Dr Tee (Ein55)

Winter is Coming – 3 Strategies for Global Stock Market Crisis

Posted on July 3, 2019 Written by Dr Tee (Ein55)

For fans of Game of Thrones, they are familiar with “Winter is Coming” as there are signs before the crisis in kingdom. However, for fans of stock market, it is important to know how to prepare for coming winter (global economic recession) after a long summer of bullish stock market over 10 years since recovery from the last global stock market crisis in year 2009.

Trump has been trying to prolong the bull run with various policies, eg. reduction of corporate tax from 35% to 21%, creating more jobs in US, trade war with China and the rest of the world for quick gains of US, etc. Unfortunately, economy usually behaves in a cyclic manner due to over-supply or over-demand at different stages of economy, requiring years to get back to normal again after reaching the extreme greed or fear in market emotions. When we see summer in US now (overheated economy with the lowest unemployment rate of 3.6% in 49 years in US, historical high of S&P500 index at 2973 points recorded recently, inverted bond yield, etc), we know “winter is coming” for global stock market crisis, the coldness of potential financial crisis would spread globally from US, the No 1 economy with more than 50% global stock value.

Here are 3 ways to prepare for global stock market crisis (financial winter time) for 3 fans of stock market: long term investors, market cycle investors and short term traders.

1) Stock Market Crisis for Long Term Investors
It is possible for long term investors to ignore the up and down in prices, including potential winter time (global stock market crisis) because the investors have prepared well in advance when investing many years ago, there is no need to exit at all during market correction. The conditions for long term or even lifetime investing (buy and hold permanently) are the stocks invested should be over a portfolio of at least 10 strong fundamental stocks at low optimism price, defensive in prices (less volatility with strong economic moat) with consistent growth in both share prices and businesses for capital gains, as well as some dividend payment (>2% dividend yield) as bonus, exceeding the bank interest rate.

This strategy requires knowledge of super giant stocks (what to buy from <5% of selected global stocks), ability to take action during the coldest winter (Level 4 – global financial crisis) and tremendous patience and calm to hold through a long term or even throughout the lifetime (continue to hold as long as quarterly or yearly review, confirming it is still a giant stock)

2) Stock Market Crisis for Market Cycle Investors
Market cycle investors integrate the best of investing (buy strong fundamental stocks) and trading (buy low sell high), leveraging on economic cycles (typically over 5-10 years) to safely maximize the return with natural investment clock.

This strategy requires a regional (Level 3) or global (Level 4) financial crisis to create tremendous fear in the stock market for majority of investors and traders to sell low unwillingly or willingly (over 50% discount in share prices at low optimism). However, a financial crisis could be a real crisis for weak businesses which may not last through the winter during economic recession (potential bankruptcy). Therefore, it is important to invest in a portfolio of at least 10 giant stocks with strong business fundamental, especially for stocks in cyclic sectors such as banking & finance, property, technology, airline, industrial, etc.

3) Stock Market Crisis for Short Term Traders
Short term traders could still enjoy the hot summer, eg. current bullish stock market to buy high sell higher with momentum trading or swing trading. This group of stock market fans could react faster to the changes in stock market, especially when it turns direction from bull to bear. In fact, short term traders could participate in all stages of stock market, firstly buy up in possible last phase of bullish stock market, shorting in bearish stock market crisis, finally buy up again when stock market is reborn again one day. However, the emotional control is the most critical (greed, fear, regret, etc) for stocks traders to be successful.

This strategy requires short term positioning (from weeks to months), successful traders need to follow proven trading plan to enter with bullish signals and exit when there are confirmed bearish signals (eg. trending down in share prices), continue to hold (position trading) when there are no major changes. Although short term stock trading may not require strong fundamental stocks as business may not have drastic changes in weeks or months, it is still useful for traders to consider profitable business (when long a stock) as both good fundamental and market greed could contribute to higher share prices in a bullish short term stock market.

Since summer is here and winter is coming, have you prepared for this rare opportunity? Any of the 3 fans above could profit from stock market crisis but should know the exact strategy (What to Buy, When to Buy/Sell). Don’t be ignorant with no action taken as there is great opportunity cost for missing in action in stock market crisis. Learn from Dr Tee with free 4hr stock investment course, preparing to profit from stock market crisis.

Dr Tee Investment Course (Stock, Property, Commodity, Forex, Bond)

Filed Under: Macroeconomy, Market Cycle Investing, Market Outlook Tagged: stock market crisis

Disruptive Technology for Long Term Lifetime Investing

Posted on June 20, 2019 Written by Dr Tee (Ein55)

It is possible for disruptive technology (eg. virtual bank, cryptocurrencies, etc) to change the banking & finance but it won’t be overnight, many major conventional banks are still top choices for longer term or even lifetime investing (need to compare price vs value before entry). SPH has shown weakness since 10 years ago (declining number of newspaper readers and earning), there is enough time to exit from stock investing if one day conventional banks are affected. These blue chips are likely to prepare in advance as well, see how Comfortdelgro adapts to dynamic pricing to fight against Grab Taxi.

Technology stocks are generally not suitable for longer term passive investing (unless monitor both share prices and businesses regularly) as new disruptive technology could change the entire sector, a business could be out-dated if not keep up with R&D. See the changes of mobile phone leaders over the past few decades from Motorola to Nokia to Samsung / Apple / Huawei … how long the BAT-FAANG (Baidu, Alibaba, Tencent, Facebook, Amazon, Apple, Netflix, Google) could continue to dominate the market?

Every generation (about 25 years) has its own unique sector for longer term investing due to business moat during this period. In general, property / bank / utility stocks have longer lasting business and economic moat but careful choice of stocks are critical and understanding the sector cycle to compare share price vs business value, applying strategies of Buy Low Sell High, or Buy & Hold (until value is diminishing one day).

In short, monitor the quarterly or yearly business performance, especially for longer term or lifetime investing, don’t just buy stock and hold for lifetime. How to extend decade of past performance to project into lifetime investing, assuming no challenger for next few decades? Eg, we could see the trend of declining soft drink (carbonated) over the decades, Coke has to make changes or diversify into other products, may not be the same good stock for long term investing as decades ago when Buffett was younger. Similarly, number of smokers (% population) are declining, therefore tobacco / cigarette stock may not be suitable for longer term holding.

Sign up free 4hr stock investment course by Dr Tee to learn various giant stocks of current generation for longer term investing or shorter term trading. Register Here.

Filed Under: Stock Market, Value Investing Tagged: disruptive technology, lifetime investing

US-China Trade War Investment Opportunities

Posted on June 5, 2019 Written by Dr Tee (Ein55)

Economy and stock market are closely related, as if Master (economy) walks the Dog (stock). Master (economy) usually moves slowly but Dog (stock) is more active, responding fast to changes in environment (financial or political markets). The Master may walk several Dogs (stocks, properties, commodities, forex, bond, etc) at the same time, each Dog may respond differently (eg. Bond may get more attention when Master or economy becomes weak).

For an investor, we need to monitor both the Master & Dog, are they moving the same direction (uptrend)? Are they strong giants (strong country economy at Level 3 & stock with strong business fundamental at Level 1). What are their optimism levels? Are correction in investment markets, fear or weaker fundamental driven?

Currently trader war between US and China is mainly driven by Trump with complicated considerations, unlike usual black swan (global financial crisis) which is both a systematic & unsystematic risk. Trump may need to monitor S&P 500 index regularly to know when to adjust the political strategy. When S&P 500 is corrected below 2500 points, fear driven stock market could evolve into weaker economy driven stock market, could be too late to reverse then.

“Wolf is coming” may end up into a real big bear market (when S&P 500 falls into or below 1500-2000 points) when real economy is hurt by falling in stock market below the critical level. Many people’s wealth is based on investment market (stocks, properties, bonds or even cryptocurrencies, etc), capital losses or reduction in capital gains would result in cut down in spending or investment, the downtrend price and economic cycle may get worse this way.

If Trump takes reverse action in trade war by end of 2019 (eg. finalize agreements with other major economies such as China, Europe, Japan, India, etc), the timing may be just nice for year 2020, creating a nice intermediate correction, stock market rebound to support a mid-term bullish or side-way market to support the second term US president election.

Economy is a slower indicator, when it is confirmed downtrend, stock market could have fallen more than 50%. At the same time, stock price is a faster indicator, today falling down, tomorrow could recover higher. There is a balance in between, integrating these considerations in own LO-FTP (Level 1-4 + Optimism + Fundamental + Technical + Personal Analysis) strategies.

Crisis is always an opportunity for investment, including the current trade war between US and the rest of the world. However, a crisis could be a real crisis if one does not know how to position, eg. buy low get lower in stock prices, or even a business could go bankrupt during the bear market. The right way of crisis investing is to form a dream team portfolio of 10 giant stocks, overcome own fear to buy low and wait patiently for the recovery to sell high in future. It looks simple but without proper training, it could be a disaster for speculators.

Learn from Dr Tee free 4hr stock investment course to learn the integrated LO-FTP strategies for trade war investment opportunities in stocks, properties, commodities, forex and bonds.

Filed Under: Macroeconomy, Market Cycle Investing Tagged: trade war

$155,000 Charity Courses Donations for Tzu Chi (慈济) with Summary of Global REITs Course

Posted on May 12, 2019 Written by Dr Tee (Ein55)

Dr Tee, Ein55 Mentors & Graduates have together organised 8 charity investment courses (REITs/Business Trusts in Nov 2015, May 2017 and May 2019, High Dividend Stocks in Mar 2016 and Oct 2017, Capital Growth Stocks in Apr 2018 and Discounted NAV Stocks in Sep 2016 and Nov 2018) in the past 4 years, donating net income of around $155,000 to Tzu Chi 慈济 (Singapore). We hope to inspire more Ein55 Graduates to reach out the society, helping others who are in need. More importantly, they have also learned the secrets of making money through investment. When more Ein55 Graduates are successful financially, they could also contribute back to the society to help more people in future.

Here are key learning points from the recent Charity Course on Global REITs:

1) REITs are collective investment schemes that invest in a portfolio of income generating real estate assets such as shopping malls, offices, hotels or serviced apartments and hospitals. It is also a type of security that can trades on major exchanges like other listed securities.
1.1) Assets of REITs are professionally managed ie REITs Manager.
1.2) Revenues are derived mostly from rental payments, >90%.
1.3) Net income generated from assets must distributed at least 90%, quarterly or half yearly to unit holder.

2) 7 Risk factors for REITs analysis are :-
2.1) Market Risk and Income Risk which are intervene each other
2.2) Foreign Country risk especial currency exchange rate change
2.3) Concentration risk – depend on single property or few tenants
2.4) Leverage risk – revalue down of asset resulting hit gearing limit
2.5) Refinancing risk – unable to secure new loan or new loan at higher cost
2.6) Liquidity risk – difficult to buy/sell portfolio asset

3) 4 common growth strategies adopting by REIT manager are :-
3.1) Acquisition – from sponsor or 3^rd party
3.2) Asset Enhancement Initiative (AEI) – shopping mall to increase NLA
3.3) Organic growth – positive rental revision and increase occupancy
3.4) Development & re-development – cap limit increase to 25% from Jan 2017

4) 3 Key Criteria in Valuation of REITs:
4.1) DPU – look for stable or growing adjusted DPU
4.2) NAV – look for growing NAV & lower PB
4.3) Debt – look for lower interest cost & lower gearing

We should drive the money (helping others when you are successful), not driven by the money (making money only for own gain). Investors should learn the unique Optimism Strategies with FA (Fundamental Analysis) + TA (Technical Analysis) + PA (Personal Analysis) developed by Dr Tee to choose strong global stocks, buying them at low price, then holding for consistent dividend payout or selling for high capital gains. High-quality free stock investment courses are provided by Dr Tee to the public.

Filed Under: Fundamental Analysis, Value Investing Tagged: Charity Course, reit, reit course

3 Simple Steps to Make Money or Lose Money in Stocks

Posted on May 5, 2019 Written by Dr Tee (Ein55)

To make money in stock trading or investing can be as simple as 3 steps:
1) Buy giant stocks (eg. using Giant Detector)
2) Buy Low at price below the value (eg. using Optimism Strategies)
3) Either Sell High or Hold for capital gains (duration depends on personality)

To lose money in stock trading or investing can also be as simple as 3 steps:
1) Buy weak fundamental stocks
2) Buy High at price above the value
3) Either Sell Low or Hold for capital loss

Most traders and investors assume “Methods” are the most important, actively searching for “secrets to make money”. In fact, based on 5 steps of Ein55 trading or investing analysis of LO-FTP, most important step should be reversed in order (PTF-OL) to evaluate PA first:

1) PA (Personal Analysis) – Determine own personality to align the with right strategy (eg. short term trading or long term investing)

2) TA (Technical Analysis)- Following trend of stock prices in trading or investing

3) FA (Fundamental Analysis)- Extra protection with a portfolio of stocks with strong business fundamental

4) OA (Optimism Analysis)- Buy Low Sell High to increase winning probability

5) LA (Level Analysis)- Align Level 1 (individual stock) with Level 2 (sector / industry), Level 3 (country stock market) and Level 4 (world stock market), let big fish (big funds) protect the small fish (individual stocks).

Since making money or lose money in stocks are easy, it is important for us to learn and apply the right way aligned with own personality. Interested readers may sign up for free 4hr stock investment course by Dr Tee to learn 5 steps of stock trading or investing with LO-FTP analyses. Register Here: www.ein55.com

Filed Under: Uncategorized

Cyclic Trading (Buy Low Sell High) vs Growth Investing (Buy Low & Hold)

Posted on April 22, 2019 Written by Dr Tee (Ein55)

Usually before a black swan could become a black bear for stock market, there are many market signals, eg:
1) High stock market optimism > 75% at global level (fulfilled)
2) Inverted bond yield for US (partial fulfilled)
3) Strong US job data < 4% unemployment rate (fulfilled)
… many more stock market and economic indicators

The global stock market is indeed feverish but it may get excited for a period of time first before falling down. Since global stock market at country level is a giant, it would recover one day as well, therefore a no-brainer way of investing could be simply invest in stocks of major economy (eg. US S&P500 ETF, Hong Kong HSI ETF, Singapore STI ETF, etc), buy low & hold long term.

A black swan is a market surprise, therefore not predictable. However, if we guess each month for 10-20 years based on everyday global financial news, one of them could turn into a black swan or global financial crisis eventually.

Therefore, a more practical way could be to allocate our funds based on market optimism. When optimism is higher, we could gradually take more profit, converting stocks into cash. At the same time, position more with shorter term trading with lower risk (assuming no leveraging), one could react faster when a true black swan is here.

We should view the economic cycle positively as it provides an opportunity for smart investors to buy low sell high with cyclic trading.

At the same time, there are defensive growth stocks which are not affected much by global financial crisis, suitable for buy low & hold with growth investing until the business growth is not sustainable, can be as long as lifetime as some businesses could transform and continue to grow.

In shorter term timeframe, traders could also apply swing trading (cyclic trading to buy low sell high within weeks or months) or momentum trading (buy & hold for a period of time until the momentum is over)

Ein55 graduates have learned various types of cyclic vs growth/momentum stocks for long term investing vs short term trading. Use the unique market condition to create various opportunities for us, aligning to own unique personalities.

For general public, you could learn the 5 pillars of Ein55 investing/trading: LO-FTP (Levels 1-4, Optimism, FA, TA, PA) through free 4hr stock investment course by Dr Tee. You will learn how to Buy Low Sell High, as well as Buy Low & Hold. Register Here: www.ein55.com

Filed Under: Macroeconomy, Market Cycle Investing Tagged: buy low sell high

Life Investment Lesson from Kampung Lorong Buangkok

Posted on April 1, 2019 Written by Dr Tee (Ein55)

Life Lesson Beyond Investment from Kampung Lorong Buangkok

Life is not just making money, busy with work or investment, there is a higher level meaning for life.

Today, I have decided to take a break before the busy 6-day Ein55 investment class in April, trekking for 4km along the coast-to-coast trail from Punggol, passing by Kampung Lorong Buangkok, the last kampung or village in Singapore. I visited here with family about 10 years ago when children were still small, deciding to visit there again. I notice some changes around the Kampung (new constructions) but the 26 houses in the Kampung are frozen by time, little changes in my memory, as if going back to kampung time when I was small.

I saw a group of young children with teachers (see photo), listened to sharing by Head of Kampung (co-owner of land), Madam Sng. For younger generation born in city forest, many may not understand what is kampung, the slow pace of living at low cost of living which is rarely found.

I have a chance to chit chat with Madam Sng for about 1 hour to understand the changes in Kampung so far. There are 26 household and 1 mosque in the kampung, some have been staying 3-4 generations there, only paying rental of about $5 to $10 per month (not a typo, if you compare with a few thousands per month of rental for 1 house outside the kampung in Singapore).

I knew about the story of Madam Sng family many years ago, her father bought the land in 1956, after passed away about 20 years ago, leaving the kampung to 4 children (the youngest child, Madam Sng still stays there to manage the kampung). No matter how much is the offer by property developers (last reported “valuation” in 2007 was $33 millions, now could be higher), Sng family refuses to sell, main reason is they want to preserve the spirit of kampung, a valuable heritage for family or even entire nation, something could not be exchanged with money.

The Sng family has kind hearts, helping many other poor families for the past 60 years. Some people may think they are fool for not selling the golden asset of land as sometimes we even see cases of some families in Singapore, children going to court to fight for houses left by parents. Heaven loves “fool” with kind heart (remember the story of Forrest Gump?), rewarding higher return through tremendous hidden capital gains of land prices in Singapore. Assuming a moderate return of 10% CAGR (compounding return) for land price in Singapore, over the past 60 years, it has gone up by 300 times in prices naturally. Even the passive incomes from rental is minimal (artificially suppressed 1000 times lower by the Sng family to help the 26 families in Kampung), Sng family is protected by the natural growth rate of land, which is a default giant for investment.

Some may be envy of the tremendous “investment return” of Sng family, do not know that money is considered secondary for them, generations of families links in the kampung with memory of their parents are more important. I am hoping the Kampung Lorong Buangkok could be there as long as possible (not giving way to future development in Singapore), this is an important life lesson for everyone that money is not everything but when one does the right thing, money would come naturally.

The story of Kampung Lorong Buangkok may not be repeated in future as it is almost impossible for an ordinary investors to buy a land at sky high price in Singapore, holding for generations to preserve the value. However, it is still possible to have similar success through stock investment, one could buy stocks with strong fundamental business or undervalue land, best at low market price if mastering the clock to buy during global financial crisis, then possible to hold for generations, long term return could be comparable with Kampung Lorong Buangkok.

You may learn how to do long term investing through stocks with low capital from Dr Tee free 4 hours investment course. A few examples of long term investing stocks with over 10 times potential in future share prices will be shared.

Remember, money is not almighty but one may not live without it outside Kampung Lorong Buangkok. We do not need to work so hard in active jobs to earn from fixed salary which may be uncertain, better to couple with smart investment through stocks to generate passive incomes and capital gains. We just need more than enough money for life, when financial-freedom is achieved, we can find back the genuine love for life, not for money.

Filed Under: Personal Analysis, Property Market, Stock Market

First Reit Crisis with Lippo Group Analysis

Posted on March 27, 2019 Written by Dr Tee (Ein55)

Ein55 coaching students just review First Reit (SGX: AW9U), a giant dividend stock in Singapore, which mainly collecting rental income through Reits to Siloam Hospitals (owned by same sponsor of First Reit, Lippo Karawaci Group) in Indonesia with triple-net lease without forex risk (pegged at fixed rate to SGD).

However, investing analysis in stock is never on just 1 business, one has to also consider related parties, eg. sponsor of First Reit, Lippo Karawaci (contributed to over 80% of rental income for First Reit), which has a poor credit rating of CCC+, mainly due to long term negative operating cashflow for many years, which expanding in a mega property project aggressively.

Despite strong fundamentals of First Reit, the fear on Lippo Group has corrected First Reit share price from about $1.50/share to $1/share over the past 1 year, dividend yield has climbed up to an impressive 8.7%, comparable to year 2008 during the last global financial crisis.

Ideally, one should buy dividend giant stocks during a crisis to get lower price with stable growing dividend to maximize the dividend yield for long term investing. However, there are different qualities of crisis stocks. Price correction during Level 4 crisis (global financial crisis) is the highest quality if the business remains intact. For the current situation, First Reit is only under Level 2 crisis (despite strong fundamental of First Reit at Level 1, price falls due to fear of deteriorating fundamental of sponsor, Lippo Group), therefore an average quality of low optimism stock.

OUE of Lippo Group is now the second sponsor of First Reit, creating new variable to future of First Reit on dividend growth as the new Reit component may come from Singapore property of OUE (worst if priced at higher level) which may not have the unfair advantages Siloams Hospitals with triple-net lease, fixed forex rate (highly subsidized by sponsor) with high growth of health care industry in Indonesia. However, the change will not be overnight as average lease expiry is about 8-9 years.

For investor who could take calculated risks (in the same boat as Lippo Group and Riady family, waiting for the revival of mega city project), First Reit may be considered for dividend investing but technical analysis should be considered (eg. investing above $1/share which is a critical support, avoiding possible risk of buy low get lower in prices with more future uncertainties) with risk management through diversification over 10 giant stocks. Alternatively, one has the choice of not to invest in average quality low-optimism dividend stock, there are still other better opportunities which are relatively safer.

Learn from Dr Tee free 4hr course on how to investing in global giant stocks (dividend investing, crisis investing, momentum trading, etc), understanding the risks and opportunities of current stock markets in Singapore, US, Hong Kong and China.

Filed Under: Fundamental Analysis, Stock Market Tagged: first reit, reit

Bond Market Danger Signal for Global Financial Crisis

Posted on March 26, 2019 Written by Dr Tee (Ein55)

Gap between global short term bond yield (eg. 3 months or 2 years) and long term bond yield (eg. 10 years) is approaching zero or negative.

See chart of (10 yr vs 2 yr) and (10 yr vs 3 months) bond yields gap, historically after 1-2 years when this signal is triggered, global financial crisis would follow after a very bullish stock market. Will the same pattern be repeated this time as last few market cycles, eg dotcom bubble after year 2000, subprime crisis after year 2007?

Bond price and bond yield move in opposite direction because Bond Yield = Bond Interest / Bond Price. Bond yield is the % return from the bond market.

There are 2 general trends which cause the abnormality in global bond market now with short term bond yield closes to or more than long term bond yield:

1) More people buying long term bond (eg. long term investors who worry about stock market may crash), therefore long term bond price goes up, long term bond yield starts to drop (eg 10 years US bond yield drops from over 3% last year to about 2.45% in Mar 2019).

2) More people selling short term bond (short term fund is transferred from low-return short term bond to other more attractive opportunities, eg short term trading in bullish short term stock market or even deposit cash in bank with rising interest rate which competes with bond market), therefore short term bond short term bond yield has been going up (bond price drops) consistently, especially since year 2015 till now when US starts to increase the interest rate regularly.

Initially, long term bond yield was uptrend together with stock market but with falling of global stock market from level 3-4 high optimism (>75%) last year, long term bond yield has starts to drop from the last peak of over 3%, gap between long term bond yield (eg 10 years) and short term bond yield (eg. 3 months or 2 years) is getting narrower or even reversed (short term bond yield has higher return than long term bond yield) which is abnormal.

This is a danger signal but may not be immediate crash for global stock market. Historically, bullish stock market could still run for 1-2 more years after this abnormal bond market signal is observed. Investors need to pay attention to trend of short term bond yield (eg. 3 months), when it starts to fall down together with long term bond yield from a peak, this will show great fear in global stock market. Currently, short term bond yield still go up (bond price drops) under the momentum, this trend may be stopped or even reversed when US has stopped increasing the interest rate or start to cut down interest rate (signal of weaker economy), then bear market would come again.

Are you worried of the global bond market which may affect the global stock market with the next global financial crisis? As a stock investor/trader, one may position using 2 different unique strategies:

1) Investor – hold (for stocks bought at low last time) and prepare to sell stocks at high by riding the short term bullish stock market.

2) Trader – Buy High Sell Higher if the strong momentum in short term stock market could continue over the next 1-2 years.

Learn from Dr Tee free 4hr stock investment course to learn to grab the golden opportunities to profit from both immediate short term bullish stock market (as a trader) and also next future from global financial crisis (as an investor). 10 secrets of trading and investing will be shared.

Filed Under: Bond Market, Stock Market Tagged: global financial crisis

Acquisition of Dividend Giant Stock: Challenger Technologies (SGX: 573)

Posted on March 22, 2019 Written by Dr Tee (Ein55)

Based on Ein55 Giant Detector, out of about 800 stocks, there are only 6 dividend giant stocks in Singapore. Unfortunately, 1 of the dividend giant stocks, Challenger Technologies (SGX: 573), is being acquired recently, will be delisted from Singapore stock market.

Challenger Technologies is not a REIT nor blue chip stock, but it has strong earning growth with stable positive operating cashflow, able to pay consistent dividend each year (more than 5% dividend yield) over the past 10 years. Due to weak stock market sentiment, Challenger Technologies has been trading at low Optimism level (<25%) over the past 2 years, providing a golden opportunity for major shareholder (Loo family in partnership with Digileap Capital) to acquire at low price of $0.56/share, which is a premium of about 20% compared with average low optimism price of $0.48/share (when homework on Challenger Technologies was assigned to Ein55 coaching class in Feb 2017) over the past 2 years. The timing of acquisition is ideal as Challenger Technologies has low trading volume with little public float, even with offer price of $0.56/share, it is still consider undervalue.

Over the past 10 years, Challenger Technologies has grown more than 5 times in share prices (from initial low of $0.10/share to more than $0.50/share), an ideal growth stock for buy and hold for tremendous capital gains, as well as collecting more than 5% dividend yield yearly as bonus (13% dividend yield if bought in year 2008 during global financial crisis). Most investors may position dividend as the No 1 objective for dividend stock investing. In fact, the hidden treasure of dividend stock is with the enormous capital gains (rise in share prices over the years) as other investors have to pay higher prices each year to exchange for this money-making machine which pay $5 for every $100 investment. Challenger Technologies is an excellent example of dividend giant stock which is suitable for both passive income and also capital gains.

Investors have been given at least 2 years to consider Challenger Technologies but the response has been weak, partly because the stock is not a typical trading stock with high volatility. In total, there are 86 giant dividend stocks in the world major stock markets. After delisting of Challenger Technologies, there are still another 5 dividend giant stocks from Singapore waiting for us, do not miss these limited opportunities, especially when they are trading at low optimism price with high dividend yield (>10%) one day during the global financial crisis while business is still strong to make money consistently each year.

Interested readers may sign up for free 4hr stock investment course by Dr Tee to learn the right way of dividend stock investing, as well as timing for entry and exit, through 10 personalized investing strategies. Register Here: www.ein55.com

Filed Under: Market Optimism, Stock Market, Stocks A-Z

2 Free eBooks by Dr Tee (Click to Download)