Top 10 Global Luxury Giant Stocks (纸醉金迷)

Posted on June 5, 2021 Written by

We may still remember the Malaysia 1MDB news a few years ago on millions of ringgit worth of luxury products (handbags –Bijan / Hermes / Gucci, jewelry, watches – Rolex / Patek Philippe) discovered as “gifts” to a lucky family. In fact, smart investors could profit from these luxury products in a legal way with stock investing, leveraging on global rich people with extravagant spending.

In this article, you will learn from Dr Tee on Top 10 Global Luxury Giant 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 word of the entire article, learning unique strategy to position in each giant luxury stocks, including Ein55 Optimism level and Ein55 Intrinsic Value.

1) France Giant Luxury Stock: LVMH (EPA: MC), Hermes (EPA: RMS), Kering (EPA: KER)

2) US Giant Luxury Stock: Estee Lauder (NYSE: EL), PVH (NYSE: PVH)

3) Singapore Giant Luxury Stock: The Hour Glass (SGX: AGS), Cortina Holdings (SGX: C41)

4) HK Giant Luxury Stock: Chow Tai Fook (HKEx: 1929), Chow Sang Sang (HKEx: 116), Luk Fook (HKEx: 590)

Stocks with luxury products (eg. branded handbags, expensive gold jewelry, luxury watches, etc) are consumer discretionary stocks (纸醉金迷), usually following the economic cycle, very bullish during bull run (eg. last 1 year of pandemic recovery), very bearish during global financial crisis (eg. Q1 of 2020 pandemic, 2008-2009 subprime crisis, etc). Therefore, mastery of investment clock would help on cyclical luxury stocks to Buy Low Sell High. 

However, there are some growth luxury giant stocks which are suitable with Buy Low and Hold long term strategy due to the fact that rich would become richer (sadly to say, may imply poor become poorer, especially those who don’t know investment, depending only on active income from 1 job) when global financial crisis is over. Therefore, the luxury product businesses of growth giant stocks could continue to grow for many decades, especially having a strong intangible asset of famous brands (status of rich people who are willing to pay more).

During COVID-19 pandemic, most luxury stocks suffer in businesses mainly due to temporary lower spending power of rich people and limited tourists who could be main customers in the past. With pandemic recovery (over last 1 year and likely for next 1 year) and availability of online purchases, both businesses and share prices of giant luxury stocks have been growing steadily. When international borders are fully opened one day after global vaccination of COVID-19, the business growth would be accelerated.

A giant stock may not need to be big in size, even a small company could be a giant stock. There are hundreds of luxury stocks globally but some could be junk stocks, Buy Low may become lower in share prices with declining businesses. Let’s study Top 10 Global Giant Luxury Stocks (following Dr Tee criteria), some are recovering from lower optimism in 4 global stock exchanges interested by readers:

1) France Giant Luxury Stock:

LVMH (EPA: MC), Hermes (EPA: RMS), Kering (EPA: KER)

Asian investors may not familiar with European stock market. In fact, France has the most famous luxury products brands in the world, many giant stocks are listed under Euronext Paris Stock Exchange (EPA) which is accessible to global investors.  A smart investor would diversify investment over a portfolio of 10-20 global giant stocks in several countries, which may include No 6 largest economy in the world, France, which is famous for its people creativity (despite may not be as hardworking as Asian people).

LVMH (Moet Hennessy Louis Vuitton) is the world largest luxury product, including many famous brands such as Hennessy (wine), LV, Christian Dior, etc.   The major shareholder, Bernard Arnault, recently becomes the World No 1 Richest person as LVMH share prices have outperformed No 2 (Jeff Bezos of Amazon) and No 3 (Elon Musk of Tesla). Ein55 Optimism level is over 80%, current price is far exceeding Ein55 Intrinsic value, more suitable with short term momentum trading strategy (Buy High Sell Higher), requiring S.E.T. (Stop Loss / Entry / Target Prices) trading plan.

Similar to LVMH, Hermes is also a family owned business but much smaller in business size, famous with luxury handbags (some rich people wives may have no resistance over them, becoming a collector with millions of dollars spent). However, Hermes is a much stronger growth stock than LVMH, business is so good that even LVMH was hoping to acquire it but mission failed many years ago.  Ein55 Optimism level is near to 90%, suitable for both growth investing and momentum trading, but ideal entry point may be to wait for a global financial crisis, especially for longer term investors.

Dr Tee discussed both LVMH and Hermes as stock homework with Ein55 graduates about 2 years ago, even with over 30% share price correction during pandemic crisis, both stocks have achieved 70% potential gains so far. Both are excellent examples of growth stock investing, even if an investor did not sell during global stock crisis, growth giant stocks could recover faster to achieve a new high in future. The main enemy of an investor is usually oneself, especially when a giant stock with growing business is significantly corrected in share prices due to market fear.

Kering is No 4 largest luxury stock in the world, famous of brands such as Gucci, Yves Saint Laurent, etc. Kering is also strong in business but slower growth compared to Hermes and LVMH, more suitable with Buy Low Sell High strategy. Ein55 Optimism level is near to 80% with pandemic recovery, more suitable for short term trading. 

In fact, short term performance of LVMH, Hermes and Kering are comparable (currently bullish trends) and aligned due to similar consumer discretionary sector (Level 2) and same country (Level 3).  For both short term trading and long term investor, Level Analysis would help to improve probability of success, knowing the unique market cycles (bull / bear) of each sector and country.

Readers may read earlier article by Dr Tee for more details with Top 10 World Richest Persons stocks including LVMH:
https://www.ein55.com/2021/02/top-10-world-richest-giant-stocks/


2) US Giant Luxury Stock:

Estee Lauder (NYSE: EL), PVH (NYSE: PVH)

Estee Lauder is world No 2 largest luxury stock, famous of beauty products (cosmetics, fragrance, haircare, etc). It may be relatively easier to make money from ladies than men, therefore in a typical department store, men section is usually much smaller than lady section, mainly to maximize the business revenue.

Therefore, Ester Lauder is comparable with LVMH, also strong growth in business and share prices, recovering well after the correction during pandemic. Ein55 Optimism level is over 70%, more suitable for short term momentum trading, similar strategy as LVMH and Hermes.

PVH is world No 10 largest luxury stock, famous of brands such as Calvin Klein, Van Heusen, Tommy Hilfiger, etc. However, PVH business is affected much more than other giant stocks, was making a loss during 2020 pandemic year, recovery is also slower. PVH is more cyclical in nature, may be considered with Buy Low Sell High strategy. Ein55 Optimism level is still moderate low near to 30%, aiming for Ein55 Intrinsic Value of $170.

Despite global luxury giant stocks are from different countries, there is an alignment globally (Level 4) in businesses and share prices, especially with more online purchases without travelling, people from country A may purchase a luxury product from country B easily. Consumer discretionary sector with luxury products would follow economic cycles, higher growth during bullish economy, slower growth (or declining) during bearish economy.

Readers may read earlier articles by Dr Tee for more details of other US Giant Stocks:
https://www.ein55.com/tag/us-stocks/


3) Singapore Giant Luxury Stock:

The Hour Glass (SGX: AGS), Cortina Holdings (SGX: C41)

Hour Glass and Cortina are competitors, having very similar businesses, mainly in sales of luxury watches (eg. Rolex, Patek Philippe, Hublot, etc). For regular followers of Dr Tee education articles and videos (www.ein55.com/blog), you would not miss these 2 Singapore luxury giant stocks, Hour Glass and Cortina, at lower Ein55 Optimism levels when sharing during last 1 year of pandemic.

Both giant stocks are strong growth in businesses (cash rich companies), not significantly affected during pandemic (despite fewer tourists to Singapore). However, the strategy to position is very different for each stock.  Hour Glass was having more discount a few months ago, when share price was near to 80 cents, Dr Tee discussed as stock homework with Ein55 graduates, also shared in earlier articles with readers, indicating Ein55 Intrinsic Value of $1.20 which is achieved recently, having 50% potential profits in a few months for readers who do own homework and take actions decisively.  Despite the current price is near to its fair value, there is potential of higher price of over $1.60 if Hour Glass could attract institutional investors or supported by market greed to higher optimism level as its competitor, Cortina.

Cortina has much higher Ein55 Optimism level (over 90% currently), therefore the positioning over the past few months has been short term momentum trading, following trends to Buy High Sell Higher.  Cortina is relatively an illiquid stock with less stock trading volume, therefore it could be very volatile (+/-10% price movement) on certain days.  For stock analysis, instead of daily chart (certain days having 0 trading volume), it is clearer when viewing with weekly or monthly chart. Price trends of Cortina and Hour Glass are generally aligned but Cortina has appreciated much more than Hour Glass over the past 1 year.

For medium to long term investor, Hour Glass may be relatively more suitable than Cortina as Hour Glass has higher dividend yield (3-5%, depending on entry prices) and lower Ein55 Optimism level than Cortina. Recently, Hour Glass doubles the interim dividend from 2 cents (last year) to 4 cents (this year), higher dividend has helped to push up the share prices to a new historical high, also motivating Cortina to follow the same price trends.  There is also good succession plan, Hour Glass business is passed from Henry Tay to his son (Michael Tay) who has been well trained in this luxury watch industry.  So, a luxury watch may be a collection for decades but a smart investor may own “thousands” of watches by investing in Hour Glass or Cortina.

Hour Glass is 2 times larger than Cortina based on market cap but both are considered medium cap stocks, therefore may not be in the radar of institutional investors yet. Cortina has acquired Sincere Watch recently, business size is considered No 2 after Hour Glass for luxury watch market in Singapore.  To benefit from the entire luxury watches market, major shareholder of Hour Glass, Henry Tay, is also the second largest shareholder of Cortina, which is a competitor of Hour Glass.  A smart investor may learn from Henry Tay, sometimes may invest in a few competing giant stocks of any sector of interest If they are equally good.

For small or medium cap giant stock, it is easier for share prices to move up (or down) as shares are exchanging hands within a smaller group of investors, especially when majority of shares are controlled by a few major shareholders. For example, major shareholder of Hour Glass, Henry Tay, recently adding a small percentage of own shares (known insider trading) but this is sufficient to support Hour Glass above $1/share.  A smart investor would diversify over a portfolio of giant stocks with small cap <$100M (higher potential), medium cap $100M – $1B (good balance of potential and stability) and large cap >$1B (more stability).

Readers may read earlier articles (during pandemic with lower Ein55 Optimism level) by Dr Tee for more details with Singapore Growth Stocks including Hour Glass and Cortina:
https://www.ein55.com/tag/growth-stock/


4) HK Giant Luxury Stock:

Chow Tai Fook (HKEx: 1929), Chow Sang Sang (HKEx: 116), Luk Fook (HKEx: 590)

Before pandemic, some readers who travel often to Hong Kong may remember these famous jewelry shops along shopping streets: Chow Tai Fook (周大福), Chow Sang Sang (周生生) and Luk Fook (六福), which are all giant luxury stocks, making money from both local residents and overseas tourists.  However, there are many luxury stocks (jewelry, watches, etc) listed in Hong Kong Stock Exchange, not all are giant stocks.

Businesses of all these 3 Hong Kong luxury giant stocks were affected, not only during the last 1 year of pandemic. In fact, even before pandemic, despite growing gold price since Year 2015, jewelry market in Hong Kong has been declining over the years, partly because the number of mainland China tourists to Hong Kong is declining with local political differences. The activists in Hong Kong over the past few years (before pandemic) have further slowdown the demand of this luxury product market.

After the enhancement of local Hong Kong law against potential activists, these 3 luxury giant stocks have started to grow gradually in businesses, supported by pandemic recovery.  These 3 giant stocks have very similar trends in businesses (same sector) and share prices (same stock market) in short to medium terms.  Relatively, Chow Tai Fook (world No 9 largest luxury stock) is the strongest among 3 stocks on business recovery during pandemic, short term share price is also more bullish than Chow Sang Sang and Luk Fook.

In general, Chow Sang Sang and Luk Fook are still at low Ein55 Optimism levels (less than 25%), aiming for Ein55 Intrinsic Values of about $30 (Chow Sang Sang) and $60 (Luk Fook) respectively, may be considered for cyclic investing or short term trading.  They are average quality of crisis stocks due to relatively weaker businesses.  Major leader of sector, Chow Tai Fook, is more suitable for trend-following short term trading.

Readers may read earlier articles by Dr Tee for more details of other Hong Kong Giant Stocks:
https://www.ein55.com/tag/hong-kong-market/

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It is easy to know “Buy Low Sell High” is universal secret to profit in most investment. However, most people dare not buy when share price of giant stocks fall to very low optimism (due to lack of visibility of how low is low). Similarly, some people may not buy when share prices of giant stocks go to very high optimism (despite possible to do short term trading). Eventually, some may buy junk stocks during speculative trading, making money for first few times, losing more in later trading when adding more position due to “confidence” of winning in the past.

It shows the importance for retail investors to master stock trading and investment skills, not only knowing but able to take actions (Buy / Hold / Sell / Wait / Shorting). Readers who could spend time to read until here is an achievement, continue the momentum to learn and apply further in stock investment after mastery of skills.

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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.

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

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

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Filed Under: Market Cycle Investing, Market Outlook, Stock Market, Technical Analysis, Value Investing Tagged: , , ,

Seasonality Effect with Ex-Dividend Months on Singapore Stock Market (2009-2021)

Posted on May 31, 2021 Written by

Seasonality or Monthly Effect (stock index vs month/year) is strong for months of May and August for Singapore stock market, especially 30 STI component stocks. This is mainly related to Ex-dividend dates for 30 STI in Singapore but may not apply to smaller cap giant stocks which continue to be bullish in month of May. Learn further from Dr Tee on details of this unique Singapore stock myth.

For recent May 2021, STI ends with only 1+% lower but still it is a mini “bear” month, aligning with myth of “Sell in May and Go Away“. As we could see from the Seasonality Chart (2009 June – 2021 May) for Singapore stock market, over the past 12 years, for the month of May, 10 years were down (including this month, May 2021), only 2 years were bullish. For month of August, Singapore STI index is even worse, 11 years were down, only 1 year was up (last year, 2020, mainly due to pandemic recovery).

By right, there is no logic to strong monthly or seasonality effect (occurring 10-11 times over the past 12 years, bearish for months of May and August) but Singapore stock market is unique, especially many 30 STI component stocks are dividend stocks / REITs, certain month of ex-dividend dates, price adjustment after dividend payment could be stronger than usual stock market force of the month.

For example, out of the 6 biggest market cap STI stocks: DBS Bank (SGX: D05), OCBC Bank (SGX: O39), JMH – Jardine Matheson Holdings (SGX: J36), UOB Bank (SGX: U11), Singtel (SGX: Z74) and Wilmar International (SGX: F34) (6 stocks contributing to about 57% of STI), all 6/6 Ex-dividend in month of August while 3/6 also Ex-dividend in month of May. This may explain why Singapore stock market is nearly always bearish in the months of August and May, mainly to adjust for price after dividend payment (filling the quarterly or half-yearly dividend yield of around 1-3%), also to fulfill the global myth to “Sell in May”. MAS may adjust or lifted the 60% dividend payment cap imposed over the past 1 year for 3 major banks, this could result in strong Ex-dividend effect from Q2/2021 (starting with DBS with quarterly dividend payment), affecting more on volatility of 30 STI in coming month of August.

So, it may not be a good idea to invest in Singapore dividend stocks just before the Ex-dividend date, as the price correction (capital loss) after Ex-dividend date could be more than the dividend received. It is smarter to invest dividend stocks a few months in advance while the share price starts to recover from intermediate low due to market fear or bearish market. Alternatively, focusing on any giant stock (may or may not be dividend stocks, not limited to 30 STI component stocks) with strong price and business performance).

When there are more believers in certain myth, then it could affect the local market. Hong Kong and Japan also has similar myth, for example when movie star Adam Cheng (郑少秋) has new TV drama showing, HK share price would drop. Japan has similar related belief but influence varies.

In fact, there are quite a few small or mid cap giant Singapore stocks, eg. Propnex (SGX: OYY), Union Gas Holdings (SGX: 1F2), iFAST Corporation (SGX: AIY), The Hour Glass (SGX: AGS), Cortina Holdings (SGX: C41), Q&M Dental Group (Singapore) (SGX: QC7),  Raffles Medical Group (SGX: BSL), etc, which Dr Tee has mentioned in earlier educational posts or free webinars, continue to surge over 20-30% in bearish month of May, opposite in trend with STI.

So, selection of right stocks (Level 1) in right sectors (Level 2) in right country (Level 3) is crucial. In general, Singapore and US stock markets remain relatively more bullish than other global stock exchanges since early 2021. So, it is a good choice to focus in Singapore stock market, both for short term momentum trading and long term cyclic / dividend investing.

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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.

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

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

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Filed Under: Macroeconomy, Market Cycle Investing, Market Outlook Tagged: , ,

50% Profits of The Hour Glass Stock in 4 months

Posted on May 25, 2021 Written by

Congratulations to readers who have taken action on The Hour Glass (luxury watches stock, SGX: AGS) as Dr Tee has shared this giant stock in several educational posts over the past 1 year. The profit is nearly 50% from $0.80 (breakout) to $1.18 today.

In the earlier educational article on 100 Singapore Dividend Stocks (Mar 2021), Dr Tee shared the intrinsic value of The Hour Glass is about $1.20, now the price has surged to $1.18. It could have more upside but requires market greed to drive it to higher optimism. This is value investing, buy the right stock and right price, just wait patiently for the fruit in 2 targets: intrinsic value and also possible higher optimism price target.

As shown in Optimism Chart, The Hour Glass was still low optimism a few months ago, having 2X upside potential. It is a growth, dividend and cyclic stock, 3-in-1 stock. More importantly, this is a giant stock with very strong business fundamental.

For those who missed the 80 cents price breakout (low optimism, despite nearly highest price at that time) in Feb 2021 with rally to 90+ cents, there is a second chance recently. After the special gift from government on fear of Phase2 COVID measures on 14 May 2021 (Hour Glass dropped to 90 cents), Hour Glass has surged 20% last week and 10% this week, partly supported by good earnings results for financial year ending Mar 2021 (8% better results in last 1 year of pandemic compared to before pandemic), declaring 2X higher interim dividend than last year.

Dividend is like honey to attract bees (traders and investors) to work, helping to support the rising prices (capital gains). However, the plant (stock) needs to produce aromatic flower (growing business) first, else the honey supply may end one day. The best integration of strategy could be dividend + growth investing, having the best of 2 worlds, collecting passive income slowly while enjoying the capital gains with compounding of time. Patient investors could make big money but it requires strong determination.

Major shareholder Dr Henry Tay may know the investment marketing strategy, giving extra 2 cents per share dividend but share price has gained extra 28 cents. Timing of action is crucial, especially for stocks with Financial Reports ending in Mar 201, better results in Q2 would help to support the share prices (except for tech stocks at high optimism under sector rotation). So, a giant stock at low optimism is key. Hour Glass still has upside potential but it is no longer a low hanging fruit (low optimism giant stock) as shared over the past 1 year.

We may not need to own a Rolex watch even if we could afford. Instead, saving for the capital, an investor could indirectly own many luxury watches (Rolex, Patek Philippe, Hublot, etc) through investing in The Hour Glass stock as a business partner. Dr Henry Tay of The Hour Glass is even smarter, also invest in stock of main competitor, Cortina Holdings (SGX: C41), having strong control of luxury watches market in Singapore. In a bullish stock market with growing economy, consumer discretionary stock (including luxury watches) would have higher upside in both businesses and share prices. Alignment of individual stock (Level 1) to sector (Level 2), country (Level 3) and global (Level 4) economy and stock markets is crucial.

Readers may learn further, there are still many low optimism giant stocks waiting. Learn further in the next free 4hr Free Webinar by Dr Tee on other giant stocks (as good as The Hour Glass) which could still wait for you.

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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.

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

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

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Filed Under: Market Cycle Investing, Market Optimism, Stock Market Tagged: , ,

134 Singapore Property Stocks with Discounted NAV Strategy (为善最乐)

Posted on May 9, 2021 Written by

In recent Ein55 Charity Course on Global Discounted NAV (DNAV) Stocks, we have raised fund of $24,488 to help needy families in Singapore. Under the spirit of charity, Dr Tee decides to share 134 Singapore Property Stocks and 3 global DNAV stocks in 3 countries with readers (detailed strategies including Ein55 Optimism levels, Ein55 intrinsic values and DNAV will be shared):

1) Singapore DNAV Stock – Hongkong Land (SGX: H78)

2) Malaysia DNAV Stock – Paramount (Bursa: 1724)

3) Hong Kong / China DNAV Stock – Yuexiu Property (HKEx: 123)

Dr Tee, Ein55 Mentors & Graduates have together organized 11 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, Nov 2018 and May 2021) in the past 6 years, donating net income of around $222,000 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 (为善最乐).

Discounted Net Asset Value (DNAV) Strategy is valuation of company business, firstly based on the Net Asset Value (NAV) listed in current Balance Sheet. Then, we determine the net cash that would be received if all assets were sold and liabilities paid off.  Various discounts will be applied based on different quality of asset classes.  It is safer to buy stock with share price below the Discounted NAV (much more conservative than price below NAV or Price-to-Book ratio, PB < 1). Unlike PB method mainly applied for asset rich company (eg. property stocks), DNAV method can be applied in non-property or not cash-rich stocks. However, Ein55 Optimism strategies have to be integrated to avoid value trap, i.e. Buy Low Get Lower for undervalue stocks.

The best time to buy global DNAV stocks and 134 Singapore property stocks 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 share price), also could have higher potential of capital gains (when market cycle moves from fear in low optimism to greed in high optimism). Singapore property stock investing is not based on undervalue strategy (Buy Undervalue Sell Overprice) alone, may be integrated with dividend investing, growth investing, swing trading, momentum trading, cyclic investing, defensive investing and other Ein55 strategies.

There are 134 Singapore property stocks (not all are giant stocks with Dr Tee criteria), based on the last price traded (7 May 2021), sorted by 3 key Fundamental Criteria:
1) ROE (a criteria for growth stocks, eg. ROE > 5%),
2) Dividend Yield, DY (a criteria for dividend stocks, eg. DY > 3%),
3) Price-to-Book (PB) ratio, Price/NAV (a criteria for undervalue stocks, eg. PB < 1).

From the table sorted below, over 75% (101/134 stocks) are undervalue (Price to Book ratio, PB < 1), mainly due to COVID-19 stock crisis, affecting property construction business with bearish share prices but property asset valuation remains stable.  There are only 20% (27/134 stocks) have growing businesses (over 5% ROE, Return on Equity) while over 50% (72/134 stocks) were making losses during pandemic in Year 2020. There are nearly 50% (62/134 stocks) were paying dividend but only 22 stocks (16%) having dividend yield over 3%, potential for dividend investing.

No134 SG Property StocksROE (%)PBDY (%)
13Cnergy (SGX: 502)–1.1–
2A-Smart Holdings (SGX: BQC)0.8521.8–
3AEI Corporation (SGX: AWG)–2.6–
4Aims Property Securities Fund (SGX: BVP)–0.41.9
5Asia-Pacific Strategic Investments (SGX: 5RA)–0.8–
6APAC Realty (SGX: CLN)10.621.15.1
7Abterra (SGX: L5I)50.492.1–
8Acromec (SGX: 43F)–1.9–
9Alset International (SGX: 40V)53.451.1–
10Amara Holdings (SGX: A34)–0.5–
11Amcorp Global (SGX: S9B)–0.6–
12AnnAik (SGX: A52)0.2940.31.8
13Astaka Holdings (SGX: 42S)–5.5–
14BBR Holdings (SGX: KJ5)–0.5–
15BRC Asia (SGX: BEC)7.6931.31.3
16Blackgold Natural Resources (SGX: 41H)–––
17Boldtek Holdings (SGX: 5VI)–0.7–
18Bonvests (SGX: B28)–0.50.3
19Boustead Singapore (SGX: F9D)9.011.42.9
20Boustead Projects (SGX: AVM)7.4691.10.8
21Bukit Sembawang Estates (SGX: B61)5.7480.90.9
22Bund Center Investment (SGX: BTE)2.1970.97.3
23CSC Holdings (SGX: C06)4.5310.4–
24CapitaLand (SGX: C31)–0.82.5
25CASA Holdings (SGX: C04)2.6380.35.6
26Chemical Industries (Far East) (SGX: C05)2.7820.42.1
27China International Holdings (SGX: BEH)14.620.39.1
28China Yuanbang Property Holdings (SGX: BCD)5.9910.1–
29Chip Eng Seng Corporation (SGX: C29)–0.44.4
30City Developments (SGX: C09)–0.91.0
31DISA (SGX: 532)–4.3–
32Debao Property Development (SGX: BTF)–0.1–
33ETC Singapore (SGX: 1C0)–0.3–
34Edition (SGX: 5HG)–1.6–
35Engro Corporation (SGX: S44)8.5630.62.0
36Fraser and Neave – F & N (SGX: F99)5.0260.73.5
37Far East Orchard (SGX: O10)0.1240.42.6
38Figtree Holdings (SGX: 5F4)–0.52.9
39First Sponsor Group (SGX: ADN)5.9960.82.2
40Fragrance Group (SGX: F31)0.1330.6–
41Frasers Property (SGX: TQ5)1.4770.50.9
42GYP Properties (SGX: AWS)–0.4–
43Gallant Venture (SGX: 5IG)–0.9–
44Golden Energy and Resources (SGX: AUE)2.1010.7–
45Goodland Group (SGX: 5PC)–0.31.0
46GuocoLand (SGX: F17)2.2340.53.6
47HL Global Enterprises (SGX: AVX)0.2630.4–
48Hatten Land (SGX: PH0)–0.9–
49Heeton Holdings (SGX: 5DP)–0.2–
50Hiap Hoe (SGX: 5JK)–0.40.8
51Hiap Seng Engineering (SGX: 510)–––
52Ho Bee Land (SGX: H13)3.7820.52.9
53Hock Lian Seng Holdings (SGX: J2T)2.080.61.0
54Hong Fok Corporation (SGX: H30)–0.31.2
55Hong Lai Huat Group (SGX: CTO)–0.3–
56Hong Leong Asia (SGX: H22)5.3120.81.0
57Hongkong Land Holdings (SGX: H78)–0.34.5
58Hor Kew Corp (SGX: BBP)0.8610.2–
59Huationg Global (SGX: 41B)–0.2–
60Hwa Hong Corporation (SGX: H19)2.2211.03.3
61IPC Corporation (SGX: AZA)–0.2–
62ISOTeam (SGX: 5WF)–1.1–
63Imperium Crown (SGX: 5HT)–0.2–
64Jasper Investments (SGX: FQ7)–––
65KOP (SGX: 5I1)–0.4–
66KSH Holdings (SGX: ER0)4.7570.66.0
67Keong Hong Holdings (SGX: 5TT)–0.4–
68Keppel Corp (SGX: BN4)–0.91.9
69Keppel Reit (SGX: K71U)–0.94.4
70King Wan Corporation (SGX: 554)0.7530.2–
71Koh Brothers Group (SGX: K75)–0.2–
72Koon Holdings (SGX: 5DL)–––
73KORI Holdings (SGX: 5VC)0.8520.3–
74LHN (SGX: 41O)19.850.94.7
75Ley Choon Group (SGX: Q0X)–1.1–
76Lian Beng Group (SGX: L03)4.060.32.0
77Low Keng Huat (Singapore) (SGX: F1E)7.0070.55.1
78Lum Chang Holdings (SGX: L19)–0.63.3
79Luminor Financial Holdings (SGX: 5UA)–0.5–
80MYP (SGX: F86)–0.4–
81Metro Holdings (SGX: M01)2.150.42.7
82OIO Holdings (SGX: KUX)–––
83OKH Global (SGX: S3N)–0.3–
84OKP (SGX: 5CF)2.6960.53.8
85OneApex (SGX: 5SY)–1.1–
86Oxley Holdings (SGX: 5UX)–1.03.3
87PSL Holdings (SGX: BLL)–0.3–
88Pacific Century Regional Development (SGX: P15)–1.08.7
89Pacific Star Development (SGX: 1C5)–––
90Pan Hong (SGX: P36)15.440.52.4
91Pavillon Holdings (SGX: 596)–0.4–
92Pollux Properties (SGX: 5AE)0.0960.6–
93PropNex (SGX: OYY)34.44.94.9
94Raffles Infrastructure Holdings (SGX: LUY)13.350.5–
95Regal International Group (SGX: UV1)15.284.3–
96Renaissance United (SGX: I11)–0.3–
97Rich Capital Holdings (SGX: 5G4)–1.4–
98Roxy-Pacific Holdings (SGX: E8Z)–1.0–
99Ryobi Kiso (SGX: BDN)–2.2–
100SHS Holdings (SGX: 566)–0.8–
101SLB Development (SGX: 1J0)6.8380.63–
102SP Corporation (SGX: AWE)2.4590.38–
103Sasseur Reit (SGX: CRPU)4.2541.017.06
104Second Chance Properties (SGX: 528)1.7860.781.61
105Sin Heng Heavy Machinery (SGX: BKA)1.0630.331.54
106Sinarmas Land (SGX: A26)3.5450.430.32
107SingHaiyi (SGX: 5H0)–0.46–
108SingHaiyi Group (SGX: 5IC)5.3190.492.63
109Singapore Land Group (SGX: U06)1.230.531.28
110Sinjia Land (SGX: 5HH)–0.95–
111Soilbuild Construction (SGX: S7P)–0.75–
112Straits Trading (SGX: S20)3.3470.712.22
113Sysma Holdings (SGX: 5UO)2.1210.59–
114TA Corporation (SGX: PA3)–0.38–
115T T J Holdings (SGX: K1Q)–0.4212.614
116Tai Sin Electric (SGX: 500)5.3640.8164.348
117Thakral Corporation (SGX: AWI)4.4180.4076.522
118Thomson Medical Group (SGX: A50)–4.946–
119Tiong Seng Holdings (SGX: BFI)–0.2991.562
120Top Global (SGX: BHO)–0.531–
121Tosei Corporation (SGX: S2D)6.1090.5832.585
122Tritech Group (SGX: 5G9)–1.063–
123United Overseas Australia – UOA (SGX: EH5)6.4010.7292.678
124UOL Group (SGX: U14)0.1340.6562.3
125USP Group (SGX: BRS)–0.204–
126Vibrant Group (SGX: BIP)2.4560.307–
127Wee Hur Holdings (SGX: E3B)6.810.4512.439
128Wing Tai Holdings (SGX: W05)0.0880.4541.593
129Yanlord Land Group (SGX: Z25)8.3060.4284.857
130Yeo Hiap Seng (SGX: Y03)–0.8922.21
131Ying Li International Real Estate (SGX: 5DM)–0.391–
132Yoma Strategic Holdings (SGX: Z59)–0.405–
133Yongmao Holdings (SGX: BKX)7.6820.3590.309
134Yongnam Holdings (SGX: AXB)–0.308–

However, not all the 134 Singapore property stocks listed are giant stocks. A growing business in the past may not be sustainable during COVID-19 period and an undervalue stock may remain lagging in share prices for many years, could end up as a crisis stock. Fundamental Analysis alone is not sufficient, a low PB or low PE or 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. 

Let’s learn these 3 global Discounted NAV giant stocks in 3 countries, understanding the business nature, investment clock and unique strategy.

1) Singapore DNAV Stock – Hongkong Land (SGX: H78)

Hongkong Land is part of Jardine Group with over 100 years of history. It has property businesses mainly in Hong Kong, China and Singapore with 61% in investment properties (main source of rental income) and 39% in development properties. The West Bund project in Xuhui Shanghai of China would be major revenue contributor in the next few years.

Hongkong Land is still at low Ein55 Optimism (<25%) but recovering well from low in pandemic, aiming for Ein55 intrinsic value of about $9/share. This stock has Discounted NAV of $15/share (close to NAV, implying very high quality of its asset), providing high safety of margin for long term investors with stable dividend payment (about 4-5% dividend yield, depending on entry price). Assuming extreme devaluation of Hong Kong property market by 50%, Hongkong Land would still have $7.50/share value for very conservative investors.  The “loss” of Hongkong Land in Year 2020 is mainly accounting loss due to devaluation of property but cashflow is still strong to support the dividend payment, behaving as if a REIT.

Recent acquisition of parent company, JSH (SGX: J37) by JMH (SGX: J36), has helped to support the prices of other stocks in Jardine group including Hongkong Land.  Jardine Group may have more corporate actions in future to release the hidden value of subsidiary stocks including Hongkong Land, Jardine Cycle & Carriage – JCC (SGX: C07), Dairy Farm International (SGX: D01) and Mandarin Oriental Hotel (SGX: M04). However, the recovery pattern of share prices for undervalue stock can be different from growth stocks. Hongkong Land is more suitable for long term investors with patient, positioning as a mid-fielder stock, good balance between capital gains and dividend as passive income.

Readers may read earlier articles (during pandemic with low optimism prices) by Dr Tee for more details on Jardine Group of stocks including Hongkong Land:
https://www.ein55.com/tag/jardine/

2) Malaysia DNAV Stock – Paramount (Bursa: 1724)

Paramount is a Malaysia property development stock with 50 years of history in businesses. After divestment of education segment business, Paramount has drawn up a new 5-year (2020 – 2024) strategic roadmap to focus on Property development and concentrate on landed developments and integrated developments in Malaysia. In the next 5 years, Paramount plans to venture into overseas property development projects, expecting to contribute approximately 10% of the Group’s revenue. It enjoys recurring income from investment property and minority interest in education business.

Paramount is still at low Ein55 Optimism (<25%) but recovering well from low in pandemic, aiming for Ein55 intrinsic value of about $1.20/share. This stock has Discounted NAV of $2.17/share (20% lower than NAV, partly due to lower value of non-property business), providing high safety of margin for long term investors with stable dividend payment (about 4-5% dividend yield, depending on entry price). Assuming extreme devaluation of Malaysia property market by 50%, Paramount would still have $1.08/share value for very conservative investors.

Malaysia property stock investing is complicated by worse pandemic condition, political instability and weaker consumer purchasing power. Paramount is more suitable for long term investors with patient, positioning as a mid-fielder stock, good balance between capital gains and dividend as passive income.

Readers may read earlier article (during pandemic with low optimism prices) by Dr Tee for more details on other Malaysia stock affected by pandemic:
https://www.ein55.com/tag/malaysia-stocks/

3) Hong Kong / China DNAV Stock – Yuexiu Property (HKEx: 123)

Yuexiu Property is a China property developer company (state-owned enterprise), originated in Guangzhou, expanding property businesses to other 19 cities in China. In 2019, Guangzhou Metro (another state-owned enterprise) becomes the second largest investor of Yuexiu Property, deepening the strategic collaboration between 2 giants (transportation and property).

Yuexiu Property is at moderate low Ein55 Optimism of about 40%, near to Ein55 intrinsic value of $2.20. This stock has Discounted NAV of $1.27/share (much lower than its NAV), higher than its current share price, therefore no safety of margin for very conservative investors. Yuexiu Property may still be considered for growth investing with dividend payment (about 6-7% dividend yield, depending on entry price). Trend-following strategy with S.E.T. (Stop Loss, Entry, Target Prices) trading plan may be integrated into stock investing without DNAV protection.

Yuexiu Property belongs to Yuexiu Group, which also owns 2 other subsidiary stocks, Yuexiu Reit (HKEx: 405) and Yuexiu Transport Infrastructure (HKEx: 1052) which may also be considered for dividend stock investing. Major shareholder and sponsor is Guangzhou local government, providing strong support to Yuexiu Group of stocks.

Readers may read earlier articles by Dr Tee for more details on other global and local property stocks including but not limited to Yuexiu Property:
https://www.ein55.com/category/property-market/

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

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

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

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

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Latest 30 STI index Stocks Strategies (卧虎藏龙)

Posted on April 21, 2021 Written by

30 STI index stocks represent the overall Singapore stock market performance. The list is dynamic, recent new comers are Keppel DC Reit (replacing SPH) and Frasers Logistics and Commercial Trust (replacing Jardine Strategic Holdings). During the COVID-19 stock recovery, there is a sector rotation, investors start to pay more attention to cyclical stocks (eg. bank, properties and transportation sectors, etc), which are main businesses of 30 STI stocks.

In this article, you will learn from Dr Tee on the Latest 30 STI Index Stocks Strategies, 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 30 STI Index 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 6 groups of STI stocks with potential. Learn key applications of ALL 30 STI stocks with 1 article here:

4 Banking & Finance STI Stocks (35% of STI):
– DBS Bank (SGX: D05), OCBC Bank (SGX: O39), UOB Bank (SGX: U11), Singapore Exchange (SGX) (SGX: S68)

4 Property STI Stocks (9% of STI):
– CapitaLand (SGX: C31), City Development (SGX: C09), Hongkong Land (SGX: H78), UOL (SGX: U14)

7 REITs STI Stocks (11% of STI):
– Ascendas Reit (SGX: A17U), CapitaLand Integrated Commercial Trust (CICT) (SGX: C38U), Frasers Logistics & Commercial Trust (SGX: BUOU), Keppel DC Reit (SGX: AJBU), Mapletree Commercial Trust (SGX: N2IU), Mapletree Industrial Trust (SGX: ME8U), Mapletree Logistics Trust (SGX: M44U)

4 Jardine STI Stocks (14% of STI):
– Jardine Matheson Holdings – JMH (SGX: J36), Jardine Cycle & Carriage (SGX: C07), Hongkong Land (SGX: H78), Dairy Farm International (SGX: D01)

4 Transportation STI Stocks (6% of STI):
– ComfortDelGro (SGX: C52), Singapore Airlines (SIA) (SGX: C6L), SATS (SGX: S58), Yangzijiang Shipbuilding (YZJ) (SGX: BS6)

8 Other Sectors STI Stocks (27% of STI):
– Genting Singapore (SGX: G13), Keppel Corp (SGX: BN4), ST Engineering (SGX: S63), Sembcorp Industries (SGX: U96), Singtel (SGX: Z74), Thai Beverage (SGX: Y92), Venture Corporation (SGX: V03), Wilmar International (SGX: F34)

Investing in stock index of a country with growing economy (eg. Singapore STI, China A50 / Hong Kong HSI, USA S&P500 and Nasdaq, Malaysia KLCI, etc) is a defensive strategy as the stock index is well diversified over a portfolio of large cap stocks (卧虎藏龙) from various sectors, able to minimize unsystematic risks due to uncertainties in businesses and sector cycles. An investor may invest in stock indices with ETFs (Exchange Traded Fund), eg. STI Singapore has 2 ETFs: SPDR STI  ETF (SGX: ES3) and Nokko AM STI ETF (SGX: G3B), can be traded like any stock.  This provides a way for small capital investor to diversify in investment with minimal capital, eg. 1 STI ETF equals to investing in 30 STI stocks at the same time with different weightages.

The best time to buy 30 STI stocks or index ETF 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 share price), also could have higher potential of capital gains (when market cycle moves from fear in low optimism to greed in high optimism). STI Index stocks 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.

30 STI index stocks represent the 30 largest stocks by trading market capitalization (trading price x trading volume). Therefore, not all are giant stocks (based on Dr Tee giant stock criteria).  Below are the 30 STI index component stocks based on the last price traded (20 Apr 2021), sorted by 6 main groups with details of 3 key Fundamental Criteria:
1) ROE (a criteria for growth stocks, eg. ROE > 5%),
2) Dividend Yield, DY (a criteria for dividend stocks, eg. DY > 3%),
3) Price-to-Book (PB) ratio, Price/NAV (a criteria for undervalue stocks, eg. PB < 1).

From the table sorted below, over 50% (18/30 STI stocks) have growing businesses (over 5% ROE, Return on Equity) while 7 stocks were making losses during pandemic in Year 2020. With recovery of pandemic, there are only 20% (6/30 STI stocks) are still undervalue (Price to Book ratio, PB < 1). There are over 50% (16/30 STI stocks) have dividend yield over 3%, potential for dividend investing. STI ETF has an average dividend yield of about 3%, may be considered as replacement for long term fixed deposit but it requires a stock crisis to start this saving scheme at lower Ein55 optimism level to minimize the potential capital loss due to emotional stock market.

However, not all the 30 STI index 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. 

No30 STI StocksROE (%)PBDY (%)
1Ascendas Reit (SGX: A17U)4.971.44.8
2CapitaLand Integrated Commercial Trust (CICT) (SGX: C38U)2.6831.14.0
3CapitaLand (SGX: C31)–0.92.4
4City Development (SGX: C09)–0.91.0
5ComfortDelGro (SGX: C52)2.3711.50.8
6DBS Bank (SGX: D05)8.6421.43.0
7Dairy Farm International (SGX: D01)20.54.43.9
8Frasers Logistics & Commercial Trust (SGX: BUOU)12.061.34.8
9Genting Singapore (SGX: G13)0.8841.41.1
10Hongkong Land (SGX: H78)–0.34.4
11Jardine Matheson Holdings JMH (SGX: J36)–1.62.7
12Jardine Cycle & Carriage (SGX: C07)8.0731.02.4
13Keppel Corp (SGX: BN4)–0.91.8
14Keppel DC Reit (SGX: AJBU)8.6472.33.4
15Mapletree Commercial Trust (SGX: N2IU)9.3851.23.8
16Mapletree Industrial Trust (SGX: ME8U)10.311.64.1
17Mapletree Logistics Trust (SGX: M44U)8.2351.53.6
18OCBC Bank (SGX: O39)7.2271.12.7
19SATS (SGX: S58)10.413.01.4
20Singapore Exchange (SGX) (SGX: S68)37.98.92.9
21Singapore Airlines (SIA) (SGX: C6L)–1.30.6
22ST Engineering (SGX: S63)22.765.43.8
23Sembcorp Industries (SGX: U96)–1.21.8
24Singtel (SGX: Z74)4.0111.64.8
25Thai Beverage (SGX: Y92)15.962.93.4
26UOB Bank (SGX: U11)6.9021.13.0
27UOL (SGX: U14)0.1340.72.2
28Venture Corporation (SGX: V03)11.52.33.7
29Wilmar International (SGX: F34)8.1251.42.4
30Yangzijiang Shipbuilding (YZJ) (SGX: BS6)7.7810.83.3

Here, let’s focus on 30 STI Index Component Stocks in Singapore over 6 main groups (Hongkong Land is counted twice under both Jardine Stock & Property Stock), learning the unique positioning:

4 Banking & Finance STI Stocks (35% of STI):
====================================
– DBS Bank (SGX: D05), OCBC Bank (SGX: O39), UOB Bank (SGX: U11), Singapore Exchange (SGX) (SGX: S68)

3 major banks in Singapore (DBS, OCBC, UOB – all are giant stocks with close relative performance in medium term) are key pillars to STI, contributing to 33% or 1/3 of STI. Therefore, price movement and business changes in Singapore banks or financial sector would affect STI direction significantly. With improvement of pandemic condition, all 3 Singapore major banks reported better quarterly results. As a result, the share prices have recovered from lower optimism level, currently near to their respective intrinsic values.  This implies the cyclic upside potential of DBS, OCBC and UOB are limited (unless there is another global financial crisis to buy low in future), share prices would grow gradually along their intrinsic values with time.

Main current strategy for 3 bank stocks could be momentum trading (Buy High Sell Higher) with support of increasing bank interest rate (improving interest income with higher NIM, Net Interest Margin) over the next few years.  When Asian stock market are over-price (exceeding intrinsic values) with greedy market emotions, STI may achieve a new historical high, bank stock investors may need to plan for exit strategy at higher Ein55 Optimism level.  Meanwhile, Singapore bank stocks are still suitable for long term dividend investing, especially if 60% dividend payout cap (based on FY2019) may be lifted by MAS from Q2/2021, then dividend yield would increase by 50%, achieving normal dividend yield of nearly 5% (comparable with REITs), an excellent alternative to cash deposit in banks or even Singapore Savings Bond which has only 0.5% interest rate yearly, becoming negative return when inflation is over 1%.

Singapore Exchange (SGX) is a moderate growth stock due to a monopoly business model, regardless of bullish or bearish stock market, as long as there is higher demand to buy or sell stocks, earnings would increase.  With challenges from Hong Kong Stock Exchange (HKEX: 388) who wins the MSCI Future business, Singapore Exchange has to explore new derivatives and widen the customer base to more global investors. Intrinsic value of Singapore Exchange is about $13, still undervalue at the moment, having upside potential but patience is required due to moderate growth.

Even if an investor could not buy any Singapore bank stock, may follow Ein55 Optimism strategy to buy STI index at low optimism (<25%) during pandemic, recovery from 2200+ to 3200+ points, the reward could be 30% – 50% in 1 year, depending on the timing of entry when “others are fearful”.

Readers may read earlier article (June 2020 during pandemic with low optimism prices) by Dr Tee for more details on 30 Banking & Finance stocks in Singapore, not limited to STI:
https://www.ein55.com/2020/06/30-singapore-banking-and-finance-stocks/


4 Property STI Stocks (9% of STI):
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– CapitaLand (SGX: C31), City Development (SGX: C09), Hongkong Land (SGX: H78), UOL (SGX: U14)

4 major property stocks in Singapore (CapitaLand, City Development, Hongkong Land and UOL) are undervalue in nature (PB < 1), only contributing to 9% of STI. With recovery of pandemic, lower optimism levels of property stocks start to appreciate in share prices but still below their intrinsic values currently. For example, Hongkong Land has nearly 2X potential from current share price of $5 to its intrinsic value of about $9 but it has a new variable of stagnant Hongkong property market.  Despite Hongkong Land is listed in Singapore, main property business is located in Hong Kong, devaluation of Hong Kong properties results in accounting losses in FY2020 but cashflow is not affected, therefore able to pay consistent dividend as if a REIT (dividend yield of 4-5%).

Among all 4 STI property stocks, City Development has the weakest business fundamental (partly due to setback in China investment with Sincere Property), therefore even if share price has the most discount, this could be a value trap for longer term investor, therefore a lower quality of crisis stock.  UOL and CapitaLand are relatively stronger in businesses.  Despite Singapore property construction business was affected during pandemic, actual property price is growing up gradually.  Therefore, Singapore property stocks are likely to recover strongly after pandemic.

Temasek stock, CapitaLand, will be delisted in near future after recent restructuring, replacing with another potential new giant stock, CLIM (investment asset management company which focus on growth investing). In future, the undervalue CapitaLand may be listed again with higher premium price, a better option than continue the current listing with long term undervalue price under the theme of property stock.

Similar to bank stocks, Singapore property stocks are also cyclical in nature, more suitable with Buy Low Sell High strategy.  STI property stocks also could be a defender with dividend investing, especially for Hongkong Land, almost behaving like a Reit with steady dividend payment (except not required by law). Since Singapore property stocks are undervalue in nature, this is a layer of safety measure for long term investor as the asset value is more than its current share price.  However, if major shareholder decides to delist an undervalue property stock at low optimism level, then minority shareholders may not gain much after sharing the pain of holding in long term. Therefore, when Singapore stock market and property market rise to a higher optimism level, a property stock investor may consider the exit strategy (Sell High and Buy Low next time), no need to hold for long term.

Readers may read earlier article (June 2020 during pandemic with low optimism prices) by Dr Tee for more details on 47 Undervalue Property Stocks in Singapore, not limited to STI:
https://www.ein55.com/2020/06/47-undervalue-sg-property-stocks-for-privatization-including-perennial/


7 REITs STI Stocks (11% of STI):
==========================
– Ascendas Reit – Areit (SGX: A17U), CapitaLand Integrated Commercial Trust – CICT (SGX: C38U), Frasers Logistics & Commercial Trust – FLCT (SGX: BUOU), Keppel DC Reit (SGX: AJBU), Mapletree Commercial Trust – MCT (SGX: N2IU), Mapletree Industrial Trust – MIT (SGX: ME8U), Mapletree Logistics Trust – MLT (SGX: M44U)

The earlier 2 new comers of STI are MIT and FLCT, both are REITs, The 4 STI reserved list (for future consideration, eg. after replacement of CapitaLand after it is delisted) are all REITs or Trust related stocks, showing the increasing demand for defensive dividend investing: Keppel REIT, Suntec REIT, Frasers Centrepoint Trust and NetLink NBN Trust.

7 STI REITs in Singapore (Areit, CICT, FLCT, Keppel DC Reit  MCT, MIT, MLT) are all giant REITs for dividend investing, the ideal time to invest was during pandemic when “others are fearful” in 2020 with over 30% price correction at low Ein55 Optimism level, resulting in higher dividend yield over 4 to 7%. “Buy Low” is only applicable for giant stocks, otherwise “Buy Low” may become lower for weak fundamental stocks.

Most of these 7 STI REITs have recovered to near or even above their intrinsic values, except CICT is still at moderate low optimism, having over 20% discount below its fair value, growth is slow but steady.  MCT is close to its intrinsic value but slower growth. Both MLT and FLCT are at higher Ein55 Optimism levels, supported by logistics business with higher demand during pandemic.

Singapore REITs in general only have moderate dividend yield after recovery from pandemic so far. A few non-STI REITs with high dividend yield could be a value trap with weaker business, driving lower prices and therefore higher dividend yield).  Dividend yield should not be the main selection criteria of a giant REIT.

These 3 industrial STI REITs (Keppel DC Reit, MIT, Areit) have strong uptrend momentum during the early stage of pandemic (industry sector business was not much affected during circuit breaker time) but suffering in sector rotation when pandemic condition improves in later stage, share prices were corrected more than 20% over the past few months, currently under second round of price recovery, may be considered for medium term trading with trend-following strategies, applying S.E.T. (Stop Loss / Entry / Target Prices) in trading plan.  All these 3 STI REITs have partial business related to high growth data center (100% for Keppel DC Reit, 30% for MIT, 10% for Areit) with higher demand in internet applications during and post pandemic.

In summary, 7 STI REITs are excellent choices for dividend investing but the best time for investing is always when “others are fearful” during Global Financial Crisis with low Ein55 Optimism level. Currently these giant REITs are more suitable for medium term dividend investing or even trading with trend-following strategies. Unlike property market, REITs are hybrid of stocks and properties, therefore they are cyclic in nature, an investor could suffer significant capital loss when buying at high Ein55 Optimism level with downtrend prices, especially near to peak of stock market.

Readers may read earlier article (June 2020 during pandemic with low optimism prices) by Dr Tee for more details on 42 REITs and 16 Business Trusts in Singapore, not limited to STI:
https://www.ein55.com/2020/06/42-singapore-reits-16-business-trusts/


4 Jardine STI Stocks (14% of STI):
=============================
– Jardine Matheson Holdings – JMH (SGX: J36), Jardine Cycle & Carriage – JCC (SGX: C07), Hongkong Land (SGX: H78), Dairy Farm International (SGX: D01)

Jardine group of stocks are influential to STI, even with delisting of JSH, these 4 Jardine giant stocks (JMH, JCC, Hongkong Land and Dairy Farm) still dominate 14% of STI by market cap.  Currently, all these 4 Jardine STI stocks are recovering together from very low Ein55 Optimism level, partly supported by the corporate news of acquisition of JSH by JMH, triggering speculation on potential next undervalue Jardine stock to acquire which may surge in prices.

In fact, acquisition of a giant stock at low optimism (eg. JSH) should be a nightmare for a long term investor, despite a premium price (typically about 20%) is given for the offer to minority shareholders.  For long term investor who bought a stock at higher optimism level, even could hold a stock for long term or lifetime, may not able to stop the major shareholder from leveraging on low optimism opportunity to delist a company at undervalue prices (including CapitaLand, JSH and many other good fundamental stocks), a few may even end up with losses as entry price at high optimism is higher than the acquisition price. 

Therefore, to minimize systematic risks (eg. global financial crisis, sector correction, etc), investing in a portfolio of 10-20 giant stocks at lower Ein55 Optimism with strong holding power could improve the probability of winning in investment. Stock market in short term is a voting machine (up and down daily, sensitive to news) but in a long term, it becomes a weighing machine (steady growth in years with support of growing business).

All the 4 Jardine STI stocks are aligned with recovery of share prices from low Ein55 Optimism levels. They are considered laggard stocks (slower in recovery from pandemic), limited number of giant stocks with higher upside cyclic potential. However, Jardine stocks are cyclical in nature, stock price volatilities may be beyond the risk tolerance level of some traders or even investors.

Readers may read earlier article (Apr 2020 during the worst time of pandemic with very low optimism prices) by Dr Tee for more details on 7 Jardine Group of Giant Stocks, not limited to STI:
https://www.ein55.com/2020/04/7-jardine-king-of-singapore-stocks/


4 Transportation STI Stocks (6% of STI):
===================================
– ComfortDelGro (SGX: C52), Singapore Airlines (SIA) (SGX: C6L), SATS (SGX: S58), Yangzijiang Shipbuilding (YZJ) (SGX: BS6)

There are 4 transportation STI stocks: ComfortDelGro (land transportation), Singapore Airlines (airlines), SATS (partial airlines), Yangzijiang Shipbuilding (shipping). Transportation sector in general is badly affected during pandemic but strongly supported by government grants, therefore these stocks start to recover with slow business improvement in later stage of pandemic.  Stock market is always forward looking, most people believe pandemic would end sooner or later, therefore global vaccination starts to recover the share prices of transportation stock, despite their businesses are still weak.

ComfortDelgro is mainly on taxi business, also has bus / MRT / car inspection businesses through subsidiaries SBS Transit (SGX: S61) and Vicom (SGX: WJP).  The impact of pandemic is much less than the airlines sector, mainly affected during circuit breaker time (Q2/2020) when most people stay at home.  Share price of ComfortDelgro was cut by nearly half during pandemic, then share price starts to recover from low Ein55 Optimism. Intrinsic value of ComfortDelgro is about $2.50, there is cyclic upside potential in share price with diminishing fear, supported by low community cases of COVID-19 in Singapore, allowing land transportation business to go back to normal. Vicom as a more defensive dividend stock (but dividend yield is moderate after rising in share prices after 4-to-1 stock split) with stable and predictable car inspection business (nearly monopoly, sharing the pie with ST Engineering which has STA car inspection centers), supplying critical cashflow to major shareholder, ComfortDelgro (2/3 ownership of Vicom). SBS Transit has become an asset light company after LTA changes of its business model a few years ago (focusing as transport operator with lower expenses and more predictable incomes), gradually become a giant stock but Ein55 Optimism level is relatively high, more suitable for trading, not yet for investing.

YangZiJiang (YZJ) is in shipbuilding industry, relatively stronger than most shipping or marine related stocks with decade long of winter time in this sector. Pandemic in fact helps the shipping industry due to more intercontinental shipping activities. Baltic Dry Index (BDI, a measurement of inflation for shipping industry) has been surging since pandemic, a bullish business signal.  However, YangZiJiang is cyclic in nature, limited growth in long term with moderate dividend yield (3%), more suitable for short term trading, especially when there is rising interest in shipping related stocks.

SIA is a truly crisis stock as airlines passengers drop more than 90%, even parent shareholder, Temasek has to take the lead to help with rights and bonds issues, in additional to Singapore government financial aids.  However, the risk of SIA is not limited to pandemic, the gradual weakening of airlines business was shown even over the last 10 years before pandemic due to competitive airlines industry (eg. price competition for similar flight from City A to City B), similar to another “grandparents blue chip” stock, Singapore Press Holdings – SPH (SGX: T39) with declining business due to less readers (who access free info including news from internet) gradually over the decade.  Despite both SIA and SPH are no longer giant stocks for longer term investing, they may be considered for short term trading (with trend-following strategies) due to speculation of recovery in pandemic, especially after their stock prices were cut by half during pandemic.

SATS is a spinoff company of SIA about 3 decades ago with about 60% airlines gateway business and 40% F&B business.  SATS is indirectly affected by COVID-19 for airlines related business but it can still be compensated by F&B business, therefore a better financial position than most airlines stocks.  In fact, SATS is relatively a better investing choice than SIA, considering both have about 50% price discount during pandemic but SATS has higher growth potential than SIA, therefore may be considered for both longer term investing (current price is only 15% below its intrinsic value) or even shorter term trading.

In fact, even an investor has a lousy stock with weak business fundamental, could not accept the fact of capital loss with “long term investing”, may apply the powerful “Change Horse” strategy, i.e. selling weaker stock, using the remaining capital recovered to buy another stronger stock on the same day. This is a psychological strategy to strengthen the mind of an investor (as if a stock is never sold, just changing its name), despite mistake could be made in the past, there is a second choice, no need to keep on holding to the same weaker stock, changing its future with a giant stock.

Readers may read earlier article (Mar 2020 during the worst time of pandemic with very low optimism prices) by Dr Tee for more details of “Change Horse” strategy (SATS and SIA as examples, assuming an investor only prefers airlines stock):
https://www.ein55.com/2020/03/change-horse-strategy-sia-to-sats/


8 Other Sectors STI Stocks (27% of STI):
==================================
– Genting Singapore (SGX: G13), Keppel Corp (SGX: BN4), ST Engineering (SGX: S63), Sembcorp Industries (SGX: U96), Singtel (SGX: Z74), Thai Beverage (SGX: Y92), Venture Corporation (SGX: V03), Wilmar International (SGX: F34)

The remaining 8 STI stocks come from various industries: Genting Singapore (casino), Keppel Corp (property / oil & gas), ST Engineering (technology), Sembcorp Industries (utility / property), Singtel (telecommunication), Thai Beverage (F&B), Venture Corporation (technology, Wilmar (commodity).  They are aligned with average 3.3% weightage of each STI stock (100% / 30 stocks = 3.3% per stock), total 27% of STI by market cap for 8 stocks.  However, due to less STI stocks in these miscellaneous sectors, therefore changes in each sector do not significantly affect STI index.

For example, early stage of pandemic supports share prices of high-tech stocks globally but STI had little gain due to lack of high-tech stocks, lagging behind comparing with US NASDAQ or even Hong Kong HSI indices.  On the other hand, since global stock market currently value more on cyclic sectors (most of STI component stocks) with pandemic recovery, therefore STI is leading compared to global peers since early Year 2021.  So, it is a blessing in disguise for STI to be lagging, so that late comers still have chance to enter the stock market with higher reward to risk ratio.

Among these 8 other sectors STI stocks, Singtel and Wilmar have the largest market cap. Singtel is a Temasek stock, a defensive dividend stock but telco overseas business overseas (contributing to over 50% revenue) is not as stable as in Singapore, therefore share prices have been corrected lower over the past few years, even before pandemic. Before pandemic, telco industry has been too competitive, over-saturated market with lower profit margins, many global and local telco stocks are affected with declining business (Singtel is still relatively stronger than other telco stocks).  Although 5G technology could create a new wave of future business, most profits may go to smart phone / 5G leaders (eg. Apple, NASDAQ: AAPL) and semi-conductor (eg. TSMC, NYSE: TSM) supplier giant stocks. Singtel has started to recover from low Ein55 Optimism but not supported by growing business, may take more time to achieve intrinsic value of nearly $4.  “Buy Low” in share price without growing business may fall into value trap in longer term (Buy Low Get Lower), therefore careful monitoring of future Singtel business is required for long term investing. Singtel is more suitable for trading currently.

Wilmar is a strong fundamental commodity stock with steady growth in palm oil and sugar businesses, supported by PPB (KLSE: 4065) of Kuok Group as major shareholder (head of Kuok family is Robert Kuok, the richest person in Malaysia while nephew, Kuok Khoon Hong, is Wilmar Chairman), aligning with recovery of commodity market including palm oil and sugar prices from lower Ein55 Optimism (supported further by weakening of US dollar with QE during pandemic). Wilmar share price follows its intrinsic value closely, therefore little opportunity to Buy Low unless there is a global financial crisis in future. Wilmar subsidiary with cooking oil business, YKA, is a new IPO stock in China stock market (larger market cap than Wilmar now due to higher demand in China stock market), would help to support the parent stock in longer term. In general, Wilmar can be a steady defender stock but may not be suitable for those who aim for quick gains.

Remaining 6 other STI stocks, each has its own pros and cons. Genting Singapore is a crisis stock, share price is recovering well from low Ein55 Optimism but business is limited by lack of international tourists to Singapore (potential customers for gambling business which is the main profit generator).  Thai Beverage is a higher quality crisis stock, share price is recovering from very low optimism but beer business is not much affected by pandemic, short term price is affected due to recent news to delay IPO plan for its subsidiary, BeerCo. Thai Beverage’s intrinsic value is about $1, current price is about 30% below this fair value.

ST Engineering is a defensive technology stock, share price is recovering from low optimism in pandemic, near to its intrinsic value, more suitable for medium term dividend investing.  Venture is a cyclic technology stock, more suitable for Buy Low Sell High (currently at high Ein55 Optimism level), more suitable for trading, may not for long term investing. There is a potential of Version 2.0 Dotcom bubble (Version 1.0 was in Year 2000) due to over-price global technology giant stocks, therefore investing in high tech stocks require trend-following trading strategies due to very high optimism in many technology stocks which could be fine for a period of time with support of growing economy after pandemic is over.

Keppel Corp is not supported by Temasek partial acquisition last year but share prices recover gradually with improvement in oil prices during pandemic (after the worst time of negative oil price in May 2020), but business is still declining, mainly supported by property market (eg. Keppel Land and Keppel Reit). Despite Keppel Corp plans to exit from Oil & Gas sector eventually in future, it could still benefit from the recovery of oil market as Keppel Offshore & Marine division may be merged with Sembcorp Marine (SGX: S51), another Temasek crisis stock, which is demerged recently from Sembcorp Industries.  After demerging, Sembcorp Industries becomes a giant stock overnight (before demerging, 1/3 business was affected by subsidiary, Sembcorp Marine with losing business in oil & gas), share prices have recovered from low Ein55 Optimism in pandemic, near to its intrinsic value currently, supported mainly by growing land development business and defensive utility business.

Out of 30 STI Index stocks, there are 50% or 15 Temasek related stocks: DBS, Singtel, Sembcorp Industry, Keppel Corp, Keppel DC Reit, CapitaLand, CICT, SIA, SATS, ST Engineering, Singapore Exchange, Areit, MIT, MCT and MLT. Temasek as a major or significant shareholder, provides stability to business and even share prices to these Temasek stocks, especially during stock or business crisis (including non-STI stock such as Olam (SGX: O32) when it was attacked by Muddy Waters during shorting many years ago.

Readers may read earlier article (Aug 2020 during pandemic with low optimism prices) by Dr Tee for more details on 26 Temasek stocks, not limited to STI:
https://www.ein55.com/2020/08/temasek-giant-stocks-corporate-actions/

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

Between knowledge (eg. reading this educational article of 30 STI stocks) and fortune (eg. making profits in stocks), there is a bridge to cross called Action (Buy, Hold, Sell, Wait or Shorting).  Before making any decision, reader may need to understand own personality, eg. short term trading or long term investing, risk tolerance level and reward expectation, etc, then aligned with the right strategies. Similar to each profession, stock trading and investment skills can be learned, even in a free way (you are doing the right way now) if one could put in effort consistently to learn and apply.

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

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

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

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

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Filed Under: Market Cycle Investing, Market Outlook, Stock Market Tagged: , , , , , ,

Top 100 Singapore and Global Bank Stocks to Profit (大小通吃)

Posted on March 23, 2021 Written by

An individual or even a country could not survive without a national bank which supplies cash to exchange for products and services needed in daily life. Even with low interest rates globally, giant bank stocks could still remain profitable, share prices recovering strongly during pandemic, sharing consistent dividends as passive incomes. Higher government bond yield could further support these giant bank stocks with positive outlook of more interest incomes.

In this article, you will learn from Dr Tee on Top 100 Singapore and Global Bank Stocks to profit in current stock market, 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 10 global giant bank 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) Singapore Giant Bank Stocks:

– DBS Bank (SGX: D05), OCBC Bank (SGX: O39), UOB Bank (SGX: U11)

2) Malaysia Giant Bank Stocks:

– Public Bank (Bursa: 1295), Hong Leong Bank (Bursa: 5819), CIMB Bank (Bursa: 1023)

3) Hong Kong / China Giant Bank Stocks:

– Bank of China Hong Kong (HKEX: 2388), China Construction Bank (HKEX: 939)

4) US Giant Bank Stocks:

– JP Morgan Chase (NYSE: JPM), HDFC Bank (NYSE: HDB)

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, especially for global giant bank stocks suffering with share prices in lower optimism, recovering together with pandemic, profiting in both capital gains (appreciation in share prices) and passive incomes (consistent dividend payments).

The best time to buy a giant bank 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.

There are thousands of bank stocks globally but some are weak bank stocks, may not able to survive in the next Global Financial Crisis. The largest bank may not always a giant stock. For example, HSBC Bank (HKEX: 5) is the largest bank in Hong Kong but it is not a giant stock, share prices have been declining over the past decade with weaker businesses. A giant stock is not defined by its size, even a small regional bank could be a giant bank stock for investment (following Dr Tee Giant Criteria).

From the table sorted below for Top 100 Singapore and Global Bank Stocks, each has growing businesses over the past decade with reasonable dividends and positive ROE (Return on Equity). Most of these top bank stocks are affected temporarily by pandemic but still remain profitable with low interest environment. Since future bank interest rates are likely higher, Net Interest Margin (NIM) of global banks would be higher, therefore future earnings would be improving.  This potential is reflected in an hidden way with higher bond yield of governments globally.

However, not all the Top 100 global bank stocks listed are suitable for investing and/or trading. 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 stock with low optimism price may be a value trap as this may be the result of weakening businesses. Therefore, deeper analysis is required with LOFTP (Level, Optimism, Fundamental, Technical, Personal Analysis) Strategies. 

Nevertheless, this list of Top 100 global bank stocks can be a useful guide for as the first level filtering. If reader could not find a bank stock of interest under these 7 global exchanges (SGX, Bursa, HKEX, IDX, SET, NYSE, NASDAQ), then may need to deeper analysis before taking any action.

NoBank StocksExchangeROE (%)DY (%)
1DBS Bank (SGX: D05)SGX8.63.1
2OCBC Bank (SGX: O39)SGX7.22.7
3UOB Bank (SGX: U11)SGX6.93.0
4Public Bank (BURSA: 1295)BURSA11.23.1
5BIMB (BURSA: 5258)BURSA10.46.7
6Hong Leong Financial Group (BURSA: 1082)BURSA9.12.2
7Hong Leong Bank (BURSA: 5819)BURSA91.9
8RHB BANK (BURSA: 1066)BURSA7.95.2
9AM BANK (BURSA: 1015)BURSA6.42.4
10MBSB (BURSA: 1171)BURSA64.4
11Affin Bank (BURSA: 5185)BURSA3.83.9
12CIMB Bank (BURSA: 1023)BURSA3.32.6
13China Merchants Bank (HKEX: 3968)HKEX142.2
14ICBC Bank (HKEX: 1398)HKEX10.95.3
15China Construction Bank (HKEX: 939)HKEX10.65.4
16Bank of China Hong Kong (HKEX: 2388)HKEX10.65.1
17Hang Seng Bank (HKEX: 11)HKEX9.33.6
18Bank of Communications (HKEX: 3328)HKEX97.5
19Chong Hing Bank (HKEX: 1111)HKEX7.35.2
20Dah Sing Banking Group (HKEX: 2356)HKEX6.54.9
21Dah Sing (HKEX: 440)HKEX55.2
22Bank of East Asia (HKEX: 23)HKEX2.92.4
23Bank Mega (IDX: MEGA)IDX16.53.2
24Bank Central Asia (IDX: BBCA)IDX14.71.6
25Bank Woori Saudara Indonesia 1906 (IDX: SDRA)IDX6.91.6
26Bank Bumi Arta (IDX: BNBA)IDX30.2
27Bank of Ayudhya (SET: BAY)SET80.9
28Kasikornbank (SET: KBANK)SET6.73.6
29Bangkok Bank (SET: BBL)SET3.82.0
30HDFC Bank (NYSE: HDB)NYSE15.10.1
31Western Alliance Bancorporation (NYSE: WAL)NYSE14.81.0
32Toronto-Dominion Bank (NYSE: TD)NYSE12.53.6
33Royal Bank of Canada (NYSE: RY)NYSE12.33.5
34Bank of Hawaii (NYSE: BOH)NYSE11.22.8
35Canadian Imperial Bank of Commerce (NYSE: CM)NYSE104.3
36JP Morgan Chase (NYSE: JPM)NYSE9.82.3
37Bank of Nova Scotia (NYSE: BNS)NYSE9.24.3
38Bank of Montreal (NYSE: BMO)NYSE9.13.6
39U.S. Bancorp (NYSE: USB)NYSE8.73.0
40Prosperity Bancshares (NYSE: PB)NYSE8.62.4
41Community Bank System (NYSE: CBU)NYSE7.82.1
42Cullen/Frost Bankers (NYSE: CFR)NYSE7.52.4
43PNC Financial Services (NYSE: PNC)NYSE5.92.6
44Sterling Bancorp (NYSE: STL)NYSE4.71.1
45Credicorp (NYSE: BAP)NYSE35.9
46Northrim BanCorp (NASDAQ: NRIM)NASDAQ14.83.1
47Summit State Bank (NASDAQ: SSBI)NASDAQ13.92.8
48Meta Financial Group (NASDAQ: CASH)NASDAQ13.80.4
49Stock Yards Bancorp (NASDAQ: SYBT)NASDAQ13.42.1
50Washington Trust Bancorp (NASDAQ: WASH)NASDAQ13.13.8
51Lakeland Financial Corporation (NASDAQ: LKFN)NASDAQ12.81.7
52City Holding Company (NASDAQ: CHCO)NASDAQ12.72.7
53Arrow Financial Corporation (NASDAQ: AROW)NASDAQ12.23.0
54First Bancorp (NASDAQ: FNLC)NASDAQ12.14.1
55First Financial Bankshares (NASDAQ: FFIN)NASDAQ121.0
56C&F Financial Corp (NASDAQ: CFFI)NASDAQ11.53.1
57Glacier Bancorp (NASDAQ: GBCI)NASDAQ11.52.2
58Century Bancorp (NASDAQ: CNBKA)NASDAQ11.40.5
59First Citizens BancShares (NASDAQ: FCNCA)NASDAQ11.30.2
60Camden National Corporation (NASDAQ: CAC)NASDAQ11.22.8
61East West Bancorp (NASDAQ: EWBC)NASDAQ10.81.4
62Eagle Bancorp (NASDAQ: EGBN)NASDAQ10.71.6
63Republic Bancorp (NASDAQ: RBCAA)NASDAQ10.12.5
64Commerce Bancshares (NASDAQ: CBSH)NASDAQ101.3
65German American Bancorp (NASDAQ: GABC)NASDAQ101.6
66Ameris Bancorp (NASDAQ: ABCB)NASDAQ9.91.1
67Horizon Bancorp (NASDAQ: HBNC)NASDAQ9.92.5
68UMB Financial Corp (NASDAQ: UMBF)NASDAQ9.51.3
69Enterprise Bancorp (NASDAQ: EBTC)NASDAQ9.42.1
70Southside Bancshares (NASDAQ: SBSI)NASDAQ9.43.3
71Penns Woods Bancorp (NASDAQ: PWOD)NASDAQ9.35.2
72BancFirst Corporation (NASDAQ: BANF)NASDAQ9.31.8
73Community Bankers Trust (NASDAQ: ESXB)NASDAQ9.22.4
741st Source Corporation (NASDAQ: SRCE)NASDAQ9.12.3
75Community Trust Bancorp (NASDAQ: CTBI)NASDAQ9.13.3
76Signature Bank (NASDAQ: SBNY)NASDAQ9.10.9
77American National BankShares (NASDAQ: AMNB)NASDAQ8.93.1
78First Internet Bancorp (NASDAQ: INBK)NASDAQ8.90.6
79NBT Bancorp (NASDAQ: NBTB)NASDAQ92.6
80CVB Financial Corp (NASDAQ: CVBF)NASDAQ8.83.0
81Simmons First National Corporation (NASDAQ: SFNC)NASDAQ8.62.2
82TowneBank (NASDAQ: TOWN)NASDAQ8.22.3
83BOK Financial Corporation (NASDAQ: BOKF)NASDAQ8.22.1
84Home Bancshares (NASDAQ: HOMB)NASDAQ8.21.9
85International Bancshares (NASDAQ: IBOC)NASDAQ82.2
86ConnectOne Bancorp (NASDAQ: CNOB)NASDAQ7.81.4
87CNB Financial Corp (NASDAQ: CCNE)NASDAQ7.62.7
88Independent Bank Corp (NASDAQ: INDB)NASDAQ7.12.0
89TriCo Bancshares (NASDAQ: TCBK)NASDAQ71.7
90People’s United Financial (NASDAQ: PBCT)NASDAQ74.0
91Enterprise Financial Services Corp (NASDAQ: EFSC)NASDAQ71.5
92Wintrust Financial Corp (NASDAQ: WTFC)NASDAQ6.61.4
93Columbia Banking System (NASDAQ: COLB)NASDAQ6.62.8
94Heartland Financial USA (NASDAQ: HTLF)NASDAQ6.41.5
95Pinnacle Financial Partners (NASDAQ: PNFP)NASDAQ6.20.7
96Flushing Financial Corporation (NASDAQ: FFIC)NASDAQ5.63.4
97Bryn Mawr Bank Corp (NASDAQ: BMTC)NASDAQ5.22.2
98Renasant Corp (NASDAQ: RNST)NASDAQ3.92.0
99South State Corp (NASDAQ: SSB)NASDAQ2.62.2
100Pacific Premier Bancorp (NASDAQ: PPBI)NASDAQ2.22.3

Here, let’s focus on 10 Global Giant Bank Stocks in 4 different countries (Singapore, Malaysia, Hong Hong / China, USA), learning the unique positioning for each stock:

1) Singapore Giant Bank Stocks:

– DBS Bank (SGX: D05), OCBC Bank (SGX: O39), UOB Bank (SGX: U11)

There are only 3 major banks in Singapore after past few decades of merging and acquisition with strict regulations by MAS to ensure stable financial conditions (eg. regulation of limiting FY2020 dividend payment to 60% of previous year to preserve cash during pandemic). So, it is not surprise that all 3 Singapore bank stocks (DBS Bank, OCBC Bank and UOB Bank) are all giant stocks.

Despite weaker business with higher Non-Performing Loan (NPL) and lower interest income (lower interest rate with lower Net Interest Margin, NIM), all 3 major Singapore bank stocks remain profitable, worst time of Q2/2020 is over, recovering steadily each quarter, supporting their share prices to recover from lower optimism level.

Currently, DBS Bank share price is at moderate high optimism of 60+% Ein55 Optimism level, over intrinsic value of $22.  Therefore, DBS is more suitable for shorter term trading (Buy Low Sell High / Buy High Sell Higher). 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 $27, then a short term trader may need to exit, even with losses, if breakout strategy is the main assumption for trading strategy.

For both OCBC Bank and UOB Bank, share prices have recovered from low optimism to mid optimism of nearly 50%, near to intrinsic values of $12 (OCBC) and $26 (UOB) respectively. It is possible for share prices to go above intrinsic value but it requires a more greedy stock market emotion in Singapore (eg. when STI is above 3000-3300 long term resistance zone). Therefore, cyclic investing strategies (Buy Low Sell High / Buy Fair Price Sell High) may be considered for both stocks.

Readers may refer to earlier article of Dr Tee for more details on 30 Singapore Banking & Finance stocks, mostly were at lower optimism level (9 months ago, just recovering from the worst time of pandemic, congratulation to readers who have taken action to Buy Low after reading this article):
https://www.ein55.com/2020/06/30-singapore-banking-and-finance-stocks/

2) Malaysia Giant Bank Stocks:

– Public Bank (Bursa: 1295), Hong Leong Bank (Bursa: 5819), CIMB Bank (Bursa: 1023)

There are more banks in Malaysia than in Singapore, therefore careful selection of giant bank stocks is crucial for Malaysian stock investors.  Public Bank (Teh Hong Piow) and Hong Leong Bank (Quek Leng Chan) are excellent private banks founded and managed by reputable bankers, surviving through past few decades of merging and acquisition of Malaysian banks.

Fundamentally, both Public Bank and Hong Leong Bank are relatively stronger than the peers of other Malaysia banks. Public Bank has just recovered above low optimism to about 30% level, aiming for RM6 intrinsic value, may be considered for cyclic investing.  As for Hong Leong Bank, recovery is much stronger to mid optimism level with intrinsic value of RM19, more suitable for medium term trend-following trading.

CIMB is the second largest bank in Malaysia but performance is better than the largest bank, Maybank. CIMB is a more cyclical stock, share prices is recovering from very low optimism, currently still around 20% level, having higher upside potential. An investor may apply cyclic investing strategy, target for CIMB could be intrinsic value of RM7 or even higher if the Bursa stock market becomes more greedy, then there is opportunity to sell at high optimism level.

Readers may read articles of Dr Tee for more details on Public Bank and Hong Leong Bank, both were at lower optimism level then (ample time to Buy Low if one could take action):
https://www.ein55.com/tag/public-bank/

3) Hong Kong / China Giant Bank Stocks:

– Bank of China Hong Kong (HKEX: 2388), China Construction Bank (HKEX: 939)

Many China bank stocks are also listed in Hong Kong stock market (H-share), including Bank of China Hong Kong and China Construction Bank, both are fundamentally strong with high growth potential.  Hong Kong stock exchange is tighter in regulation, therefore some investors may feel more confident investing China stocks through Hong Kong, especially for state-owned giant stocks with additional protection by China government.

Bank of China Hong Kong (HKEX: 2388) is a different stock from parent company, Bank of China (HKEX: 3988). Performance of BOC Hong Kong (limited to BOC entities in Hong Kong) is stronger than parent stock, therefore a better choice for growth investing (comparable for both stocks if only considering dividend investing), aiming for higher capital gains. BOC Hong Kong has recovered from past 1 year of low optimism level, breaking above the HK$25 resistance, challenging other higher price level, optimism is still moderate low above 30%, aiming for intrinsic value of HK$38. BOC Hong Kong is a multi-purpose stock, suitable as defender (dividend stock with 5% dividend yield, much better than 0.5% interest if keeping cash in a bank), midfielder (capital gains and dividend) and even a striker (uptrend price for short term with trend-following trading).

China Construction Bank (CCB) is recovering from low optimism during pandemic, currently at Ein55 Optimism of 40%, not far from intrinsic value of HK$8. With strong economy recovery in China in later stage of pandemic, CCB would benefit in near future for businesses, which could support the share prices further.

Readers may read another article of Dr Tee for more details on another Hong Kong / China giant bank stock: ICBC Bank (world and China largest bank):
https://www.ein55.com/2020/12/4-global-bank-stocks-with-vaccine-after-phase-3-covid-19/

4) US Giant Bank Stocks:

– JP Morgan Chase (NYSE: JPM), HDFC Bank (NYSE: HDB)

JP Morgan Chase is the largest bank in USA while HDFC Bank is the largest private bank in India (stock is also listed in NYSE), both are growth stocks, fundamentally strong, supported by growing economy in respective local countries.

JP Morgan share prices recover from correction at mid optimism level in pandemic, currently at high optimism level of over 70%, much higher than its intrinsic value of US$100, driven by the greedy emotion in US stock market.  JPM is more suitable for trend-following trading, buying after recovering from each short term correction, or after breaking each intermediate resistance for momentum trading. Since US stock market (both NYSE and NASDAQ) at high optimism level is very volatile, a trader needs to assess own risk tolerance level, choosing the right stocks for trading.

HDFC Bank is relatively more undervalue than JPM. Optimism of HDFC is recovering from low level in pandemic to mid optimism of about 40% currently, near to intrinsic value of US$90. With higher populations in India for decades (would takeover China as No 1 country with the most population in about 10 years time), HDFC Bank would benefit in future businesses, especially after pandemic has ended in India.  Besides growth investing, HDFC may also be considered for medium term or short term momentum trading with different price targets based on traders unique personalities.

Readers may view recent video by Dr Tee for more details on HDFC Bank (price was 10% lower then):
https://www.ein55.com/2021/01/6-crisis-investing-momentum-stocks-with-life-changing-20-minutes-talk/

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We may not need to be a banker to enjoy the economic moat of a bank with financial license authorized by each government. An investor could leverage on global giant stocks to make money together in countries with growing economy.  All sectors and levels (from individual to country, 大小通吃) need liquidity or cash supplied by bank, therefore investing in a giant bank would have higher probability of winning in higher share prices with consistent dividend payment, supported by growing businesses.

Instead of keeping hard earn money as cash deposit (earning less than 0.5% interest) in a trusted bank, why not taking calculated risk, investing in a portfolio of giant bank stocks with higher potential return in medium to long term (with possible capital loss in short term, especially when entry against the trend)? If a bank is not safe for investment, then it may not be safe for keeping one’s cash in saving account. Instead of lending money with ultra-low interest rate to a bank, one may make money together with a giant bank through stock ownership to share the profits.

Earlier readers of Dr Tee network who took action on a portfolio of giant stocks (not limited to bank stocks) aligned with own personalities could enjoy significant return after 6-12 months later, especially during pandemic period. Reading article is only a “knowledge collector”. An investor needs to learn to convert knowledge into potential fortune through action taking (Buy / Hold / Sell / Wait / Shorting). If not, after reading over 100 articles or other people opinions, the results would still be zero if no action is taken.

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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.

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

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

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Filed Under: Market Cycle Investing, Market Outlook, Stock Market Tagged: , , , ,

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

Posted on March 5, 2021 Written by

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.

NoDividend StocksDY (%)ROE (%)
1AEM Holdings (SGX: AWX)2.146.10
2AIMS APAC REIT (SGX: O5RU)6.25.30
3AP Oil International (SGX: 5AU)4.44.50
4Ascendas India Trust (SGX: CY6U)5.69.10
5Ascendas Reit (SGX: A17U)54.80
6Ban Leong Technologies (SGX: B26)512.80
7BRC Asia (SGX: BEC)3.87.70
8CapitaLand (SGX: C31)2.8-6.80
9CapitaLand China Trust (SGX: AU8U)4.73.30
10CapitaLand Integrated Commercial Trust (SGX: C38U)4.12.90
11Centurion Corp (SGX: OU8)2.917.30
12Challenger Technologies (SGX: 573)4.819.20
13China Sunsine Chemical Holdings (SGX: QES)27.60
14Chip Eng Seng Corporation (SGX: C29)4.4-10.00
15DBS Bank (SGX: D05)3.28.60
16Delfi (SGX: P34)5.67.70
17Dutech Holdings (SGX: CZ4)4.16.70
18ESR REIT (SGX: J91U)7.56.90
19Excelpoint Technology (SGX: BDF)711.80
20Far East Orchard (SGX: O10)5.71.60
21First Reit (SGX: AW9U)19.88.30
22First Sponsor Group (SGX: ADN)2.36.00
23Food Empire Holdings (SGX: F03)2.412.30
24Frasers Centrepoint Trust (SGX: J69U)3.74.00
25Frasers Logistics & Commercial Trust (SGX: BUOU)5.35.30
26Frencken Group (SGX: E28)2.512.70
27Great Eastern Holding (SGX: G07)2.710.30
28GuocoLand (SGX: F17)3.81.00
29Haw Par Corporation (SGX: H02)2.44.20
30HoBeeLand (SGX: H13)4.210.80
31Hongkong Land Holdings (SGX: H78)4.5-5.70
32Hotel Grand Central (SGX: H18)41.5
33Hotung Investment Holdings (SGX: BLS)10.18.40
34Hotel Properties (SGX: H15)3.2-1.90
35Hyphens Pharma International (SGX: 1J5)3.214.7
36IREIT Global (SGX: UD1U)7.66.2
37Japan Foods Holding (SGX: 5OI)2.9-0.60
38Jardine Cycle & Carriage (SGX: C07)4.811.00
39Jardine Matheson Holdings (SGX: J36)3.3-0.70
40Karin Technology Holdings (SGX: K29)41.30
41Keppel Infrastructure Trust (SGX: A7RU)6.80.00
42Keppel DC Reit (SGX: AJBU)3.48.10
43Keppel Reit (SGX: K71U)54.30
44KSH Holdings (SGX: ER0)3.50.10
45LHT Holdings (SGX: BEI)4.88.10
46Lum Chang Holdings (SGX: L19)15.4-3.50
47Lung Kee Bermuda (SGX: L09)6.96.90
48Manulife US Reit (SGX: BTOU)8.47.70
49Mapletree Commercial Trust (SGX: N2IU)3.74.10
50Mapletree Industrial Trust (SGX: ME8U)4.67.40
51Mapletree Logistics Trust (SGX: M44U)4.56.10
52Mapletree North Asia Commercial Trust (SGX: RW0U)6.44.50
53MegaChem (SGX: 5DS)3.89.8
54Meghmani Organics (SGX: M30)2.617.00
55Metro Holdings (SGX: M01)2.82.10
56Micro-Mechanics Holdings (SGX: 5DD)4.129.70
57Nam Lee Pressed Metal Industries (SGX: G0I)4.74.40
58NetLink NBN Trust (SGX: CJLU)5.46.90
59New Toyo International Holdings (SGX: N08)8.6-4.60
60Nordic Group (SGX: MR7)2.36.20
61OCBC Bank (SGX: O39)2.87.20
62Olam International (SGX: O32)5.19.20
63Oxley Holdings (SGX: 5UX)6.3-25.00
64Pacific Century Regional Development (SGX: P15)18.9-3.80
65ParkwayLife Reit (SGX: C2PU)3.47.3
66PNE Industries (SGX: BDA)8.67.60
67PropNex (SGX: OYY)4.734.40
68Prudential (SGX: K6S)2.1-3.60
69QAF (SGX: Q01)5.210.40
70Q&M Dental Group (SGX: QC7)4.715.90
71Raffles Medical Group (SGX: BSL)2.37.30
72Riverstone Holdings (SGX: AP4)2.423.30
73Samurai 2K Aerosol (SGX: 1C3)2.911.20
74Sasseur Reit (SGX: CRPU)7.36.70
75Singapore Exchange (SGX: S68)3.139.40
76Sheng Siong Group (SGX: OV8)4.137.20
77Singtel (SGX: Z74)4.56.20
78Spindex Industries (SGX: 564)2.411.50
79Sri Trang Agro Industry (SGX: NC2)525.00
80Starhill Global Reit (SGX: P40U)53.90
81ST Engineering (SGX: S63)3.822.80
82Straco Corporation (SGX: S85)4.85.30
83Suntec Reit (SGX: T82U)53.60
84Tat Seng Packaging Group (SGX: T12)2.812.00
85Tan Chong International (SGX: T15)4.90.40
86Thai Beverage (SGX: Y92)3.315.70
87The Hour Glass (SGX: AGS)4.411.20
88Tianjin Zhongxin Pharmaceutical (SGX: T14)511.20
89Top Glove Corporation (SGX: BVA)5.560.20
90UMS Holdings (SGX: 558)4.517.20
91Union Gas Holdings (SGX: 1F2)434.50
92United Global (SGX: 43P)7.163.10
93United Overseas Australia UOA (SGX: EH5)2.64.30
94UOB Bank (SGX: U11)3.16.90
95United Overseas Insurance UOI (SGX: U13)3.15.70
96UOL Group (SGX: U14)2.31.30
97Valuetronics Holdings (SGX: BN2)5.713.80
98VICOM (SGX: WJP)2.818.20
99Wilmar International (SGX: F34)3.78.10
100Yangzijiang Shipbuilding Holdings (SGX: BS6)4.27.80

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.

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

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

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Filed Under: Fundamental Analysis, Market Cycle Investing, Market Outlook, Stock Market, Technical Analysis, Value Investing Tagged: , ,

88 Singapore 10X Growth Stocks for Bullish New Year (招财牛年)

Posted on February 18, 2021 Written by

A daydream of an investor may be to become 10X richer in this New Year, similar to bullish 10X Stocks such as IFAST and Tesla over the past 1 year.  This dream could be realized one day but patience is required with strategies aligned with own personality.

In this article, you will learn from Dr Tee on 88 Growth Stocks in Singapore, 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 growth stocks and also generalized strategy, applicable for all growth stocks including speculative growing Bitcoin.

1) Growth Small Cap Stock: IFAST Corporation (SGX: AIY)

2) Growth Technology Stock: AEM Holdings (SGX: AWX)

3) Growth Healthcare Stock: Top Glove Corporation (SGX: BVA / Bursa: 7113)

4) Growth Commodity Stock: Wilmar International (SGX: F34)

5) Growth REIT: Keppel DC REIT (SGX: AJBU)

6) Growth Bank Stock: DBS Bank (SGX: D05)

Economy for Year 2020 of pandemic is the worst of past few decades, therefore naturally New Year 2021 would have very high probability of stronger economy which could support the stock market.  This is especially true for growth stocks with growing businesses, especially for sectors benefiting from COVID-19.  Most investors may consider US growth stocks but there are actually growth stocks in each country including Singapore but requires more careful selection.

From the table sorted below for 88 growth stocks in Singapore, each has growing businesses over the past few years with ROE (Return on Equity) over 5%.  However, 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 growing business may not be a giant stock as share price could be undervalue (eg. IFAST over 1 year ago). Therefore, deeper analysis is required with LOFTP (Level, Optimism, Fundamental, Technical, Personal Analysis) Strategies.

NoGrowth StockROE (%)
1AEM Holdings (SGX: AWX)39.277 – 46.127
2AF Global (SGX: L38)7.546 – 7.835
3ARA LOGOS Logistics Trust (SGX: K2LU)5.77
4Avarga (SGX: U09)10.909 – 16.183
5Best World International (SGX: CGN)33.312 – 37.565
6BRC Asia (SGX: BEC)7.69
7Bukit Sembawang Estates (SGX: B61)5.748 – 6.071
8CapitaLand (SGX: C31)5.677 – 9.144
9Centurion Corp (SGX: OU8)16.878 – 17.312
10Challenger Technologies (SGX: 573)19.20
11China Aviation Oil (Singapore) (SGX: G92)8.122 – 11.956
12China Everbright Water (SGX: U9E)8.967 – 9.461
13Civmec (SGX: P9D)6.682 – 8.812
14Cordlife Group (SGX: P8A)5.010 – 5.803
15Cortina Holdings (SGX: C41)14.875 – 16.955
16CSE Global (SGX: 544)13.641 – 15.295
17DBS Bank (SGX: D05)9.22
18Delfi (SGX: P34)10.324 – 12.404
19EC World Reit (SGX: BWCU)6.586 – 9.536
20Excelpoint Technology (SGX: BDF)11.84
21Food Empire Holdings (SGX: F03)12.527 – 12.621
22Fragrance Group (SGX: F31)5.731 – 5.774
23Frencken Group (SGX: E28)13.064 – 14.345
24Fu Yu Corporation (SGX: F13)7.755 – 9.165
25Great Eastern Holding (SGX: G07)9.656 – 11.658
26Hafary Holdings (SGX: 5VS)8.208 – 14.627
27Haw Par Corporation (SGX: H02)5.773 – 6.074
28HC Surgical Specialists (SGX: 1B1)21.486 – 31.730
29Hi-P International (SGX: H17)12.810 – 13.511
30Ho Bee Land (SGX: H13)9.386 – 10.760
31Hong Fok Corporation (SGX: H30)5.472 – 5.646
32IFAST Corporation (SGX: AIY)20.318
33InnoTek (SGX: M14)7.737 – 10.352
34International Cement Group (SGX: KUO)7.670 – 8.169
35IREIT Global (SGX: UD1U)15.614 – 19.447
36ISEC Healthcare (SGX: 40T)7.986 – 11.733
37Jardine Cycle & Carriage (SGX: C07)10.990 – 12.848
38Jason Marine Group (SGX: 5PF)7.956 – 8.800
39JB Foods (SGX: BEW)15.314 – 18.495
40JEP Holdings (SGX: 1J4)10.852 – 12.047
41Keppel DC Reit (SGX: AJBU)8.65
42Kimly (SGX: 1D0)22.89
43LHN (SGX: 41O)19.85
44Lonza Group (SGX: O6Z)12.82
45Mapletree Industrial Trust (SGX: ME8U)9.558 – 10.313
46Mapletree Logistics Trust (SGX: M44U)6.989 – 8.235
47MegaChem (SGX: 5DS)7.744 – 9.044
48Meghmani SDS (SGX: M30)17.027 – 19.670
49Moneymax Financial Services (SGX: 5WJ)10.776 – 13.586
50Moya Holdings Asia (SGX: 5WE)5.802 – 8.681
51Multi-Chem (SGX: AWZ)15.52
52Neo Group (SGX: 5UJ)15.226 – 31.737
53OCBC Bank (SGX: O39)8.285 – 10.663
54Olam International (SGX: O32)9.452 – 10.858
55Overseas Education (SGX: RQ1)5.735 – 6.814
56Pan Hong Holdings Group (SGX: P36)15.439 – 24.742
57Penguin International (SGX: BTM)7.56
58Powermatic Data Systems (SGX: BCY)11.321 – 14.265
59Raffles Infrastructure Holdings (SGX: LUY)13.354 – 17.629
60Riverstone Holdings (SGX: AP4)16.520 – 23.263
61Samurai 2K Aerosol (SGX: 1C3)6.561 – 11.231
62SBS Transit (SGX: S61)13.45
63Singapore Exchange (SGX: S68)37.901 – 39.443
64Sheng Siong Group (SGX: OV8)24.176 – 29.055
65SIIC Environment Holdings (SGX: BHK)6.609 – 7.192
66Sing Holdings (SGX: 5IC)11.425 – 15.352
67Singapore Medical Group (SGX: 5OT)6.984 – 9.360
68Singapore Post (SGX: S08)5.445 – 7.271
69Singapore Shipping Corporation (SGX: S19)10.174 – 11.647
70Sinostar PEC Holdings (SGX: C9Q)13.639 – 14.966
71Singapore Technologies Engineering (SGX: S63)25.387 – 26.007
72The Hour Glass (SGX: AGS)11.168 – 12.532
73Tianjin Zhongxin Pharmaceutical Group (SGX: T14)11.170 – 11.610
74Top Glove Corporation (SGX: BVA)29.64
75UG Healthcare Corporation (SGX: 8K7)25.664 – 53.137
76UMS Holdings (SGX: 558)13.794 – 17.241
77United Global (SGX: 43P)63.059 – 64.360
78UOB Bank (SGX: U11)9.882 – 11.656
79United Overseas Insurance (SGX: U13)7.186 – 9.657
80Valuemax Group (SGX: T6I)11.733 – 11.767
81Valuetronics Holdings (SGX: BN2)13.763 – 14.529
82Venture Corporation (SGX: V03)12.318 – 14.547
83Vicplas International (SGX: 569)8.08
84Wee Hur Holdings (SGX: E3B)8.797 – 9.673
85Wilmar International (SGX: F34)7.716 – 8.887
86Yanlord Land Group (SGX: Z25)9.178 – 11.861
87Yangzijiang Shipbuilding RMB (SGX: SO7)7.549 – 9.986
88Yangzijiang Shipbuilding SGD (SGX: BS6)7.249 – 9.986

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

1) Growth Small Cap Stock: IFAST Corporation (SGX: AIY)

A giant stock may not need to be big in size, true for IFAST, a small cap stock. Over the last few years, IFAST price has been around $1/share (see earlier article shared by Dr Tee, IFAST was still at lower price then) while businesses continue to grow each year over the past decade, faster speed during pandemic with support of financial technology initiatives.

Over the last 1 year, IFAST share price has surged from 70+ cents to nearly $7, creating a miracle of 10X stock price, comparable with popular international growth stock such as Tesla.  IFAST has been a hidden gem, a small cap stock, therefore not getting attention of big funds. With more positive corporate news (eg. overseas expansion), driven by market greed (under theme of fintech), supported by more bigger size investors, it is relatively easier to move a small cap stock.

IFAST stock has created record high price every few months, Optimism level is over 90%, therefore some investors are afraid the “bubble” may burst, even it is a fundamentally strong company.  This concern is valid, therefore a safer strategy (applicable for all growth stocks) is to apply trend-following strategy for momentum or swing trading, entering only after recovery from each phase of price correction, ensuring the uptrend prices (higher high, higher low) to support the bull run. Exit depends on own personality, whether longer term investing (business analysis) or shorter term trading (ending of uptrend).

2) Growth Technology Stock: AEM Holdings (SGX: AWX)

Since the dotcom bubble burst in Year 2000, it takes 2 decades for semiconductor sector to rise again. AEM is similar to many semiconductor stocks, cyclical in nature, business could vary from very poor (losses in earlier years) to excellent (over 30% growth in last few years).  Therefore, it is crucial not to position in technology growth stocks for long term, aligning with sector cycle (eg. trade with booming in 5G applications).

Over the last 5 years, AEM share price has surged from 4 cents to over $4, creating a miracle of 100X stock price.  A stock 10X in share price may have potential to become 100X (common in US stock market, especially over a few decades of growth investing) but not many investors have faith to hold (especially during global financial crisis), therefore only gaining a small 10% profit after selling fast. AEM was a small cap stock, similar to IFAST, therefore relatively easier to move in prices, especially when driven by market greed.

AEM stock has created record high price every year with uptrend semiconductor cycle, Optimism level is over 90%, bubble may not burst in short term as semiconductor sector is still bullish, leading by TSMC with record high demand.  Due to high optimism with uptrend prices, AEM may be considered with trend-following trading but a trader has to be prepared for high volatility, strict compliance with S.E.T. (Stop Loss / Entry / Target Prices) trading plan.

3) Growth Healthcare Stock: Top Glove Corporation (SGX: BVA / Bursa: 7113)

Over the past 2 decades, Top Glove (Bursa) has multiplied by 500 times in share prices (aligning with 5 times rise during last 1 year of pandemic). Unlike AEM which business may not be sustainable when cyclic semiconductor bubble is burst one day, Top Glove and other glove giant stocks, eg. Riverstone (SGX: AP4), Hartalega (Bursa: 5168), SuperMax (Bursa: 7106) and Kossan (Bursa: 7153), have sustainable businesses for decades due to rising demand in both healthcare and manufacturing sectors, partly supported by lower material cost (rubber).

With recovery of pandemic, there is a significant sector rotation, stocks benefiting from COVID-19 are under significant price correction, despite the earnings are at historical high with strongest businesses ever.  Fundamental or business sometimes are being used as excuses to buy up certain growth stocks at high prices. When the market greed is diverted to other sector, the share prices are naturally lower. 

Glove stocks including Top Glove are experiencing bearish price trend over the past few months due to sector rotation (changes in target for market greed), prices are corrected significantly but still over 75% Optimism level, may not be suitable for entry due to lack of market speculation (required to sustain higher prices). When these giant glove stocks are falling below intrinsic values or ideally at lower optimism in future stock crisis, it would be good time for long term investing. Currently a better action would be “Wait”.

4) Growth Commodity Stock: Wilmar International (SGX: F34)

Commodity sector (Energy, Agriculture, Precious Metals, etc) has been under low optimism over the past 5 years, recovering gradually over the past 1 year, together with improvement in pandemic condition. So, it is timely to consider commodity stock, aligning to its sector investment clock.

Since Wilmar is listed with RTO in 2006, share price has gone up 10X over the past 2 decades, reflecting the importance of its agriculture products (palm oil, sugar, etc) to modern world with less land for plantations. Wilmar is supported by parent stock PPB (Bursa: 4065) with Kuok Family as sponsor, driven by subsidiary stock, YKA, with bullish 2X prices after recent IPO in China (Shenzhen: 300999).

Commodity has a longer term market cycle but the growth is more moderate (therefore more stable) compared to technology sector (eg. semiconductor / software stocks). Wilmar is near 50% Optimism level of fair value, therefore still reasonable to consider for long term investing or short term trading (supported by uptrend prices, entry after recovery of each price correction).

5) Growth REIT: Keppel DC REIT (SGX: AJBU)

In the internet era with more 5G applications, data usage will be enormous with explosive growth for next decade. So, Keppel DC Reit is positioned nicely to host data storage, collecting consistent growing rental as passive incomes. Keppel DC Reit has 100% business in data center while Mapletree Industrial Trust (SGX: ME8U) has about 1/3 businesses in this growing sector.

Over the past 5 years, Keppel DC Reit has experienced 3X in share prices from $1 to $3 but the gains is not limited share price appreciation. Its dividend is doubled every few years, therefore suitable to position as mid-fielder stock to have a balance of both growth (price appreciation) and dividend (passive income).

After reaching 100% Optimism level during peak of pandemic, Keppel DC Reit has experienced slower growth with sector rotation. The prices (sideways) are not strong enough for shorter term trading and price correction is insufficient for longer term investing (about 75% Optimism).  Therefore, similar to glove stocks, an investor may need to “Wait” for next crisis to Buy Low, or wait for next rally to Buy High (only after uptrend is established for short term).

6) Growth Bank Stock: DBS Bank (SGX: D05)

Bank sector is a key pillar of a nation, not to mention DBS Bank, a leader blue chip stock for decades. The worst time of bank stocks during pandemic is over, record high NPL (Non-Performing Loan) and low interest rate but most global banks including DBS are still profitable.

Unlike other strong growth stocks, DBS is a slower but more steady growth stock. Share prices has gone up 5X in cyclical way over the past decade, it is just a matter of time for the stock to become 10X. Many people want to get rich quick, therefore prefer to buy bullish stock with over 2X potential in less than 1 year but unknowingly exposing to high risk (potential price correction exceeding risk tolerance level), especially for speculative stocks with weaker businesses, driven by market greed.

DBS is at 60% Optimism level, higher than fair value, more suitable for medium term trading but Singapore stock market is lack of speculation due to smaller market size. DBS may also be considered as defender with average 5% dividend yield but it is also cyclical in nature due to interest rate and economic cycles, more suitable to invest after each major stock crisis. DBS is a potential 10X stock but not within 1 year as IFAST, more suitable for longer term market cycle investors. Similar strategy may be applied to OCBC Bank (SGX: O39) and UOB Bank (SGX: U11).

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It is not a daydream to own a 10X stock one day.  The key difference is 10X within 1 year (eg. IFAST) or over decades (eg. Wilmar and DBS).  In short term, stock market behaves like a voting machine, therefore trend-following strategy is crucial to ride the uptrend wave but traders need to overcome greed (to sell high) and fear (to buy low) by following the trading plan strictly. In long term, stock behaves like a weighing machine, therefore fundamental analysis (growing business) with lower optimism undervalue prices would have high probability of winning rate, especially an investor has patience to wait or hold for years, making big money slowly.

This growth investing or trend-following trading strategies may be applied for Bitcoin or other growth / momentum stocks. Unlike growth stocks, Bitcoin (half commodity / half forex) has no business fundamental, therefore some investors may view Bitcoin as speculation. However, value could be derived from prices, as long as there are believers (actual trades of buy and sell), value could be created with Bitcoin remains limited in number (demand more than supply). Similar to gold or land with limited supply, Bitcoin becomes rare, harder to explore new supply in future, main variable will be demand which can be market greed driven.

With more acceptance of Bitcoin as “currency” in real world and support of big funds, Bitcoin has partial quality of growth investing. However, due to the unpredictable nature of technology (eg. safe storage of Bitcoin), it is more suitable as small capital investment. Even Bitcoin has 10X potential after reaching historical high of US$50,000 (over 60% Optimism level), it is volatile and speculative in nature, less than 5% of capital may be considered. Bitcoin has become speculative tools of big players, may not be suitable for retail traders with little capital. Similarly, trend-following strategy (entry after recovery from correction) may be applied for speculative trading. Of course, an investor has a choice to ignore Bitcoin, especially there are so many global and local growth stocks with real businesses.

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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.

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

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

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Filed Under: Market Cycle Investing, Market Optimism, Market Outlook, Stock Market Tagged: , , ,

Top 10 World Richest Giant Stocks (富可敌国)

Posted on February 5, 2021 Written by

Investing in Top 10 World Richest persons stocks is an easy way to share their profits from growing businesses. However, the ranking of Top 10 Richest may vary (eg. Elon Musk moves from No 30 to No 1 when Tesla price surged by 10X in 1 year) with share prices, market emotions and businesses development, especially with mixed impact of the uncertain COVID-19 pandemic.

In this article, you will learn from Dr Tee on Top 10 World Richest Giant Stocks for longer term investing 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 richest person giant stock.

#1) Jeff Bezos – Amazon (US NASDAQ: AMZN)

#2) Elon Musk – Tesla (US NASDAQ: TSLA)

#3) Bernard Arnault – LVMH (France PA: MC)

#4) Bill Gates – Microsoft (US NASDAQ: MSFT)

#5) Mark Zuckerberg – Facebook (US NASDAQ: FB)

#6) Zhong Shanshan – Nongfu Spring (HKEx: 9633)

#7) Larry Page – Alphabet / Google (US NASDAQ: GOOGL / GOOG)

#8) Warren Buffett – Berkshire (US NYSE: BRK-A / BRK-B) / Apple (US NASDAQ: AAPL)

#9) Larry Ellison – Oracle (US NYSE: ORCL)

#10) Sergey Brin – Alphabet / Google (US NASDAQ: GOOGL / GOOG)

Most people may think the richest persons in the world are very rich because of their profitable businesses. This understanding is partially correct as it is actually dependent on their share prices which indirectly dependent on businesses and also stock market emotions.

The real time Top 10 World Richest list is updated here. We may observe that the earlier Top 10 list (eg. retail business) are taken over by Technology Giants (dominating 7 out of 10) during the pandemic stock crisis. Let’s learn to position in these Top 10 giant stocks with either long term investing or short term trading.

#1) Jeff Bezos – Amazon (US NASDAQ: AMZN)

Amazon has evolved from a small online book seller into the largest stock in the world with ecommerce business over the past few decades.  COVID-19 pandemic has helped the business to grow at faster speed in Year 2020, supporting its share price at high level, making founder Jeff Bezos to be the World Richest person (despite this position may rotate between Elon Musk, depending on daily share price).

Amazon stock is at 60% Optimism level, a strong growth stock near its fair price. Uptrend momentum in short term has been slowed down by sector rotation due to recovery of pandemic. It is more suitable for short term swing trading (Buy Low Sell High every few months) but upside may not be attractive for traders who aim for higher or quicker return.

#2) Elon Musk – Tesla (US NASDAQ: TSLA)

Elon Musk created a miracle to become the world richest person (for a short period of time, rotating this position with Jeff Bezos, depending on share prices) when Tesla share prices surged by 10 times over the last 1 year.

Tesla is a business of future, mainly based on investors believe in enormous potential of electrical vehicles, driven by 5G technology, supported by clean energy policies of major economies (eg. USA, Europe, China, etc). Despite the company has not been profitable for the last decade until 2020 (mainly due to high R&D cost), stock investing is forward looking, rising revenue (mainly China an US automotive markets) with rosy picture of next decade has supported the surge in share prices of Tesla and most automotive stocks with electrical cars.

Tesla stock is at 98% Optimism level, more suitable for trend-follow momentum trading in short term (Buy High Sell Higher) with S.E.T. (Stop Loss / Entry / Target Prices) trading plan. The growing business with greedy market emotions would continue to power this stock and entire electrical car market until the bubble is burst one day. Shorter term position is a good compromise to ride the trend while waiting for the next global financial crisis.

Elon Musk and Jeff Bezos may extend the competition of No 1 from the earth to outer space businesses, technology of future. Few people could predict the dominating technology for future, therefore it may be safer to focus in technology which are proven for the next 1 decade, eg. 5G, electric vehicles, AI, etc

#3) Bernard Arnault – LVMH (France PA: MC)

LVMH is a consumer discretionary stock (eg. luxury handbags) listed in Europe, business was temporary affected by COVID-19, resulting in a major correction in share prices.  With recovery in pandemic condition, LVMH is recovering as a strong growth stock.

LVMH stock is at 80% Optimism level, more suitable to position as short term momentum stock (Buy High Sell Higher) until the COVID-19 recovery rally is over one day.  Since the customers of businesses are mostly rich people, a stock investor may align with bullish stock market to enter or hold the position, exiting when the next black swan comes in future.

#4) Bill Gates – Microsoft (US NASDAQ: MSFT)

#8) Warren Buffett – Berkshire (US NYSE: BRK-A / BRK-B) / Apple (US NASDAQ: AAPL)

Bill Gates and Warren Buffett are good friends, even their stocks are inter-related.  Warren Buffett donates Berkshire stock to Bill Gates and Melinda Gates Charity Fund, contributing to 45% share ownership of Bill Gates stock portfolio.  At the same time, Bill Gates has sold most of the Microsoft shares (only keeping about 1%), focusing in charity project with a portfolio of giant stocks.  Berkshire invests in a portfolio of global giant stocks including 40% in Apple, founded by Steve Jobs, which is a competitor of Microsoft.

So, it is interesting that the fate of these 3 giant stocks are integrated together in the same boat: Berkshire, Apple and Microsoft.  Microsoft has evolved beyond PC into other high businesses such as cloud services and gaming. Apple is transforming from PC to mobile phones, even planning on Apple Car to compete with Tesla in future. Berkshire (through Warren Buffett) is the smartest, no need to work hard on any business, simply making decision to invest in the right stocks (eg. average up on Apple stock investing).

Optimism levels of these 3 stocks are 90% (Microsoft), 50% (Apple) and 60% (Berkshire) respectively. Microsoft is more suitable for short term swing trading (Buy Low Sell High) while Apple and Berkshire may be considered for short term momentum trading or even growth investing for long term (moderate optimism at fair value).

Both Microsoft and Apple have dominated the world technology for the past few decades, having potential to continue the influence for another decade with condition the businesses must evolve at the same time with new technology. It is hard to invest in any technology stock for long term as few technologies could last over 1 decade without challenges of disruptive technologies. So, technology stock investors need to monitor the evolution of technology (which contributes to 7 of 10 Top 10 World Richest persons stocks) at least yearly.

#5) Mark Zuckerberg – Facebook (US NASDAQ: FB)

Facebook rises fast with popularity of internet, leveraging on power of networking with 3 billion global users, supporting founder Mark Zuckerberg to be the youngest Top 10 World Richest person. Even Facebook co-founder, Eduardo Saverin, becomes Singapore Top 10 Richest persons, but no need to work, simply holding tight to Facebook stock ownership.

Facebook stock is at 35% Optimism level. It is a strong young growth giant stock but short term momentum is slowed down with sector rotation during recovery phase of pandemic. It is more suitable for short term swing trading (Buy Low Sell High) in the current stock market.

#6) Zhong Shanshan – Nongfu Spring (HKEx: 9633)

By right, this position (China No 1 richest person, world Top 10 richest person) should be reserved for Jack Ma of Alibaba but due to abandon of IPO of Ant Group, it is taken over by Zhong Shanshan, the founder of both Nongfu Spring and Beijing Wantai Biological Pharmacy (China Shanghai: 603392).

Nongfu Spring is at 50% Optimism level but more meaningful for short term momentum or swing trading as it is still a very young stock with IPO less than 1 year.  Political economy has strong influence on China related stocks (recent stock correction of Alibaba is a good example), therefore more speculative in nature. Diversification is key for investing in China related stocks.

Currently, out of Top 10 World Richest, 8 are from US stocks, 1 from Europe stock, 1 from China stock.  This shows the strength of US as No 1 economy with the most number of richest people with giant businesses. In the near future, more China stocks may join this Top 10 World Richest list (eg. Jack Ma but only if Ant Group could get approval for IPO).

#7) Larry Page – Alphabet / Google (US NASDAQ: GOOGL / GOOG)

#10) Sergey Brin – Alphabet / Google (US NASDAQ: GOOGL / GOOG)

Both Larry Page and Sergey Brin are co-founders and major shareholders of Google (Alphabet stock), therefore naturally both are listed in Top 10 World Richest list. During pandemic, Google reported stronger business growth, similar to other technology giant stocks which profit from COVID-19 crisis.  In future, Google may also share a pie of electrical car industry with its AI and car system development, extending from search engine and mobile phone system businesses, into other future technologies with extensive R&D for decade.

Alphabet (Google) stock is at 70% Optimism level, both a growth stock for investing and momentum stock for short term trading.  Unlikely other giant technology stock, growth of Google is more sustainable (moderate), may be considered for longer term investor, therefore each future global stock crisis will be an opportunity for investing (Buy Low & Hold) until Google may become an outdated technology stock (similar to Nokia, Yahoo or Motorola, which has been obsolete or out of fashion). Therefore, a giant technology stock has to continuously develop future new technology, renewing itself to remain competitiveness and lifespan of a giant.

#9) Larry Ellison – Oracle (US NYSE: ORCL)

Oracle is a software giant stock, supporting the founder Larry Ellison to be the Top 10 World Richest person.  Position of No 9-10 are marginal, changes in daily share prices may change ranking easily.  So, the key may not be to invest in the highest position of Top 10 list but to use the list a reference, filtering giant stocks with growing business, ideally entering during stock market crisis (without affecting the business).

Oracle stock is at 50% Optimism level, more cyclical in business than other Top 10 World Richest stocks It may be considered for both cyclical investing and swing trading.

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90% of majority wealth in the world is with 10% of minority in rich people. Therefore, a smart stock investor may align interest with the Top 10 Richest persons in each country or in the world. However, it is important to focus in only 10-20 giant stocks with sustainable business with forward looking economic moat, diversifying over several sectors (instead of investing in only 1 sector, eg. technology, which may suffer in version 2.0 dotcom bubble one day). There are also many other little giant stocks which are relatively less well known but having more upside potential in stock prices than the famous giant stocks of the richest persons.

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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.

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

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

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Filed Under: Market Cycle Investing, Market Outlook, Stock Market Tagged: , , ,

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

Posted on January 25, 2021 Written by

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.

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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.

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

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

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Filed Under: Fundamental Analysis, Market Cycle Investing, Market Outlook, Stock Market Tagged: , ,
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