Author: Rainbow Coin

Keppel Corp – signs of oversold?

I seldom put up speculative posts, but can’t resist one here. Maybe signs of oversold have been long overdue but now is SUPER oversold. BN4 All time high this year: $9.54 All time low this year: $4.82 RSI is at extreme low of 30.67. Volumes are higher than usual last week plus consecutive price falls are indicative of big sell-down. Are investors capitulating or what? (And I also wonder if brokerages have enough shares to lend those short traders.) Date Open High Low Close Volume Adj Close* Jan 15, 2016 4.95 4.98 4.82 4.84 10,188,000 4.84 Jan 14, 2016...

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Confused about the market?

With so many information about the market and investment opportunities available to us – from news, charts, books, blogs, company websites, forecasts to advices from gurus, how many of us are NOT just ‘seeing’ the things we want to ‘see’ and noises we want to ‘hear’? We not born investors or traders in the market. Most of us started off like blind men feeling the elephant. Don’t despair, it’s not end of the story yet. We need to recognise that it takes time to touch and figure out the elephant. Don’t jump to conclusions without first asking the What, Why, How...

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A mock S-REIT portfolio (2)

About one month ago, I created a mock basket of S-REIT portfolio. Let’s see how these ‘kembings’ (every week I learn new terms from SMOL) have fared through Nov and Dec… Market $ Entry $ div yield% Shares P/B EV/EBIT Amount Reits Ascendas Hosp Trust 0.73 8.20 4800 0.7 26.7 $3,504 First Reit – health 1.17 7.00 2600 1.1 20.1 $3,029 CDL hosp 1.30 7.20 2300 0.8 15.6 $2,979 Ascott hosp 1.13 7.10 2500 0.7 28.8 $2,813 Mapletree logistics 0.98 7.30 2800 0.8 18.5 $2,744 Lippomall 0.30 10.20 10000 0.5 10.8 $2,950 Starhill global 0.74 6.80 3000 0.8 19.3...

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Revisit: Buying into the right business

When we buy stocks, we are actually buying into those businesses. So when you own the shares of example company A, you are actually buying into a small portion of company A’s business. That is stocks in a nutshell. Of course you would want to make sure that company A is doing very well with your money running its businesses and wish it has the potential to grow stronger – such that it’s earning will increase and demands for its stock will go up, in turn leading to increase in its share price. Stock market is a weighing machine...

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Lessons from 2015 that send me cringing

The Prologue Lessons learnt from Mr stock market: What looks ‘pretty good’ then (in a bull or not-yet bear market), would not look good now (bearish market). Perspectives change together with market outlook and current stock prices. Dividends in good times should be put into my pocket When a stock’s share price is high, it’s dividend option for reinvestment would be pegged to a lower price then the current share price. This makes getting scrap dividend shares look like premium. This would not be the case when the stock price plumages, as I could have used the dividend payout money...

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The Dividend Trap

Looking at the sea of red suddenly gives me a lot of inspiration to write. In times of peace I was like in slumberland (for finance blogging). So while I am awake, I wanna shoot this very trendy investment term – DIVIDEND. Is dividend yield most important when you make a stock selection? Do you frequently look at dividend trackers? Is your investing goal or objectives mostly revolving around dividends? If all your answers are yes, then you might have fallen into the ‘Dividend trap’. Since Dividend yield = Dividend yield ($) *100/ Price of share ($), when there is...

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Time to learn from old times bloggers

In the volatile bear market which has the potential to become even more bearish, it is time to dig up and revisit OLD posts (and any of past reflections) of finance bloggers who have been through the Great Bear markets. Why? It is always less painful to learn from others’ mistakes. But you might argue that one would remember the pain more if learning from one’s own fall. Just don’t purposely go and fall down to learn. – Now I don’t really care about the fall. Slide or tumble, doesn’t matter. Now am waiting for the point of consolidation...

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A brief market review

Read: The Impact of the Likely U.S. Rate Hike on Asian Equity Markets Fed rate hike boosts Asia Pacific markets but oil price continues to fall China selloff sparks gloomy 2016 start for stocks https://www.fool.sg/2015/11/11/is-this-as-good-as-the-singapore-market-will-get/ “Although QE tapering and rate hiking are two separate issues, the implication to the markets is similar, namely rising interest rates, tightening capital funding, capital outflow from emerging economies, and currency instability. All of these will have a much worse impact on economies with large current account deficits, high external borrowing relative to reserves, high inflation, and deterioration in economic fundamentals.” “That period of...

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A personal to do list 2016

From past experiences, ‘resolution’ and ‘wishlist’ don’t work. So this year I came up with a ‘to do’ list. ‘To do’ things are things that are fully within my control and can be done by myself. I realised when I was younger I tend to be more idealistic, now I know expectations are inward-out not outward-in. 1) Enrol in pilate or gym (body building) course, go swimming more regularly. I need to find back my six-pack and stamina. If I don’t enrol in any class, I have no discipline to follow through. 2) Reduce my personal store of inventory...

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Don’t try to catch fish in muddy water

He waddled into muddy water hoping to catch big fish: He entered a stock position of which he is unclear of the company and stock price situation. He stand in the muddy water and hope the big fish swim would swim into his net: He just waited and hope the price would change to his favour. Even when a fish does swim into his net, he doesn’t know to pick it up and leave: Even when the stock price does a small rebound he refused to sell his position. He remained stuck in the muddy water. That’s the story...

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A mock S-REIT portfolio

If I were to construct a high-yield REITs portfolio of 10 stocks (prices were taken from Nov15 as I drew this last month), this is how it would look like: Market $ Entry $ Div yield% Shares P/B EV/EBIT Amount invested S-REITS Ascendas Hosp Trust 0.625 8.20 4800 0.7 26.7 $3,000 First Reit – health 1.19 7.00 2600 1.1 20.1 $3,094 CDL hosp 1.32 7.20 2300 0.8 15.6 $3,036 Ascott hosp 1.2 7.10 2500 0.7 28.8 $3,000 Mapletree logistics 1.005 7.30 2800 0.8 18.5 $2,814 Lippomall 0.305 10.20 10000 0.5 10.8 $3,050 Starhill global 0.765 6.80 3000 0.8 19.3...

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5 reasons why I don’t use a budgeting app

I have tried it but eventually gave up. Here are the top five reasons why I do not fancy a budgeting app: 1. I don’t like to do frequent data input. It can get quite irritating at times if I forget to key in any income or expense and it’s a headache to count ‘every cent in the wallet’. 2. I consolidate spending / savings on 3 monthly basis, since online banking statements are usually laid out in 1-3 months frame. I do a personal cash flow excel sheet yearly (or half yearly, depending on my mood) and review...

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Time of the year to jump ship (soon)

It’s the time of my career (and the year) once again and this time it didn’t take as long as the previous one to decide. I like to go with reasons more often than the heart (although sometimes they coincide to the same conclusion). Here is my rationalization on WHY I should be tendering my current job. Why I work – To earn a living – To satisfy my passion for something I like to do – To sell / provide solutions to others – To achieve a cause that I believe in I resign because – The main...

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Revisit: a few good reads on Stop Loss

It is in the human psychology to want to win back what we have lost. It is exactly this psychological notion which set us back and made us sit on our paper losses hoping that one day those losers would make a comeback. It is also this that made us ‘throw good money after bad money’. I think we should be treating our shares like eggs rather than antiques. If the egg has gone bad or lost its value, we should discard it. Don’t live in the illusion that your eggs are golden eggs or antiques. There’s no need...

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Blue chips still in red sea

STI snapshot STI components are down an average of 22.9% from their all time high this year. Highlighted in yellow are the “more shock-proof” stocks which are currently down less than 10%, whereas those in red are down by at least 30%. The generally shock-proof ones are namely SATS, ComfortDelgro and SPH. I would expect Telcos to be resilient but I guessed because of being over-valued at the high, the rebounds are limited. Most of the blue chips have slightly rebounded since my previous post in September, which were down by an average of 26.2%. How many of these...

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