SGX Stocks to BUY

As STI hovers past 3,000 mark; many stocks are rising with the trend as well.

Today, i run through ALL the stocks and decided to show 3 stocks with potential for capital gains.
How i selected these 3 are based on the Criteria:

  • Mid Cap (Already established yet have room for Growth)
  • Good Technical Analysis (Rising with high volume after consolidation period)
  • Share Buybacks (Meaning the company is confident in its future growth)

1) Noble Group

The chart shows the sudden out-burst in share price with an increase in volume after consolidating around the 1.05 to 1.08 range.

2) Ho Bee

As for Ho Bee, there is a spike in volume and share price together with the double bottom pattern.

3) Biosensors

Same thing, a hike in volume and breakthrough in the descending triangle pattern.

Most importantly, the companies all have share buy-backs or significant increase in shareholdings by major shareholders. It demonstrates confidence on how the stock will continue to perform next time. 

It's exactly like when i recommended a "call" for OSIM when it was heavily in the share-buyback mode during which its price was $1.10 - $1.20.

Hope you can Profit from these! HUAT AH!


Ten Reasons to Stay Bullish On Stocks

Amid the strong share-buybacks from Singapore stocks (e.g. Sembcorp, Biosensors, OCBC, Noble group & many more...) I was curious about how the U.S. will fare since the news have all been quite positive so far (housing prices increasing, unemployment down etc.)

Happened to go research & found this article which reinforced my judgement call... Enjoy..

Conservatives are disappointed about the outcome of the national elections. Investors are troubled about the recent volatility in the market. And just about everyone is skeptical about the outlook for the economy – and the Middle East.

But that doesn't mean you should avoid owning shares of great companies – or move your money into low-yielding cash and bonds. There are plenty of good reasons this bull market can continue well into 2013 and beyond.

Here are just 10 of them:

  1. You shouldn’t fight the Fed. We can argue about the proper role of the Federal Reserve or whether we ought to even have one. But history shows it doesn’t make sense to invest counter to the Central Bank when it is in an accommodative mode. And with the Fed buying up mortgage securities and long-term bonds to keep interest rates down, this is as accommodative as it gets.
  2. Short-term interest rates are zero. Hyper-low rates make it cheaper for businesses to borrow and easier for consumers to spend. They also make stocks attractive relative to cash and short-term bonds.
  3. Inflation is still M.I.A. Yes, I know, prices are up if you’re pumping gas, visiting a doctor, or putting a kid through college. But have you checked the price of a computer, a cell phone, or a flat-panel TV lately? Also, the biggest purchase most consumers ever make is a house – and those prices are definitely down.
  4. Housing prices have finally stabilized. There are plenty of pending foreclosures still, but take a closer look. Nationally, the average discount on a foreclosure in September was only 8% below market value, according to an analysis by Zillow. And many foreclosure sales are creating multiple bids. Clearly, housing is in a healing mode.
  5. Credit card debt is at a 10-year low. Still worried about over-leveraged consumers? That’s so 2008. Debit card purchases are up. Visa and MasterCard balances are down. And American Express has seen loan balances fall 73% from the peak in early 2010.
  6. The energy revolution is underway. Utilities, factories and truck manufacturers are switching from oil to much cheaper natural gas. Slower growth in emerging markets is lessening the demand for crude, too. And technology-driven advances in everything from fracking to oil-sands development are also positive factors.
  7. Corporate balance sheets are pristine. The federal government is spending money like a sailor with four hours of shore leave. But it’s a very different situation with U.S. corporations. They have been paying down debt and refinancing it at lower levels. Plus, they are sitting on roughly $2 trillion in cash. Uncle Sam may be going broke. But U.S. blue chips are not.
  8. Corporate profits are at record levels. U.S.-based multinationals like Caterpillar, General Electric and Apple have decoupled from the sluggish U.S. economy. They are capitalizing on exciting new markets in China, India, Brazil and Russia. That won’t change anytime soon.
  9. Valuations are compelling, too. Historically, the S&P 500 has sold at 16 times trailing earnings. Today it sells for roughly 12 times earnings. There is plenty of value to be found in today’s market.

Lastly... The Santa Claus Rally and the January Effect. Yes, the trend hasn’t been so friendly since the national elections. But the correction in the Nasdaq and the near-correction in the Dow may be setting us up for what is historically the best seasonal performance for the stock market: early December to mid-January. Investors and traders often regret sitting his period out.
In conclusion, if you can’t be persuaded to invest in stocks during a period of zero interest rates, low inflation, record corporate profits, pristine balance sheets and cheap valuations, there’s probably not much I can say to change your mind.

Also, to be fair, there is one positive to sitting in cash during the most disrespected bull market in history and it’s this: If you reinvest those money market dividends each month, youwill double your money in just 3,200 years. (*I kinda like this sarcastic tone of this investment writer)

Personally, I don’t like to think that long term. Plus, I plan on spending my money before then.


Olam Fights Back and Gains 5%!

In case you have not heard of it, OLAM is being openly critcized by Muddy Waters, a U.S. based research firm and its latest update is here.

However, Olam has now fought back and decided to take legal action against Muddy Waters now! I believe i call this "Biting more than you can chew" for Muddy Waters.

I can understand them criticizing Sino-Forest or China Public Listed firms because they are those kind of black sheep... but OLAM?! It is a Singapore Corporation with Temasek Holdings as one of its Shareholders!

I don't even need to look at the report to know that Olam is safe and sound. If not, why are they even countering the offense from Carson Block into a legal lawsuit? 
Carson Block still got the nerve to question Olam on their defensive reaction, even much worse compared to Sino-Forest... OH COME ON... Sino-Forest is in the wrong of cos they kept quiet! If not, judging from China top management, they will whack the hell out of those Ang Mos who are running through their mouths blatantly!

If you wish to read up more about the entire thing: Go to this link -> http://bizdaily.com.sg/newsite/olam-bound-to-collapse-says-muddy-waters/

While on the technical side...

Olam has seemingly bounced off the past Support line and the circle shows a very Clear BULLISH Engulfing Candlestick Pattern right there.

I believe if Olam wins this war of words, it will instead serve as a better scheme to attract wide attention to its stock. I am going to bargain hunt on this counter and possibly set a stop-loss below the Blue Support Line OR if Muddy waters can really prove to be accurate in its "offence".

Disclaimer: This blog post is entirely of my own personal opinion and not for anyone to follow. Trading involves high risk, which is not suitable for everyone.


2 Simple ways to Save without the Tiresome Budgeting!

2 Simple ways to Save without the Tiresome Budgeting!

How many of you have tried budgeting and in the end, nothing seemed to work? Come on, let's see those hands.

OK, that's just about everybody.

I've kept a budget of one kind or another, first on paper and then with the help of various software programs like Quicken.com, but to not much impact though.. I feel more like wasting of my time.

Despite knowing the importance of Budgeting and "Saving for a rainy day", many people have not done so.. I mean... come on, even though it's just a 5 mins of keying in data for your own good, i believe most of us would rather lie down and watch tv after a long day at work (Yeah, i feel you...)

Therefore, I have developed my own style of saving and decided to share with my readers... I call it: The Percentage (%) Rule: Get Rid of all the Complicated and tedious budget calculations & see as your Savings Soar!

What is The Percentage (%) Rule?

It is a faster and easier way to structure your budget without having to account for every penny.

What you're trying to do with a budget is to prevent overspending, which ultimately leads to lower savings to Retirement.

First of all, tune your mindset: contrary to the usual "wants vs needs" mantra, giving up on your vacations and such, i suggest people to take on another view in life.

When you want to go overseas for example: A trip of 4d3n to Korea will set you with around $1.5k. You compare to a trip of 4d3n to Kuala Lumpur, at most you are going to spend $500?

Or how about a morning coffee? A Starbucks coffee will cost $6 while the usual coffee is only $1.20? The more "high-classed" option is 5x more expensive... or 500%!

When you think of how much you can save (in percentage terms), it all makes sense to opt for a cheaper alternative that serves the SAME purpose.

In the examples above, if you are just going overseas to relax and be away from the working trauma, any country that allow you to relax will do! And if a coffee is merely to keep you alert at work, choosing the lower-priced variation is going to make your money last much longer...

Thus, I call this the percentage(%) rule. I used to have this habit when i am having my meal. A lunch at a restaurant is around 10+ and a lunch at food court is $5... i save 100% just by eating cheaper (this return is so much more achievable and easier as compared to you investing your money for a 100% return!!!)

Here comes The Limit (n) Rule?

After cutting down your spending by visualing how much you can save by % terms (its really a lot!), let's take a look at the Limit Rule.

Looking at my own spending history, I realized that it wasn't the usual expenses here and there that got me in trouble. It was the large, irregular expenses, like vacations and the occasional indulgences (e.g. drinking regularly, branded bags etc) that did all the damage. To avoid overspending, we have to set a limit to all these expenses which can add up to a hefty sum.

An example will be to set a holiday trip only once a year for places outside south east asia (meaning taiwan, korea, Europe...). And buying a branded bag can be done only when the existing bag is spoiled but not just relentless purchasing for style.

Combination of Both Rules

When you master these 2, i can safely say that when your income rises through the years, your expenses will not just increase "subconsciously" to match your income.

As such, you will have additional savings which you can put them to work (Money grow money!) by investing prudently. That's how Dennis Ng, the late founder of masteryourfinance.com, became a millionaire! Just through saving consistently and investing wisely with his stable income from his accountant job!


Outlook for STI for Year End onwards

STI has broken the *Imaginary* 3000 support!

How will it continue from here? Will it rebound or succumb to the selling pressure? Let's take a look at the chart below to find out...

It's ok if you don't really understand charts for the beginners. But you need to know just 3 trends. 
1) Ascending 2) Consolidation 3) Descending

If you look carefully, from June to Aug, the STI is going up (Ascending).

Come Aug to Oct, the STI has been in range bound (up and down without a real direction) and we call it Consolidation.

With the breaking of an important psychological support line at 3000, and the "Double Top" Pattern (the blue lines i drawn), it seems that STI will be going down for another 2 months. (because ascending and consolidating both took around 2 months each!)

It will be like the complete pattern of Dec 2011 to June 2012! What do you think? What are the stocks that can be "played"? Comment and join in the discussion :)


Gold Investing by Strait Times Invest Section

Just this sunday, i read from the Strait Times invest section on why analysts expect price to continue to rise and the various ways to take part in this.

This is quite similar to the previous post i written months ago: http://kissinvesting.blogspot.sg/2012/05/how-to-invest-in-gold-in-singapore.html

Nevertheless, i also wish to share with you all on what was on the newspaper in case you missed out the goodies...

  • Physical Gold
    - Available at UOB; offers a variety of different sizes.
    - Buy-Sell Rate set by UOB daily
    - Investors can hold onto the Gold physically but be mindful of storage costs if you deem it unsafe to place it at home.

  • Gold certificates
    - UOB issues the certs in multiples of 1kg
    - No expiry, used in exchange for cash/gold

  • Gold savings accounts
    - Available at UOB & Citibank
    - Converts your savings into grams of gold!
    - Approved under CPFIS

  • Gold ETFs (GLD US$)
    - SPDR Gold shares, listed in Singapore Exchange.
    - 1 lot = 100 shares
    - Denominated in USD
    - Popular for investors who want exposure to gold w/o taking delivery of the gold physically

  • Gold-related equities and equity funds
    - Schroder AS Gold and Precious Metals Fund
    - DWS Noor Precious Metals Securities Fund
    - LionGold
    - Take note that equities may have low correlation to the Gold Price as they are affected on other factors like market sentiment, closure of mines etc.)

  • BullionVault
After searching for quite some time, i found out that GoldBullion.com has all the desirable features combined together...

  1. Highly liquid exchange for buying/selling Gold = Best for trading purposes/easy to sell when necessary (Compare that to selling physical gold, the other party get a cut of the commission first =/)
  2. Fees are kept to a minimum because of the bulk volume they are handling.
  3. They have a daily audit & endorsed by World Gold Council so it is definitely safe!
  4. Only Investment grade Gold and Silver is taken into consideration so no worries about fake Gold or something...
There are still many benefits untold... but best of all, opening an Account is FREE (you only have to deposit funds IF you wish to purchase anything)... so i suggest you do it here right now! :)

Cheers & Happy Gold Investing to You! $_$


Why Selling Financial Services and Vacuum Cleaners are the same?!

I read about an article by Wilfred from his email and think it's really a good read. 

It speaks truth about why some financial advisors can only promote those products that he/she sell and the importance of selling financial products to what a person needs (and not product pushing)

Many people are too used to obtaining free financial advice because those in the banks all that are doing that to attract you to purchase their products eventually...

However, i read a quote from somewhere...
"Free things are never Good; Good things are never Free"

So let's enjoy the article below and see what you can learn from it :D...

Topic: Vacuum Cleaners and Financial Services 

By Wilfred Ling. 

A salesperson came to my house to demonstrate and sell a vacuum cleaner. It was an impressive vacuum cleaner with the following capabilities:

1.       It is a air purifier;
2.       It has the traditional vacuum cleaning function;
3.       It can mop the floor;
4.       It can remove dust mites from soft toys and pillows;
5.       It can remove dust mites from mattress as well;
6.       It can clean the air-con; and
7.       It has no air bag but uses water to "capture" the dirt and dust. It is very easy to dispose the dirt as it just simply means throwing the dirty water away. 

The machine is highly sophisticated and their four hour demonstration was highly impressive. My wife and I felt that this is a good product. The catch? It cost 10 times that of a traditional vacuum cleaner that we had bought one year ago.

The salesperson (let us call her Promoter A) was highly persistent and told us that if we decide to buy on another day, the cost will be 15% more. To get the "good" price, we must buy on the spot. Of course, my wife and I never make purchases on the spot. We would discuss privately before making a purchase. 

This person made us feel obligated because she said she is commissioned-based. If we were to make the purchase later, it becomes a direct sale and she gets no commission. After much persistency, the salesperson gave us twp days to think about it. 

My wife and I discussed and felt that it is necessary to evaluate whether the purchase of the vacuum cleaner is a need or a want. Moreover, we recognized that it may become a white elephant since we might not use it often. 

Considering its sophistication, we may not fully utilize all its functions. In fact, we discover that our need is to have a vacuum cleaner that can remove dust mites and at the same time perform the traditional vacuum function. 

The children and I have sensitive nose and so a dust mites removing machine will be useful for the family. We do not need to purify the air because our house windows are frequently opened. 

Additionally, we prefer to engage a professional air-con service person to maintain our air-con. I have no desire to clean the air-con myself for fear of damaging it.

The next day, we went to an electrical department store and asked whether they have a dust mites removing vacuum cleaner. Promoter B told us that they do not sell it. 

As we were about to leave the store, another salesperson (Promoter C) who overheard our query came to us and told us that she does sell it. Although it is the same store, apparently each salesperson only represents a certain range of products.  

She proceeded to ask us what we really need. We told her our simple needs. She recommended us the lowest range product which she said is suitable for us. I also noticed that her vacuum cleaner employs a different technology. The price is just 1.5 times that of the traditional one. 

My wife and I decided that when our present vacuum cleaner breaks down (which can be soon since electronic products do not last so long these days), we will do a thorough research in vacuum cleaners as it is apparent to us that there are many choices in the market place.

I like to highlight what I learn in this experience:

1.       Promoter A recommended her product without asking our needs. Actually we have simple needs. We do not require such sophisticated product. Promoter A did quite a lot of work demonstrating her product. I recognized the four hour of work as valid but they only earn a commission when the client makes a purchase. I personally dislike feeling obligated.

2.       Promoter B did not have the product that we asked for and thus she said that the store did not sell it. Actually what she really meant was that she herself did not sell it. Thus, the information we got was incorrect because of the products she is restricted to.

3.       Promoter C did a good job asking us for our needs and recommended a product that she had. I saw there was another product she had that was more expensive but she advised us not to buy it as it is meant for those who have carpet and pets. These we do not have. Thus, Promoter C was ethnical. 

Unfortunately, since we came to the realization that there are actually many choices in the vacuum cleaner market, it is currently unknown to me whether Promoter C's products are truly value for money. 

There are many similarities of the above to that what transpires between the financial adviser and the client.  Whether it is a private banker, an insurance agent or an independent financial adviser servicing their clients, there are similar issues that arise:

1.       Just as Promoter A did not ask us what we really need, many financial practitioners do not ask their clients what they really need. The result is hard-selling of products which may not be suitable for the client. Since their remuneration is based on commissions, clients are often pressured into purchasing a product. Some salaried financial practitioners have high quota to meet and so they may be hard pressed to close a sale.

2.       Some financial practitioners are restrictive in their product range. Frequently they are only able to represent one product manufacturer and thus cannot give accurate information just as Promoter B gave us incorrect information.

3.       There are also many financial practitioners that desire to do a good job by seeking to understand the client's needs. This is good. However, if they are restricted in their product range like Promoter C, clients may still have their doubts.

Before anyone thinks that the solution is to seek a financial practitioner who can carry products from many manufacturers, I like to highlight one more problem. 

Just as Promoters A, B and C are compensated through commissions only, the commission-only financial practitioner may not serve the interest of the client.  The client may feel obligated and the practitioner may be tempted to recommend expensive products.

The work of a financial practitioner can potentially be as short as half an hour to as long as 20 hours. This depends on the work nature. The process of setting objectives, fact finding, analysis, recommendations and product comparisons can at times involve hours of preparation and not to mention answering questions asked by the client. With this in mind, financial practitioners should charge their client a fee for this work. However, this is easier said than done.

Some time ago, I met up a person who had asked for a financial planning service. I told him that I prefer a fee-based approach. There is no obligation to buy anything from me. He hesitated. 

I asked him this question, "Would you pay your contractor for providing a renovation service? Would you pay a consultation fee to your doctor when you are ill?" He did not say "yes" but answered "I know where you are coming from." I continued, "Since you desire a financial planning service, would you then pay for that service?" His answer was: "I am not ready for it; I want a commission-based service."

Although most clients will not be that explicit, the truth is that most people expect financial practitioners to work for free. Is it any surprise that some financial practitioners make clients feel obligated to buy something?  Therefore, I suggest a fee-based approach when engaging a financial service.

By the way, did anyone wonder why I allowed Promoter A to come to my house to do so much work in demonstrating her vacuum cleaner? The reason was because the telemarketer prospected my wife stating that they are offering a cleaning service and have ceased the business of selling vacuum cleaners. My wife was keen to know more about the cleaning service. Unfortunately, it turned out to be a product sale. 

Despite being willing to engage a cleaning service for a fee, we were disappointed that it turned out to be a commission-based product sale. We are already accustomed to hourly-charge cleaning services.

Wilfred Ling
CFA, ChFC, ISO 22222 (SCI) certified.

Providing private wealth services for the sophisticated mass affluent families.
Trusts, Wills, Insurance, Retirement, Investments

371 Beach Road, Keypoint, #02-03
Singapore 199597
Tel: +65 91710940


Opportunities lie within US demise caused by Hurricane Sandy

New York suffered the worst hurricane in its 180 year history and left destruction everywhere... it is estimated that it will take a $20 billion toll on the city...

As for the impact on the stocks, hurricane sandy will offer opportunities both on the long and short sides.

Below links show you how to capitalize on the disaster to make some quick gains on your side.