Author: Wealth Directions

Top 10 Property Stocks – Sim Lian & Others

Congratulations to Ein55 Graduates who have taken action on Sim Lian when it was discussed in coaching recently, now it has become another low-optimism value stock under acquisition. Top 10 property giant stocks could be the next target of big funds, let’s learn how to find more. Singapore property market becomes bearish over the past 3 years after 7 rounds of cooling measures by government.  As a result, Singapore property stocks become more valuable with stagnant stock price and high property asset value.  There are many property counters in Singapore with share price below the net asset value (NAV),...

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How to Capture Falling Knife Safely for Stocks in Crisis?

Every crisis is an opportunity.  We have learned to be greedy when others are fearful.  However, not everyone is mentally prepared to buy low and sell high following one’s personality.  When a business is in crisis, the stock price is like a falling knife, one could get hurt when enters too early, buy low and may get lower, emotionally affected with the endless falling prices. For example, over the last 2 years of crude oil crisis, stock prices of global oil & gas stocks are significantly corrected. Singapore oil & gas stock index is at 9% optimism (see chart...

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美国牛市顶部之投资策略

因为理想的就业数据把美国股市再次推到这七年牛市的顶端,有机会在接下来的日子破新高而继续往上走。那是否代表牛市将继续?是的,指数将继续保持牛市向上,但不代表每一支股票都上涨。相反的很多股票和一些主要股市(见下图)已经在熊巿的道路上了,尤其是很多新加坡的股票。这就是为什么当大盘(尤其是美国股票指数)在将来确定熊市后,我们都不愿意或不捨得止损。因为我们手中的股票都已经跌到你不敢相信的价位。 亚洲股市指数 美国和欧洲股市指数 为了不再次在股災来到之前束手无策,我们应该在美国牛市的顶端考虑接下来应该调整投资策略以面对将于未来可能发生的股災。可能你不觉得会有股災,但是在央行的货币政策造成资金超发,债务高企,低利率与负利率,经济停滞不前,大多数人都无能力或不愿意消费而造成低通胀的环境。加上英国与欧盟的关系和美国将...

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Did You Profit From BREXIT?

  23rd June 2016 went down in history as Britain voted to be excluded from the EU. Same as the majority of people, I did not expected this to happen. However, more importantly, as an investor, I benefited from this news.     In my previous article, I shared about using the straddle strategy on GLD to potentially benefit from the movements of this counter. You may read the article HERE In summary, GLD was trading at $123.68 on 15 Jun 2016. The risk-reward analysis were as follows On 24th June 2016, a day after the BREXIT referendum, the...

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YoTa See My Trade results for June are in!

Boy! What a month! We knew June will be an exciting month due to “Brexit” and it did not disappoint. For those who have been following YoTa’s trades, you will know that YoTa made a killing before and after the Brexit day. One of the best performance was executed on 24th June with 34% ROI on a single trade! That result is amazing. Due to the expected volatility, YoTa took advantage of it and executed a total of 46 trades last month. That is almost twice the volume of a normal month. Not only that, his win rate jumped...

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投资股票的乐趣

我的学生觉得我买卖股票上瘾了,因为我出国旅行只要能上网我都有可能买卖股票。但我所花在买卖股票时间不多,因为我不是每时每刻都在盯着股票的波动。我在忙其他的工作或在进行其他的活动时,我是可以不理会股票的涨与跌。我有我的方法知道我要买的股票已经跌至我想买的价位,或股票己经涨到我想卖的价位。即使我手上有70多支我在关注的股票。我花更多的时间在找寻更值得我長期关注和投资的股票,阅读报告以判断我手中的股票是否应该继续值得投资,思索以更好的策略和有限的资金投入到不同的股票,等等……...

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The benefits of Options as compared to Stocks for long term investors

It is no secret that Options loses value over time. So is it viable to buy it for long term appreciation of a stock? Let compare stocks vs options using a real life example, MSFT. On 31st May 2015, MSFT was trading at $46.86. Let’s assume that we are optimistic on this counter over the next 12 months. One way is to buy 100 shares of MSFT for $4686. The alternative way is to buy a Strike 30 CALL options contract expiring on 21st Jan 2017. And from the diagram below, we could see that the Options is worth...

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How to Gamble Safely with Casino Stocks?

As we know, casino has unfair advantage of over 51% chances for all the games, therefore even a gambler has a 49% winning rate, over a long time with many times of gambling, the survival rate could be very low.  However, in the world of stock market, we could reverse the situation, playing the role as casino with unfair advantage on us, if we know how to position the right strategy, aligning with our personalities. Genting Singapore (SGX: G13) has suffered huge correction in share price to about 1/3 of the peak price.  In the past few years, earning...

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How to Pay $50 to Exchange for $100 in Hongkong Land?

We could apply discounted asset strategy to buy good business at undervalue price.  One simple method is to buy strong property stocks with low Price-to-Book ratio (share price divided by net asset value).  Hongkong Land (H78.SI) is a property stock listed in Singapore with commercial properties in Hong Kong, Singapore and China.  Currently Price-to-Book ratio is exactly 0.5, at its historical low (see chart below), owing to falling share price and consistent growing net asset value.  If an investor owns Hongkong Land at current share price (about US$6), it is as good as owning a portion of Hongkong Land...

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Temasek Acquisition of Eu Yan Sang at Low Optimism

We have learned from Dr Tee to buy giant stocks at low optimism for investing. However, nowadays fund managers have become competitors for retail investors for such investing opportunities.  Recently a consortium including Temasek, has offered to acquire Eu Yan Sang.  Let’s analyse further based on optimism strategies. The earning ability of Eu Yan Sang has declined over the past few years due to slowdown in local and regional economy but still it is profitable. Net Asset Value (NAV) of Eu Yan Sang has increased consistently over the past 10 years since IPO (see chart below).  Temasek and partners...

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Is it possible to make 400% returns in current market?

With the current stock market behaving in a volatile but range bound pattern, is it possible to earn 400% on any stock? Let’s shift our focus back to Apple again. Its recent unfavorable earnings had seen it falling from about $110 to below $90. An article published that Mr Buffett invested $1B on Apple as he feels that Apple is currently undervalued. Read the article HERE. So if we trust Mr Buffett’s judgement, should we follow suit? Well, it really depends on individual circumstances. Your goals, asset allocation, strategy, etc. Similar to how a supplement or drug that works...

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Sun Tzu’s Stock Investment Philosophies

Sun Tzu once said: Though the emphasis is to KNOW YOURSELF, but for this article, I would like to zoom into the other keyword; Knowing your enemy. In our context, the “Enemy” could mean other retail investors but I want to define the enemy as the investment itself, or the stock that we are investing in. So, when you invest into a company/stock, how well do you know the company (your enemy)? How has the company been performing in the last 5 or 10 years? Is their revenue/net profit improving or dwindling? Have they been declaring any dividends? Are the...

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With STI dipping below 2800, is it the time to be GREEDY?

In my previous article a month ago, I shared my analysis regarding the STI and how investors can position themselves to profit from the volatile market. You may read the article HERE Has the Bull Run resumed? Last month, I was invited to speak at SGX to offer my views if investors should be buying stocks considering the STI have rebounded 17% from 2550 to near the 3000 mark. Many of the large cap stocks such as DBS, Keppel Corp, Singpost and SembCorp reacted in the same manner. The surge of the STI within a short 2 month span...

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Stock & ETF Investing Opportunity in BRICS – Emerging Countries

Due to global economy slowdown in the last few years, stock markets in the emerging countries have suffered significant corrections, resulting in Level-3 (country/region) crisis.  The leaders of emerging countries are BRICS (Brazil, Russia, India, China & South Africa), stock prices are now at very attractive prices.  When the global economy starts to recover and accelerate, these emerging stock markets will benefit as well.  One could use ETF to trade or invest global stock indices. Due to economy and political instability, Brazil stock market now is at 18% Optimism, after 57% correction in stock prices (see chart below). Russia...

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