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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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How to Get Rich (Realistically) and Stay Wealthy (Guest Post)

How to Get Rich (Realistically) and Stay Wealthy (Guest Post)

The majority of the rich who got really wealthy took calculated risks. They also had the foresight to see things that a lot of us would not be able to see.

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This post was originally posted here. The writer, Kyith is a veteran community member and blogger on InvestingNote, with username known as Kyith and 800+ followers.

Rich people surround themselves with people more competent then them in areas they are not good at.

Most of the time, the wealthy was also able to execute their plans very well. You will also find them having the ability listen to others when it is time to listen. But be steadfast when they needed to.

I got very little of these traits.

And maybe that is why I am not rich (by today’s much higher standards). I worked in a firm where we steward our client’s wealth carefully, so I know where I stand in the spectrum of people who are rich and poor.

But I do think that I have enough wealth for myself though. Enough for me to have a conversation with you on this topic.

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[Event Recap] Active Traders Club Gathering For June on Risk Management

[Event Recap] Active Traders Club Gathering For June on Risk Management

We just had our Active Traders Club Gathering yesterday where the theme was Risk. Top traders shared on their assessment to current markets’ risk, introduction of a market timing indicator, doing proper risk analysis and how to use stop-loss effectively.

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This time round, we have invited a special guest speaker, Alvin Li, who is a derivatives expert from Hong Kong.

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Buy & Hold (Guest Post)

Buy & Hold (Guest Post)

I been holding the current 9 stocks since 2016.
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This post was originally posted here. The writer, theintelligentinvestor is a veteran community member on InvestingNote, with username known as TII and 1100+ followers.

While there were some stocks that I have bought and sold off, most were done during 2016. There were hardly any position taken after 2017 so we can assume my portfolio as the aggregate of the 9 stocks and also it can be considered it as a buy & hold strategy with the holding period of 3.5 years.

Stocks.cafe provides the daily data of the portfolio time-weighted returns vs the STI ETF or ES3 which can be downloaded to Excel. I have plotted 2 graphs, the top is the my portfolio TII (in green) vs STI ETF (in Blue); the bottom is the difference between the 2 top lines.

The top graph first. The STI, since 2016, has moved within a window of -10% to +32%. The 2016 was quite flat; 2017 was a good year up 20%; 2018 was poor down -7%; and 2019 YTD is up 9%. The first point I want to make is if you are trying to trade during these 3.5 years which quite a lot of world events had happened. Well, you can try to hop in Feb 2016, enjoy the 2 years ride and get off in Mar 2018 and wait patiently for 9 months and get in back again around Dec 2018. Sounds simple but many will know it is not easy. When to get in, when to get out, how long to wait during in and out periods? There are just too many variables and moving parts to make sense of.

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