5 Glove Giant Stocks Recovering from Crisis (孤掌难鸣)

Posted on May 19, 2023 Written by

During the first year of pandemic in 2020, due to extraordinary demand for gloves, both the sales (>3X) and net profits (>5X) have set record high for glove manufacturers, supported by higher volume and higher selling prices, driving share prices to over 5-10 times compared to pre-pandemic. However, the quick return has invited many smaller players, supply more than demand when fear of COVID was fading over the past 2 years, glove stocks suffer big drops of both sales and income to about 10-20% of peak performances, even lower than pre-pandemic, driving the share prices like a roller-coaster, this time to less than 10% of peak prices.

In this article, you will learn 5 glove giant stocks in Singapore and Malaysia benefit from recovering in cyclic business in post-pandemic with over 2X upside potential of share prices, each requiring unique stock strategies for investing or trading.

1) Top Glove (SGX: BVA) / (Bursa: 7113) – Singapore / Malaysia Giant Glove Stock

2) Hartalega (Bursa: 5168) – Malaysia Giant Glove Stock

3) Kossan (Bursa: 7153) – Malaysia Giant Glove Stock

4) SuperMax (Bursa: 7106) – Malaysia Giant Glove Stock

5) Riverstone (SGX: AP4) – Singapore Giant Glove Stock

“Crisis is Opportunity‘, a golden investing rule but only true if the stock prices are falling to low Optimism while business is still intact or having high chance to recover. For glove stocks, due to cyclic business induced by pandemic (孤掌难鸣), despite some are still making losses now, demand for glove will be back sooner or later, especially when smaller players could not survive through the cold winter, demand will be more than supply again (currently many glove manufacturers only produce less than 50% capacity).

Buy Low may lower before an investor could Sell High in future, no one could predict the lowest/highest points for stock prices or businesses. Therefore, it is more practical to Buy Low enough, having patience to hold and then Sell High enough one day, integrating with several key indicators for business and stock price reversal. Crisis investing requires diversification over a portfolio of 10-20 giant stocks over several sectors and countries, alignment with own personality (eg. short / mid / long term) is key for success.

The largest glove stock, Top Glove, takes the lead to announce recently that ASP (Average Selling Price) of glove will be adjusted higher. Other competitors would follow the same trend of market leader, when glove selling prices are higher, when demand may be increasing in the next 1 year with more sales (glove also has expiry dates, inventory will be exhausted), likely they would report profits again, even if only aiming for target of pre-pandemic in 2019, both the sales and share prices could have 2X upside potential.

Top Glove (listed in both Singapore and Malaysia), Hartalega, Kossan and SuperMax are considered the Big Four of glove manufacturers in Malaysia, all are giant stocks (based on Dr Tee criteria), will be discussed in further.  Riverstone is a smaller player (listed in Singapore) but having strong business fundamental, will be discussed as well.

In recent 15th Ein55 Charity Course (6 May 2023) on Global Discounted NAV Stocks, we have raised fund of $16,300 for Tzu Chi Singapore to help needy families in Singapore. Under the spirit of charity, Dr Tee decides to share 5 glove stocks discussed (SuperMax is an undervalue stock with stock price much less than discounted asset value) with readers as strikers in post-pandemic with light at the end of tunnel for glove industry (read each details in this article to fully understand on how to position in these giant stocks).

So, we will elaborate here mainly on 5 giant glove stocks (Top Glove, Hartalega, Kossan, SuperMax, Riverstone) which may be considered for both longer term investing (when correcting below a fair price with holding power) and short term trading (following S.E.T. trading rule – Stop Loss / Entry / Target Prices).

1) Top Glove (SGX: BVA) / (Bursa: 7113) – Singapore / Malaysia Giant Glove Stock

Top Glove is the world’s largest rubber glove manufacturer with many types of latex and nitrile gloves from manufacturing facilities in Malaysia, Thailand and China. Founder and major shareholder is Lim Wee Chai (27% ownership), was No 14 richest person in Malaysia (Forbes’ List), but ranking drops significantly with share prices from nearly RM10 to less than RM1 at one time.

Top Glove has dual listing in Malaysia Bursa (longer history) and Singapore SGX. The relative stock performance are aligned but due to different group of investors, short term share price in SGX (BVA) can be slightly different from Bursa (7113). Fundamentally, each share (SGX or Bursa) is the same but short term share price may not be due to difference of forex (SGD/MYR) alone, especially ringgit has been weaker over the past few years.

Due to low optimism in share price but weaker business (may turn around to positive in about 1 year), Top Glove may be considered as a striker stock (aiming for high potential capital gains with little or no dividend support) for short term / medium term trading with condition the share prices (Bursa: 7113) has to stay above RM1 as critical support (SGX BVA will be S$0.30 with 0.33 exchange rate for SGD/MYR).

Minimum target could be 2X for trading (RM2) but if there is any global uncertainty with stock price below RM1, a trader may need to exit with stop loss (eg. 5-10%), minimizing risk of Buy Low get lower. If the cyclic business is recovering well over the next years, then the stock may be position as “mid-fielder” stock for longer term holding for both growth in capital gains and dividend payments, then the fair price target would be >RM3 of its Ein55 intrinsic value. Before the hot summer with greed, an investor or trader has to endure through winter time of reversal from bear to bull.

2) Hartalega (Bursa: 5168) – Malaysia Giant Glove Stock

Hartalega is the world’s largest nitrile glove manufacturer. Founder and major shareholder is Kuan Kam Hon (about 50% ownership with family), was the No 9 richest person in Malaysia (Forbes’ List), also drop in ranking with falling of share price from about RM20 to RM2.

Hartalega main product of nitrile glove has higher profit margin compared to latex (rubber) glove. However, this profitable product segment also attracts many competitors, therefore the high growth of Hartalega is getting slower, now is more aligned (sustainable rate) with other major competitors, sharing the big pie of glove industries.

Similar to Top Glove, Hartalega is more suitable for crisis recovering trading but critical price support is RM2 (compared to RM1 of Top Glove). Even with weaker quarterly results recently, the share price did not fall further, supported above RM2 instead, a sign of market confidence. Top Glove and Hartalega has strong correlation in share prices of about 1:2, therefore when one stock starts to move in certain direction, another stock would follow, especially if it is glove industry or general market trend. For short term trading, Top Glove is stronger than Hartalega, therefore recently Hartalega has been catching up with lagging prices above RM2.

Stock market usually is 6-12 months ahead of economy or company business, therefore positioning in either glove leader (Top Glove or Hartalega) has additional protection of stronger companies while bottom fishing to Buy Low, ideally following S.E.T. (Stop Loss / Entry / Target) for short term trading plan, monitoring future business and Ein55 Optimism level for longer term investing.

3) Kossan (Bursa: 7153) – Malaysia Giant Glove Stock

Kossan is the world’s second largest glove manufacturer (technical rubber products, medical gloves, cleanroom products, etc). Kossan is a strong growth stock (supported by growing businesses with strong cash flow), performance is stronger than the main competitor, Top Glove. Kossan has low debt level, having potential to expand further with more leveraging if needed. The glove industry is big enough for major players to share the big global pie of growing demand for gloves in manufacturing and healthcare sectors.

Again, similar strategies as Top Glove to position Kossan at low Optimism level, except critical price support is higher at RM1.25 (trading above this level is relatively safer), compared to RM1 support of Top Glove.

4) SuperMax (Bursa: 7106) – Malaysia Giant Glove Stock

SuperMax is a leading medical / latex gloves manufacturer. SuperMax has additional protection of having undervalue asset more than its share price, useful consideration if a company may be in crisis, may not go bankrupt easily.

Again, similar strategies as Top Glove to position SuperMax at low Optimism level, except critical price support is slightly lower at RM0.90 (trading above this level is relatively safer), compared to RM1 support of Top Glove.

5) Riverstone (SGX: AP4) – Singapore Giant Glove Stock

Among 5 giant glove stocks, Riverstone is the smallest player but it has its niche market. Riverstone manufactures cleanroom glove (eg. hard disk drive and semiconductor) and healthcare gloves, therefore the business is relatively stronger than other major players during post-pandemic.

Riverstone is a Malaysia company but stock is listed in Singapore, therefore the share price potential is also partially affected by Singapore stock market. Choice of stock exchange for listing does not affect the company fundamental (same share ownership) but due to different characteristic of global investors in each stock exchange (eg. US, Hong Kong, Singapore, Malaysia), etc, would make a big difference in share prices which is the ultimate goal for a company to be listed. 

Riverstone is also low Optimism level but positioning different from other 4 glove giant stocks. Since Riverstone did not fall as much as other glove giant stocks (mainly supported by stronger business), it is the only glove giant stock has not recovered yet to overcome S$0.65 resistance (to become future price support for trading). Riverstone may be considered for longer term investing (not for short term trading currently) with business trend affected by both glove industry (healthcare needs) and country economy (eg industrial needs).

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There are over 2000 giant stocks in the world based on Dr Tee criteria, choice of 10 Dream Team giant stocks have to align with one’s unique personality, eg. for shorter term trading (eg. momentum or swing trading) or longer term investing (cyclic investing, undervalue investing or growth investing). Readers should not just “copy and paste” any stock (What to Buy, When to Buy/Sell) as successful action taking requires deeper consideration (LOFTP strategies – Level / Optimism / Fundamental / Technical / Personal Analysis) which you could learn further from Dr Tee Free 4-hr Webinar.

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

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), Frasers Logistics & Commercial Trust (SGX: BUOU), Genting Singapore (SGX: G13), Hongkong Land (SGX: H78), Jardine Cycle & Carriage (SGX: C07), Jardine Matheson Holdings JMH (SGX: J36), 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 Integrated Commercial 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

View quick preview video below, Dr Tee will introduce 10 key stock investment strategies (股票投资十招) to be learned in 4hr free stock webinar:

Register Here (Dr Tee Free 4hr Stock Webinar):  www.ein55.com

Dr Tee Stock Webinar
Filed Under: Market Outlook, Stock Market Tagged: , , ,

Top 4 Crisis Defender Growth Stocks (一飞冲天)

Posted on February 17, 2023 Written by

Global stock markets experienced mini bear last year with over 30% major correction in stocks, following by strong recovery in Year 2023, especially for US and Hong Kong giant stocks, supported by declining US inflation and ending of zero COVID policy in China / Hong Kong with full reopening of borders.

Instead of worrying about uncertain markets, a smart investor and trader may consider strong growth giant stocks (一飞冲天) with protection by strong growing business, a natural way to hedge against high inflation with interest rate hike while accumulating capital gains in a steady way with global pandemic recovery.

In recent 14th Ein55 Charity Course (5 Nov 2022) on Global Growth Stocks, we have raised fund of $17,000 for Tzu Chi Singapore to help needy families in Singapore. Under the spirit of charity, Dr Tee decides to share 4 defensive growth stocks in 4 countries of 4 growing sectors (pharmaceutical, agricultural, insurance and consumer discretionary) with readers as strikers in current early bullish stock markets (read each details in this article to fully understand on how to position in these giant stocks):

1) Singapore Growth Pharmaceutical Stock – TJ DaRenTang (SGX: T14)

2) Malaysia Growth Agricultural Stock – QL Resources (Bursa: 7084)

3) Hong Kong Growth Insurance Stock – Ping An Insurance (HKEx: 2318)

4) US Growth Consumer Discretionary Stock – Nike (NYSE: NKE)

The best time to invest in global growth giant stocks is always during global stock crisis (eg. Year 2020-2021 during pandemic, 2008—2009 during subprime crisis, etc), not only able to maximize the dividend yield (due to lower entry share price), also could have higher potential of capital gains (when market cycle moves from fear in low optimism to greed in high optimism). Growth stock investing is not based on stock strategy (Buy & Hold for capital gains) alone, may be integrated with cyclic investing (Buy Low Sell High), dividend investing (Buy & Hold for dividends), swing / momentum trading (Buy & Hold for short term / medium term gains), defensive investing and other Ein55 strategies.

However, not all the high growth stocks (potential value trap) are suitable for growth investing. A growing business in the past may not be sustainable during or after COVID-19 period and a growth stock may not able to continue the same rate of growth. Similarly, even a growth stock may have strong and sustainable business but if share prices is bearish due to emotional stock market or declining sector, it may not be a good choice for investors to Buy Low (prices may get lower in short term), integration with trading or alignment with promising sectors would help for a smooth entry.

Fundamental Analysis alone is not sufficient, a low PB or low PE or high dividend yield stock may be a value trap as this may be the result of lower share price with weakening businesses. Therefore, deeper analysis is required with LOFTP (Level, Optimism, Fundamental, Technical, Personal Analysis) Strategies. 

Let’s learn these 4 giant growth stocks from 4 promising sectors (pharmaceutical, agricultural, insurance and consumer discretionary) as defenders in 4 countries (Singapore, Malaysia, Hong Kong and US), understanding the business nature, investment clock and unique strategy.


1) Singapore Growth Pharmaceutical Stock – TJ DaRenTang (SGX: T14)

During and even after COVID-19 period, TJ DaRenTang (Tianjin ZhongXin) consistently achieves outstanding growing pharmaceutical business (about 70% in TCM, Traditional Chinese Medicine). It has many patents and unique / popular products which a strong moat for future growth.

The stock is dual-listing, 1/3 in SGX (T14) and 2/3 in China SSEC (600329). Comparing using the same currency USD, China-listed stock is 4X higher price than Singapore-listed stock, resulting in Singapore stock (T14) is more valuable (from investing perspective) with 6% dividend yield with current stock price.

TJ DaRenTang is still at moderate low Ein55 Optimism (<50%) but recovering well from correction in China pandemic 2022, aiming for Ein55 intrinsic value of about $1.50/share or over $2.50/share when market emotion may be greedy again. The stock is well balanced, suitable for dividend investing (Buy & Hold for dividend), growth investing (Buy & Hold for capital gains) and trading (uptrend in short term), but not for cyclic investing (near to fair price).

Since the stock was shared on 5 Nov 2022 (about $1) during charity course, the share price has surged about 30% over the past 3 months.


2) Malaysia Growth Agricultural Stock – QL Resources (Bursa: 7084)

QL Resources is a major producer for eggs / chicken, during high inflation period in 2021-2022, unlike most commodity stocks, it suffered major correction in business due to price cap by Malaysia government for eggs / chicken. As a result, the past high growth is slowed down, then starts to grow again over the past few quarters with support of other growing divisions (marine products, palm oil and Family Mart operations).

QL Resources is still at low Ein55 Optimism (<25%) but recovering well from the worst time of eggs business, aiming for Ein55 intrinsic value of about $7.50/share or over $9/share when market emotion may be greedy again. The stock is more suitable for growth investing (Buy & Hold for capital gains) and trading (uptrend in short term).

Since the stock was shared on 5 Nov 2022 (breaking above critical $5 resistance) during charity course, the share price has climbed up about 20% over the past 3 months.


3) Hong Kong Growth Insurance Stock – Ping An Insurance (HKEx: 2318)

Over the past 3 years of pandemic, Ping An Insurance (business in China) has declined by about 1/3 but the price corrected by 2/3, aligning with the fear of Hong Kong stock market (Hang Seng Index was halved from the peak), providing a rare investing opportunity.

Ping An is undervalue, despite higher gearing ratio, core business in insurance is still defensive in nature. The parent company (Ping An) is much stronger than other subsidiaries (businesses not as good).

Ping An is still at low Ein55 Optimism (<25%) but recovering well from correction in last 3 years of pandemic, aiming for Ein55 intrinsic value of about $100/share or over $150/share when market emotion may be greedy again. The stock is all-rounded, suitable for dividend investing (Buy & Hold for dividend, 5% dividend yield currently), growth investing (Buy & Hold for capital gains), trading (uptrend in short term) and cyclic investing (Buy Low Sell High).

Since the stock was shared on 5 Nov 2022 (about $35) during charity course, the share price is nearly doubled over the past 3 months. There is still significant upside potential, mainly due to over-correction in share price over the past 3 years.


4) US Growth Consumer Discretionary Stock – Nike (NYSE: NKE)

Nike has the largest global market share for sports shoes and related products (following by Adidas and Puma). It has many popular products which a strong moat for future growth under consumer discretionary market.

Nike is still at moderate low Ein55 Optimism (<50%) but recovering well from US stock crisis in 2022, aiming for Ein55 intrinsic value of about $150/share or over $180/share when market emotion may be greedy again. The stock is more suitable for growth investing (Buy & Hold for capital gains) and trading (uptrend in short term).

Since the stock was shared on 5 Nov 2022 (about $96, later breaking above critical $100 resistance) during charity course, the share price has surged about 35% over the past 3 months.

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

There are over 2000 giant stocks in the world based on Dr Tee criteria, choice of 10 Dream Team giant stocks have to align with one’s unique personality, eg. for shorter term trading (eg. momentum or swing trading) or longer term investing (cyclic investing, undervalue investing or growth investing). Readers should not just “copy and paste” any stock (What to Buy, When to Buy/Sell) as successful action taking requires deeper consideration (LOFTP strategies – Level / Optimism / Fundamental / Technical / Personal Analysis) which you could learn further from Dr Tee Free 4-hr Webinar.

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

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), Frasers Logistics & Commercial Trust (SGX: BUOU), Genting Singapore (SGX: G13), Hongkong Land (SGX: H78), Jardine Cycle & Carriage (SGX: C07), Jardine Matheson Holdings JMH (SGX: J36), 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 Integrated Commercial 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

View quick preview video below, Dr Tee will introduce 10 key stock investment strategies (股票投资十招) to be learned in 4hr free stock webinar:

Register Here (Dr Tee Free 4hr Stock Webinar):  www.ein55.com

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

Top 4 Crisis Defender Dividend Stocks (抗压存股)

Posted on May 12, 2022 Written by

Global stock markets experienced mini dotcom bubble with over 30%-50% major correction in technology stocks, especially in US Nasdaq and Hong Kong. Both long term investors and short term traders are worried of high inflation over 8%, interest rate hike (may exceed 3% in 1 year), Russia-Ukraine War (higher commodity prices) which contribute to declining stock prices. A potential black swan may spread the fears in technology stocks to most sectors, resulting in a global financial crisis.

Instead of worrying about uncertain markets, a smart investor and trader may consider strong dividend giant stocks with protection by defensive sector business, a natural way to hedge against high inflation with interest rate hike while collecting growing passive incomes in a steady way.

In recent 13th Ein55 Charity Course on Global Dividend Stocks, we have raised fund of $21,700 for Tzu Chi Singapore to help needy families in Singapore. Under the spirit of charity, Dr Tee decides to share 4 defensive dividend stocks in 4 countries of 3 defensive sectors (banking & finance, utilities, oil & gas) with readers as defenders in current bearish stock markets (read each details in this article to fully understand on how to position in these giant stocks):

1) Singapore Dividend Bank Stock – OCBC Bank (SGX: O39)

2) Malaysia Dividend Bank Stock – Public Bank (Bursa: 1295)

3) Hong Kong Dividend Utility Stock – CK Infrastructure / CKI (HKEx: 1038)

4) US Dividend Oil & Gas Stock – Enterprise Products Partners (NYSE: EPD)

The best time to invest in global dividend giant stocks is always during global stock crisis (eg. Year 2020-2021 during pandemic, 2008—2009 during subprime crisis, etc), not only able to maximize the dividend yield (due to lower entry share price), also could have higher potential of capital gains (when market cycle moves from fear in low optimism to greed in high optimism). Dividend stock investing is not based on stock strategy (Buy & Hold for dividends) alone, may be integrated with cyclic investing (Buy Low Sell High), growth investing (Buy & Hold for capital gains), swing / momentum trading (Buy & Hold for short term / medium term gains), defensive investing and other Ein55 strategies.

However, not all the high dividend yield stocks (potential value trap) are suitable for dividend investing. A growing business in the past may not be sustainable during COVID-19 period and a dividend stock may not able to continue the payment of dividend. Similarly, even a dividend stock may have strong and sustainable business but if share prices is bearish due to emotional stock market or declining sector, it may not be a good choice for investors to Buy Low (prices may get lower in short term), integration with trading or alignment with promising sectors would help for a smooth entry.

Fundamental Analysis alone is not sufficient, a low PB or low PE or high dividend yield stock may be a value trap as this may be the result of lower share price with weakening businesses. Therefore, deeper analysis is required with LOFTP (Level, Optimism, Fundamental, Technical, Personal Analysis) Strategies. 

Let’s learn these 4 giant dividend stocks from 3 promising sectors (banks, utilities, oil & gas) as defenders in 4 countries (Singapore, Malaysia, Hong Kong and US), understanding the business nature, investment clock and unique strategy.

1) Singapore Dividend Bank Stock – OCBC Bank (SGX: O39)

With rising interest rates globally, bank sector would earn more in interest income (mainly through higher net interest margin, NIM). With accelerated pandemic recovery, banks would also make more profits in non-interest incomes (eg. insurance, credit card, investment, fund management).

So, giant bank stocks usually are good choices for dividend stocks as defenders during bearish market but they could change position as a striker with higher capital gains when stock market is bullish.

OCBC has nearly 100 years of business with merging and acquisition of many banks, supported by major shareholder, Lee Family, as well as an important subsidiary (contributing to about 30% earnings of OCBC), Great Eastern (SGX: G07), an insurance giant stock which has over 100 years of proven operations. Both giant stocks have experienced numerous stock market “crisis” over the past decades, survival-of-the-fittest principle is fully demonstrated, not comparable by any new rising star or promising IPO stock with limited history.

OCBC has strong business performance, after 60% dividend cap during FY2020 is lifted, dividend yield is back to 4.5%, highest among the 3 major Singapore Banks (OCBC, DBS, UOB), partly due to more undervalue in share prices.  Over the past 10 years, OCBC has increased dividends payment by 2.5X times, assuming similar performance in the next 10 years, dividend yield could increase to about 10% for long term investors.

OCBC is still at moderate low Ein55 Optimism (<50%) but recovering well from low in pandemic, aiming for Ein55 intrinsic value of about $13/share (about 8% potential upside in medium term) or over $15/share when market emotion may be greedy again. The stock is well balanced, suitable for dividend investing (Buy & Hold for dividend), growth investing (Buy & Hold for capital gains), but not for cyclic investing (near to fair price) nor trading when trend is still sideways.

OCBC Bank is an all-rounded stock but an investor or trader may need diversification over a portfolio of 10-20 giant stocks in 3 sectors of 3 countries, not to buy only 1 giant stock (concentration risk).


2) Malaysia Dividend Bank Stock – Public Bank (Bursa: 1295)

Similar as Singapore, Malaysia bank stocks also benefit from rising interest rates and reopening of economy, especially the international borders are widely opened to tourists.

Public Bank is one of a few remaining private banks (another is Hong Leong Bank, Bursa: 5819) in Malaysia with strong growing businesses. Public Bank is very prudent in expenses, staff cost is one of the lowest among the peers. It also has an insurance giant stock (LPI, Bursa: 8621) as subsidiary.

Relative to OCBC and peers in Singapore, Public Bank is moderate in dividend payment (about 3.3% dividend based on current share prices) but stronger in growth and high cyclic potential due to share prices heavily discounted over the past few years with lagging Malaysia economy.

Public Bank is still at moderate low Ein55 Optimism (<50%) but recovering well from low in pandemic, aiming for Ein55 intrinsic value of about $6/share (about 30% potential upside in medium term). The stock is well balanced, suitable for dividend investing (Buy & Hold for dividend), growth investing (Buy & Hold for capital gains), cyclic investing (Buy Low Sell High) and even trading when price is back to uptrend in short term.

Public Bank is an all-rounded stock but an investor or trader may need diversification over a portfolio of 10-20 giant stocks in 3 sectors of 3 countries, not to buy only 1 giant stock (concentration risk).

3) Hong Kong Dividend Utility Stock – CK Infrastructure / CKI (HKEx: 1038)

Utilities sector has defensive business (eg. power or water supplies with fixed rates for several years), therefore able to generate consistent dividends, even during a bearish stock market.

CKI is under CKH (HKEX: 1), both are Hang Seng Index component stocks with major sponsor, Li Ka-shing, the richest person in Hong Kong.  CKI also owns Power Assets (HKEx: 6) and Hong Kong Electric, as well as global utilities businesses, contributing to dividend yield of 4.7% (based on current share prices), a defensive stock popular among Hong Kong investors, especially with bearish stock market driven by ATM (Alibaba / Tencent / Meituan) and other technology stocks.

CKI is still at low Ein55 Optimism (<25%) but recovering well from low in pandemic, aiming for Ein55 intrinsic value of about $80/share (about 60% potential upside in medium term). The stock is well balanced, suitable for dividend investing (Buy & Hold for dividend), growth investing (Buy & Hold for capital gains), cyclic investing (Buy Low Sell High) and even trading when price is back to uptrend in short term.

CKI is an all-rounded stock but an investor or trader may need diversification over a portfolio of 10-20 giant stocks in 3 sectors of 3 countries, not to buy only 1 giant stock (concentration risk).

4) US Dividend Oil & Gas Stock – Enterprise Products Partners (NYSE: EPD)

Oil & Gas sector usually has cyclic business but commodity prices at higher optimism are supporting the giant stocks in oil & gas with stronger business. EPD is a special oil & gas stock with defensive business in midstream sector on delivery of crude oil and natural gas.  The earnings and cashflows are stable as business based on future contracts, less sensitive to volatile oil & gas prices.

Russia-Ukraine war has pushed the commodity prices to new high while demand for delivery of oil & gas would be more. Even when one day oil price may fall to lower optimism, EPD could still generate passive incomes which dividend payment has been consistent over the past few decades, currently dividend yield is 6.9% (about 4.3% net dividend yield after over 38% withholding tax to US government).

EPD is under MLP business model which can maximize dividend without corporate level tax, paying dividend 4 times each year, behaving like a REIT (both are required to pay 90% incomes as dividends to shareholders).

EPD is still at moderate low Ein55 Optimism (<50%) but recovering well from low in pandemic, aiming for Ein55 intrinsic value of about $30/share (about 30% potential upside in medium term). The stock is well balanced, suitable for dividend investing (Buy & Hold for dividend), growth investing (Buy & Hold for capital gains), cyclic investing (Buy Low Sell High) and even trading when price is back to uptrend in short term.

EPD is an all-rounded stock but an investor or trader may need diversification over a portfolio of 10-20 giant stocks in 3 sectors of 3 countries, not to buy only 1 giant stock (concentration risk).

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There are over 2000 giant stocks in the world based on Dr Tee criteria, choice of 10 Dream Team giant stocks have to align with one’s unique personality, eg. for shorter term trading (eg. momentum or swing trading) or longer term investing (cyclic investing, undervalue investing or growth investing). Readers should not just “copy and paste” any stock (What to Buy, When to Buy/Sell) as successful action taking requires deeper consideration (LOFTP strategies – Level / Optimism / Fundamental / Technical / Personal Analysis) which you could learn further from Dr Tee Free 4-hr Webinar.

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

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), Frasers Logistics & Commercial Trust (SGX: BUOU), Genting Singapore (SGX: G13), Hongkong Land (SGX: H78), Jardine Cycle & Carriage (SGX: C07), Jardine Matheson Holdings JMH (SGX: J36), 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 Integrated Commercial 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

View quick preview video below, Dr Tee will introduce 10 key stock investment strategies (股票投资十招) to be learned in 4hr free stock webinar:

Register Here (Dr Tee Free 4hr Stock Webinar):  www.ein55.com

Dr Tee Stock Webinar
Filed Under: Commodity Market, Fundamental Analysis, Macroeconomy, Market Optimism, Stock Market Tagged: , , , , ,

Buy Low Hold Dividend with Global REITS (为善最乐)

Posted on November 16, 2021 Written by

In recent 12th Ein55 Charity Course on Global REITs, we have raised fund of $24,000 to help needy families in Singapore. Under the spirit of charity, Dr Tee decides to share 3 Global Giant REITs with opportunities to Buy Low in 3 countries with readers (detailed strategies including Ein55 Optimism levels, Ein55 intrinsic values and Dividend Yield will be shared):

1) Singapore Giant REIT – Keppel DC REIT (SGX: AJBU)

2) Malaysia Giant REIT – Pavilion REIT / PAVREIT (Bursa: 5212)

3) Hong Kong / China Giant REIT – Link REIT (HKEx: 823)

Dr Tee, Ein55 Mentors & Graduates have together organized 12 charity investment courses (REITs in Nov 2015, May 2017, May 2019 and Nov 2021, High Dividend Stocks in Mar 2016, Oct 2017 and Nov 2019, Global Growth Stocks in Apr 2018 and Nov 2020, and Discounted NAV Stocks in Sep 2016, Nov 2018 and May 2021) in the past 6 years, donating net income of around $246,000 to Tzu Chi 慈济 Singapore.

We hope to inspire more Ein55 Graduates to reach out the society, helping others who are in need. More importantly, they have also learned the secrets of making money through investment. When more Ein55 Graduates are successful financially, they could also contribute back to the society to help more people in future.

Singapore and overseas REITs are popular investment for passive income through stable dividend stocks. By law, REITs have to redistribute 90% taxable income (from property rental income) back to shareholders in the form of dividend. Therefore, a retail investor could play the role of landlord of giant property (shopping malls, commercial buildings, hospitals, hotels, etc) with minimal capital (could be less than $1000), saving the hassle to buy/sell property (REIT manager would help), no need to deal with tenants or operations (property manager would help).  Singapore REITs are exempted from corporate tax, therefore an Singapore investor could gain extra 1-2% rental or dividend yield compared with overseas REITs.

However, ordinary dividend investors (REIT / non-REIT) collect minimal passive incomes (eg. around 3-10% dividend yield) but long term growth may be limited (eg. Singtel (SGX: Z74) or SPH (SGX: T39)) and there could be high risk of capital loss with junk REIT (eg. Eagle Hospitality Trust (SGX: LIW) which has become bankrupt).

A smarter way of dividend investing is to wait patiently to Buy Low (low Ein55 Optimism during stock crisis) for a portfolio of 10 giant global REITs (or non-REIT dividend stocks) with reasonably strong business, waiting patiently (collecting consistent dividend during winter time of stock) for recovery of REIT with capital growth. 

After the fear is fading, besides the minimal dividend yield (typically 3-10%), a smart dividend investor may choose to Sell High (cash out as opportunity fund to wait for next stock crisis to Buy Low again, especially for cyclic stocks including REITs) or hold long term for growth investing (for growth REIT), even possible for lifetime investing (selling one day only when need money or when it is no longer a giant stock based on Dr Tee criteria).

The best time to buy global giant REITs is always during global stock crisis (eg. Year 2020-2021 during pandemic, 2008—2009 during subprime crisis, etc), not only able to maximize the dividend yield (due to lower entry share price), also could have higher potential of capital gains (when market cycle moves from fear in low optimism to greed in high optimism). Global REITS investing is not based on dividend strategy (collect dividends as passive incomes) alone, may be integrated with cyclic investing (Buy Low Sell High), growth investing (Buy Low & Hold), swing trading, momentum trading, defensive investing and other Ein55 strategies.

There are thousands of global REITS (started in US a few decades ago, extending to the world, become popular in Asia). However, not all the global REITs listed are giant stocks. A growing business or consistent dividend payment in the past may not be sustainable during COVID-19 period and a REIT may remain lagging in share prices for many years, could end up as a crisis stock. Fundamental Analysis alone is not sufficient, a low PB or low PE or high dividend yield stock may be a value trap as this may be the result of lower share price with weakening businesses. Therefore, deeper analysis is required with LOFTP (Level, Optimism, Fundamental, Technical, Personal Analysis) Strategies. 

Let’s learn these 3 global giant REITs in 3 countries (Singapore, Malaysia, Hong Kong), understanding the business nature, investment clock and unique strategy.

1) Singapore Giant REIT – Keppel DC REIT (SGX: AJBU)

In the internet era with more 5G applications, data usage will be enormous with explosive growth for next decade. So, Keppel DC Reit is positioned nicely to host data storage, collecting consistent growing rental as passive incomes. Keppel DC Reit has nearly 100% business in data center (recently extending to related business such as partnership with M1) while Mapletree Industrial Trust (SGX: ME8U) has about 1/3 businesses in this growing sector. Mapletree Industrial Trust is the largest Data Center REIT in Singapore but share price (near to fair value) currently is not as attractive as Keppel DC Reit, therefore not a focus in this article.

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

After reaching 100% Optimism level during peak of pandemic, Keppel DC Reit has experienced slower growth with sector rotation. The prices over the past 1 year has been bearish, declining by about 20%, falling to low optimism <25% currently, creating another rare opportunity for long term investor with dividend yield about 4%.  However, due to bearish price trend, it is currently more suitable for contrarian investor who could apply Average Down strategy to minimize the risk of “Buy Low get lower”. 

Therefore, similar to many other crisis giant stocks at low Ein55 Optimism level (eg. Top Glove (SGX: BVA / Bursa: 7113), Tencent (HKEX: 700) or Alibaba (HKEX: 9988 / NYSE: BABA)), an investor may need to “Wait” for “crisis” in prices (but strong in business) to Buy Low or entering in several batches, either Average Down or Average Up, eg. wait for next mini rally to Buy slightly Higher (only after uptrend is established for short term, eg when above $2.40-$2.50 resistance for Keppel DC Reit).

Due to defensive business nature of Keppel DC Reit, Ein55 intrinsic value is about $2.80, current price is only about 20% discount (despite low Ein55 Optimism level). It is more suitable for Buy Low and Hold Long Term, collecting 4% dividend yield (potentially doubled every few years). Keppel DC Reit has to grow bigger with more yield accretive acquisitions (eg. recent new REIT in Guangzhou of China) to sustain this high growth with many more global competitors (both demand and supply for data center increase at the same time).

2) Malaysia Giant REIT – Pavilion REIT / PAVREIT (Bursa: 5212)

PAVREIT is a young Malaysia Giant Reit, focusing in retail business. It has high concentration with 80% value in Pavilion KL Mall (second most expensive retail mall after KLCC (Bursa: 5235SS)), therefore business is affected during pandemic with lower property valuation and negative rental reversion.

Over the past 10 years, PAVREIT has doubled its share prices but behaving in a cyclical way, partly due to cyclical retail business and dynamic political economy (changes in regulations) in Malaysia. Its dividend is halved during pandemic, therefore more suitable for cyclic investing (Buy Low Sell High) while holding minimal 3% dividend yield.

After reaching high Optimism level before pandemic, PAVREIT has experienced weaker earnings and cashflow, especially after a few yield dilutive acquisition of smaller malls (eg. Damen Mall). The prices over the past 1 year has been bearish, declining by about 30%, falling to low optimism <25% currently, creating good opportunity for medium term investor with dividend yield about 3%.  However, it is more suitable for cyclic investor or trader to apply Buy Low Sell High strategy.  Average up strategy (need to overcome $1.45-$1.50 resistance to establish short term bullish trend) may be integrated as dividend yield is lower with weaker business (worst of pandemic likely is over), may not suitable to buy for long term (unlike Keppel DC Reit which is possible to average down with strong business).

Due to medium term cyclical business nature of PAVREIT, Ein55 intrinsic value is about $1.70, current price is only about 20% discount (despite low Ein55 Optimism level). It is more suitable for Buy Low Sell High in medium term (a few years), collecting 3% dividend yield while waiting for pandemic recovery in Malaysia for additional capital gains. Political instability and weak economy in Malaysia are potential threats for Bursa stocks, including but not limited to PAVREIT.

3) Hong Kong / China Giant REIT – Link REIT (HKEx: 823)

Link REIT is the largest REIT in Hong Kong and Asia, about 2 times bigger than CICT (SGX: C38U) which is the largest Singapore REIT). It is also the 3rd largest retail REIT in the world, after Simon Property (NYSE: SPG) and Realty Income (NYSE: O) of US REITs. Link REIT has 80% value in Hong Kong (retail malls and carparks), 20% overseas.

Over the past 10+ years, Link REIT has grown its share prices by 10 times to peak of about $99 before pandemic with support of high growth businesses mainly in Hong Kong. Its dividend is stable during pandemic but high growth is slower (eg. rental reversion is reduced from 20+% in the past to 10+% in recent years), therefore still suitable for growth investing (Buy Low & Hold) while holding 4% dividend yield (would increase over the years with more expansion beyond Hong Kong, especially in mainland China).

After reaching high Optimism level before pandemic, Link REIT has experienced slower growth, price was corrected significantly by about 40% from $99 to about $57. The share price over the past 1 year has gradually recovered from low optimism <25%, despite uncertain political economy (eg. tighter market regulations by China authority) with bearish Hong Kong stock market, creating a rare opportunity for long term investor with dividend yield about 4%. 

Link REIT is the most flexible among 3 global REITs discussed in this article, possible to apply either Average Down strategy (similar to Keppel DC Reit with strong business) or Average Up strategy (good price trend in short term). Its potential short term risk (or opportunity) is the bearish Hong Kong stock market which could slowdown its price growth (but little impact on business growth), share prices supported above $70 is a nice balance to consider as common entry point for both long term investors and short term traders, although each may have different price targets for exits.

Due to major correction during pandemic, Ein55 intrinsic value is about $100, current price is about 30% discount (still at low Ein55 Optimism level). Link REIT is an all rounded REIT, may be considered for dividend investing (Buy Low & Hold for dividend growth), cyclic investing (Buy Low Sell High), growth investing (Buy Low & Hold for capital gains) or even short term trading (Buy Low Sell high in short to medium terms).  However, full mastery of each unique Ein55 investing or trading strategy is critical for ultimate success, especially on when to sell or how long to hold, not just on what to buy or when to buy.

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

Readers may read earlier article by Dr Tee for more details on 100 Singapore Dividend Stocks (REIT / non-REIT):
https://www.ein55.com/2021/03/100-singapore-dividend-stocks-and-reits-for-retirement/

Not all global REITS are giant stocks, some could be junk stocks (eg. making losses or asking investors for reserved passive incomes through rights issues). Even for a giant stock, it requires at least yearly review with Dr Tee criteria to ensure it is still a giant stock or a change in strategy may be required (eg. crisis stock investing with Striker role if there is any potential high risk). Similarly, those stocks which are not highlighted in this article, some could be marginal giant stocks, may obtain the giant stock title one day, which worth longer term investing or trading.


Ideally, a smart investor should form a dream team stock portfolio (striker / mid-fielder / defender) with 10-20 giant stocks from over 3 sectors and 3 countries.  REIT sector may contribute 1-2 stocks while it is important to diversify with more sectors (eg. Healthcare, Banking & Finance, F&B, Technology, Oil & Gas, Property / non-REIT, etc).

Since some REITs have overseas business, knowledge of Forex (eg. USD/SGD, SGD/HKD, SGD/MYR, etc) would be critical.  A qualified REIT investor should also understand property market cycle, macroeconomy behavior, integrating with dividend investing or growth investing or cyclic / momentum trading.

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

There are over 2000 giant stocks in the world based on Dr Tee criteria, choice of 10 Dream Team giant stocks have to align with one’s unique personality, eg. for shorter term trading (eg. momentum or swing trading) or longer term investing (cyclic investing, undervalue investing or growth investing). Readers should not just “copy and paste” any stock (What to Buy, When to Buy/Sell) as successful action taking requires deeper consideration (LOFTP strategies – Level / Optimism / Fundamental / Technical / Personal Analysis) which you could learn further from Dr Tee Free 4-hr Webinar.

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

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), Frasers Logistics & Commercial Trust (SGX: BUOU), Genting Singapore (SGX: G13), Hongkong Land (SGX: H78), Jardine Cycle & Carriage (SGX: C07), Jardine Matheson Holdings JMH (SGX: J36), 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 Integrated Commercial 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

View quick preview video below, Dr Tee will introduce 10 key stock investment strategies (股票投资十招) to be learned in 4hr free stock webinar:

Register Here (Dr Tee Free 4hr Stock Webinar):  www.ein55.com

Dr Tee Stock Webinar
Filed Under: Market Outlook, Stock Market, Technical Analysis, Value Investing Tagged: , ,

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

Posted on December 7, 2020 Written by

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

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

We hope to inspire more Ein55 Graduates to reach out the society, helping others who are in need. More importantly, they have also learned the secrets of making money through investment. When more Ein55 Graduates are successful financially, they could also contribute back to the society to help more people in future.

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

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

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

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

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

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

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

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

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

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

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

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

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

This image has an empty alt attribute; its file name is Ein55-Website-Post-Event-Register-Bursa.jpg
Filed Under: Fundamental Analysis, Market Outlook, Stock Market Tagged: ,

$176,000 Donations over 9 Charity Courses in 5 Years for Tzu Chi (慈济) with Summary of High Dividend Stocks

Posted on November 3, 2019 Written by

Dr Tee, Ein55 Mentors & Graduates have together organised 9 charity investment courses (REITs in Nov 2015, May 2017 and May 2019, High Dividend Stocks in Mar 2016, Oct 2017 and Nov 2019, Capital Growth Stocks in Apr 2018 and Discounted NAV Stocks in Sep 2016 and Nov 2018) in the past 5 years, donating net income of around $176,000 to Tzu Chi 慈济 (Singapore).

We hope to inspire more Ein55 Graduates to reach out the society, helping others who are in need. More importantly, they have also learned the secrets of making money through investment. When more Ein55 Graduates are successful financially, they could also contribute back to the society to help more people in future.

Here are key learning points from the recent Charity Course on High Dividend Stocks:
1) Invest for dividend income is one of the important criteria that stock investor must not ignore because historical data shown that
1.1) S&P 500 (1932 to 2014) – dividend contribute 45% of portfolio return
1.2) STI 30 (2003 to 2013) – dividend contribute 49% of portfolio return

2) Financial Analysts Journal indicates that a portfolio of 10 stocks will diversify >75% of total investment risk but out of it 19.2% is systematic risk which is un-diversifiable such as change in global economy situation, interest rate change, natural disaster etc, with 30 stocks will diversify >95% of unsystematic risk (operational related risks), further add on number of stocks would not reduce significant risk in the portfolio but increase difficulty to monitor. For individual investor, suggested number of stock in a portfolio is 10 to 30 stocks.

3) 3 main criteria for a High Dividend Yield (DY) Stock:
3.1) DY > 6% for Singapore stock or 7% for oversea stock base on entry price,
DY>/= Risk Free rate + LT inflation rate + local/oversea currency pair CAGR
SG : CPF SA 4% + 10yr inflation 2% = 6%
HK : 10yr TB 2.0% + 10yr inflation 3.0% + 10yr CAGR SGD/HKD 2% = 7%
US : 10yr TB 2.5% + 10yr inflation 2.5% + 10yr CAGR SGD/USD 2% = 7%

3.2) Continue 5-year non-stop payout dividend and no reduction in DPS (Dividend Per Share), best is growing year after year. For overseas stock, looking for dividend stocks with 10 years non-stop payout.

3.3) Strong fundamental stocks (eg. ROE > 5% and other criteria) to avoid value trap of high dividend yield with weaker fundamental or lower share price.

4) Telcos, Utilities, Banks, Consumer Staples and Consumer Monopoly are considered defensive sectors that can make money in any economic environment, therefore ideal for dividend stock investing. People usually will not shut off their power, close bank accounts, give up their mobile line or Internet, stop buying food & drink or stop buying toothpaste when times get tough. Furthermore, some of these companies have grown to big scale that dominate the market, they are either natural monopoly or near monopoly, duopolistic or oligopoly in the industry.

We should drive the money (helping others when you are successful), not driven by the money (making money only for own gain).

Investors should learn the unique LOFTP Strategies (Level 1-4, Optimism, Fundamental, Technical, Personal Analysis) developed by Dr Tee to choose strong global stocks, buying them at low price, then holding for consistent dividend payout or selling for high capital gains. High-quality free stock investment courses are provided by Dr Tee to the public.

Register Here to learn High Dividend Stocks & other 10 Strategies for Free: www.ein55.com

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

Filed Under: Fundamental Analysis, Stock Market Tagged:

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

Posted on May 12, 2019 Written by
charity REIT course

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

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

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

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

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

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

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

Dr Tee Investment Course (Stock, Property, Commodity, Forex, Bond)
Filed Under: Fundamental Analysis, Value Investing Tagged: , ,

$132,000 Charity Courses Donations for Tzu Chi (慈济) with Summary of Discounted NAV Stocks

Posted on November 6, 2018 Written by

Charity Course NAV Stocks

Dr Tee, Ein55 Mentor & Graduates have together organised 7 charity investment courses (REITs/Business Trusts in Nov 2015 and May 2017, High Dividend Stocks in Mar 2016 and Oct 2017, Capital Growth Stocks in Apr 2018 and Discounted NAV Stocks in Sep 2016 and Nov 2018) in the past 3 years, donating net income of around $132,000 to Tzu Chi 慈济 (Singapore). We hope to inspire more Ein55 Graduates to reach out the society, helping others who are in need.  More importantly, they have also learned the secrets of making money through investment. When more Ein55 Graduates are successful financially, they could also contribute back to the society to help more people in future.

Here are key learning points from the recent Charity Course on Discounted Net Asset Value (DNAV) Stocks:

3 Rules in calculation of Discounted NAV stock value (from Balance Sheet)

1) Non-discounted asset

– Cash, Land & Building, Investment Property that generate rental income, financial asset at market value

2) Zero value asset

– Goodwill, club membership, deferred Tax, Software licenses and etc

3) Up to 50% discount asset

– all remaining asset

Discounted NAV = Sum of “discounted” assets – (Total Liabilities + Minority Interest)

 

3 Steps in Discounted NAV Stocks Investing Strategy (What to Buy, When to Buy / Sell):

1) Scan out the list of stocks with Price-to-Book Ratio, Price/NAV = PB<1X

Start with balance sheet, restate assets at fair market value to calculate Discounted NAV (DNAV). Classify the stock scanned out into property related stocks and non-property stocks

2) Shortlisting the stock with Price/DNAV <1X, performing 5-Factors Business Fundamental Check.

Rank the final shortlisted D’NAV stock in watch list. For property related stock, look for P/DNAV < 0.8X.

3) Combine Optimism Method to decide BUY/SELL points

BUY – when low optimism, <25% for both Long Term & Medium Term

SELL – when share price > NAV or Optimism >75%

1 of the 10 case studies mentioned in this charity course: Bursa giant stock, Selangor Properties Berhad (1783.KL) is acquired recently after the course notes is prepared, share price goes up by 40%. I am not surprised the remaining 9 case studies would be target of acquisition in future

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

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

Filed Under: Uncategorized Tagged: , ,

Save Lives with Charity Investment Course (中华医院)

Posted on November 26, 2017 Written by

Charity Investment Course

The Ein55 students have learned the Practical of PA (Personal Analysis) from Ein55 Charity Investment Course by James Hon, understanding the importance of systematic approach of trading plans and investing strategies.  Here are the 10 key elements learned in charity investment course:

  1. Skill Assessment – Tested system? Confidence?
  2. Mental Preparation – Are you emotionally and psychologically ready?
  3. Set Risk Level – This depends on your trading style and risk tolerance.
  4. Set Goals – What is your realistic profit targets and risk/reward ratios? How to stop loss?
  5. Do Your Homework – Before the market opens, what is going on around the world? Calm? Volatile?
  6. Trade Preparation – Set alerts for entry and exit signals!
  7. Set Exit Rules – Most traders concentrating 90% or more for buy signals, very little attention to when and where to exit.
  8. Set Entry Rules – Exits are far more important than entries!!!
  9. Keep Excellent Records – use your Journal!
  10. Perform a Post-Mortem – To know the why and how of your profit and losses. (Continuous Process Improvement)

Life is not just making money. To encourage successful Ein55 Graduates to help other needy groups, Dr Tee and Ein55 Mentor James Hon take the lead to donate to a charity organization, Singapore Chung Hwa Medical Institution (SCHMI, 中华医院), which has been helping the poor and needy Singaporeans over the past 50 years with free / subsidized medical services.

There are similarities in investment, charity donation and medical services:

1) Medical services help to save lives or improve the quality of lives with better health.  A good health is the fundamental of happy life for an individual.

2) Charity donation provides the practical help to the needy group with money. However, the help is limited, support could be stopped when there is no further donation from the society.

3) Investment is a sustainable way of generating the profits when applied in the right way. The additional incomes could help to support charity, including but not limited to donation to medical institution for needy people.

The needy group probably could only wait for fishes from others due to their limitation in ability or knowledge to make money.  However, majority of the people has the potential to learn to fish, generating consistent capital gains and passive incomes from investment.  More importantly, these fishes caught could be shared with other needy people.

Dr Tee provides free high-quality investment education regularly to the general public, which may be considered a form of donation in financial knowledge, which could help a person for a lifetime, after mastering the right skills of stock investment.

Start learning these life skills NOW, helping oneself, own family and other needy people in the society. Save Lives with skills learned from Charity Investment Course.

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

 

 

Filed Under: Personal Analysis Tagged: , ,

Summary of $90,000 Charity Courses for Tzu Chi (慈济) with High Dividend Stocks

Posted on October 22, 2017 Written by

Ein55 Newsletter No 076 - image - Charity - HDS

Dr Tee, Ein55 Mentor & Graduates have together organised 5 charity investment courses (REITs/Business Trusts in Nov 2015 and May 2017, High Dividend stocks in Mar 2016 and Oct 2017, and Discounted NAV stocks in Sep 2016) in the past 2 years, donating net income of around $90,500 to Tzu Chi 慈济 (Singapore). We hope to inspire more Ein55 Graduates to reach out the society, helping others who are in need.  More importantly, they have also learned the secrets of making money through investment. When more Ein55 Graduates are successful financially, they could also contribute back to the society to help more people in future.

Here are key learning points from the recent Charity Course on High Dividend Stocks:

1) Five Characteristics of High Dividend Yield Stocks

1.1) Mature Company that have already growth to sizable scale, meaning Equity > US$1B, Market Cap >US$1B, with stable Revenue >US$1B

1.2) Dividend pay-out ratio of at least 50% or more

1.3) Fundamentally remain strong and robust for many years to come because company have certain economy moat.

1.4) Low CAPEX business

1.5) Able to generate stable Free Cash Flow

 

2) Seven Myths about Dividend Investing

Myth:  Stock prices are adjusted downward when dividends are paid.

Truth: Stock prices are adjusted on XD date, not on dividend payment date.

 

Myth:   Dividend stocks are always safe

Truth:  A company can stop payout of dividend when business is declining, may not be always safe.

 

Myth:  Companies that pay dividends limit growth

Truth: The growth depends on business concept / innovation, leading to consistent profit and cash flow to pay for dividend. A company could have both dividend payment and high business growth at the same time.

 

Myth:  The highest yielding stocks are the best

Truth: It can be risky because high yield stocks could have weak business with falling share prices.

 

Myth:  Dividends are guaranteed upon company announcement

Truth:  Company can cancel the dividend payout even after announcement

 

Myth:  Investors should buy the cheapest dividend stocks

Truth:  Dividend investor intention is to have low risk investment, better pick up healthy dividend stock

 

Myth:  Dividend stocks are boring

Truth: Dividend stocks are still investment that could rise and drop at any time, requiring investors to pay close attention to monitor and follow up the stocks.  An investor should not feel boring when receiving consistent dividend payment to their bank accounts as passive incomes.

——————————————————————————— 

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

 

Filed Under: Fundamental Analysis, Stock Market, Value Investing Tagged:
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