Stocks A-Z Archives

Grandparents Bank Stock – HSBC (HKEX: 0005)

Posted on February 19, 2020 Written by Dr Tee (Ein55)

Despite HSBC (HKEX: 0005) is not a giant bank stock, it is definitely not a junk stock. It used to be a giant stock several decades ago but declining over the last decade in both business and stock prices. So, for life-time investing strategy, it is important to review the grandparents blue chips (another example is SPH, SGX: T29), at least once a year, if business moves in wrong direction (downtrend instead of uptrend) year after year, a painful early farewell may be required, not to wait until falling in share prices over 50%, be a lifetime investor unwillingly, resulting in more capital losses through long term investing of a declining business.

HSBC is still the largest bank in Europe and Hong Kong but we may not need to buy the largest bank. Instead, we focus in most value for money giant bank stock for investing (many in Asia countries, eg Hong Kong / China, Malaysia, etc), selecting the strongest momentum bank stock for trading (probably in US).

HSBC is not a giant bank stock (big size but not strong fundamentally). Global financial crisis has not come, weaker business already catch the cold (start to layoff staff recently), not sure if could survive in the next cold winter with intense global competition.

Investors may also compare with 3 major banks of Singapore: DBS Bank (SGX: D05), OCBC Bank (SGX: O39) and UOB Bank (SGX: U11) which require different investing strategies.

Learn from Dr Tee invest in local and global giant stocks (bank, property, REIT, F&B, healthcare, technology, oil & gas, etc) from Free 4hr stock investment course. Register Here: www.ein55.com

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Filed Under: Fundamental Analysis, Stock Market, Stocks A-Z Tagged: bank stock, hsbc

Impact of SARS 2003 and Coronavirus 2020 on Global Stock Market

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

SARS and Coronavirus could be from similar family of virus but occurred at different timing of market cycle optimism, having different risks to global economy and stock market.

SARS started in late 2002, near to low optimism of global stock market after burst of Year 2000 Dotcom bubble, ending around mid 2003, so impact to stock market is limited. After ending of SARS, regional and global stock market start to recover.

Coronavirus started in late 2019, near to low optimism of China stock market but at high optimism of global stock market (US, World). Currently global/US stock market are mainly supported by US presidential election year with strong US economy, especially with cease fire of US-China trade war and end of impeachment on Trump.

Relatively, potential risk of Coronavirus to global stock market is greater than SARS mainly because:
1) Higher optimism level of global stock market, more potential to fall down when there is a black swan
2) Contribution of China to global economy in Year 2020 (15% world GDP) is 3 times more than in Year 2003 (5% world GDP)
3) Spreading of Coronavirus is faster than SARS, despite fatality rate is lower, total number of death (and therefore fear) could be more if dragged much longer without an effective medical solution

Therefore, the 2 main X-factors are mainly US election results (affecting US market, especially if Trump not elected or behind in winning rate) and severity and duration of Coronavirus (affecting China / Asia market).

Shorter term trading on more bullish US stock market (achieving new historical high again recently) is relatively safer. For China/Asia market, short term recovery could be cyclic in nature, could be suppressed when there is new unknown negative news of Coronavirus.

Learn from Dr Tee free 4hr course on how to invest stocks during global financial crisis. Register Here: www.ein55.com

Filed Under: Market Cycle Investing, Market Optimism, Stocks A-Z Tagged: coronavirus, global stock market, sars

US Stocks (Intel vs Micron, AT&T vs Verizon) & Sectors Comparison (Telco & Semiconductor)

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

There is a good question asked by Ein55 investment forum member (click here to join forum for free) on comparison of these 4 US stocks from 2 sectors:
– Semiconductor / Technology: Intel (Nasdaq: INTC) vs Micron (Nasdaq: MU)
– Telco: Verizon (NYSE: VZ) vs AT&T (NYSE: T)

Here are my replies after application of “Giant Detector” tool just now, only personal views for educational purpose:

1) These 4 stocks generally are giant stocks, choice of stock or sector depends on investor personality which determines the strategy to apply, eg. short term trading or long term investing, whether buy low sell high (for cyclic stocks), or buy low & hold long term (growth stocks) or shorting (when trend is reversed in a bearish market). Micron may not for long term investing due to very cyclic nature.

2) These 4 stocks belong to the same country (Level 3), USA, therefore trends are mostly following US S&P500 / Nasdaq, generally bullish.

3) These 2 pairs of stocks also from the same sector (Level 2). Telco: Verizon (NYSE: VZ) vs AT&T (NYSE: T). Semicon / Tech: Intel (Nasdaq: INTC) vs Micron (Nasdaq: MU). Both sectors are also following Level 3 in US with uptrend prices.

However, these 2 sectors are different:
– Telco is a “growing” industry in US, suitable to buy low sell high, or buy low & hold.

– Semicon / Technology is a “cyclic” industry in US, more suitable to buy low sell high (especially for Micron)

4) The key differences are with individual stocks (Level 1):
– Micron is more cyclic than Intel (choice depends on personality on risk tolerances), both have strong fundamental but tech / semicon is susceptible to economic cycle. We may have version 2.0 of Dot Com bubble (Ver 1.0 was in Year 2000), which technology stocks usually would go to high optimism during bullish economy, eg now, both stocks are over 70% Optimism.

– Verizon has stronger growth than AT&T (difference is not very large), both have strong fundamental.

In the last Ein55 Charity Course, we have reviewed a strong Hong Kong Telco dividend giant stock, could be better than both Verizon and AT&T for long term investing. US stocks are more suitable for shorter term investing or trading due to high optimism level in the current US stock market. Please do your own analysis and make decision aligned with own personality.

For students waiting to attend 6-day Ein55 classes in Feb and June 2020, you will have chance to do similar homework to study the best giant stocks in each sector or country after learning Giant Detector on Day3 of the 6-day course.

For public readers (non-graduate) who are new to stock investing or Ein55 investing styles, you may sign up free 4 hours stock investment course by Dr Tee to learn LO-FTP strategies: Levels 1-4, Optimism, Fundamental, Technical, Personal Analysis. Register at: www.ein55.com

Filed Under: Market Optimism, Stock Market, Stocks A-Z Tagged: AT&T, Intel, Micron, Verizon

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

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

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

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

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

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

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

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

Investing Strategy in Monopoly Stock Exchange – SGX Stock (S68)

Posted on March 14, 2019 Written by Dr Tee (Ein55)

Stock exchange is a monopoly business, sponsor usually is by the government of entire country because stock market is an engine to provide capital for growth in business (Level 1 – individual company) and economy (Level 3 – country). At the same time, stock exchange usually is a profitable business for major economy, growth depends on trading volume of stocks and other derivatives, number of stocks listed and new IPO yearly, etc. Let’s learn the monopoly stock strategies (Optimism with FA + TA + PA) to profit from global stock exchange stock, using SGX stock (S68) as an example:

1) Personal Analysis (PA)
SGX has strong sponsor of Singapore government which is AAA credit rating. Not all the monopoly stocks are good choices for investing, especially for declining industry. SGX is a reflection of Singapore economy through stock market, a growing financial industry. Liquidity is a major constraint for SGX, therefore SGX has to collaborate with regional stock exchanges to promote flowing of investing funds globally.

2) Fundamental Analysis (FA)
Buy a stock means one is in partnership with someone doing business together. It is meaningless to buy cheap (common mistake for a beginner investor) for a stock if one does not know the value in business. SGX stock has over 30% ROE for the past 13 years, a strong growing company with stable positive operating cashflow generated each year. It is also a stable income generator (due to stable positive free cashflow) with yearly dividend yield of about 3-4% for the past 10 years (except for 7.5% dividend in year 2008 during subprime crisis due to drop in share prices with stable dividend).

3) Technical Analysis (TA)
SGX stock has been oscillating +/-30% between a tight price range of $6+ to $8+ for the past 10 years (correlating well with stable STI within 3000 +/- 300 points), a simple investing + trading strategy could be buying SGX share just above $7 while it is uptrend, shorting just below $8 while it is downtrend, collecting about 3-4% dividend along the way during the holding period (as if a fixed deposit in stock market with 3-4% “interest” if one ignore the little movement of share prices, double of 1-2% bank interest rates over the past 10 years).

SGX is a monopoly stock with strong fundamental (FA), protected indirectly by trusted sponsor, the Singapore government (PA), therefore a giant stock. A trader could simply apply optimism & TA to buy low sell high while it is moving in a cyclic way.

4) Optimism Analysis
Long-term Optimism of SGX stock is about 10% currently, considering an investing opportunity to invest at low optimism <25%. However, there are different qualities of low optimism or “crisis” stocks (price is much less than value), SGX low optimism at Level 1 (company) is not aligned with optimism at Level 2 (Financial Sector), Level 3 (country level, STI which is at mid optimism level of about 45%) or Level 4 (world level which is about 70% optimism for global stocks). Therefore, SGX is more suitable for swing trading (within $7-$8 share price range) in short term and/or dividend investing in medium term (collect 3-4% dividend yearly), instead of investing for long term (a global financial crisis is required to correct the share prices, only then one could invest to buy low and hold long term).
Interested readers may study other global stock exchanges, selecting a suitable one for possible investment, ideally aligning with Levels 1-4 crisis to buy low. FA performance and credit rating of sponsor (respective country) for different exchange could vary, do your own studies to compare with global stock exchanges, eg. Bursa, HKEx, etc.

There are other much better global monopoly stocks in the world, especially in private sectors which can have control over the prices of products or services to generate enormous profits. Another close example is ICBC (HKEx: 1398), world largest bank, a cyclic trading stock protected by FA & PA, similar strategy as SGX may be applied.

Interested readers may learn from 4hr free stock investment course by Dr Tee to learn the complete 10 strategies, including discussion of many local and global giant blue chip stocks with potential. Register Here: www.ein55.com

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

Best World Stock – To Invest or to Trade?

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

Before Best World stock announces FY 2018 results, Ein55 students could project this positive results many months in advance as the company hassustainable growing business. So, Best World management is smart to announce the corporate news (reply to Business Times) before good 2018 corporate results. When the fear is gone, as long as global stock market is strong, Best World stock has chance to recover again above $3/share as most people are greed & fear driven in stock market.

Valuation of Best World stock is not so much based on asset approach (unlike property or bank stocks), it is more on future earning capability, as well as 10X market potential in China. Currently both China and Taiwan markets contribute to bulk of earning.

Best World stock has recovered in share prices back to above critical support of $2.70, to the level before the trading halt. Temporary, the Level 1 (company) crisis is relieved unless the Business Times could find more negative points.

The main question mark on Best World may be still the “secret” of business model driving the sales, how it could make money in a sustainable way. Although investors may not have full info on direct customers (final users of beauty products), Best World management might know the estimated numbers or trends which could be a trade secret from competitors.

In this beauty industry, Ein55 coaching homework (see sample attached) shows that Best World has the highest profit margin but share price growth is much faster than the earning growth. If one could trust the auditor E&Y, this is a strong growth stock but at speculated high prices (more than 10 times growth in share prices over the past few years).

In conclusion, Best World may be more suitable for trading, not for investing as the stock is at high optimism. When price is recovering well, it could be a momentum stock as well, one could buy high sell higher. When price momentum is lost or there is a higher level (L3 country or L4 world) crisis, one may need to exit as a trader as well.

Global stock market has turned bullish over the past few months. Readers may learn from Dr Tee free 4hr stock investment course to learn various global giant stocks for long term investing or short term momentum trading. Register Here: www.ein55.com

Filed Under: Fundamental Analysis, Stock Market, Stocks A-Z

YangZiJiang Stock Review – Sample Ein55 Analysis

Posted on June 29, 2018 Written by Dr Tee (Ein55)

All Ein55 graduates are trained for a simple trading/investing system of Optimism + FA + TA. Here is a sample application on YangZiJiang stock review based on a request by a forum member, sharing for pure educational purpose, not a personal financial advice.

Stock = YangZiJiang (SGX: BS6.SI)

Current Price = S$0.90 (28 Jun 2018)

Optimism (long term) = 39% (below Ein55 “intrinsic value” of $1.13 but still above buying zone of 25% Optimism).

Optimism (mid term) = 22%.

FA (Fundamental Analysis) = 4.5 point (out of max 8 points for a super giant), average performance.

TA (Technical Analysis) = Down-Down-Down (sharp falling knife from short term to mid term to long term), potential for short term shorting but must know how to setup with entry/exit signal.

Strategy = Do not qualify Ein55 “giant stock” criteria, may not consider for long term investing. A cyclic stock in nature, moderate dividend, possible to buy low sell high, applying mid-term trading strategies but probability of success may be limited. For short term trading, possible to short (strong bearish trend) but need to wait for right entry signal.

Possible actions = wait for investor (till 25% Optimism is reached) and trader (till trend is reversed from bearish to bullish). Decision making is personality based, it is possible for investor to ignore, mid-term trader to wait to buy while short-term trader to wait til short, all are valid actions if aligned to individual.

This is the most simplified Ein55 investing/trading system, Ein55 graduates are trained to make a decision (Buy / Hold / Sell / Wait / Shorting) with quick glance of Optimism + FA + TA.

For more in-depth YangZiJiang stock review, one may need to integrate with L2 (sector – shipping for YangZiJiang, Baltic Dry Index, etc), L3 (country – Singapore / China indices for comparison with YangZiJiang) and L4 (world – economy / stock) indicators, understanding the interactions of all investment market: stock, property, bond, forex, commodity and economy, aligning with own unique personality (from short term trading to long term investing) and investment goals with strategies (investing for income or capital gains or both), consideration of political economy, PA (Personal Analysis), etc, through 55 Ein55 investing styles.

For general public, if you are from Singapore, feel free to sign up for free 4 hours investment course by Dr Tee to learn Optimism + FA + TA + PA. Register in www.ein55.com.

For those who are from overseas (outside Singapore) or too busy to attend the free course, you may sign up for Ein55 video course by Dr Tee (different content from free 4hr course, focus more on giant stocks with Fundamental Analysis). Register Here: https://www.investingnote.com/store/products/discover-giant-stocks-value-investing-strategies

Filed Under: Fundamental Analysis, Market Optimism, Stock Market, Stocks A-Z, Technical Analysis Tagged: yangzijiang, YangZiJiang Stock Review

Top 10 Global Blue Chip Stocks – Dream Team Portfolio

Posted on November 2, 2017 Written by Dr Tee (Ein55)

There are over 40,000 stocks in the world, a smart investor has to carefully choose Top 10 global blue chip stocks aligned with own unique personality as investment portfolio to grow the wealth.

A smart investor should form a dream team portfolio with global Top 10 stocks for both passive incomes and capital gains. Let’s learn step-by-step with a portfolio of 10 global blue chip stocks with strong fundamentals in 8 growing sectors (Bank, Property, REIT, F&B, Casino, Consumer, Oil & Gas, ETF), applying Ein55 Optimism as investment clock, waiting patiently to buy low in global financial crisis and sell high in bullish stock market for tremendous potential return. These Top 10 blue chip stocks are diversified over 4 countries: 4 from Singapore, 3 from USA, 2 from Hong Kong, 1 from Malaysia. Strength and opportunities for each stock and suggested strategies will be explained.

Stock investment is not just what to buy, the mastery of investment clock is crucial, knowing when to buy and sell to maximize the profit. In general, Buy when Optimism <25%, Hold or Wait when Optimism 25-75%, Sell when Optimism >75% (see sample Ein55 Optimism in Figure below).

(#1) ICBC (Hong Kong, HKEx: 1398), Industrial and Commercial Bank of China

Defender / Midfielder Strategies: For long term investing, collect stable dividend payment as passive income with China and Temasek protection. Maximize dividend yield when buying stock at low optimism. For medium term trading, apply Ein55 Optimism to buy low sell high every few years for quicker capital gains.

ICBC is the largest bank in China and also the whole world (based on current share price and valuation). The business with stable growing fundamental is supported by strong economy in China with large population. Temasek is a major shareholder, providing stability to the share prices, an additional shield of defense for investors. With increasing US and global central bank interest rates, the outlook for banking and finance stocks are positive as the net interest margin (NIM) will help the global banks to grow in earnings until the next global financial crisis.

Current Ein55 Optimism of ICBC is high at 78% (see Figure above), in addition to hold for stable 6% dividend yield, an investor also has an option to sell the stock first, buying back when share price drops to below 25% Optimism in future, aiming to maximize the dividend yield. Since global stock market is at high optimism, an investor has to take note of the signals of global financial crisis which would affect the global banking and finance stocks significantly. Crisis is an opportunity if an investor knows when to buy a strong fundamental stock at price with low Ein55 Optimism.

ICBC is a bank blue chip stock, cyclic in nature due to volatile China / Hong Kong stock market and economic cycles. Therefore, besides being a “Defender” stock (dividends only), it may also be considered as a “Striker” (capital gains only) or “Midfielder” (capital gains and dividends) for trading in medium term, following trends to long or short, gaining from average 65% profit from medium-term volatility of share prices with cyclic investing every 2-3 years.

(#2) Berkshire Hathaway Class-B (US, NYSE: BRK.B)

Midfielder Strategy: High-growth fund for capital gains with Warren Buffett wisdom when buying at low optimism

Warren Buffett is the richest investor in the world. Berkshire Hathaway represents an average performance of Buffett’s investment portfolio. Berkshire Class-A stock is very expensive, approaching $300,000 for 1 share, mainly suitable for high net worth individuals or big funds with long term investment strategies as the stock did not pay dividend, there was no change in number of shares, all the retained earnings for decades are accumulated and reflected in its growing share prices. Berkshire Class-B stock is a more affordable option for retail investors, pro-rated at 1/1500 price of the Class-A stock, below $200 / share currently.

Berkshire Class-B allows an easy way for retail investor to diversify over a portfolio of strong fundamental stocks owned by Warren Buffett. Despite Berkshire is a growth giant stock, it is still susceptible to systematic risk of economy cycle. During global financial crisis in 2008-2009, Berkshire share price was halved due to excessive market fear. An investor who follows Ein55 Optimism to buy below 25% Optimism, the current share price has gone up by 3 times, currently at high optimism of 79% (see Figure above).

As an investor, one has 3 possible options for investing in Berkshire stock. Firstly, assuming a buy & hold long term strategy, one may continue to hold the stock despite at high optimism but using the strong fundamental to overcome the next global financial crisis. This option is only suitable for those who have strong investor mindset, bought the share at low optimism price last time. Secondly, an investor may adopt cyclic investing approach, selling Berkshire stock first, buying back at <25% Optimism in future. This option is suitable for those investors who know how to integrate trading and economy cycle investing into overall strategy. Finally, a smart investor has the choice of buying better stocks than Warren Buffett, i.e. focusing on a few best component stocks of Berkshire to achieve higher growth than Berkshire but still enjoying the protection by Warren Buffett as a major shareholder of these few stocks.

The remaining 8 of the Top 10 blue chip stocks in dream team portfolio with key summary of strategies and Ein55 Optimism Investment Clock can be found here (30 pages eBook). Click to Download FREE eBook #1 by Dr Tee: “Global Top 10 Stocks – Dream Team Portfolio” (latest version of eBook with complete guide of What to Buy, When to Buy, When to Sell).

In the same eBook Download link, reader will get another FREE eBook #2 by Dr Tee: “Global Market Outlook” covers comprehensive investment topics: Stock, Property, Commodity, Forex, Bond and Political Economy. Past readers have benefited from the analysis. Learn to position for each market crisis and opportunity with Ein55 Optimism Strategies.

Table of Contents (eBook: Global Stock Market Outlook)

Mass Market Sentiment Survey
Review of Global Stock Markets
US Market Outlook (Economy, Stock, Property, Commodity, Bond, USD)
Regional Market Outlook (Europe, China, Hong Kong)
Singapore Market Outlook (Stock & Property)
Conclusions and Recommendations

The safest time to buy a stock is when everyone is afraid the sky will fall while the business of blue chip stock is still operating normally with consistent performance. This could be a rare opportunity to buy during a crisis; we should learn how to take this advantage to truly buy low sell high.

When Optimism Strategies are combined with Fundamental Analysis (value investing & growth investing), Technical Analysis (support / resistance / trends), and Personal Analysis (mind control of greed and fear), it is very powerful as one can take the right action (Buy, Hold, Sell, Wait or Short) at the right time aligning with his own personality.

The unique Optimism Strategy developed by Dr Tee provides a special advantage to know which investment (stock, forex, property, commodity, bond, etc.) to buy safely, when to buy, when to sell, including the option of long term holding. So far over 20,000 attendees have benefited from Dr Tee high-quality free courses to the public. Take action now to invest in your financial knowledge, starting your journey towards financial freedom.

Learn 10 Strategies of Stock Trading & Value Investing (股市投资策略)

1) Master Buy Low Sell High for all investment markets (stock, property, commodity, forex, bond) (买低卖高：股票、房地产、商品、外汇、债券)

2) Profit in bearish and bullish markets, understanding the true impact of US Interest Rate Hike, Bullish Global Economy, Oil & Gas Crisis (环球经济)

3) Long-term investing strategies to outperform portfolio return of Temasek, Li Ka-Shing, Warren Buffett, major stock indices/ETF and other funds (长期投资策略)

4) High-probability Shorting techniques for short term traders to profit from falling stock market while others are losing money or doing nothing (短期卖空技巧)

5) Generate consistent Passive Income with REITS and real property with knowhow of high dividend blue chip stocks and property market cycles (房地产信托股的被动收入)

6) Methods of Spring Cleaning for own stock portfolio to eliminate junk stocks without any hope (股票大扫除)

7) Time for Global Financial Crisis to buy blue chip stocks on sale (危机也是良机)

8) What to buy (blue chip stocks screening), When to buy/sell (buy low sell how), How much to buy/sell (risk management): (股票三部曲：买何股？何时买卖？买卖多少？)

9) Fundamental Analysis (FA) + Technical Analysis (TA) + Personal Analysis (PA), integrated with unique Optimism Strategy by Dr Tee (乐观指数：三法一体)

10) Global Stock Market Outlook: emerging opportunities with high potential in Singapore, US, China & Hong Kong stock markets (环球股票市场展望：新美中港，股票良机)

3 BONUSES for Dr Tee Workshop Attendees:

Bonus for Readers: Dr Tee Investment Forum with over 6000 members (Private Group)

(Please click “JOIN” with link above and wait for Admin approval of membership)

Market Outlook (stocks, properties, bonds, forex, commodities, macroeconomy, etc)
市场展望 (股票、房地产、债券、外汇、商品、宏观经济等)
Optimism/ Fundamental / Technical / Personal Analyses
（乐观指数 / 基本分析 / 技术分析 / 个人分析）
Investment risks & opportunities （投资风险及机遇）
Dr Tee graduates events and activities updates （Dr Tee学员活动最新消息）

Click here to join future Dr Tee (Ein55) investment courses: www.ein55.com

Filed Under: Market Optimism, Market Outlook, Stock Market, Stocks A-Z Tagged: Blue Chip Stocks, dream team, top 10 stocks

3 Special F&B Stocks in Singapore

Posted on March 17, 2017 Written by Dr Tee (Ein55)

Ein55 Newsletter No 063 - image - F&B

Food & Beverages (F&B) stocks are usually cash cows, collecting cash or credit cards for payment after meals. It is easy to monitor the business, even if one does not know how to read financial reports, you just need to be a customer one time, see whether you will go back again to the same restaurant. Let’s analyse 3 different types of F&B stocks.

Jumbo (SGX: 42R) is a young giant stock to be proven further in the next few years. I still remember a few years ago when I visited this restaurant, they requested the dinner must be completed by 8pm when we went there around 6:30pm, this is how they could maximize the capacity by giving fast service. Its business fundamental has been reported strong since IPO, one way which earning could growth is through more successful expansion plan overseas. Now we could also enjoy their chili crabs in 3 branches in China. Perhaps one day it may be like Breadtalk, can be found in global major cities.

Breadtalk (SGX: 5DA) will help Ding Tai Fung, the famous Taiwanese Restaurant (usually full house or long queue), to enter the UK market. Market is no longer limited to the small 5 millions population of Singapore, whole world is the market but the judgment of taste could vary from one country to another country.

Breadtalk has been recovering from low optimism over the last 1 year when price was below $1.10. Congratulations to Ein55 Graduates who have taken action, recent share price is around $1.30, more than 20% gains. For Ein55 Graduates, they have learned how to position for Breadtalk through a homework.

Auric Pacific (SGX: A23), another F&B stock, is acquired by the main shareholder. This is truly a F&B stock in Singapore, covering our 3 meals, owning familiar brands of Sunshine Bread (breakfast), Food Junction (Lunch) and Delifrance (Dinner).

Auric Pacific is not really a giant stock (based on Ein55 Giant Detector) but the share price dropped to half in the last few years, creating opportunity for main shareholder to buy low and fully own the company. The offer price of $1.65 is at 100% Optimism, a selling price worth consideration for existing minority shareholders.

——————————————————————————-

There are about 50 F&B stocks in Singapore, we should only consider the Top 5 stocks. Super Group is rated as No 3 F&B Giant, acquired a few months ago. How to know which are giant F&B? Ask yourself, where will you and your friends go for breakfast, lunch and dinner? Too subjective?

Alternatively, apply Ein55 Giant Detector to identify the F&B giants in Singapore and globally, then use Optimism Strategy as investment clock to own these cash cows when other people are fearful or not interested. Investing is as easy as that but not everyone has the patience to wait for the “meals” to be served for so long! Know yourself, finding the right business partner for you by owning their shares.

Filed Under: Stock Market, Stocks A-Z Tagged: f&b stocks

Jardine Group and UOB Group with Cross-Holding Stock Network

Posted on March 7, 2017 Written by Dr Tee (Ein55)

Ein55 Newsletter No 059 - 2017-03-07 - Jardine Cross Holding

Company A owns Company B. In return, Company B also owns Company A. This is a complex cross-holding of stock network. Let’s learn how smart investors in Jardine Group and UOB Group, using the complex structure to hide their undervalue gem of stock.

Jardine is a giant group of stocks with nearly 200 years of history for Jardine Matheson Holdings, originally from China/Hong Kong, then having dual stock listing in London and Singapore stock exchanges. Ein55 Graduates have already considered Jardine Group of stocks: Jardine Strategic Holdings (SGX: JSH), Jardine Matheson Holdings (SGX: JMH), Jardine Cycle & Carriage (SGXL C07), Hong Kong Land (SGX: H78) last year when their Optimism levels were still low, share prices have gone up more than 20% since then when the market fear has subsided.

There is an interesting history for the cross-holding structure for Jardine group (image source: seekingalpha). Hong Kong richest person, Mr Li Ka-Shing planned to increase ownership in Hong Kong Land in 1980s, the Jardine group with Keswick family defended their control, forming JSH which owns JMH, in return JMH also owns JSH, very hard for any hostile takeover with this complex share structure.

UOB chairman, Mr Wee Cho Yaw also has a similar cross-holding network of stocks under UOB Group. There is a hidden gem in Wee family stock portfolio. Ein55 Graduates have learned in the last Charity Course (Discounted Asset Stock) on this special stock. The stock structure is so complex that undervalued stock could not be seen easily.

Ein55 Newsletter No 059 - 2017-03-07 - Wee Cho Yaw

Normal investors could only buy at fair price because they don’t know how low is considered low for a share price. Traders would buy at high price, following trend to sell at higher price. Speculators would consider when there is good news with surge of more than 20%, buying at higher price, hoping to sell at highest price. Due to difference in entry prices, their reward / risk ratio will be different.

Ein55 Graduates have learned to buy giant stocks at unfair price with low optimism. For long term investors, some even consider low optimism from level 1 (business), level 2 (sector), level 3 (country) to level 4 (world).

Filed Under: Market Optimism, Stock Market, Stocks A-Z, Value Investing Tagged: jardine, uob, wee chow yaw

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