A Happy New Year to all investors,

Here is my top 5 pick for stocks to AVOID for buy and hold.

1)$SIA(C6L.SI)

The aviation industry is going through a hard reset.  While vaccines are starting to be available, it will take many many more months (infection number still raising)  for all countries to gain herd immunity.  A likelihood of SIA doing more rounds of fund raising which will dilute existing shareholders.

2) $First Reit(AW9U.SI)

For REITs that depend on master leases it is vital for investors to check the financial strength of the counter party.  If the tenant has weak financials doesn’t matter how the lease is restructured or how much $$ the REIT raise.  A responsible REIT manager will know when it is time to liquidate the properties and return $$ to shareholders before more value destruction happens.

3) $SingTel(Z74.SI)

Having won the digital bank license it has to cater to a huge investment to compete with local banks.  The short to medium term impact is negative and longer term impact will depend on how the digital bank perform.  Its traditional revenue sources are being disrupted from all angles and its overseas telecom investments are either facing intense price competition or being disrupted.

4) $SPH(T39.SI)

As a Straits Times and Business Times paid subscriber I find it disturbing to still see advertisements being push to its reader.  I a subscriber to other reputable news website and non have actually try to milk their reader in such a way.  Management need to realise gone are days where people pay to buy newspapers and advertisers pay for ads at the same time.

5) $CityDev(C09.SI)

Boardroom struggles are a sign that all is not well.  The stock prices has stagnate over the decade which points to little value creation by management. If investment into China turn sour management will have a hard time answering to shareholders.

Once again, this article is a guest post and was originally posted on InvestingNote.

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