Fundamental Analysis Archives - Page 2 of 8

10 Stock Investment Strategies (股市投资十招)

Posted on July 29, 2021 Written by Dr Tee (Ein55)

Dr Tee has conducted over 300 high-quality public workshops over the last decade, from meet-up sessions to webinars currently, content is enhanced regularly. Dr Tee has updated the preview video today (only 8 minutes), showing the tremendous value of free investment education to general public every month.

In this quick preview, Dr Tee will introduce 10 key investment strategies to be learned in 4hr free stock webinar (Register Here: www.ein55.com):
1) Bonus Stock Diagnosis (股票基本与技术分析)
2) Global Market Outlook / ETF Investing (环球市场展望 / 指数投资法)
3) CFD / Option Trading (差价合约交易)
4) REITS / Dividend Blue Chips (高息蓝筹股)
5) Free Stock Screener (免费环球股票筛选平台)
6) Investment Clock (投资时钟)
7) Crisis Stock Investing (危机投资股)
8) Investing with Big Boys (大鱼投资股)
9) Growing Giant Stocks (长期成长投资股)
10) Momentum Trading Stocks (短期动量股)

Share this high quality free stock webinar by Dr Tee with your friends, learning at the comfort of home.
Register Here: www.ein55.com

Join earlier for bonus stock diagnosis. We will review the impact of recent stock market correction with opportunities in global giant stocks with 10 stock investing and trading strategies, either Average Down (Buy Low Sell High) or Average Up (Buy High Sell Higher), choosing a strategy aligning with own personality.

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There are over 2000 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.

Ascendas Reit (SGX: A17U), CapitaLand (SGX: C31), CapitaLand Integrated Commercial 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).

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

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Filed Under: Bond Market, Commodity Market, Forex, Fundamental Analysis, Market Outlook, Property Market, Stock Market Tagged: market outlook, video education

100 Singapore Dividend Stocks and REITs for Retirement (有备无患)

Posted on March 5, 2021 Written by Dr Tee (Ein55)

Each of us would reach retirement age one day, sooner or later. Life after retirement should be the most meaningful, we could live in our preferred ways, engaging in activities of interests. However, some may not be ready financially, retirement fund is not sufficient to support the longer lifespan, ending up has to continue to work with lower pay or depending on children for financial support.

In this article, you will learn from Dr Tee on 100 Dividend Stocks and REITs in Singapore for Retirement, some may be considered for longer term investing and / or short term trading with COVID-19 recovery stock rally. Bonus for readers who could read every words of the entire article, learning unique strategy to position in 6 giant dividend stocks for both passive incomes (dividend) and capital gains with potential share price appreciation. Both Ein55 Optimism levels and intrinsic values will be shared for each giant stock:

1) Dividend Healthcare Stock: Q&M Dental (SGX: QC7)

2) Dividend Consumer Stock: The Hour Glass (SGX: AGS)

3) Dividend Property Stock: Hongkong Land (SGX: H78)

4) Dividend Technology Stock: ST Engineering (SGX: S63)

5) Dividend F&B Stock: QAF (SGX: Q01)

6) Dividend REIT: Mapletree Industrial REIT (SGX: ME8U)

During the COVID-19 stock recovery, there is a sector rotation with slower or even declining trend for global growth stocks. Investors start to pay more attention to cyclical stocks (eg. banks, properties and oil & gas sectors, etc), especially for those affected companies recovering together with pandemic with stable dividend payments.

Dividend stocks include but not limited to REITs. For REITs, by law, the company has to distribute 90% of rental incomes back to shareholders in the form of dividend. For non-REITs stocks, some companies have clear dividend payment policies (not compulsory) or consistent record in dividend payout. For some blue chip stocks, dividends payment could grow over the decades.

Dividend payment of stocks could be distributed quarterly, half yearly or yearly. A portfolio of 10-20 dividend giant stocks may be established to create a stream of consistent passive incomes, when monthly dividend is more than expenses, one could become financial free this way. The key variables would be initial capital, return (dividend yield, which is dependent on entry price and business performance) and holding period, so customization of strategies based on individual need is required.

The best time to buy a giant dividend stock is always during global stock crisis (eg. Year 2020-2021 during pandemic, 2008—2009 during subprime crisis, etc), not only able to maximize the dividend yield (due to lower entry price), also could have higher potential of capital gains (when market cycle moves from fear in low optimism to greed in high optimism). Dividend stock investing is not for dividend collection alone, may be integrated with growth investing, swing trading, momentum trading, cyclic investing, defensive investing, undervalue investing and other Ein55 strategies.

From the table sorted below for 100 Dividend Stocks and REITS in Singapore, each has growing businesses over the past decade with increasing or reasonable dividends (minimum 2% yield) and positive ROE (Return on Equity), except a few are affected temporarily by pandemic.

However, not all the dividend stocks listed are giant stocks. A growing business in the past may not be sustainable during COVID-19 period, could end up as a crisis stock. Fundamental Analysis alone is not sufficient, a high dividend yield stock may be a value trap as this may be the result of lower share price with weakening businesses. Therefore, deeper analysis is required with LOFTP (Level, Optimism, Fundamental, Technical, Personal Analysis) Strategies.

For Singapore investors, investing in Singapore dividend stocks in SGD can minimize potential forex loss (since SGD is stronger than most foreign currencies), except some stocks trading in USD or having overseas business (eg. Hongkong Land). There are also excellent dividend giant stocks in regional stock markets: Malaysia, Hong Kong or even USA.

No	Dividend Stocks	DY (%)	ROE (%)
1	AEM Holdings (SGX: AWX)	2.1	46.10
2	AIMS APAC REIT (SGX: O5RU)	6.2	5.30
3	AP Oil International (SGX: 5AU)	4.4	4.50
4	Ascendas India Trust (SGX: CY6U)	5.6	9.10
5	Ascendas Reit (SGX: A17U)	5	4.80
6	Ban Leong Technologies (SGX: B26)	5	12.80
7	BRC Asia (SGX: BEC)	3.8	7.70
8	CapitaLand (SGX: C31)	2.8	-6.80
9	CapitaLand China Trust (SGX: AU8U)	4.7	3.30
10	CapitaLand Integrated Commercial Trust (SGX: C38U)	4.1	2.90
11	Centurion Corp (SGX: OU8)	2.9	17.30
12	Challenger Technologies (SGX: 573)	4.8	19.20
13	China Sunsine Chemical Holdings (SGX: QES)	2	7.60
14	Chip Eng Seng Corporation (SGX: C29)	4.4	-10.00
15	DBS Bank (SGX: D05)	3.2	8.60
16	Delfi (SGX: P34)	5.6	7.70
17	Dutech Holdings (SGX: CZ4)	4.1	6.70
18	ESR REIT (SGX: J91U)	7.5	6.90
19	Excelpoint Technology (SGX: BDF)	7	11.80
20	Far East Orchard (SGX: O10)	5.7	1.60
21	First Reit (SGX: AW9U)	19.8	8.30
22	First Sponsor Group (SGX: ADN)	2.3	6.00
23	Food Empire Holdings (SGX: F03)	2.4	12.30
24	Frasers Centrepoint Trust (SGX: J69U)	3.7	4.00
25	Frasers Logistics & Commercial Trust (SGX: BUOU)	5.3	5.30
26	Frencken Group (SGX: E28)	2.5	12.70
27	Great Eastern Holding (SGX: G07)	2.7	10.30
28	GuocoLand (SGX: F17)	3.8	1.00
29	Haw Par Corporation (SGX: H02)	2.4	4.20
30	HoBeeLand (SGX: H13)	4.2	10.80
31	Hongkong Land Holdings (SGX: H78)	4.5	-5.70
32	Hotel Grand Central (SGX: H18)	4	1.5
33	Hotung Investment Holdings (SGX: BLS)	10.1	8.40
34	Hotel Properties (SGX: H15)	3.2	-1.90
35	Hyphens Pharma International (SGX: 1J5)	3.2	14.7
36	IREIT Global (SGX: UD1U)	7.6	6.2
37	Japan Foods Holding (SGX: 5OI)	2.9	-0.60
38	Jardine Cycle & Carriage (SGX: C07)	4.8	11.00
39	Jardine Matheson Holdings (SGX: J36)	3.3	-0.70
40	Karin Technology Holdings (SGX: K29)	4	1.30
41	Keppel Infrastructure Trust (SGX: A7RU)	6.8	0.00
42	Keppel DC Reit (SGX: AJBU)	3.4	8.10
43	Keppel Reit (SGX: K71U)	5	4.30
44	KSH Holdings (SGX: ER0)	3.5	0.10
45	LHT Holdings (SGX: BEI)	4.8	8.10
46	Lum Chang Holdings (SGX: L19)	15.4	-3.50
47	Lung Kee Bermuda (SGX: L09)	6.9	6.90
48	Manulife US Reit (SGX: BTOU)	8.4	7.70
49	Mapletree Commercial Trust (SGX: N2IU)	3.7	4.10
50	Mapletree Industrial Trust (SGX: ME8U)	4.6	7.40
51	Mapletree Logistics Trust (SGX: M44U)	4.5	6.10
52	Mapletree North Asia Commercial Trust (SGX: RW0U)	6.4	4.50
53	MegaChem (SGX: 5DS)	3.8	9.8
54	Meghmani Organics (SGX: M30)	2.6	17.00
55	Metro Holdings (SGX: M01)	2.8	2.10
56	Micro-Mechanics Holdings (SGX: 5DD)	4.1	29.70
57	Nam Lee Pressed Metal Industries (SGX: G0I)	4.7	4.40
58	NetLink NBN Trust (SGX: CJLU)	5.4	6.90
59	New Toyo International Holdings (SGX: N08)	8.6	-4.60
60	Nordic Group (SGX: MR7)	2.3	6.20
61	OCBC Bank (SGX: O39)	2.8	7.20
62	Olam International (SGX: O32)	5.1	9.20
63	Oxley Holdings (SGX: 5UX)	6.3	-25.00
64	Pacific Century Regional Development (SGX: P15)	18.9	-3.80
65	ParkwayLife Reit (SGX: C2PU)	3.4	7.3
66	PNE Industries (SGX: BDA)	8.6	7.60
67	PropNex (SGX: OYY)	4.7	34.40
68	Prudential (SGX: K6S)	2.1	-3.60
69	QAF (SGX: Q01)	5.2	10.40
70	Q&M Dental Group (SGX: QC7)	4.7	15.90
71	Raffles Medical Group (SGX: BSL)	2.3	7.30
72	Riverstone Holdings (SGX: AP4)	2.4	23.30
73	Samurai 2K Aerosol (SGX: 1C3)	2.9	11.20
74	Sasseur Reit (SGX: CRPU)	7.3	6.70
75	Singapore Exchange (SGX: S68)	3.1	39.40
76	Sheng Siong Group (SGX: OV8)	4.1	37.20
77	Singtel (SGX: Z74)	4.5	6.20
78	Spindex Industries (SGX: 564)	2.4	11.50
79	Sri Trang Agro Industry (SGX: NC2)	5	25.00
80	Starhill Global Reit (SGX: P40U)	5	3.90
81	ST Engineering (SGX: S63)	3.8	22.80
82	Straco Corporation (SGX: S85)	4.8	5.30
83	Suntec Reit (SGX: T82U)	5	3.60
84	Tat Seng Packaging Group (SGX: T12)	2.8	12.00
85	Tan Chong International (SGX: T15)	4.9	0.40
86	Thai Beverage (SGX: Y92)	3.3	15.70
87	The Hour Glass (SGX: AGS)	4.4	11.20
88	Tianjin Zhongxin Pharmaceutical (SGX: T14)	5	11.20
89	Top Glove Corporation (SGX: BVA)	5.5	60.20
90	UMS Holdings (SGX: 558)	4.5	17.20
91	Union Gas Holdings (SGX: 1F2)	4	34.50
92	United Global (SGX: 43P)	7.1	63.10
93	United Overseas Australia UOA (SGX: EH5)	2.6	4.30
94	UOB Bank (SGX: U11)	3.1	6.90
95	United Overseas Insurance UOI (SGX: U13)	3.1	5.70
96	UOL Group (SGX: U14)	2.3	1.30
97	Valuetronics Holdings (SGX: BN2)	5.7	13.80
98	VICOM (SGX: WJP)	2.8	18.20
99	Wilmar International (SGX: F34)	3.7	8.10
100	Yangzijiang Shipbuilding Holdings (SGX: BS6)	4.2	7.80

Here, let’s focus on 6 Singapore Giant Dividend Stocks in 6 different sectors, learning the unique positioning for each stock:

1) Dividend Healthcare Stock: Q&M Dental (SGX: QC7)

A giant stock may not need to be big in size, true for Q&M Dental, a small cap healthcare stock, which is the largest dental service provider in Singapore. The company business was affected by pandemic during the first half of 2020 due to circuit breaker but quickly regain positive momentum in the second half of 2020. One could postpone certain medical treatments but it is hard to tolerate acute tooth pains, suffering in each day of waiting. Therefore, it is not surprise to see stronger businesses which would help to support higher share prices with recovery of pandemic.

Over the past 5 years, Q&M Dental share price has been declining gradually (not suitable for trading then), partly due to slower growth in company businesses and bearish market sentiment for small cap stocks. During pandemic, its share price dropped to only half of peak price ($0.80+), the lowest was below $0.40. Q&M Dental has been staying below low optimism level (below $0.50) for about 2 years, recently breaking above critical resistance of $0.50, currently at about 40% Ein55 Optimism level, still below the intrinsic value of about $0.70.

Q&M Dental is not only a dividend stock (dividend yield about 4.7%, depending on share price) with long term growth investing, it may also be considered for short term trading due to recent breakout with higher prices, showing potential rally in near future. For trading, it is crucial to have S.E.T. (Stop Loss / Entry / Target Prices) in trading plan. For example, if the prices fall back below the support (was resistance) of $0.50, then a short term trader may need to exit, even with losses, if breakout strategy is the main assumption for trading strategy.

Readers may read earlier article of Dr Tee for more details on Q&M Dental.

2) Dividend Consumer Stock: The Hour Glass (SGX: AGS)

The Hour Glass is a consumer discretionary stock with luxury watches businesses (eg. distributors for Rolex, Patek Philippe, Hublot, etc). During the first 6 months of pandemic (Apr – Sep 2020), its business has lower revenue due to fewer tourists to Singapore. With more online sales and lower expenses (stores were closed during circuit breaker), the net profit is not significantly affected.

In fact, The Hour Glass is a strong cash-rich company, cash flow grows by about 10 times over the past 5 years while share price has been staying sideways (below peak price and critical resistance of $0.85), which is a hidden gem of undervalue stock. Recently, the share price has recovered from low optimism level (below $0.80), breaking above $0.85, challenging new resistance of $1, currently over 30% Ein55 Optimism level, still below the intrinsic value of about $1.20.

The Hour Glass is not only a dividend stock (dividend yield about 4.4%, depending on share price) with longer growth investing, it may also be considered for short term trading due to recent breakout with higher prices, showing potential rally in near future. For trading, it is crucial to have S.E.T. (Stop Loss / Entry / Target Prices) in trading plan. For example, if the prices fall back below the support (was resistance) of $0.85, then a trader may need to exit, even with losses, if breakout strategy is the main assumption for trading strategy.

Both The Hour Glass and competitor, Cortina (SGX: C41), have similar businesses and even common shareholders (the largest shareholder of Hour Glass, Henry Tay, is also the second largest investor of Cortina, a rare strategy to invest in competitor to have more gains out of the luxury watches market) but Cortina has over 90% Ein55 Optimism level, more suitable for short term trading. Both stocks are “cold” stocks with relatively lower daily trading volume, therefore share price could surge or dip significantly when there are bigger players joining the trading game.

Readers may view earlier educational video by Dr Tee for more details on Cortina.

3) Dividend Property Stock: Hongkong Land (SGX: H78)

Hongkong Land is an undervalue stock with Grade-A commercial properties mainly in Hong Kong, China and Singapore. The “loss” during pandemic in Year 2020 is mainly due to accounting loss, i.e. lower property valuation. However, the cash flow is still stable, therefore able to support the dividend payment each year, including during pandemic.

Over the past 5 years, Hongkong Land share price has declined gradually from peak of $8 to half price, below $4 during pandemic. With recovery of pandemic and bullish market sentiment, its share price has recovered steadily from very low optimism level, suitable for both long term cyclic investing and even short term trading (despite slower momentum, compared with other growth stocks). Current Ein55 Optimism level is still low around 15%, potential upside with intrinsic value of about $9.

Technically, Hongkong Land behaves like a REIT at the moment, generating rental incomes (dividend yield of 4.5%, depending on share price), giving back to shareholders through dividend. It may be positioned as a slow but steady defender with protection by its undervalue asset (Price to Book ratio of 0.3 with 70% discount, assuming discounted asset strategy).

Readers may read earlier article by Dr Tee for more details on Hongkong Land.

4) Dividend Technology Stock: ST Engineering (SGX: S63)

ST Engineering is a Temasek stock (50% shares ownership), having defensive businesses through subsidiaries, eg. ST Aerospace, ST Electronics, etc, in various technological sectors. Despite net profits are affected by pandemic (especially for ST Aerospace), cash flow is still strong for ST Engineering, therefore still able to pay the dividend consistently to reward long term investors.

During pandemic, ST Engineering share price dropped below $3 to low optimism, then recovering to fair value gradually over the past 1 year. The price trends and optimism levels are generally aligned with Singapore stock market since ST Engineering is 1 of 30 STI component stocks.

Over the past decade, ST Engineering is able to pay very consistent dividend (dividend yield of 3.8%, depending on share price), including during pandemic year 2020. However, its dividend growth is limited (same dividend of 15 cents/share for the past 5 years), therefore not an ideal dividend stock for long term investing. It is also a defensive stock with relatively less price volatility compared with entire Singapore stock market, an investor could sleep soundly even during stock crisis. So, its strength of defensiveness may be also a weakness (less upside capital gains) for some investors, depending on personal objectives. Current Ein55 Optimism level is near to 50% with intrinsic value about $4, upside is limited but passive incomes of future dividend would be steady with little surprises.

Readers may read earlier article by Dr Tee for more details on other technology stocks.

5) Dividend F&B Stock: QAF (SGX: Q01)

QAF has bakery business which has excellent performance during pandemic as most people stay longer time at home during this period, therefore eating (bread and other food) at home more often. However, it does not increase the dividend payment for pandemic year 2020, still maintaining at 5 cents per share (about 5.2% dividend yield, depending on share price) for the past 5 years.

QAF is defensive in business but share price is cyclical in nature. After share price falling from peak of about $1.40 to half price (below $0.60), it started to recover with business enhanced by pandemic. Ein55 Optimism level is recovering near to 50% with intrinsic around $1. Due to its cyclical behaviour with uptrend price, besides steady yearly dividend collection, QAF may also be considered for short term trading (especially when breaking convincingly above resistance of $1).

For readers who are interested to eat QAF bread for free for lifetime with a unique strategy, may read earlier article by Dr Tee on 48 F&B stocks including QAF.

6) Dividend REIT: Mapletree Industrial REIT (SGX: ME8U)

Mapletree Industrial Trust (MIT) is also a Temasek stock, an industrial REIT with excellent business fundamental, able to pay growing dividend consistently over the past 10 years. With additional expansion into data center (about 40% of overall businesses), future business growth would be even stronger. When an investor knows “What to Buy”, the remaining key variable is “When to Buy/Sell”.

MIT share price was corrected to 0% Ein55 Optimism (an ideal investing opportunity with very fearful market) during pandemic in year 2020 but quickly recovered to 100% Ein55 Optimism (very greedy stage) in only 6 months. With sector rotation during pandemic recovery, currently MIT share price is under correction, Ein55 Optimism level falling to nearly 50% with intrinsic value around $2.70. Since over 80% REITs in Singapore are bearish in short term trend over the past 1 month, MIT is not yet suitable for short term trading nor long term investing (despite a fair price now).

When there is a chance for MIT to drop to low optimism level again, it would be a good chance to consider this stock for longer term investing. Alternatively, the price has to be stronger to be considered for short term trading with positive price trend. Currently, collection of dividend yield at about 4.6% is insufficient to balance the negative trend of short term prices. “What to Buy” does not means “Now to Buy”, both Technical Analysis (TA) and Fundamental Analysis (FA) have to be integrated with consideration of Ein55 Optimism strategies, including market greed and fear.

Another related sibling Temasek stock is Keppel DC Reit (100% businesses in data center), sharing similar price and optimism behavior, having even stronger business growth but lower dividend yield. So, actions may not be just “Buy”, may also be “Wait”. Opportunity is always for those who could wait patiently but able to take action to buy strong business at low optimism prices when others are fearful (eg. during global financial crisis).

Readers may read earlier article of Dr Tee for more details on entire 42 Singapore REITs and 16 Business Trusts, including Mapletree Industrial Trust and Keppel DC Reit.

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Retirement planning is never too late (有备无患), even one has already retired, still could learn to position on a portfolio of 10-20 dividend giant stocks, integrating with growth investing or momentum trading and other Ein55 strategies (readers can learn from Dr Tee). Dividend yield of 5-10% yearly may seems little to some investors but it is only a bonus, the hidden treasure is potential enormous capital gains with price appreciation over decades, supported by growing and sustainable businesses.

For those who are youngers, need to start saving of capital, converting active income of job salary to passive income of investment (dividends & capital gains). This way, after retirement one day, these business partners of stocks could continue to work and make money for the investor, who just needs to review and rebalance portfolio yearly. The process of stock investing can be lifelong, applying the power of compounding with time to gain more in years or even decades of holding.

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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.

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, you could ask on any global and local stocks including but not limited to 30 STI component stocks:

Ascendas Reit (SGX: A17U), CapitaLand (SGX: C31), CapitaLand Integrated Commercial 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).

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

Filed Under: Fundamental Analysis, Market Cycle Investing, Market Outlook, Stock Market, Technical Analysis, Value Investing Tagged: crisis stock, dividend stock, growth stock

6 Crisis Investing & Momentum Stocks with Life Changing 20 Minutes Talk (时来运转)

Posted on January 25, 2021 Written by Dr Tee (Ein55)

Appreciation to IFAST for the special invitation in EXPO 2021 talk, professionally organized over a studio. The challenge is to compress my over 20 years investing experiences with views of current stock market opportunity over a limited 20 minutes talk, motivating thousands of audience over live telecast to take action to benefit from COVID-19 stock crisis recovery rally.

In this Dr Tee 20 minutes video education (6 Crisis Investing and Momentum Trading Stocks for 2021 Year of Bull), you will learn Market Outlook 2021 for USA and Singapore with 6 crisis investing and momentum trading giant stocks, growing in 4 sectors during pandemic, having high upside potential:
1) TSMC (NYSE: TSM) – Technology (Semiconductor) Momentum Stock
2) Micro-Mechanics Holdings (SGX: 5DD) – Technology Momentum Stock
3) HDFC Bank (NYSE: HDB) – Bank Momentum Stock
4) J&J Snack Foods (NASDAQ: JJSF) – F&B Growth Stock
5) Thai Beverage (SGX: Y92) – F&B Growth Stock
6) Raffles Medical Group (SGX: BSL) – Healthcare Growth Stock

View Dr Tee Video (Life Changing 20 Minutes):

This 20 minutes video could be life changing experience for audience as it is an essence of Dr Tee decades of stock investment and trading knowledge. Don’t just spend 20 years of time working hard for your bosses, helping other people become rich. For the first time, free up only 20 minutes of your life to start the right path of stock investing or trading.

Over the past 1 month, momentum trading stocks shared by Dr Tee over several webinars have appreciated tremendously, eg. Micro-mechanics has surged about 50% and TSMC has gone up about 20%. Momentum trading is suitable for shorter term trading, applying trend-following strategies but traders need to know when to take profits when uptrend has ended.

At the same time, for more patient longer term investor, growth investing integrated with crisis investing, i.e. buying strong fundamental stocks with growing businesses at lousy low prices when other people are fearful (eg. of COVID-19 pandemic). The longer wait could translate to much higher potential of over 100 – 200% return. Certain giant stocks may be considered for lifetime investing (Buy Low & Hold) but requires yearly certification that it is still a giant stock. For example, technology stocks may not be suitable for lifetime investing as disruptive technology with new challengers could bring down the leaders in every decade.

Filed Under: Fundamental Analysis, Market Cycle Investing, Market Outlook, Stock Market Tagged: crisis stock, growth stock, momentum stock

6 Wee Cho Yaw Singapore Giant Stocks (光宗耀祖)

Posted on December 30, 2020 Written by Dr Tee (Ein55)

Mr Wee Cho Yaw (黄祖耀) is the Top 10 richest person in Singapore for decades. An easy way of being rich is to be a long term business partner of these proven rich people through stock investing, ideally entering during COVID-19 stock crisis with discounted prices.

In this article, you will learn from Dr Tee on 6 Wee Chow Yaw Family Giant Stocks in Singapore for longer term investing with COVID-19 recovery stock rally. Bonus for readers who could read every words of the entire article, learning unique strategy to position in each Wee family stocks. This investing strategy may be extended to any Top 10 richest person in any country.

1) UOB Bank (SGX: U11)

2) UOB Kay Hian (SGX: U10)

3) UOI (United Overseas Insurance) (SGX: U13)

4) UOL Group (SGX: U14)

5) UIC (United Industrial Corporation) (SGX: U06)

6) Haw Par Corporation (SGX: H02)

Wee Cho Yaw is the second generation of Wee Family, succeeding the bank business from his father (Wee Kheng Chiang), expanding the UOB Bank with multiple acquisitions of other banks (defeating DBS to acquire OUB Bank), becoming the third largest bank in Singapore. Wee Cho Yaw has retired (91 years old but still engaging actively in businesses), distributing the family businesses to the third generation, 3 sons: Wee Ee Chong, Wee Ee Lim, Wee Ee Chao.

Unlike Chinese saying of “wealth does not last over 3 generations” (富不过三代) or English saying of “clogs to clogs is only three generations”, Wee Family has been training family members to be management since young, not simply inheriting the wealth. As long as management is performing (regardless operated by family or external talent), giant stocks supported by strong businesses will continue to grow.

There are 30 STI index component stocks including Wee Cho Yaw Family giant stocks of UOB and UOL. Wee Cho Yaw has established an empire of businesses with 6 giant stocks over 3 key sectors in Singapore: Banking & Finance (UOB, UOB Kay Hian and UOI), Property (UOL and UIC) and Healthcare (Haw Par). Each of the 6 stocks is connected by a network of cross-shareholding structure (read past article by Dr Tee for details) with near simple majority (eg. A owns B & C, while B owns A & D, etc).

This is an efficient way to expand the businesses with limited capital in the early time but having potential risk of weaker control in overall shares ownership when there is a strong competitor. In more recent years, instead of more acquisition of new businesses, Wee Cho Yaw family has been focusing on strengthening the control of these core businesses with more shareholding (eg. buying more shares of UOL, Haw Par, etc), establishing a more stable business structure for the third and future generations.

Let’s learn from Dr Tee on how to position in these 6 Wee Cho Yaw stocks over 3 promising sectors in Singapore, especially during COVID-19 stock crisis recovery rally:

1) Singapore Banking & Finance Giant Stocks

1.1) UOB Bank (SGX: U11)

Business performance of UOB Bank is aligned with other 2 major banks in Singapore, DBS Bank and OCBC Bank. In general, global and Singapore banks are at its low tide of business with higher NPL (Non-Performing Loan) during pandemic and lower interest income due to low bank interest rates globally.

UOB Bank stock is recovering steadily from low optimism during pandemic, currently about 41% optimism, still having discount in share prices. UOB is a moderate growth stock, suitable with Buy Low & Hold long term strategy. In normal time (without MAS cap of 60% dividend payment), UOB stock investor could receive 5-6% stable dividend yield (depending on entry price), suitable for long term investing with Mr Wee Chow Yaw family (strong sponsor) core business.

Therefore, it may be smarter to be an UOB bank stock investor (sharing 5-6% dividend yield and potential capital gains) than being a client of UOB with cash deposit for long term (contributing cheap loan with less than 0.5% interest for UOB to invest or expand business).

1.2) UOB Kay Hian (SGX: U10)

Business performance of UOB Kay Hian is relatively weaker than other Wee family stocks in longer term, mainly due to stagnant and smaller Singapore stock market, resulting in less profits for stock brokerage business. However, during COVID-19 stock crisis, stock trading volume has increased for local and global stocks, therefore UOB Kay Hian is gaining momentum in both business and share price.

UOB Kay Hian stock is recovering from low optimism during pandemic, currently about 35% optimism, having higher potential in medium term share prices with more active traders who buy or sell local and global stocks. UOB Kay Hian is a cyclic stock, suitable with Buy Low & Sell High in medium term strategy, growing together in bullish stock market with pandemic recovery rally.

1.3) UOI (United Overseas Insurance) (SGX: U13)

Business performance of UOI (United Overseas Insurance) is relatively more stable in longer term (not much affected during COVID-19), mainly due to defensive nature of insurance industry (leveraging on probability of nature to make profits with calculated risks, diversifying over a large number of populations or policies).

UOI stock is corrected relatively less than other Wee family stocks during pandemic, currently near fair price of about 58% optimism, having lower potential in long term due to less discount in share prices. UOI may be considered for medium term cyclic trading with Buy Low Sell High strategy but it may not be as exciting as other Wee family stocks for short term traders.

There are 30 Banking & Finance Stocks in Singapore including UOB Bank, UOI and UOB Kay Hian (investor has to focus only on giant stocks for investing):

AMTD IB OV (SGX: HKB), B&M Hldg (SGX: CJN), DBS Bank (SGX: D05), Edition (SGX: 5HG), G K Goh (SGX: G41), Global Investment (SGX: B73), Great Eastern (SGX: G07), Hong Leong Finance (SGX: S41), Hotung Investment (SGX: BLS), IFAST Corporation (SGX: AIY), IFS Capital (SGX: I49), Intraco (SGX: I06), Maxi-Cash Finance (SGX: 5UF), MoneyMax Finance (SGX: 5WJ), Net Pacific Finance (SGX: 5QY), OCBC Bank (SGX: O39), Pacific Century (SGX: P15), Prudential USD (SGX: K6S), Singapore Exchange (SGX: S68), SHS (SGX: 566), Sing Investments & Finance (SGX: S35), Singapore Reinsurance (SGX: S49), Singapura Finance (SGX: S23), TIH (SGX: T55), Uni-Asia Group (SGX: CHJ), UOB Bank (SGX: U11), UOB-KAY HIAN HOLDINGS (SGX: U10), UOI (SGX: U13), ValueMax (SGX: T6I), Vibrant Group (SGX: BIP).

2) Singapore Property Giant Stocks

2.1) UOL Group (SGX: U14)

2.2) UIC (United Industrial Corporation) (SGX: U06)

Business performances of UOL and UIC (United Industrial Corporation) are aligned with other major Singapore property stocks (eg. CapitaLand, City Development, Hongkong Land, etc). In general, global and Singapore property prices are relatively stable during pandemic, partly due to low mortgage rate and slower response in property market (comparing to panic sell within weeks by global stock investors during early phase of pandemic in Mar 2020). However, due to circuit breaker in Singapore and global lock down globally in Q2/2020, property businesses are still affected.

With recovery of local and global economy, both UOL and UIC are expected to gain more momentum in property market. Both stocks of UOL and UIC are recovering steadily from low optimism during pandemic, currently about 35% optimism (UOL) and 7% Optimism (UIC) respectively. UIC has more discount in share prices than UOL (over 50% discount with price-to-book ratio = 0.46 for UIC).

UOL is a growth stock, more suitable with Buy Low & Hold long term strategy. UIC is a cyclic stock, more suitable with Buy Low & Sell High in medium term strategy. Both UOL and UIC could pay moderate dividend yield of nearly 2% (more than bank interest of 0.5%), suitable for positioning as midfielders for both capital gains in share prices appreciation and moderate passive income with stable dividend.

There are 140 Property Stocks in Singapore including UOL and UIC (investor has to focus only on giant stocks for investing):

3Cnergy (SGX: 502), A-Smart (SGX: BQC), AEI^ (SGX: AWG), AIMS Property (SGX: BVP), APAC Realty (SGX: CLN), Abterra (SGX: L5I), Acromec (SGX: 43F), Amara (SGX: A34), Amcorp Global (SGX: S9B), AnnAik (SGX: A52), Astaka (SGX: 42S), BBR (SGX: KJ5), BRC Asia (SGX: BEC), BlackGoldNatural (SGX: 41H), Boldtek (SGX: 5VI), Bonvests (SGX: B28), Boustead (SGX: F9D), Boustead Projects (SGX: AVM), Bukit Sembawang (SGX: B61), Bund Center (SGX: BTE), CSC (SGX: C06), CapitaLand (SGX: C31), Casa (SGX: C04), Chemical Industries (SGX: C05), China Great Land (SGX: D50), China International (SGX: BEH), China Real Estate (SGX: 5RA), China Yuanbang (SGX: BCD), Chip Eng Seng (SGX: C29), City Development (SGX: C09), DISA (SGX: 532), Debao Property (SGX: BTF), ETC Singapore (SGX: 1C0), Edition (SGX: 5HG), EnGro Corporation (SGX: S44), Fraser and Neave F&N (SGX: F99), Far East Orchard (SGX: O10), Figtree (SGX: 5F4), First Sponsor (SGX: ADN), Fragrance (SGX: F31), Frasers Property (SGX: TQ5), GYP Properties (SGX: AWS), Gallant Venture (SGX: 5IG), Golden Energy (SGX: AUE), Goodland (SGX: 5PC), GuocoLand (SGX: F17), HL Global Enterprises (SGX: AVX), Hatten Land (SGX: PH0), Heeton (SGX: 5DP), Hiap Hoe (SGX: 5JK), Hiap Seng (SGX: 510), Ho Bee Land (SGX: H13), Hock Lian Seng (SGX: J2T), Hong Fok (SGX: H30), Hong Lai Huat (SGX: CTO), Hong Leong Asia (SGX: H22), Hongkong Land USD (SGX: H78), Hor Kew (SGX: BBP), Huationg Global (SGX: 41B), Hwa Hong (SGX: H19), IPC Corp (SGX: AZA), ISOTeam (SGX: 5WF), Imperium Crown (SGX: 5HT), Jasper Investments (SGX: FQ7), KOP (SGX: 5I1), KSH (SGX: ER0), Keong Hong (SGX: 5TT), Keppel Corp (SGX: BN4), Keppel Reit (SGX: K71U), King Wan (SGX: 554), Koh Brothers (SGX: K75), Koon (SGX: 5DL), Kori (SGX: 5VC), LHN (SGX: 41O), Ley Choon (SGX: Q0X), Lian Beng (SGX: L03), Low Keng Huat (SGX: F1E), Lum Chang (SGX: L19), MMP Resources (SGX: F3V), MYP (SGX: F86), Metro (SGX: M01), OIO (SGX: KUX), OKH Global (SGX: S3N), OKP (SGX: 5CF), OneApex (SGX: 5SY), Oxley (SGX: 5UX), PSL (SGX: BLL), Pacific Century (SGX: P15), Pacific Star Development (SGX: 1C5), Pan Hong (SGX: P36), Pavillon (SGX: 596), Perennial Holdings (SGX: 40S), Pollux Properties (SGX: 5AE), PropNex (SGX: OYY), Raffles Infrastructure (SGX: LUY), Regal International (SGX: UV1), Renaissance United (SGX: I11), Rich Capital (SGX: 5G4), Roxy-Pacific (SGX: E8Z), Ryobi Kiso (SGX: BDN), SHS (SGX: 566), SLB Development (SGX: 1J0), SP Corporation (SGX: AWE), Sasseur Reit (SGX: CRPU), Second Chance (SGX: 528), Sin Heng Mach (SGX: BKA), Sinarmas Land (SGX: A26), SingHaiyi (SGX: 5H0), SingHoldings (SGX: 5IC), Singapore-eDev (SGX: 40V), Sinjia Land (SGX: 5HH), Soilbuild Construction Group (SGX: S7P), Starland (SGX: 5UA), Straits Trading (SGX: S20), Swee Hong (SGX: QF6), Sysma (SGX: 5UO), TA (SGX: PA3), TTJ (SGX: K1Q), Tai Sin Electric (SGX: 500), Thakral (SGX: AWI), Thomson Medical Group (SGX: A50), Tiong Seng (SGX: BFI), Top Global (SGX: BHO), Tosei (SGX: S2D), Transcorp (SGX: T19), Tritech (SGX: 5G9), UIC (SGX: U06), UOA (SGX: EH5), UOL (SGX: U14), USP Group (SGX: BRS), Vibrant Group (SGX: BIP), Wee Hur (SGX: E3B), Wing Tai (SGX: W05), Yanlord Land (SGX: Z25), Yeo Hiap Seng (SGX: Y03), Ying Li International (SGX: 5DM), Yoma Strategic (SGX: Z59), Yongmao (SGX: BKX), Yongnam (SGX: AXB), Yorkshine (SGX: MR8).

3) Singapore Healthcare Giant Stock

– Haw Par Corporation (SGX: H02)

Business performance of Haw Par is relatively stronger in long term than other Wee family stocks, partly due to defensive growing healthcare sector. In fact, over 70% revenue of Haw Par is from investing in other 2 Wee family stocks of UOB Bank (3% share) and UOL (8% share) due to the unique cross-holding structure of 6 Wee Cho Yaw stocks. The hidden valuable assets of Haw Par (through ownership of UOB and UOL) could already justify for the current Haw Par share prices, therefore the healthcare business (eg. tiger balm medical products) is an added bonus for Haw Par stock investors who indirectly also own UOB and UOL stocks.

Haw Par is a strong growth stock, price corrected relatively less than other Wee family stocks during pandemic, currently share price recovers to 43% optimism, near to fair value with some discounts. Potential of Haw Par share price is mainly on its steady business growth, suitable with Buy Low & Hold long term strategy with protection by parent stocks of UOB and UOL.

There are 37 Healthcare Stocks in Singapore including Haw Par (investor has to focus only on giant stocks for investing):

Accrelist Ltd (SGX: QZG), Alliance Healthcare (SGX: MIJ), Aoxin Q & M Dental (SGX: 1D4), Asia Vets Holdings (SGX: 5RE), AsiaMedic (SGX: 505), Asian Healthcare Specialists (SGX: 1J3), Beverly JCG (SGX: VFP), Biolidics (SGX: 8YY), Cordlife (SGX: P8A), First Reit (SGX: AW9U), Haw Par Corporation (SGX: H02), HC Surgical Specialists (SGX: 1B1), Healthway Medical Corporation (SGX: 5NG), Hyphens Pharma International (SGX: 1J5), IHH Healthcare (SGX: Q0F), ISEC Healthcare (SGX: 40T), IX Biopharma (SGX: 42C), Lonza Group (SGX: O6Z), Medinex (SGX: OTX), Medtecs International Corporation (SGX: 546), OUE Lippo Healthcare (SGX: 5WA), ParkwayLife Reit (SGX: C2PU), Pharmesis International (SGX: BFK), Q&M Dental Group (SGX: QC7), QT Vascular (SGX: 5I0), Raffles Medical Group (SGX: BSL), RHT Health Trust (SGX: RF1U), Riverstone Holdings (SGX: AP4), SingMedical Group (SGX: 5OT), Suntar Eco-City (SGX: BKZ), TalkMed (SGX: 5G3), Thomson Medical Group (SGX: A50), Tianjin Zhong Xin Pharmaceutical Group (SGX: T14), Top Glove Corporation (SGX: BVA), Trendlines Group (SGX: 42T), UG Healthcare Corporation (SGX: 41A), Vicplas International (SGX: 569).

Filed Under: Fundamental Analysis, Market Cycle Investing, Market Outlook, Stock Market Tagged: bank stock, Healthcare Stocks, Property Stocks, wee chow yaw

4 Global Bank Stocks with Vaccine after Phase 3 COVID-19 (苦尽甘来)

Posted on December 14, 2020 Written by Dr Tee (Ein55)

Vaccination is started globally and Singapore will enter Phase 3, bringing hope to end COVID-19 pandemic, as well as light at the end of tunnel for global bank stocks in crisis to recover with great discounted prices.

In this article, you will learn from Dr Tee on 4 Global Giant Bank Stocks of 4 Countries for longer term investing and / or short term trading with COVID-19 recovery stock rally. Bonus for readers who could read every words of the entire article, learning unique strategy to position in each giant bank stocks and also generalized strategy for all bank stocks.

1) Singapore Giant Bank Stock: OCBC Bank (SGX: O39)

2) Malaysia Giant Bank Stock: Public Bank (Bursa: 1295)

3) US Giant Bank Stock: Wells Fargo Bank (NYSE: WFC)

4) HK / China Giant Bank Stock: ICBC Bank (HKEX: 1398)

During COVID-19 pandemic, most bank stocks suffer in businesses mainly due to higher NPL (Non-Performing Loan) and very low interest rate. As a result, many global bank stocks prices are significantly corrected to low optimism level. However, “Buy Low” may not able to “Sell High” in future if a bank business is affected permanently.

Therefore, it is crucial to focus only on giant bank stocks for market cycle investing during COVID-19 stock crisis with Buy Low Sell High strategy. In general, most bank stocks would follow the global stock markets to recover in share prices, especially with improvement in bank businesses and stronger global economy after vaccination is implemented in most countries, allowing life back to normal as before COVID-19.

A giant stock may not need to be big in size, even a small company could be a giant stock. Let’s study 4 giant bank stocks (following Dr Tee criteria) recovering from low optimism in 4 stock exchanges interested by readers:

1) Singapore Giant Bank Stock: OCBC Bank (SGX: O39)

OCBC Bank is the second largest bank in Singapore, businesses during pandemic and share prices in short term (V-shape recovery) are generally aligned with DBS Bank and UOB Bank. These Top 3 largest Singapore banks have to set aside provisions to prepare for higher default and NPL. Singapore MAS also requires the local banks to limit the dividend distributions to 60% of last financial year. This has resulted OCBC Bank stock prices to fall by about 40% during COVID-19 pandemic.

There are 30 Banking & Finance Stocks in Singapore including OCBC Bank (investor has to focus only on giant stocks for investing):

The uniqueness of OCBC is the optimism level (34%) is relatively lower than DBS and UOB, therefore having more upside potential in medium term when COVID-19 fear is fading with global vaccination and also entering of Phase-3 COVID-19 measures in Singapore, allowing stronger growth in local economy which needs banks services. While waiting for recovery of share prices to fair value, OCBC stock investors could enjoy bonus with 3+% dividend yield (6% if there is no MAS limitation), much higher than bank interest rate less than 0.5%.

Many investors “play safe” during stock crisis by keeping the money as cash deposits in banks, providing nearly free loan for banks to expand business and multiply wealth. A smart investor would carefully select a portfolio of giant stocks (including banks) to leverage on strong business fundamental to grow in share prices.

2) Malaysia Giant Bank Stock: Public Bank (Bursa: 1295)

Public Bank is the third largest bank in Malaysia, businesses during pandemic and share prices in short term (V-shape recovery) are generally aligned with other 34 Banking & Finance Stocks in Malaysia (investor has to focus only on giant stocks for investing):

AFFIN (Bursa: 5185), ABMB (Bursa: 2488), ALLIANZ (Bursa: 1163), AMBANK (Bursa: 1015), APEX (Bursa: 5088), BIMB (Bursa: 5258), BURSA (Bursa: 1818), CIMB (Bursa: 1023), ECM (Bursa: 2143), ELKDESA (Bursa: 5228), FINTEC (Bursa: 0150), HLBANK (Bursa: 5819), HLCAP (Bursa: 5274), HLFG (Bursa: 1082), INSAS (Bursa: 3379), JOHAN (Bursa: 3441), KENANGA (Bursa: 6483), KUCHAI (Bursa: 2186), LPI (Bursa: 8621), MAA (Bursa: 1198), MAYBANK (Bursa: 1155), MBSB (Bursa: 1171), MANULFE (Bursa: 1058), MNRB (Bursa: 6459), MPHBCAP (Bursa: 5237), OSKVI (Bursa: 0053), P&O (Bursa: 6009), PBBANK (Bursa: 1295), RCECAP (Bursa: 9296), RHBBANK (Bursa: 1066), TAKAFUL (Bursa: 6139), TA (Bursa: 4898), TUNEPRO (Bursa: 5230).

Major Banks in Malaysia (Public Bank, Maybank, CIMB Bank, RHB Bank, Hong Leong Bank, etc) have suffered triple crisis over the past few years: economy slowdown during COVID-19 pandemic, low bank interest rate and also political instability. This has resulted Public Bank stock prices to fall by nearly 50% over the past few years, a very significant discount.

The uniqueness of Public Bank is relatively lower optimism level (25%) with stronger business fundamental than other Malaysia bank stocks, therefore having more upside potential in medium term when COVID-19 fear is fading with global vaccination and also less CMCO COVID-19 measures in Malaysia, allowing stronger growth in local economy which needs banks services. While waiting for recovery of share prices to fair value, Public Bank stock investors could enjoy bonus with 2% dividend yield, comparable with bank interest rate.

3) US Giant Bank Stock: Wells Fargo Bank (NYSE: WFC)

Wells Fargo Bank is the third largest bank in USA, businesses during pandemic and share prices in short term (V-shape recovery) are generally aligned with hundreds of Banking & Finance Stocks in US, including JP Morgan (NYSE: JPM), Bank of America (NYSE: BAC), Citi Group (NYSE: C), Blackrock (NYSE: BLK), etc.

Major Banks in US have suffered correction in share prices due to US lockdown in Q2/2020 pandemic and fear of COVID-19 pandemic. This has resulted Wells Fargo Bank stock prices to fall over 50% over the past few years, a very significant discount.

The uniqueness of Wells Fargo is lower optimism level (25%) than the peers but this is the result of weaker businesses in the last few quarters of pandemic. Therefore, Wells Fargo is more suitable for crisis investing, having more upside potential in medium term when COVID-19 fear is fading with global vaccination and also more QE (Quantitative Easing) in US after Joe Biden officially becomes US President on 20 Jan 2021, allowing stronger growth in local economy which needs banks services. While waiting for recovery of share prices to fair value, Wells Fargo Bank stock investors could enjoy bonus with 5+% dividend yield, much higher than the Fed ultra-low interest rate of 0-0.25%.

Since Wells Fargo Bank has relatively weaker business fundamental (despite large in business size), diversification is required for crisis investing in this marginal giant bank stock. In fact, there are other much smaller but stronger fundamental bank stocks in US with similar low optimism level as Wells Fargo Bank but much safer for investing in longer term. A smart investor may consider those state (not national) bank giant stocks, having even more upside potential but mostly are undervalue as they are less well known internationally.

4) HK / China Giant Bank Stock: ICBC Bank (HKEX: 1398)

ICBC Bank is the largest bank in China and the world, businesses during pandemic and share prices in short term (V-shape recovery) are generally aligned with other 14 major bank stocks / H-Shares in Hong Kong (investor has to focus only on giant stocks for investing):

Bank of China Hong Kong (HKEX: 2388), Hang Seng Bank (HKEX: 11), China Construction Bank (HKEX: 939), CM Bank (HKEX: 3968), Chong Hing Bank (HKEX: 1111), Bank of East Asia (HKEX: 23), Bank of Communication (HKEX: 3328), Dahsing Banking (HKEX: 2356), ICBC Bank (HKEX: 1398), Citic Bank (HKEX: 998), Bank of China (HKEX: 3988), Minsheng Bank (HKEX: 1988), HSBC Bank (HKEX: 5), Stanchart Bank (HKEX: 2888).

Major Banks in Hong Kong / China have suffered correction in share prices due to US-China trade war, China lockdown in Q1/2020 pandemic and global fear of COVID-19 pandemic. This has resulted ICBC Bank stock prices to fall nearly 50% over the past few years, a very significant discount.

The uniqueness of ICBC is recovering from lower optimism level (39%), more cyclical than the peers in medium term (every few years) with stable business businesses. Therefore, ICBC is more suitable for cyclic investing, having more upside potential in medium term when COVID-19 fear is fading with global vaccination and also less tension in US-China trade war after Joe Biden officially becomes US President on 20 Jan 2021, allowing stronger growth in local economy which needs banks services. While waiting for recovery of share prices to fair value, ICBC Bank stock investors could enjoy bonus with 6% dividend yield, much higher than current very low interest rates in Hong Kong banks.

There are other giant stocks in Hong Kong / China which are stronger and lower optimism than ICBC Bank, despite smaller in size. In fact, the largest local bank in Hong Kong is HSBC Bank but it is a poor bank stock (non-giant stock with weak fundamental). A smart investor would only consider giant bank stocks, not buying any other bank stocks at historical low prices (a common mistake for beginner investors to buy at “cheap” prices without considering the declining value in businesses), having even more upside potential with much lower risk. Risk management with a portfolio of giant stocks is key for crisis investing, so that “Buy Low” would have higher chance of “Sell High” in future.

Filed Under: Fundamental Analysis, Market Optimism, Stock Market, Technical Analysis, Value Investing Tagged: bank stock, crisis stock, cyclic investing stock

Ein55 Charity Course on Global Growth Stocks (为善最乐)

Posted on December 7, 2020 Written by Dr Tee (Ein55)

In recent Ein55 Charity Course on Global Growth Stocks, we have raised fund of $21,000 to help needy families in Singapore. Under the spirit of charity, Dr Tee decides to share 4 global growth giant stocks in 4 countries with readers (read each details in this article to fully understand on how to position in these giant stocks):
1) Singapore Growth Stock – Valuetronics Holdings (SGX: BN2)
2) Malaysia Growth Stock – Allianz Malaysia (Bursa: 1163)
3) US Growth Stock – Amazon (NASDAQ: AMZN)
4) Hong Kong / China Growth Stock – Tencent (HKEx: 0700)

Dr Tee, Ein55 Mentors & Graduates have together organized 10 charity investment courses (REITs in Nov 2015, May 2017 and May 2019, High Dividend Stocks in Mar 2016, Oct 2017 and Nov 2019, Global Growth Stocks in Apr 2018 and Nov 2020, and Discounted NAV Stocks in Sep 2016 and Nov 2018) in the past 5 years, donating net income of around $197,000 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.

Let’s learn these 4 growth giant stocks in 4 countries, understanding the business nature, investment clock and unique strategy.

1) Singapore Growth Stock – Valuetronics Holdings (SGX: BN2)
Valuetronics is an integrated electronics manufacturing services (EMS) provider, offering a competitive and broad combination of Design, Engineering, and Manufacturing services. It has 2 main business segments: Industrial & Commercial Electronics and Consumer Electronics.

Business of Valuetronics has been affected by both COVID-19 pandemic and US-China trade war. It is recovering steadily from lower optimism level in COVID-19 stock crisis. Valuetronics is also a good dividend stock which has paid over 5% dividend yield over the past 10 years of history. Bullish semiconductor / 5G sector could provide additional support to Valuetronics business. Biden as new US president likely would not make US-China trade war worse than the current condition.

Cyclic investing strategy (Buy Low Sell High) may be considered but stable regional political economy is crucial for Valuetronics. Defensive (nearly no debt) and dividend growth strategies could be integrated.

2) Malaysia Growth Stock – Allianz Malaysia (Bursa: 1163)
Allianz Malaysia is a diversified insurance company that provides life and general insurance in Malaysia for automotive, home, and personal insurance. Insurance company by default is protected by probability of nature through adjustment in premiums with reference to statistics (eg. past accidents). Allianz Malaysia is an insurance giant stock with strong business fundamental, besides capital gains, it could generate stable dividend of over 3% yield yearly (based on current share prices).

Allianz Malaysia is near fair value of mid optimism level for long term and medium term. It may be considered as Mid-fielder stock to balance between capital gains and passive incomes. Buy at or below fair price and hold for longer term is a valid stock investing strategy.

3) US Growth Stock – Amazon (NASDAQ: AMZN)
Amazon.com engages in the provision of online retail shopping services. It operates through the following business segments: North America, International, and Amazon Web Services (AWS). Amazon surpasses competitor, Microsoft (NASDAQ: MSFT), becoming world largest company by market cap.

Amazon has strong growth in business, highly cash generative, supporting its long term and medium share prices at higher optimism level which is more suitable to apply trend-following strategy for stock trading. During COVID-19 pandemic, many technology giant stocks including Amazon have experienced significant capital gains, mainly due to rising internet businesses. However, when fear of pandemic is fading with availability of effective vaccine, these technology stocks could suffer price correction or slower growth in share prices.

Since NASDAQ is at very high optimism level, moderation is required when positioning in technology stocks as there is potential dotcom bubble version 2.0 (after version 1.0 in Year 2000). Best time to invest in technology giant stocks is usually during global financial crisis. Current stock market is more suitable for short term to medium term trading for technology stocks.

4) Hong Kong / China Growth Stock – Tencent (HKEx: 0700)
Tencent is an internet / technology stock with diversified business segments: Value-Added Services, FinTech and Business Services, Online Advertising, etc. Popular Apps are Weixin, WeChat, QQ, etc. Tencent also invests in other giant stocks, eg. Meituan Dianping (HKEx: 3690), JD.COM (NASDAQ: JD), Tesla (NASDAQ: TSLA) and many others.

In long term perspective, Tencent is still at moderate low optimism but more suitable for longer term investor with strong holding power, supported by strong business fundamentals (yearly monitoring is required to ensure it is still a giant stock following Dr Tee criteria). In medium term, Tencent has reached a higher optimism level, currently under correction (together with technology sector) due to recovery of COVID-19 pandemic, trend-following is required for trading.

Filed Under: Fundamental Analysis, Market Outlook, Stock Market Tagged: Charity Course, growth stock

Dr Tee Free 3hr Video Course: Defensive High Growth Singapore Giant Stocks (防御型高成长的新加坡强巨股)

Posted on November 29, 2020 Written by Dr Tee (Ein55)

In this Dr Tee 3-hr video education (Defensive High Growth Singapore Giant Stocks), you will learn:
1) COVID-19 Stock Crisis Recovery Rally with Sector Rotations
2) Singapore and Malaysia Stock Market Outlook 2021
3) Defensive Singapore Giant Stocks
4) Dividend Singapore Giant Stocks / REITs
5) High Growth Singapore Giant Stocks
6) Short Term Trading and Long Term Investing Strategies during Pandemic
7) Many Case Studies with Q&A of Audience

Here is Dr Tee Free 3-hr Video Course (suitable for bilingual learners: verbal presentation in Chinese, written notes in English, technical charts for everyone). Enjoy and give your comments for improvement. You may subscribe to Dr Tee Youtube channel (Ein Tee) for future Dr Tee video talks.

Dr Tee Video Course: https://youtu.be/KkV9MvZypCA

在这Dr Tee 三小时教育视频（防御型高成长的新加坡强巨股），您可学习：
1） COVID-19 股灾的牛市反弹良机。
2）新加坡与马来西亚2021股市展望。
3）新加坡成长股。
4）新加坡高息股、房地产信托股。
5）新加坡成长股。
6）短期交易与长期投资策略。
7）现场观众个股分析与问答环节。

这儿是 Dr Tee 免费三小时华语课程（适合双语学员：华语表达，英语讲义，图表皆通）。请欣赏鄙作，留言求进步。您可订阅 Dr Tee Youtube 频道(Ein Tee)，链接未来投资视频。

Dr Tee 华语视频: https://youtu.be/KkV9MvZypCA

Filed Under: Fundamental Analysis, Market Cycle Investing, Market Outlook, Stock Market Tagged: defensive stock, growth stock, High Dividend Stocks, Singapore REITs, video education

60 Singapore Electronics Technology Stocks (雷电交加)

Posted on October 11, 2020 Written by Dr Tee (Ein55)

Electronics industry has been backbone of Singapore economy for decades since independence. In the current internet era, demand for electronics related products has been increasing, supporting the share prices. Therefore, an investor may consider 60 electronics technology stocks in Singapore, especially those with growing businesses.

In this article, you will learn from Dr Tee on 9 Singapore Electronics Giant Stocks 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, additional references on 5G related stocks.

1) Electronics Giant Stocks

– Venture Corporation (SGX: V03)

– Valuetronics Holdings (SGX: BN2)

2) Computer / IT Giant Stocks

– Powermatic Data Systems (SGX: BCY)

– Ban Leong Technologies (SGX: B26)

3) Semiconductor / 5G Giant Stocks

– CEI Limited (SGX: AVV)

– Micro-Mechanics Holdings (SGX: 5DD)

– AEM Holdings (SGX: AWX)

– UMS Holdings (SGX: 558)

– Frencken Group (SGX: E28)

Electronics industry consists of many levels of products in value chain, from semiconductor to circuit boards to integrated electronics products. Singapore electronics industry mostly plays the roles as suppliers or subcontractors for other international electronics products. Electronics (especially for semiconductor) industry is cyclical in nature, stock is usually bullish with rising economy, bearish with declining economy.

Current COVID-19 crisis (雷电交加) does not significantly affect the electronics stocks due to the rising demand of certain electronics products (due to longer stay at home) and also support of 5G technology wave (especially for semiconductor related stocks). Most of the Singapore electronics technology stocks are at higher optimism level with short term trading opportunity while some stocks may even be considered for long term investing with stable dividend payment as passive incomes, which is uniquely different from US electronics technology stocks.

There are 60 Electronics Technology Stocks in Singapore (investor has to focus only on giant stocks for investing):

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).

From the table sorted below for 60 Singapore electronics stocks, only half are profitable (33 / 60 stocks were making money in businesses last year). Therefore, careful choices of giant electronics stocks are critical, some are at lower optimism share prices due to either stock market fear or actual business is affected during COVID-19 pandemic.

Most Singapore electronics stocks don’t pay dividend (only 23 / 60 stocks pay dividend). Even if they do, for example, Thakral Corporation (SGX: AWI) and CDW Holding (SGX: BXE) with about 10% dividend yield, are not good dividend stocks due to weaker business fundamental.

Many electronics stocks (36 / 60) have Price-to-Book ratio ($ / NAV = PB) < 1 with discount over asset but majority do not have high quality asset related to cash or properties.

For most Singapore electronics stocks, main strategy would be momentum trading or dividend investing, therefore business growth is much more important than undervalue price to sustain the dividend payment in longer term.

No	Name	Code	ROE (%)	Dividend Yield (%)	PB = Price /NAV
1	Accrelist Limited	QZG	–	–	0.31
2	Acma Limited	AYV	–	–	0.31
3	Advanced Systems Automation	5TY	–	–	–
4	Adventus Holdings	5EF	–	–	1.71
5	AEI Corporation	AWG	–	–	0.95
6	AEM Holdings	AWX	39.28	1.4	5.25
7	Allied Technologies Limited	A13	–	–	0.30
8	Amplefield Limited	AOF	2.29	–	0.43
9	Asian Micro Holdings	585	1.39	–	2.00
10	ASTI Holdings	575	9.83	–	0.25
11	Avi Tech Electronics	BKY	11.66	4.7	1.42
12	Ban Leong Technologies	B26	9.00	5.7	0.79
13	CDW Holding	BXE	–	11.3	0.44
14	CEI Limited	AVV	18.16	1.636	1.97
15	CFM Holdings	5EB	–	–	0.52
16	Chuan Hup Holdings	C33	–	4.9	0.56
17	CPH Limited	539	–	–	0.66
18	Creative Technology	C76	–	–	1.32
19	Datapulse Technology	BKW	–	–	0.58
20	Dragon Group International	MT1	133.17	–	0.09
21	Dutech Holdings	CZ4	7.98	3.9	0.45
22	Duty Free International	5SO	2.01	5.814	0.78
23	Ellipsiz Limited	BIX	–	1.7	0.45
24	Excelpoint Technology	BDF	2.08	–	0.36
25	Frencken Group	E28	14.35	3.1	1.29
26	Global Invacom Group	QS9	–	–	0.39
27	Global Testing Corporation	AYN	–	–	0.23
28	GP Industries	G20	5.20	2.4	0.67
29	Grand Venture Technology	JLB	9.83	–	1.92
30	HGH Holdings	5GZ	–	–	0.30
31	Hu An Cable Holdings	KI3	–	–	0.78
32	ICP Limited	5I4	–	–	1.0227
33	Jadason Enterprises	J03	–	–	0.69
34	JEP Holdings	1J4	10.85	–	1.13
35	Karin Technology Holdings	K29	1.12	4.7	0.89
36	Ley Choon Group	Q0X	–	–	0.98
37	Libra Group	5TR	–	–	-0.83
38	Manufacturing Integration Technology	M11	197.04	–	1.10
39	Maruwa Yen1k	M12	–	–	–
40	MeGroup Limited	SJY	2.88	0.4	1.33
41	Micro-Mechanics Holdings	5DD	25.27	4.4	5.47
42	Plastoform Holdings	AYD	–	–	-0.34
43	Polaris Limited	5BI	1.43	–	3.75
44	Powermatic Data Systems	BCY	14.265	–	1.4844
45	Renaissance United	I11	0.91	–	0.16
46	Serial System	S69	5.77	4.73	0.36
47	SEVAK Limited	BAI	2.54	–	0.39
48	Shinvest Holding	BJW	61.51	3	0.45
49	Sunright Limited	S71	2.02	0.882	0.50
50	Sunrise Shares Holdings	581	–	–	1.42
51	SUTL Enterprise	BHU	4.26	4.6	0.63
52	Thakral Corporation	AWI	6.71	9.524	0.39
53	The Place Holdings	E27	0.09	–	0.68
54	Trek 2000 International	5AB	–	–	0.42
55	TT International	T09	–	–	-0.06
56	UMS Holdings	558	13.79	3.485	2.05
57	Valuetronics Holdings	BN2	14.53	6.48	1.08
58	Venture Corporation	V03	14.55	3.578	2.23
59	Willas-Array Electronics Holdings	BDR	–	–	0.31
60	World Precision Machinery	B49	1.85	5.364	0.34

An investor has to be selective in investing or trading as many electronics stocks in Singapore are weak (buy low may get lower in share price due to weak business, especially in a bearish stock market), despite they belong to a promising electronics industry but the competition is too intense, only some electronics stocks could be profitable in longer term.

Here, let’s focus on 9 Singapore electronics technology giant stocks over 3 main categories:

1) Electronics Giant Stocks

– Venture Corporation (SGX: V03)

– Valuetronics Holdings (SGX: BN2)

Venture Corporation engages in the design, manufacture, assemble, and distribution of electronics related products. Venture is a highly cyclical stock, not suitable for long term investing (despite very low debt with consistent dividend payment over the past decade, current dividend yield is nearly 4%) as the potential capital loss during bearish market cycle is much more significant.

Venture may be considered for medium term trading, especially after the share prices dropped to half of the peak prices over the past 2 years, currently recovering gradually from Covid-19 stock crisis with acceptable impact on its business.

Venture is the largest market cap (but only a marginal giant stock based on Dr Tee criteria) among 60 Singapore electronics stocks and the only technology stock in 30 STI component stocks:

DBS Bank (SGX: D05), Singtel (SGX: Z74), OCBC Bank (SGX: O39), UOB Bank (SGX: U11), Wilmar International (SGX: F34), Jardine Matheson Holdings JMH (SGX: J36), Jardine Strategic Holdings JSH (SGX: J37), Thai Beverage (SGX: Y92), CapitaLand (SGX: C31), Ascendas Reit (SGX: A17U), Singapore Airlines (SGX: C6L), ST Engineering (SGX: S63), Keppel Corp (SGX: BN4), Singapore Exchange (SGX: S68), HongkongLand (SGX: H78), Genting Singapore (SGX: G13), Mapletree Logistics Trust (SGX: M44U), Jardine Cycle & Carriage (SGX: C07), Mapletree Industrial Trust (SGX: ME8U), City Development (SGX: C09) , CapitaLand Mall Trust (SGX: C38U), CapitaLand Commercial Trust (SGX: C61U), Mapletree Commercial Trust (SGX: N2IU), Dairy Farm International (SGX: D01), UOL (SGX: U14), Venture Corporation (SGX: V03), YZJ Shipbldg SGD (SGX: BS6), Sembcorp Industries (SGX: U96), SATS (SGX: S58), ComfortDelGro (SGX: C52).

Unlike US and Hong Kong stock markets which have more heavy weigh technology stocks, Singapore stock market depends more on traditional industries (eg. bank and property stocks) which are cyclical in nature, therefore STI is at lower optimism level.

Valuetronics operates in two segments, Consumer Electronics (CE), and Industrial and Commercial Electronics (ICE). It offers design, engineering, manufacturing, and supply chain support services for electronics products.

Valuetronics is a much stronger electronics stock with nearly no debt, suitable for both growth investing and dividend investing. However, the company share prices are at lower optimism level, mainly due to negative stock market sentiment with potential future business affected by both COVID-19 and US-China trade war.

Crisis investing strategy many be considered for Valuetronics, collecting dividend payments (about 6% dividend yield, preparing for worst case of only 3% dividend yield which is still better than 0.5% interest for cash despot in bank) during bearish market while waiting for rising share prices when market sentiment is reversed from negative to positive with support of better business.

2) Computer / IT Giant Stocks

– Powermatic Data Systems (SGX: BCY)

– Ban Leong Technologies (SGX: B26)

Powermatic Data Systems manufactures, sells, markets, and distributes wireless connectivity products (related to computers). Powermatic Data Systems is a cyclical stock, both in share prices and businesses, following the electronics sector cycle. Over the past few years, businesses have been growing well, supporting the share prices to higher optimism level.

Powermatic Data Systems may be considered for mid-term investing to ride the rising wave of global electronics (including computer) industry. However, the growth is much slower compared with other high-tech stocks, patience is required. The company has low debt but long term optimism level is high, therefore not suitable for long term investing.

Ban Leong Technologies engages in the wholesale and distribution of computer peripherals, accessories, and other multimedia products in Singapore and internationally. It is the smallest market cap (also a penny stock) among the giant electronics stocks but having strong business fundamental with lower debt.

Ban Leong is near to fair price, may be considered for longer term dividend investing (current dividend yield is nearly 6%) when optimism level is lower for share prices, helping to maximize the potential upside, compensating for the slower growth.

Besides Powermatic Data Systems and Ban Leong Technologies, there are other 28 IT Stocks in Singapore, making money with Information Technology (related to electronics industry):

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).

3) Semiconductor / 5G Giant Stocks

– CEI Limited (SGX: AVV)

– Micro-Mechanics Holdings (SGX: 5DD)

– AEM Holdings (SGX: AWX)

– UMS Holdings (SGX: 558)

– Frencken Group (SGX: E28)

CEI provides contract manufacturing services for the industrial equipment market (eg. printed circuit board, box-build assembly, semiconductor equipment, etc). CEI is also a Temasek stock.

CEI is cyclical stock, prices at high optimism currently, supported by rising electronics and semiconductor industry, partly supported by higher demand of 5G. Despite it is a good dividend stock, the cyclical price behavior at high optimism make it not suitable for investing at the moment. The price trend is also too stable over the past few years to justify for trading. A more suitable action could be “wait” for potential investors when optimism level is much lower in future.

There are other 5G related stocks which may benefit in shorter term trading, eg. Micro-Mechanics, AEM, UMS and Frencken. Trend-following strategy is required for trading of technology stocks as their long term optimism levels are at higher position, potential risk could be higher for longer term investors when semiconductor cycle becomes bearish in future.

Dr Tee has written another article with more details of these 5G stocks: https://www.ein55.com/2020/05/5-singapore-semiconductor-5g-stocks/

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

Filed Under: Fundamental Analysis, Market Cycle Investing, Stock Market Tagged: 5G stock, semiconductor stock, technology stock

111 Singapore S-Chip and Greater China Stocks (龙潭虎穴)

Posted on October 2, 2020 Written by Dr Tee (Ein55)

China is world No 2 economy, therefore there are many China business related stocks in the world (Singapore, China, Hong Kong, Taiwan, US). The quality of China related stocks could vary significantly, including 111 S-Chip stocks in Singapore with 20% weak stocks are suspended and also some strong China stocks could double the share price in a short period.

In this article, you will learn from Dr Tee on 4 China related Giant Stocks which are efficient in making money with strong business growth in Greater China market (China, Hong Kong, Taiwan). Bonus for readers who could read every words of the entire article, learning unique strategy for each giant stock.

1) Singapore All-Rounded Giant Stock (S-Chip / A-Share)

– Tianjin Zhongxin Pharmaceutical Group (SGX: T14 / China Shanghai: 600329, 天津中新药业)

2) China / Hong Kong Giant Bank Stock (H-Share / A-Share)

– Industrial And Commercial Bank Of China, ICBC (China Shanghai: 601398 / HKEX: 1398, 中國工商銀行)

3) China F&B Giant Stock (A-Share)

– Kweichow Moutai (China Shanghai: 600519, 貴州茅台酒)

4) Taiwan Technology Giant Stock (ADR)

– Taiwan Semiconductor Manufacturing, TSMC (Taiwan: 2330 / NYSE: TSM, 台積電)

After China joining WTO since 2001, it has opened up its door to the world, including many global stocks in different stock markets, eg. Singapore (S-Chip), China (A-Share), Hong Kong (H-Share), US (ADR), etc. Greater China market includes China, Hong Kong, Macao and Taiwan, which is a fast rising region, attracting global investors.

In fact, reputation of S-Chip (China business with stock listed in Singapore) is relatively low as 20% of these stocks (24 / 111 stocks) have been suspended as of now due to various reasons, including poor businesses, not following SGX codes of business practices, potential scandals, etc. This concern is also observed in global stock exchanges for other China related stocks in Hong Kong (H-Share) or even in US, eg. Luckin Coffee (NASDAQ: LK) with “excellent” financial report but proven was not reported truthfully. Greed could make a business choose shortcut to achieve the goal. So, a stock investor has to make an integrated analysis of China related stocks, taking calculated risks to ride the uptrend wave of businesses.

There are 111 S-chip or China related Stocks in Singapore, making money with businesses in Greater China (龙潭虎穴):

AnAn International (SGX: Y35), Anchun International Holdings (SGX: BTX), AnnAik Limited (SGX: A52), ARA LOGOS Logistics Trust (SGX: K2LU), BM Mobility (SGX: I9T), Bund Center Investment Ltd (SGX: BTE), CapitaLand Retail China Trust (SGX: AU8U), Chasen Holdings (SGX: 5NV), China Aviation Oil Singapore Corp (SGX: G92), China Environment (SGX: 5OU), China Everbright Water (SGX: U9E), China Fishery (SGX: B0Z), China Great Land (SGX: D50), China Haida (SGX: C92), China Hongxing Sports (SGX: BR9), China International Holdings (SGX: BEH), China Jishan Holdings (SGX: J18), China Mining (SGX: BHD), China Paper Holdings (SGX: C71), China Real Estate Group (SGX: 5RA), China Sky Chem (SGX: E90), China Sports (SGX: FQ8), China Yuanbang Property Holdings (SGX: BCD), China Kangda Food Company (SGX: P74), China Kunda Technology Holdings (SGX: GU5), , Combine Will International Holdings (SGX: N0Z), COSCO Shipping International Singapore (SGX: F83), Courage Investment Group (SGX: CIN), Darco Water Technologies (SGX: BLR), Debao Property Development (SGX: BTF), Dukang Distillers Holdings (SGX: BKV), Dutech Holdings (SGX: CZ4), Emerging Towns & Cities Singapore (SGX: 1C0), Fabchem China (SGX: BFT), First Sponsor Group (SGX: ADN), Full Apex (SGX: BTY), Fuxing China Group (SGX: AWK), Global Invacom Group (SGX: QS9), Green Build Technology (SGX: Y06), Guoan International (SGX: G11), Healthway Medical Cor (SGX: 5NG), Hi-P International (SGX: H17), Hutchison Port Holdings Trust SGD (SGX: P7VU), Hutchison Port Holdings Trust USD (SGX: NS8U), Hu An Cable Holdings (SGX: KI3), Hyflux Limited (SGX: 600), IEV Holdings (SGX: 5TN), Japfa Limited (SGX: UD2), Jason Marine Group (SGX: 5PF), JES International Holdings (SGX: EG0), Jiutian Chemical Group (SGX: C8R), Joyas International Holdings (SGX: E9L), KOP Limited (SGX: 5I1), LCT Holdings (SGX: BJL), Leader Environmental Technologies Limited (SGX: LS9), Lion Asiapac Limited (SGX: BAZ), Luzhou Bio-chem Technology Limited (SGX: L46), Mapletree North Asia Commercial Trust (SGX: RW0U), Memstar Technology (SGX: 5MS), Mercurius Capital Investment (SGX: 5RF), Midas Holdings (SGX: 5EN), Mirach Energy Limited (SGX: AWO), MMP Resources Ltd (SGX: F3V), Malaysia Smelting Corp (SGX: NPW), Natural Cool Holdings (SGX: 5IF), Net Pacific Financial Holdings (SGX: 5QY), Nordic Group (SGX: MR7), Ouhua Energy Holdings (SGX: AJ2), Pacific Andes Resources Development (SGX: P11), Pacific Century Regional Developments (SGX: P15), Pan Hong Holdings Group (SGX: P36), PEC Limited (SGX: IX2), Plastoform Holdings (SGX: AYD), Raffles Infrastructure Holdings (SGX: LUY), Sapphire Corp (SGX: BRD), SBI Offshore Limited (SGX: 5PL), SembCorp Industries Limited (SGX: U96), Shanghai Turbo Enterprises (SGX: AWM), Shangri-La Asia Limited (SGX: S07), SIIC Environment Holdings (SGX: BHK), Sinarmas Land Limited (SGX: A26), Sincap group (SGX: 5UN), Sing Holdings (SGX: 5IC), Sinjia Land Limited (SGX: 5HH), Sino Grandness Food Industry Group (SGX: T4B), Sinopipe Holdings (SGX: X06), Sinostar PEC Holdings (SGX: C9Q), Starland Holdings (SGX: 5UA), Straco Corporation (SGX: S85), Sunpower Group (SGX: 5GD), Suntar Eco City (SGX: BKZ), SunVic Chemical Holdings (SGX: A7S), Swing Media Technology Group (SGX: BEV), Thakral Corporation (SGX: AWI), Tianjin Zhongxin Pharmaceutical Group (SGX: T14), Tiong Seng Holdings (SGX: BFI), United Food Holdings (SGX: AZR), USP Group Limited (SGX: BRS), Valuetronics Holdings (SGX: BN2), Willas-Array Electronics Holdings (SGX: BDR), Wilmar International (SGX: F34), World Precision Machinery (SGX: B49), Yamada Green Resources (SGX: BJV), Yanlord Land Group (SGX: Z25), Yongmao Holdings (SGX: BKX), Yunnan Energy International (SGX: T43), Yangzijiang Shipbuilding YZJ CNY (SGX: SO7), Yangzijiang Shipbuilding YZJ SGD (SGX: BS6), Zhongmin Baihui Retail Group (SGX: 5SR).

From the table sorted below for 111 China related stocks in Singapore, only half are profitable (62 / 11 stocks were making money in businesses last year). Therefore, careful choices of giant China stocks are critical, some are at lower optimism share prices due to either stock market fear or actual business is affected during COVID-19 pandemic.

Most China related stocks in Singapore don’t pay dividend (only 41 / 11 stocks pay dividend). Even if they do, for example, Hutchison Port Holdings Trust (SGX: P7VU / NS8U) with over 9% dividend yield, are not good dividend stocks (despite backed by Li Ka-shing, Hong Kong richest man) due to weaker business fundamental.

Many S-Chip stocks (81 / 11) have Price-to-Book ratio ($ / NAV = PB) < 1 with discount over asset but majority do not have high quality asset related to cash or properties. “Buy Low” may get lower in share prices, a common mistake by beginner investor to buy a stock cheaply (eg. at historical low price) without considering the business fundamental and economic moat.

For most local and global China related stocks, main strategy would be cyclic investing or swing trading, therefore understanding of business and stock market cycle is much more important than undervalue price or dividend payment.

No	Name	Code	ROE (%)	Dividend Yield (%)	PB = Price /NAV
1	Alibaba Pictures Group	S91	–	–	1.80
2	AnAn International	Y35	–	–	1.23
3	Anchun International Holdings	BTX	3.94	10.5	0.04
4	AnnAik Limited	A52	3.34	4.7	0.31
5	ARA LOGOS Logistics Trust	K2LU	–	8.8	1.07
6	BM Mobility	I9T	–	–	4.38
7	Bund Center Investment Ltd	BTE	6.35	1.9	0.94
8	CapitaLand Retail China Trust	AU8U	8.83	8.3	0.72
9	Chasen Holdings	5NV	–	–	0.39
10	China Aviation Oil Singapore Corp	G92	11.96	5.1	0.70
11	China Environment	5OU	–	–	0.36
12	China Everbright Water	U9E	9.46	6.0	0.39
13	China Fishery	B0Z	5.13	–	0.15
14	China Great Land	D50	–	–	-0.19
15	China Haida	C92	–	–	0.05
16	China Hongxing Sports	BR9	–	–	-383.33
17	China International Holdings	BEH	5.61	–	0.32
18	China Jishan Holdings	J18	–	–	1.81
19	China Mining	BHD	–	–	0.41
20	China Paper Holdings	C71	3.24	–	0.13
21	China Real Estate Group	5RA	–	–	0.77
22	China Sky Chem	E90	–	–	0.06
23	China Sports	FQ8	–	–	0.13
24	China Yuanbang Property Holdings	BCD	5.99	–	0.09
25	China Kangda Food Company	P74	0.68	–	0.19
26	China Kunda Technology Holdings	GU5	–	–	1.20
27	China Sunsine Chemical Holdings	QES	15.182	3	0.6385
28	Combine Will International Holdings	N0Z	8.11	5.051	0.26
29	COSCO Shipping International Singapore	F83	1.38	–	0.77
30	Courage Investment Group	CIN	0.41	–	0.18
31	Darco Water Technologies	BLR	–	–	0.29
32	Debao Property Development	BTF	–	–	0.10
33	Dukang Distillers Holdings	BKV	–	–	0.03
34	Dutech Holdings	CZ4	7.98	3.9	0.45
35	Emerging Towns & Cities Singapore	1C0	5.76	–	0.19
36	Fabchem China	BFT	–	–	0.23
37	First Sponsor Group	ADN	10.43	1.851	0.78
38	Full Apex	BTY	–	–	0.08
39	Fuxing China Group	AWK	–	–	0.10
40	Global Invacom Group	QS9	–	–	0.39
41	Green Build Technology	Y06	–	–	0.30
42	Guoan International	G11	–	–	2.24
43	Healthway Medical Cor	5NG	–	–	0.79
44	Hi-P International	H17	13.51	2.473	1.47
45	Hutchison Port Holdings Trust SGD	P7VU	2.04	9.294	0.39
46	Hutchison Port Holdings Trust USD	NS8U	2.04	9.403	0.40
47	Hu An Cable Holdings	KI3	–	–	0.78
48	Hyflux Limited	600	–	–	-0.16
49	IEV Holdings	5TN	14.10	–	5.28
50	Japfa Limited	UD2	13.62	1.479	0.90
51	Jason Marine Group	5PF	8.80	3.497	0.60
52	JES International Holdings	EG0	-44.12	–	-2.77
53	Jiutian Chemical Group	C8R	–	–	1.28
54	Joyas International Holdings	E9L	–	–	3.75
55	KOP Limited	5I1	–	–	0.36
56	LCT Holdings	BJL	1.00	–	0.68
57	Leader Environmental Technologies Limited	LS9	–	–	4.27
58	Lion Asiapac Limited	BAZ	0.75	–	0.41
59	Luzhou Bio-chem Technology Limited	L46	–	–	-0.75
60	Mapletree North Asia Commercial Trust	RW0U	2.62	7.688	0.66
61	Memstar Technology	5MS	–	–	-1.67
62	Mercurius Capital Investment	5RF	–	–	6.25
63	Midas Holdings	5EN	–	–	-7.71
64	Mirach Energy Limited	AWO	52.17	–	0.18
65	MMP Resources Ltd	F3V	–	–	-0.48
66	Malaysia Smelting Corp	NPW	9.01	2.532	0.90
67	Natural Cool Holdings	5IF	–	–	0.60
68	Net Pacific Financial Holdings	5QY	–	–	0.59
69	Nordic Group	MR7	9.87	4.06	0.95
70	Ouhua Energy Holdings	AJ2	7.48	–	0.27
71	Pacific Andes Resources Development	P11	8.47	–	0.09
72	Pacific Century Regional Developments	P15	2.97	8.63	0.81
73	Pan Hong Holdings Group	P36	15.44	3.722	0.37
74	PEC Limited	IX2	–	1.25	0.56
75	Plastoform Holdings	AYD	–	–	-0.34
76	Raffles Infrastructure Holdings	LUY	15.32	–	0.87
77	Sapphire Corp	BRD	4.55	–	0.22
78	SBI Offshore Limited	5PL	–	–	0.55
79	SembCorp Industries Limited	U96	3.07	3.786	0.41
80	Shanghai Turbo Enterprises	AWM	–	–	1.81
81	Shangri-La Asia Limited	S07	2.46	1.218	0.54
82	SIIC Environment Holdings	BHK	7.19	5.495	0.28
83	Sinarmas Land Limited	A26	15.14	2.332	0.25
84	Sincap group	5UN	1.03	–	0.04
85	Sing Holdings	5IC	15.35	4.868	0.51
86	Sinjia Land Limited	5HH	–	–	0.58
87	Sino Grandness Food Industry Group	T4B	6.35	–	0.03
88	Sinopipe Holdings	X06	–	–	-31.71
89	Sinostar PEC Holdings	C9Q	13.64	–	0.52
90	Starland Holdings	5UA	1.05	30	0.60
91	Straco Corporation	S85	13.21	5.057	1.62
92	Sunpower Group	5GD	7.96	0.476	1.07
93	Suntar Eco City	BKZ	0.03	–	2.47
94	SunVic Chemical Holdings	A7S	24.63	–	0.13
95	Swing Media Technology Group	BEV	4.76	–	0.09
96	Thakral Corporation	AWI	6.71	9.524	0.39
97	Tianjin Zhongxin Pharmaceutical Group	T14	11.61	5.373	0.79
98	Tiong Seng Holdings	BFI	3.99	3.596	0.24
99	United Food Holdings	AZR	–	–	0.13
100	USP Group Limited	BRS	–	–	0.25
101	Valuetronics Holdings	BN2	14.53	6.48	1.08
102	Willas-Array Electronics Holdings	BDR	–	–	0.31
103	Wilmar International	F34	7.72	2.839	1.22
104	World Precision Machinery	B49	1.85	5.364	0.34
105	Yamada Green Resources	BJV	2.25	–	0.99
106	Yanlord Land Group	Z25	11.86	6.018	0.39
107	Yongmao Holdings	BKX	7.68	0.283	0.40
108	Yunnan Energy International	T43	–	–	0.91
109	Yangzijiang Shipbuilding YZJ CNY	SO7	9.99	4.414	0.66
110	Yangzijiang Shipbuilding YZJ SGD	BS6	9.99	4.612	0.62
111	Zhongmin Baihui Retail Group	5SR	28.57	4.84	2.86

Due to globalization, most of the 30 STI component stocks have significant businesses in Greater China market (eg. Wilmar, Hongkong Land, etc), although they are not commonly labelled as S-Chip (such as Yangzijiang Shipbuilding, YZJ):

An investor has to be selective in investing as some China related stocks in Singapore are weak (buy low may get lower in share price due to weak business, especially in a bearish stock market), despite some may have a beautiful Chinese name or belong to a promising China market but the competition is too intense, only giant China stocks could be profitable in longer term.

Here, let’s focus on 4 China related giant stocks in 4 different stock exchanges (Singapore, Hong Kong / China, Taiwan / US).

1) Singapore All-Rounded Giant Stock (S-Chip / A-Share)

– Tianjin Zhongxin Pharmaceutical Group (SGX: T14 / China Shanghai: 600329, 天津中新药业)

Despite Tianjin Zhongxin is much smaller than other pharmaceutical companies in China, it is a little giant stock. It is an all-rounded stock with many unique characteristic, eg cyclic, growth, dividend and even undervalue. This implies an investor or a trader would have more options but need to choose the right strategy aligning with own personality.

The stock is currently as lower optimism level, possible for long term cyclic investing to Buy Low but requires years of holding power before could sell high, supporting by steady business growth, even during COVID-19 pandemic. The company also distributes high dividend (about 5% dividend yield), suitable for holding but weakness is cyclic share prices may result in losses for shorter term traders, therefore trend-following strategy may be considered. The stock is listed in both Singapore (S-Chip) and China Shanghai (A-Share) with some differences in short term prices due to different market responses (eg. China stock market is relatively more bullish than Singapore stock market over the past 1 year).

Tianjin Zhongxin is a giant Singapore / China healthcare stock, much stronger than most of other 37 Singapore healthcare stocks in Singapore:

Accrelist Ltd (SGX: QZG), Alliance Healthcare (SGX: MIJ), Aoxin Q & M Dental (SGX: 1D4), Asia Vets Holdings (SGX: 5RE), AsiaMedic (SGX: 505), Asian Healthcare Specialists (SGX: 1J3), Beverly JCG (SGX: VFP), Biolidics (SGX: 8YY), Cordlife (SGX: P8A), First Reit (SGX: AW9U), Haw Par Corporation (SGX: H02), HC Surgical Specialists (SGX: 1B1), Healthway Medical Corporation (SGX: 5NG), Hyphens Pharma International (SGX: 1J5), IHH Healthcare (SGX: Q0F), ISEC Healthcare (SGX: 40T), IX Biopharma (SGX: 42C), Lonza Group (SGX: O6Z), Medinex (SGX: OTX), Medtecs International Corporation (SGX: 546), OUE Lippo Healthcare (SGX: 5WA), ParkwayLife Reit (SGX: C2PU), Pharmesis International (SGX: BFK), Q&M Dental Group (SGX: QC7), QT Vascular (SGX: 5I0), Raffles Medical Group (SGX: BSL), RHT Health Trust (SGX: RF1U), Riverstone Holdings (SGX: AP4), SingMedical Group (SGX: 5OT), Suntar Eco-City (SGX: BKZ), TalkMed (SGX: 5G3), Thomson Medical Group (SGX: A50), Tianjin Zhong Xin Pharmaceutical Group (SGX: T14), Top Glove Corporation (SGX: BVA), Trendlines Group (SGX: 42T), UG Healthcare Corporation (SGX: 41A), Vicplas International (SGX: 569).

2) China / Hong Kong Giant Bank Stock (H-Share/A-Share)

– Industrial And Commercial Bank Of China, ICBC (China Shanghai: 601398 / HKEX: 1398, 中國工商銀行)

ICBC is the world largest bank based on asset size, listed in both China Shanghai (A-Share) and Hong Kong (H-Share). It has steady business performance but the growth is limited over the past few years (transition from growth to mature company). It has attracted support of global funds including Temasek of Singapore as a major shareholder (8.4%).

The share price is at long term and medium term low optimism, could be considered for cyclic investing with Buy Low Sell High strategy but current bearish short term prices (sharp falling knife) could result in losses for a trader. In addition, the stock pays consistent dividend in the past, currently dividend yield is about 7%, reasonable for passive income investor.

ICBC is a giant China / Hong Kong bank stock, much stronger than most of 30 Singapore Banking & Finance stocks in Singapore:

3) China F&B Giant Stock (A-Share)

– Kweichow Moutai (China Shanghai: 600519, 貴州茅台酒)

Kweichow Moutai is a famous Chinese liquor stock, also the largest in the world, surpassing Diageo (LSE: DGE) since 2017, mainly supported by high growth share prices. Competitor, Wuliangye Yibin (Shenzhen: 000858, 宜宾五粮液), is also an alternative stock investment option, having strong business fundamental but growth is relatively slower than Moutai.

Moutai is a strong growth stock in long term and also a strong momentum stock in short term. So, either an investor or a trader may apply “Buy & Hold” strategy, with timeframe following own personality. The brand is a strong intangible asset for the company.

The liquor industry could be cyclic in longer time especially when there is any major change in China government policy, eg. about 10 years, due to anti-corruption campaign (eg. consumption or giving high price liquor as gift could be a common practice for decades), growth of Moutai Wuliangye was slow but start to gain momentum over the past few years. In a longer term, premium alcoholic beverages of Moutai and Wuliangye would have sustainable growth, supported by rising middle class population in China with stable growing economy.

Kweichow Moutai and Wuliangye Yibin are giant China F&B stocks, much stronger than most of 48 Singapore F&B stocks in Singapore:

Abterra (SGX: L5I), Acma (SGX: AYV), Amara Holdings (SGX: A34), Bonvests Holdings (SGX: B28), ChasWood Resources (SGX: 5TW), China Fishery (SGX: B0Z), China Kangda Food (SGX: P74), Dairy Farm International (SGX: D01), Del Monte Pacific (SGX: D03), Delfi (SGX: P34), Dukang (SGX: BKV), Envictus (SGX: BQD), Food Empire Holdings (SGX: F03), Fraser and Neave F&N (SGX: F99), Hosen Group (SGX: 5EV), Japan Foods Holding (SGX: 5OI), Japfa (SGX: UD2), JB Foods (SGX: BEW), Jumbo Group (SGX: 42R), Katrina Group (SGX: 1A0), Khong Guan (SGX: K03), Kimly (SGX: 1D0), Koufu (SGX: VL6), Luzhou Bio-Chem (SGX: L46), Mewah International (SGX: MV4), Neo (SGX: 5UJ), No Signboard Holdings (SGX: 1G6), Old Chang Kee (SGX: 5ML), OneApex (SGX: 5SY), Pacific Andes (SGX: P11), Pavillon (SGX: 596), QAF (SGX: Q01), Sakae (SGX: 5DO), SATS (SGX: S58), Sheng Siong (SGX: OV8), Shopper360 (SGX: 1F0), Sino Grandness (SGX: T4B), Soup Restaurant (SGX: 5KI), ST Group Food (SGX: DRX), SunMoon Food (SGX: AAJ), Thai Beverage (SGX: Y92), Tung Lok Restaurants (SGX: 540), United Food (SGX: AZR), Wilmar International (SGX: F34), Yamada Green Resources (SGX: BJV), Yeo Hiap Seng (SGX: Y03), Zhongxin Fruit (SGX: 5EG).

4) Taiwan Technology Giant Stock (ADR)

– Taiwan Semiconductor Manufacturing, TSMC (Taiwan: 2330 / NYSE: TSM, 台積電)

Taiwan is one of “4 Small Dragons” in Asia (South Korea, Taiwan, Singapore and Hong Kong), also a strong technology hub, especially for semiconductor industry leading by TSMC, world largest IC chip manufacturing company. TSMC is very advanced in IC technology development, currently the only player for 5nm technology, far ahead of competitor, Samsung. With rising demand for 5G and internet related applications globally, TSMC has a monopoly of such advanced IC technology, able to sustain the growth with profits over the next decade.

TSMC is a strong growth investing stock and strong momentum stock, share price is doubled over the past few months, riding the wave of uptrend semiconductor industry and unique position as world semiconductor leader. The long term optimism level of TSMC is relatively high, more suitable for short term position trading to “Buy & Hold” with trend-following strategy, supported by strong business growth.

TSMC is a giant Taiwan technology stock, much stronger than most of 53 Electronics stocks and 28 IT stocks, total 81 Technology Stocks in Singapore:

AEM Holdings (SGX: AWX), Accrelist Limited (SGX: QZG), Acma Limited (SGX: AYV), Adventus Holdings (SGX: 5EF), Allied Technologies Limited (SGX: A13), Amplefield Limited (SGX: AOF), Avi Tech Electronics (SGX: BKY), Ban Leong Technologies (SGX: B26), CDW Holding (SGX: BXE), CFM Holdings (SGX: 5EB), CPH Limited (SGX: 539), Chuan Hup Holdings (SGX: C33), Creative Technology (SGX: C76), Datapulse Technology (SGX: BKW), Dragon Group International (SGX: MT1), Dutech Holdings (SGX: CZ4), Ellipsiz Limited (SGX: BIX), Excelpoint Technology (SGX: BDF), Frencken Group (SGX: E28), Global Invacom Group (SGX: QS9), GP Industries (SGX: G20), Global Testing Corporation (SGX: AYN), Grand Venture Technology (SGX: JLB), HGH Holdings (SGX: 5GZ), Hu An Cable Holdings (SGX: KI3), JEP Holdings (SGX: 1J4), Jadason Enterprises (SGX: J03), Karin Technology Holdings (SGX: K29), 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), SEVAK Limited (SGX: BAI), SUTL Enterprise (SGX: BHU), Serial System (SGX: S69), Shinvest Holding (SGX: BJW), Sunright Limited (SGX: S71), Sunrise Shares Holdings (SGX: 581), TT International (SGX: T09), Thakral Corporation (SGX: AWI), The Place Holdings (SGX: E27), Trek 2000 International (SGX: 5AB), 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).

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Both China (Oct 1) and Taiwan (Oct 10) celebrate respective national days in the month of October, moon is the roundest on 1 Oct 2020 (Mid-Autumn Festival), implying peaceful political world could share the fortune but requiring investing in giant stocks. Both Big and 4 Small Dragons (including Singapore) are global economic growth engines, in transition from manufacturing to higher value technology development.

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

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Filed Under: Fundamental Analysis, Macroeconomy, Market Cycle Investing, Market Outlook, Stock Market Tagged: china stocks, cyclic investing stock, growth stock

28 Singapore and Global Information Technology Stocks (通风报讯)

Posted on September 23, 2020 Written by Dr Tee (Ein55)

Information Technology (IT) is everywhere in modern world, a stock with strong IT related business would have bright future for investment. Therefore, an investor may consider 28 IT stocks in Singapore, especially those defensive growth stocks.

In this article, you will learn from Dr Tee on 4 Singapore IT Giant Stocks which are efficient in making money with economic moat but having mixed impacts during COVID-19 stock crisis. Bonus for readers who could read every words of the entire article: 7 global IT giant stocks.

1) IT Retail Giant Stock

– Challenger Technologies (SGX: 573)

2) Software Giant Stock

– Silverlake Axis (SGX: 5CP)

3) Data Center Giant REITs

– Keppel DC Reit (SGX: AJBU)

– Mapletree Industrial Trust (SGX: ME8U)

Nearly everyone of us needs certain IT services in our daily lives, eg. when reading Dr Tee article here with common online platforms which are also global giant stocks: Google (NASDAQ: NYSE), Facebook (NASDAQ: FB), etc. Most global IT giant stocks are from US but there are still some good local IT giant stocks in Singapore worth consideration for investment.

There are 28 IT Stocks in Singapore, making money with Information Technology (通风报讯):

These 28 IT stocks are also related in businesses to 53 Electronics Technology Stocks in Singapore:

From the table sorted below for 28 Singapore IT stocks, only half are profitable (17 / 28 stocks were making money in businesses last year). Therefore, careful choices of giant IT stocks are critical, some are at lower optimism share prices due to either stock market fear or actual business is affected during COVID-19 pandemic.

Most Singapore IT stocks don’t pay dividend (only 11 / 28 stocks pay dividend). Even if they do, for example, CSE Global (SGX: 544) and Boustead Singapore (SGX: F9D) with over 4% dividend yield, are not good dividend stocks due to weaker business fundamental.

Only 1/3 of IT stocks (9 / 28) have Price-to-Book ratio ($ / NAV = PB) < 1 with discount over asset but majority do not have high quality asset related to cash or properties.

For most local and global IT stocks, main strategy would be growth investing or momentum trading, therefore business growth is much more important than undervalue price or dividend payment.

No	Name	Code	ROE (%)	Dividend Yield (%)	PB = Price /NAV
1	Alpha Energy Holdings	5TS	–	–	3.64
2	Alset International	40V	–	–	3.78
3	Artivision Technologies	5NK	7.0	–	-0.77
4	Asiatravel.com Holdings	5AM	0.4	–	2.62
5	A-Smart Holdings	BQC	–	–	3.97
6	Azeus Systems Holdings	BBW	–	2.7	2.30
7	Boustead Singapore Limited	F9D	5.1	4.3	0.99
8	Captii	AWV	26.8	3.7	0.27
9	Challenger Technologies	573	–	3.3	1.41
10	CSE Global	544	0.7	5.7	1.30
11	DISA	532	12.4	–	1.11
12	International Press Softcom	571	–	–	0.69
13	ISDN Holdings	I07	–	1.0	1.04
14	Keppel DC Reit	AJBU	12.6	2.5	2.55
15	Koyo International	5OC	5.2	1.3	0.77
16	M Development	N14	–	–	0.87
17	Mapletree Industrial Trust	ME8U	10.3	3.5	1.94
18	New Silkroutes Group	BMT	3.2	–	0.61
19	New Wave Holdings	5FX	13.6	–	0.90
20	PEC	IX2	18.5	1.2	0.58
21	Plato Capital	YYN	17.0	–	0.18
22	Procurri Corporation	BVQ	–	–	1.82
23	Rich Capital Holdings	5G4	–	–	1.36
24	Silverlake Axis	5CP	22.8	2.1	3.18
25	SinoCloud Group	5EK	27.1	–	1.00
26	Stratech Group	BRR	–	–	-0.49
27	Synagie Corp	V2Y	2.2	–	7.24
28	YuuZoo Networks Group Corp	AFC	15.2	–	-3.49

There are only 2 IT related stocks (Mapletree Industrial Trust, following by Keppel DC Reit would be included soon by end of 2020) which are also listed in 30 STI component stocks:

An investor has to be selective in investing as many IT stocks in Singapore are weak (buy low may get lower in share price due to weak business, especially in a bearish stock market), despite they belong to a promising IT industry but the competition is too intense, only some IT stocks could be profitable in longer term.

Here, let’s focus on 4 Singapore IT giant stocks over 3 main categories:

1) IT Retail Giant Stock

– Challenger Technologies (SGX: 573)

Challenger Technologies has many IT retail stores in Singapore, business has been growing. In Year 2019, the acquisition offer by major shareholders was not successful due to joint effort of smart minority shareholders with over 10% objection votes. As a result, Singapore can still keep this giant stock, especially the company has strong cash flow, able to pay consistent dividend in the past, suitable for longer term investing.

However, over the past 2 years, Challengers Technologies has reduced on the dividend payment (unsure if this may be a move to discourage longer term investing, especially after the acquisition was not successful). In fact, the company is defensive in both share prices and business, not affect affected during COVID-19 compared with peers.

So, Challenger Technologies is transformed from a dividend stock (defender) in the past to a growth stock (midfielder with moderate dividend and capital gains). Current share price is at lower optimism level but it may not be suitable for traders due to sideways prices (which is better than most bearish Singapore stocks). Since this is not a REIT, major shareholders have the power to change the dividend payout policy each year, making it less attractive to longer term investors for holding, perhaps a higher chance for acquisition again in future if both the capital gains and dividends are limited in medium term.

In Singapore, besides Challenger Technologies, consumers may also go to Harvey Norman IT stores which is listed in Australia stock market (ASX: HVN). Harvey Norman is as strong as Challenger Technologies, another option for global IT giant stock investing. Even during crisis such as COVID-19, their businesses are doing better as there are online sales channel, demand is supported by more IT users.

2) Software Giant Stock

– Silverlake Axis (SGX: 5CP)

Silverlake Axis provides software solutions and services to the banking, insurance, payment, retail and logistics industries. It is a leader for backend software to many banks in Southeast Asia (Malaysia, Singapore, Indonesia, etc). Banks usually don’t easily change the supplier of financial software for safety and stability, therefore Silverlake Axis has economic moat in high switching cost.

In Year 2015, there was allegation reported on questionable high profitability of company, even if there is no confirmation, resulting in significant correction of share price from peak of over $1/share, bearish share prices continue in the past few years to about 20% of peak share price during COVID-19 stock crisis, currently at low optimism. Silverlake Axis business is affected during pandemic but this is reasonable compared with peers and clients (most banks have weaker businesses during COVID-19).

Financial reports are key consideration for investors, therefore any doubt (even not confirmed) could create unwanted market fear, resulting in falling of share prices. Another recent example is Best World International (SGX: CGN) which also reported very good financial results, attracting questions on reliability of business performance. Even during the stock suspension period, Best World continues to report expected good financial results.

So, for a giant stock, besides good business fundamental, it is important for management to pay more attention on public communication, be transparent in financial reports, especially on grey areas. Luckin Coffee (NASDAQ: LK, forced to be delisted) was a negative example that a “strong fundamental” company ends up in scandal of deceiving global investors (including GIC of Singapore) with manipulated financial reports. Integrity of management is key for a giant stock but it is very hard to measure as greed could drive a business to different direction. Sometimes under the pressure of investors expectation, some management of companies may choose shortcut to achieve early “success” with creative accounting. So, stock investors have to read between the lines for financial reports, reviewing each potential allegation or rumors if there is any.

Overall, assuming truthful financial reports over the past decade, Silverlake Axis is a reasonable strong fundamental stock at low optimism but it is very cyclical in nature, an investor needs to have holding power when buying at low optimism.

3) Data Center Giant REITs

– Keppel DC Reit (SGX: AJBU)

– Mapletree Industrial Trust (SGX: ME8U)

Both Keppel DC Reit and Mapletree Industrial Trust (MIT) are data center REITs, benefiting from increasing demand in internet era for data storage to keep critical and sensitive information for clients in different countries globally. Data center business has strong economic moat (high switching cost) and predictable in income generation, supported by clients who are financially strong with internet related businesses.

Keppel DC Reit is mainly on data center business, growth in business with strong cash, could double the dividend in about 4 years, much stronger than most dividend stocks and REITs which need 8-10 years to double the dividend payment. However, this strong growth has attracted competition globally, therefore the high growth rate in share prices and businesses would slow down in longer term. The share price was corrected by about 20% during COVID-19 stock crisis but quickly recover to new historical high prices, currently at high optimism. So, the stock is more suitable for momentum trading as the dividend yield is less than 3%, trend-following trading strategy may be applied. Keppel DC Reit would be the next in line for new 30 STI component stock, replacing the empty slot when CapitaLand Mall Trust (SGX: C38U) and CapitaLand Commercial Trust (SGX: C61U) are merged by end of 2020, with new opportunity for higher upside in share prices with more fund managers support.

Mapletree Industrial Trust has acquired 14 more data centers in US, overall business contribution with data center is about 40%, would help to accelerate the future growth of company. The company share price and business performance are similar to Keppel DC Reit, but it is more gradual in growth. After replacing Singapore Press Holding, SPH (SGX T39) as the latest 30 STI component stock in Year 2020, MIT share price is supported further (currently at high optimism) with more institutional investors. MIT may be considered as midfielder with capital gains and moderate 3.7% dividend yield, currently more suitable for trend-following trading or growth investing due to higher optimism prices.

Both Keppel DC Reit and MIT are stronger growth REITs compared with 52 Singapore REITs and Business Trusts which are mainly positioned for dividend investing (investor has to focus only on giant stocks for investing):

AIMS APAC Reit (SGX: O5RU), ARA Hospitality Trust USD (SGX: XZL), ARA LOGOS Logistics Trust (SGX: K2LU), Ascendas Reit (SGX: A17U), Ascendas India Trust (SGX: CY6U), Ascott Trust (SGX: HMN), Asian Pay Tv Trust (SGX: S7OU), BHG Retail Reit (SGX: BMGU), CapitaLand Commercial Trust (SGX: C61U), CapitaLand Mall Trust (SGX: C38U), CapitaLand Retail China Tr (SGX: AU8U), CDL Hospitality Trust (SGX: J85), Cromwell Reit EUR (SGX: CNNU), Cromwell Reit SGD (SGX: CSFU), Dasin Retail Trust (SGX: CEDU), Eagle Hospitality Trust USD (SGX: LIW), EC World Reit (SGX: BWCU), Elite Commercial Reit (SGX: MXNU), ESR-REIT (SGX: J91U), Far East Hospitality Trust (SGX: Q5T), First Reit (SGX: AW9U), Frasers Centrepoint Trust (SGX: J69U), Frasers Hospitality Trust (SGX: ACV), Frasers Logistics & Commercial Trust (SGX: BUOU), FSL Trust (SGX: D8DU), HPH Trust SGD (SGX: P7VU), HPH Trust USD (SGX: NS8U), IREIT Global (SGX: UD1U), Keppel Infrastructure Trust (SGX: A7RU), Keppel Pacific Oak US REIT (SGX: CMOU), Keppel DC Reit (SGX: AJBU), Keppel Reit (SGX: K71U), Lendlease Reit (SGX: JYEU), Lippo Malls Trust (SGX: D5IU), Manulife Reit (SGX: BTOU), Mapletree Commmercial Trust (SGX: N2IU), Mapletree Industrial Trust (SGX: ME8U), Mapletree Logistics Trust (SGX: M44U), Mapletree North Asia Commercial Trust (SGX: RW0U), NetLink NBN Trust (SGX: CJLU), OUE Commercial Reit (SGX: TS0U), ParkwayLife Reit (SGX: C2PU), Prime US Reit (SGX: OXMU), RHT HealthTrust (SGX: RF1U), Sabana Reit (SGX: M1GU), Sasseur Reit (SGX: CRPU), Soilbuild Business Space Reit (SGX: SV3U), SPH Reit (SGX: SK6U), Starhill Global Reit (SGX: P40U), Suntec Reit (SGX: T82U), United Hampshire US Reit (SGX: ODBU).

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In fact, a company does not need to pay dividend to be a giant stock. Warren Buffett Berkshire Hathaway (NYSE: BRK.A / BRK.B) did not pay dividend for the past decades, retained earnings are accumulated, making it the most expensive stock in the world. So, a company value can be evaluated from both past and future earnings and cash flow.

Nearly every company or investor needs IT except for Warren Buffett. Many years ago, Bill Gates (founder of Microsoft, NASDAQ: MSFT, also a global IT giant stock) was trying to persuade his good friend (who supports his charity fund), Warren Buffett, to accept application of computer, at least to manage his stock portfolio. Warren Buffett joked that he only has 1 stock (which is Berkshire Hathaway), therefore no need computer at all. In reality, main contributor of Berkshire revenue now is from world largest IT giant stock, Apple Inc (NASDAQ: AAPL). Warren Buffett regrets of not able to investing in Amazon.com (NASDAQ: AMZN), another US IT giant stock in earlier stage with lower prices. For growth investing, an investor may not need to buy low but need to invest more during stock crisis, leveraging on power of time to compound the share prices with condition the strong growth businesses are sustainable.

Although Warren Buffett is not IT savvy, he could read the financial reports of Apple, understanding his strong economic moat to continue to make money as a market leader, at least for the current decade. Indeed, IT is beneficial to businesses but an investor may not need to be high tech person to invest in high tech stocks. However, since technology sector is very dynamic, especially for information technology, new or disruptive technology could take the lead at the right time. For example, Zoom Video Communications (NASDAQ: ZM) is a promising young IT stock, by right needs another 5-10 more years to become a proven giant stock but the process is shortened to months with unexpected help of COVID-19 crisis with millions of new users including Dr Tee during pandemic.

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.

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Filed Under: Fundamental Analysis, Market Optimism, Stock Market, Value Investing Tagged: growth stock, Internet Stocks, technology stock

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