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

Posted on November 6, 2018 Written by

Charity Course NAV Stocks

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

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

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

1) Non-discounted asset

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

2) Zero value asset

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

3) Up to 50% discount asset

– all remaining asset

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

 

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

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

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

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

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

3) Combine Optimism Method to decide BUY/SELL points

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

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

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

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

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

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$110,000 Charity Courses for Tzu Chi (慈济) with Summary of Capital Growth Stocks

Posted on April 23, 2018 Written by

Dr Tee Charity Course for Tzu Chi (慈济)

Dr Tee, Ein55 Mentor & Graduates have together organised 6 charity investment courses (REITs/Business Trusts in Nov 2015 and May 2017, High Dividend Stocks in Mar 2016 and Oct 2017, Discounted NAV Stocks in Sep 2016, and Capital Growth Stocks in Apr 2018) in the past 3 years, donating net income of around $110,000 to Tzu Chi 慈济 (Singapore). We hope to inspire more Ein55 Graduates to reach out the society, helping others who are in need.  More importantly, they have also learned the secrets of making money through investment. When more Ein55 Graduates are successful financially, they could also contribute back to the society to help more people in future.

Here are key learning points from the recent Charity Course on Capital Growth Stocks:

1) Two approaches in investing for Capital Growth

– Asset Base approach – buy base on margin of safety via calculate it’s “Discounted” NAV of all present assets

– Earning-Cash flow approach – buy base on margin of safety via calculate it’s  Intrinsic value using “Discounted Cash Flow” of future cash flow.

2) Discounted Cash Flow (DCF) model is the most common method to calculate Intrinsic value of a growing company, using future cash flow projections and discounts them using an expected annual rate to arrive to present value.

3) An economic moat is a structural business characteristic that allows a company to generate excess economic returns for an extended period. It protects a company’s profit from being attacked by business forces. Traditional management theory terms as “Sustainable or Durable Competitive Advantages” or simplify terms as “Entry Barriers”.

4) A company with economic moats able to generate higher level of Economic Profit compare to its peers and can sustain competitive advantage for a long period of time. Economic moats drive value creation that leads to revenue growth, high profitability and high return on invested capital. The free cash flow accumulated create economic profit, this is the real value creation company.

5) Here are 3 Steps in Stock Investing:-

– Identify businesses that can generate above-average profits for many years

– Wait until the shares price trade below their intrinsic value, and then buy

– Hold those shares until either the business deteriorates, or the shares become overvalued, or a better investment is found.

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

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

 

Filed Under: Personal Analysis Tagged: , ,

Ein55 Charity Courses with $70,000 Donation to Tzu Chi (慈济): REITs & Business Trusts Investing Strategies for Passive Income

Posted on May 24, 2017 Written by

Ein55 Newsletter No 069 - image - Charity - REITS

Dr Tee, Ein55 Mentor & Graduates have together organised 4 charity investment courses (REITs/Business Trusts in Nov 2015 and May 2017, High Dividend stocks in Mar 2016, and Discounted NAV stocks in Sep 2016) in the past 2 years, donating net income of around $70,000 to Tzu Chi 慈济 (Singapore). We hope to inspire more Ein55 Graduates to reach out the society, helping others who are in need.  More importantly, they have also learned the secrets of making money through investment. When more Ein55 Graduates are successful financially, they could also contribute back to the society to help more people in future.

Here are key learning points from the recent Charity Course on REITs and Business Trusts:

1) Invest for dividend income is one of the important criteria that stock investor must not ignore because historical data shown that

– S&P 500 (1932 to 2014) – dividend contributes to 45% of portfolio return

– STI 30 (2003 to 2013) – dividend contributes to 49% of portfolio return

 

2) What is REITs (Real Estate Investment Trusts)?

REITs are collective investment schemes that invest in a portfolio of income generating real estate assets such as shopping malls, offices, hotels or serviced apartments and hospitals.  It is also a type of security that can trades on major exchanges like other listed securities.

– Assets of REITs are professionally managed

– Revenues are derived mostly from rental payments, >90%.

– Net income generated from assets must be distributed at least 90%, quarterly to unit holder.

 

3) What is Business Trust?

Business trust is an investment vehicle structured so that a single company, known as the “trustee-manager”, holds and operates business enterprises for the benefit of its investors but the unit holders do not have any operational control or shareholders’ rights.  Business trusts allow retail investors to have a direct exposure to cashflow-generating assets, such as utilities, shipping, sea port and it is suited to any businesses involving high initial capital expenditures with stable operating cash flows.

 

4) 7 Risk factors for REITs & BTs analysis are

– Market Risk and Income Risk which are intervene each other

– Foreign Country risk especial currency exchange rate change

– Concentration risk – depend on single property or few tenants

– Leverage risk – revalue down of asset resulting hit gearing limit

– Refinancing risk – unable to secure new loan or new loan at higher cost

– Liquidity risk – difficult to buy/sell portfolio asset

 

5) 4 common growth strategies adopting by REIT manager are:

– Acquisition – from sponsor or 3rd party

– Asset Enhancement Initiative (AEI) – shopping mall to increase NLA

– Organic growth – positive rental revision and increase occupancy

– Development & re-development – cap limit increase to 25% from Jan 2017

 

6) Best timing to Invest in REITs and Business Trusts will be

– Long-term Optimism and Mid-term Optimism < 25%

– Average dividend yield over 8%

 

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Ein55 Charity Course: Discounted NAV Stocks (Summary of Key Learning Points)

Posted on September 19, 2016 Written by

ein55-newsletter-no-041-image-charity-dnav-course

The earlier two Ein55 Charity courses on REITs/BT (Nov 2015) and High Dividend Stocks (Mar 2016) were great successes (click links above to read the reports), enriching the investment knowledge of Ein55 graduates in dividend income approach, helping other needy people at the same time. Chye Tin, an Ein55 Graduate Mentor and successful investor, together with Dr Tee, have organized the third Charity Course, Discounted NAV (Net Asset Value) Stocks for capital growth on 17 Sep 2016, part of a series of 4 investment courses based on practical strategies.

The responses from Ein55 Graduates were overwhelming, about 220 students have attended this Charity Course, learning how to choose stocks with significant discounts in good assets, when to buy and sell them in future with investing-for-capital growth strategies, integrating advanced Fundamental Analysis and Ein55 Optimism Strategies.

The net income from this Charity Course is donated to Tzu Chi to help more needy people.  It is an honour that the management of Tzu Chi 慈济 (Singapore), Mr Sim, also attended this charity event, sharing how Tzu Chi has helped numerous needy people regardless of races, religions and nationalities.  Through the combined effort of all Ein55 Graduates, we have donated directly and indirectly, an amount of $15,400 to Tzu Chi in this third Charity Course.

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

Here are key learning points in this Discounted NAV Stocks course:

1) Before invest our money in any stock, we should learn to apply 2 investing strategies:

– Invest for Income – focus on REIT or/and High yield stock (non REIT),

– Invest for Capital Growth – based on its asset or earning / cash flow growth

2) Discounted Asset Strategy – valuation of company business base on the Net Asset Value (NAV) listed in current Balance Sheet. Then, we determine the net CASH that would be received if all assets were sold and liabilities paid off.  Various discounts will be applied based on different quality of asset classes.  It is safe to buy stock with share price below the Discounted NAV.

3) Ensure the Discounted NAV stocks are fundamentally strong (checking several additional FA criteria, eg. Earning per Share > 0), not to fall into the value traps.

4) Combine with Ein55 Optimism Strategies to decide BUY/SELL points

BUY – when low optimism (<25%)

SELL – when high optimism (>75%)

5) One Discounted NAV stock fulfilled all the criteria mentioned above is HongKong Land (SGX: H78), click here to read analysis on this stock.  There are many undervalue Singapore and global stocks, we should learn to form a portfolio to own these Discounted NAV stocks.

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

 

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