Tuesday, August 12, 2008

macCookPFS-Undervaule gem

Due to the pessimism of the investor, a lot of stocks have fallen below their intrinsic value. One of them would be MacCookPSF. Net tangible asset stands at $1.02 per share while share price is trading at $0.49 which is approx 52% discount.
If dividend payout is the same as last year, dividend yield would be approx 25%. Which mean that if you hold on the stock for 4 years (assume dividend payout do not change) you would have gotten back the sum of capital invested. Only if you are willing to hold on that long

$0.49- share price as at 110808

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Tuesday, July 8, 2008

High Yielding stocks

High dividend stocks should form part of your portfolio and even more so when the market is volatile. Having stocks with high yield for the long term can be very rewarding. Ten year worth of dividends is not something to be ignored.

Dividend yields function as a reliable forward-looking predictors of stock prices. high dividend yield are associated with a deeply oversold market and vice versa. Eventually, the market will recognise that and the price will correct itself.

So which are the high dividend yielding stocks in the market right now.
1) Allco reits
2)Suntec reits
3)UOB kayhian
4)Gk goh

Wednesday, June 25, 2008

Security analysts-Should u trust them?

Why is it that some of the highly trained and well paid professionals have failed in their analyst?They will ask you to buy when the price is high and sell when the price is low. It can be attributed to four factors:
1) The influence of ramdom events
2) The productionof dubious reported earning through "creativity" accounting
3) The basic incompetence of many of the analyst.
4) The loss of the best analysts to the sale desk or potfoilio management

Friday, June 13, 2008

Asia the next superpower

Saw a article in times magazine saying that US might lose its place as a super power to Asia countries. Here are some the reasons why:

1) More Asian names in Forbes richest list

2) The biggest ferris wheel is in Asia

3) The biggest casino is in Asia

4) The tallest building is in Asia

5)The rise of China and india

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Thursday, May 22, 2008

Low consumer confidence in US and record high oil prices.What you should do?

American consumers' confidence slid further in the latest week, as escalating gasoline prices and the weakening economy drove the measure near its historical low, a report showed on Tuesday. The ABC News/Washington Post Consumer Comfort Index fell to -49 in the week ended May 18
from -47 the previous week, just one point away from its all-time low of -50 hit in February 1992. The index, started 22 years ago, ranges from -100 to +100. 'Surging (gasoline) prices correlate strongly with falling confidence, and gas is up another 7 cents this week to a new high of an average US$3.79 a gallon with the holiday weekend approaching,' the news outlets said in a statement. 'The weakened economy more generally, along with the ongoing credit and housing market crises, are adding to the damage.' Earlier on Tuesday, Investor's Business Daily and TechnoMetrica Market Intelligence said their IBD/TIPP economic optimism index rose to 40.3 in May from 39.2 in April, which was the lowest in the index's history. In that gauge, a reading below 50 indicates pessimism.
Oil soared to a record above US$135 a barrel as worries about US tensions with Iran heightened speculative fever in a market driven by concerns about tight global supplies and strong demand.

Market has become more volatile and unpredictable, investors should take profit in the month of may and adopt a wait and see attitude. Or switch to more defensive stock. I believed that stock prices should fall i the coming months and investor to scoop up some bargains.

Tuesday, April 22, 2008

Contemplating my buy on FJBen

Current valuation for Fjben is looking quite attractive with current PE ratio standing at 6.9. Fj ben has hit a low of 0.39 from a high of 95 cent. Earning per share has been increasing steadily since 2004. And I believe that it will continue to increase in the 2 to 3 years ahead as there are many major events taking place that will attract a substantial amount of tourists to Singapore, that is beneficial to Fjben retail business.

Tuesday, April 1, 2008

My take on the Singapore economy

The overall economy of Singapore is growing at a strong healthy rate with last year GDP growth figure hitting 7.7%.But many economist forecast growth will slow down in between 4 to 6 percent this year due to sub prime mortgage trouble in US, and might get lower if US goes into recession. However, there is still light in the tunnel. The remaking of the Singapore story is still intact. Singapore’s transformation into a global city and its evolution into a mother of all hubs- financial/wealth management, tourism, education, healthcare, research and development are coming along nicely.
That and the development of the two integrated resorts with casinos and the Republic hosting Formula One race and Youth Olympics will set to boost the general economy of Singapore especially the tourism and retail industry.
All in all, we set to look a slower growth rate for the 2008. After two years of exuberant growth in the economy, Singapore is looking to move towards the mature growth stage in the coming years. A recession in Singapore is highly not likely in the next 2 to 3 years. What holds after the next 2 to 3 years for Singapore economy is anybody guess.

Thursday, February 28, 2008

Stick with predictable earning companies in times of uncertainty

Right now we still have no idea whether US will go into a recession. However, more and more signs are signalling that US is heading towards recession. I would like to urge investors to take a cautionary appoach towards investing, invest in companies with predictable earnings. Reits and business trusts are safe haven where investors to park their money in times of uncertainty. Cheers

Monday, February 11, 2008

My Latest Buy=Allco

AllcoREITS.. It is a undervalue stock. Net tangible asset per share is twice the amount of price per share.

Saturday, January 12, 2008

When US sneezes,Asia now does not catch cold

It used to be when US sneezes, Asia catches cold but now it may not be true anymore.
Asian economies have become less dependent on US economy though tot completely immune to its changes.
Asia growth remained cautiously optimistic. Asia had increase in export diversification away from the US.
For singapore, there is still growth to be seen. Order book for construction companies have been soaring. Lian Beng has just reported that its profit has increase fourfold.
Occupancy rate for hotels in Singapore has been increasing and will be higher when the integrated resorts are ready.
Outlook for retail , telecommunication, transport sectors remain optimistic.
with the recent sell down, investors can buy in when there is fear and sell when the market recover and when greed take over investors.

Thursday, January 3, 2008

Oil related companies

With oil prices hitting a all time high, inveator may want to consider to invest in these oil related companies.
Blue Chips
Cosco Corporation
Keppel Corporation
SembCorp Marine
Ezra Holdings
Jaya Holdings
KS Energy
Small Caps
Beng Kuang
See Hup Seng
SSH Corporation
Swissco International


With oil hitting US$100 per barrels, get ready to embrace for more bad news ahead in the year 2008.