Author: FinancialVeracity

#09 – Long CadChf

The previous week has been a rather a quiet one as there were little charts that fulfilled my trading requirement. However, I’ve spotted a potential entry on the CadChf as market test key monthly level. I spotted signs of bear exhaustion on the Monthly Chart and was seeking an entry. Scrolling down the Weekly Chart had me realised that market has been acting repeatedly when price heads towards the monthly level. As you can see market tend to retrace with a strong momentum whenever it touches that level. Last week week market broke off the key level with a strong bullish...

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Is CPF really that bad? (Part 1)

Try putting whatever you know about CPF aside before reading this post Disclaimer; CPF is a mandatory thing for all Singaporeans/PR so knowing it is as important as maintaining your financial health -Short Summary- There are 3 Accounts in your CPF before you turn 55: Ordinary Account (OA) Special Account (SA) Medisave Account (MA) When you turn 55: OA + SA = RA (Retirement Account) MA = Acts like your health insurance At this current point of our life, how much do we have for retirement (Cash/Savings) not including property, because we would want to be living comfortably like...

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Dairy Farm International – What really matters in a Stock? (IKEA/7-11/GIANT/COLDSTORAGE/GUARDIAN/GNC)

The more the better?? The bigger the better?? The more expensive the better? 6,500 Outlets / 180k Staffs / leading pan-Asian retailer / Member of Jardine Matheson Group / Founded in 1886 Comparison will be done with OLAM (O32) 1)  IDENTIFICATION OF COMPANIES THAT ARE UNDERVALUED. Price to book ratio : 7.028 (702.8% Above fair value) O32 – 1 Price to earning ratio : 23.587 ( Below industry standard – 43.39)  O32 – 16.855 2)  LEARN ABOUT THEIR NUMBERS Debt To Equity : 64.08% | 256% Growth Performance : -0.65%| -Not given- Dividend Yield : 2.66%[ 5 years] | 2.59% [ 5...

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#08 – Gold (should we all buy now?)

In order know if it is a good time to buy good, we need to know the price behaviours of consumers. I have chosen to use USD/OZ (USA holds the biggest gold reserves). Market trend on the Monthly Chart has broke of a 8 year bull trend, making a bearish trend. As you can see market has failed to make higher high in 2016 while making a strong bearish candlestick. Thereafter, market build up (demand) became weak and show signs on bearish trend continuation pattern. On the Weekly Chart, market has just formed a double top (aligning with monthly...

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A reminder to self

I’m finally back from a 6D5N vacation from Bangkok,Thailand and it was amazing. It taught me to be constantly fighting for what I want (discounts) and if it fails the first time, who says it will fail the second/third/fourth. No one can fight your battles only yourself / Victory goes for those who doesn’t give up Some photos are missing as I was busy enjoying myself . Some recommendation that you can consider if you’re heading down to BKK for a holiday! Use Eatigo app to find good food deals, discount are based on timing of booking! Best thing...

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Sakae – What really matters in a Stock

Ever wonder what happen to all the Sakae Sushi Restaurants? Sakae Holdings have over 18 brands / Start in 1996 / With 200 Outlets worldwide Sounds like an achievement doesn’t it? but would you still buy after you know the numbers? Comparison will be done with ChasWood Resources Holding (5TW) 1)  IDENTIFICATION OF COMPANIES THAT ARE UNDERVALUED. Price to book ratio : 1.264 (26.4% Above fair value) 5TW – 1.472 Price to earning ratio : Not given ( Above industry standard – 86.67) 2)  LEARN ABOUT THEIR NUMBERS Debt To Equity : 160% [Exponential increase in financing] | 517% Growth Performance...

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#07 – GBP (Post election)

The long awaited trend continuation pattern has occur on the GBPUSD. Monthly Chart still indicates that market is in a bearish trend. As market is still in the 1980s price level while making a new high in 2014 (Rejecting the previous one with a break of 08’s low). Giving GBPUSD a nice amount of legroom for traders to be in it. As market enters the Weekly key zone, it was only a matter of patience for market to show signs of reversal. As you can see the second last candlestick, where market broke off 3 bullish price pushes, it...

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How I plan to exit StarHill (losing investment)?

My first potential realised investment lost As my investment kept showing deeper reds, It’s about time I have a more concrete exit strategy (should have one before entering) for my investment. I’ve placed a stop lost at $0.690 (Buffer). How did I get that number? Being a technical trader, it is my duty to identify trends and know what makes them. In a bearish trend, a series of lower lows and lower highs have to be formed by candlestick. If the low of $0.70 is broke, the REIT would have a higher probability to trend lower (Technical perspective). Why...

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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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