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Contrarian Investing Part 2: Lessons from Templeton

Contrarian Investing Part 2: Lessons from Templeton

Stock Picking Strategy Series: Contrarian Investing Part 2: Lessons from Templeton

If you like this column on contrarian investing and applying to stock analysis, please start voting which stocks you would like them to write on in their next article! This is your chance to interact with them and they will write on the most voted stock of your choice!

How to vote: Comment any of the 4 listed stocks of your choice mentioned in the article (M1, Comfort Delgro, SPH, SIA Engineering). The most number of likes/comments by Monday morning will be chosen. It’s that simple!

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Disclaimer: this article simply provided analysis on stocks from the fundamental perspective, it does not represent any buy/sell recommendation from Investingnote. *All the dollar unit ($) in this article refer to SGD.

This column is written by @j_chou.
–Jay has an interest in global macro trends, financial markets and equity research and enjoys applying a combination of the three in his investments. His eventual investing goal is to manage a risk parity portfolio and achieve true financial freedom.


With S&P 500 and NASDAQ closing at record highs today and VIX Index at a 23-year low, the timing seems ripe to revisit the contrarian approach!

Besides Dremen, another famous investor whom we can learn the contrarian approach from is Sir John Templeton.

Known for his acumen in global stock-picking, Templeton’s principles of purchasing at “maximum pessimism” pushed him towards stocks that had been entirely neglected. His story of profiting off the Great Depression is legendary: in 1939, he purchased $100 worth of every stock which was trading below $1 per share on the New York and American stock exchanges. This totalled about 104 different companies, a whopping 34 of which were bankrupt, and Templeton’s initial investment was $10,400. After four years, he managed to sell those shares for nearly four times the money he had initially invested. His genius proved to be timeless, as yet again in 1999 during the dot com bubble he famously predicted that 90% of the new Internet companies would be bankrupt within five years, and he very publicly shorted the U.S. tech sector.

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Noble Group Singapore: Share Price Sinks On News

Noble Group Singapore: Share Price Sinks On News

The share price of Noble Group tanked almost 50% today upon news of its strategic review.

 

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Noble Group announced that it will continue to focus on debt reduction by selling its Global Oil Liquids and North American Gas & Power businesses. Net proceeds from the sales, along with proceeds from a new asset disposal programme comprising certain of the group’s assets located outside North America, will generate significant cash proceeds to allow the Group to retire 2 of its secured borrowing base revolving credit facilities, as well as reducing the group’s remaining debts. The commodities trading group also issued a loss warning for 2Q17.

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Amazon Is Coming To Singapore: What You Need To Know

Amazon Is Coming To Singapore: What You Need To Know

Update: Amazon’s launch is official. Amazon has made its way into Singapore.

Amazon Prime Now app is now available for download on the app stores.

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From The Straits Times news, Amazon is using Singapore as a gateway to enter the Southeast Asian market.

The launch, according to the portal, will see services such as Amazon Prime, Amazon Prime Now fast delivery and Amazon’s e-commerce services made available to Singapore’s population, which numbers over five million people.

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What you need to know about Union Gas IPO

What you need to know about Union Gas IPO

Union Gas Holdings is an established provider of fuel products in Singapore with over 40 years of operating track record, is offering (IPO) 60M shares at $0.25 per share on the Catalist board, which will value the company at around 50M.

1.28M shares will be available for the public with the rest via placement. It will start trading on 21st July, 9am.

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Contrarian Investing: Dreman’s Philosophy & Strategy

Contrarian Investing: Dreman’s Philosophy & Strategy

Dreman’s Contrarianism: Investment Philosophy and Strategy Part 1

David Dreman is the chairman of Dreman Value Management Inc. and his Dreman’s High Return Fund is one of the all-time highest returning mutual funds in the USA since its introduction in 1988. He is widely knowns for his iconic contrarian investment strategy and has authored a few books that revolves around this theme, including the investing classic and bestseller “Contrarian Investment Strategy: The Psychology of Stock Market Success(1980)”.

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Rowsley Ltd: Stock surges near 100% in a day

Rowsley Ltd: Stock surges near 100% in a day

Breaking News: the proposed acquisition for a 100 per cent of Thomson Medical Pte Ltd and a 70.36 per cent stake in TMC Life Sciences Bhd (TMCLS) by Peter Lim causes share price of Rowsley to soar nearly 100% in a day.

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Rowsley shares soared today when news got out that its controlling shareholder and billionaire Peter Lim is planning to inject his 100 per cent stake in Thomson Medical and 70.36 per cent stake in Bursa-listed TMC Life Sciences into the company.

Peter Lim is a famous Singaporean billionaire who’s also the owner of Valencia CF since taking over in 2014.

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SGX is bringing back lunch break during trading hours

SGX is bringing back lunch break during trading hours

It’s official: SGX is bringing back the lunch break, after six years since 2011.

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The key purpose why the break was removed back then, was a strong bid to perk the market and raise trading volumes. However, brokers admitted that removing the lunch break was not very effective.

The SGX also announced that it will be widening bid spreads for certain stocks.

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Hengxin Tech: evaluating it as a Net-Net Play

Hengxin Tech: evaluating it as a Net-Net Play

Company Overview

Hengxin Technology Limited ($Hengxin Tech(I85.SI)) is an investment holding company principally engaged in the production of radio frequency coaxial cables for mobile communications.
The Company is also engaged in the research, design, development and manufacture of telecommunications and technological products, mobile communications systems exchange equipment, as well as antennas and high temperature resistant cables.Given that the focus is on net-net strategy, in this article I will approach the valuation of Hengxin Technology on the basis of its assets e.g. should the stock be trading at a discount to its asset value? Should the company be selling for less than its liquidation value? Hence, note that in this instance the conventional method of cash flow generation; analysing the company’s operations and business value is not as important.


This column is written by @j_chou.
@J_chou has an interest in global macro trends, financial markets and equity research and enjoys applying a combination of the three in his investments. His eventual investing goal is to manage a risk parity portfolio and achieve true financial freedom. 

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