There are value investing stocks which are highly discounted below the intrinsic value, having great potential to grow in business, an ideal investment for passive income and capital gains, provided an investor knows what are the good stocks to buy, when to buy/sell or how to hold for long term. Here are key learning points from FREE Singapore Value Investing Course by Dr Tee:
3 Rules in calculation of Discounted Net Asset Value (NAV) for undvalue stock (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%
FREE Singapore Value Investing Course by Dr Tee:
Master 5 Value Investing Strategies
1) Maximize passive income and capital gain with global value investing stocks.
2) Learn the method to identify high-potential value investing stocks through stock screening.
3) Long-term value investing strategies to outperform portfolio return of major stock indices ETF.
4) 3M for winning in value investing stocks: Methods, Mind Control and Money Management.
5) How to find opportunity from crisis in value investing stocks of Singapore & US
View quick preview video below, Dr Tee will introduce 10 key stock investment strategies (股票投资十招) to be learned in 4hr free stock webinar:
Register Here (Dr Tee Free 4hr Stock Webinar): www.ein55.com
