Author: FinancialVeracity

SingPost – What really matters in a Stock

Comparison will be done with Keppel Telecommunications & Transportation Ltd (K11) 1)  IDENTIFICATION OF COMPANIES THAT ARE UNDERVALUED. Price to book ratio : 1.653 (65.3% Above fair value) K11 – 1.218 Price to earning ratio : 147.619 ( Above industry standard – 34.81) K11 – 9.516 2)  LEARN ABOUT THEIR NUMBERS Debt To Equity :20.7% | 55.05% Growth Performance : -35.14% | 5.64% Dividend Yield : 3.93% [5 Years] | 2.45% [5 Years] Current Ratio : 1.035 [Volatile ratio within 5 years] |1.461 [ Stable ratio within 5 years] Book Value per share : 0.7503 | 1.44 Cash Flow per share : 0.0382 | 0.232  [Negative cashflow for the past two...

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#06 – USD (manage a losing trade)

Last week, I’ve spotted the US dollar index trending in a bullish direction since 2011 on the Monthly Chart. Additionally, with the knowledge of non-farm payroll and a believer of price drives news, I’ve decided to long the index. Reducing my timeframe, I’ve also realized that market was in key levels since two weeks back on the Weekly Chart. That has encouraged me to find a possible entry on a smaller timeframe. The error I made here was that the weekly has a short-term bearish trend but I’ve actually ignored it. With the ignorance of the short-term bearish trend,...

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Is Bitcoin worth buying now?

What? – Bitcoin is a peer to peer currency with no central authority . Why is everyone talking about it? – if you have purchase $100 dollar worth of bitcoin in Apr 2010 (Cost of one was 0.003), you would be a millionaire now (Current price SGD$3,437 of one bitcoin). Total profit of investment would be SGD$114,566,567 Should you buy some now? – I’d think you should buy if you have excess money to invest and not with a mentality of earning a quick return. Bitcoin is a good way to diversify your portfolio as every country are heading towards...

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Soup Restaurant – What really matters in a Stock

15 restaurants | Since 1991 | Famous for ginger chicken & Herbal Soups Comparison will be done with Tung Lok Restaurants (540) 1)  IDENTIFICATION OF COMPANIES THAT ARE UNDERVALUED. Price to book ratio : 5.635 (463.5% Above fair value) 540 – 1.874 Price to earning ratio : 81.826 ( Above industry standard – 86.29) 540 – 78.667 2)  LEARN ABOUT THEIR NUMBERS Debt To Equity : 0.27% | 22.4% Growth Performance : -8.55 | Not given Dividend Yield : 2.77% [ 5 years] | 0% [ Doesn’t pay] Current Ratio : 2.27 |1.44 Book Value per share : 0.0337 | 0.0577 Cash Flow per share : 0.0078 [Having negative...

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#05 – Trading In Consolidation Zone

This week, I have decided to trade in a consolidated commodity ; Platinum. As you can see on the Monthly Chart, market has a higher high and higher low ( conflict between two trend indication of a bear/bull market). What really got me interest in this commodity was the daily chart. Price action on the Daily Chart shows a “Textbook” bearish short-term trend where market is heading back to key level (seeking supply) and, that was what enticed me. Obviously, being risk conservative, I entered on a smaller time frame. On the 4 Hour Chart, market have shown sign of reversal...

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Timing versus Dollar cost averaging

Which method is the best? Professional says theres no right answer. Why? Lump sum investment benefits individual who posses great psychological skills (to hold through economical cycle), has a proven “edge” against the market (backtested) and the money to do so. Dollar cost averaging benefits those whom has fear (Price,risk of making a mistake,etc), and lower capital There are more than one perspective to determine the best, but ideally knowing who you are will best define your investment strategy. Some perspectives for you to ponder :...

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Figtree Holding – What really matters in a Stock

Build Industrial and Commercial Facilities | Developments in China & Australia | Projects in Singapore, Malaysia, China Comparison will be done with Green Build Technology (Y06) 1)  IDENTIFICATION OF COMPANIES THAT ARE UNDERVALUED. Price to book ratio : 1.124 (12.4% below fair value) Y06 – 4.391 Price to earning ratio : 6.306 ( Below industry standard – 27.96) Y06 – 24.13 2)  LEARN ABOUT THEIR NUMBERS Debt To Equity : 203.8% | 669% Growth Performance : 57.15% (5 year growth)| 73.86% (5 year growth) Dividend Yield : 3.89% [ 5 years] | 0% [ Doesn’t pay] Current Ratio : 1.789 |1.182 Book Value per share : 0.1536 | 0.0533 Cash Flow...

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#04 – New Zealand Dollar

Spotted a selling opportunity on NZD/USD Monthly Chart shows clear sign of rejection on the bullish candlestick pull back by breaking its low (Previous month C.S). Overall market channel has been broken off in 2014 and has since been trending bearishly with confirmation in 2015. Spotted trend continuation pattern on the Weekly Chart, as candlestick broke of key price while making progressive lower highs and lower lows. Waited for Daily Chart to show a sign of trend reversal (the past few bullish candlestick). On Thursday, 18 May, market retest key level which led me to find potential trading entry...

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Growing wealth by being smart

It’s going to be close to a year of blogging and I cant explain how much i’ve gained from it.   This blog post will be a short story of how I’ve became an investor At age 21, I’ve decided that having an alternative source of income from trading is essential for early retirement. In order to get out of “the usual cycle of life”, I took an educational holiday to Bali for 30 days. In that 30 days, I spent 8 hours a day reading books on investing, 2-4 hours reading people thoughts/idea on achieving financial independence, 1 hour...

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Telechoice International – What really matters in a Stock

Founded in 1998 | Personal Communication Services | Distribute phones of Huawei, Samsung, LG, Sony | Network Engineering Services | Info-Communication Technology Services | Operation in 6 Region Comparison will be done with Memtech International Ltd (BOL) 1)  IDENTIFICATION OF COMPANIES THAT ARE UNDERVALUED. Price to book ratio : 1.569 (56.9% below fair value) BOL – 0.73 Price to earning ratio : 15.417 ( Above industry standard – 14.5) BOL – 11.266 2)  LEARN ABOUT THEIR NUMBERS Debt To Equity : 16.08% | 12.13% Growth Performance : 3.06% (5 year growth)| 0.3956% (5 year growth) Dividend Yield : 1.21% [ 5 years] | 2.81% [ Doesn’t...

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#03 – Euro after Election

Decided to hedge on Euro using the Major Pair (EURUSD) Monthly chart indicates an overall bearish trend, where market is currently trading in key levels. Price has been trading in this range since 2015, trying to find a stronger supply of sellers. Spotted a trend reversal on the Weekly chart, as market broke of from the bearish channel with a bullish price action build up. Market making higher highs and higher lows. Spotted strong resistance level on Daily Chart created in early April and have decided that my buying level should be around that pricing levels. Spotted a nice price...

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Landed property as an investment?

Recently I’ve been asked my a close friend if I would purchase a landed property as an investment… So I spotted a real nice Terraced Flat (3B/2T/Full renovated/1.5k SQF/99 Years/Terraced/Prime location) online going for $850k and decided to use that as a comparison to a REIT etf. These are factors I took into consideration: Total cost of the property Downpayment (20% of Property Price = 5% cash +15% CPF) = $170k Buyer stamp duty tax = $20.1k Total UPFRONT payment = $190.1K up front Total COST OF property = $870.1k Loan amount $(850k – $170k = $680k) Sourcing out...

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Smart move on your Income Tax

8 months ago I shared about the power of Supplementary Retirement Scheme account and was recently been asked….. how good it really is. It reduces your chargeable income tax while allowing you to invest that supposedly “payable tax amount” REITS, FIXED DEPOSIT, BONDS, SHARES, SINGLE PREMIUM INSURANCE, UNIT TRUSTS Investments returns in the SRS a/c are all tax free till the date of retirement and only 50% of withdrawals are taxable. How to not get tax on your withdrawal at age 65? Be unemployed, do not withdraw more than $40k a year, $20k (50% of 40k) is subjected to tax as...

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Bonvests Holdings – What really matters in a Stock (Industrial Conglomerates)

Founded 1982 | Property development / Hotel management / Waste management | Hotels under Management – Sheraton , The Residence, Four Points Comparison will be done with Gallan Venture (5IG) 1)  IDENTIFICATION OF COMPANIES THAT ARE UNDERVALUED. Price to book ratio : 0.584 (41.6% below fair value) 5IG – 0.452 Price to earning ratio : 9.594 ( Below industry standard – 24.74) 5IG – 10.918 2)  LEARN ABOUT THEIR NUMBERS Debt To Equity : 24.44% | 157% Growth Performance : 3.16% (5 year growth)| 32.90% (5 year growth) Dividend Yield : 0.97% [ 5 years] | 0% [ Doesn’t pay] Current Ratio : 2.24 |1.57...

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#02 Buying SGD

Spotted the best pair to long the SGD. SGDJPY weekly chart showed that the Sing dollar have lose its bearish momentum when it manages to break out of APR’s high and 1 year channel. In order to enter with a low risk, small-time frame was chosen to hedge my entry. On the Daily time frame, I have noticed that market has a strong key area that market has a high tendency to respect it. In order to increase my winning probability, I have decided to wait for market reaction out of that area. Waited for a consolidation action to appear...

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