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

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

3 Exit Strategies When Crisis Stock Becomes Profits (Tianjin Da Ren Tang)(丰收季节)

With strong recovery of China / Hong Kong stocks after ending of zero COVID policy and strong rebound of US technology stocks with consistently lower inflation rates, some giant stocks surge to new historical high in share prices.  This is a good problem to have for stock investor or trader when there are high capital gains (eg. more than 2 times).

Knowing What to Buy and When to Buy help to start the investing journey at the right time and right direction. However, knowing When to Sell (take profits) or How Long to Hold with alignment to own personality is the ultimate plan.

Let’s learn from Dr Tee on 3 Exit Strategies When a crisis stock becomes highly profitable (丰收季节). A recent Dr Tee Graduate success of a giant stock, Tianjin Pharmaceutical Da Ren Tang (SGX: T14 / China Shanghai: 600329) is applied as an example.

Congratulations to readers who may have taken action on Tianjin Da Ren Tang (strong fundamental China healthcare giant stock, dual listing in SGX and China) mentioned in Dr Tee articles on 2 Oct 2020 ($0.79 share price, Cyclic & Dividend investing), 31 Aug 2021 ($1.32 share price, Growth / Dividend investing) and 17 Feb 2023 ($1.30 share price, Growth / Momentum trading), as well as recent public webinar on 25 Mar 2023 ($1.39 share price, Momentum trading). Current share price (17 Apr 2023) is $2.26, exceeding the Ein55 intrinsic value of $1.50 mentioned, aiming for >$2.50 high Ein55 Optimism price with more greed recently.

Dr Tee graduates were assigned homework on this stock in May 2020 ($0.68 share price, low Ein55 Optimism level for Cyclic + Growth + Dividend + Undervalue investing, see chart below) and again in July 2021 ($1.20 share price), not only share price has climbed up with over 3X capital gains ($0.68 to $2.26), also enjoying an enormous dividend yield = (dividend / price) = ($0.17/$0.68) = 25%, after dividend payments have grown 4X over the 3 years, supported by strong earnings (>70% business is Traditional Chinese Medicine, remaining is western medicine, etc).

Unlike other business (eg. technology / glove) which may have huge earnings surge during the first 2 years of pandemic (then suffer when both earnings and share prices are corrected post pandemic as the high business growth is not sustainable), Tianjin Da Ren Tang has been consistent and sustainable in business growth before / during / post pandemic. With ending of zero COVID policy in China, Tianjin Da Ren Tang enjoys the free ride together to higher Ein55 Optimism level, exceeding intrinsic value (about $1.50) and driven by market greed recently towards high Ein55 Optimism >$2.50.

The stock formerly was named Tianjin Zhongxin, after change in major shareholder, later renamed to Tianjin Da Ren Tang, partly to reflect its true historical value for the past century (eg. comparable with the same TCM school of more famous Beijing Tong Ren Tang). Tianjin Da Ren Tang is relatively less well known to global investors (unlike other Top 10 largest TCM or healthcare stocks in China) which makes it significantly undervalue, especially for dual listed stock in SGX vs China (eg. on 4 Nov 2022, share price was US$1/share in SGX but RMB 28.26 / 6.87 = US$ 4.11), about 4X price difference in the past, but Tianjin Da Ren Tang in SGX catches up recently to narrow down the gap with China listed stock to (40.08 / 6.87) / 2.26 = 2.6 times on 17 Apr 2023. 

Even so, it is still over 2X difference between SGX and Shanghai listed stock, therefore there have been some speculations that SGX listed stock (about 1/3 total shares) may be acquired one day.  In fact, when there was a change in major shareholder a few years ago, due to regulation, a low-ball offer (less than US$1) was proposed but this was just for formality, “acquisition” was not successful. In fact, Tianjin shares in SG are mostly owned by retail investors, major shareholders (who own 2/3 shares in China) would need to buy up significantly (relative to 2.6X difference of China stock) if the stock may be acquired to delist one day.

By right, both 1/3 SGX stock and 2/3 China Shanghai stock should have close to 1:1 share price since stock value is the same.  Therefore, the earlier 4X undervalue of SGX listed of Tianjin Da Ren Tang has make it an excellent dividend stock, especially its dividend is doubled during recent announcement on 31 Mar 2023, together with 2X in earlier 2 years, total of 4X dividend growth in 4 years, resulting in an unbelievable 25% dividend yield for medium term investors who could take action 3 years ago ($0.68 in May 2020 for Dr Tee graduates).

While celebrating the success for Tianjin Da Ren Tang with 3X Capital Gains and 25% Dividend Yield, an investor or trader may worry when to exit.  If sell too early, one may regret as stock may goes up further to higher Ein55 Optimism level driven by greed and social media publicity. If sell too late, the rally may be over, corrected back to square one, less profitable.  Therefore, even making profits could be a headache, although it is a good problem to have.

Let’s apply 3 Exit Strategies of Dr Tee with LOFTP (Level / Optimism / Fundamental / Technical / Personal) Strategies to take profits. This is not limited to Tianjin Da Ren Tang (one has to make own decision aligning to own personality), may be applied to any giant stock with profits gained so far.

1) Contrarian Sell (Counter-trend)
Similar to “Buy Low” at Low Optimism with bearish prices, a contrarian investor may sell at High Optimism (eg. >$2.50 for Tianjin Da Ren Tang) with bullish uptrend prices (counter trend).  Contrarian is against the majority, eg Buy when others were fearful 3 years ago during pandemic and Sell when others are greedy one day (eg. current market).

However, this strategy requires to know where is Low or High (eg. need knowledge of Ein55 Optimism with intrinsic value of a stock), else Buy Low may get lower (worst may go bankrupt for a junk stock with weak business), Sell High may get higher (>2-10X). A useful finetuning strategy is selling progressively (eg. sell 10% share whenever price is up by 10%, selling 100% when it is up by 100% or 2X).  This is similar to an investor who “Average Down” (entry in batches) to Buy Low a few years ago.  The weakness of this method is potential profits could be limited with progressive sell, balanced by the benefits of multiple more predictable exit points.

A special smart strategy is to sell 50% shares whenever stock price is 2X (eg. Tianjin Da Ren Tang from $0.68 to $1.36, or from $1 to $2, exit price depending on entry prices X2). This way, the initial capital of an investor is recovered (assuming commission and dividends are neglected), this would give confidence to an investor to take higher risk to hold longer time for the remaining 50% shares, aiming for even higher prices as psychologically, the investor knows that one will not make a loss anymore when 50% profits are taken with 2X prices, even a company may go bankrupt in future.

Assuming there is a good problem to have, share price goes up by another 2X after selling 50%, then an investor may sell 50% of remaining 50% = 25% when share price is 4X (eg. Tianjin Da Ren Tang from $0.68 to $2.72). Continue to sell 50% each time on remaining shares if any stock may become rocket high next time (eg. buy IFAST stock last time during pandemic at $1, sell 50% when come to $2, sell 25% when come to $4, sell 12.25% when come to $8, only left 12.25% shares today, else IFAST stock is corrected to below $5 currently if buy & hold till today).


2) Follow-trend Sell
Many retail investors and traders are more suitable for trend-following trading, eg. Buy a stock (low or fair or high price) with support of stronger uptrend prices. Similarly, they feel “safer” or more comfortable to sell when trend is reversed from uptrend to downtrend.  This requires knowledge of share price reversal, eg. application of Technical Analysis, however one may regret after selling as the signal could be too fast, eg. taking 10% profits but stock may continue to go up over 2X, unless the traders continue to buy back again in future to follow the uptrend.

A more practical trend-following is to define own personality first, eg. short term, medium term or long term. This way, one may identify the right indicator to sell (aligned to earlier buy signal). A simple but smart strategy is to apply a trailing stop with X% correction during uptrend price, short term trader may sell when it corrects down by 5-10% one day (eg. Sell if Tianjin Da Ren Tang drops by 10% or around $0.22), medium term trader may wait for 10-20% (eg. Sell if Tianjin Da Ren Tang drops by 20% or around $0.44), long term investor may even able to tolerate >20-30% (acceptable since they have hold with over 2-3X capital gains). 

Alternatively, a trader may finetune with any systematic trading system (eg. moving averages crossover, MACD, stochastic, breakout of support/resistance, etc), daily, weekly or monthly, following own personality (buy & sell every few weeks, months or years).  Success trend-following is when the system matches own personality, else it would be a failure (eg. feeling of selling too early or too late).

Personality is usually ignored by investors / traders, especially for beginners, who simply busy looking for the “secret method” to make money in stocks. Ein55 Optimism has considered effects of personality in both Buy / Sell signals, integrating with LOFTP strategies.


3) No Sell (Hold)
In fact, the last exit option is not to exit at all, which may be holding for long term or lifetime, especially when business is intact, still growing consistently each year.  It means an investor may ignore the share prices volatility or even stock crisis, mainly monitoring the business performance (eg. earnings, revenue, cashflow and many other key fundamental indicators from 3 financial statements).

By the way, Tianjin Da Ren Tang is a very cyclic stock (eg. price could drop over 60% during past stock crisis, partly due to cyclic China and SG stock markets), may not be suitable for Buy and Hold strategy, unless it may evolve from cyclic to growth and dividend investing over time. With recent strong dividend growth (despite recent 2X dividend growth may not be sustainable as this is not supported by 2X earnings, only up by >10% earnings, share prices is mainly driven up due to large gap between SG and China listed stock, as well as market greed), it starts to evolve gradually.

For Buy & Hold long term or lifetime, an investor may need 10-20 giant stocks in a portfolio (eg. 50% dividend stocks + 50% growth stocks) for diversification. Stock price (usually cyclic) may not always reflect business fundamental (even it continues to grow).  If 25% dividend yield may be sustainable (may not be unless Tianjin Da Ren Tang continues to grow >10% in earnings each year), then an investor has an option to hold a stock as it only takes 4 years of dividend x 25% yearly to recover the initial capital with holding of stocks.  Current dividend yield for Tianjin Da Ren Tang is 8% (still high relative to other dividend stocks) based on current share price >$2.

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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

Contrarian Investing for Singapore and Hong Kong Giant Dividend Stocks (独孤求败)

Contrarian investing is a unique stock strategy (eg. Buy Low Sell High) which goes against the majority or popular views as usually the big winner in an emotional stock market is minority. However, there are both hidden risks and opportunities of this strategy if not aligned properly with own personality, “honey” may become “poison” for an investor.

Let’s learn the 6 key factors of contrarian investing from Dr Tee, then applying in 2 Singapore and Hong Kong dividend giant stocks:
1) Singapore Dividend Giant Stock: Hongkong Land (SGX: H78)
2) Hong Kong Dividend Giant Reit: Link Reit (HKEX: 0823)

The best example of contrarian investor is probably Warren Buffett who believes in “Be Greedy when others are Fearful. Be Fearful when others are Greedy” (独孤求败). He has practiced this method for decades to “Buy Low Sell High” or “Buy Fair price and Hold”, proven to work for him. However, knowing does not mean the same strategy may be suitable for you.

Here are 6 key factors for contrarian investing to work:
1) Value of a company should come first before considering to buy at lower price with contrarian investing of any stock. In order to minimize the chances of “Buy Low get Lower”, a strong defensive and growing business with wide moat should be the core pillar, not just based on price alone.

2) Contrarian investing is more suitable for mid term and long term investor. As Warren Buffett said, “Stock behaves like a weighing machine in longer term”, meaning price eventually follows strength of business fundamental while “stock is like a voting machine in shorter term” (emotional prices regardless of business). It is possible (although rare) for short term investor to apply contrarian trading but this is mainly for those traders who are willing to integrate trading with long term investing, eg. when buying at 10% dip (near intermediate price support), willing to hold longer term if share price could not recover in short term with over 10% gains.

3) Timing of entry/exit for contrarian investors is usually against the majority (mass market, usually following price trends). For example, when a stock is bearish in share price (while business is intact), a contrarian investor would start to plan for entry. However, Buy Low may get lower (even for stocks with strong businesses) in a bearish market, therefore a contrarian investor may consider “Average Down” strategy, eg. entry with batches (5 x 20%) or (2 x 50%), etc. When Dr Tee Optimism strategies (Long Term / Mid Term) could be integrated, the positioning would be more systematic. Alternatively, a contrarian investor may wait for the bearish (downtrend) price to at least go sideways (eg. buying near or above strong price support) if not willing to wait for stronger price reversal to uptrend (trend-follower).

4) Alignment with Level Analysis, eg. Level 2 (Sector), Level 3 (Country) and Level 4 (World), is crucial for Contrarian Investor, eg. Buy Low during low Optimism (<25%) with Global Financial Crisis, Sell High during high Optimism (>75%) with historical best economic and stock performances. With such alignment, usually law makers of each country may provide additional support (eg. QE or printing money) during financial crisis, easier for stock to recover. Similarly, a government may cool down the stock market when economy is overheated, especially with high inflation (eg. interest rate hike).

5) Dividend giant stocks would help a contrarian investor to generate passive incomes (eg. >5-10+% dividend yield) during the difficulty time. Eg. over the past 1 year of global tech stocks correction, when growth stocks do not grow in share prices, an investor may suffer capital loss (if holding growth stocks with 0 dividend) or zero / little return (if holding cash).

6) Regardless how confident is an investor on any stock or business (including giant stock), there are always potential unsystematic risks which could be beyond the control, although it may be rare but it is never zero risk. Therefore, it is prudent to diversify over 10-20 giant stocks as a portfolio or through a giant index ETF. Even when a stock may fall to $0 or business goes bankrupt, the potential maximum capital loss of portfolio is limited to only 5-10%. Eg. if there is a portfolio of 20 dividend giant stocks with 5% dividend yield, it could generate $5 from every $100 investment yearly, therefore even if 1/20 stock may disappear ($5 loss) under very rare condition, the dividend yield ($5) could be sufficient to balance the risk of holding in long term.

Similarly, a contrarian investor would also Sell in an overheated stock market with over 75% Optimism while most trend-following traders would think this is the best time for trading. So, whether contrarian investing is “honey” (eg. Buy Low Sell High) or “poison” (eg. Buy Low Get Lower), it depends on how much integration of 6 factors above to own unique personality (eg. short term / medium term / long term). There is no best strategy in the world for stock investing but one has to find the most suitable one for own personality (eg. contrarian vs trend-following, long term investing vs short term trading, fundamental vs technical, etc).

Let’s apply contrarian investing on these 2 Singapore and Hong Kong dividend giant stocks:


1) Singapore Dividend Giant Stock: Hongkong Land (SGX: H78)

Hongkong Land has nearly 100 years of business record in property market, part of Jardine Group with about 200 years of history in China. Due to slowing Hong Kong economy and property market (especially during last 3 years of pandemic), Hongkong land share price has dropped by half over the past 5-7 years from peak price of $8+ to low prices of about $4+.

The share prices have even dropped below $4 during 2020 and 2022, the 2 worse times of pandemic in Hong Kong / China, recovering and supporting above $4 resistance (becoming support currently). A contrarian investor may consider Hongkong Land stock below $5, averaging down if needed if falling to $4.50, $4 or below. Assuming the stock may go bearish or sideways, an investor may collect about 5% dividend yield currently (higher yield if share price bought is lower), higher than Singapore Savings Bond of 3% interest (purely passive income, no potential capital gain).

More importantly, Hongkong Land has 2/3 investment properties (mostly collecting rental in Hong Kong / Singapore / China, behaving like a Reit with strong rental business) and 1/3 development properties (mostly in China, having a mega project with $4 Billions investment in West Bund of Shanghai). China / HK has ended zero COVID policy, Hongkong Land business is expected to recover strongly (especially for development projects in China) with this Level 3 (country) alignment of policy.

Hongkong Land is still at low Ein55 Optimism (<25%) but recovering well from correction in China pandemic 2022, aiming for Ein55 intrinsic value of about $8+/share or over $10/share when market emotion may be greedy again. The stock is well balanced, could be suitable for dividend investing (Buy & Hold for dividend), growth investing (Buy & Hold for capital gains), cyclic investing (Buy Low Sell High) but not for trading (downtrend for short term). Hongkong Land is not a Reit but having the stability as a Reit with strong business (value), therefore may be considered for contrarian investing by some investors.

For investors with limited capital, not able to diversify over 10-20 dividend giant stocks, Singapore STI index has 30 stocks (including Hongkong Land) with 4% dividend yield, may be considered for contrarian investing but not ideal at current near fair price (40+% Optimism), may need to wait till the next Global Financial Crisis to buy STI at low.


2) Hong Kong Dividend Giant Reit: Link Reit (HKEX: 0823)

Link Reit is the largest reit in Asia and Hong Kong. It has rental business in Hong Kong, China and overseas including Singapore (recently 5% portfolio with acquisition of Jurong Point and partial Thomson Plaza). Most of the properties (including carpark business) are defensive in nature with over 10% rental reversion (critical for dividend growth over time). Due to slowing Hong Kong economy and property market (especially during last 3 years of pandemic), Link Reit share price has dropped by half over the past few years from peak price of $80+ to low prices of about $40+.

The share prices have even dropped below $40 during 2022, second major wave of pandemic in Hong Kong / China, then recovering and supporting above $60 resistance (becoming support). However, recent rights issue has corrected the share price further with over 10% below TERP (theoretical ex-rights price) of $59.70. Rights issue is a positive move the raise fund for overseas expansion but it is viewed negatively by the market (some retail investors may not like to top up extra money to invest in stocks). A contrarian investor may consider Link Reit below $60 (considering rights as a gift with extra 30% discount while value or business remains intact), averaging down if needed if falling to $50, $40 or below. Assuming the stock may go bearish or sideways, an investor may collect about 5.7% dividend yield currently (higher yield if share price bought is lower).

The latest rights issue is considered Ver 3.0 expansion for Link Reit to global market (mainly asia pacific including Australia, Singapore, etc), in addition to Ver 1.0 expansion (locally in Hong Kong) and Ver 2.0 expansion (China). Each version of plan is about a decade plan, critical for Link Reit to remain competitive and growing in a sustainable way. The portfolio can be expanded further with more yield accretive assets globally, allowing dividend yield of entire Reit portfolio to grow further. However, it takes time for both business growth (Version 3.0) and share price growth.

Link Reit is still at low Ein55 Optimism (<25%) but recovering well from correction in China pandemic 2022 (but suffering from “normal” market fear of rights issues), aiming for Ein55 intrinsic value of about $100/share or over $120/share when market emotion may be greedy again. The stock is well balanced, may be suitable for dividend investing (Buy & Hold for dividend), growth investing (Buy & Hold for capital gains), cyclic investing (Buy Low Sell High) but not for trading (downtrend for short term).

For investors with limited capital, not able to diversify over 10-20 dividend giant stocks, Hong Kong HSI (Hang Seng index) has over 60 stocks (including Link Reit) with 3% dividend yield, may also be considered for contrarian investing as Optimism is also low (<25%), aligning with Link Reit.

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

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

Latest 30 STI index Stocks Strategies (卧虎藏龙)

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

In this article, you will learn from Dr Tee on the Latest 30 STI Index Stocks Strategies, some may be considered for longer term investing and / or short term trading with COVID-19 recovery stock rally. Bonus for readers who could read every words of the entire article, learning unique strategy to position in 30 STI Index stocks for both passive incomes (dividend) and capital gains with potential share price appreciation. Both Ein55 Optimism levels and intrinsic values will be shared for 6 groups of STI stocks with potential. Learn key applications of ALL 30 STI stocks with 1 article here:

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

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

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

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

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

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

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

The best time to buy 30 STI stocks or index ETF is always during global stock crisis (eg. Year 2020-2021 during pandemic, 2008—2009 during subprime crisis, etc), not only able to maximize the dividend yield (due to lower entry share price), also could have higher potential of capital gains (when market cycle moves from fear in low optimism to greed in high optimism). STI Index stocks investing is not for dividend collection alone, may be integrated with growth investing, swing trading, momentum trading, cyclic investing, defensive investing, undervalue investing and other Ein55 strategies.

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

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

However, not all the 30 STI index stocks listed are giant stocks. A growing business in the past may not be sustainable during COVID-19 period, could end up as a crisis stock. Fundamental Analysis alone is not sufficient, a high dividend yield stock may be a value trap as this may be the result of lower share price with weakening businesses. Therefore, deeper analysis is required with LOFTP (Level, Optimism, Fundamental, Technical, Personal Analysis) Strategies. 

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

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

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

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

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

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

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

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


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

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

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

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

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

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


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

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

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

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

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

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

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

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


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

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

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

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

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

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


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

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

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

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

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

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

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

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


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

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

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

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

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

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

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

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

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

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

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

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

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

Zoom will be started 30 min before event, bonus talk (Q&A on any investment topics from readers) for early birds. There are many topics we will cover in this 4hr webinar, Dr Tee can have more time for Q&A if you could stay later after the webinar, you could ask on any global and local stocks including but not limited to 30 STI component stocks:

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

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

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

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

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

In this article, you will learn from Dr Tee on Top 100 Singapore and Global Bank Stocks to profit in current stock market, some may be considered for longer term investing and / or short term trading with COVID-19 recovery stock rally. Bonus for readers who could read every words of the entire article, learning unique strategy to position in 10 global giant bank stocks for both passive incomes (dividend) and capital gains with potential share price appreciation. Both Ein55 Optimism levels and intrinsic values will be shared for each giant stock:

1) Singapore Giant Bank Stocks:

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

2) Malaysia Giant Bank Stocks:

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

3) Hong Kong / China Giant Bank Stocks:

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

4) US Giant Bank Stocks:

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

During the COVID-19 stock recovery, there is a sector rotation with slower or even declining trend for global growth stocks. Investors start to pay more attention to cyclical stocks, especially for global giant bank stocks suffering with share prices in lower optimism, recovering together with pandemic, profiting in both capital gains (appreciation in share prices) and passive incomes (consistent dividend payments).

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

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

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

However, not all the Top 100 global bank stocks listed are suitable for investing and/or trading. A growing business in the past may not be sustainable during COVID-19 period, could end up as a crisis stock. Fundamental Analysis alone is not sufficient, a stock with low optimism price may be a value trap as this may be the result of weakening businesses. Therefore, deeper analysis is required with LOFTP (Level, Optimism, Fundamental, Technical, Personal Analysis) Strategies. 

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

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

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

1) Singapore Giant Bank Stocks:

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

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

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

Currently, DBS Bank share price is at moderate high optimism of 60+% Ein55 Optimism level, over intrinsic value of $22.  Therefore, DBS is more suitable for shorter term trading (Buy Low Sell High / Buy High Sell Higher). For trading, it is crucial to have S.E.T. (Stop Loss / Entry / Target Prices) in trading plan. For example, if the prices fall back below the support (was resistance) of $27, then a short term trader may need to exit, even with losses, if breakout strategy is the main assumption for trading strategy.

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

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

2) Malaysia Giant Bank Stocks:

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

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

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

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

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

3) Hong Kong / China Giant Bank Stocks:

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

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

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

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

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

4) US Giant Bank Stocks:

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

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

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

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

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

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

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

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

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

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

Zoom will be started 30 min before event, bonus talk (Q&A on any investment topics from readers) for early birds. There are many topics we will cover in this 4hr webinar, Dr Tee can have more time for Q&A if you could stay later after the webinar, you could ask on any global and local stocks including but not limited to 30 STI component stocks:

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

Zoom will be started 30 min before event, bonus talk (Q&A on any investment topics from readers) for early birds. There are many topics we will cover in this 4hr webinar, Dr Tee can have more time for Q&A if you could stay later after the webinar, you could ask on any global and local stocks including but not limited to 30 STI component stocks:

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

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

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

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

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

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

View Dr Tee Video (Life Changing 20 Minutes):

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

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

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

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

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

Zoom will be started 30 min before event, bonus talk (Q&A on any investment topics from readers) for early birds. There are many topics we will cover in this 4hr webinar, Dr Tee can have more time for Q&A if you could stay later after the webinar, you could ask on any global and local stocks including but not limited to 30 STI component stocks:

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

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

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

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7 Singapore Growth Stocks for 2021 Year of Bull (牛气冲天)

Singapore Growth Stocks

Global stock markets are bullish in Year of Bull 2021, even Singapore STI Index is above 3000 points again after 1 year of COVID-19 stock crisis. New US President, Joe Biden, is printing more money with QE, an easy way for stock market to surge with quicker recovery of economy. For investors who may miss the lower entry points last year, may consider long term growth stock investing or short term momentum trading strategies to ride the bullish wave of growth stocks with recovery of pandemic after global vaccination.

In this Dr Tee 2.5-hr video education (7 Growth Stocks for 2021 Year of Bull), you will learn Market Outlook 2021 for Singapore and Malaysia with 7 growth and momentum giant stocks recovering in 7 sectors during pandemic, having high upside potential:
1) Singapore Exchange (SGX: S68) – Finance Growth Stock
2) Thai Beverage (SGX: Y92) – F&B Growth Stock
3) Vicom Limited (SGX: WJP) – Transportation Growth Stock
4) Parkwaylife REIT (SGX: C2PU) – REIT Growth Stock
5) Raffles Medical Group (SGX: BSL) – Healthcare Growth Stock
6) Micro-Mechanics Holdings (SGX: 5DD) – Technology Momentum Stock
7) Cortina Holdings (SGX: C41) – Consumer Discretionary Momentum Stock

Here is Dr Tee Free 2.5-hr Video Course (suitable for bilingual learners: verbal presentation in Chinese, written notes in English, technical charts for everyone). Enjoy and give your comments for improvement. You may subscribe to Dr Tee Youtube channel (Ein Tee) for future Dr Tee video talks.

Dr Tee Video Course: https://youtu.be/YPVBC5rDQqg

在这Dr Tee 2.5小时教育视频(2021牛气冲天的7只成长股),您可学习:
1) 新加坡交易所 (SGX: S68) – 金融成长股
2) 泰国酿酒 (SGX: Y92) – 餐饮成长股
3) 维康 (SGX: WJP) – 交通成长股
4) 百汇生命 (SGX: C2PU) – 房地产信托成长股
5) 莱佛士医疗 (SGX: BSL) – 医疗成长股
6) 微机械 (SGX: 5DD) – 科技动量股
7) 高登 (SGX: C41) – 非必需消费品动量股

这儿是 Dr Tee 免费2.5小时华语课程 (适合双语学员:华语表达,英语讲义,图表皆通)。请欣赏鄙作,留言求进步。您可订阅 Dr Tee Youtube 频道(Ein Tee),链接未来投资视频。

Dr Tee 华语视频: https://youtu.be/YPVBC5rDQqg

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Here are 7 groups of related Singapore stocks in 7 sectors but a smart investor should only focus on giant stocks.

1) Banking & Finance Sector is more cyclical in nature, following economy cycles, worst time is over, could benefit from recovery of pandemic. There are 30 Banking & Finance Stocks in Singapore including Singapore Exchange (Giant Stock):

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

2) Food & Beverages Sector is more defensive in nature, affected mainly during early stage of COVID-19 during circuit breaker, could benefit from recovery of pandemic. There are 48 F&B Stocks in Singapore including Thai Beverage (Giant Stock):

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

3) Transportation Sector has been in serious crisis during COVID-19 due to social distancing, need more time than other sectors to recover from pandemic. There are 24 Transportation Stocks in Singapore including Vicom (Giant Stock):

Baker Technology (SGX: BTP), CH Offshore (SGX: C13), COSCO Shipping International Singpore (SGX: F83), Chuan Hup Holdings (SGX: C33), ComfortDelGro Corporation (SGX: C52), Ezra Holdings (SGX: 5DN), First Ship Lease Trust (SGX: D8DU), Grand Banks Yachts (SGX: G50), Jardine Cycle & Carriage (SGX: C07), Keppel Corporation (SGX: BN4), MS Holdings (SGX: 40U), MTQ Corporation (SGX: M05), Pan-United Corporation (SGX: P52), Penguin International (SGX: BTM), SBS Transit (SGX: S61), Singapore Airlines (SGX: C6L), Samudera Shipping Line (SGX: S56), Sembcorp Marine (SGX: S51), Seroja Investments (SGX: IW5), Singapore Shipping Corporation (SGX: S19), Tan Chong International (SGX: T15), VICOM Limited (SGX: WJP), Vibrant Group (SGX: BIP).

4) REIT Sector is more defensive than other sectors, rental income is not much affected by COVID-19, could benefit from recovery of pandemic. There are 52 REITs and Business Trusts Stocks in Singapore including Parkwaylife REIT (Giant Stock):

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

5) Healthcare Sector has different responses to COVID-19 (benefited or affected), both could benefit from recovery of pandemic but stock performance would vary. There are 37 Healthcare Stocks in Singapore including Raffles Medical (Giant Stock):

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

6) Technology Sector has benefited from COVID-19, especially for online related stocks, future stock market responses would vary, depending on type of technology. There are 88 Technology Stocks in Singapore including Micro-Mechanics (Giant Stock):

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

7) Consumer Sector has different responses in COVID-19 crisis, Consumer Staple Sector benefited in early stage of COVID-19 while Consumer Discretionary Sector has more potential in recovery stage of pandemic. There are 40 Consumer Stocks in Singapore including Cortina (Giant Stock):

Aspial Corporation (SGX: A30), BHG Retail Reit (SGX: BMGU), Camsing Healthcare (SGX: BAC), CapitaLand Retail China Trust (SGX: AU8U), Challenger Technologies (SGX: 573), China Sports (SGX: FQ8), Choo Chiang Holdings (SGX: 42E), Cortina Holdings (SGX: C41), Dairy Farm International Holdings (SGX: D01), Duty Free International (SGX: 5SO), Epicentre Holdings (SGX: 5MQ), EuroSports Global (SGX: 5G1), FJ Benjamin Holdings (SGX: F10), Gallant Venture (SGX: 5IG), Hafary Holdings (SGX: 5VS), Hatten Land (SGX: PH0), Isetan Singapore (SGX: I15), Jardine Cycle & Carriage (SGX: C07), Jardine Strategic Holdings (SGX: J37), Koda Limited (SGX: BJZ), Koufu Group (SGX: VL6), LifeBrandz Limited (SGX: 1D3), Lorenzo International (SGX: 5IE), Mercurius Capital Investment (SGX: 5RF).

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

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

Zoom will be started 30 min before event, bonus talk (Q&A on any investment topics from readers) for early birds. There are many topics we will cover in this 4hr webinar, Dr Tee can have more time for Q&A if you could stay later after the webinar, you could ask on any global and local stocks including but not limited to 30 STI component stocks:

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

Zoom will be started 30 min before event, bonus talk (Q&A on any investment topics from readers) for early birds. There are many topics we will cover in this 4hr webinar, Dr Tee can have more time for Q&A if you could stay later after the webinar, you could ask on any global and local stocks including but not limited to 30 STI component stocks:

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

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

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

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

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

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

1) Supermarket F&B Stocks

– Sheng Siong (SGX: OV8)

– Dairy Farm International (SGX: D01)

2) Restaurant F&B Stocks

– Japan Foods Holding (SGX: 5OI)

– Old Chang Kee (SGX: 5ML)

3) Consumer F&B Stocks

– QAF (SGX: Q01)

– Thai Beverage (SGX: Y92)

4) Mixed Industry F&B Stocks

– Amara Holdings (SGX: A34)

– SATS (SGX: S58)

– Wilmar International (SGX: F34)

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

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

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

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

NoStock NameCodePB = Price /NAVROE (%)
1ABR Holdings (SGX: 533)5331.462.1
2Abterra (SGX: L5I)L5I2.81
3Acma (SGX: AYV)AYV0.31
4Amara Holdings (SGX: A34)A340.517.0
5Bonvests Holdings (SGX: B28)B280.390.4
6ChasWood Resources (SGX: 5TW)5TW-0.11
7China Fishery (SGX: B0Z)B0Z0.155.1
8China Kangda Food (SGX: P74)P740.120.7
9Dairy Farm International (SGX: D01)D014.7826.8
10Del Monte Pacific (SGX: D03)D030.36
11Delfi (SGX: P34)P341.4112.4
12Dukang (SGX: BKV)BKV0.04
13Envictus (SGX: BQD)BQD0.32
14Food Empire Holdings (SGX: F03)F031.1112.6
15Fraser and Neave F&N (SGX: F99)F990.605.2
16Hosen Group (SGX: 5EV)5EV0.48
17Japan Foods Holding (SGX: 5OI)5OI1.973.2
18Japfa (SGX: UD2)UD20.8713.6
19JB Foods (SGX: BEW)BEW0.8118.5
20Jumbo Group (SGX: 42R)42R3.1917.0
21Katrina Group (SGX: 1A0)1A010.80
22Khong Guan (SGX: K03)K030.62
23Kimly (SGX: 1D0)1D03.2822.8
24Koufu (SGX: VL6)VL63.8127.1
25Luzhou Bio-Chem (SGX: L46)L46-0.75
26Mewah International (SGX: MV4)MV40.472.2
27Neo (SGX: 5UJ)5UJ1.8115.2
28No Signboard Holdings (SGX: 1G6)1G61.34
29Old Chang Kee (SGX: 5ML)5ML3.153.2
30OneApex (SGX: 5SY)5SY1.16
31Pacific Andes (SGX: P11)P110.098.5
32Pavillon (SGX: 596)5960.251.1
33QAF (SGX: Q01)Q011.065.4
34Sakae (SGX: 5DO)5DO0.17
35SATS (SGX: S58)S582.0110.4
36Sheng Siong (SGX: OV8)OV86.3924.176
37Shopper360 (SGX: 1F0)1F00.61445.642
38Sino Grandness (SGX: T4B)T4B0.046.4
39Soup Restaurant (SGX: 5KI)5KI2.927.692
40ST Group Food (SGX: DRX)DRX1.1315.6
41SunMoon Food (SGX: AAJ)AAJ4.55
42Thai Beverage (SGX: Y92)Y922.5820.087
43Tung Lok Restaurants (SGX: 540)5402.63
44United Food (SGX: AZR)AZR0.13
45Wilmar International (SGX: F34)F341.017.716
46Yamada Green Resources (SGX: BJV)BJV0.992.253
47Yeo Hiap Seng (SGX: Y03)Y030.752.873
48Zhongxin Fruit (SGX: 5EG)5EG1.013.926

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

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

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

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

1) Supermarket F&B Stocks

Sheng Siong (SGX: OV8)

Dairy Farm International (SGX: D01)

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

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

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

2) Restaurant F&B Stocks

Japan Foods Holding (SGX: 5OI)

Old Chang Kee (SGX: 5ML)

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

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

3) Consumer F&B Stocks

QAF (SGX: Q01)

Thai Beverage (SGX: Y92)

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

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

4) Mixed Industry F&B Stocks

Amara Holdings (SGX: A34)

SATS (SGX: S58)

Wilmar International (SGX: F34)

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

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

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

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

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

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

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

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

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

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

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

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

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

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