Thought Process On Picking Your First Stock (Guest Post)

Thought Process On Picking Your First Stock (Guest Post)

I’ve had countless queries in the past and a couple of emails recently from readers who are interested to start investing and one of the commonly asked questions is ways to pick the correct stock to invest. The first stock purchase for an investor is always intriguing.

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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 has 2169  followers.

The emotions when you first purchase your stock are filled with mystery, excitement, fear and then there’s always the risk and reward. Many will soon get addicted to it and then will proceed with the next second and third purchase and so on.

It’s incredibly difficult to answer this short question to any investors who are asking as there’s legitimately no right or wrong answer. Nevertheless, I’ll try to provide some framework guidance which hopefully can be productive and useful to any investors who’s starting to venture out on their own.

Step 1: Organize a list of companies in your respective region that are big market cap
Your very first step as a beginner should always be looking at the bigger market cap in your respective region. This means looking at the likes of blue chip companies such as Singtel, DBS, OCBC, Sembcorp and SIA in your STI index if you are looking at the Singapore market. In the US market, you will get a list of acquainted well-known companies such as Apple, Boeing, Facebook, Starbucks, Visa and many more.

Don’t buy them yet at this point because there’s many rotten apples hidden in the fundamental of these companies, even for blue chips.

At this point, all you want to do is to get a grasp understanding of:

  • What is their business model?
  • What products do they sell?
  • What competitive advantage do they have over their competitors?
  • How much market share have they acquired?
  • Management capability and their historical financial performance

Most, if not all of these information, are easily available in the annual reports or financial statement of the company where typically management would provide operational quantitative updates on how they are doing or coping with the situation.

All you really need to do at this point is just to spend some time gathering the information and writing some notes down and that’s it. No action should be taken yet at this point because the information you have is public, which means anyone else will have the same information as you do so that’s not really helping you to gain any advantage.

You may also want to segregate the list of companies that are appearing in your newsfeed or newspaper because not all the time they are good. The fact that you read in the newspapers that people are queueing up at McDonald’s does not immediately qualify them to be a good stock.

Always be selective when reading and takes information with a pinch of salt. This way, you will have more questions than answers which is good because it leads you to explore more on your questions.

Step 2: Areas of Competency
Your areas of competency is your competitive advantage over the next other person that you have a lead on.

This lead can be achieved through years of working in the industry and getting to know-how the inside operations of how certain things might work in detail. For example, if you are in procurement, you would know how aggressive your competitors are pricing in their bids for the tender or if you are working in supply chain logistics company, you would better understand the details on transit times, delivery performance, freight claims and customs requirement.

Thus, when you select companies that are in your areas of competency, you are able to value-add your experience to the companies you are prospecting and make better informed decisions from there.

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3 Companies With Insiders Buying Shares Recently (Guest Post)

3 Companies With Insiders Buying Shares Recently (Guest Post)

Occasionally, I would like to look at insider or share buybacks to see if I am lucky to spot any hidden gems. In fact, this is also one of the more commonly used strategies by investors. Why is that so?

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This post was originally posted here. The writer, James Yeo is a veteran community member and blogger on InvestingNote, with username known as Smallcapasia and has 864 followers.

As the legendary Fund manager Peter Lynch once said, “Insiders might sell their shares for any number of reasons, but they buy them for only one: they think the price will rise.”

In short, a company’s management would only purchase the stock or initiate share buybacks when they perceive that the stock is undervalued. Hence, it makes sense for investors (like You and Me) to do some further research to see if the stock is really a bargain per se.

With these in mind, let’s zoom into 3 interesting companies I’ve cherry picked which have seen insiders buy shares recently.

1. iFAST Corporation Ltd

 

iFAST is present in Hong Kong, Malaysia, China and India. The Group offers access to investment products including unit trusts, bonds and Singapore Government Securities, stocks and exchange traded funds, and insurance products.

It also provides services such as online discretionary portfolio management services, research and investment seminars, financial technology solutions, and investment administration and transaction services to financial advisory firms, financial institutions, banks, multinational companies, as well as retail and high net worth investors in Asia.

On 1st June 2020, its CEO and Chairman Lim Chung Chun purchased 124,000 shares through market transactions. Shares were bought at approximately $1.10 per share. After the acquisition, it increased his percentage of shares held to 22.3%.

As of the latest Q1 2020 report, iFAST’s revenue increased by 41.5% to $38.5 million. Net profit increased by a drastic 132.1% to $3.6 million. Free cash flow was at $2.8 million. Cash balance is at $21 million, which is enough for it to maintain its operations.

iFAST last closed at $1.10, which values it at a P/E ratio of 26.2 and dividend yield of 2.86%.

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My Technical Analysis of the Possible Movements of the STI, and All 30 Blue Chip Companies in the Week Ahead (15-19 June 2020) (Guest Post)

My Technical Analysis of the Possible Movements of the STI, and All 30 Blue Chip Companies in the Week Ahead (15-19 June 2020) (Guest Post)

After the Singapore’s benchmark index, the Straits Times Index (STI), finally commencing a new bull run the week before (where it recovered by more than 20% from its trough of 2,209 points in mid-March), the week that just ended last Friday (12 June) saw the STI returning some of the gains (largely due to the Fed casting a gloomy outlook of the economy in the next 2 years ahead.)

This post was originally posted here. The writer, Lim Jun Yuan is a veteran community member and blogger on InvestingNote, with username known as ljunyuan and has 1195  followers.

After the Singapore’s benchmark index, the Straits Times Index (STI), finally commencing a new bull run the week before (where it recovered by more than 20% from its trough of 2,209 points in mid-March), the week that just ended last Friday (12 June) saw the STI returning some of the gains (largely due to the Fed casting a gloomy outlook of the economy in the next 2 years ahead.)

Particularly, the STI shed 67 points, or 2.4%, to close at 2,684 points (bull run still in-tact as it stayed above 2,650 points). The following is the weekly movement of the STI:
Straits Times Index’s Movements on a Weekly Timeframe

The candlestick pattern resembles a doji – implying an indecision on the direction. However, MACD still remains in an uptrend position. As such, in the week ahead, I feel that the STI may move in either direction – should it be able to break above the resistance line at 2,750 points, then it could advance further from there. Otherwise, it could once again retreat to somewhere around 2,650 points.

Moving on, here’s my technical analysis of each of the 30 blue chip companies listed on the Straits Times Index based on their weekly share price movements to share with you.

Let’s begin…

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Tencent Holdings Limited (SEHK:0700): What You Need to Know Before You Invest (Guest Post)

Tencent Holdings Limited (SEHK:0700): What You Need to Know Before You Invest (Guest Post)

Since my initial post where I shared about how one can go about buying/selling in the Hong Kong Stock Exchange (you can read the post here in case you’ve missed it), there are a couple of readers who asked me on the companies I am looking at.

Tencent eyes new apps to fend off rivals and offset slower growth ...This post was originally posted here. The writer, Lim Jun Yuan is a veteran community member and blogger on InvestingNote, with username known as ljunyuan and has 1176  followers.

Today, I’d like to share with you all the researches I’ve done about the Hong Kong-listed company Tencent Holdings Limited (SEHK:0700), and I hope you’ll gain a better understanding about the company at the end of it:

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Key Updates from EC World REIT’s AGM on 09 June 2020 (Guest Post)

Key Updates from EC World REIT’s AGM on 09 June 2020 (Guest Post)

EC World REIT conducted its virtual annual general meeting this morning (09 June 2020) at 10.00am, and as a unitholder, I have attended the meeting to learn about the latest developments from the top management.

EC World Reit taps market for $630m, Companies & Markets News ...

This post was originally posted here. The writer, Lim Jun Yuan is a veteran community member and blogger on InvestingNote, with username known as ljunyuan and has 1170  followers.

EC World REIT conducted its virtual annual general meeting this morning (09 June 2020) at 10.00am, and as a unitholder, I have attended the meeting to learn about the latest developments from the top management.

The meeting was a short and simple one, lasting approximately 30 minutes, and in this post, you will find key updates of the presentation by Mr Goh Toh Sim, Executive Director and CEO:

Navigating the Covid-19 Pandemic:

  • Business operations in China were strained as a result of the two-month shutdown in the country to contain the spread of Covid-19.
  • However, as at 31 March 2020, tenants in all of EC World REIT’s assets have resumed operations, and business activities in China have largely resumed.

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SEMBCORP INDUSTRIES AND MARINE DEMERGER: WHAT YOU NEED TO KNOW AND WHAT TO DO (Guest Post)

SEMBCORP INDUSTRIES AND MARINE DEMERGER: WHAT YOU NEED TO KNOW AND WHAT TO DO (Guest Post)

The Sembcorp Group of companies finally announced that Sembcorp Industries and Sembcorp Marine will be demerged with the creation of two focused companies. There will be a proposed Sembcorp Marine Rights issue (SCM Issue) in conjunction with the demerger.

Sembcorp Industries and marine demerger: What you need to know and what to do
This post was originally posted here. The writer, Royston Tan is a veteran community member and blogger on InvestingNote, with username known as Royston_Tan.
I have written on both Sembcorp Marine and Sembcorp Industries several times, stating that it will be in the best interest for Sembcorp Industries, the parent of Sembcorp Marine, the former holding a 61% stake in the latter, to divest its stake in Sembcorp Marine to become a pure utilities/energy player that will find favor among investors who do not wish to have exposure to its marine business.

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Hyphens Pharma International Ltd (SGX: 1J5) – Uncovering Healthcare Gems (Guest Post)

Hyphens Pharma International Ltd (SGX: 1J5) – Uncovering Healthcare Gems (Guest Post)

Hyphens Pharma International Ltd (SGX: 1J5) is a pharmaceutical company which focuses on the sales and marketing of specialty pharmaceutical products in key ASEAN countries through exclusive distributorship or licensing agreements with brand principals mainly from Europe and United States. $Hyphens Pharma(1J5.SI)

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 has 2151 followers.

The company was listed on 18th May 2018 about two years ago on the SGX Catalyst. Since then, they have grown over the years and have done reasonably well in the midst of the pandemic outbreak through the product offerings they provide.
I was invited to their recent results briefing which I attended and had a chance to speak and ask my questions directly with their CFO, Lee Wei and CEO, See Wah.
There were also other private investors that attended the call.

Core Businesses
Before we go into that and also run through their recent Q1 FY2020 results, let me give a brief context of their main core businesses.
The Group’s core business comprises of 3 main segments: Specialty Pharma PrincipalsProprietary Brands and Medical Hypermart & Digital.

The Group has exclusive distributorship to sell and distribute specialty products in countries that they have agreements on. The Group also owns well-known proprietary brands ofCeradan® andOcean Health® supplements that I personally consume at home myself.
Our family had also used the nasal spray product,Sterimar® for our children when they were younger.


Financial Results
The Group had a strong run of revenue and profits growth since FY2015 before they went IPO in FY2018.
5 Year CAGR for revenue and profit after tax increase 11.1% and 6.3% respectively.
The number would have been higher if not for the IPO expenses that they incurred in FY2018 that dragged the numbers down by a little bit.
Still, you can see from the past growth trend and after attending the call myself, I am able to appreciate the business model a lot better than before.

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A New Bull Run has Just Started on the STI. What’s Next? (Guest Post)

A New Bull Run has Just Started on the STI. What’s Next? (Guest Post)

Before I begin, a disclaimer – I am not a certified financial advisor, and the views that you’re about to read below are my personal views based on my analysis of the STI which I am sharing for educational purposes only. Also, whatever companies which I may mention in this post below are by no means a recommendation to buy/sell shares in them.

This post was originally posted here. The writer, Lim Jun Yuan is a veteran community member and blogger on InvestingNote, with username known as ljunyuan and has 1134  followers.

If you have been following my weekly technical analysis of the STI, you will know that I have been waiting for the STI to go above 2,650 points – which implies a recovery of 20% from the trough of 2,208 points around mid-March 2020, and a birth of a new bull market.

Yesterday, the STI went up by 88.86 points, or +3.4% compared to the previous day to close at 2,700.39 points – implying the start of a new bull market (the following screenshot is a daily movement of the STI):
Daily Movement of Singapore’s Benchmark Straits Times Index, Where it Crossed Above 2,650 Points at Close Yesterday (03 June 2020)

There are a couple of reasons for the optimism, and one of them is due to the relaxation of the two-month circuit breaker measures with effect from 02 June 2020, as Singapore moves into Phase One of post-circuit breaker. Also, there is optimism that Phase Two (which includes the re-opening of retail shops, and dining in at F&B outlets) may be implemented sooner rather than later (we await for further news to be announced in the middle of June.)

Additionally, there are also discussions to resume essential business travels between Singapore and other countries (and this bodes well for businesses in the aviation industry and hotels.) Personally, I feel that any confirmation as to when Phase Two will start, and also the further lifting of travel restrictions will lead to the STI leaping higher.

Despite all the positivity, however, there may be events which may peg back the climb of the STI – chief of which is the second wave of Covid-19 in the country, leading to the re-implementation of the circuit breaker measures (to prevent that from happening, all of us have a part to play here to adhere to the safe distancing measures, and putting on a mask at all times whenever we are outside of our residence to stem the community spread of the virus), and another being the further deterioration of relationship between the United States and China – which may negative impact trade further straining the growth of the global economy.

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‘What is the Best Price to Buy Shares of this Company?’ (Guest Post)

‘What is the Best Price to Buy Shares of this Company?’ (Guest Post)

Recently, I have been getting quite a number of emails seeking my inputs on the “best price” they should purchase shares of a company. For the benefit of everyone, I would like to share with you my personal opinion on this question in my post today – from the perspective of both a short-term swing trader and a long-term investor.

This post was originally posted here. The writer, Lim Jun Yuan is a veteran community member and blogger on InvestingNote, with username known as ljunyuan and has 1100  followers.

 

To begin, in my personal opinion, there is no such thing as a “best price” you should buy shares of a particular company. Everyone (whether you are a short-term trader or a long-term investor) have their own preferred prices to buy/sell a company’s shares based on their own analyses – which explains why, at any price point, there are buy and sell transactions (because at any buy price, there will be people who feel comfortable to buy, and at the same time, there will also be people who are looking to sell – hence a transaction takes place between the buyer and seller.)

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Thursday 11 June 12PM: LIVE Market Commentary with Terence Wong

Thursday 11 June 12PM: LIVE Market Commentary with Terence Wong

The market is rallying! What is happening and how long will it last?

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Join Azure Capital’s CEO Terence Wong, who will share his updates & views as investment professional with more than 20 years of experience.

Terence has invited CEO of APAC Realty $APAC Realty(CLN.SI) Jack Chua to join him as a special guest. The property agency business has been hit by Circuit Breaker. Hear how Jack is rallying his agents through these challenging times. Is it a good time to enter the stock now? Take this chance to ask Jack anything. He may even give you a few tips on what good properties there are out there.

Register for this webinar now!

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Watch the previous webinars here:
May 17: https://www.youtube.com/watch?v=g7M8WgSpzAU…
May 4: https://youtu.be/Pt5xYa6s3b0…
Apr 20: https://youtu.be/oc47JTU2wwo…
Mar 30: https://www.youtube.com/watch?v=9BuhdzhZdRY&t=438s…
Mar 16: https://www.youtube.com/watch?v=zD9VXxDGNZU&t=1575s…


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