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New Oriental Education – This Company Grows at 138% In The Past 12 Months (Guest Post)

New Oriental Education – This Company Grows at 138% In The Past 12 Months (Guest Post)

This is a company that has returned 138% in the last 12 months for investors as the company is looking to grow even more in the next few years which spells opportunities if you are looking into a growth play.

This post was originally posted here. The writer, Brian Halim is a veteran community member and blogger on InvestingNote, with username known as 3Fs and 1800+ followers.

The company last closed at it’s historical high at $122.72 and it is continuing to grow at a very fast double digit topline growth in the next few years.

Company Overview

Founded in 1993, New Oriental Education & Tech Group (NYSE: EDU) is the largest provider of private educational services in China. The company has an extensive network of over 1,261 learning centres that span across 56 different cities. New Oriental was the first successful Chinese educational institution to be listed in the New York Stock Exchange through their public offering back in 2016 and it has a market capitalization of over USD14 billion today.

The company has a substantial presence in Beijing, Shanghai and Wuhan, where combined they have a total presence of 245 learning centres, or close to 20% of their entire portfolio.

Beijing: Beijing has one of the fastest growing population in China, as the number of people living in the city grew from 13.5m in 2000 to 20.1m in 2019 (source: worldpopulationreview). In terms of GDP per capita, Beijing has also outperformed the rest of the cities by growing at more than 8% per annum, despite the ongoing Trade Wars threatening the slowdown of their growing nation.

Shanghai: Shanghai currently ranks first in terms of population density as the modern revolutionized city appeals to International expats and locals to come to Shanghai for both work and live. It currently houses a population of about 26m but has the infrastructure capacity to double its living population in the city to 50m by 2050 (source: shine.cn) through their urbanization transformation in the region and strong economic growth.

Wuhan: Wuhan is a surprise inclusion because of its strong economic growth and infrastructure transformation over the years, the city has recorded one of the highest rate of historic population growth over the years (source: wiki-wuhan). To date, their population stands at about 10.6m, which is about half the population size of Beijing.

Financial Performance

Revenue has increased by 26.5% year on year from $2.4m in FY2018 to $3.1m in FY2019 and has grown at a CAGR of 19.8% over 5 years.

This is mainly due to both the organic aspect of growth (152 new facilities and learning centres added in FY2019) as well as inorganic growth through the successful implementation of the optimization strategy coming in from the K-12 After-School Tutoring division and U-Can Middle School, which grow by 28.5% and 27.2% respectively.

Gross Profit margins continued to remain resilient at 55.5% in FY2019, despite coming in slightly lower than the 5-year average of 57.3%.

As the company seek to embark on its expansion plan, the company has correspondingly incurred higher costs for marketing and other SG&A related costs such as salary and rent as there are higher headcounts to account for.

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Why OCBC Q3FY19 Profit Results Might Fall Double-Digit Percentage YoY (Guest Post)

Why OCBC Q3FY19 Profit Results Might Fall Double-Digit Percentage YoY (Guest Post)

OCBC is scheduled to announced its results on the 5th Nov (Tuesday morning) before the start of market trading.

This post was originally posted here. The writer, Brian Halim is a veteran community member and blogger on InvestingNote, with username known as 3Fs and 1800+ followers.

UOB announced its Q3 results this morning which gives a big hint of what is to come for the other two banks.

The drop in NIM and increase in NPA is worst than expected, and if not for the loan growth segment in the Singapore that helps, it might look like a worsen Q3.

This is 5 reasons why I think OCBC Q3 FY19 profit results are going to fall double-digit in terms of percentage year on year.

1) Net Interest Margin Compressed QoQ and YoY

In FY18, OCBC’s Net Interest Income contributes 60% to their total revenue while Non-Interest Income contributes the rest of the other 40%, so we’ll approximately use that as a gauge.

Q2FY19 Net Interest Income came in at $1,588m while Q3FY18 Net Interest Income came in at $1,505m.

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One stock that gave more than 30% in 3 months, even amidst the Trade War

One stock that gave more than 30% in 3 months, even amidst the Trade War

Lately, markets around the world have been volatile because of the ongoing Trade War.

Fears of recession amidst the trade war have been looming since the last few months.

But, we found one company that still managed to shine bright.

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In fact, it shined very, very bright.

What is this company, what exactly does it do and what are the returns like?

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US And China Trade War Escalates. What Are The Implications?

US And China Trade War Escalates. What Are The Implications?

What is the Situation?

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On Friday, 23rd August, Trump said in a tweet that U.S. companies “are hereby ordered to immediately start looking for an alternative to China, including bringing your companies HOME and making your products in the USA. ” It was not immediately clear under what authority or how the president could implement such orders. On the same day, China announced plans to impose additional duties on $75 billion worth of American goods on Sept. 1 and Dec. 15. In response, U.S President Donald Trump tweeted later that day his administration would also raise tariffs on $550 billion of Chinese imports. The latest round of tariff announcements in the last few days means that by the end of the year, essentially all Chinese goods exported to the U.S. will be subject to duties based on sources from CNBC.

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Singapore REIT Fundamental Analysis Comparison Table – 12 August 2019 (Guest Post)

Singapore REIT Fundamental Analysis Comparison Table – 12 August 2019 (Guest Post)

Technical Analysis of FTSE ST REIT Index (FSTAS8670)

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This post was originally posted here. The writer, Kenny Loh is a veteran community member and blogger on InvestingNote, with username known as marubozu and 700+ followers.

FTSE ST Real Estate Investment Trusts (FTSE ST REITIndex)broke outfrom the 10 years resistance at 875 with significant increase in trading volume. The REIT index is currently retracing from the high 941.77 to 895.14 (-4.95%). Next immediate support zone is between 870 to 875 for a healthy correction. Previous chart on FTSE ST REIT index can be found in the last postSingapore REIT Fundamental Comparison Tableon July 1, 2019.

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Singapore REIT Fundamental Analysis Comparison Table – 1 July 2019 (Guest Post)

Singapore REIT Fundamental Analysis Comparison Table – 1 July 2019 (Guest Post)

Technical Analysis of FTSE ST REIT Index (FSTAS8670). FTSE ST Real Estate Investment Trusts (FTSE ST REITIndex)broke out from the 10 years resistance at 875 with significant increase in trading volume. The REIT index increased from 858.67 to 916.95 (+6.78%) and as compared to last post onSingapore REIT Fundamental Comparison Tableon June 3, 2019.

The REIT index is entering in an uncharted territory after breaking new high and may head towards to 1000 points based on projection of 161.8% Fibonacci level. Based on the current chart pattern and and momentum, the sentiment is BULLISH and the trend for Singapore REIT direction is stillUP.However, the REIT index may go for a short term pause before moving higher.

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Best. January. Ever.

Best. January. Ever.

January 2019 is making the -8.8% in 2018 feel like a distant memory.

January sign lettering

Since my last post, I’ve received some queries asking about my specific positions. With the CNY break around the corner, I’ve some time to put all this up. Some have asked me why I’m no longer putting up my extensive writeups on stuff that I’ve done DD on. Well, that’s cos I’m mostly working on global equities, particularly US ones, and I don’t think there’s much appetite for that here.

This post was originally posted here. The writer is a veteran community member and blogger on InvestingNote, with username known as ThumbTackInvestor, with more than 2,000+ followers.

And anyway, I did put up in fact:

11% Returns In A Single Day. Thank You Blue Orca Capital!

TTI: “I’m Sorry, It’s All Over Between Us. I’m Breaking Up With You”

OK, I can’t find the one on DIS right now, but I’m sure it’s somewhere around.

This post is specifically on the US portion of my portfolio, excluding the SG and the bond portions.

Since my last post (1st Post Of 2019.), things have gotten… even better. MUCH better.

I’d have taken a 22.11% return and ended 2019 right there and then. Yet, TTI’s US portfolio continued outperforming S&P and other index benchmarks massively.

 

As of end Jan 2019, the ROI shot up to 28.36%.

NAV rose from USD 441,055.43 to USD 550,988.57, and that’s after a withdrawal of USD 14,716.20 made.

Net quantum gain in Jan 2019 alone was thus USD 124,649.34.

The best 1 day return was on the 04th Jan 2019, when the portfolio gained 7.32% in a single day, while the worst was on the 03rd Jan 2019, when the portfolio fell 4.45% in a single day.

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Don’t make the same mistake that I made 2 decades ago (Guest Post)

Don’t make the same mistake that I made 2 decades ago (Guest Post)

For the calendar year 2018, the Straits Times Index (STI) retreated from 3400.91 at the close of Year 2017 to 3068.76 at the close of Year 2018. The absolute fall for the calendar year 2018 was more than 10%. It had defied the predictions of many analysts.

Many of them were generally bullish at the beginning of Year 2018. By today, on the 1st day of trading for Year 2019, it retreated another nearly 30 points, -29.87 (to be exact). Surely, many players have been slowly but surely cashed out of the market as the market retreated. Even those with cash to spare were not willing to get into the market. Just as we know in economics, there were more sellers than buyers for year 2018. That, precisely, was the reason for the market to fall.

This post was originally posted here. The writer is a veteran community member and blogger on InvestingNote, with username known as BrennenPak, with more than 3,000+ followers.

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With each market fall, it flushes out some players. The unfortunate thing is market retreats and advances are never linear with time. They are never exactly predictable, especially over a longer of period of 6 months and longer. Market volatilities are due to the changing political, economic and social conditions that are thrown out into the market from time to time. Frankly who is able to predict what an influential political figure will say or act next week or next month or next year. Most of the rise and falls were due to some smart Alex out there trying to anticipate the moves of these people before things really happen. Unfortunately, time and again, it almost always sucks in new players and throw out some others as the market rise and falls in a falling trend. Many players, who were unable to take the market gyrations would have cashed out of the market, and stayed in cash in hope to fight for another day.

Let me say this. Market gyrations are not an easy thing to stomach, especially for those who are very watchful of the market movements. In fact, many are willing to take losses and leave the market instead of riding through the market ups and downs as sentiments get hazy. Along with the falling market, I am quite sure a number of us have this floating thought “I would rather take a small return of even 1-2% to protect my capital than to see my capital dwindling with time.” That precisely became the guiding principle that drives their action. So, instead of staying liquid after cashing out, they choose to put the money into more certain investments. They gladly put their money in longer term plans, such as fixed deposits and Singapore government bonds and even insurance plans that can only yield rewards (if there really are any), at least, 1, 2 years or even a few years down the road. I mention this because I happened to see some posts in social media lately. Some people seemed to have decided to take this course of action. Frankly, this was exactly the mistake that I made 20 years ago.

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AEM dropped 38% over 3 days, many investors got hurt

AEM dropped 38% over 3 days, many investors got hurt

The 2017 top gainer stock has shocked many investors, as the recently plunged caught everyone off-guard.

AEM shown close to 500% gains in year 2017, with the top stock price rallying from $0.13 to $0.83. Earlier this year, we mentioned the top 3 hot stocks with the highest returns in 2017, with AEM as considered one of them. One of our users even made a million dollar holding AEM since vested 3 years ago before closing his position in Feb 2018, we have mentioned him in this post.

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CGS-CIMB downgraded AEM to a target price of $0.69 from $1.19, on 31 Jul 2018.  As of 10.33am, AEM was trading down 22.1 per cent, or 22 Singapore cents, to 77.5 Singapore cents apiece, amid heavy volume of some 18.9 million shares. That put it among the most active stocks.

The company’s stock has erased nearly all the gains it has seen since the start of 2018. It peaked at S$1.90 in mid-March.

As quoted from CGS-CIMB, AEM shown poor visibility for 2019.

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