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Download Dr Tee 2 eBooks for Stock Market 2021 with Joe Biden as US President during Pandemic

Posted on November 8, 2020 Written by Dr Tee (Ein55)

Fresh from Oven: Download the latest 2 FREE high-quality stock investment eBooks by Dr Tee on (1) “Global Market Outlook 2021”, covering comprehensive investment topics: Stock, Property, Commodity, Forex, Bond and Political Economy & (2) “Dream Team Portfolio 2021” with Top 10 global stocks for capital gains and passive incomes. Past readers have benefited both stock investment ebook, learning Simple and Powerful strategies which deliver incredible results in stocks.

Are you worried or excited about the current global stock market with impact of COVID-19 pandemic especially with the new US President, Joe Biden? Every crisis is an opportunity for investing. You will learn useful methods step by step from 2 valuable FREE stock investment eBook by Dr Tee which work in stock market. Take action now to surprise yourself!

Dr Tee 刚完成2本投资秘籍。《环球市场展望2021》书内覆盖很多在环球主要市场 (美国、新加坡、香港、中国、欧洲) 的投资议题及提供解决方法。《10大梦幻股票2021》书则分享了各种实用投资策略于10大高潜能股票。很多读者已经从Dr Tee过去发表的股票投资书中受惠，大家可在Dr Tee 的最新报告中洞悉环球市场目前面对的风险及机遇。

Table of Contents (FREE Stock Investment eBook #1):
Global Stock Market Outlook 2021

Mass Market Sentiment Survey （大众市场情绪调查）
Review of Global Stock Markets （环球股市回顾）
US Market Outlook （美国市场展望）
Regional Market Outlook (Europe, China, Hong Kong) （区域市场展望）
Singapore Market Outlook (Stock & Property) （新加坡市场展望）
Conclusions and Recommendations （总结及建议）

Table of Contents (FREE Stock Investment eBook #2):
Top 10 Global Stocks – Dream Team Portfolio 2021

Personalized Stock Investment Portfolio （个人化股票投资组合）
Ein55 Global Top 10 Stocks （10大全球高潜能股票）
Summary of Actions （投资方向总结）

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

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

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

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

1) FANG Stocks

– Facebook (NASDAQ: FB)

– Amazon (NASDAQ: AMZN)

– Netflix (NASDAQ: NFLX)

– Google (Alphabet) (NASDAQ: GOOGL)

2) MAN Stocks

– Microsoft (NASDAQ: MSFT)

– Apple (NASDAQ: AAPL)

– Nvidia (NASDAQ: NVDA)

3) ATM Stocks

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

– Tencent (HKEX: 700)

– Meituan (HKEX: 3690)

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

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

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

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

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

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

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

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

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

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

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

No	Name	Code	ROE (%)	Dividend Yield (%)	PB = Price /NAV
1	Alibaba	9988	20.29	–	7.51
2	Tencent	700	21.86	0.2	9.74
3	Meituan	3690	2.46	–	17.79
4	Facebook	FB	18.29	–	7.31
5	Amazon	AMZN	18.67	–	22.33
6	Netflix	NFLX	24.62	–	20.90
7	Alphabet	GOOGL	17.05	–	5.25
8	Microsoft	MSFT	37.43	1.0	13.63
9	Apple	AAPL	61.06	0.7	27.97
10	Nvidia	NVDA	22.91	0.1	23.79

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

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

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

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

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

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

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

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

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

Filed Under: Market Cycle Investing, Market Outlook, Stock Market Tagged: growth stock, Internet Stocks, technology stock

60 Singapore Electronics Technology Stocks (雷电交加)

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

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

In this article, you will learn from Dr Tee on 9 Singapore Electronics Giant Stocks for longer term investing and / or short term trading with impact of COVID-19 crisis. Bonus for readers who could read every words of the entire article, additional references on 5G related stocks.

1) Electronics Giant Stocks

– Venture Corporation (SGX: V03)

– Valuetronics Holdings (SGX: BN2)

2) Computer / IT Giant Stocks

– Powermatic Data Systems (SGX: BCY)

– Ban Leong Technologies (SGX: B26)

3) Semiconductor / 5G Giant Stocks

– CEI Limited (SGX: AVV)

– Micro-Mechanics Holdings (SGX: 5DD)

– AEM Holdings (SGX: AWX)

– UMS Holdings (SGX: 558)

– Frencken Group (SGX: E28)

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

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

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

Acma Limited (SGX: AYV), Advanced Systems Automation (SGX: 5TY), Adventus Holdings (SGX: 5EF), AEI Corporation (SGX: AWG), AEM Holdings (SGX: AWX), Allied Technologies Limited (SGX: A13), Amplefield Limited (SGX: AOF), Asian Micro Holdings (SGX: 585), ASTI Holdings (SGX: 575), Avi Tech Electronics (SGX: BKY), Ban Leong Technologies (SGX: B26), CDW Holding (SGX: BXE), CEI Limited (SGX: AVV), CFM Holdings (SGX: 5EB), Chuan Hup Holdings (SGX: C33), CPH Limited (SGX: 539), Creative Technology (SGX: C76), Datapulse Technology (SGX: BKW), Dragon Group International (SGX: MT1), Dutech Holdings (SGX: CZ4), Duty Free International (SGX: 5SO), Ellipsiz Limited (SGX: BIX), Excelpoint Technology (SGX: BDF), Frencken Group (SGX: E28), Global Invacom Group (SGX: QS9), Global Testing Corporation (SGX: AYN), GP Industries (SGX: G20), Grand Venture Technology (SGX: JLB), HGH Holdings (SGX: 5GZ), Hu An Cable Holdings (SGX: KI3), ICP Limited (SGX: 5I4), Jadason Enterprises (SGX: J03), JEP Holdings (SGX: 1J4), Karin Technology Holdings (SGX: K29), Ley Choon Group (SGX: Q0X), Libra Group (SGX: 5TR), Manufacturing Integration Technology (SGX: M11), Maruwa Yen1k (SGX: M12), MeGroup Limited (SGX: SJY), Micro-Mechanics Holdings (SGX: 5DD), Plastoform Holdings (SGX: AYD), Polaris Limited (SGX: 5BI), Powermatic Data Systems (SGX: BCY), Renaissance United (SGX: I11), Serial System (SGX: S69), SEVAK Limited (SGX: BAI), Shinvest Holding (SGX: BJW), Sunright Limited (SGX: S71), Sunrise Shares Holdings (SGX: 581), SUTL Enterprise (SGX: BHU), Thakral Corporation (SGX: AWI), The Place Holdings (SGX: E27), Trek 2000 International (SGX: 5AB), TT International (SGX: T09), UMS Holdings (SGX: 558), Valuetronics Holdings (SGX: BN2), Venture Corporation (SGX: V03), Willas-Array Electronics Holdings (SGX: BDR), World Precision Machinery (SGX: B49).

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

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

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

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

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

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

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

1) Electronics Giant Stocks

– Venture Corporation (SGX: V03)

– Valuetronics Holdings (SGX: BN2)

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

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

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

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

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

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

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

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

2) Computer / IT Giant Stocks

– Powermatic Data Systems (SGX: BCY)

– Ban Leong Technologies (SGX: B26)

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

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

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

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

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

Alpha Energy Holdings (SGX: 5TS), Alset International (SGX: 40V), Artivision Technologies (SGX: 5NK), Asiatravel.com Holdings (SGX: 5AM), A-Smart Holdings (SGX: BQC), Azeus Systems Holdings (SGX: BBW), Boustead Singapore Limited (SGX: F9D), Captii (SGX: AWV), Challenger Technologies (SGX: 573), CSE Global (SGX: 544), DISA (SGX: 532), International Press Softcom (SGX: 571), ISDN Holdings (SGX: I07), Keppel DC Reit (SGX: AJBU), Koyo International (SGX: 5OC), M Development (SGX: N14), Mapletree Industrial Trust (SGX: ME8U), New Silkroutes Group (SGX: BMT), New Wave Holdings (SGX: 5FX), PEC (SGX: IX2), Plato Capital (SGX: YYN), Procurri Corporation (SGX: BVQ), Rich Capital Holdings (SGX: 5G4), Silverlake Axis (SGX: 5CP), SinoCloud Group (SGX: 5EK), Stratech Group (SGX: BRR), Synagie Corp (SGX: V2Y), YuuZoo Networks Group Corp (SGX: AFC).

3) Semiconductor / 5G Giant Stocks

– CEI Limited (SGX: AVV)

– Micro-Mechanics Holdings (SGX: 5DD)

– AEM Holdings (SGX: AWX)

– UMS Holdings (SGX: 558)

– Frencken Group (SGX: E28)

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

4) Taiwan Technology Giant Stock (ADR)

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

4) Taiwan Technology Giant Stock (ADR)

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

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

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

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

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

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

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

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

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

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

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

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

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

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

1) IT Retail Giant Stock

– Challenger Technologies (SGX: 573)

2) Software Giant Stock

– Silverlake Axis (SGX: 5CP)

3) Data Center Giant REITs

– Keppel DC Reit (SGX: AJBU)

– Mapletree Industrial Trust (SGX: ME8U)

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

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

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

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

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

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

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

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

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

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

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

1) IT Retail Giant Stock

– Challenger Technologies (SGX: 573)

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

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

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

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

2) Software Giant Stock

– Silverlake Axis (SGX: 5CP)

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

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

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

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

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

3) Data Center Giant REITs

– Keppel DC Reit (SGX: AJBU)

– Mapletree Industrial Trust (SGX: ME8U)

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

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

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

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

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

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

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

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

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

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

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

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

48 Singapore Food & Beverage Stocks (民以食为天)

Posted on September 12, 2020 Written by Dr Tee (Ein55)

During crisis, a consumer may not able to afford luxury products but still need to eat and drink to survive. Therefore, an investor may consider 48 Food & Beverage (F&B) stocks in Singapore, especially those defensive growth stocks.

In this article, you will learn from Dr Tee on 9 Singapore F&B Giant Stocks which are efficient in making money with food as essential products (consumer staples) but having mixed impacts during COVID-19 stock crisis. Bonus for readers who could read the entire article: a strategy to eat and drink for free for lifetime.

1) Supermarket F&B Stocks

– Sheng Siong (SGX: OV8)

– Dairy Farm International (SGX: D01)

2) Restaurant F&B Stocks

– Japan Foods Holding (SGX: 5OI)

– Old Chang Kee (SGX: 5ML)

3) Consumer F&B Stocks

– QAF (SGX: Q01)

– Thai Beverage (SGX: Y92)

4) Mixed Industry F&B Stocks

– Amara Holdings (SGX: A34)

– SATS (SGX: S58)

– Wilmar International (SGX: F34)

There are 48 Food & Beverage Stocks in Singapore, making money from the most essential products of people (民以食为天):

From the table sorted below for 48 Singapore F&B stocks, only 2/3 are profitable (32 / 48 stocks were making money in businesses last year). Therefore, careful choices of giant F&B stocks are critical, many are at lower optimism share prices due to either stock market fear or actual business is affected during COVID-19 pandemic.

Nearly half of F&B stocks (22 / 48) have Price-to-Book ratio ($ / NAV = PB) < 1 with discount over asset but only 1 stock (Amara) has high quality asset related to properties which will be discussed further. Buy undervalue stocks require patience, Buy Low may not able to Sell High in future if there is no alignment with one’s unique personality and other consideration of investment. Buy low-quality asset simply at low price (very low PB << 1) may have high risk of bankruptcy if the company could not be profitable.

No	Stock Name	Code	PB = Price /NAV	ROE (%)
1	ABR Holdings (SGX: 533)	533	1.46	2.1
2	Abterra (SGX: L5I)	L5I	2.81	–
3	Acma (SGX: AYV)	AYV	0.31	–
4	Amara Holdings (SGX: A34)	A34	0.51	7.0
5	Bonvests Holdings (SGX: B28)	B28	0.39	0.4
6	ChasWood Resources (SGX: 5TW)	5TW	-0.11	–
7	China Fishery (SGX: B0Z)	B0Z	0.15	5.1
8	China Kangda Food (SGX: P74)	P74	0.12	0.7
9	Dairy Farm International (SGX: D01)	D01	4.78	26.8
10	Del Monte Pacific (SGX: D03)	D03	0.36	–
11	Delfi (SGX: P34)	P34	1.41	12.4
12	Dukang (SGX: BKV)	BKV	0.04	–
13	Envictus (SGX: BQD)	BQD	0.32	–
14	Food Empire Holdings (SGX: F03)	F03	1.11	12.6
15	Fraser and Neave F&N (SGX: F99)	F99	0.60	5.2
16	Hosen Group (SGX: 5EV)	5EV	0.48	–
17	Japan Foods Holding (SGX: 5OI)	5OI	1.97	3.2
18	Japfa (SGX: UD2)	UD2	0.87	13.6
19	JB Foods (SGX: BEW)	BEW	0.81	18.5
20	Jumbo Group (SGX: 42R)	42R	3.19	17.0
21	Katrina Group (SGX: 1A0)	1A0	10.80	–
22	Khong Guan (SGX: K03)	K03	0.62	–
23	Kimly (SGX: 1D0)	1D0	3.28	22.8
24	Koufu (SGX: VL6)	VL6	3.81	27.1
25	Luzhou Bio-Chem (SGX: L46)	L46	-0.75	–
26	Mewah International (SGX: MV4)	MV4	0.47	2.2
27	Neo (SGX: 5UJ)	5UJ	1.81	15.2
28	No Signboard Holdings (SGX: 1G6)	1G6	1.34	–
29	Old Chang Kee (SGX: 5ML)	5ML	3.15	3.2
30	OneApex (SGX: 5SY)	5SY	1.16	–
31	Pacific Andes (SGX: P11)	P11	0.09	8.5
32	Pavillon (SGX: 596)	596	0.25	1.1
33	QAF (SGX: Q01)	Q01	1.06	5.4
34	Sakae (SGX: 5DO)	5DO	0.17	–
35	SATS (SGX: S58)	S58	2.01	10.4
36	Sheng Siong (SGX: OV8)	OV8	6.39	24.176
37	Shopper360 (SGX: 1F0)	1F0	0.6144	5.642
38	Sino Grandness (SGX: T4B)	T4B	0.04	6.4
39	Soup Restaurant (SGX: 5KI)	5KI	2.92	7.692
40	ST Group Food (SGX: DRX)	DRX	1.13	15.6
41	SunMoon Food (SGX: AAJ)	AAJ	4.55	–
42	Thai Beverage (SGX: Y92)	Y92	2.58	20.087
43	Tung Lok Restaurants (SGX: 540)	540	2.63	–
44	United Food (SGX: AZR)	AZR	0.13	–
45	Wilmar International (SGX: F34)	F34	1.01	7.716
46	Yamada Green Resources (SGX: BJV)	BJV	0.99	2.253
47	Yeo Hiap Seng (SGX: Y03)	Y03	0.75	2.873
48	Zhongxin Fruit (SGX: 5EG)	5EG	1.01	3.926

There are only 3 F&B related stocks (Dairy Farm, Thai Beverage, Wilmar) which are also listed in 30 STI component stocks:

F&B stocks may not be defensive as not all the products are popular (eg. taste of food) and some may not have the right marketing (even restaurant with tasty food and/or low prices may not able to last if few people know). Therefore, selection of F&B giant stocks is different from selection of “Best Food” in Singapore or each country. In fact, it is possible for average taste or even “junk” food for some people (eg. fast food McDonald’s, NYSE: MCD) to be a global giant stock.

Here, let’s focus on 9 Singapore F&B giant stocks over 4 main categories:

1) Supermarket F&B Stocks

– Sheng Siong (SGX: OV8)

– Dairy Farm International (SGX: D01)

Both Sheng Siong and Dairy Farm make more profits in supermarket business during COVID-19 pandemic as most people would stay longer at home (cook more often at home) and need more consumer staples (using more essential products in daily life). However, share prices performances of both supermarket giant stocks are distinctly different with Sheng Siong at high optimism and Dairy Farm at low optimism.

Sheng Siong is mainly on supermarket business, therefore it is clear on positive impact of COVID-19 crisis, share prices dropped to low optimism in Mar 2020 during the most fearful time of pandemic, then quickly recovered and speculated to historical high prices, together with other COVID-19 related stocks, eg, glove / healthcare stocks: Medtecs International Corporation (SGX: 546), UG Healthcare Corporation (SGX: 41A), Top Glove Corporation (SGX: BVA), Riverstone Holdings (SGX: AP4). These COVID-19 beneficiary stocks including Sheng Siong have been falling down from high optimism with fading of fear of COVID-19, therefore both stock traders (trend-following) and investors (price over value) have to take note, not to “Buy High Sell Low” eventually. Sheng Siong may be considered when short term momentum is back (depending on the prices) or when there is global financial crisis in future (with low optimism prices again)

Dairy Farm has more diversified businesses within the Asia Pacific, besides Cold Storage, also has 7-Eleven, IKEA, restaurants, etc, which have different impacts during pandemic. Despite overall business is still profitable, the profitability is declining over the past 5 years, even before COVID-19. In addition, Dairy Farm belongs to Jardine Group, bearish share prices at low optimism is aligned for all Jardine related stocks, eg: Jardine Matheson Holding – JMH (SGX: J36), Jardine Strategic Holding – JSH (SGX: J37), Jardine Cycle & Carriage – JCC (SGX: C07), Hongkong Land (SGX: H78), Mandarin Oriental Hotel (SGX: M04), etc. When market sentiment of Jardine Group related stocks is negative, they would take longer time to recover in stock crisis. Dairy Farm may be considered for crisis investing with protection of consistent dividends (about 5% dividend yield) but an investor needs to have longer term holding power and able to control fear with falling prices in short term to medium terms.

2) Restaurant F&B Stocks

– Japan Foods Holding (SGX: 5OI)

– Old Chang Kee (SGX: 5ML)

Japan Foods and Old Chang Kee behave as if twin, IPO time was also close in years 2009 and 2008 respectively. Both stocks suffered during COVID-19 due to lockdown with less customers come to the food outlets. However, the main issue is even before COVID-19, since year 2013 till now, earnings of both stocks have been dropping, result in bearish share prices with low optimism prices. Therefore, they are lower quality crisis stocks as business is affected (lower profitability for 7 years), hard for the share prices to recover significantly in short to medium terms.

Although operational cashflow have been improving over the past 2 years, this could be due to impact of IFRS-16 (new accounting principle) which categories operational leases (eg. rental of food outlets) as liability (therefore debt has been increasing over the past 2 years), may not be entirely improvement in business cashflow. It is important for an investor review with longer term perspective (over 10 years) and bigger picture (income statement, balance sheet, cashflow statement) with integration with share price performance. When businesses of both stocks have significant breakthrough, the bearish trend in share prices and earnings may be reversed. Until then, they may only be considered for trading with trend-following.

3) Consumer F&B Stocks

– QAF (SGX: Q01)

– Thai Beverage (SGX: Y92)

QAF is famous of bakery brands such as Gardenia and Bonjour breads available in Asia Pacific. The defensive business (eg. breakfast) has doubled during pandemic but share prices are not speculated as high as Sheng Siong, only at mid optimism level but it is a stronger F&B stock relative to peers. QAF may also be considered as dividend stock with consistent dividend payout (about 5% dividend yield). See strategy in later article on how to eat Gardenia bread for free for lifetime (one may upgrade to better free food with improvement in investment).

Thai Beverage is an outstanding F&B giant stock, strong in businesses (eg. beers and spirit drinks in Thailand, Myanmar and regional markets) and low optimism in share prices. The business is not much affected during COVID-19 but share prices dropped to very low optimism due to market fear, which is a higher quality crisis stock. Positioning of Thai Beverage requires alignment with other stocks of Charoen Sirivadhanabhakdi (Top 10 richest person in Thailand), eg. Fraser and Neave – F&N (SGX: F99), Frasers Property (SGX: TQ5), Frasers Centrepoint Trust, FCT (SGX: J69U), Frasers Logistics & Commercial Trust (SGX: BUOU), Frasers Hospitality Trust (SGX: ACV).

4) Mixed Industry F&B Stocks

– Amara Holdings (SGX: A34)

– SATS (SGX: S58)

– Wilmar International (SGX: F34)

Some stocks only have partial F&B businesses, eg. Amara, SATS and Wilmar. Therefore, analysis of these stocks require integration with other sectors with different business segments.

Amara is mainly on hotel related businesses, F&B is only a smaller segment of business (restaurants), businesses are badly affected during COVID-19. SATS has both F&B and airlines gateway businesses, the earnings from F&B has helped the company minimize the negative impact of COVID-19 to airlines sector.

Both Amara and SATS suffer low optimism in share prices but each has its own defense system. Amara has undervalue hotel properties which could still generate cash with fading of COVID-19 but it needs to go through a long winter time until vaccine could be developed for COVID-19. SATS may expand F&B business during the downturn of airlines sector. Therefore, SATS is relatively a better airlines related stock than Singapore Airlines, SIA (SGX: C6L), which has full risk exposure to COVID-19 crisis, even the recent rights and bond issues may not be sufficient, therefore need to reduce the staff size to save cash.

Cash is King for investor, also true for stocks in crisis. SATS has strong sponsor of Temasek with diversification of business in F&B, therefore chances of recovery is higher than the peers in airlines sector. Some companies went bankrupt during global financial crisis mainly due to shortage in cash while making losses, hard to get new loan (high risk of default) with weak sponsor. So, when investing in crisis stock with weaker business fundamental, an investor who wants to take calculated risks, need to consider the cash burning rate of company vs the potential duration of crisis (eg. assuming another 12 months for COVID-19 to last).

Wilmar is a commodity giant stock, mainly in palm oil which products include cooking oil in F&B sector. Subsidiary company of Wilmar, Yihai Kerry Arawana (YKA), is a major producer of cooking oil in China, will be listed in China stock market. The future stock potential of Yihai Kerry Arawana has helped Wilmar to outperform other palm oil stocks, recovering from low to mid optimism level. Palm oil prices have been recovering, combining with positive news of spin-off of Yihai Kerry Arawana, supporting Wilmar share prices. Wilmar is a cyclic giant stock, more suitable to invest during uptrend stock market from lower to mid optimism level. Demand of palm oil would be higher with fading of COVID-19. Possible speculation of IPO (common in China stock market) of Yihai Kerry Arawana may also support the share price of parent stock, Wilmar.

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If one could invest $2000 in QAF stock, would get about $100 dividend with consistent 5% dividend yield (higher if investing during crisis), enough to pay for $2 or 1 loaf of white bread per week (assume eat bread for 50 weeks in 1 year) which have about 14 slices (assuming eating 2 slices per day x 7 days per week), could enjoy free white bread for lifetime if QAF continues the business model this way. An investor may apply this strategy to eat in restaurant (eg. McDonald’s burger) for free for lifetime (if investing in a restaurant stock with consistent dividend or growth in share prices) or enjoy any drink (Coca-Cola – NYSE: KO, Thai Beverage beer, Starbucks coffee – NASDAQ: SBUX, etc), 1 cup per day, free for lifetime. Similarly, a consumer could enjoy free healthcare service (hospital or dental stocks), free handbag or watch (luxury products stocks), free house rental (property stocks but need higher capital), etc.

In fact, most consumers pay for lifetime for the same products (foods & beverages) again and again, contributing to the growth of F&B giant stocks with recurring incomes. When a consumer could reverse the role to an investor (as if a business partner of F&B outlet of interest), a consumer could make profit and enjoy free foods and drinks for life, with condition that it has to be a F&B giant stock, to be certified each year with Dr Tee selection criteria. For investors who are foods or drinks lover, may consider to invest in Top 10 global F&B giant stocks, diversifing investment over 10 different types of low-risk foods and beverages.

F&B giant stocks usually are cash cow with profitable businesses, therefore when share prices are undervalue at low optimism, may become target of acquisition, eg. past Singapore F&B giant stocks of Super Group (SGX: S10) and BreadTalk Group (SGX: CTN). Singapore has less F&B giant stocks but there are some global F&B giant stocks which have strong dominance in certain F&B businesses, able to make money consistently each day for decades.

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

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

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

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

Filed Under: Fundamental Analysis, Macroeconomy, Market Cycle Investing, Market Optimism, Stock Market Tagged: Consumer Stocks, crisis stock, dividend stock, f&b stocks, jardine

11 Singapore Healthcare COVID-19 Stocks (生死关头)

Posted on September 4, 2020 Written by Dr Tee (Ein55)

Between life and money, which is more important? In this article, you will learn from Dr Tee on 11 Singapore Healthcare Giant Stocks which are efficient in making money with life as an economic moat, while some surge in prices during COVID-19 stock crisis.

1) COVID-19 “Crisis as Opportunity” Stocks

Medtecs International Corporation (SGX: 546)

UG Healthcare Corporation (SGX: 41A)

Top Glove Corporation (SGX: BVA)

Riverstone Holdings (SGX: AP4)

2) Medical Services Stocks

Q&M Dental Group (SGX: QC7)

Raffles Medical Group (SGX: BSL)

3) Healthcare Products Stocks

Tianjin Zhong Xin Pharmaceutical Group (SGX: T14)

Haw Par Corporation (SGX: H02)

4) Healthcare REITs

First Reit (SGX: AW9U)

ParkwayLife Reit (SGX: C2PU)

IHH Healthcare (SGX: Q0F)

There are about 37 Healthcare stocks in Singapore, a natural move for medical related businesses to get listed to leverage on capital from stock market for further expansion:

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

From the table sorted below for 37 Singapore Healthcare stocks, only 2/3 are profitable (25 / 37 stocks were making money in businesses last year). Therefore, careful choices of giant healthcare stocks are critical, not just buying any healthcare stock with rising in share prices which may not be sustainable in longer term.

There are 1/3 stocks (13 / 37) having Price-to-Book ratio ($ / NAV = PB) < 1 with discount over asset but only 2 stocks (First Reit and Haw Par) have high quality asset related to cash or properties which will be discussed further. Buy undervalue stocks require patience, buying low may not able to Sell High in future if there is no alignment with one’s unique personality and other consideration of investment.

No	Ticker	PB = Price /NAV	ROE (%)
1	Accrelist Ltd (SGX: QZG)	0.31	0.0
2	Alliance Healthcare (SGX: MIJ)	1.89	12.6
3	Aoxin Q & M Dental (SGX: 1D4)	1.17	-0.1
4	Asia Vets Holdings (SGX: 5RE)	0.57	3.9
5	AsiaMedic (SGX: 505)	2.53	-0.1
6	Asian Healthcare Specialists (SGX: 1J3)	2.51	12.3
7	Beverly JCG (SGX: VFP)	6.67	-0.7
8	Biolidics (SGX: 8YY)	8.33	-0.4
9	Cordlife (SGX: P8A)	0.74	5.0
10	First Reit (SGX: AW9U)	0.45	5.7
11	Haw Par Corporation (SGX: H02)	0.78	5.8
12	HC Surgical Specialists (SGX: 1B1)	2.78	21.5
13	Healthway Medical Corporation (SGX: 5NG)	0.82	0.0
14	Hyphens Pharma International (SGX: 1J5)	2.72	14.8
15	IHH Healthcare (SGX: Q0F)	2.15	1.9
16	ISEC Healthcare (SGX: 40T)	2.60	11.7
17	IX Biopharma (SGX: 42C)	16.88	-1.0
18	Lonza Group (SGX: O6Z)	0.63	9.9
19	Medinex (SGX: OTX)	2.02	25.5
20	Medtecs International Corporation (SGX: 546)	5.33	1.8
21	OUE Lippo Healthcare (SGX: 5WA)	0.64	1.3
22	ParkwayLife Reit (SGX: C2PU)	1.98	10.4
23	Pharmesis International (SGX: BFK)	0.53	-0.3
24	Q&M Dental Group (SGX: QC7)	3.20	14.7
25	QT Vascular (SGX: 5I0)	4.78	-2.5
26	Raffles Medical Group (SGX: BSL)	1.69	7.2
27	RHT Health Trust (SGX: RF1U)	0.92	-0.1
28	Riverstone Holdings (SGX: AP4)	9.39	16.52
29	SingMedical Group (SGX: 5OT)	0.82	9.4
30	Suntar Eco-City (SGX: BKZ)	2.49	0.0
31	TalkMed (SGX: 5G3)	6.48	43.0
32	Thomson Medical Group (SGX: A50)	2.87	-0.2
33	Tianjin Zhong Xin Pharmaceutical Group (SGX: T14)	0.83	11.6
34	Top Glove Corporation (SGX: BVA)	20.89	15.3
35	Trendlines Group (SGX: 42T)	0.53	0.0
36	UG Healthcare Corporation (SGX: 41A)	6.75	25.7
37	Vicplas International (SGX: 569)	4.36	7.0

Interestingly, none of the 37 Singapore Healthcare stocks are 30 STI component stocks but a few could be related (eg. Haw Par is related to UOB Bank and UOL):

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

For healthcare business with strong economic moat, eg. having special knowhow or patents in medical solutions, limited suppliers of critical medical appliances, etc, would naturally be the preferred choice for stock investing. Most people would choice life over money (eg. during COVID-19 health crisis, 生死关头) but if one could integrate both life and money through giant stocks, the probability of success in investing would be high.

Here, let’s focus on 11 Singapore healthcare giant stocks over 4 main categories:

1) COVID-19 “Crisis as Opportunity” Stocks

There are 4 “lucky” stocks helped by COVID-19 crisis as they are crucial medical appliance suppliers, sales and profits surge during pandemic:

– Medtecs International Corporation (SGX: 546) – personal protective apparel

– UG Healthcare Corporation (SGX: 41A) – gloves

– Top Glove Corporation (SGX: BVA) – gloves

– Riverstone Holdings (SGX: AP4) – gloves

Their share prices have been speculated to over 5-10 times during COVID-19 stock “crisis” (which is an opportunity). This is a form of positive speculation (strong business fundamental with share price speculated to very high optimism level), especially for Top Glove and Riverstone which have strong business performances even before COVID-19 crisis. However, for Medtecs and UG Healthcare, both only have moderate good businesses before COVID-19 crisis, the sudden high growth in business would not be sustainable when fear of COVID-19 has subsided in 6-12 months. Stock such as Biolidics (SGX: 8YY) has even weaker business fundamental (losses in the past) but share prices surged due to speculation, traders may suffer huge loss if investing in long term for stock which may not have sustainable business beyond COVID-19.

Therefore, these 4 COVID-19 healthcare stocks are more suitable for shorter term trading as optimism level has been speculated to very high. Trend-following trading strategy may be applied to “Buy High Sell Higher” but when price trend is reversed, a trader would need to exit, even if it is a loss due to sudden correction. If not, do not speculate, even these companies make a lot of money during pandemic. Stock market is forward looking, their strong business fundamental are already considered in rising prices. One day, when they could not perform as strong as now with lower demand (despite still profitable), the share prices would be corrected significantly, especially for Medtecs and UG Healthcare.

2) Medical Services Stocks

These are the 2 “unlucky” stocks which save lives or reduce pains but due to nature of businesses which require interaction with patients (how to cure without seeing the patients), business performances are affected, including share prices at lower optimism levels.

– Raffles Medical Group (SGX: BSL) – Hospitals

– Q&M Dental Group (SGX: QC7) – Dental Clinics

Both stocks have been growing the business through expansion locally and abroad. Raffles Medical has extended businesses to China cities (eg. Shanghai, Chongqing, etc), even before COVID-19 crisis, the share prices have been corrected due to ambitious expansion which would take a few years to breakeven in investment for new hospitals. During pandemic, Raffles Medical loses overseas patients due to international travelling restrictions. Similarly, Q&M Dental has expanded to be the largest dental service provider in Singapore, business has been affected during COVID-19 due to close interaction required between dentists and patients.

However, COVID-19 could only slowdown, not stopping patients from seeking medical help (saving life or tooth pains), therefore when fear of COVID-19 has subsided, both giant stocks would perform normally again, accumulation of demand (non-urgent cases, eg. medical or dental check-up) would surge and balance out in longer term business.

Since both giant stocks are at lower optimism level, they are more suitable for longer term cyclic investors with “Buy Low Sell High” strategy while collecting moderate dividends during the recovery phase (as if fixed deposit investing in a medical bank).

3) Healthcare Products Stocks

These 2 stocks have healthcare products which have no strong correlation to COVID-19. So, they could still perform normally in businesses during pandemic:

– Tianjin Zhong Xin Pharmaceutical Group (SGX: T14) – Traditional Chinese Medicine (TCM)

– Haw Par Corporation (SGX: H02) – Tiger Balm and Others

Tianjin Zhong Xin is a highly cyclic growth stock (dual listing in both Singapore Stock Exchange – T14 and Shanghai Stock Exchange – 600329) with very strong business fundamental. It is more suitable for longer term cyclic investor, optimism is just recovering from low level. Share prices in Singapore and Shanghai stock exchanges are aligned in general direction but sometimes one market could perform better than another (eg. China stock market is relatively more bullish than Singapore in current market condition). Tianjin Zhong Xin is an all-rounded stock, also paying high dividend yield of 5-6% (depending on the share prices, higher if one could investing during crisis). It is not suitable for shorter term trader or investor with weak holding power, buy low may get lower during bearish stock market, despite business fundamental is strong.

Haw Par is not a pure healthcare stock as majority of revenue and income are actually on investment of 2 other stocks of Mr Wee Cho Yeow (Top 10 richest person in Singapore, UOB Chairman) stocks: UOB Bank and UOL. Therefore, investing in Haw Par is an indirect investment of UOB and UOL stocks. With the current lower optimism prices of Haw Par stock with ownership of equivalent values of UOB and UOL shares, the main “business” of Tiger Balm and other products are virtually “free” for undervalue stock investors. However, patience is required for undervalue investing (owning high quality asset of cash from UOB Bank and properties from UOL). Haw Par has strong support of Singapore Giant stocks, UOB and UOL, all under Mr Wee Cho Yeow. If Mr Wee continues to be the Top 10 richest person in Singapore, implying these 3 giant stocks are doing well in both businesses and stock market.

4) Healthcare REITs

These 3 stocks are special integration of healthcare with property sectors as Healthcare REITs:

– First Reit (SGX: AW9U) – Healthcare REIT with hospitals mainly in Indonesia

– ParkwayLife Reit (SGX: C2PU) – Healthcare REIT with hospitals mainly in Singapore

– IHH Healthcare (SGX: Q0F) – Sponsor of ParkwayLife REIT

Both healthcare and property are promising sectors in general for stock investing, therefore healthcare REITs (rental collection from hospitals as tenants) are defensive in nature as they could pay consistent dividend with long term tenant agreement (eg. 15 years), slow growth but steady. Therefore, they may be considered for longer term investing, crisis usually is a good opportunity to own healthcare REITs to generate consistent passive incomes.

However, stock has price component which may give surprises to investors, for example First REIT share prices have been corrected to less than 1/3 of peak prices over the past few years due to various concerns, mainly due to poor sponsor and customers (who owns Siloam Hospitals), Lippo Karawaci group which has cashflow issue due to ambitious property expansion in Indonesia.

This concern of sponsor has resulted instability to other Lippo Group related stocks, eg. OUE Group. Second sponsor of First Reit is OUE Lippo Healthcare, also not a giant stock, could not help much to restore the confidence of investors, worrying potential rights issues (nightmare for dividend investors, paying passive incomes, instead of collecting dividends). Despite First REIT is a giant REIT (even as of today) but this is a supported giant stock, mainly dependent on sponsor, main customer and major shareholder (multiple roles in 1). The immediate risk is cut of dividend payment (rental relief during COVID1-9 requested by sponsor) and also possible future rental payment for new agreements in Rupiah (about 25% of portfolio) in Year 2021, which could reduce overall dividend yield by 1/8 (Rupiah has depreciated more than 50% against SGD over the past 10 years in earlier agreement). Based on current crisis price of $0.44/share (lower than IPO price), dividend yield is nearly 20% but actual payment could be only 10% due to rental relief. Before a stock investor may enjoy 20% dividend yield, First Reit has dropped more than 20% share prices with capital loss in just a few months.

So, First REIT is an indirect crisis stock, not due to the Reit itself (a giant stock) but more dependent on performance of weak sponsor. Current Price-to-Book is less than 0.5, rare for a Reit, even if sponsor goes bankcrupt, First Reit investor could still recover the share prices with selling of Reit properties. The main concern is the REIT likely could operate normally (especially Siloam Hospitals and Lippo Group would perform better after fading of COVID-19 crisis) but short term to midterm bearish share prices could affect the confidence of investors who collect high dividend yield but also suffer huge capital losses.

Parkwaylife Reit is an opposite of First Reit, having a strong sponsor, IHH Healthcare (also a giant stock), therefore enjoying the stability with gradual growth under triple net lease. Parkwaylife owns local properties which rent out to customer (Parkway Pantai) who owns profitable hospitals, eg. Mount Elizabeth Hospital, Gleneagles Hospital, Parkway East Hospital, etc. When sponsor and customer and major shareholder (3 roles in 1) are strong, it provides stability to long term rental payment and therefore, dividend payment to stock investor of Parkwaylife Reit.

Despite Parkwaylife is suitable for longer term or event lifetime investing (if there is no major change in sponsor financial condition), it is crucial to buy below fair price, ideally during stock crisis such as COVID-19. This would help to maximize the dividend yield. So, an investor may apply “Buy Low and Hold” strategy. Value is what you get and Price is what you pay. Integration of value and price are crucial for investing success.

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Choice of 11 healthcare giant stocks have to align with one’s unique personality, eg. for shorter term trading (eg. momentum or swing trading) or longer term investing (cyclic investing, undervalue investing or growth investing). Readers should not just “copy and paste” any stock (What to Buy, When to Buy/Sell) as successful action taking requires deeper consideration (LOFTP strategies – Level / Optimism / Fundamental / Technical / Personal Analysis) which you could learn further from Dr Tee Free 4-hr Webinar.

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

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

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

Filed Under: Fundamental Analysis, Market Cycle Investing, Stock Market Tagged: crisis stock, glove stock, Healthcare Stocks

Dr Tee Family 100 Years Investing Strategy (百年树人)

Posted on August 26, 2020 Written by Dr Tee (Ein55)

Parents are our best role models for life including investing. Dr Tee will share in this article, both valuable life principles learned from his father (who passed away recently) and also a lifetime investing strategy with 100% success rate practiced by his parents, applicable in both stock and property markets.

Bonus is Dr Tee Grandparents Crisis Investing Strategy for reader who could patiently read the entire article. This investing strategy is proven over 3 generations of Dr Tee family over the past 100 years.

Many people hope to learn a “sure-win” investing strategy. For most practical considerations, there is a certain probability of success for each stock trading or investing strategy but rarely could achieve 100% success rate.

Dr Tee parents have a remarkable achievement to have 100% winning record in both stock and property investment consistently over the past few decades. This lifetime investing strategy may not be suitable for everyone, requiring alignment of similar personality as Dr Tee parents. Let’s learn the details here.

Some people may change mind easily, even for a good investment (stock or property), if the market prices fall down significantly, some may end up sell low with losses under tremendous fear. Alternatively, some people could hold an investment for long term, even over a lifetime but due to declining businesses, suffering permanent losses over time.

Dr Tee parents’ “Sure-Win” Strategy is simple but only if one could align with similar personality (work hard + take right investment action). Here are the 3 main steps:

1) What to Invest

For stock investment, Dr Tee parents prefer giant stocks from country stock index component, especially those with strong business fundamental stocks with good track record (both capital gains and dividend payout) over the past decades.

Property (house or land with high quality asset) by default is a giant, therefore also a key option for their investment. Their main source of investment knowledge was through reading local newspaper investment articles and discussion with friends having similar interest.

This “100% winning” strategy requires support of a portfolio of giant stocks (reviewing giant stocks status yearly for possible change in business fundamental). Many giant stocks could be found in a country stock index. For example, these are 30 STI component stocks, could be a possible starting point for lifetime investing for an investor in Singapore:

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

For different country, an investor may start with local stock indices with component stocks, eg. 30 KLCI stocks, 50 HSI stocks, 30 Dow Jones stocks, S&P 500 stocks, 50 SSEC stocks, Top 10 largest NASDAQ stocks, etc. Subsequently, analyze business fundamental and other critical criteria for giant stocks. Here is a list of 30 Malaysia Bursa KLCI Index component stocks which may be considered for Malaysia stock investors:

CIMB (Bursa: 1023) CIMB GROUP HOLDINGS BERHAD, DIALOG (Bursa: 7277) DIALOG GROUP BERHAD, DIGI (Bursa: 6947) DIGI.COM BERHAD, GENM (Bursa: 4715) GENTING MALAYSIA BERHAD, GENTING (Bursa: 3182) GENTING BERHAD, HAPSENG (Bursa: 3034) HAP SENG CONSOLIDATED BERHAD, HARTA (Bursa: 5168) HARTALEGA HOLDINGS BERHAD, HLBANK (Bursa: 5819) HONG LEONG BANK BERHAD, HLFG (Bursa: 1082) HONG LEONG FINANCIAL GROUP BERHAD, IHH (Bursa: 5225) IHH HEALTHCARE BERHAD, IOICORP (1961) IOI CORPORATION BERHAD, KLCC (Bursa: 5235SS) KLCC PROPERTY HOLDINGS BERHAD, KLK (Bursa: 2445) KUALA LUMPUR KEPONG BERHAD, MAXIS (Bursa: 6012) MAXIS BERHAD, MAYBANK (Bursa: 1155) MALAYAN BANKING BERHAD, MISC (Bursa: 3816) MISC BERHAD, NESTLE (Bursa: 4707) NESTLE MALAYSIA BERHAD, PBBANK (Bursa: 1295) PUBLIC BANK BERHAD, PCHEM (Bursa: 5183) PETRONAS CHEMICALS GROUP BERHAD, PETDAG (Bursa: 5681) PETRONAS DAGANGAN BHD, PETGAS (Bursa: 6033) PETRONAS GAS BERHAD, PMETAL (Bursa: 8869) PRESS METAL ALUMINIUM HOLDINGS BERHAD, PPB (Bursa: 4065) PPB GROUP BERHAD, RHBBANK (Bursa: 1066) RHB BANK BERHAD, SIME (Bursa: 4197) SIME DARBY BERHAD, SIMEPLT (Bursa: 5285) SIME DARBY PLANTATION BERHAD, TENAGA (Bursa: 5347) TENAGA NASIONAL BHD, TM (Bursa: 4863) TELEKOM MALAYSIA BERHAD, TOPGLOV (Bursa: 7113) TOP GLOVE CORPORATION BHD.

2) When to Invest

Dr Tee parents only have middle-class income from active jobs, which salary in cash would depreciate over time. When they got married about 60 years ago in Muar (a small town in Johor of Malaysia), both were having little starting capital. Since young, over 4 decades of working hard, they would gradually convert the cash saving into another form of “fixed deposit” through purchases of stocks (both private and public listed companies) and properties (houses and plantations), which could generate passive incomes (eg. stock dividends and property rentals, much higher than bank interest rates) and consistent growth with enormous capital gains.

Besides regular conversion of cash into saving (spending very little on themselves, saving every dollar possible for family with 4 children), later into stocks or properties, Dr Tee parents would invest more during financial crisis, especially when they observed the stock index (eg. KLCI Index as they live in Malaysia) was at relatively low level or when there was special sales of house or land below the market prices.

Dr Tee parents worked very hard (like a habit) for whole life, even after they have retired, could not rest well for 1 day, must find something to do each day in kampung. To them, this is their ideal lifestyle to keep busy (but not stressful) each day. Dr Tee wished they could be more relaxed but looking back now, this could be blessing in disguise as some retirees who relaxed too much, may age even faster.

3) When to Sell

Most of the time, Dr Tee parents would not sell stocks or properties, keeping them long term over lifetime, collecting both passive incomes (which can be used for family expenses or reinvest again) and capital gains. Sometimes when stock index or investment is at high optimism level, they would sell but most of the time, they would simply ignore them, keeping as “fixed deposit” which could compound each year for decades through stocks and properties. Apply this simple method of investing (buy stocks as if property for many generations to stay) on giant stocks, naturally the success rate is 100% over the decades, overcoming all the stock “crisis” eventually.

In a certain period of time for about 10 years, due to high cost to support 4 children (Dr Tee and 3 siblings) university education in US (ringgit was weak vs USD), they decided to sell significant private shares of palm oil plantation (with many times of capital gains). This was rare for them to sell properties or stocks to convert back into cash but children (especially education) are their most important goal in life. They strongly believe that knowledge is the best investment to generate more wealth (eg. with a better job) to support a better future life.

Dr Tee parents were working very hard, saving almost every dollar they could during this period, spending very little on themselves, saving and then investing mainly to provide additional financial shield for children. History seems to repeat itself, it is turn for Dr Tee to do similar planning for family with children. However, Dr Tee could still have reasonable spending (disagree with parents who almost did not spent much on themselves) as children should also work hard to enjoy fruits of life with own creation of wealth. This way, the “shield” contributed by each generation could be compounded to protect against a major future crisis. If not, wealth could not last through 3 generations with spending alone.

Financial literacy could be the best gift for any young generation. Dr Tee is amazed that a few Ein55 graduates are as young as 14 years old (learning together with parents), could understand and apply value investing principles. With compounding return of many decades to come, knowing what giant stocks to invest, these young learners main goals would be to work hard and save more for capital to start the first investment of life one day.

This “Buy Low and Hold” strategy for long term or even lifetime suit Dr Tee parents personalities. Some people may not have patience to hold or wish to sell earlier for capital gains to enjoy life, therefore missing the natural compounding growth of giant stock or property, hedging against inflation. To maximize the compounding over lifetime, one has to start investment younger. Assuming 50 years of lifetime investing (eg. 30 to 80 years old) with average of 10% growth rate, capital gains could be as high as 1.1^50 = 117 times. Even with a minimal 5% growth rate over 20 years (eg. 40 to 60 years old when retiring), capital gains could be 1.05^20 = 2.65 times.

So, this “sure-win” strategy could be very simple (tested over 100 years with 3 generations) but could be very tough as some people may not able to make sacrifice in life (eg. not willing to invest in oneself to enhance knowledge in own profession or investment), simply wait for gift to drop from heaven (most of the time are speculative news, ending up with big losses). So, heaven is fair, usually reward those who work hard and follow the right path of investing, even if one forgets about making money one day (eg. Buy Stocks / Properties and Forget), hidden fortune would appear naturally one day when needed.

So, the secrets of making money in investment is not to think of making money, just do the right proven actions, eg: investing over a portfolio of 10-20 giant stocks, buying more during financial crisis, holding long term, then the compounded return would come naturally one day.

My Father Story

Similar to investment, life also has its own cycle. My father (Mr Tee Ching Sin, 郑清森) passed away peacefully recently due to natural aging. Over the past 10 years, this has been my biggest worry to receive unexpected call from parents in Malaysia which could be potential sad news. The day still comes with expected call when I was halfway conducting a Zoom coaching class, need to hold my tears to complete the program as this is a commitment, a value shared by my father.

When I observed my parents have been getting older each year, I started to slow down the pace of my work or interest in investment education (used to work 365 days a year, 7 days a week, working nearly all the time), visiting them more often in Malaysia over the past few years. Each time when I said farewell to them when returning to Singapore, I was thinking could this be the last time we meet in life.

More importantly, my father has taught me many positive values in life (not just making money with investment), setting an excellent example with his whole life. Despite he has left the world, sometimes I could still “hear” his voices which is embedded in the subconscious mind (similar to Artificial Intelligence, AI). This is how a “spirit” or family value could be transmitted between the generations.

Similarly, I often use “Dr Tee” as third person narration when teaching investment knowledge to students or writing articles (eg. Dr Tee aims for “giant stocks”, investing when giant is falling during crisis, etc), hopefully this could help to form positive habits of investment in a faster way with AI into their minds when they hear “Dr Tee voices” in their subconscious mind one day.

This article is a special tribute to my father, a short summary of his successful life, not only with “sure-win” investing strategy and hardwork over lifetime, but also for his selflessness to think of family first. It is a regret that there is travelling restriction to Malaysia during pandemic (requires 14 days quarantine), together with 2 other siblings living outside Malaysia, we join the online ceremony to pay the last respect to our father.

My father dedicated his whole life for family but reward little to himself. During his funeral ceremony today, I have shared my feeling remotely in Chinese (you may use google translator if needed) to him:

爸爸，您是我们心目中，敬重的父亲。

您的3个孩子，姐姐，二哥和我，身在海外，因为疫情的情况下，国家限制旅游，不能回来尽孝，我们庆幸过去与您保持密切联系，亲情永在，不限一时。

爸，身为您的儿女与亲友们，舍不得与您告别。

纵然您已离开尘世，浩瀚宇宙中遨游，您不朽的精神，将永远留在我们心里。

爸爸，多谢您一生无私的付出，栽培了我们四个孩子，海外留学，开阔视野。教育是您留给我们最珍贵的资产，我们也继承了您的精神与理念，与后代分享。

年轻时，为了给家庭增强经济后盾，您毅然放下教鞭，从事繁重的经商活动，过度劳累，透支身心。晚年时，纵然行动不便，您意志顽强，坚持独立活动，心灵手巧，甚至到人生最后一刻。

言传不如身教，您是我们的人生楷模。我们从中观察，学习宽容待人，刻苦节俭，不畏失败，活出自我。孩儿东渊记得，曾经问您为何不多花一分钱在自己身上，却慷慨帮助孩子们与他人。您说人生已无遗憾，家人安康就是最大的满足。

爸爸，请您放心，我们会照顾好妈妈。您的一生是成功的，无憾无悔，不枉此生。我们衷心感激您为家庭的无偿付出。

爸爸，愿您一路走好，我们爱您，永远怀念您。

Suddenly, I remember this old song by Taiwanese singer (高凌風 – 牽不住你的手, “Could Not Hold Your Hands”), now finally I could understand the meaning as he wrote this song when losing his father many years ago: https://www.youtube.com/watch?v=xQmQllux1bo

I was hoping to hold my father hands for the last time. I tried to appeal to Malaysia High Commission in Singapore by queuing up before 8am (hope to enter Malaysia without quarantine if pass COVID test in 1-2 days) but standard answer was to fill in online form (which has no option of funeral, mainly ask to sign to agree to pay for 14 days quarantine in hotel after entry to Malaysia with on-site test) and wait for reply which response time is not guaranteed. I sadly called ICA of Singapore for help (hoping there is some special agreement between 2 countries on travelling for special case of funeral, not just on businesses), standard answer is entry to Malaysia depends on Malaysia policy. So, the recent bi-lateral “Reciprocal Green Lane” may not have considered hundreds of thousands of citizens with close elderly family members in both countries (Singapore and Malaysia were 1 country before, hard to separate families apart with a political border). COVID-19 crisis is not only a health and financial crisis, may also be a family crisis.

I am relieved that online technology (Whatsapp Group Video) has helped to lessen this potential biggest regret in my life. My siblings and I who are abroad Malaysia could follow entire funeral ceremony remotely in an interactive way, praying and talking to my father who rest peacefully, knowing all his children would get united again regardless of obstacles. Except I could not hold my father hands anymore.

I remember a unique subject studied in university time in US several decades ago: “On Death & Dying”. The funeral services are not just for the deceased, also for those who are alive to heal their wounds in heart. It is a way to accept and adjust to new norm in life without the loved one (switching connection from physical to spiritual).

Looking back, I believe my father may have special plan in choice of timing to depart us (knowing that I would try different ways to get there to see him for the last time). Perhaps this was his intention not to trouble 3 of children abroad, not to take any risk in travelling. If so, I may need to thank the authority with hard rules for helping my father to achieve his final wish to help family again.

Father, please Rest in Peace. The best way to repay your kindness in lifelong support is to maximize values of my own life which I promise won’t disappoint you!

Dr Tee’s Grandparents Story

In fact, Dr Tee parents also learned from their parents who have similar personality of working hard, despite low income but knowing how to invest to improve on quality of life. Dr Tee grandparents were very poor (not having any formal education, could only do lower income work) when first came from China to Malaysia nearly 100 years ago.

After many years of working and saving little by little, Dr Tee grandparents grabbed the rare opportunity of Japanese occupation time (1940s) to use life saving in “banana money” to buy a small piece of land with rubber plantations at very low price (a form of crisis investing during World War II), holding for 80 years till today with about 2000 times capital gains.

Many people lose money in saving cash when Japanese “banana money” became zero value overnight but Dr Tee grandparents converted the cash (paper value) into land (high quality asset), therefore reversing the family poverty destiny, converting crisis into opportunity. With the first foundation (plantation could generate incomes), they continue to improve family financial condition with more purchases of land with hard earned savings (but similar crisis of low land price was only once a lifetime).

Dr Tee grandparents success (hardwork with special help of crisis investing in property) has changed the future of Tee family (from poor to middle class). This inspired Dr Tee parents to follow similar track of working hard and invest when young (but extending from properties to stocks). Crisis investing of high quality assets at low price is a high probability of winning if one has holding power.

Similarly, the success of last 2 generations has motivated Dr Tee to study hard (aiming for highest educational level of PhD), then work hard to achieve the career goals (climbing ladder till VP in corporate world, then CEO of own company after becoming financial free) and extending investment from long term investing to short term trading, developing an universal way of “Buy Low Sell High” with Ein55 styles of investing for stocks, properties, bonds, commodities and forex.

Dr Tee owes the current success (both personal life and investment) to contribution of 3 generations of Tee family over the past 100 years. The same principles of life (work hard with simple life) are not just passed to 4th generation but also shared with over 3000 Dr Tee graduates and over 300,000 public audience over the past 10 years.

Even if you not Tee family member, could you duplicate this simple secret of success in life with “Sure-Win” strategy? Answer is yes but not everyone could do it. A person must be willing to have a determination of working hard (or study hard in early age) for life, spending little on oneself, converting saving into higher growth investment with a portfolio of giant stocks or properties, investing more during financial crisis time, then holding for high growth over lifetime.

If you could read every word of this article until this here, you have the potential to be the first generation of your family to inspire future generations for another 100 years (百年树人)!

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

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

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

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

Filed Under: Fundamental Analysis, Market Cycle Investing, Personal Analysis, Stock Market Tagged: Blue Chip Stocks, crisis stock investing, lifetime investing

Temasek Giant Stocks Corporate Actions (淡马锡股)

Posted on August 18, 2020 Written by Dr Tee (Ein55)

Having a strong sponsor or major shareholder is crucial for stock investment, especially during period of uncertainty such as COVID-19 stock crisis. In this article, Dr Tee will review these 7 Temasek stocks with 4 major corporate actions:

1) Keppel Corp (SGX: BN4)

– Abandon of Partial Acquisition by Temasek

2) Sembcorp Industries (SGX: U96) & Sembcorp Marine (SGX: S51)

– Successful Demerger under Temasek

3) Singapore Airlines, SIA (SGX: C6L)

– Impact of Rights & Bonds Issues for Survival

4) CapitaLand Mall Trust (SGX: C38U) & CapitaLand Commercial Trust (SGX: C61U)

– Merger of CapitaLand (SGX: C31) Giant REITs with coming change in 30 STI component stock with Keppel DC REIT (SGX: AJBU)

Temasek helps to manage national wealth of Singapore, having over 40 stocks globally with about S$300B investment (淡马锡股). There are at least 26 Temasek / GLC stocks in Singapore, controlling shareholder with 15% or more ownership directly or indirectly:

Singtel (SGX: Z74), DBS Bank (SGX: D05), ST Engineering (SGX: S63), Singapore Airlines (SGX: C6L), SIA Engineering (SGX: S59), Singapore Exchange (SGX: S68), SATS (SGX: S58), Sembcorp Industries (SGX: U96), Sembcorp Marine (SGX: S51), Olam (SGX: O32), CapitaLand (SGX: C31), CapitaLand Mall Trust (SGX: C38U), CapitaLand Commercial Trust (SGX: C61U), Ascendas Reit (SGX: A17U), Ascott Hospitality Trust (SGX: HMN), Ascendas Hospitality Trust (SGX: Q1P), CapitaLand Retail China Trust (SGX: AU8U), Ascendas-iTrust (SGX: CY6U), Keppel Corp (SGX: BN4), Keppel Reit (SGX: K71U), Keppel DC Reit (SGX: AJBU), Keppel Infrastructure Trust (SGX: A7RU), Mapletree Logistics Trust (SGX: M44U), Mapletree Commercial Trust (SGX: N2IU), Mapletree Industrial Trust (SGX: ME8U), Mapletree NAC Trust (SGX: RW0U).

Temasek stocks portfolio also affect about 15% of STI index stocks, which has strong impact on Singapore stock market. Here are 30 STI component stocks:
DBS Bank (SGX: D05), Singtel (SGX: Z74), OCBC Bank (SGX: O39), UOB Bank (SGX: U11), Wilmar International (SGX: F34), Jardine Matheson Holdings JMH (SGX: J36), Jardine Strategic Holdings JSH (SGX: J37), Thai Beverage (SGX: Y92), CapitaLand (SGX: C31), Ascendas Reit (SGX: A17U), Singapore Airlines (SGX: C6L), ST Engineering (SGX: S63), Keppel Corp (SGX: BN4), Singapore Exchange (SGX: S68), HongkongLand (SGX: H78), Genting Singapore (SGX: G13), Mapletree Logistics Trust (SGX: M44U), Jardine Cycle & Carriage (SGX: C07), Mapletree Industrial Trust (SGX: ME8U), City Development (SGX: C09), CapitaLand Mall Trust (SGX: C38U), CapitaLand Commercial Trust (SGX: C61U), Mapletree Commercial Trust (SGX: N2IU), Dairy Farm International (SGX: D01), UOL (SGX: U14), Venture Corporation (SGX: V03), YZJ Shipbldg SGD (SGX: BS6), Sembcorp Industries (SGX: U96), SATS (SGX: S58), ComfortDelGro (SGX: C52).

At the same time, over the past 1 year, there are 4 major corporate actions in these Temasek stocks which worth review here.

1) Keppel Corp (SGX: BN4)

– Abandon of Partial Acquisition by Temasek

The partial acquisition offer by Temasek (increase ownership of Keppel Corp to 51% at price of $7.35/share) was initiated before COVID-19 stock crisis. Under this unprecedented health crisis, global stock market suffers 30-50% correction. Therefore, it does not make sense for Temasek to acquire Keppel Corp at premium price before COVID-19 crisis.

Keppel Corp was making loss in Q2/2020, providing an option for Temasek to withdraw the acquisition as cash or capital may be more critical for other Temasek stocks during this period of uncertainty. Temasek could also use the money for other better investment, eg. recently increase stake in BlackRock (NYSE: BLK), a giant fund stock with $4.8B which is clearly stronger than Keppel Corp.

Despite it may be a sound decision for Temasek but other Keppel Corp shareholders could be disappointed with share prices falling below critical $5/share support, nearly last 10 years low. Keppel Corp is mainly supported by property segment of business as Oil & Gas segment has been making losses due to low optimism oil prices.

Keppel Corp stock investor may need to align decision making (sell or hold) with own personality. Current share price is low optimism, it would be “Sell Low”. The situation is different from SIA which is also at low optimism share prices but business is making loss. Keppel Corp still has strong property business while oil & gas has strong potential to recover with rising oil prices (higher demand with fading of COVID-19 threat). It is also an option to copy Temasek action to “Change Horse” (Sell weaker Stock A, Buy stronger Stock B), eg. transferring the capital to invest in stronger giant stocks such as BlackRock. Afterall, not all could be a patient long term investor for Keppel Corp to regain giant stock title as 10 years ago during bullish Oil & Gas sector.

Although with controlling ownership (over 51% shares), it may be easier to implement potential plan for merging of Keppel O&M with Sembcorp Marine but if outcomes are beneficial to both stocks, a major shareholding (21% of Keppel Corp) may be sufficient to initiate this potential corporate action in future.

2) Sembcorp Industries (SGX: U96) & Sembcorp Marine (SGX: S51)

– Successful Demerger under Temasek

With abstain of voting by Sembcorp Industries and Temasek, the demerger during EGM is still successful, partly because there is no strong second major shareholder (less than 1% shareholding), especially for Sembcorp Marine.

Fundamentally, parent company Sembcorp Industries (with more defensive utilities and growing land development businesses) is much stronger than subsidiary Sembcorp Marine (declining Oil & Gas over the past 5 years) but 1/3 overlapping in accounting (revenue) has dragged down the share prices of Sembcorp Industries which is tied with the same boat under Oil & Gas crisis.

Therefore, after demerger, Sembcorp Industries share prices generally move higher while Sembcorp Marine is still at relative low price position. In medium term, Sembcorp Industries would become a “new company” without 1/3 negative Oil & Gas business. In longer term, cyclic Oil & Gas sector could help Sembcorp Marine investors to have higher upside but patience is required. In general, Sembcorp Industries and Sembcorp Marine are 2 very different type of stocks, differences in share prices would be clearer in future.

Again, Sembcorp stocks investors need to make decision (Buy, Hold, Sell, Wait, Shorting), aligning with own unique personality. The world of stock market is large, over 1600 global giant stocks, there may be no need to “fall in love” with a stock for life.

3) Singapore Airlines, SIA (SGX: C6L)

– Impact of Rights & Bonds Issues for Survival

Airlines sectors has been in very critical condition, some airlines (without strong sponsor) even go bankrupt as passengers drop over 90% compare with before COVID-19, business could sustain more than 6 months. Vaccine development may take another 6-12 months before COVID-19 crisis could be over.

Impact on Singapore Airlines could be more severe during pandemic as it does not have domestic flights (Singapore is too small), therefore the Rights and Bonds issues came in right time to ensure the company could survive through the most critical 12 months period, before Singapore Airlines could fly again proudly.

However, even after the corporate action, SIA share prices continue to decline, about half price since the beginning of COVID-19, about 1/3 of peak prices (after adjustment of rights issues). In fact, Singapore Airlines business fundamental has been declining gradually over the past decade, not just during pandemic (sudden dip). This is due to competitive airlines sector which need to provide good services (well known for SIA but at the price of higher cost) at lower price, therefore earnings and profit margin would be affected.

A stock investor needs to carefully select the right industry or sector for investment. During pandemic, healthcare and technology (eg. online / software solution) stocks would have higher chances to recover than airlines stocks. “Buy Low” is reasonable with condition a stock business fundamental is not much affected. It would be a rare opportunity if business of a stock is growing but share prices fall due to fear driven sales during global financial crisis.

4) CapitaLand Mall Trust, CMT (SGX: C38U) & CapitaLand Commercial Trust, CCT (SGX: C61U)

– Merger of CapitaLand (SGX: C31) Giant REITs with coming change in 30 STI component stock with Keppel DC REIT (SGX: AJBU)

CapitaLand is under Temasek portfolio, the 2 giant REITs, CMT and CCT will be merged by end of 2020 to become the third largest REIT in Asia (largest Asian REIT is Link Reit, HKEX: 823). A giant stock may not need to be large in size, internal business strength with strong economic moat is even more crucial.

Merging and demerging are neutral corporate actions, impact depends on the long term plans of major shareholders. Both CMT and CCT are defensive REITs which could generate steady passive incomes (about 5-6% dividend yield, depending on the share prices). However, the growth is slow (but steady), therefore an investor may position as a defender while diversifying capital over a portfolio of other giant stocks including mid-fielders (eg. growth stocks) and strikers (eg. cyclic stocks or momentum stocks).

When CMT and CCT are merged, would form a new stock, CICT with only 1 stock. Therefore, 30 STI index component would invite the next reserve stock, Keppel DC Reit (SGX: AJBU) which is also a REIT but much stronger growth. The best time to buy a growth stock is usually during global stock crisis (eg. COVID-19 pandemic) with great fear in the market but business continues to make money each month.

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A smart investor may carefully design a portfolio of global giant stocks (defenders, mid-fielders, strikers) while an experienced trader may take action following the trend with S.E.T. (Stop Loss, Entry, Target Prices) in trading plan.

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

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

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

Filed Under: Fundamental Analysis, Market Cycle Investing, Personal Analysis, Stock Market, Value Investing Tagged: crisis stock, keppel corp, sembcorp industries, sembcorp marine, sia, temasek

Singapore and Malaysia National Giant Stocks (国庆财股)

Posted on August 9, 2020 Written by Dr Tee (Ein55)

Both Singapore and Malaysia celebrate National Day in the month of August. It is timely to share the 4 National Giant Stocks in each country which preserve the national wealth. Learn from Dr Tee on how to position these stocks during COVID-19 stock crisis.

4 Singapore National Stocks:

1) DBS (SGX: D05)

2) Singtel (SGX: Z74)

3) OCBC (SGX: O39)

4) UOB (SGX: U11)

4 Malaysia National Stocks:

1) Maybank (Bursa: 1155)

2) Top Glove (Bursa: 7113) / (SGX: BVA)

3) Hartalega (Bursa: 5168)

4) Public Bank (Bursa: 1295)

Stock market is a hidden way to preserve and grow the national wealth. For Singapore SGX, there are 30 large cap stocks in STI Index (^STI), which can be sorted below by size of market cap (share price x number of shares) with ROE (Return on Equity):

No Name / Market Cap(M) (ROE, %)

1 DBS Bank (SGX: D05) 52304 (12.3)

2 Singtel (SGX: Z74) 38761 (4.0)

3 OCBC Bank (SGX: O39) 38413 (10.3)

4 UOB Bank (SGX: U11) 32687 (11.0)

5 Wilmar International (SGX: F34) 30509 (7.7)

6 Jardine Matheson Holdings JMH (SGX: J36) 29865 (9.4)

7 Jardine Strategic Holdings JSH (SGX: J37) 22731 ( 6.1)

8 Thai Beverage (SGX: Y92) 15195 (20.1)

9 CapitaLand (SGX: C31) 13844 (8.8)

10 Ascendas Reit (SGX: A17U) 12489 (4.8)

11 Singapore Airlines (SGX: C6L) 10346 (-0.1)

12 ST Engineering (SGX: S63) 10042 (26.0)

13 Keppel Corp (SGX: BN4) 9830 (6.3)

14 Singapore Exchange (SGX: S68) 9236 (37.9)

15 Hongkong Land USD (SGX: H78) 8635 (0.5)

16 Genting Singapore (SGX: G13) 8204 (8.5)

17 Mapletree Logistics Trust (SGX: M44U) 8027 (8.2)

18 Jardine Cycle & Carriage (SGX: C07) 7659 (12.8)

19 Mapletree Industrial Trust (SGX: ME8U) 7490 (10.3)

20 City Development (SGX: C09) 7463 (5.2)

21 CapitaLand Mall Trust (SGX: C38U) 6937 (9.0)

22 CapitaLand Commercial Trust (SGX: C61U) 6294 (6.0)

23 Mapletree Commercial Trust (SGX: N2IU) 6130 (9.4)

24 Dairy Farm International (SGX: D01) 5897 (26.8)

25 UOL (SGX: U14) 5491 (4.8)

26 Venture Corporation (SGX: V03) 5449 (14.5)

27 YZJ Shipbldg SGD (SGX: BS6) 3801 (10.0)

28 Sembcorp Industries (SGX: U96) 3394 (3.1)

29 SATS (SGX: S58) 3017 (10.4)

30 ComfortDelGro (SGX: C52) 2990 (10.2)

It is clear that the Top 4 stocks with the largest market cap in Singapore are DBS (SGX: D05), Singtel (SGX: Z74), OCBC (SGX: O39) and UOB (SGX: U11). Company size may not be the right criteria of a giant stock, therefore an investor has to monitor business fundamental changes (especially during COVID-19 pandemic), eg with ROE and other indicators.

For 30 STI stocks, only Singapore Airlines, SIA (SGX: C6L) records losses in last financial year. For 30 STI stocks, COVID-19 has different degrees of impact on near future business. There is also on-going crisis, eg. low optimism crude oil price which affects the Oil & Gas sector, including Keppel Corp (SGX: BN4) and Sembcorp Industries (SGX: U96), which may take longer time to recover with strong support of sponsor, Temasek.

3 major bank stocks (DBS, OCBC, UOB) in Singapore have contributed to about 1/3 of Singapore stock market. Bank stocks are sensitive to interest rate changes, therefore current low interest rates globally (driven by nearly 0% interest rate by the Fed of US) have reduced the Net Interest Margin (NIM), resulting in lower interest related income. At the same time, Non-Performing Loan (NPL) is increasing during COVID-19, banks have to increase more provision funds to prepare for possible default in loan payment of some countries, including Oil & Gas sector (eg. Hin Leong which has high debt to 3 major banks). As a result, it is not surprised to see bank stocks report poorer quarterly results for Q1 and Q2 / 2020.

MAS has requested 3 major banks in Singapore to cap the dividend payment for FY2020 to maximum of 60% of FY2019. This implies for an average dividend yield of 6%, an investor may only receive 6 x 0.6 = 3.6% for the next 1 year. As a result, 3 major bank stocks were under significant price correction recently (which also affect performance of STI). However, a long term bank stock investor should not consider dividend payment as a criteria to decide on investing. In fact, the share price correction of over 3% in 1 week has compensated for the “loss” of dividend (which is kept as retained earnings in balance sheet, a form of saving for investor, similar to many REITs in Q1 and Q2 / 2020 to preserve cash).

Here is a list of 30 Banking & Finance stocks in Singapore, an investor may focus on 3 major bank stocks:
AMTD IB OV (SGX: HKB), B&M Hldg (SGX: CJN), DBS Bank (SGX: D05), Edition (SGX: 5HG), G K Goh (SGX: G41), Global Investment (SGX: B73), Great Eastern (SGX: G07), Hong Leong Finance (SGX: S41), Hotung Investment (SGX: BLS), IFAST Corporation (SGX: AIY), IFS Capital (SGX: I49), Intraco (SGX: I06), Maxi-Cash Finance (SGX: 5UF), MoneyMax Finance (SGX: 5WJ), Net Pacific Finance (SGX: 5QY), OCBC Bank (SGX: O39), Pacific Century (SGX: P15), Prudential USD (SGX: K6S), Singapore Exchange (SGX: S68), SHS (SGX: 566), Sing Investments & Finance (SGX: S35), Singapore Reinsurance (SGX: S49), Singapura Finance (SGX: S23), TIH (SGX: T55), Uni-Asia Group (SGX: CHJ), UOB Bank (SGX: U11), UOB-KAY HIAN HOLDINGS (SGX: U10), UOI (SGX: U13), ValueMax (SGX: T6I), Vibrant Group (SGX: BIP).

Singtel is also a crisis giant stock in bearish Telco sector (started a few years before COVID-19), an investor who “Buy Low” may get Lower in share price, gaining dividend yield (eg. 5%) but making capital loss (lower share price). Telco business is saturated, economic moat is narrow as most Telco services could be easily replaced by other competitors, therefore profit margin is lower with intense competition not only in local market but also in regional market (Singtel has over 50% revenue from overseas markets).

OCBC, UOB and Singtel are relatively at lower optimism region while DBS is at moderate optimism level. Each giant stock requires different strategy (crisis, cyclic, growth, etc) in positioning, either for short term trading or long term investing.

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Malaysia Bursa with 30 KLCI (^KLCI) stocks, top 4 giant stocks by market cap has significant changes recently. Maybank (Bursa: 1155) is still the largest but both Top Glove (Bursa: 7113) / (SGX: BVA) and Hartalega (Bursa: 5168) have surpassed Public Bank (Bursa: 1295), mainly due to speculation in stocks during COVID-19 for glove related stocks. Top Glove has dual listing in both Malaysia Bursa and Singapore SGX, therefore the wealth of a nation could be shared by global investors, regardless of nationality.

Here is a list of 30 Malaysia Bursa KLCI Index component stocks which may be considered (investor has to focus only on giant stocks for investing):
CIMB (Bursa: 1023) CIMB GROUP HOLDINGS BERHAD, DIALOG (Bursa: 7277) DIALOG GROUP BERHAD, DIGI (Bursa: 6947) DIGI.COM BERHAD, GENM (Bursa: 4715) GENTING MALAYSIA BERHAD, GENTING (Bursa: 3182) GENTING BERHAD, HAPSENG (Bursa: 3034) HAP SENG CONSOLIDATED BERHAD, HARTA (Bursa: 5168) HARTALEGA HOLDINGS BERHAD, HLBANK (Bursa: 5819) HONG LEONG BANK BERHAD, HLFG (Bursa: 1082) HONG LEONG FINANCIAL GROUP BERHAD, IHH (Bursa: 5225) IHH HEALTHCARE BERHAD, IOICORP (1961) IOI CORPORATION BERHAD, KLCC (Bursa: 5235SS) KLCC PROPERTY HOLDINGS BERHAD, KLK (Bursa: 2445) KUALA LUMPUR KEPONG BERHAD, MAXIS (Bursa: 6012) MAXIS BERHAD, MAYBANK (Bursa: 1155) MALAYAN BANKING BERHAD, MISC (Bursa: 3816) MISC BERHAD, NESTLE (Bursa: 4707) NESTLE MALAYSIA BERHAD, PBBANK (Bursa: 1295) PUBLIC BANK BERHAD, PCHEM (Bursa: 5183) PETRONAS CHEMICALS GROUP BERHAD, PETDAG (Bursa: 5681) PETRONAS DAGANGAN BHD, PETGAS (Bursa: 6033) PETRONAS GAS BERHAD, PMETAL (Bursa: 8869) PRESS METAL ALUMINIUM HOLDINGS BERHAD, PPB (Bursa: 4065) PPB GROUP BERHAD, RHBBANK (Bursa: 1066) RHB BANK BERHAD, SIME (Bursa: 4197) SIME DARBY BERHAD, SIMEPLT (Bursa: 5285) SIME DARBY PLANTATION BERHAD, TENAGA (Bursa: 5347) TENAGA NASIONAL BHD, TM (Bursa: 4863) TELEKOM MALAYSIA BERHAD, TOPGLOV (Bursa: 7113) TOP GLOVE CORPORATION BHD.

Strong fundamental stocks (eg. glove business) with market greed usually result in market speculation or bubble. Each positive news would be used as a reason to buy high for share prices. Despite strong business fundamental, glove stocks are more suitable for short term trading with trend-following strategies, Buy High Sell Higher. However, due to relative high optimism level, each unexpected correction may incur high losses if a trader does not have a trading plan with S.E.T. (Stop Loss, Entry, Target) prices.

Maybank and Public Bank are aligned with Singapore and global banks at relatively lower optimism levels. Bank stocks are cyclic in nature, therefore investing in national banks (usually supported by local government) during global financial crisis would have higher chances of success for longer term investors who could overcome the market fear, investing with progressive entries of capital (eg. 10 x 10%, 5 x 20%, 2 x 50%, etc). Saving in banks would receive less than 1% return in interest but investing in giant bank stocks could receive over 100% return over a market cycle.

Each country or region has its own national blue chip stock. For example, TSMC (NYSE: TSM) contributed to 1/3 of Taiwan TSEC Stock Index (^TWII). With bullish semiconductor / 5G stocks, TSMC has doubled its share price in 6 months, contributing to higher index value of Taiwan stock market. TSMC has monopoly of 5 nanometer technology in wafer fab, a crucial pillar for emerging 5G Telco business over the next 10 years.

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Dilemma of investors for global growth stocks (eg. technology, glove, healthcare, etc) are share prices are not cheap when market is not fearful. Therefore, crisis is always an opportunity, especially when a stock price drops significantly during an unexpected crisis (eg. COVID-19 pandemic) but business fundamental is not much affected or even growing.

Drop by Dr Tee free 4hr webinar 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.

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Filed Under: Macroeconomy, Market Cycle Investing, Market Outlook, Stock Market, Technical Analysis Tagged: bank stock, crisis stock, dividend stock, glove stock, growth stock, telco stocks

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