Trading Strategy for 2009

Happy New Year to all my reader(if there is still any)It has been a while since my last post.
2008 has been a turbulence year for investors. Many have suffer financial losses and I am no exemption. In the year 2009, my focus will be on REITs which have been battered badly. Many of the REITs have reach below IPO price. I do not see any upside for REITs for the short term as prices of property and rent will continue to fall. However, when the financial crisis is over and the economy start to pick up, share price of REITs will go up. Another factor that will push the share price of REITs up is inflation. We have not seen the last of raging oil prices, and when the economy pick up oil prices might be higher than the previous pick. Therefore REITs will provide a hedge against inflation. The problem now is that we do not know when that will happen.

Some of the Reits that i have been buying
Suntec
Fcommtrust

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

Pls click on the advertisment on the right hand side to show your support for the blog. Thanks

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

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

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

Click on the ad to show your support for my blog. Cheers

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.

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.