Technical Trades on Thai Beverage dtd 6 Dec 2013

Entry point @ 0.495
Stops @ 0.47
Target @ 0.53        Risk Reward Ratio: 1.4
Trade type: Long (Countertrend)
Minimum Vol => 15.9 mil


DISCLAIMER The ideas expressed in this blog should not be used to buy or sell the securities, commodities or assets mentioned. The accuracy or completeness of the information provided cannot be guaranteed. Readers should carry out independent verification of information provided. No warranty whatsoever is given and no liability whatsoever is accepted for any loss howsoever arising whether directly or indirectly as a result of actions taken based on ideas and information found in this blog.

Technical Analysis on Tech Oil&Gas

Entry point @ 0.68
Stops @ 0.63
Target @ 0.75        Risk Reward Ratio: 1.4
Trade type: Long
Minimum Vol => 1.44 mil



DISCLAIMER The ideas expressed in this blog should not be used to buy or sell the securities, commodities or assets mentioned. The accuracy or completeness of the information provided cannot be guaranteed. Readers should carry out independent verification of information provided. No warranty whatsoever is given and no liability whatsoever is accepted for any loss howsoever arising whether directly or indirectly as a result of actions taken based on ideas and information found in this blog.

Dogs of STI

A dividend idea that we can look into is known as "Dogs of the DOW".

Taken from Wikipedia definition:

The Dogs of the Dow is an investment strategy popularized by Michael B. O'Higgins, in 1991 which proposes that an investor annually select for investment the ten Dow Jones Industrial Average stocks whose dividend is the highest fraction of their price.

Proponents of the Dogs of the Dow strategy argue that blue chip companies do not alter their dividend to reflect trading conditions and, therefore, the dividend is a measure of the average worth of the company; the stock price, in contrast, fluctuates through the business cycle. This should mean that companies with a high yield, with high dividend relative to price, are near the bottom of their business cycle and are likely to see their stock price increase faster than low yield companies. Under this model, an investor annually reinvesting in high-yield companies should out-perform the overall market. The logic behind this is that a high dividend yield suggests both that the stock is oversold and that management believes in its company's prospects and is willing to back that up by paying out a relatively high dividend. Investors are thereby hoping to benefit from both above average stock price gains as well as a relatively high quarterly dividend. Of course, several assumptions are made in this argument. The first assumption is that the dividend price reflects the company size rather than the company business model. The second is that companies have a natural, repeating cycle in which good performances are predicted by bad ones.

We can applied this concept to STI market, thus we'll called it "Dogs of STI". Please note this cut-out is based on THE BUSINESS TIMES dtd 23 November 2013.

DISCLAIMER The ideas expressed in this blog should not be used to buy or sell the securities, commodities or assets mentioned. The accuracy or completeness of the information provided cannot be guaranteed. Readers should carry out independent verification of information provided. No warranty whatsoever is given and no liability whatsoever is accepted for any loss howsoever arising whether directly or indirectly as a result of actions taken based on ideas and information found in this blog.

Using Free Stock Scanners

Learning to use a stock scanner is a handy tool to scan for 700++ Singapore stocks for ideas. Google Finance has provided such a avenue that we can shorten the time we needed to look for an idea to buy a stock.

Using a few criteria which we can easily set, we can scan for small cap, mid cap or large caps stocks with dividend setting, net margin or some other criteria. Happy experimenting!

DISCLAIMER The ideas expressed in this blog should not be used to buy or sell the securities, commodities or assets mentioned. The accuracy or completeness of the information provided cannot be guaranteed. Readers should carry out independent verification of information provided. No warranty whatsoever is given and no liability whatsoever is accepted for any loss howsoever arising whether directly or indirectly as a result of actions taken based on ideas and information found in this blog.

Creating a STRUCTURE PORTFOLIO

When the number of stocks you owned has increased in holdings, it will be more difficult to manage. Do you sell all in a bear market or add more in a bull market? This let me to layout a proper structure so you can manage your own portfolio with ease.

A structure portfolio which I consider for a long term holding and low risk model is to have a 70%-30% segregation. This means that 70% of our stock portfolio consists on Dividend stocks while 30% consists of Growth stocks. In layman terms meaning, for a group of 10 counters, 7 stocks is dividend stocks while 3 stocks are stocks that don't pay a dividend but has good potential to grow in the future. This setup, in my own opinion is suitable for those in the 40-50s age range while those below can consists of a strategy of using 60%-40% range. I do not advocate a 50%-50% range as your portfolio are exposing to higher risk.

For those above 50s, you might wanna consider a 80%-20% strategy. While those above 60s, a 90%-10% portfolio is a good model as most will be retiring and they will be consuming what they have saved over the past 30 years of working life.

This structure portfolio which i have lay out is very conservative and even if the market has gone down, you need not worry as you still have dividends income while balancing the growth stocks as it gets hit.

DISCLAIMER The ideas expressed in this blog should not be used to buy or sell the securities, commodities or assets mentioned. The accuracy or completeness of the information provided cannot be guaranteed. Readers should carry out independent verification of information provided. No warranty whatsoever is given and no liability whatsoever is accepted for any loss howsoever arising whether directly or indirectly as a result of actions taken based on ideas and information found in this blog.

Analysis on Straco Corporation

Straco listed on 20 Feb 2004

Financial Data

Yr                  Earning/Share                  Revenue              Net Profit % Margin
2012                  2.32c                          55.198 mil                 35.7%
2011                  1.91c                          46.122 mil                 35.8%
2010                  2.15c                          51.571 mil                 36.2%
2009                  1.02c                          34.543 mil                 25.6%
2008                  0.89c                          32.300 mil                 23.9%
2007                  0.71c                          24.173 mil                 25.6%
2006                  0.39c                          18.504 mil                 18.2%

Other Data

Cash Bal: 101.148 mil
Debt: NIL
Shares Issued : 843,739,580
Treasury Shares : 25, 190,000
NAV: $0.1823
Div Yield: 2.8%

Business Model

The Group has been one of the few overseas companies that have managed to build up significant presence and influence in the tourism industry in China. The Group showcases high quality tourism-related projects, incorporating entertainment, education and culture to create a unique experience for visitors and audiences. These projects include large-scale public aquariums, cable-car facilities, the protection and redevelopment of historical sites and production of cultural entertainment shows.

http://straco.listedcompany.com/

Opinion

Having seen it few qtrs of report, this company is positive on the growing track. It presented a good margin on its net profit and healthy cash balance with ZERO debt.

Conclusion

Overall, the price of the its stock is selling at a premium but could be worth a look as we can compare with OSIM as it has a low book value but good earning power. As long as it has the pricing power, this company is good to accumulate for the long term.



DISCLAIMER The ideas expressed in this blog should not be used to buy or sell the securities, commodities or assets mentioned. The accuracy or completeness of the information provided cannot be guaranteed. Readers should carry out independent verification of information provided. No warranty whatsoever is given and no liability whatsoever is accepted for any loss howsoever arising whether directly or indirectly as a result of actions taken based on ideas and information found in this blog.

Follow-up News on CWT

CWT: 3Q13 Net Profit Down 53% To S$19 Million.

06 Nov 2013 17:11

CWT Limited reported financial results for the quarter ended September 30, 2013. The Group reported revenue of S$2.2 billion, gross profit of S$61.1 million, profit after tax of S$19.2 million and earnings per share of 3.18 cents. The Group also incurred administrative expenses of S$38.7 million, finance costs of S$10.3 million and reported other income of S$0.8 million...

http://cwt.listedcompany.com/news.html/id/378914



DISCLAIMER The ideas expressed in this blog should not be used to buy or sell the securities, commodities or assets mentioned. The accuracy or completeness of the information provided cannot be guaranteed. Readers should carry out independent verification of information provided. No warranty whatsoever is given and no liability whatsoever is accepted for any loss howsoever arising whether directly or indirectly as a result of actions taken based on ideas and information found in this blog.