Market is down again today, even though US market has surged 200 points. This is mainly due to persistent margin call and short player in action. Nevertheless, for those long term holder with cash, this present a golden opportunity to pick up some good stock with bargain price.
MIDAS announced a +50% increment of half year profit and winning a new contract from european company. A strong evidence that all the rumour is unfound. When the sentiment turns, it could resume back the uptrend.
China Hongxing had a +110% of first half net profit. A stunning result. They planned to open 600 stores per year for 2007 and 2008 which would drive the earning growth further. The profit margin also expanded. Expect more stellar result in future.
Hongguo profit increased by 21%. Gross Profit Margin expanded from 38% to 40%. Another good half year result similar to the past. It is a slow and steady growth company. Imagine women has to change how many pairs of shoe a year and their multi brand/more store strategy, we should continue to see good growth ahead.
Tuesday, 7 August 2007
Monday, 6 August 2007
Market close on 06 Aug
True enough. Follow by US market big plunge on last Friday, we saw more selling pressure on SGX today. Many sellers + margin call ensure that the price has no way to recover. Every stock got impacted, no matter big/mid/small cap. Some of the counter with good fundamental even drop more than 10%. One example is Hiap Seng, which drop more than 10%.
Those with lots of spare money can consider to buy selectively. Looks like the consesus now is it would drop further. But to catch it at the right bottom, seems like a difficult thing to do. If the valuation is not exessive, it is worthwhile to pick up a few. Of course, nobody knows what would happen tomorrow. However, I have been through these kind of correction before. I believe as long as you buy it cheap and the company/industry is growing, you would be doing alright years later.
I think I would start a model portfolio of stock and unit trust when the dust settled down. This is to test my stock picking skill and provide more food for thought.
Those with lots of spare money can consider to buy selectively. Looks like the consesus now is it would drop further. But to catch it at the right bottom, seems like a difficult thing to do. If the valuation is not exessive, it is worthwhile to pick up a few. Of course, nobody knows what would happen tomorrow. However, I have been through these kind of correction before. I believe as long as you buy it cheap and the company/industry is growing, you would be doing alright years later.
I think I would start a model portfolio of stock and unit trust when the dust settled down. This is to test my stock picking skill and provide more food for thought.
Sunday, 5 August 2007
Market direction week Aug 6
Over the past weekend, did some stock research. According to many forum members and bloggers, there could be many margin call on the coming week. So, expect lots of volatility coming. For those who has minimum exposure to stock, it might be worthwhile to pick up some good stock. But keep the percentage of investment small. If it correct further, then you can buy cheaper.
Most of the time, market exhibit this irrational exuberance. When it is a strong bull run, many trader/punter/momentum players came in to push the price to an astronomical level. We could see stocks with historical PE of 40~50. People always justify the price because of high growth expected and reasonable forward PE.
At the time of uncertainty/severe correction, wave after wave of selling emerged. Be it human fear/margin call, it depress the stock price to an unseen level which you could pick up some good stuff with cheap price. After a while, people would say the selling is over done. Then, market rebounded and pick up from there. Keep your emotion in check, control the greed and fear. We hope to time the purchase a little bit better. Sell during an euphoria, buy during the depression.
Most of the time, market exhibit this irrational exuberance. When it is a strong bull run, many trader/punter/momentum players came in to push the price to an astronomical level. We could see stocks with historical PE of 40~50. People always justify the price because of high growth expected and reasonable forward PE.
At the time of uncertainty/severe correction, wave after wave of selling emerged. Be it human fear/margin call, it depress the stock price to an unseen level which you could pick up some good stuff with cheap price. After a while, people would say the selling is over done. Then, market rebounded and pick up from there. Keep your emotion in check, control the greed and fear. We hope to time the purchase a little bit better. Sell during an euphoria, buy during the depression.
Saturday, 4 August 2007
Layman investing
I have two female friends. I met friend A some months back, she was buying insurance and does not have any unit trust or stock investment. The insurance maybe investment linked or whole life which actually yield lower return. I asked her why don't you invest in unit trust, the return is better. She said "scared leh, money is hard earned one". That's the point, because it is hard earned, you should make it work harder for you.
Friend B told me to recommend her some good stock last year. I told her to open the trading account and read up some investment basic. After half a year, she did nothing. As the stock correction now is an oppoturnity to buy, I alerted her again. She said "need to discuss with you, I am afraid of losing money". She is influenced by people earning quick money in the bull run, yet when there is a stock sale, she is afraid to participate.
Investing is one component of good financial planning. Save some rainy fund, buy some insurance, take the money that you can afford to lose to start investing. Ultimately you would be rewarded with risk that you took. Rather than let the inflation erode your spending power in bank deposit, why not buy a good company. Although not without risk, you can participate in earning growth and dividend. Exchange some of your shopping time to read on investing, surely it yield more than the satisfaction of bringing shopping bag home.
If you don't know stock and don't want that to bother you, buy unit trust. The 21 century belongs to Asia. Buy some Asia fund, hold it for 5 years, I believe you would be doing ok. Some of my colleague, although have no use with their CPF, they just leave it inside the account earning the 2.5% interest. Take some to invest, you won't be wrong.
Friend B told me to recommend her some good stock last year. I told her to open the trading account and read up some investment basic. After half a year, she did nothing. As the stock correction now is an oppoturnity to buy, I alerted her again. She said "need to discuss with you, I am afraid of losing money". She is influenced by people earning quick money in the bull run, yet when there is a stock sale, she is afraid to participate.
Investing is one component of good financial planning. Save some rainy fund, buy some insurance, take the money that you can afford to lose to start investing. Ultimately you would be rewarded with risk that you took. Rather than let the inflation erode your spending power in bank deposit, why not buy a good company. Although not without risk, you can participate in earning growth and dividend. Exchange some of your shopping time to read on investing, surely it yield more than the satisfaction of bringing shopping bag home.
If you don't know stock and don't want that to bother you, buy unit trust. The 21 century belongs to Asia. Buy some Asia fund, hold it for 5 years, I believe you would be doing ok. Some of my colleague, although have no use with their CPF, they just leave it inside the account earning the 2.5% interest. Take some to invest, you won't be wrong.
Thursday, 2 August 2007
Stock watch list
Now, the Great Stock Sale has arrived. The key thing is to identify the stock which offer best potential in coming years. These are all under my consideration. Once the storm is over and depends on news development, it could just start moving.
Offshore and marine
BH Global - Lighting contractor for rig and vessel. The more vessel they build, more business they get.
Hiap Seng - Niche contractor for mechanical work and gas compressor.
KS Energy - Energy giant in the making
Swiber - Offer EPC services for offshore and marine sector
Properties and hotel
Guthrie GTS - Undervalued property play
Hotel GrandCentral - Bright outlook as room rate is very high now
China
Ching Hongxing - Sports shoe maker who is growing 40%-50% a year
MIDAS - Supplies the aluminium material to build China railway infrastructure
Sino Env - Cleaning up the China polluted environment
China Lifestyle - Undervalued consumer play, which earning could accelerate in coming FY
Big/Mid Cap
Ascott Group - One of the top service resident player in the world
Guoco Land - Property development in Singapore and China. Could package asset into REIT and unlock share holder's value
High risk
CEnersave - Emerging bio mass energy player.
Guangzhao IFB - Owns lots of fast growing tree which is due to harvest in FY08
Others
FJ Benjamin - Local retail player. The upcoming tourism boom and successful RAOUL brand could drive earning in the future
Hongwei - Undervalued fiber player with low valuation and high capacity expansion
Tag: singapore stock sgx stock offshore marine
Offshore and marine
BH Global - Lighting contractor for rig and vessel. The more vessel they build, more business they get.
Hiap Seng - Niche contractor for mechanical work and gas compressor.
KS Energy - Energy giant in the making
Swiber - Offer EPC services for offshore and marine sector
Properties and hotel
Guthrie GTS - Undervalued property play
Hotel GrandCentral - Bright outlook as room rate is very high now
China
Ching Hongxing - Sports shoe maker who is growing 40%-50% a year
MIDAS - Supplies the aluminium material to build China railway infrastructure
Sino Env - Cleaning up the China polluted environment
China Lifestyle - Undervalued consumer play, which earning could accelerate in coming FY
Big/Mid Cap
Ascott Group - One of the top service resident player in the world
Guoco Land - Property development in Singapore and China. Could package asset into REIT and unlock share holder's value
High risk
CEnersave - Emerging bio mass energy player.
Guangzhao IFB - Owns lots of fast growing tree which is due to harvest in FY08
Others
FJ Benjamin - Local retail player. The upcoming tourism boom and successful RAOUL brand could drive earning in the future
Hongwei - Undervalued fiber player with low valuation and high capacity expansion
Tag: singapore stock sgx stock offshore marine
Wednesday, 1 August 2007
Hongwei Technologies
Background
Hongwei Technologies Limited (“Hongwei” or “The Group”) is principally engaged in the manufacture and sale of polyester differential fibres primarily to yarn and textile manufacturers located in the southern parts of China, mainly in Fujian Province.
Investment Merit
Developed Anti-Flammable Synthetic Cotton
Double production capacity for synthetic cotton which is high in demand
Low PE with decent dividend yield
Institutional investor participation - Tembusu Growth Fund
Diverse customer base - 600+
Risk
Sudden slow down of demand for company product
Additional Information
Business week
Tembusu Partners
Tag: singapore stock sgx stock hongwei
Hongwei Technologies Limited (“Hongwei” or “The Group”) is principally engaged in the manufacture and sale of polyester differential fibres primarily to yarn and textile manufacturers located in the southern parts of China, mainly in Fujian Province.
Investment Merit
Developed Anti-Flammable Synthetic Cotton
Double production capacity for synthetic cotton which is high in demand
Low PE with decent dividend yield
Institutional investor participation - Tembusu Growth Fund
Diverse customer base - 600+
Risk
Sudden slow down of demand for company product
Additional Information
Business week
Tembusu Partners
Tag: singapore stock sgx stock hongwei
Another big plunge
Today the Singapore market just gone through another big plunge. All stock, with fundamental or just speculative, all gone down. In the bull market, everybody wants to buy. In the downturn, everybody wants to cut loss.
I trimmed my position in May, preparing for the market correction. Who knows after I sell out, the counter I once held shoot up more than 50%. That's the power of long term investing. You can never time the market. Just when I re-enter the market few weeks ago, the long awaiting correction is finally here.
I am sitting on paper loss now. But I am not prepare to "cut loss" at this point. Since when I bought the counter, the share isn't that expensive, so I am willing to ride out the volatility. When the next upturn comes, everybody would smile again.
Today added a small position in BH Global. The current offshore and marine cycle has another few years to run. So, this should be considered as "safe" investment. Two more themes I strongly believe are hotel&property and china consumer play. As hotel shortage would stretch till 2010 and china consumer play should be a multi year bull cycle.
Monitoring the market closely, if other even better opportunity emerged, would start a position on it. Although risk abound, focus on the earning prospect and valuation should ensure a safer ride.
If you are unit trust investor, can start planning what to buy already. Once the market stabalise, it is a good time to add some fund position also.
Never 100% vested. Save some bullet for the market correction.
Tag: singapore stock sgx stock
I trimmed my position in May, preparing for the market correction. Who knows after I sell out, the counter I once held shoot up more than 50%. That's the power of long term investing. You can never time the market. Just when I re-enter the market few weeks ago, the long awaiting correction is finally here.
I am sitting on paper loss now. But I am not prepare to "cut loss" at this point. Since when I bought the counter, the share isn't that expensive, so I am willing to ride out the volatility. When the next upturn comes, everybody would smile again.
Today added a small position in BH Global. The current offshore and marine cycle has another few years to run. So, this should be considered as "safe" investment. Two more themes I strongly believe are hotel&property and china consumer play. As hotel shortage would stretch till 2010 and china consumer play should be a multi year bull cycle.
Monitoring the market closely, if other even better opportunity emerged, would start a position on it. Although risk abound, focus on the earning prospect and valuation should ensure a safer ride.
If you are unit trust investor, can start planning what to buy already. Once the market stabalise, it is a good time to add some fund position also.
Never 100% vested. Save some bullet for the market correction.
Tag: singapore stock sgx stock
Negative sentiment
Last week, bought into the company MIDAS which supplies aluminium products in China. Few months back, the company is in hot demand by the investor. But due to a false report, which later being took down in one of China website, the share plunge heavily.
I thought buying it at a steep discount to the all time high make the risk worthwhile. However, looking at the closing price today which is something like 1.2+. Market obviously think otherwise.
Since the management has issued a firm denial and there is no concrete proof that the claim is correct. I would continue to hold the stock and looking forward to the bright future.
Maybe the hedge fund and short term player is bashing the stock down. When the stock goes up, everybody wants to buy. When it get beaten down, everybody wants to sell. Market is irrational.
I thought buying it at a steep discount to the all time high make the risk worthwhile. However, looking at the closing price today which is something like 1.2+. Market obviously think otherwise.
Since the management has issued a firm denial and there is no concrete proof that the claim is correct. I would continue to hold the stock and looking forward to the bright future.
Maybe the hedge fund and short term player is bashing the stock down. When the stock goes up, everybody wants to buy. When it get beaten down, everybody wants to sell. Market is irrational.
Saturday, 28 July 2007
Finally it comes
This week, US market had the biggest drop of the year. It causes sell off in all the regional market. The long awaiting correction has come. STI is down by quite a big percentage. I hope it won't snowball to a big market slump.
Looking at the intensity of fall, market could remain volatile in the coming months. Stick to fundamental valuation, we should be able to ride out this volatile period. Invest in company which is solid, has a bright prospect and by not over paying, when the correction is over, it should come back.
Eyeing the following stocks to be added into my portfolio:
BH Global
Swiber
FJ Benjamin
Guangzhao IFB
Sino Env
Looking at the intensity of fall, market could remain volatile in the coming months. Stick to fundamental valuation, we should be able to ride out this volatile period. Invest in company which is solid, has a bright prospect and by not over paying, when the correction is over, it should come back.
Eyeing the following stocks to be added into my portfolio:
BH Global
Swiber
FJ Benjamin
Guangzhao IFB
Sino Env
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