technology stock Archives

Trading Strategies for 4 Stages of Technology Stock Bubbles (趁势追击)

Posted on August 16, 2023 Written by Dr Tee (Ein55)

Many investors and traders like US technology stocks which could move up and down like a roller coaster with high potential gains in a shorter time. Similar to driving a car, despite there are many potential risks, a trained driver or stock trader could adopt best practices with experience for a smooth ride.

In general, there are 4 stages of technology stocks bubbles (see image above):
Stage 1
The first peak when technology stocks achieve high Ein55 Optimism > 75%, eg. during Year 2000 dotcom bubble and Year 2021 COVID online bubble.

Technology sector may not go through the entire 4 stages of bubbles. For example, for Year 2000 dotcom bubble, stock market crashed after Stage 1. For Stage 1, similar to surfing with a strong wave, trend-following position trading strategy with S.E.T. (Stop Loss / Entry / Target Prices) plan is key, buying with uptrend (eg. higher low higher high, breaking above critical resistance), sell / short selling with downtrend (eg. lower high lower low, breaking below critical support).

Stage 2
If it is a correction (eg. high inflation and interest rate hike in Year 2022), technology stocks would start to recover, eg Year 2023 has been recovering well with AI as the main driver.

Stage 2 has weaker trend than Stage 1, focusing more on recovery wave, usually stock prices need to break above certain patterns (eg. resistance of a double bottom neckline, etc) to sustain its recovery. Short term to mid term cyclic trading may be considered. If Stage 2 could not exceed the last high of Stage 1, then it may form a risky pattern (eg. Head & Shoulders, etc), therefore it is safer to trader than to invest in technology stocks with higher optimism level.

Stage 3
It is possible (although seldom) for technology stocks to achieve another new high than the peak of Stage 1 bubble. If inflation could fall down consistently below 3% while global economy is intact, US technology stocks may continue to recover. However, it may take time, especially No 2 economy, China is getting weaker, would affect global / US economy indirectly. Inflation may be stagnant around 3% +/- 1% for mid term until an economic crisis, only then it may fall down further.

Strategy for Stage 3 is focusing on shorter term trading with positioning sizing, leveraging on market momentum to trade uptrend.

Stage 4
This is the ultimate bubble (may or may not come), much higher peak than Stage 1 with high Ein55 Optimism >75%, mainly driven by stock market greed. The strategy is similar to Stage 1 but closer monitoring (daily) is required.

Besides uptrend trading, an experienced trader may also consider to short sell the market when it is falling down below critical support from high optimism level, potentially gaining from the crash of stock market which may be induced by the next black swan.

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Technology giant stocks are mostly major component stocks of indices, therefore the movement of NASDAQ index (mostly technology stocks, popular ETF is QQQ, 3X of Nasdaq) is also aligned with S&P500 index (500 largest US stocks, popular ETF is SPY). When market is bearish, there are also inverse ETFs for traders who don’t know how to short sell but more suitable for shorter term trading.

In additional to indices, a trader may also consider technology giant stocks, eg. leader (world largest company) is Apple (Nasdaq: AAPL), already passing Stages 1 & 2, approaching Stage 3 (but fail to create new resistance above $200).

The current bull run for technology stocks is still intact. However, during each correction, a trader may need to exit first, reenter when trend is reversed to uptrend or when a new high is created.

At the same time, for longer term investors who have invested in technology giant stocks or indices (eg. S&P500 or Nasdaq), may also consider to switch to short term investing (choosing stocks like an investor, buy/sell like a trader) during uncertain high optimism level, no need to take any major risk against potential black swans (eg. China economy slowdown, escalation of Russian-Ukraine war, etc) which stock market may fall more than 50% when the bubble is burst.

In summary, a smart investor or trader would leverage on technology stock bubbles (Stages 1-4) but adjusting the strategy accordingly (eg. shorter term trading with higher optimism level). Stock bubble could be the best friend for trader (trend-following trading with greed) and investor (crisis investing after the market crash with fear).

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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.

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.

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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:

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8 AI Technology Stocks for Momentum Trading and Growth Investing (以智取胜)

Posted on July 14, 2023 Written by Dr Tee (Ein55)

After major correction of technology stocks in Year 2022, the technology sector recovers strongly in 2023 with the support of Artificial Intelligence (AI), initiated by popularity of ChatGPT, following by the healthy competitions and future AI plans of many technology giant stocks, pushing up the stock prices of technology stocks and even entire US stock indices (S&P500 and Nasdaq), nearer to the last peak in late 2021.

As mentioned in earlier Dr Tee articles, Golden Cross of inflation (now 3%) below interest rate (now 5%) help to support recovery of technology stocks which are sensitive to interest rate (likely will reach its peak soon). Since stock market is usually 6-12 months ahead of economy and businesses, a smart investor may take calculated risk with early actions (eg. big winner for those who took actions 6 months ago on technology stocks when inflation starts to fall from its peak).

Investing and trading in stocks may also apply AI (eg. following certain rules) but key difference is to personalize the strategies, eg holding for short term (momentum trading), mid term (cyclic trading) or long term (growth investing).

Dr Tee has shortlisted 8 AI stocks with potential for trading and investing, each stock requires unique positioning due to different types of LOFTP (Level / Optimism / Fundamental / Technical / Personal Analysis):

1) Nvidia (Nasdaq: NVDA)
Nvidia is a bigger winner in AI game as development generative AI requires strong demand of GPU chips, which is dominated by Nvidia. It projects significant increase in near future revenue which supports the share price to break above last high of $335 in Year 2021, exceeding by 50% to $460 so far.

Even before recent AI stock rally, Nvidia already has sustainable strong business fundamental. However, due to stock price is far above fair value with high Ein55 Optimism, it is more suitable for short term momentum trading, following the uptrend prices (eg. entering when breaking a new high, but it is crucial to set stoploss when price trend is reversed more than risk tolerance level).

2) Microsoft (Nasdaq: MSFT)
Microsoft is another direct AI winner because it is major investor for ChatGPT, even incorporating into BING search engine (challenging Google Search) and Windows 11 platform with Microsoft Office products. As a result, Microsoft share price has recovered back to its 2021 peak of $344, may achieve another new historical high if AI momentum continues.

Microsoft is veteran technology giant stock with over 50 years history since 1970s (comparable with Apple), products are diversified beyond traditional PC into cloud and gaming, etc. Strong business fundamental but it has price exceeding fair value with high Ein55 Optimism, more suitable for mid term cyclic investing (Buy Low Sell High) or short term momentum trading (Buy High Sell Higher).

3) Alphabet / Google (Nasdaq: GOOGL/GOOG)
Alphabet has been early AI developer (eg. DeepMind with AlphaGo could win human No 1 Go player in the world) but slow in commercializing the AI products, still focusing more on Google search engine which 85% market share (compared with BING only has 8%) for advertisement revenue (Youtube contributes to about 10% of Alphabet revenue). ChatGPT quick success has helped Google to introduce comparable BARD chat quickly to supplement Google search. It is not too late for BARD to catch up because they have strong foundation in development with wide Google network as potential customers, just need to focus on marketing and commercialization in future, helping to retain or grow the online advertisement revenue.

Relative to other technology / AI giant stocks, Alphabet / Google is relatively slow in stock price recovery (still below its peak of $150 in Year 2021), current price of $124 is near to its fair value, therefore still possible to be considered for long term investor for growth investing (Buy fair price and Hold). At the same time, Alphabet / Google may also be suitable for mid term cyclic investing (Buy Low Sell High) or short term momentum trading (Buy High Sell Higher). It is a rare giant stock which may be considered for both long term investors and short/mid term traders. However, since few technology giant stocks could last for decades, it is crucial to monitor its technology advantages over competitors (eg. ChatGPT vs BARD, Google vs BING, etc) for long term investors.

4) Meta / Facebook (Nasdaq: META)
Meta share price was seriously corrected in Year 2022 from about $380 to $90, partly due to venture into unprofitable Metaverse and headwind of technology sector then. Meta is early winner for technology stock recovery in 2023 (another is Netflix), growing with very strong momentum (comparable with Nvidia and Microsoft performances), current price of $313 is still below its 2021 peak of $380.

Even without AI (new plan) or Metaverse (old plan), advertisement revenue for existing Facebook and Instagram could already support and grow the business. The new Threads app is a strong challenger to Twitter, could be future revenue generator, making its social media network even wider (a strong economic moat). Meta share price is still below its fair value of about $360, may be considered for long term growth investor and also short term momentum trader.

5) Amazon (Nasdaq: AMZN)
Amazon share price was halved in Year 2022 from about $187 to $85, partly due to high growth during pandemic is not sustainable during post pandemic, business also becomes cyclic, affecting share price stability. Amazon has cloud businesses, AI concept has helped to recover its share prices together with other technology giant stocks, current price of $134 is still below its 2021 peak of $187.

Amazon is a trillion-dollar market cap giant stock (after Apple and Microsoft, ahead of Google and Nvidia), business becomes more sustainable as pre-pandemic. Current share is still below fair value of about $200, therefore may be considered for long term growth investing, mid term cyclic trading or even short term momentum trading.

6) AMD (Nasdaq: AMD)
AMD share price dropped to 1/3 from about $155 to $55 in Year 2022 technology sector crisis, partly due to high growth of chips demand during pandemic is not sustainable during post pandemic, business even suffered losses in the last quarter. Over the last few decades of competition, AMD is stronger and larger than Intel, supporting AMD share price growing by 80 times over the past 10 years. Despite AMD AI chip is still behind leader Nvidia, its latest chips are widely used by cloud platforms (eg. Amazon). AMD price has recovered strongly, current price of $115 is still below its 2021 peak of $155.

AMD is a young technology giant stock which would benefit from future AI sector expansion. Current share is still below fair value of about $200, therefore may be considered for long term growth investing, mid term cyclic trading or even short term momentum trading.

7) TSMC (NYSE: TSM / Taiwan TPE: 2330)
TSMC share price was corrected by more than half from about $140 to $63 in Year 2022 technology sector crisis, partly due to high growth of chips demand during pandemic is not sustainable during post pandemic, but business remains profitable with more sustainable growth rate. TSMC is the world leader for high end chip manufacturing (eg. 3nm), far ahead of competitors Samsung and Intel. With help of Warren Buffett (despite he sold it eventually due to worry of geo-political crisis) and technology sector rally, TSMC price has recovered strongly, current price of $105 is still below its 2022 peak of $140.

Semiconductor sector is cyclic in nature, similar for TSMC share price, more suitable to Buy Low Sell High for cyclic investor. Current share price is higher than fair price of about $80, therefore more suitable for mid term cyclic investing (not long term due to higher Ein55 Optimism) or even short term trading (since momentum is relatively weaker, may consider to Buy Low Sell High with short term swing trading).

8) ASML (Nasdaq: ASML)
Semiconductor sector is very specialized and inter-dependent, eg. design by Nvidia, manufacturing by TSMC but leading equipment supplier is ASML, etc. ASML business and even share price performances are comparable to TSMC since both are closely related.

ASML share price was corrected by more than half from about $868 to $379 in Year 2022 technology sector crisis, partly due to high growth of chips demand during pandemic is not sustainable during post pandemic, but business remains profitable with more sustainable growth rate. ASML is the world leader for high end chip equipment (eg. lithography for 3nm), far ahead of other competitors. US/China trade war may affect its future business expansion in China due to new export ban for high tech semiconductor equipment. Together with technology sector rally, ASML price has doubled from valley, current price of $750 is getting nearer to its 2022 peak of $868.

Semiconductor sector is cyclic in nature, similar for ASML share price, more suitable to Buy Low Sell High for cyclic investor. Current share price is higher than fair price of about $470, therefore more suitable for mid term cyclic investing (not long term due to higher Ein55 Optimism) or even short term trading (since momentum is relatively weaker, may consider to Buy Low Sell High with short term swing trading).

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Filed Under: Macroeconomy, Market Cycle Investing, Market Optimism, Market Outlook, Technical Analysis Tagged: cyclic investing stock, growth stock, momentum stock, technology stock, US Stocks

Bullish Tech Stocks with Golden Cross of Inflation vs Interest Rate (黄金交叉)

Posted on June 15, 2023 Written by Dr Tee (Ein55)

US stock market is recovering gradually over the past 6 months with clearance of debt ceiling issue recently, greed is overtaking fear. In particular, US large-cap technology stocks have been bullish, supported by golden cross of inflation (4% currently) below interest rate (5.25% currently), confirming the declining trend of inflation from the peak of 9.1%.

Technology stocks are sensitive to interest rate hike (which is dependent on inflation), therefore the tech sector was severely corrected over 30-50% in Year 2022, seeing light at the end of tunnel 6 months ago when inflation starts to fall. The Fed has been using higher inflation rate (eg. 6-9%) as an excuse to increase interest rate but the fact is inflation is a lagging indicator which is CPI (Consumer Price Index) % change over the past 1 year. Monthly CPI has been slowing down, therefore yearly CPI change (i.e. inflation rate) is declining naturally, the trend likely will continue till Q3/2023 with inflation rate below 3%. With inflation at moderate level of 4%, The Fed decides to pause on interest rate hike (remain at 5.25%) but keeping options of 2 further hikes by end of this year when needed.

Consistent lower inflation provides an excellent mid-term trading opportunity, especially for large-cap US technology stocks, here are familiar companies (FANG-MAN):
F – Facebook / Meta (NASDAQ: Meta)
A – Amazon (Nasdaq: AMZN)
N – Netflix (Nasdaq: NFLX)
G – Google / Alphabet (Nasdaq: GOOGL / GOOG)
M – Microsoft (Nasdaq: MSFT)
A – Apple (Nasdaq: AAPL)
N – NVidia (Nasdaq: NVDA)

These 7 tech stocks contribute to over 25% of US S&P 500 Index, 5 of them are over $1 Trillion market (Apple, Microsoft, Amazon, Google, NVdia), even Apple alone (nearly $3 Trillions) is bigger than 30 STI component stocks combined. However, strong recovery of S&P 500 and Nasdaq indices may give a false impression that most stocks are doing well. In fact, many non-technology small / mid cap stocks are still relatively weak, these 7 FANG-MAN stocks have relatively bigger weightage, therefore investors / traders selectively buy up technology stocks, help to push up the index as a whole.

Alignment with the right sector and country (Level Analysis) is key for stock trading, therefore it is not surprise to see technology stocks with uptrend prices (higher highs, higher lows), ideal for trading or even investing. However, due to moderate higher Ein55 Optimism level, current stock market recovery (especially for technology stocks) is more suitable for short term / mid term trading. A smart investor may apply trend-following trading system to ride the trend but need to be careful when it enters high Ein55 Optimism level (eg. >75%) as any unexpected black swan could result in the next global financial crisis, knowing when to exit (take profits) is critical as the next move.

US economy currently is relatively strong with low unemployment rate (3.7% currently), weaker USD would help in financial reports for many S&P 500 companies with overseas businesses (when converting income to USD). So, average inflation level (2-4%) is healthy for a growing economy, too high results in overheated spending, too low ends up in lagging economy (eg. lost 3 decades in Japan). Based on similar experience of last high inflation in 1970-1980, there was upside potential of over 50% for US indices when inflation was declining from the peak. Stock market usually is 6-12 months ahead of economy or business fundamentals, therefore forward-looking views may be needed for success in trading.

There is information overflow each day with good/bad financial news, therefore each investor needs to have own independent thinking (not to blindly follow Dr Doom or Dr Boom), following an investing / trading strategy aligning with own personality (short term / mid term / long term / lifetime).

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Filed Under: Macroeconomy, Market Cycle Investing, Market Outlook, Uncategorized Tagged: inflation, technology stock, US Stocks

5 Singapore Semiconductor and 5G Giant Stocks

Posted on September 28, 2021 Written by Dr Tee (Ein55)

In this Dr Tee 1hr video education (5 Singapore Semiconductor and 5G Giant Stocks), you will learn:
1) Singapore Stock Market Outlook
2) Long Term Investing / Short Term Trading on 5 Singapore Semiconductor and 5G Giant Stocks:
– Valuetronics Holdings (SGX: BN2)
– AEM Holdings (SGX: AWX)
– Frencken Group (SGX: E28)
– UMS Holdings (SGX: 558)
– Micro-Mechanics Holdings (SGX: 5DD)

3) Bonus Stock Diagnosis and Audience Q&A
– Thai Beverage (SGX: Y92)

With super rally of 5G and semiconductor sector cycle, strong business earnings would help to support stock prices until the arrival of Dotcom or Technology Bubble Version 2.0. Investors need to learn to position in these giant stocks with investing or trading strategies, aligning with own unique personality.

Here is Dr Tee Free 1-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/gyF4poJhEMQ

在这Dr Tee 1小时教育视频（5只新加坡半导体牛股），您可学习：
1）新加坡股市展望。
2） 5只长期投资/短期交易的新加坡半导体强股
– 鸿通电子 Valuetronics Holdings (SGX: BN2)
– 永科控股 AEM Holdings (SGX: AWX)
– 福根集团 Frencken Group (SGX: E28)
– UMS Holdings (SGX: 558)
– 微机械 Micro-Mechanics Holdings (SGX: 5DD)

3）现场观众问答环节，新加坡强股分析
– 泰国酿酒 Thai Beverage (SGX: Y92)

半导体行业·进入超级周期，强劲业务表现将帮助扶持股价，直到科技股2.0泡沫有天来临。投资者需学习应用，符合本身性格的投资或交易策略。

这儿是 Dr Tee 免费1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/gyF4poJhEMQ

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

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Filed Under: Market Outlook, Stock Market Tagged: momentum stock, semiconductor stock, technology stock

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

Posted on February 18, 2021 Written by Dr Tee (Ein55)

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

In this article, you will learn from Dr Tee on 88 Growth Stocks in Singapore, some may be considered for longer term investing and / or short term trading with COVID-19 recovery stock rally. Bonus for readers who could read every words of the entire article, learning unique strategy to position in 6 giant growth stocks and also generalized strategy, applicable for all growth stocks including speculative growing Bitcoin.

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

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

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

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

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

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

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

From the table sorted below for 88 growth stocks in Singapore, each has growing businesses over the past few years with ROE (Return on Equity) over 5%. However, a growing business in the past may not be sustainable during COVID-19 period, could end up as a crisis stock. Fundamental Analysis alone is not sufficient, a growing business may not be a giant stock as share price could be undervalue (eg. IFAST over 1 year ago). Therefore, deeper analysis is required with LOFTP (Level, Optimism, Fundamental, Technical, Personal Analysis) Strategies.

No	Growth Stock	ROE (%)
1	AEM Holdings (SGX: AWX)	39.277 – 46.127
2	AF Global (SGX: L38)	7.546 – 7.835
3	ARA LOGOS Logistics Trust (SGX: K2LU)	5.77
4	Avarga (SGX: U09)	10.909 – 16.183
5	Best World International (SGX: CGN)	33.312 – 37.565
6	BRC Asia (SGX: BEC)	7.69
7	Bukit Sembawang Estates (SGX: B61)	5.748 – 6.071
8	CapitaLand (SGX: C31)	5.677 – 9.144
9	Centurion Corp (SGX: OU8)	16.878 – 17.312
10	Challenger Technologies (SGX: 573)	19.20
11	China Aviation Oil (Singapore) (SGX: G92)	8.122 – 11.956
12	China Everbright Water (SGX: U9E)	8.967 – 9.461
13	Civmec (SGX: P9D)	6.682 – 8.812
14	Cordlife Group (SGX: P8A)	5.010 – 5.803
15	Cortina Holdings (SGX: C41)	14.875 – 16.955
16	CSE Global (SGX: 544)	13.641 – 15.295
17	DBS Bank (SGX: D05)	9.22
18	Delfi (SGX: P34)	10.324 – 12.404
19	EC World Reit (SGX: BWCU)	6.586 – 9.536
20	Excelpoint Technology (SGX: BDF)	11.84
21	Food Empire Holdings (SGX: F03)	12.527 – 12.621
22	Fragrance Group (SGX: F31)	5.731 – 5.774
23	Frencken Group (SGX: E28)	13.064 – 14.345
24	Fu Yu Corporation (SGX: F13)	7.755 – 9.165
25	Great Eastern Holding (SGX: G07)	9.656 – 11.658
26	Hafary Holdings (SGX: 5VS)	8.208 – 14.627
27	Haw Par Corporation (SGX: H02)	5.773 – 6.074
28	HC Surgical Specialists (SGX: 1B1)	21.486 – 31.730
29	Hi-P International (SGX: H17)	12.810 – 13.511
30	Ho Bee Land (SGX: H13)	9.386 – 10.760
31	Hong Fok Corporation (SGX: H30)	5.472 – 5.646
32	IFAST Corporation (SGX: AIY)	20.318
33	InnoTek (SGX: M14)	7.737 – 10.352
34	International Cement Group (SGX: KUO)	7.670 – 8.169
35	IREIT Global (SGX: UD1U)	15.614 – 19.447
36	ISEC Healthcare (SGX: 40T)	7.986 – 11.733
37	Jardine Cycle & Carriage (SGX: C07)	10.990 – 12.848
38	Jason Marine Group (SGX: 5PF)	7.956 – 8.800
39	JB Foods (SGX: BEW)	15.314 – 18.495
40	JEP Holdings (SGX: 1J4)	10.852 – 12.047
41	Keppel DC Reit (SGX: AJBU)	8.65
42	Kimly (SGX: 1D0)	22.89
43	LHN (SGX: 41O)	19.85
44	Lonza Group (SGX: O6Z)	12.82
45	Mapletree Industrial Trust (SGX: ME8U)	9.558 – 10.313
46	Mapletree Logistics Trust (SGX: M44U)	6.989 – 8.235
47	MegaChem (SGX: 5DS)	7.744 – 9.044
48	Meghmani SDS (SGX: M30)	17.027 – 19.670
49	Moneymax Financial Services (SGX: 5WJ)	10.776 – 13.586
50	Moya Holdings Asia (SGX: 5WE)	5.802 – 8.681
51	Multi-Chem (SGX: AWZ)	15.52
52	Neo Group (SGX: 5UJ)	15.226 – 31.737
53	OCBC Bank (SGX: O39)	8.285 – 10.663
54	Olam International (SGX: O32)	9.452 – 10.858
55	Overseas Education (SGX: RQ1)	5.735 – 6.814
56	Pan Hong Holdings Group (SGX: P36)	15.439 – 24.742
57	Penguin International (SGX: BTM)	7.56
58	Powermatic Data Systems (SGX: BCY)	11.321 – 14.265
59	Raffles Infrastructure Holdings (SGX: LUY)	13.354 – 17.629
60	Riverstone Holdings (SGX: AP4)	16.520 – 23.263
61	Samurai 2K Aerosol (SGX: 1C3)	6.561 – 11.231
62	SBS Transit (SGX: S61)	13.45
63	Singapore Exchange (SGX: S68)	37.901 – 39.443
64	Sheng Siong Group (SGX: OV8)	24.176 – 29.055
65	SIIC Environment Holdings (SGX: BHK)	6.609 – 7.192
66	Sing Holdings (SGX: 5IC)	11.425 – 15.352
67	Singapore Medical Group (SGX: 5OT)	6.984 – 9.360
68	Singapore Post (SGX: S08)	5.445 – 7.271
69	Singapore Shipping Corporation (SGX: S19)	10.174 – 11.647
70	Sinostar PEC Holdings (SGX: C9Q)	13.639 – 14.966
71	Singapore Technologies Engineering (SGX: S63)	25.387 – 26.007
72	The Hour Glass (SGX: AGS)	11.168 – 12.532
73	Tianjin Zhongxin Pharmaceutical Group (SGX: T14)	11.170 – 11.610
74	Top Glove Corporation (SGX: BVA)	29.64
75	UG Healthcare Corporation (SGX: 8K7)	25.664 – 53.137
76	UMS Holdings (SGX: 558)	13.794 – 17.241
77	United Global (SGX: 43P)	63.059 – 64.360
78	UOB Bank (SGX: U11)	9.882 – 11.656
79	United Overseas Insurance (SGX: U13)	7.186 – 9.657
80	Valuemax Group (SGX: T6I)	11.733 – 11.767
81	Valuetronics Holdings (SGX: BN2)	13.763 – 14.529
82	Venture Corporation (SGX: V03)	12.318 – 14.547
83	Vicplas International (SGX: 569)	8.08
84	Wee Hur Holdings (SGX: E3B)	8.797 – 9.673
85	Wilmar International (SGX: F34)	7.716 – 8.887
86	Yanlord Land Group (SGX: Z25)	9.178 – 11.861
87	Yangzijiang Shipbuilding RMB (SGX: SO7)	7.549 – 9.986
88	Yangzijiang Shipbuilding SGD (SGX: BS6)	7.249 – 9.986

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

Filed Under: Market Cycle Investing, Market Optimism, Market Outlook, Stock Market Tagged: bank stock, glove stock, growth stock, technology stock

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

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

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

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

1) FANG Stocks

– Facebook (NASDAQ: FB)

– Amazon (NASDAQ: AMZN)

– Netflix (NASDAQ: NFLX)

– Google (Alphabet) (NASDAQ: GOOGL)

2) MAN Stocks

– Microsoft (NASDAQ: MSFT)

– Apple (NASDAQ: AAPL)

– Nvidia (NASDAQ: NVDA)

3) ATM Stocks

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

– Tencent (HKEX: 700)

– Meituan (HKEX: 3690)

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

60 Singapore Electronics Technology Stocks (雷电交加)

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

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

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

1) Electronics Giant Stocks

– Venture Corporation (SGX: V03)

– Valuetronics Holdings (SGX: BN2)

2) Computer / IT Giant Stocks

– Powermatic Data Systems (SGX: BCY)

– Ban Leong Technologies (SGX: B26)

3) Semiconductor / 5G Giant Stocks

– CEI Limited (SGX: AVV)

– Micro-Mechanics Holdings (SGX: 5DD)

– AEM Holdings (SGX: AWX)

– UMS Holdings (SGX: 558)

– Frencken Group (SGX: E28)

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

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

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

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

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

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

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

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

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

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

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

1) Electronics Giant Stocks

– Venture Corporation (SGX: V03)

– Valuetronics Holdings (SGX: BN2)

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

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

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

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

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

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

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

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

2) Computer / IT Giant Stocks

– Powermatic Data Systems (SGX: BCY)

– Ban Leong Technologies (SGX: B26)

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

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

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

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

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

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

3) Semiconductor / 5G Giant Stocks

– CEI Limited (SGX: AVV)

– Micro-Mechanics Holdings (SGX: 5DD)

– AEM Holdings (SGX: AWX)

– UMS Holdings (SGX: 558)

– Frencken Group (SGX: E28)

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

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

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

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

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

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

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

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

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

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

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

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

1) IT Retail Giant Stock

– Challenger Technologies (SGX: 573)

2) Software Giant Stock

– Silverlake Axis (SGX: 5CP)

3) Data Center Giant REITs

– Keppel DC Reit (SGX: AJBU)

– Mapletree Industrial Trust (SGX: ME8U)

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

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

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

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

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

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

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

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

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

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

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

1) IT Retail Giant Stock

– Challenger Technologies (SGX: 573)

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

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

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

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

2) Software Giant Stock

– Silverlake Axis (SGX: 5CP)

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

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

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

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

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

3) Data Center Giant REITs

– Keppel DC Reit (SGX: AJBU)

– Mapletree Industrial Trust (SGX: ME8U)

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

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

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

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

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

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

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

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

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

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

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

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

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

5 Singapore Semiconductor 5G Stocks (力争上游)

Posted on May 27, 2020 Written by Dr Tee (Ein55)

Semiconductor 5G stocks, AEM, UMS, Frencken, Micro-Mechanics, Avi-Tech Electronics, Telco

In this article, you will learn 5 Singapore semiconductor supplier stocks which could benefit from emerging 5G technology, requiring 5 different stock strategies for investing or trading.

1) Micro-Mechanics Holdings (SGX: 5DD) – Singapore Semiconductor Giant Stock

2) UMS Holdings (SGX: 558) – Singapore Semiconductor Giant Stock

3) AEM Holdings (SGX: AWX) – Singapore Semiconductor Stock

4) Frencken Group (SGX: E28) – Singapore Semiconductor Stock

5) Avi-Tech Electronics (SGX: BKY) – Singapore Semiconductor Stock

Over the past few decades, semiconductor sector is driven mainly by telecommunication (eg. smart phones and related products) and consumer electronics (eg. PC, portable devices, etc). Telco sector introduces new Generation of technology about every 10 years (1980s = 1G with analog voice, 1990s = 2G with digital voice, 2000s = 3G with mobile data, 2010s = 4G with mobile broadband, 2020s = 5G with much faster system to maximize Internet of Things – IoT). Current development of 5G, would help to support growth in global semiconductor value chain over the next decade.

Semiconductor (front-end / back-end) technology development milestones are driven by Moore’s Law which predicted IC capacity or density would double itself about every 18 months. So, telco technology Generation of every 10 years is related to Moore’s Law 2X cycle of every 18 months (1.5 year):

Telco / Semiconductor = (10 / 1.5) = 6.67 times of doubling

So, telco capacity in every Generation of 10 years = 2^(6.67) = 102 times difference. Indeed, 5G technology speed and capacity is about 100X faster or more than current 4G technology, supported by Moore’s Law (力争上游).

Gordon Moore only did a rough extrapolation of future technology a few decades ago. However, it serves as a roadmap for smart scientists to challenge the technology limit at each junction, motivating giant semiconductor and telco companies to invest billions of dollars in R&D to achieve these goals which Moore’s Law is still valid today.

Unique technology knowhow (could be in the form of technical patents or trade secrets with amazing powerful new products) is a strong economic moat for a technology company, especially with a stock. Every good news in leadership in new technology (eg. from 4G to 5G, from 7nm to 5nm semiconductor technology, etc) would help to grow the share prices. In fact, the semiconductor or telco company investor earn much more from stock market than from the actual business. The business is simply a driver (if positive growing results) to drive the stock prices. So, it is important for a stock investor to differentiate among business investment (pure fundamental), stock investment (long term) and stock trading (short term).

There are several ways to invest in 5G related companies, for example through major mobile phone manufacturers (eg. Apple – NASDAQ: AAPL, Xiaomi – HKEx: 1810, etc), global and local Telco companies (eg. AT&T – NYSE: T, Singtel – SGX: Z74, etc), leading semiconductor companies (eg. TSMC – NYSE: TSM, Intel – NASDAQ: INTC, AMD – NASDAQ: AMD, Nvidia – NASDAQ: NVDA, Qualcomm – NASDAQ: QCOM, etc) or other related supplier businesses.

There are 53 Electronics stocks and 28 IT stocks, total 81 Technology Stocks in Singapore which have connections with semiconductor industry:

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

Global and local semiconductor stocks are mostly cyclic in nature, following the economic cycles (affecting consumer’s demand with purchasing power, usually stronger business during bullish economy). US NASDAQ stock exchange has many technology stocks, including semiconductor sector, therefore its stock index also behaves in cyclical way, suitable with “Buy Low Sell High” Optimism Strategy. Few technology stocks could be the leader for long term (a few decades) due to the competitive technology development (including possible mastering of knowhow by competitors with time or by chance). Therefore, a smart investor needs to monitor a technology stock (could be semiconductor, telco, etc), ensuring it is a giant stock (applying Dr Tee criteria) each year before continuing long term investing, otherwise safer to position only in short term or medium term trading during bullish cycle of semiconductor sector.

In Singapore, 5G related stocks are mainly semiconductor suppliers (eg. process/testing equipment, precision engineering, printed circuit board, etc), smaller players but at least 2 are giant stocks (based on Dr Tee giant criteria). Semiconductor sector is considered essential business during Covid-19 pandemic, manufacturing could still continue in Singapore and some other countries.

Here, 5 Singapore semiconductor supplier stocks with reasonably good fundamental (growing business with low debt) are selected for review, potentially could benefit from 5G business (driven by clients’ demand). However, each 5G stock requires different positioning of stock strategy, either for long term investor or short term trading. Only Micro-Mechanics and UMS are giant stocks for investing but other stocks may be considered for trading.

1) Micro-Mechanics (SGX: 5DD) – Singapore Semiconductor Giant Stock

Micro-Mechanics designs and manufactures high precision parts and tools used in applications for the wafer-fabrication (front-end) and assembly processes (back-end) of the semiconductor industry. The company operates in 5 countries: Singapore, Malaysia, Philippines, USA, and China.

Micro-mechanics is a multi-role giant stock, suitable for different personalities of investors. It could be a long term growth stock (supported by growing businesses with strong cash flow and little debt). It is also ideal for medium term cyclic trading with “Buy Low Sell High” optimism strategy. It may be considered as a defender for dividend stock investor with about 6% dividend yield currently. Each of the 3 stock strategies require different entry and exit plans.

2) UMS (SGX: 558) – Singapore Semiconductor Giant Stock

UMS provides high precision front-end semiconductor components, and electromechanical assembly and final testing services. Semiconductor is main business. It operates manly in Singapore, Malaysia, Taiwan, US, South Korea and China.

UMS is a highly cyclic giant stock (despite fundamentally strong), currently at moderate high optimism, therefore not suitable for consideration for long term investing (requiring a global financial crisis with bearish semiconductor cycle before the next entry with condition business fundamental will still be strong). UMS is ideal for medium term cyclic trading with “Buy Low Sell High” optimism strategy, recovering well from nearly 50% price correction in recent global stock crisis due to Covid-19 pandemic. It may be considered as a mid-fielder for mid-term investing with about 4% dividend yield while waiting for capital gains.

3) AEM (SGX: AWX) – Singapore Semiconductor Stock

AEM provides system testing and handling solutions for semiconductor and electronics companies in Asia and globally. It operates through Equipment Systems Solutions, System Level Test & Inspection, Micro-Electro-Mechanical Systems, and Test and Measurement Solutions segments

AEM is a very cyclic stock in long term (partly due to cyclic business of semiconductor cycle), currently at high optimism, therefore not suitable for consideration for long term investing (requiring a global financial crisis with bearish semiconductor cycle before the next entry with condition business fundamental will still be strong). AEM is suitable for medium term momentum trading with “Buy Low & Hold” position trading strategy, supported by strong business performance over the past 5 years due to bullish semiconductor cycle. It may also be considered as a striker for very short term momentum trading with “Buy High Sell Higher” strategy but requiring strict compliance with S.E.T. (Stop Loss / Entry / Target Prices) trading plan.

4) Frencken (SGX: E28) – Singapore Semiconductor Stock

Frencken operates as a capital and consumer equipment service provider worldwide. It has 2 segments, Mechatronics and Integrated Manufacturing Services (IMS). It only has partial business related to semiconductor, therefore closer to a technology stock with diversified sectors.

Frencken is a cyclic stock in long term (despite reasonably strong business fundamental over the past 5 years, following economic cycle), currently at high optimism, therefore not suitable for consideration for long term investing (requiring a global financial crisis with low optimism before the next entry with condition business fundamental will still be strong). Frencken is ideal for medium term cyclic trading with “Buy Low Sell High” optimism strategy, recovering well from nearly 50% price correction in recent global stock crisis due to Covid-19 pandemic. It may also be considered as a striker for very short term momentum trading with “Buy High Sell Higher” strategy but requiring strict compliance with S.E.T. (Stop Loss / Entry / Target Prices) trading plan. It has particularly strong business fundamental in 2019, supporting the rising prices then, careful monitoring of future quarterly financial performance is required for short term trading.

5) Avi-Tech Electronics (SGX: BKY) – Singapore Semiconductor Stock

Avi-Tech Electronics provides burn-in, manufacturing and printed circuit board assembly, and engineering services for the semiconductor, electronics, life sciences, aviation, and other industries. It only has partial business related to semiconductor, therefore closer to a technology stock with diversified sectors. It serves customers in Singapore, US, Malaysia, Germany, Philippines, Thailand, Taiwan, and China.

Avi-Tech is an average performance technology stock in long term (despite reasonably good business fundamental over the past 5 years, following economic cycle), currently at moderate high optimism, therefore not suitable for consideration for long term investing. Avi-Tech is also not a good choice for trading due to lack of price strength. It may be considered as a mid-term defender for dividend stock investor with about 6% dividend yield currently. However, since there are so many better choices of 5G stocks (even Micro-Mechanics or Singtel also has 6% dividend yield, supported by stronger businesses), Avi-Tech is clearly a choice from the bottom of the list, reviewed for the sake of comparison with other 5G stocks.

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Technology stocks (including semiconductor) could be exciting experience for an investor, especially with cyclic investing. Sometimes, a strong momentum technology stock could surge more than 100% in price in less than 1 year. A stock trader could be in dilemma, whether to sell (potential “risk” is may miss further upside in prices) or to hold (potential risk is huge price correction during stock crisis, eg. price may cut by half in recent Covid-19 pandemic).

A simple and powerful stock strategy is to apply “50/50” method, i.e. whenever stock price of a giant stock is doubled, just sell half of the stocks, since capital is recovered (with 2X price, selling 50% stocks), an investor has stronger holding power for the remaining 50% position as the worst could happen in future would be 0% gain, not losing money at all (assuming remaining 50% stocks drop to $0, possible worst case). However, for technology or semiconductor stocks which are cyclic at high optimism, it is relatively safer to sell 100% of stock first, buying back the same giant stocks at lower optimism in the next opportunity.

Micro-Mechanics, UMS and AEM are not 30 STI index component stocks but they are much stronger than most of these blue chip stocks (investor has to focus only on giant stocks for investing):
DBS Bank (SGX: D05), Singtel (SGX: Z74), OCBC Bank (SGX: O39), UOB Bank (SGX: U11), Wilmar International (SGX: F34), Jardine Matheson Holdings JMH (SGX: J36), Jardine Strategic Holdings JSH (SGX: J37), Thai Beverage (SGX: Y92), CapitaLand (SGX: C31), Ascendas Reit (SGX: A17U), Singapore Airlines (SGX: C6L), ST Engineering (SGX: S63), Keppel Corp (SGX: BN4), Singapore Exchange (SGX: S68), Hongkong Land (SGX: H78), Genting Singapore (SGX: G13), Mapletree Logistics Trust (SGX: M44U), Jardine Cycle & Carriage (SGX: C07), Mapletree Industrial Trust (SGX: ME8U), City Development (SGX: C09), CapitaLand Mall Trust (SGX: C38U), CapitaLand Commercial Trust (SGX: C61U), Mapletree Commercial Trust (SGX: N2IU), Dairy Farm International (SGX: D01), UOL (SGX: U14), Venture Corporation (SGX: V03), YZJ Shipbldg SGD (SGX: BS6), Sembcorp Industries (SGX: U96), SATS (SGX: S58), ComfortDelGro (SGX: C52).

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Filed Under: Fundamental Analysis, Market Cycle Investing, Stock Market, Technical Analysis, Trading, Value Investing Tagged: 5G stock, AEM, Avi-Tech Electronics, cyclic investing stock, Frencken, Micro-Mechanics, semiconductor stock, technology stock, telco stocks, UMS

15 Hong Leong Group and Kwek Family Stocks (新马郭家)

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

Hong Leong Group is established by Kwek/Quek family in Singapore and Malaysia. They are influential in both banking/finance and property/hospitality sectors. Learn from Dr Tee on how to position in these 15 Kwek family stocks, 5 from Hong Leong Singapore (Kwek Leng Beng) and 8 from Hong Leong Malaysia (Quek Leng Chan). There are 2 surprise bonus giant stocks waiting in between the article to reward patient reader, from another unrelated “Kwek” family. There are also a few other bonus examples, read every word in this article which could reward reader in future when taking the right action.

Kwek Leng Beng (Hong Leong Singapore):

1) City Developments Limited, CDL (SGX: C09) – Singapore Giant Property Stock

2) CDL Hospitality Trusts, CDLHT (SGX: J85) – Singapore Hospitality REIT

3) Hong Leong Finance, HLF (SGX: S41) – Singapore Finance Stock

4) Hong Leong Asia, HLA (SGX: H22) – Singapore Industrial Stock

5) Millennium & Copthorne, MLC (LSE: MLC) – UK Hospitality Stock

Quek Leng Chan (Hong Leong Malaysia):

6) Hong Leong Bank, HLBANK (Bursa: 5819) – Malaysia Giant Bank Stock

7) Hong Leong Finance Group, HLFG (Bursa: 1082) – Malaysia Giant Finance Stock

8) Hong Leong Industries, HLIND (Bursa: 3301) – Malaysia Giant Industrial Stock

9) GuocoLand Malaysia, GUOCO (Bursa: 1503) – Malaysia Property Stock

10) GuocoLand Limited (SGX: F17) – Singapore Property Stock

11) GL Limited (SGX: B16) – Singapore Hospitality Stock

12) Hong Leong Capital, HLCAP (Bursa: 5274) – Malaysia Investment Stock

13) Hume Industries, HUMEIND (Bursa: 5000) – Malaysia Cement Stock

Bonus Stocks from Another “Kwek” Family (hidden in between article)

14) Bonus Stock No 1 – Malaysia Giant F&B Growth Dividend Stock

15) Bonus Stock No 2 – Malaysia Giant Plantation Growth Dividend Stock

Kwek Leng Beng and Quek Leng Chan are actually cousin (堂兄弟) under Kwek family, their fathers are siblings, originally from Fujian of China. Why they don’t share the same family name in English, Kwek vs Quek? Well, it is quite common in older generation (both of the Hong Leong Groups Chairmen are nearly 80 years old, born around World War II time) in Singapore and Malaysia, even the surname is the same in Chinese (郭) but the possible miscommunication between the persons who reported (verbally say) and registered (listen with sounds like, then write in own way…) may result in difference in English name on birth certificate, even within the same family.

In Year 1965, Singapore and Malaysia split into 2 countries and Hong Leong Group was also divided into 2 groups. Quek Leng Chan decided to start a new business world in Malaysia with family fund while other Kwek family members (including Kwek Leng Beng) chose to stay in Singapore. Due to this historical national event, now we have 2 different Hong Leong groups in 2 countries with independent businesses. Of course, in modern world now, there is no limit in border, business could reach any country globally. Here, Dr Tee will comment on each of the Kwek/Quek family stocks.

Kwek Leng Beng (Hong Leong Singapore)

For Kwek Leng Beng (Hong Leong Singapore), the most famous stock is City Developments Limited, CDL, a giant property stock in Singapore, also 1 of 30 STI component stocks. CDL is the second largest property developer in Singapore, performance is close to another property giant stock (largest property developer in Singapore and Asia), CapitaLand (SGX: C31). Both CDL and CapitaLand are typical blue chip stocks, slower growth but stable (property), more suitable for positioning as a midfielder stock, aiming for moderate capital gains and dividend incomes over time. For investors who aim for higher growth, then both slower giant stocks may not be ideal. An ideal giant stock may not need to be large in size but has to strong in business with growth, more importantly, aligning with unique personality of individual investor.

CDL Hospitality Trusts, CDLHT, is a REIT with reasonable business fundamental (before Coronavirus crisis) but more for dividend investing, although recent Coronavirus crisis has helped to push up dividend yield to about 10% after huge correction in share price, the regular dividend payout may not be sustainable in Year 2020 due to deep impact of COVID-19 on tourism which affects the hotel business. Hong Leong Finance has reasonably good business fundamental but mainly for consideration for dividend investing (read further to the end, bonus stock is a better choice for dividend investing). Hong Leong Asia is a weak stock and Millennium & Copthorne (listed in LSE of UK) are related to hotel business in crisis, may not be considered.

Quek Leng Chan (Hong Leong Malaysia)

For Quek Leng Chan (Hong Leong Malaysia), there are more giant stocks (based on Dr Tee criteria), the best would be Hong Leong Bank, a Malaysia giant bank stock, comparable with another biggest bank giant stock, Public Bank (Bursa: 1295). Public Bank owner is also the Top 10 richest person in Malaysia, “Teh” Hong Piow (郑鸿标), the surname in English is also another variation from Dr “Tee” surname (郑) and more popular “Tay” in Singapore, but from different families. Both Hong Leong Bank and Public Bank are the few remaining private banks with excellent management (but from older generation, success plan could be a concern) in Malaysia which survive decades of merging and acquisition by government linked banks. Although Public Bank is not the “Bonus Stock” here but readers may want to consider together with Hong Leong Bank when planning for bank stocks, both are equally good, but Public Bank is bigger in size (No 3 largest bank in Malaysia).

Hong Leong Finance Group is another giant finance stock in Malaysia, excellent business performance is comparable with Hong Leong Bank. An investor may only need to consider 1 giant stock from Hong Leong groups of Kwek/Quek family, so that limited capital may be diversified with lower risks to more businesses, sectors and countries. Hong Leong Industries are slightly lower performance than both giant stocks (Hong Leong Bank and Hong Leong Finance Group), having growing business as well.

Guoco Group has 3 stocks listed, acceptable business but may not worth investing: GuocoLand Limited (SGX: F17) – Singapore Property Stock (No 5 largest property developer in Singapore), GL Limited (SGX: B16) – Singapore Hospitality Stock, GuocoLand Malaysia (Bursa: 1503) – Malaysia Property Stock. Remaining 2 stocks may not worth consideration: Hong Leong Capital, HLCAP (Bursa: 5274) – Malaysia Investment Stock (suspended due to public shareholding <25%) and Hume Industries, HUMEIND (Bursa: 3301) – Malaysia Cement Stock which has weak performance, could be due to bearish property construction industry in Malaysia.

Bonus Stock No 1: Hup Seng (Bursa: 5024) – Malaysia F&B Growth Dividend Stock

Sounds confusing of Kwek vs Quek? Another little giant F&B stock in Malaysia, Hup Seng (Bursa: 5024), biscuit family from a small town, Batu Bahat of Johor, Malaysia also share the same surname of Kwek (郭) in Chinese but all 3 brothers (founders) have different surnames spelled in English: Kuo Choo Song, Keh Chu Koh and Kerk Chiew Siong, same reason as above (also same generation as Hong Leong leaders). This difference won’t stop the family to develop Hup Seng from a tiny biscuit factory into a listed public company in Bursa. In fact, Hup Seng has growing business with steady cash flow (products such as “ping pong” Marie biscuit and crackers are popular in Malaysia and Singapore). Hup Seng is actually a growth dividend stock (nearly no debt for past decade), share price is only corrected by 20% during recent global stock crisis during pandemic and quickly recover, now even higher before the Coronavirus crisis. This bonus stock is a good example of a giant stock does not need to be big in size.

Bonus Stock No 2: Hap Seng (Bursa: 3034) – Malaysia Plantation Growth Dividend Stock

Be careful when searching for Hup Seng stock, don’t mix up with another giant stock (Bonus No 2), Hap Seng (Bursa: 3034) with slightly different “surname” but it is a plantation stock, may also be positioned for growth dividend investing. So, regardless which “Kwek” or which “Hup/Hap” Seng stock, as long as it is a giant stock, then it could potentially reward the investors with growing business but patience is required.

In fact, there are 3 “Kwek” families from the Top 10 richest families in Singapore and Malaysia. Besides Kweks from Hong Leong Group (Kweks of Hup Seng are too small) are in the Forbes’ list, there are Kuok Family (Robert Kuok – the richest person in Malaysia and nephew Kuok Khoon Hong – Wilmar Chairman, No 9 richest person in Singapore) and Kwee Family (Pontiac Land Group), No 8 richest family in Singapore. Perhaps these could be future articles for Dr Tee.

Based on Forbes’ wealth estimation, Quek Leng Chan (Hong Leong Malaysia) has about US$9 Billion net worth, about 3 times more than cousin, Kwek Leng Beng (Hong Leong Singapore). The difference in wealth (assuming starting fund is close 50 years ago) could be due to more giant growth stocks in Hong Leong Malaysia, resulting in faster growth in wealth over the past decades for Quek Leng Chan.

A person or family could become very rich, business (private company) itself may be insufficient, usually is supported by at least a giant stock, then wealth could become more than 10 or 100 times over time after public listing. A convincing example is the world richest person, Jeff Bezos with US$143 Billion net worth (more than 10 times of entire Hong Leong Group of 2 countries), becoming very rich because of Amazon stock (NASDAQ: AMZN), not just because of earning in business (Price Earning ratio, PE is 102, implying he could multiply his wealth 102 times through stock market). Of course, there are more examples, including Mark Zuckerberg, founder of Facebook, No 6 richest person in the world, net worth of $63 Billion is only possible after Facebook is listed (NASDAQ: FB) with support of growing business. Both Amazon and Facebook businesses may not be recession proof but certainly “Coronavirus pandemic proof”, with more lockdown globally, users could be even more, strong share price performance is a recognition of high growth stock.

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There are 30 STI index component stocks including City Development of Kwek Family (investor has to focus only on giant stocks for investing):
DBS Bank (SGX: D05), Singtel (SGX: Z74), OCBC Bank (SGX: O39), UOB Bank (SGX: U11), Wilmar International (SGX: F34), Jardine Matheson Holdings JMH (SGX: J36), Jardine Strategic Holdings JSH (SGX: J37), Thai Beverage (SGX: Y92), CapitaLand (SGX: C31), Ascendas Reit (SGX: A17U), Singapore Airlines (SGX: C6L), ST Engineering (SGX: S63), Keppel Corp (SGX: BN4), Singapore Exchange (SGX: S68), Hongkong Land (SGX: H78), Genting Singapore (SGX: G13), Mapletree Logistics Trust (SGX: M44U), Jardine Cycle & Carriage (SGX: C07), Mapletree Industrial Trust (SGX: ME8U), City Development (SGX: C09), CapitaLand Mall Trust (SGX: C38U), CapitaLand Commercial Trust (SGX: C61U), Mapletree Commercial Trust (SGX: N2IU), Dairy Farm International (SGX: D01), UOL (SGX: U14), Venture Corporation (SGX: V03), YZJ Shipbldg SGD (SGX: BS6), Sembcorp Industries (SGX: U96), SATS (SGX: S58), ComfortDelGro (SGX: C52).

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

Readers may feel that the riches are too far to reach. In fact, retail investors may leverage on these rich families or individual, investing in their giant stocks at lower optimism prices during global financial crisis when others are fearful (mastery of investment clock), while their strong businesses continue to grow during the crisis, eventually could reward the investors with capital gains when crisis is over and others are greedy this time.

Drop by Dr Tee free 4hr investment course to learn how to position in global giant stocks with 10 unique stock investing strategies, knowing What to Buy, When to Buy/Sell.

You are invited to join Dr Tee private investment forum (educational platform, no commercial is allowed) to learn more investment knowledge, interacting with over 9000 members.

Filed Under: Fundamental Analysis, Market Cycle Investing, Stock Market Tagged: amazon, bank stock, CDL, CDLHT, facebook, GuocoLand, hap seng, Hong Leong Bank, Hong Leong Group, hup seng, Property Market, Property Stocks, public bank, REITS, technology stock

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