Bukit Sembawang Estates Limited – What really matters in a Stock?

“Bukit Sembawang Estates Limited, an investment holding company, engages in the property development, investment, and other property-related activities primarily in Singapore. It operates through two segments, Property Development and Investment Holding. The company develops residential properties comprising landed homes, private condominiums, and apartments. It also invests in and manages office buildings. Bukit Sembawang Estates Limited was founded in 1911 and is based in Singapore.” – SGX.com

1)  IDENTIFICATION OF COMPANIES THAT ARE UNDERVALUED.

  • Price to book ratio : 1.348 (34.8% Above fair value)
  • Price to earning ratio : 23.762 ( Above industry standard – 22.68)

2)  LEARN ABOUT THEIR NUMBERS

  • Debt To Equity : – not disclosed-
  • Growth Performance : – 16.91%
  • Dividend Yield : 0.73% [ 5 years ]
  • Current Ratio : 10.008
  • Book Value per share : 4.93
  • Cash Flow per share :  0.2804
  • Poor management ability ( Positive dividend growth  | Positive & Strong net profit margin  | overall Positive cashflow within its business –  reducing in alot of financing while incurring alot cost on investing)Screen Shot 2017-08-10 at 3.56.15 pmScreen Shot 2017-08-10 at 3.56.10 pmScreen Shot 2017-08-10 at 3.56.02 pm

3) Technical Analysis

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Price action on the monthly chart, shows that bullish momentum has only started building up since 2009. Since then, market has seems to have substantial buyers coming in the stock. A current entry will put u in a 1:3.2 RR ratio. Market is currently testing previous key level.

4) Would I be vested into it?

Yes… but not now! Company seems to be financially sound with management maintaining good ratios with high reinvestment of its cash. Technically, price doesn’t make it a justifiable buy for me.

Share with me your thoughts on this stock!

“+1 Knowledge Point”

“+1 Potential PI”

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# 16 USDCAD [Updated – letting the market decide my trade ]

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Previously I shared with many to look out for DollarCad, as market was testing key level and was about to prove a directional movement. Last month, on the Monthly Chart, market close below bullish retracement low. This signifies a high probable bearish breakout on this market pair. Additionally, market channel has obviously shown that candlestick is trading out of the zone.

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Similarly, Weekly Chart, price action shows that market has already broken off bullish channel with it failing to break weekly key level. The price action on recent DollarCad indicates that market would have a decent profit taking on the retracement. This was what caught my attention.

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[Daily Chart] In order to be apart of the retracement, I’ve to get a highly probable sign to be entering. Obviously, who would want to trade in the opposite general direction. Last Wed, I noticed price action broke off consolidation range with a strong bullish momentum which encouraged an entry to be made.

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On the 4 Hour Chart, a complete bullish candlestick hit my limit order with a 1:2.84 RR ratio.

Hopefully everyone caught this piece of price action! 🙂

 

The Hour Glass – What really matters in a Stock

“The Hour Glass Limited, an investment holding company, retails and distributes watches, jewelry, and other luxury products in South East Asia, Australia, and North East Asia. It operates boutiques. The company also invests in properties. The Hour Glass Limited was founded in 1979 and is based in Singapore.” – SGX.com

1)  IDENTIFICATION OF COMPANIES THAT ARE UNDERVALUED.

  • Price to book ratio : 0.995 (0.005% Below fair value)
  • Price to earning ratio : 9.772 ( Below industry standard – 38.83)

2)  LEARN ABOUT THEIR NUMBERS

  • Debt To Equity : 10.9%
  • Growth Performance : –2.34% (5 Years)
  • Dividend Yield : 3.05%[ 5 years]
  • Current Ratio : 4.32
  • Book Value per share : 0.6787
  • Cash Flow per share : 0.0811
  • Above average management ability ( Positive dividend growth  | Average net profit margin | overall Positive cashflow within its business – high cash reserve : 39.2%)Screen Shot 2017-08-03 at 5.23.50 pmScreen Shot 2017-08-03 at 5.23.45 pmScreen Shot 2017-08-03 at 5.23.39 pm

3) Technical Analysis

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Price action on the weekly chart showed that the stock is in a bearish downtrend, with recent short-term bull run being unable to break key price level. The stock highest price was $0.92 in 2014 and has since been making lower lows. This might be due to the geopolitical change in purchasing behaviour among consumers. A live market order would result in a 1:0.72 RR.

4) Would I be vested into the company?

Yes & No! The stock fundamentals tends to show that the company is under a good management ; ability to sustain growth in different aspect and to keep gearing ratio low when times are hard for brick n mortar while making money. Being a strong believer in price, it puts me in a tight position for a buy order now. Ill definitely be back for u:)

“+1 Knowledge point”

“+1 P.I”

#15 EURCHF

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Monthly chart, market pair has been in a bearish trend since 1990 and has been trading with very little buyers. What sparked at interest in me to monitor this chart was the sudden price movement last month, where it broke consolidation pattern since 2014.

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Price action on the  Weekly Chart proved that market has broke key level with a strong momentum. Additionally, market has a large recover leg space for a huge profit taking.

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Daily Chart, price action that broke previous bearish candlestick seems to state there isn’t much sellers into this pair as market continues to retrace to key level.

Hope everyone did catch this pair 🙂

CPF – Aged 54 & below

This post is meant to summarised the importance of CPF in your early years before age 55.

  1. Mandatory Interest Rate
    • OA (2.5 – 3%)
    • SA (4 – 5%)
    • MA (4% – 5%)
  2. Things you can do to increase your CPF money
    • CPFIS
    • PROPERTY (buying two or more property for investment purposes)
      • Cap at valuation / purchase price limit
    • LRIS ( In the future)
      • Diversified products
    • Voluntary contribution
  3. CPF is one way to reduce your income tax
    • Voluntary contribution to your own account (capped at $7k relief)
    • Contribute to your relatives (Additional $7k)

Q&A

  1. How to obtain higher interest rate (+1%) in my CPF account?
    • It is included into the mandatory interest rate – Pointed out by bedokian
    • Combined account has to have $60k (OA ; $20k / SA ; $40k)
  2. Should I be investing my CPF money??
    • CPFIS, requires a min sum of $20k before being able to invest.
    • There are limited options for investment
    • Cost is around $2 per quarter for each counter
    • Remember the growth of your investment is not certain but the interest rate is, unless the opportunity for you to invest has far greater value and certainty, I would only recommend you to do so.
  3. Should I use my CPF money to pay for my house or property investment?
    • Ideally you must know the lifestyle you do want to live when you get a home.
      • Are you the type who wants to keep upgrading?
        • Then you need to know that you have to pay accrued interest on your house when you sell them off!
        • Resale levies have to be considered for all BTOS (but if you have taken any Housing Grant you might be subjected to it)
      • As a form of investment into properties?
        • The interest tends to be alot higher and risker than normal investment with CPFIS

 

Read more :

“+1 Knowledge Point”

 

Rowsley Ltd – What really matters in a Stock

“Rowsley Ltd., an investment holding company, engages in the diversified real estate business in Singapore, Malaysia, the United Kingdom, the People’s Republic of China, the Middle East, and internationally. The company’s Property Development and Investment segment engages in the development and construction of development property for sale and investments; and the holding and management of investment properties. Its Architectural, Engineering and Town-Planning segment provides architectural, master planning, urban design, civil and structural, and mechanical and electrical engineering services, as well as interior design and project management services. The company’s Hospitality segment is involved in the hotel operation and management activities. Its Investments segment holds investments in equity securities, as well as provides management services. The company also provides consulting engineering services. Rowsley Ltd. was founded in 1950 and is based in Singapore.” – SGX

Comparison will be with Kingsmen Creatives (5MZ)

1)  IDENTIFICATION OF COMPANIES THAT ARE UNDERVALUED.

  • Price to book ratio : 1.275 (27.5% Above fair value) | 1.023
  • Price to earning ratio : – ( Below industry standard – 29.09) |9.027

2)  LEARN ABOUT THEIR NUMBERS

  • Debt To Equity : 28.65% | 9.4%
  • Growth Performance : – 1%| -6.81%
  • Dividend Yield : -Doesn’t give out-| 3.41%[ 5 years]
  • Current Ratio : 1.897 |1.688
  • Book Value per share : 0.0863
  • Cash Flow per share : -0.0122
  • Poor management ability ( dividend growth  | Neg net profit margin | Neg Net Income  | overall Neg cashflow within its business)Screen Shot 2017-07-29 at 11.00.10 amScreen Shot 2017-07-29 at 11.00.02 amScreen Shot 2017-07-29 at 10.57.33 am

3) Technical Analysis

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Price action on the monthly chart seem to have formed a head and shoulder pattern with a bearish strength characteristic. Look at the huge sell off at $0.2, it might be a squeeze play by institutional traders. A live market order would have a 1:0.4 RR.

4) Would I be vested into this?

Nope, numbers are obviously very questionable, technical shows alot of big dirty players in this stock pair (is a good thing) but it doesn’t give me a good RR ratio for an entry. This stocks requires a thorough research on the company strength and it ability to be sustainable in a longer time frame.

Personal thought: What is the company really doing with all its asset? – Its a really big comapny

“+1 Knowledge point”

#14 – EURUSD (Update)

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Price action of the Monthly Chart, shows that euro is in a bullish rally against the dollar, as you can see price is in a long awaited key level (after 3 years). Additionally, the bearish channel has broken with a strong bullish momentum.

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Weekly chart is aligned to the monthly as the long term bearish channel was broken with two key weekly support & resistance levels broken.

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The retracement on the Daily trend are false breakout to build a stronger buying momentum. As you can see market tend to pull back heavily after each pull back, and as price raise to a higher level, the pull back gets shorter & less steeper.

Screen Shot 2017-07-29 at 10.26.57 am.jpg

A market entry now will put you in a 1:2.3 RR ratio on the 4hour chart, but i wouldn’t want to be entering so fast as there’s a very short leg space before market shows a strong movement.

Hopefully you guys caught some of the rally, I was only in AUDUSD:)

Would love to hear from all of you!