This post was originally posted here. The writer is a veteran community member and blogger on InvestingNote, with username known as SmallCapAsia.
With a higher than average tolerance for risk, I’m a big fan of growth shares and you’ll find a number in my portfolio.
I’m looking at adding a couple more to my portfolio in the near future and three that I’m considering are listed below.
#1 United Global Limited (SGX: 43P)
United Global Limited is an independent lubricant manufacturer and trader providing a wide range of high quality and well-engineered lubricants.
The company produce their own in-house lubricant brands such as “United Oil”, “U Star Lube”, “Bell 1”, “HydroPure” and “Ichiro” as well as manufacturing lubricants for third-party principals’ brands.
United Global Limited serves clients mainly from the automotive, industrial, and marine industries. To date, the company has a wide distribution network covering over 30 countries.
Source: United Global Limited Annual Report 2017
United Global Limited revenue has been moving in sideways in the past 5 years. Despite that, its bottom line growth has delivered spectacular results. From FY2013 to FY2017, the company’s revenue was hovering around USD 100 million. …
A tariff is basically a tax paid on imports and exports of goods and services.
An imposing tax on an imported product would cause its price to increase, which results in a decrease in demand for imported goods. In relation, the price of local products becomes lower to the consumer.
The US Total Imports vs Dutiable Imports from 1821 to 2016 can be seen below:
The current US deficit as of 2017 is $500 billion. The US imports from China about four times as much as it sells to that country in goods as services, leaving Washington more room than Beijing to tax a greater share of bilateral trade. The U.S. trade deficit with China was $375 billion in 2017. The trade deficit exists because U.S. exports to China were only $130 billion while imports from China were $506 billion. The United States imports consumer electronics, clothing, and machinery from China. A lot of the imports are from U.S. manufacturers that send raw materials to China for low-cost assembly. Once shipped back to the United States, they are considered imports. …
But first, what exactly is a corporate action? And why does it matter?
According to Investopedia,
A corporate action is any activity that brings material change to an organization and impacts its stakeholders, including shareholders, both common and preferred, as well as bondholders.
Photo: Hyflux AGM
Corporate actions includes:
Stock Split and reverse split (consolidation)
Mergers and Acquisitions
Corporate actions are important source of indicators for the retail investors to monitor the company’s direction and effectively, the share price. There are some rules that investors and traders have to take note of, according to Li Guang Sheng (a top tier remisier and veteran community member):
Officers and employees of the Company two weeks before the announcement of the Company’s financial results for the first three quarters and one month prior to the announcement of the full year results (“Black-out Period”). Usually there will be internal memo to notify and remind all Directors, officers and employees of the Company on compliance with the best practices on dealing in securities pursuant to Listing Rule 1207(19)(c), in not dealing with the Company’s securities during the Black-out Period. The Company, its Directors and officers should be aware that the Company should not deal in its own securities (including undertaking any share repurchases) during the Black-out Period. Therefore, the Company would wish to complied with the Listing Rule 1207(19)(c) and not run foul with SGX.
If the players of the company shares belong to insiders, then during this period there may be less buyers and harder for you to run or sell your shares. Also if the company is undergoing share buyback and supporting the share prices through daily share buy back, the price may tank during the 2 weeks of no buying from the company or 4 weeks if it is the full year listing result period. So for those who trade heavy, be prepared to reduce your position 2 weeks prior to quarter result announcement due to less liquidity.
Also take note on listed company share buy back rules,
a) on-market purchases should not exceed 5% above the average closing market prices of the share over the last five market days;
b) details of purchases to be released to the SGX-ST, if it is non-market purchases, by 9am on the next market day, or, if an off-market acquisition, by 9am on the second market day after the close of acceptance.
Watch this quick video of Guang Sheng where he explains why corporate actions are so important:
This latest workshop in our series, is all about helping retail investors focus on key criteria in the stock selection and portfolio allocation process by using a solid checklist.
Serious investing requires the investor to do his homework.
Every piece of homework done needs to follow a structure. Like the great Benjamin Graham and Warren Buffet, great investors always have a plan.
Like the saying goes…”Failing to plan, is planning to fail.”
This is the workshop that teaches you how to plan your portfolio, by first creating the most crucial part of the plan: the checklist.
Whether you’re a totally newbie or an experienced investor, having a solid investing checklist is necessary because it will set the criteria, tone and structure to pick the best stocks and also manage the worse threat faced by investors when it happens – Fear.
In this session, we will share with you how you should build your own portfolio using this 10-step checklist.
Top 11 Things Every Investor Must Know (before they really start stock investing).
Just to provide some context on why we decided to create this infographic; over the weekend, we attended the SGX’s My First Stock Carnival, held at Vivocity. This carnival was attended by many people who’re interested to start their investing journey.
This is a carnival meant for helping both the young and old to get started on investing in their first stock.
We also presented on how Fintech can help speed up the learning journey of a budding investor. Most investors do fundamental analysis (FA) for their stock selection criteria. There’s also global macro analysis which is essential in letting investors know about the overall sentiments of the stock market.
So, to help more people to increase their financial and investment literacy, we’ve created an infographic about the Top 11 Things Every Investor Must Know (before they start stock investing). …
This post was original posted on smallcapasia.com and reproduced with permission from the author.
Hyphens Pharma IPO: Here’s 5 Quick Things You Need to Know
Hyphens Pharma is a speciality pharmaceutical and consumer healthcare group with a direct presence in five ASEAN countries, namely, Singapore, Vietnam, Malaysia, Indonesia, and the Philippines.
The company was incorporated in Dec 2017 as a private company. It sells speciality pharmaceuticals, a proprietary range of dermatological products and health supplement products through Hyphens and Ocean Health Singapore, and medical hypermart and digital supplies.
Hi everyone, the next installation of our monthly workshop series is happening on the 28th February, Wednesday.
This time, it’s all about Fundamental Analysis: G.A.R.P Strategy.
In Fundamental Analysis, there’s 2 camps: Value and Growth Investing.
While the former looks at stocks trading below their intrinsic value, the latter focus more on the future potential of a company.
What if you can combine tenets of both growth investing and value investing to find Undervalued stocks with sustainable growth potential?
That’s where great investors use the Growth At A Reasonable Price (GARP) Strategy.
This is the workshop which you will learn how to use the GARP strategy to maximise your stock investments.
Conducted by James from SmallCapAsia @Smallcapasia will teach you:
✔ What is GARP Investing
✔ Who are the proponents of GARP approach
✔ Characteristics of GARP stocks
✔ 1 Quick Way to value a GARP stock
✔ How to Value-add with 2 Important Indicators
✔ 3 Case Studies using GARP strategy
**Early-bird discount: GET $10 OFF**
Use code: EB100
Register Now, Come Later!
We’d see you there!
The Beginner’s Guide to Understanding The 3 Financial Statements
All listed companies on SGX are mandated to report their financial performance periodically. Every quarter, companies must report their financial performance using a structured set of 3 financial statements. The financial statements adhere to international accounting standards and the local Singapore reporting standards have very similar formats making it easy for investors to review.
We decided contribute to the InvestingNote community with an educational piece to demystify the 3 financial statements.
When read with begin with A…B…C…, when we sing with begin with Do… Re…Me…
That at least how the song lyrics go.
But when we want to understand and assess the financials of a stock, we need to begin with the 3 financial statements, namely:
Balance Sheet (or Statement of Financial Position)
Income Statement (or Profit/Loss Statement)
Cash Flow Statement
Financial statements are reported based on time periods. By reviewing the 3 financial statements, investors are able to deduce the financial position of the business and how its financials have changed over time. …
Seafood restaurant chain and brewery business group – No Signboard Holdings is seeking a Catalist listing to raise up to $35mil. Based on preliminary information, this could potentially value the company at approximately $130mil.
The KKREIT is a Real Estate Investment Trust (REIT) which draws rental income from 11 office properties across 7 major US cities including Seattle, Austin, Houston and Atlanta. The assets are a mix of prime and sub-urban office spaces.
At the time of writing, KKREIT has just lodged a preliminary prospectus for a listing on the Singapore Stock Exchange (SGX) mainboard. There is a total of 262,772,400 (262.77mil) units on offer at a price of US$0.88 per unit. The IPO and trading of the units will be denominated in USD. …