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Hyphens Pharma: 5 Things I like about the company (Guest Post)

Hyphens Pharma: 5 Things I like about the company (Guest Post)

Hyphens Pharma recently announced its 1st quarter 2020 results ended 31 March 2020.

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 853 followers.

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I have to say that its results are pretty impressive. Compared to the previous year, 1Q 2020 revenue came in at 16.1% higher to $31.4 mil and net profits surged 48.6% to $2.12 mil.

Dividends were also hiked up to $0.01 from $0.0055 last year, which translates to a 4% dividend yield based on its share price of $0.25.

There are much more things to cover but let’s check out the company’s profile first.

About Hyphens Pharma

For a quick background, Hyphens Pharma International Limited (SGX: 1J5) is Singapore’s leading specialty pharmaceutical and consumer healthcare group.

With a long history dating back to 1998, Hyphens has a direct presence in 5 ASEAN countries – Singapore (HQ), Indonesia, Malaysia, the Philippines and Vietnam, and is supplemented by a marketing and distribution network covering 6 other markets – Bangladesh, Brunei, Cambodia, Hong Kong, Myanmar and Oman.

The group operates in 3 main segments:

  1. Specialty Pharma Principals – premium quality specialty pharmaceutical products including Stérimar® nasal sprays, Bausch+Lomb eye drops, Vivomixx™, Fenosup® Lidose® and Piascledine®.
  2. Proprietary Brands – Hyphens’ own proprietary range of dermatological products (Ceradan® and TDF® brands) and health supplement products (Ocean Health® brand).
  3. Medical Hypermart & Digital – wholesale of pharmaceuticals and medical supplies in Singapore through Pan-Malayan Pharmaceuticals – a medical hypermart that many healthcare professionals (i.e. doctors) are familiar with.

Next up, I will also share 5 things I like about the company.

#1 Simple and Scalable Business Model

First of all, Hyphens Pharma business model is easy to understand – selling of derma and supplement products. Once you can get things up and running, it’s pretty much a recurring stream of revenue for each product line.

To add on, I like how they acquired Health Supplementbrand –Ocean Health which gives them a strong retail distribution channel.

With that, they can also sell their higher profit margin, proprietary range of dermatological products – Ceradan® in Guardian, Watsons, Unity etc. and TDF® in pharmacies located in hospitals.

Throughexclusive distributorship or licensing and supply agreements with brand principals mainly from Europe and the United States, the group also sells products likeStérimar® nasal sprays, Bausch+Lomb eye drops, in selected markets in the ASEAN region.

#2 Strong Financial Track Record

Apart from the superb 1st quarter 2020 results, the group has been steadily increasing its revenue and profits over the past 5 years as seen below.

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Special Market Report 2020

Special Market Report 2020

What’s next for the stock market in 3-6 months? [Special Report]

With several countries around the world in lockdowns in combined efforts to contain the COVID-19 virus, businesses from virtually all industries are affected.

However, the last few weeks, investors have been seeing a rebound and some countries like Germany and China are easing their lockdowns.

Meanwhile, in Singapore, we see daily surges in virus cases.

Are we in a recovery phase or is bad going to be worse?

Here’s a special report created by the team behind Traders Dashboard.

specialr

Although this report was originally published in February, it details the long-term implications of China’s policy changes on Singapore’s market during this critical coronavirus situation.

Get the Report here.


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Possible Movements of 30 Blue Chip Companies in the Week Ahead(between 13 – 17 April 2020) (Guest Post)

Possible Movements of 30 Blue Chip Companies in the Week Ahead(between 13 – 17 April 2020) (Guest Post)

If you have been following my weekly posts, you probably would be aware that I’ve mentioned before that, should the STI for the week closed above 2,560 points, we could see a possible change in trend.  That said, is an uptrend in sight? In my post today, I’d be sharing with you my personal thoughts on how the STI, as well as all the 30 blue chip companies’ share price may move in the week ahead based on a weekly timeframe…

This post was originally posted here. The writer, Jun Yuan Lim is a veteran community member and blogger on InvestingNote, with username known as ljunyuan and has 858 followers.

If you have been following my weekly posts on the possible movement of STI and all 30 blue chip companies’ share price movements, you probably would be aware that I’ve mentioned before that, should the STI for the week closed above 2,560 points, we could see a possible change in trend (from a downward moving one to an upward moving one.)

When trading for the week ended last Thursday (09 April 2020), STI was at 2,571 points (above the 2,560 points.) That said, is an uptrend in sight? In my post today, I’d be sharing with you my personal thoughts on how the STI, as well as all the 30 blue chip companies’ share price may move in the week ahead (between 13 – 17 April 2020) based on a weekly timeframe…

 

1. Straits Times Index
Straits Times Index’s Movements on a Weekly Timeframe

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3 Key Points To Lookout For When Buying Stocks In A Recession (Guest Post)

3 Key Points To Lookout For When Buying Stocks In A Recession (Guest Post)

A recession is a significant decline in economic activity, lasting more than a few months. But many asked, when to buy stocks? How to better time a market entry in a recession? Well, here are 3 points to guide you along.

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 and has 22 followers.

A Looming Recession? Look at Interest Rates - WSJ

For those looking to time a market entry, some data points on when might be a good time.

WHEN TO BUY STOCKS IN A RECESSION? THE IDEAL TIME TO PICK A BOTTOM

While I don’t recommend trying to time stock purchases with a crystal ball in front of you, especially during a bear market potentially as severe as the one we are currently facing, I will provide some reference point as to when might be the IDEAL time to PICK a bottom and start investing more aggressively in a recession.

This is not going to be from my GUT but instead using historical statistics to time entry. YES, I know that historical performance is never representative of the future trajectory of the stock market, especially one that is seemingly unprecedented as the current one.

Then again, having some maths behind you beats randomly pulling out some FORECAST based on your gut.

Before I disclose “my formula” on when to buy stocks in a recession, the question I like to ask is: Are we already in a recession? Seems to be a no-brainer question especially with more than half the world being on lockdown, right?

WHAT DEFINES A RECESSION?

A recession is a significant decline in economic activity, lasting more than a few months. There is a drop in the following 5 economic indicators:

  1. Real Gross domestic product (GDP)
  2. Income
  3. Employment
  4. Manufacturing
  5. Retail Sales

The current situation seems to tick all the boxes in this category.

A “simpler” definition for a recession is when the GDP growth rate is negative for two consecutive quarters or more. While it might seem simple, there might be some confusion. Should we be measuring GDP growth on a YoY basis (ie compare 1Q20 to 1Q19) or should we be measuring it based on QoQ (ie comparing 1Q20 to 4Q19).

The latter comparing on a QoQ basis is often being termed as a “Technical Recession” within the Singapore context (If you type technical recession in Google, most of the results are related to Singapore).

HOW DOES THE US CALCULATE GDP GROWTH?

In the US, the Bureau of Economic Analysis uses real GDP to measure the US GDP growth rate. Real GDP takes out the effect of inflation. GDP is calculated every quarter but is being annualized. The aim of annualizing is to remove the effect of seasons. If the BEA did not do this, there will always be a spike in the 4Q growth rate due to the holiday seasons.

The BEA provides a formula for calculating the US GDP growth rate which I will not detail much in this article.

IS THE US ALREADY IN A RECESSION?

NEW YORK CITY TIMELAPSE (EMPTY AMERICA) — fullinsight

Depending on which article you read, some might say that the US is already in a recession while others such as this Bloomberg Tracker (last updated March 11) which pegs the probability at “only” 53%, still the highest level since GFC. However, that tracker was done before the jobless claims blew up over the past 2 weeks, now more than 10m, so I reckon that probability ratio will probably be inched up significantly in the next update.

Given the COVID-19 scenario that we are facing, whether we choose to look at GDP growth from a YoY or QoQ basis, it is difficult to argue against the fact that US GDP growth will be negative in 1Q20 and 2Q20.

Even if the COVID-19 issue miraculously resolves itself today, the uncertainty surrounding a possible relapse will result in nations all over the world engaging a protectionist stance that will stymie the global economic recovery process.

My best guess, if I am to look into my crystal ball is that the peak of the COVID-19 issue for developed nations such as US, Italy and Spain will probably be sometime in late-April to early-May by which the focus will then turn to developing nations such as India and Indonesia where cases are just beginning to ramp up.

Developed nations will continue to shut off their borders to foreigners for fear of a relapse, just like what China is currently doing. The V-shape recovery which many people are hoping for is probably not going to happen in such a scenario.

HOW BAD IS THIS RECESSION GOING TO BE?

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Why Did I Add UOB (SGX:U11) to My Long-Term Investment Portfolio (Guest Post)

Why Did I Add UOB (SGX:U11) to My Long-Term Investment Portfolio (Guest Post)

Some insights about UOB ’s historical financial performance, along with its dividend payouts to shareholders over the years and many more.

This post was originally posted here. The writer, Jun Yuan Lim is a veteran community member and blogger on InvestingNote, with username known as ljunyuan and has 797 followers.

 UOB launches high street branch model at Faber House targeting ...

Why Did I Add UOB (SGX:U11) to My Long-Term Investment Portfolio

With my investment in UOB (SGX:U11) on 06 March 2020 at my intended entry price of S$23.26 (based on this entry price, and a dividend payout of S$1.30/share in FY2019, my dividend yield is 5.6%), I now have all 3 Singapore banks, plus another financial institution in Hong Leong Finance (SGX:S41) in my long-term investment portfolio.

In my post today, I would like to share with you reasons why I’ve invested in the bank…

 

Brief Introduction to United Overseas Bank

Before I talk about the bank’s historical financial performance, along with its dividend payouts to shareholders over the years, let me first a quick introduction about the bank.

Besides Singapore, UOB has more than 500 branches and offices in 19 countries (Australia, Brunei, Canada, China, France, Hong Kong, India, Indonesia, Japan, Malaysia, Myanmar, Philippines, Singapore, South Korea, Taiwan, Thailand, United Kingdom, United States of America, and Vietnam.)

 

Historical Financial Performance of UOB over the Past 10 Years

Before I put my hard-earned money into any company, I will need to make sure the company fulfils some criteria – one of which is an improving set of financial results reported by the company over the years.

In this section, I will be sharing some of the key financial statistics reported by UOB over a period of 10 years (between FY2010 and FY2019):

Net Interest Income, Net Fee & Commission Income, and Other Non-Interest Income:

UOB’s “Total Income” comprises of 3 business components – (i) Net Interest Income, (ii) Net Fee & Commission Income, and (iii) Other Non-Interest Income.

Let us now take a look at the performances of these 3 business components between FY2010 and FY2019:

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Koufu Limited (SGX:VL6) – My Analysis of the F&B Company (Guest Post)

Koufu Limited (SGX:VL6) – My Analysis of the F&B Company (Guest Post)

Some insights for Koufu business, its financial results between FY2018 and FY2019, dividend payout history, catalysts and threats which I feel may positively or negatively affect the company’s growth ahead, and finally, its current vs. historical valuations.

This post was originally posted here. The writer, Jun Yuan Lim is a veteran community member and blogger on InvestingNote, with username known as ljunyuan and has 797 followers.

Photos for Cookhouse by Koufu - Yelp

I have received a number of requests from fellow community members in InvestingNote over the past couple of months asking me to do a company analysis of Koufu Limited (SGX:VL6).

In my writeup about the F&B company today, you’ll learn more about the companies businesses, its financial results between FY2018 and FY2019, dividend payout history, catalysts and threats which I feel may positively or negatively affect the company’s growth ahead, and finally, its current vs. historical valuations to find out whether or not at its current share price, Koufu is considered cheap or expensive.

Let’s get started…

A Brief Introduction to Koufu Limited

Koufu is a brand familiar to Singaporeans – the company operates foodcourts/coffeeshops under its namesake brand. At the time of writing, there are a total of 37 Koufu foodcourts in Singapore.

Apart from its namesake foodcourts, the company also operates foodcourts/coffeeshops under the following brand names (with the number of outlets at the time of writing in brackets):

  • Cookhouse by Koufu (5 outlets)
  • Rasapura Masters (1 outlet)
  • Fork & Spoon (2 outlets)
  • Happy Hawkers (18 outlets)
  • Gourmet Paradise (2 outlets)

The company has also businesses in the following:

F&B Kiosks & Stalls:

  • R&B Tea (27 outlets)
  • 1983 – A Taste of Nanyang (3 outlets)
  • Supertea (1 outlet)

Cafes & Restaurants:

  • 1983 – Coffee & Toast (3 outlets)
  • elemen 元素 (4 outlets)
  • Grove 元素 (1 outlet)

Shopping Mall:

  • Punggol Plaza – a 4-storey development comprising about 50 retail outlets. The mall is managed by Abundance Development Pte Ltd, a subsidiary of Koufu Pte Ltd

Overseas:

Besides Singapore, Koufu also have business operations in Malaysia and Macau, where they operate under the following brand names (with the number of outlets at the time of writing in brackets):

  • 1983 – A Taste of Nanyang (2 outlets in Macau)
  • Koufu (2 outlets in Macau)
  • R&B Tea (1 outlet in Malaysia, 1 outlet in Macau)

 

Financial Performance of Koufu Ltd between FY2018 and FY2019

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The Hammer Candlestick Trading Strategy Guide (Guest post)

The Hammer Candlestick Trading Strategy Guide (Guest post)

The Hammer candlestick pattern is a powerful entry trigger. If you were to trade it, your stop loss is at least the range of the Hammer (or more). But won’t it be great if you can reduce the size of your stop loss and improve your risk to reward?

This post was originally posted here. The writer, Rayner Teo is a veteran community member and blogger on InvestingNote, with username known as Rayner and has 310 followers.

According to most textbooks:

Whenever you spot a Hammer candlestick pattern, you should go long because the market is about to reverse higher.

And that’s what you do.

But the next thing you know…

The price immediately reverses and you get stopped out for a loss.

And you wonder to yourself:

“Wait a minute, isn’t a Hammer candlestick a bullish signal?

“Why did the market reverse against me?”

“What’s going on?”

Well, let me tell you a secret…

A Hammer candlestick pattern doesn’t mean jackshit (and I’ll explain why later).

But first, let’s understand what a Hammer candlestick pattern is about…

What is a Hammer candlestick pattern?

A Hammer is a (1- candle) bullish reversal pattern that forms after a decline in price.

Here’s how to recognize it:

  • Little to no upper shadow
  • The price closes at the top ¼ of the range
  • The lower shadow is about 2 or 3 times the length of the body

And this is what a Hammer means…

  1. When the market opens, the sellers took control and pushed price lower
  2. At the selling climax, huge buying pressure stepped in and pushed price higher
  3. The buying pressure is so strong that it closed above the opening price

In short, a hammer is a bullish candlestick reversal candlestick pattern that shows rejection of lower prices.

Now, this is important.

Just because you see a Hammer candlestick doesn’t mean you go long immediately.

Here’s why…

The truth about Hammer candlestick (that most gurus don’t even know)

Are you ready?

Here you go…

  1. A Hammer is usually a retracement against the trend
  2. The Hammer doesn’t tell you the direction of the trend
  3. The context of the market is more important than the Hammer

Let me explain…

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Singapore Airlines Ltd (SGX: C6L) Is In Deep Trouble And Rights Issue Call Is Imminent (Guest Post)

Singapore Airlines Ltd (SGX: C6L) Is In Deep Trouble And Rights Issue Call Is Imminent (Guest Post)

The Covid-19 situation has hit the aviation industry really hard and in particular the airlines, SIA, since they are highly capitalized business which needs constant cashflow to fund their operating costs, capex and fixed costs. In the scenario where they have to cut capacity like where we are in this situation now, the company may be able to “save” on their operating costs since they do not have to incur charges like handling and ground charges that are related to the operating business.

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 2068+ followers.

Image result for sg airline

Singapore Airlines Ltd (SGX: C6L) Is In Deep Shit And Rights Issue Call Is Imminent

The Covid-19 situation has hit the aviation industry really hard and in particular the airlines since they are highly capitalized business which needs constant cashflow to fund their operating costs, capex and fixed costs.

In the scenario where they have to cut capacity like where we are in this situation now, the company may be able to “save” on their operating costs since they do not have to incur charges like handling and ground charges that are related to the operating business.

But, they do have to continue paying for parking charges to the airport, levies as well as fixed costs such as salaries and rental that will continue to bleed the business.

Cashflow Simulation Run
I’ve run a simulation run where the left hand side shows their latest Q3 results for the year ending 31 Dec 2019, while the middle portion reflects what the situation is today. On the right side, I’ve accounted for movement that is related to cashflow, so things like depreciation is taken out of context because they are non-cashflow related items.

The middle portion reflects the current scenario we have today.

For example, the topline sees a 95% capacity cut which was announced just a few days ago since Singapore is on semi-lockdown situation. Consequently, I’ve adjusted the same for operating costs related such as fuel, inflight meals and handling charges.

For staff costs, I’ve used a 20% haircut across the payroll while for other fixed costs I’ve taken a 50% haircut.

The resulting loss coming in from this simulation is a negative $(1,998m) for the quarter. If we divide this by months, it means incurring a net loss of $(666m) / month.

What this means from a cashflow point of view is that should the situation prevails, the company is burning approximately $1,461m in cash every quarter, or $487m every month.

Now, this might look okay if you are in a good standing order in terms of your balance sheet but let’s see what they have today.

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Top 4 Reasons You Should Not Panic As An Investor (Guest Post)

Top 4 Reasons You Should Not Panic As An Investor (Guest Post)

I know your portfolio is in a deep sea of red, but what I want to tell you is this – you’re not alone. Many investors are also suffering from a huge unrealised loss in their portfolio, myself included (as at time of writing, my long-term investment portfolio is down by 20.0%.) And in case you might be thinking I am a “veteran” in investing, I only have about 2+ years of experience as a full-time retail investor, and is my first time I’m experiencing a stock market decline like this.

This post was originally posted here. The writer, Jun Yuan Lim is a veteran community member and blogger on InvestingNote, with username known as ljunyuan and has 736 followers.

 

On Monday evening (16 March 2020), Malaysia’s Prime Minister Muhyiddin Yassin announced the lockdown of Malaysia for a period of 14 days (from 18 March to 31 March) in a bid to stem the further spread of Covid-19 in the country.

Almost immediately, I read about news of fellow Singaporeans rushing to the supermarkets (even though its already late into the evening) to sweep them clean of fresh produces out of panic that supplies in Singapore may be cut as a result of the lockdown in Malaysia (as many of our fresh produces are imported from the country.)

I see some parallels happening in the stock market as well, especially over the past two weeks, where I see many investors emptying their portfolios and rushing for the exit doors out of fear.

I know your portfolio is in a deep sea of red, but what I want to tell you is this – you’re not alone. Many investors are also suffering from a huge unrealised loss in their portfolio, myself included (as at time of writing, my long-term investment portfolio is down by 20.0%.) And in case you might be thinking I am a “veteran” in investing, I only have about 2+ years of experience as a full-time retail investor, and this is the first time I’m experiencing a stock market decline like this (I hope that after hearing this, it makes you feel better.)

Before you make any rash decisions, I suggest you calm yourself down, and ask yourself the following 4 questions:

1. Why are You Investing in the First Place?

Image result for investing

I’d like you to recall the moment you make the commitment to invest – why did you make the decision?

Some may decide to invest because they want to build a high yielding portfolio (with yields higher than their CPF Special Account), some may be more focused on the eventual capital gain they could possibly get from their investments, while for some, it may be a mixture of both.

So, which group do you belong to?

 

2. Why did You Choose to Invest in those Companies in Your Current Portfolio?

I certainly hope your answer to this question is not, “because of hearsay.”

Prior to investing your hard-earned money in a company, I really hope that you have done a thorough research about it, and have a good knowledge of the company’s businesses, financials, debt profile, dividend payouts, etc. well enough before you make the eventual decision to invest in it.

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Trading Profitably In Extremely Volatile Market Conditions [LIVE WEBINAR]

Trading Profitably In Extremely Volatile Market Conditions [LIVE WEBINAR]

Stock markets around the globe are tumbling.

Here’s how much the S&P 500 dropped since 2 months ago:screen-shot-2020-03-16-at-5-08-09-pm

The STI is also not spared:

screen-shot-2020-03-16-at-5-06-14-pm

Did it look obvious enough that the markets would’ve plunged so much?

Or did the thought of catching the bottom crossed your mind more than once?

If either or both these thoughts have ever crossed your mind, you’re not alone.

What if there was a systematic way of approaching the markets?

To help you with that, we’ve veteran trader Collin Seow, an ex top-tier remisier in Phillip Securities for 12 years, a qualified Chartered Portfolio Manager (CPM) holding a Certified Financial Technician (CFTe) qualification and a member of MENSA Singapore, who will show you how he is Trading Profitably In Extremely Volatile Market Conditions.

collin

In this 2 hour LIVE webinar, Collin Seow will be covering on the 3 immensely powerful combination strategies that you can use immediately, especially during such volatile markets:
✔ Swing Trade Strategy
✔ GMMA Strategy
✔ The K-Wave Indicator

Also, engage in Q&A with Collin during this exclusive live webinar.

Attend anywhere from the comforts of your own home or office.

The full recording of this entire webinar will also be given to you.

Date & Time: Wednesday March 25th, 2020, 7:00 – 9.00PM
Venue: Watch Online

button_register-here


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