Author: SGDividends

Buy and Hold Strategy For The Long Term…Rethink again

So what does the term buy-and- hold really mean? How long does one hold to consider oneself such an investor? Frankly, its just an academic jargon which is of no use debating over. Life is larger than this. We were reading up on Marc Faber cos he looks abit like Hannibel Lector in the movie and also because he said that it is a myth that stock markets go up generally in the long run. So well.. this guy is a smart guy..having gotten his PHD in economics at age 25 and having so much experience in the money...

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Why Tempted SGDividends Are Not Investing into US Equities…

Aww man…we like Krafts and General Electric. Why? Do you know that Krafts are the brandowners of Oreo Cookies? Their financial ratios are not outstanding but they did a restructuring just 2-3 years ago which makes sense and we have the gut feeling that Irene B. Rosenfeld is a good leader.( we don’t really like it that she is both chairman and CEO though…). How about General Electric?General Electric are beseiged by their GE Capital..but their other divisions are going damn strong. Just click on the links of key developments for GE under Reuters, compare with other companies you...

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Why Tempted SGDividends Are Not Investing into US Equities….

Aww man…we like Krafts and General Electric. Why? Do you know that Krafts are the brandowners of Oreo Cookies? Their financial ratios are not outstanding but they did a restructuring just 2-3 years ago which makes sense and we have the gut feeling that Irene B. Rosenfeld is a good leader.( we don’t really like it that she is both chairman and CEO though…). How about General Electric?General Electric are beseiged by their GE Capital..but their other divisions are going damn strong. Just click on the links of key developments for GE under Reuters, compare with other companies you...

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An invisible tax…Cash is crap!

With the yet again recent move by the US Feds to increase the money supply by buying up mortgage backed securities..we vomited when we heard that news. The US is in a big mess…it seems they are operating in an environment where every action they take is a struggle between politics and pure economics logic. Don’t get us wrong…we think what the Feds are doing are logical from a public administration standpoint, but it is disastrous from an economics point. Anyway, SGDividends is ultra bearish on the US dollar and thats our personal opinion. It just makes perfect sense....

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How low will the STI Counters Possibly Get..Let’s Calculate

Ah…The million dollar question on when the STI’s low will be reached, so let us attempt this with some tangible data based on the last 2 recessions, the Asian Financial Crisis ( 97/98) and Sars ( 02/03). Actually, the idea to blog this was from a post from a website called money-and-girls.blogspot.com (yeah you perverts…you saw it right…girls…) who took the data from another website which we would have definitely acknowledged if we knew. Below is the data showing the percentage decline from the peak 93/98 high to 97/98 low during the Asian Financial Crisis and from the peak...

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Financial Institutions are Your Friends – Some ramblings about Structured Warrants

We stumbled upon this advertisement in Singapore from a financial institution and thought what great marketing material it was. What they wrote seem to imply that their hedging strategies are perfect ( second paragraph) and any gain to the warrant holders are taken from the losses of the warrant issuers’ counter party whom they entered into positions with to hedge their warrant positions. Its not really right to state its a win-win situation between issuers and warrant holders since the issuers are still earning the premiums with no risk ( assuming perfect hedge) but risks still exists for the...

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How to be a DIY Equity Investor – The Minimum Considerations

It’s been sometime since we updated this blog, having been distracted by something beautiful. We have learnt a lot about ourselves these few years ,made some terrible investments but life goes on. We can’t turn back time but the only thing within our control now is to learn from our mistakes and not ever make the same ones again. For this article, we thought of sharing our opinions and proposing a systematic way in which one should pick their stocks and when to buy and sell equities in general. This should actually be the minimum we think one should...

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About Gold – An Opinioniated Article Against the Majority

We met an old finance lecturer today and boy does he look old. He told us to buy Gold because the value of the US Dollar is forecasted to decline in the long run and Gold is deemed to be inversely related to the USD dollar. Should we listen to him? Yes, we agree with him that the US Dollar is highly likely to decline, but still should we buy Gold? As Indians are particularly fond of Gold, we decided to go to Mustafa Centre to immerse ourselves in the big jewellery shops they have there where one would...

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A Peek Into the Fund Managers Holdings

Fund managers seem to be very restricted in their investments. We were just thinking one day and imagining when a large redemption occurs, if fund managers had placed their allocations into stocks that are highly illiquid, they will find it quite difficult to sell such stocks and therefore have to sell them at a very low price so as to meet the redemption. This implies they would prefer to place their allocations into stocks that are more liquid. Judging by the monthly fact sheets published by them, where they show the funds’ top 10 holdings, it is usually the...

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The Sexy VJC Girl Analyses Cambridge Industrial Trust

The SEXY Victoria Junior College girl has been spending a lot of time with us. Out of the blue one day, she emerges with the maximum value that one should pay for Cambridge Industrial Trust. ( She is really quite interesting and surprising! And she like to determine the Value of anything. For example, she even determines the value of playing tennis vs spending time with us and she comes up with a figure.) Anyway, she told us that her teacher says females are better at investing and guys suck cos guys monitor the stock market too much and...

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Singapore stocks are just cheaper but they are still not cheap. Here’s why..

We had a heated argument with The sexy Victoria Junior College student today because she hurt our ego.She said that after looking at our portfolio of stocks, she thinks it sucks. We, erhem, naturally felt insulted. We explained we bought most of it during the month of October. She countered with saying :” I don’t give a fiddler’s fart when you buy it. Everything has a value.” We, to prevent a further bruised ego, retorted by saying: “ Hey, you little lim kum put of a little girl, who has been monitoring the stock market while you are studying...

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How to Value Equities Using Benjamin Grahams Simple Formula! – Example SATS Singapore

We just finished reading “The Intelligent Investor” by Benjamin Graham and we will distill the important points for our dear readers. Actually, we didn’t really agree on some of Benjamin’s methodology because some of it was purely rule of thumb. BUT….given that he has “reproduced” some pretty fine students, see below table and compare their performance with our Dear Aberdeen Fund Managers and Dear Fidelity Fund Managers from Fundsupermart Singapore, we have became believers. Shameful…..still taking management fees somemore! Read here on what Warren Buffet say about such people. Benjamin Graham came up with a simple rule of thumb...

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What should I invest now? Get real confused by following the Gurus!

See the current portfolios of investing GURUs. Warren buffet, Boone Pickens and George Soros. Each is regarded as having been successful in investing and experienced ( read: old) enough, having been through market ups and downs to be considered credible in their stock selection. But alas, just look at their porfolio allocations and at first glance, be terribly confused. Warren Buffet seems to be underweight in Oil & Gas, but Boone and Soros is overweight in these. Warren Buffet seems to be overweight in consumer goods ( staples) but Boone and Soros are underweight. Look at the finance allocation...

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ChinaMilk – Mooing away to a Bullish Time?

ChinaMilk has suffered a crisis within a crisis within a crisis for 1) being a China Share 2) Being embroiled in the Melamine scandal and 3) being in the financial crisis. As the saying goes, in crisis lies great opportunities, therefore, our SGDividends radar decided to zoom in on this counter. Is there a GEM of an opportunity? Let us see… By: SGDividends It’s net profit is an astonishing 64%!! Not surprising actually when one thinks of it, just think of how cheap semen is and embryos. Looking at the balance sheet, the current asset is much much larger...

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How to Value Reits – Example: Ascott Singapore

By: SGDividends SGDividends is on a mission…to make investing look so “chicken-feet” that people, large or small, pink or green will be able to invest wisely. The best people that have their best interests at heart is of cos, themselves. See Mr Tan Kin Lian’s Blog for examples. The How-to article we are writing today is drawn from many sources, such as stockfundatalk (check out this blog..its fantastic!), investopedia,wikipedia, our teammates, Analyst reports (yes..we know), textbooks..e.t.c. SGDividends just simplified them and modified them using a Singapore example. So read on …join us in a quest! Number 1: Adjusted Funds...

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