ComfortDelGro – What really matters in a Stock

Opps. I forgot to post yesterday

Passenger land transportation company | Started in 1970 | Operate in 7 Countries ?! (UK, Singapore, China, Australia, Malaysia, Ireland,Vietnam)

1)  IDENTIFICATION OF COMPANIES THAT ARE UNDERVALUED.

  • Price to book ratio : 2.406 (140% above premium)
  • Price to earning ratio : 17.98 (Under performing compared to industry standard of 25)

2)  LEARN ABOUT THEIR NUMBERS

  • Debt To Equity : 15.319 ( Very low reliance on financing for growth)
  • Growth Performance : 5.08
  • Current Ratio : 1.276 (Ability to liquidate in peace)
  • Cash flow per share : 0.3563 ( You’re paying $2.6)
  • Above average management ability ( Increasing Dividend payout | Stable growth in net income – with increasing payout ratio| But still incurring losses on their investment – reducing)screen-shot-2016-10-31-at-8-40-13-amscreen-shot-2016-10-31-at-8-40-03-am

Technical Analysis

Market short-term trend is still trending to the bear (down) side, if market breaks the 2.6-2.5 zone, Market have a stronger probability to trend down longer. But if market reverse and break the zone of 3 – 3.15, Market might indicate a strong sign of reversal to the bull (Up) Side.

All in all, Comfortdelgro has good financial statement that I would want to be invested into it…But not at a price where the it’s overvalued…. But you will never know… with SMRT getting privatised…hmmm… What would you do??

“+1 Knowledge point”

“+1 Future PI”

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Great Eastern Holdings Limited – What really matters in a Stock

Is insurance company safe?

Founded in 1908 | $60 Billion in asset | Offices in Asia

1)  IDENTIFICATION OF COMPANIES THAT ARE UNDERVALUED.

  • Price to book ratio : 1.573 ( 57.3% overpriced)
  • Price to earning ratio :  12.474 ( Under performing across industry standard of 14.10)

2)  LEARN ABOUT THEIR NUMBERS

  • Debt To Equity : 6.17% ( Super low reliance on financing for growth)
  • Growth Performance : 9.14 % 
  • Current Ratio : 2.159 ( twice the ability to pay off its short-term debt and long term obligations)
  • Cash flow per share : 1.16( Remember you’re paying $20.17a share)
  • Average management ability ( Increasing Dividend payout | Drop in net income | Increase in financing cashflow)screen-shot-2016-10-28-at-8-04-45-amscreen-shot-2016-10-28-at-8-04-40-am

Technical Aspect

Current market price is at a strong support resistance that is still seeking demand for buyers to push price high. If market break previous price high of $25, market have a higher tendency to trend higher, If market breaks the current level of $20, market have a stronger tendency to trend lower.

Would It be a buy for me?? With the stock being overvalued by 57% and a growth rate below industry standard, it will be a no for me. Look at the cashflow on 2012, Investing is at negative 2,023 (2/3 draw down of 2011 gains) and 2014 927.1(3.5 times of 2013 gains) and market price is still going up??

But all in all……. I’m just being very conservative  kiasu….

“+1 Knowledge point”

” Probably a future PI 5-10 years time”

What should you do during these poor economic situation??

lol everyone say save save save but everything so expensive how to save? 

“Economy is not expected to pick up in the near term | Weak demand in global trade | 2017 to expand at a mediocre pace” No significant pick-up in Singapore’s GDP growth  (ChannelNewsAsia)

Basically everything is not looking well….

  1. Strike out all irrelevant expenses ( Yea you don’t have to cab on a rainy days….unless got Uber promos….of course) – Learn where to bank you Loose Coins/Change here
  2. Have a purpose/meaning/goal to save money (It makes it easier)
  3. Seek opportunities to invest (You probably get deals at a better price)

It is always in adversities you will have the best opportunities that will appear infront of you! Anyway I have decided to purchase 2,400 units of Starhill ! Why? because it’s going be holiday period and I wouldn’t want to be socially pressure to buy buy buy other rubbish that is not good for my future of course……

“+1 Knowledge point”

First – What really matters in a REIT

Patience is the key to achieving your goals in the shortest time

Dividend Yield 6.11% | High percentage of properties in Indonesia and the rest is in Singapore and South Korea | Started in 2006

  1. IDENTIFICATION OF COMPANIES THAT ARE UNDERVALUED.

    • Price to Book Ratio : 1.246 (24.6% overpriced)
    • Price to Earning Ratio : 15.536
  2. LEARN ABOUT THEIR NUMBERS

    • Gearing : 46.478 ( Below average reliance on financing for growth)
    • Wale : 10.8 Years ( Healthcare)
    • Current Ratio : 1.749 (Ability to pay of its short term debt and long term obligations)
    • Growth Rate :  -12.80% (over 5 years)
    • Cash Flow Per Share : – Not provided –
    • Average management ability ( Increasing dividend payout | Reducing COGS| Reducing in financing | Net income decreasing….hmmm..Prolly due to the higher payout ratio… 40% increase)screen-shot-2016-10-23-at-9-44-01-pmscreen-shot-2016-10-23-at-9-43-56-pm

I would purchase this Reit if only the price is lower….as there are still quite a risk I have to bare due to the high reliance on the Indonesian market..especially when Government is doing something about foreign property investments… Remember value is what you should be seeking for… why wanna pay x2 the price when its popular…. we cannot be kiasu…

“+1 Knowledge point”

“+1 Future PI”

How to reduce the need for health insurance?

Everyone is saying that prevention is better than cure!

This blog post will talk about the underlying power of fruits and vegetables... but everybody also say if sick must see doctor.. they say it is better…but ultimately would you rather pay for fruits or insurance or medical bills???

how much can fruits cost…as compared to insurance or medical bill….

  1. Do you know you can cure cancer with Fruits & Vegetables?…

    Shit this guy talking like some MLM bastard……. No but seriously have you heard of Raw Food treatment? ( Ya it is non-cooked food)…. HUH?!?!

    • What you need to know:
      • Only selective bunch of vegetables and fruits can be used for this Treatment/Diet
      • You have to first understand the root of your issue (What are you lacking of)
      • Cooking food destroys 100 percent of all enzymes in a food. Because many foods contain the necessary enzymes needed to digest that food (and get the nutrients out of the food), cooking food places a great burden on our body and does not allow you to get as many nutrients out of the food. Actually, cooking food does damage to the value of the food in over two dozen different ways. – cancertutor.com
      • Juicing allows you to receive more nutrients from Vegetables and Fruits easier
      • Carrot is the world best cancer fighting vegetable of all! ( You can search it!)
  2. Understand the different power of Fruits and Vegetables

    As there are too many Fruits and Vegetable for me to list….. I’ll be linking them up for you reference

But you will never know when anything will come to you….”WHAT IF YOU ARE DESTINED TO GET CANCER?”….. Then let me ask you another question….. ” WHAT IF YOU ARE DESTINED TO DIE?”… just joking!… Anyway, looking back into the past where humans have a longer life span than now…. is it really cause of pollution or due to scientific advancement?…. we are on a never ending conquest to unravel what went wrong…why so loh soh today….

All in all, learning that people in the past uses fruits and vegetables to cure cancer why would you want to pay for insurance? because you have no time? because you’re lazy?…. I’m too… what can you do??….. Pre-cut the fruits on weekends and pack them in a “Vaccum container” / Lock-Lock container and consume it on ur weekdays. VOLA

“Remember Health = Wealth”

“+1 Knowledge point”

This post was inspired and tributed to my mum’s bestfriend (since secondary school), as she was recently stopped for cancer treatment by the doctor due to her weak health conditions. As we hope for the best, let us be reminded of what is really important to us.

Ascendas – What really matters in a REIT

$2.42 per share.. Overpriced??

6.63% Dividend Yield | Properties in Singapore/China/Australia | Mostly business park

  1. IDENTIFICATION OF COMPANIES THAT ARE UNDERVALUED.

    • Price to Book Ratio : 1.13
    • Price to Earning Ratio : 19.47
  2. LEARN ABOUT THEIR NUMBERS

    • Gearing : 63.478 ( Above average reliance on financing for growth)
    • Wale : 5.2 Years (Above normal wale years)
    • Current Ratio : 0.241 ( Unable to pay off short-term debts and long term obligation if liquidated)
    • Growth Rate :  -15.14% (over 5 years)
    • Cash Flow Per Share : 0.1289
    • Poor management ability ( Increasing dividend payout | Net income decreasing| Heavy increase in financing of cashflow )screen-shot-2016-10-20-at-11-11-22-amscreen-shot-2016-10-20-at-11-11-16-am

Yes after the book, Intelligent Investor, I’m only going to buy companies that are undervalued! Therefore, this company not being undervalued….poor growth rate….high reliance on financing…. poor gearing ratio?? 0.241 is nuts man…. I won’t be buying

“+1 Knowledge point”

How to be an Intelligent Investor (Benjamin Graham) – Part 2

Just buy and buy, everything will eventually go up

Content shared here are learnt, Copied and paraphrase from the book Intelligent Investor by Benjamin Graham

  1. The power of Financial History

    “Financial History says clearly that the investor may expect satisfactory results, on the average, from secondary common stocks only if he buys them for less than their value to a private owner, that is, on a bargain basis”

    • Note to self : “A great compnay is not a great investment if you pay too much for the stock”
  2. Thoughts about market timing

    “In the financial markets, hindsight is forever 20/20, but foresight is legally blind. And thus, for most investors, market timing is a practical and emotional impossibility”

  3. Companies with fast and big growth

    “The bigger they get, the slower they grow. A $1 billion company can double it sales fairly easily; but where can a $50 billion company turn to find another $50 billion in business?”

  4. When should you buy growth stock?

    “Growth stocks are worth buying when their prices are reasonable, but when their price/earning ratio go much above 25 or 30 the odds get ugly: Journalist Carol Loomis found that from 1960 through 1999, only eight of the largest 150 companies on the Fortune 500 list managed to raised their earnings by an annual average of at leat 15% for two decades. The reasearch firm of Sanford C. Bernstein & Co. showed that only 10% of large U.S. companies had increased their earnings by 20% for at least five consecutive years; only 3% had grown by 20% for at least 10 years straight; and not a single one had done it for 15 years in a row.

  5. Benjamin’s method Net nets

    ” To see whether a stock is selling for less than the value of net working capital.”

    • Take the company’s current assets, subtract its total liabilities, including any preferred stock and long-term debt.
  6. Consequences of buying overvalued stock

    “Prices well above their net asset value (or book value, or ” balance-sheet value”). In paying these market premiums the investors gives precious hostages to fortunes, for he must depend on the stock market itself to validate his commitments”

    • “The premium over book value that may be involved can be considered as a kind of extra fee paid for the advantage of stock-exchange listing and the marketability that goes with it”
    • Note to self: ” A caution is needed here. A stock does not become a sound investment merely because it can be bought at close to its asset value.”
  7. What does price fluctuation means?

    For true investor, it provide him/her with an opportunity to buy wisely when price fall sharply and to sell wisely when they advance a great deal.

  8. What is an investor’s primary interest?

    The investor’s primary interest lies in acquiring and holding suitable securities at suitable prices.

    • Note to self : “Instead recognize that investing intelligently is about controlling the controllable” – E.g Brokerage cost, trading frequency, patience and ownership cost
  9. Benjamin Graham’s Value Calculation Method

    Value = Current (Normal) Earnings x (8.5 plus twice the expected annual growth rate) The growth rate use should be in the range of 7 – 10 years

There are still many content that has been taught here that are not shared due to the length of it! Some of the things that are not shared includes, what kind of debt should companies have or elements should you consider before purchasing them, examples of comparison between big corporation, deeper example and explanation of how Benjamin purchases a stock, How to use price multiplier, idea price to earning ratios and etc.

Remember that contents here are learnt, copied and paraphrase from the book and all credits should go to him! 

If you’re gonna ask which book was it…. It is Intelligent Investor, Revised Edition, (Updated with new commentary by Jason Zweig” – The definitive book on value investing ( Preface and appendix by Warren E. Buffet)

“+1 knowledge point”