10 Global Internet Giant Stocks (FANG-MAN-ATM) (龙头老大)

World has the largest IPO of all time with listing of Ant Finance (Ant Group, HKEX: 6688) on 5 Nov 2020, right after US presidential election but some retail investors are disappointed of could not get a piece of pie.  In fact, there are many proven technology giant stocks globally with great potential ahead, there is no need to invest in an emerging technology stock during IPO.

In this article, you will learn from Dr Tee on 10 US and Hong Kong Internet Giant Stocks (FANG-MAN-ATM) for longer term investing and / or short term trading with impact of COVID-19 crisis. Bonus for readers who could read every words of the entire article, learning alternative way of investing in all these giant stocks with limited capital.

1) FANG Stocks

– Facebook (NASDAQ: FB)

– Amazon (NASDAQ: AMZN)

– Netflix (NASDAQ: NFLX)

– Google (Alphabet) (NASDAQ: GOOGL)

2) MAN Stocks

– Microsoft (NASDAQ: MSFT)

– Apple (NASDAQ: AAPL)

– Nvidia (NASDAQ: NVDA)

3) ATM Stocks

– Alibaba (HKEX: 9988 / NYSE: BABA) & Ant Group (HKEX: 6688)

– Tencent (HKEX: 700)

– Meituan (HKEX: 3690)

Over a life time, an investor may experience a few generations of technology evolutions about every 20 years.  In 1980s, with invention of computer, Microsoft (Windows) and Apple (Mac) became popular and they manage to extend the company lifespan with next generation applications such as clouding computing and gaming industry, supporting new comer such as Nvidia. MAN stocks (Microsoft, Apple, Nvidia) are mainly supported by more internet users with computers and mobile devices.

In 2000s, with popularity of internet, FANG stocks (Facebook, Amazon, Netflix, Google) become highly demanded with disruptive technologies with strong global network. In 2020s, with support of high-speed 5G mobile applications among high population network in China, ATM stocks (Alibaba, Tencent, Meituan) are gaining momentum, becoming the Top 3 largest component stock of Hong Kong Hang Seng Tech Index.  As of today, all 10 giant internet stocks (FANG-MAN-ATM) with different length of company history, are leading in world with internet era.

It is hard to invest the same technology stock for life as new or disruptive technology could overthrow the existing market leaders, past examples are Yahoo, Motorola, Nokia, etc.  Therefore, technology stock investors need to know the stage of technology of a business, emerging, mature or declining.  In general, growth investing and / or momentum trading strategies could be more suitable for 10 FANG-MAN-ATM stocks.

Singapore technology stocks are mostly small cap, hard to have scale of economy and networking efficiency to compete with these 10 FANG-MAN-ATM stocks.  Just Netflix (smallest of 10 giant internet stocks) alone is about 40 times larger than the total market cap of all 88 technology stocks in Singapore (investor could still focus only on a few little giant stocks in Singapore for investing):

Accrelist Limited (SGX: QZG), Acma Limited (SGX: AYV), Advanced Systems Automation (SGX: 5TY), Adventus Holdings (SGX: 5EF), AEI Corporation (SGX: AWG), AEM Holdings (SGX: AWX), Allied Technologies Limited (SGX: A13), Amplefield Limited (SGX: AOF), Asian Micro Holdings (SGX: 585), ASTI Holdings (SGX: 575), Avi Tech Electronics (SGX: BKY), Ban Leong Technologies (SGX: B26), CDW Holding (SGX: BXE), CEI Limited (SGX: AVV), CFM Holdings (SGX: 5EB), Chuan Hup Holdings (SGX: C33), CPH Limited (SGX: 539), Creative Technology (SGX: C76), Datapulse Technology (SGX: BKW), Dragon Group International (SGX: MT1), Dutech Holdings (SGX: CZ4), Duty Free International (SGX: 5SO), Ellipsiz Limited (SGX: BIX), Excelpoint Technology (SGX: BDF), Frencken Group (SGX: E28), Global Invacom Group (SGX: QS9), Global Testing Corporation (SGX: AYN), GP Industries (SGX: G20), Grand Venture Technology (SGX: JLB), HGH Holdings (SGX: 5GZ), Hu An Cable Holdings (SGX: KI3), ICP Limited (SGX: 5I4), Jadason Enterprises (SGX: J03), JEP Holdings (SGX: 1J4), Karin Technology Holdings (SGX: K29), Ley Choon Group (SGX: Q0X), Libra Group (SGX: 5TR), Manufacturing Integration Technology (SGX: M11), Maruwa Yen1k (SGX: M12), MeGroup Limited (SGX: SJY), Micro-Mechanics Holdings (SGX: 5DD), Plastoform Holdings (SGX: AYD), Polaris Limited (SGX: 5BI), Powermatic Data Systems  (SGX: BCY), Renaissance United (SGX: I11), Serial System (SGX: S69), SEVAK Limited (SGX: BAI), Shinvest Holding (SGX: BJW), Sunright Limited (SGX: S71), Sunrise Shares Holdings (SGX: 581), SUTL Enterprise (SGX: BHU), Thakral Corporation (SGX: AWI), The Place Holdings (SGX: E27), Trek 2000 International (SGX: 5AB), TT International (SGX: T09), UMS Holdings (SGX: 558), Valuetronics Holdings (SGX: BN2), Venture Corporation (SGX: V03), Willas-Array Electronics Holdings (SGX: BDR), World Precision Machinery (SGX: B49), Alpha Energy Holdings (SGX: 5TS), Alset International (SGX: 40V), Artivision Technologies (SGX: 5NK), Asiatravel.com Holdings (SGX: 5AM), A-Smart Holdings (SGX: BQC), Azeus Systems Holdings (SGX: BBW), Boustead Singapore Limited (SGX: F9D), Captii (SGX: AWV), Challenger Technologies (SGX: 573), CSE Global (SGX: 544), DISA (SGX: 532), International Press Softcom (SGX: 571), ISDN Holdings (SGX: I07), Keppel DC Reit (SGX: AJBU), Koyo International (SGX: 5OC), M Development (SGX: N14), Mapletree Industrial Trust (SGX: ME8U), New Silkroutes Group (SGX: BMT), New Wave Holdings (SGX: 5FX), PEC (SGX: IX2), Plato Capital (SGX: YYN), Procurri Corporation (SGX: BVQ), Rich Capital Holdings (SGX: 5G4), Silverlake Axis (SGX: 5CP), SinoCloud Group (SGX: 5EK), Stratech Group (SGX: BRR), Synagie Corp (SGX: V2Y), YuuZoo Networks Group Corp (SGX: AFC).

In fact, STI stock Index is much weaker than US stock index (S&P500 and NASDAQ) and Hong Kong stock index (HSI) mainly due to lack of giant growth technology stocks (such as 10 FANG-MAN-ATM stocks which are US and Hong Kong stock index main component stocks), having only 1 cyclic technology stock (Venture) in 30 STI index component stocks:

Ascendas Reit (SGX: A17U), CapitaLand (SGX: C31), CapitaLand Mall Trust (SGX: C38U), City Development (SGX: C09), ComfortDelGro (SGX: C52), Dairy Farm International (SGX: D01), DBS Bank (SGX: D05), Genting Singapore (SGX: G13), Hongkong Land (SGX: H78), Jardine Cycle & Carriage (SGX: C07), Jardine Matheson Holdings JMH (SGX: J36), Jardine Strategic Holdings JSH (SGX: J37), Keppel Corp (SGX: BN4), Keppel DC Reit (SGX: AJBU), Mapletree Commercial Trust (SGX: N2IU), Mapletree Industrial Trust (SGX: ME8U), Mapletree Logistics Trust (SGX: M44U), OCBC Bank (SGX: O39), SATS (SGX: S58), Sembcorp Industries (SGX: U96), Singapore Airlines (SGX: C6L), Singapore Exchange (SGX: S68), Singtel (SGX: Z74), ST Engineering (SGX: S63), Thai Beverage (SGX: Y92), UOB Bank (SGX: U11), UOL (SGX: U14), Venture Corporation (SGX: V03), Wilmar International (SGX: F34), YZJ Shipbldg SGD (SGX: BS6).

Therefore, an investor may need to consider to balance own stock portfolio, balance the slow growth / dividend stocks / REITs (Singapore, Malaysia, etc) with other global giant stocks (growth / momentum), including but not limited to 10 FANG-MAN-ATM stocks.

From the table sorted below for 10 FANG-MAN-ATM stocks, all are profitable (10 / 10 stocks were making money in businesses last year) with double digit ROE (except for Meituan which is still at emerging phase of business, focusing more on revenue growth instead of net profit. So, comparison for 10 giant stocks could be based on relative growth rate, eg. high earnings growth of Netflix, Amazon, Alibaba, Tencent, etc, have helped to support the rising momentum of share prices in shorter duration during the recovery from COVID19 pandemic with better business performance due to global lock down.

Most 10 FANG-MAN-ATM stocks don’t pay dividend (only 4 / 10 stocks pay dividend). Even if they do, for example, Microsoft with only about 1% dividend yield (need to offset 30% withholding tax, left 0.7%), is only a little bonus comparing with the high capital gains in share prices.

All 10 FANG-MAN-ATM (10 / 10) have Price-to-Book ratio ($ / NAV = PB) > 1 with premium over asset but this consideration is secondary for growth investing with asset light business. The ability to make more money in future is far more important buying cheaply (undervalue investing). Therefore, business growth is much more important than undervalue price to sustain the share prices with capital gains in longer term for technology stocks.

All 10 FANG-MAN-ATM stocks are high growth giant stocks, most of them are at moderate high optimism, mainly due to rising share prices, achieving new high after recovery from COVID-19 stock crisis. The main risk of high growth stocks are sustainable growth rate. Company such as Facebook is getting slower in growth rate due to global market saturation compared to earlier phase. 

Most FANG-MAN-ATM stocks are cyclical in nature, some of them (eg. Microsoft and Apple) have gone Year 2020 dotcom bubble when technology sector was speculated to extremely high prices before falling down over 50%.  Year 2020 and later years have potential to be version 2.0 of dotcom bubble when stock market is filled with greed to push up technology stocks (mainly represented by NASDAQ stock index) to another extreme high optimism level.

It is relatively safer to position with trend-following strategy either with short term momentum trading or long term growth investing for 10 FANG-MAN-ATM stocks. This would help to minimize the high risk if version 2.0 of dotcom may happen one day as next global financial crisis, especially in US with high optimism S&P500 and NASDAQ stock markets.

For retail investors with limited capital may not able to invest in expensive giant stock such as Amazon (over US$3000/share) and Google (Alphabet, over US$1500/share).  Recent stock split of Apple (1 to 4) has helped to make the stock more affordable to investors with small capitals. However, some investors may hope to form a diversified stock portfolio of 10 FANG-MAN-ATM and other stronger internet / technology stocks with limited capital.

A simple solution is to invest in Exchange Traded Fund, ETF (possible with capital of only $1000) with these technology giant stocks, eg. through Invesco QQQ ETF which follows NASDAQ Top 100 stocks (about 50% weightage are FANG-MAN stocks). For ATM stocks, possible to consider China stocks ETF such as KWEB or MSCI China ETF (MCHI ETF, about 40% weightage are ATM stocks).

It is important for a stock investor to have a balanced stock portfolio in various sectors (eg. technology, property / REIT, banking & finance, F&B, healthcare, oil & gas, commodity, etc) to minimize risk in each sector with unique market cycle.  High concentration of stock portfolio (eg. in 10 FANG-MAN-ATM internet stocks) would create high volatility which may be beyond risk tolerance level of an investor.  Knowing one’s personality is key for success in stock investing or trading, not simply following “tips” by anyone to take action.

===================================

There are over 1500 giant stocks in the world based on Dr Tee criteria, choice of 10 Dream Team giant stocks have to align with one’s unique personality, eg. for shorter term trading (eg. momentum or swing trading) or longer term investing (cyclic investing, undervalue investing or growth investing). Readers should not just “copy and paste” any stock (What to Buy, When to Buy/Sell) as successful action taking requires deeper consideration (LOFTP strategies – Level / Optimism / Fundamental / Technical / Personal Analysis) which you could learn further from Dr Tee Free 4-hr Webinar.

Drop by Dr Tee free 4hr webinar (learning at comfort of home with Zoom) to learn how to position in global giant stocks during COVID-19 stock crisis with 10 unique stock investing strategies, knowing What to Buy, When to Buy/Sell.

Zoom will be started 30 min before event, bonus talk (Q&A on any investment topics from readers) for early birds. There are many topics we will cover in this 4hr webinar, Dr Tee can have more time for Q&A if you could stay later after the webinar.

Dr Tee will cover over 20 case studies, Singapore giant stocks, eg. CapitaLand Mall Trust (SGX: C38U), Singapore Exchange (SGX: S68), Keppel Corp (SGX: BN4), Top Glove (SGX: BVA), Jardine Matheson Holdings JMH (SGX: J36), Vicom (SGX: WJP) and many others, Malaysia giant stocks, Hong Kong giant stocks and US giant stocks, both long term investing and short term trading.

There are limited tickets left for this 4hr free webinar, please ensure 100% you could join when register: www.ein55.com