Monday, September 30, 2013

US Government shutdown: effect on Singapore Stocks Markets

Singapore Stocks headed as much as 1.32% south today (30 September 2013), in line with the direction of the regional markets as the global markets weighed in the political drama of US as the US government debated on the US debt ceiling issue. Such a drama is really not new to many investors, including myself as we have seen how the US Democrats and Republicans debated before, before passing a resolution in the nick of time, before the timeline of a milestone that is important to the global stocks markets and then the stock markets worldwide will rebound. So is the US government going to be shut down?

Sunday, September 29, 2013

AsiaPhos IPO Stock

AsiaPhos IPO Stock AsiaPhos has currently launched its IPO of 122 million Invitation shares priced at S$0.25 each for its proposed listing on the Catalist Board. Based on the Invitation price of S$0.25, the post-Invitation market capitalisation of AsiaPhos will be S$200 million. AsiaPhos will be the first company on SGX listed which focuses on exploring and mining phosphate in China with the ability to manufacture and produce phosphate-based chemical products. The trading of AsiaPhos’ shares is expected to commence on a “ready” basis at 9.00 a.m. on 7 October 2013.

The listing of AsiaPhos to me, seems to add another listed company in the mineral mining companies on SGX which have been seeing quite a keen interest among Singaporean investors. However, in AsiaPhos, what the element that is mined is not Gold but Phosphate. Also, compared with other mining companies which have operations spread out among several countries, from the prospectus of AsiaPhos IPO, the operations of AsiaPhos is entirely in Sichuan province, a province which has seen the wrath of nature before in Sichuan Earthquake; perhaps this is why in the prospectus, it was mentioned that the production and operations facilities of AsiaPhos are built to withstand the shocks of earthquakes.

Looking at the IPOs scene here, it is not always that an IPO stock heads north on the first day of its trading debut, hence for traders who are actually IPO punters, this is something that I wish to point out.

Monday, September 23, 2013

Is it a good time to buy Singapore Stocks now?

Singapore Stocks ended 0.72% south today (on 23 September 2013) with the benchmark STI at 3,214.25. As I have predicted, the euphoria of the local stock market over the continuation of the US $85 billion bond buying is superseded with attention of the market on the US debt ceiling matter and the EU-IMF audit of Greek fiscal performance and reforms. For the other factor of the Germany Election, I believe the impact of the election is not really weighing on the local markets as Angela Merkel should be able to win the election. Looking at the top 20 volume stocks today, we can see that the stocks are no large cap or blue chip stocks. I feel that for the time being, the local stock market should behave quite similar to today, moving and trading within a bound.

Thursday, September 19, 2013

How to Invest with US Stocks Tapering or not?

Before the Federal Reserves announced that it would not carry out the tapering of the Quantitative Easing (QE), analysts were reportedly saying that it is not a matter of whether the QE will be implemented but by how much the QE will be tapered. The most common figures analysts were saying was that the US$85 billions bond buying will be scaled back to US$75 billions with some even saying that the scaled back figure could be around US$65 billions. I think many investors are like me, quite surprised that Ben Bernanke said that there will be no tapering but as reported, he said something to the effect that the US Federal Reserves will monitor the financial situation before deciding whether tapering is needed. On a personal note, I somehow think that Bernanke may want to leave the decision of whether to taper or not to the next Chairman of the Federal Reserves. On a practical note, I think that the financial markets cannot keep running with monies being printed.

Selling stocks by the Millions and Billions

In a stock analyst report, it was reported that the Management and some key officers have been selling their stocks. SunMoon stock: 21 billion shares were sold; M Development: 309 million shares were sold; China Environment: 70 million shares were sold; Albedo: 7 million shares were sold; Eurotrophic: 5 million shares were sold and Ntegrator: 3 million shares were sold.

The rationale of the sales of the stock is not reported. But if I am a shareholder of the above stocks, knowing that the CEO, Management or substantial shareholders are selling their stocks of the companies they own by the millions or billions, it signals to me that even the key brass of the company is not being confident about their own stocks. If even the key brass is not confident about their own stocks, how could I a small retail investor be confident about these stocks?

FEDERAL RESERVES: NO TAPERING OF QUANTITATIVE EASING

Ben Bernanke, chief of US Federal Reserves said that there is no tapering of Quantitative Easing as the Federal Reserves will continue to purchase US$85 billion bonds per month. The statement from Ben Bernanke came at a meeting very closely watched by the world investing community as it is widely thought that the tapering of the Quantitative Easing will be announced at this US FOMC meeting. However, it was also reported that the Federal Reserves will not rule out considering the tapering at its next meeting.

Wednesday, September 18, 2013

YangZiJiang stock

YangZiJiang stock has been featured as one of the stocks to buy from the analyst reports which I have read. In general, analysts think that YangZiJiang stock will benefit from the recovery in the shipping industry with a steady supply and demand. The analysts have given the stock a “Buy” call with target price above the price that YangZiJiang stock is trading at.

The “Buy” calls on YangZiJiang stock have me recalling the time when I bought YangZiJiang stock some years back. Then, I was quite a newbie trader and after having bought 5 or 7 lots of YangZiJiang stock, I was quite surprised as the stock price of YangZiJiang stock headed south by quite a fair bit. I recalled that those were the times that stock prices did not fare very well but the stock prices of YangZiJiang stock went further south than the others. I could have held YangZiJiang stock for a bit more but I just could not want to see that this stock go more south anymore. Hence I sold the stock and incurred “trading lesson fees”. I think what could have propelled me to sell YangZiJiang stock is the fact that the stock is nevertheless a S-chip stock, though it belongs to the better S-chips stocks in SGX.

Tuesday, September 17, 2013

SAVE MONEY AND BE HEALTHY

With the stock market’s attention now on Federal Reserves’ decision, I believe investors will now want to wait until the decision of Federal Reserves is announced before making any new positions in the stock markets. So with the above backdrop, I believe I will touch on a light but nevertheless important topic (with regards to wealth creation) today on saving money and being healthy … in the form of a discussion on Breads!

Monday, September 16, 2013

SINGAPORE STOCKS MARKET COMMENTARY: 16th September 2013

Today (16th September 2013), Singapore Stocks headed north at the closing session impressively. Today is also Singapore’s Founding Prime Minister Lee Kuan Yew’s 90th Birthday. Before I continue further with my post, I would like to first say “Happy Birthday” to Mr Lee Kuan Yew and hopes that he will continue to inspire the younger Ministers and Members of the Parliament to continue to make Singapore our Best home on earth. Okay, after saying “Happy Birthday” to Mr Lee Kuan Yew, let me continue with the rest of the post.

Friday, September 13, 2013

EFFECT OF FEDERAL RESERVE’S FOMC MEETING ON SINGAPORE STOCKS

The US Federal Reserves will meet next week to discuss the Quantitative Easing (QE). Ben Bernanke, the Chairman of the Federal Reserves said on 19 June 13 that if the incoming data are broadly consistent with his committee’s forecast, his committee currently anticipates that it would be appropriate to moderate the monthly pace of bond purchases (currently running at US$85bln a month) later this year (2013) and if the subsequent data remains broadly aligned with their current expectations for the US economy, his committee would continue to reduce the pace of purchases in measured steps.

Wednesday, September 11, 2013

SUPER GROUP STOCK

SUPER GROUP STOCK is one of the Singapore stock market’s darlings, now worth more than $2 billion in market capitalization, thanks to the meteoric rise in its stock price. I have always wanted to know more about Super Group stock, beyond all the literature and text that are contained in its glossy annual reports and beyond the words of recommendation that are contained in the analysts’ reports.

Tuesday, September 10, 2013

SINGAPORE STOCKS INVESTING: THE FIFTH ELEMENT

Singapore stocks head north in these trading sessions. However, I believe that Singapore stocks will have to head south when the Federal Reserves next meet to set the rates and to decide whether to taper the Quantitative Easing move of US $85 billion monthly bonds-buying. As I have shared with readers before, there are four elements shaping the global stock markets currently: (1) US decision of strike against Syria, (2) US debt ceiling talks, (3) Federal Reserves’ decision on tapering of the Quantitative Easing and (4) Germany’s election. Any of the four above elements will shape the direction of global stock markets including Singapore. For now, Singapore stocks head north as it is not immediately apparent that US and its coalition forces will attack Syria and also there is some time to the US debt ceiling talks, Federal Reserves’ meeting and Germany Election. These are the four elements I have talked about. In this post, I will talk about the Fifth Element shaping the direction of global equities.

Monday, September 9, 2013

SINGAPORE STOCKS UPDATES

I have been reading analysts’ commentaries or analysis pieces regarding the direction that the Singapore Stocks Markets will take. On one camp, I read that some analysts pointed out that the US Federal Reserves will not scale back on the Quantitative Easing (QE) yet as the US economic data still point to an economy that needs the Federal Reserves’ US$85 million bonds buying stimulus. On the other camp, I read that some analysts are saying it is not a matter of when the scaling back of the QE moves will take place but a matter of how much the scaling back of the QE moves is. A figure that I keep reading about is US$65 million, the amount that the QE moves will taper to, according to some analysts. Analysts who believe in the QE tapering think that the scaling back will occur after the Federal Reserves’ meeting in the middle of this month.

Saturday, September 7, 2013

BIOSENSOR STOCKS

This is an update on Biosensors Stock: Management has been buying up Biosensors stocks while Biosensors stocks reach the current low price level at around $0.84; this is around 30% discount to the $1.20 prices that Biosensors stock has been trading before the stock heads south. Biosensors’ products are in stents and other cardiac devices with its key market in US, Japan and China. The company has not been doing well in stock prices though I believe that the company will still look for Mergers & Acquisitions targets as it has an excellent cash flow. Can you guess how much is the cash flow? As of the previous Annual Report of Biosensors stock, the cash flow is US$600 million!

Friday, September 6, 2013

SYNEAR FOOD STOCK

SYNEAR FOOD stock is on the way to delisting from the Singapore Stocks Exchange. The shareholders of Synear Food stock will be offered an exit cash offer of $0.186 per Synear food stock and this translates to 40% of the Price-to-Book ratio. Although retail investors may object to the exit offer price, 95% of the shareholders have voted for the exit cash offer and hence the delisting process is on the way for Synear Food stock.

TO TRADE OR INVEST: THAT IS THE QUESTION

I know many investors understand what I am saying when I mention “The 8th Wonder of the World” in Investment parlance. I know since the days that we have the 7 wonders of the World, there are many new “Wonders” of the world coming aboard but what I am referring to as the “8th Wonder of the World” is that wonder proclaimed by Albert Einstein which is “Compound Interest”. For investors with a long term strategy on investing, a small sum of monies invested regularly and compounded by a good fixed rate of return will do wonders to your monies. So in today’s economic climate, what is a good fixed rate of returns?

Thursday, September 5, 2013

How will Singapore Stocks perform?

Singapore Stocks head north in the trading sessions today, contrary to what I have believed. Watching the news before the trading sessions commenced this morning on how the US has garnered more support for its planned strike against Syria, I was thinking that perhaps investors would prefer to exit the market with the prospects of a strike drawing closer. Instead our local stock markets headed north instead. There may be some other factors behind today’s rise in stock prices, but I believe it is getting quite difficult to even guess how the stock markets will perform, especially when we are looking at a number of themes this month: US debt ceiling debate, Federal Reserves’ QE decision, potential strike against Syria and Germany Election.

SINGAPORE REITS: WHEN TO INVEST?

After hints of US Federal Reserves scaling back the Quantitative Easing (QE) stimulus measures, Singapore REITs have headed south, in general. To some investors, Singapore REITS are now pretty attractive in terms of valuation. So, how attractive are these? To answer this question, we have to look at the different categories of Singapore REITS and compare their price-to-book or more commonly known as the PB ratios as the PB ratio is often a good indicator of how undervalued a stock can be.

Wednesday, September 4, 2013

STOCKS PROFITS FROM SYRIA PANIC?

The global stock markets have their focus trained on the US President, Barrack Obama’s decision on Syria. Any hints of a strike against Syria will send stocks heading south while if a full-fledged strike against Syria is to really pan out, stock markets will go more south. And this event is just one of the few other events which will have a bearing on stocks; the others being the Federal Reserves’ decision on the Quantitative Easing, the US debt ceiling debate and the Germany Election.

NOBLE GROUP STOCK: INTERVIEW WITH YUSUF ALIREZA

I have been a long-term shareholder of Noble Group stock and with Noble Group stock price headed to a low level of $0.79 just two weeks ago, of course, I feel quite disappointed as my buying price is more than $1. However, with a long-term position of this stock, I will not be just selling off all the stocks of Noble Group that I have; rather I am thinking at what price Noble Group stock price may rebound with all the macro economic factors coming into play. Hence I feel it welcoming to read the interview piece with Noble Group’s CEO in a leading financial magazine as I need to hear from the man himself on the strategic directions of the company that he will take.

Tuesday, September 3, 2013

THE RESPONSIBILITY OF INVESTMENT BLOGGERS

Arising from the China Minzhong’s short selling incident, one respectable investment blogger whose blog I have frequented occassionally, expressed apologies if through his blog, he has led some investors to buy the stocks of China Minzhong. I could sense that the blogger is quite apologetic but as a reader of his blog and his blog posts on China Minzhong, I could tell that there is no real coaxing on the blogger’s part for others to join him in buying China Minzhong stock. Also, what the blogger has shared are just his opinions and observations of the stock.

Monday, September 2, 2013

SHORT SELLERS TARGETING SINGAPORE STOCKS

China Minzhong stock, the embattled S-chip stock whose share price headed almost 50% south after a report (by short seller Gloucester Research) made an announcement yesterday that the short seller has not understood China Minzhong’s business well and that the company would release a detailed report soon to reassure that its fundamentals are okay. I wonder why China Minzhong needs to take so long to respond to the report as China Minzhong’s business fundamentals should be on the back of the management’s mind and the company should be able to easily retrieve figures to refute the short seller’s claim easily, like what Olam did when it became the target of the short seller, Muddy Waters. But to be fair, let us await the report to be released by China Minzhong before commenting further on this matter.

Sunday, September 1, 2013

GOLDEN AGRICULTURE STOCK

Being a regular investor of GOLDEN AGRICULTURE STOCK, I think it is timely to share with readers my thinking about this stock. Ever since touching the low price of $0.485, Golden Agriculture stock has rebounded in price and is currently trading in the range of 53 cents to 55 cents. A good stimulus for the stock has been the export tax cost reduction of crude palm oil which has then sent the price of the stock by around 7% up, but profits-takers have since then sent the stock price down again to 53 cents to 55 cents.
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