explain to me that short sellers are necessary in the market. I understand the theory but I am still a long only investor. Using CapitaMalls Asia as a case study, I am reminding myself of what I should be doing and hope that this post is useful to other like minded investors. I stopped … [Read more...]

Looking For Value

After learning TA, I tried applying it and I have made and lost money. I think I am not very good as a trader since I must have lost more than I made. My roots are in FA but it was only during this recent crisis that I beefed it up. I believe that my current style of combining FA and TA is most suitable for me. The thing about FA is that we are looking for value. We want to buy something … [Read more...]

Replies from AK71: REITs and their assets.

On REITs and their assets (in Portfolio strategy: Undervalued high yield counters, 22 Feb 10): "REITs are Real Estate Investment Trusts. Their assets are real estate. Real estate don't depreciate per se. "Real estate's values would go through ups and downs with the forces of supply and demand which could be linked to the business cycle as well. So, the value of a REIT's assets would be … [Read more...]

Avoiding the memory effect

Human beings remember well things which are particularly unpleasant or particularly pleasant.  In short, human beings remember extremes very well.  However, as investors, we really have to stay level headed and be in tune with the present, the current reality, and not let the past shackle us. For example, I have a friend who bought a few hundred lots of Healthway Medical's shares when it … [Read more...]

Charts in brief: 12 April 10.

CapitaMalls Asia: No follow through on what had seemed like a promising up day in the previous session as a wickless black candle was formed today. It is reasonable to assume from today's action that this counter is trapped in a narrow range between $2.33 and $2.28. When everyone finally tires of looking at the charts, this counter might just surprise on the upside. Golden Agriculture: A … [Read more...]

Wealth Buch and Saizen REIT.

There are many blogs about personal finance and investing in cyberspace and I have been lucky to have befriended som e of the blog masters in the last three months.  One blog master whom I have enjoyed chatting with is the blog master of Wealth Buch, JW. JW was initially sceptical about Saizen REIT but after some persuasion from me, he looked at the numbers. With his permission, I am … [Read more...]

CapitaMalls Asia: A late reversal?

I spent a few hours in Ion Orchard today shopping with a friend who just moved into his new home.  Always nice to shop for things for a new home and watching someone else spend money.  It's a very therapeutic experience without any real damage to my own wallet.  What was an eye opener was the crowd at Ion Orchard.  The place was CROWDED! I have a knack for catching bits of conversations of … [Read more...]

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. … [Read more...]

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 … [Read more...]

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 … [Read more...]

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 … [Read more...]

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 … [Read more...]

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 … [Read more...]

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 … [Read more...]