Saturday, 23 September 2017

Successful share investment secrets

Share investment is always about timings and winnings. When investors decide to make money, then no winds could stop them. Some stock prices are too high to buy and some are too low, which keeps investors in dilemma of buying or not buying those shares. If you too face this problem, its high time to go for a detailed stock research where you must look for successful share investment decisions regarding Singapore stocks to buy now.
So lets unlock the secret of successful share investment by identifying factors which not only boost profit numbers but also helps in tracking Singapore stock market movements.

Pen Down 2 Successful Share Investment Secrets:

  1. If you are investing in net to net stocks, you are at a high risk of losing capitals: 
Its important to understand the risk of investing in net-net stocks. These are the stocks of such Singapore companies, which are facing some problems either in management or in product offerings. Basically, their market capitalization is lower when compared to its market capitalization. So ending up your capital in buying such stocks might be a source of self-suicide.
So successful share investment secrets say: 
Invest in stocks that have high potential to return your capital and further boost your capital with profits. 
If you still have interest in investing in such net-net stocks, you have two options:
  • Diversify capital in net-net stocks and mitigate the risk you are about to take
  • Do a thorough stock research with the help of Singapore stock market news and other available data before investing in stock market of Singapore.
Example:
Ace Achieve Infocom Ltd ACE:SP  SINGAPORE
  • 1 YR RETURN: -52.94%
  • YTD RETURN : -38.46%
  • CURRENT P/E RATIO (TTM): 4.27
  • EARNINGS PER SHARE: 0.009
The Secret of Successful Share Investment
  1. Check the ROE of the Singapore stock market company you are about to invest in:
The ROE is calculated by dividing net profits whit shareholder’s equity. It tells you the profitability of each dollar of your capital invested in any company registered on Singapore stock market.
So successful share investment secrets say: 
The higher the ROE of any stock is, the more favourable share market tip it becomes thus returning more profits.
The second approach to measure ROE could be:
Multiplying asset turnover with net profit margin and asset and then dividing it with equity of the stock.
Example:
Top Glove:
  • 1 YR RETURN: 02%
  • YTD RETURN : 06%
  • DIVIDEND INDICATED GROSS YIELD: 2.66%
  • ROE: 19.8%.
The Secret of Successful Share Investment

Singapore Stock Market Researcher Last Note:

For making any decision regarding share investments, the investors must look upon few things like:
So hope you are now through with these successful share investment secrets and for more such information and related stocks market tips you can ask for a free trial directly from the Singapore’s top-rated share investment signals providers Multi Management future solutions.

Friday, 22 September 2017

Stock Market Reseach of CapitaLand Commercial Trust

CapitaLand Commercial Trust - A prime Marina Bay office does not come cheap
■ Strategically compelling but still DPU dilutive, on our estimates
■ Even after rental correction, Marina Bay office prices are not cheap
■ We reiterate Sell (5) rating with an ex-rights TP of SGD1.39

What's new:

CCT announced the acquisition of Asia Square Tower 2 (AST2) on 21 September 2017 and held a briefing for analysts. We maintain our Sell (5) rating as we expect it to be mildly DPU dilutive.

What's the impact:

CCT will acquire AST2 at an initial net-property income (NPI) yield of 3.6%, with a committed occupancy rate of 88.7% as at 30 June 2017 and finance the total deal cost of SGD2.15bn with SGD1.12bn of bank borrowings, SGD340m of recent divestment proceeds, and SGD690.4m of equity from a 166 for 1,000 rights issue (at an issue price of SGD1.363/unit). The pro-forma gearing, after all transactions, is 37.1%.

We expect the transaction to be mildly DPU-dilutive, but depending on the actual borrowing cost and the rate of cash-rent improvement in AST2, it might become DPU accretive eventually. Given the multi-funding strategy to optimize the DPU impact, AST2’s prominence in the heart of Marina Bay and how it would enhance and diversify CCT’s overall portfolio, we can see why management was willing to buy AST2 at a 3.6% initial yield, although there will be some minor tax leakage in buying it through its existing special purpose vehicle.

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The purchase price of SGD2,689/sq ft is about 8% lower than the average valuation of other equally new Marina Bay office properties, so CCT is not paying the highest price, but this is just relative, in our view, because even though office rents have corrected by about 20% from the recent peak in early 2015, capital values of Marina Bay properties have only appreciated over this period. We also suspect that some of its in-place rents are higher than the spot rents, so we see some short-term risk of negative rental reversions (about 10% of AST2 leases are due for renewal in 2018).

We do not regard the deal as clear winner (on DPU-accretion) like some of the recent Mapletree-related deals (Mapletree Business City and Mapletree Logistics Hub Tsing Yi), but it is not a totally bad 3rd -party deal either, in our opinion. Nonetheless, we hold CCT management to exacting standards.

What we recommend:

We maintain our Sell (5) rating and revise down our DPU forecasts for 2017-19E by 3% after incorporating AST2 into our forecasts along with the funding assumptions. We lower our DDM-derived 12-month target price to SGD1.39 (ex-rights) from SGD1.42. A risk to our call is an exuberant recovery in Singapore office rents.

Points to watch out before investing in a company shares

Today, we can’t find any single company which has a perfect record when it comes to investing in their stocks. It seems as if it is hard to find a company share which can show a linearly upward trading trend on any of the renowned stockbroking platforms. 
A lesson of how to protect ourselves and our hard earn money before it gets shattered.  
Today here, I on a very serious node going to deliver you some of the major sore points that you must watch out before investing in any stock market.

Emigration of upper management:

Leaving off any member from the upper management is an alarming sign for all the investors. It’s an indication for all stock market traders and therefore needs to determine the actual reason behind their walk out. because It may be a sign that the delegates at the higher authority know of something going to happen within the organization or it may be for some regulatory issues.
Here, in Quidsi’s case, their finance chief left the company in March which could be considered as a crucial sore point while investing for Quidsi Stock.

Excessive Debt:

Debt a key parameter that must be taken into consideration before investing in any online stock. Debt of any organization can be curated from their debt-to-equity ratio. This debt-to-equity ratio may seem varying depending upon the sector you are dealing with.
For example, Shiping industries always have a high debt-to-equity ratio in comparison with an IT industry.

Inventory an asset or a sore point:

Many online stock traders look inventories as a company’s assets and in most cases they are true. However, in many cases inventory may also cause hindrance against company’s future earning if they are not sold out.
Similar can be taken in account for Quidsi when Amazon has repositioned Quidsi’s inventory form their main pulpit.

Lagging financial results:

Late filing of financial result never grabs our attention because we overlook them as there might be some internal issues. Whereas, a good stock trader always take it as a remarkable sore point and investigate to find for what reason the filing of financial report gone late.
The stock market is volatile and this volatility depends on innumerable factors. Therefore it’s always been suggested to never take such issues as for granted.

Always go with cash flow rather than with net income:

Whenever we are going to decide for a company we focus on their net income. We hardly focus on their cash flow. This cash flow always needed to be considered. if net income is high and their cash flow is crippling the company may have problems in raising their revenue from their customers.
A recent study shows that the flow of cash gets deteriorated showing a jump of 55.23% from 44.96% which is again a spectacular sore point.
This and a lot more is waiting here for you at Multi Management & Future Solutions

Thursday, 21 September 2017

Investing Update: SGX's 20 largest China exposure plays posts 27% return YTD

The Singapore Exchange has 180 stocks which can be viewed as China introduction plays.

Together, they create 20% of their income from China while more than 80% infer in any event half of their income from the nation.

Year to date, the 20 biggest promoted stocks which create no less than half from China have posted a normal market top weighted value return of 27.3% with 16 out of the 20 stocks producing positive returns.

The 20 organizations exchange at a market top weighted normal P/E of 13.5 times and P/B of 1.1 times
Singapore Exchanges listed China Companies

For as long as 15 years, GDP development in China found the middle value of between 9% to 10%. Regardless of the financial stoppage, GDP is as yet anticipated that would increment around 6% for the following five years.

In 2017, China's GDP figure was additionally overhauled higher in the last quarter to 6.7%, three times more contrasted with 2.1% for US. 

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As indicated by SGX, there are five drivers that add to China's blasting GDP development.

The One Belt and One Road (OBOR) Initiative is the greatest driver. In May, China's President Xi vowed to empty US$124 billion into the activity. The assets will be utilized as gifts to the current Silk Road Fund, credits from approach banks and help to creating nations. 
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The OBOR Initiative is one of China's most critical drivers to shape its national monetary advancement system and global exercises.

Furthermore, the Chinese government a year ago set "supply-side auxiliary change" as a concentration which will bolster development through new request and efficiency.

The third driver is state-possessed undertakings (SOEs) change, which China has made a need in the previous couple of years. Some portion of the change incorporates presenting a blended possession framework and making SOEs more streamlined and productive.

The fourth driver is China's developing center wage class and local utilization. The National Bureau of Statistics detailed that yearly discretionary cashflow of Chinese family units in 2016 expanded to RMB23,821 ($7,664) contrasted with RMB10,000 in 2009. 

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China will likewise observe about US$2 trillion in new utilization by 2021 which implies it will be one of the greatest markets for purchaser organizations all around later on.

In conclusion, the "Made in China 2025" national arrangement will help add to China's GDP development. Revealed in 2015, the 10-year design means to change China from an assembling monster into a world assembling power.

Under the arrangement, China will concentrate on five noteworthy ventures, including setting up an assembling advancement focus and boosting insightful assembling. Then, it will likewise acquaint approaches with extend institutional changes and reinforce money related help, and additionally rebuild old economy over all divisions and ventures with its web based business advertise.

Wednesday, 20 September 2017

How Singapore investors can profit from unstructured data

Data that is collected in the business environment can be structured or unstructured. In general, structured data refers to information which is highly organised and which can easily be stored in rows and columns within database systems. On the other hand, unstructured data does not have a strict data structure, and is also not organised in a pre-defined manner.

Whilst data used in the business context is often well-structured and financial in nature, unstructured data represents a valuable but often neglected source of information that investors can use in their analysis of firms. In particular, a variety of unstructured data can be used to supplement and enhance their analysis of financial information traditionally reported by firms when making investment decisions.

Certainly, there has been a growing focus globally on using technology to gain insights from unstructured data. In a recent report titled “Finance reimagined: Finding long term value in a digital age” published by financial services company State Street, 2,000 investors and 500 investment providers were surveyed globally.

A key finding in the report is that the ability to combine both structured and unstructured data is set to become one of most important aspects of data that will define stewardship for the digital age.

In Singapore, there have also been efforts to leverage on unstructured data to gain insights. In a press release titled “DBS bank engages IBM”s Watson to achieve next generation customer experience,” the bank highlighted how it was using technology to deliver innovation anchored around analytics and the use of big data, both structured and unstructured.
 
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In this article, I highlight two types of unstructured data – audio and text data - that exists in many firms, and which can be leveraged on by investors to gain insights into these firms.

Audio data
Potential sources of audio data include quarterly earnings calls, presentations to shareholders, and other audio recordings of public disclosures that executives routinely make. Such audio data can be analysed by investors to generate important insights beyond what is traditionally reported by a company in its financial statements.

For example, recent academic research suggests that a CEO’s affective state, as detected in his or her speech patterns (for instance, on earnings calls), may be effective in predicting the likelihood of a firm’s future stock price movements.

Further, there is also evidence to indicate that vocal and linguistic cues in a CEO’s voice may be predictive of possible irregularities in a company’s reported financial statements, which could eventually lead to restatements of reported financial results.
 
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Text data
Text data represents another category of unstructured data that investors can leverage on when evaluating firms. Sources of text data include annual reports, regulatory filings, and other written disclosures made by a firm.

As with audio data, academic research has examined how text data can be incrementally informative in predicting future firm performance and events. For example, recent research has found evidence that the linguistic tone of disclosures made in the Management Discussion & Analysis (MD&A) section of a firm’s regulatory filings can be predictive of a firm’s possible bankruptcy in the near future and also of future firm earnings.
 
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Incorporating the analysis of relevant audio and text data can be tremendously helpful. It can provide analysts and investors with a more holistic evaluation of a firm, and can provide valuable insights that would ordinarily not be available to them through traditional financial analysis techniques.

Therefore, even as traditional quantitative methods of financial analysis that leverage on structured data continue to form the basis of investors’ evaluations of firms, unstructured data – including audio and text data - can also be an important, complementary area of focus that can provide important insights and information.
 
Source - www.sbr.com.sg

Singapore Stocks Market Analysis of ComfortDelGro Corp

ComfortDelGro Corp - Downgrade: A rail disappointment
 
■ Regulator awards TEL contract to SMRT despite poorer track record
■ We see greater uncertainty over the outcome of future contracts
■ Downgrading to Hold (3) from Buy (1); lowering TP to SGD2.09


ComfortDelGro Corp www.mmfsolutions.sg

What's new:

The recent award of the Thomson-East Coast Line (TEL) rail contract to SMRT (not listed) raises uncertainty over the regulator’s evaluation process for future transport service contracts, in our view. As our original expectation for ComfortDelGro (CDG) to be a key beneficiary of greater public transport usage in Singapore appears diminished, we downgrade our rating on the stock to Hold (3) from Buy (1).
 

What's the impact:

The TEL contract was widely expected to be a key near-term catalyst for CDG. While we had not factored its potential into our forecasts, we estimate that the rail line could have contributed around SGD0.08/share to our valuation. According to the regulator, SMRT’s bid of SGD1.7bn was 30% below that of CDG while still ranking higher on quality – despite CDG’s relatively better rail reliability track record. More importantly, the outcome of the bid raises uncertainty over the bidding and evaluation process for future contracts in both the bus and rail segments.
 
In the rail segment, CDG remains in negotiations with the regulator over the transitioning of its existing lines to a new rail model (see our note dated 20 July 2016), which we think could now lead to a less favourable resolution. Meanwhile, as bus packages currently operated by CDG are to beprogressively tendered out over the next decade, we see elevated risks
that bids may have to be priced more competitively for CDG to retain them.
Finally, while we have been aware of competitive pressures, we nowexpect CDG’s taxi business to see a structural longer-term decline. In terms of forecast changes, we cut our near and longer-term growth and margin expectations for CDG’s Singapore businesses across its segments, resulting in 4-13% cuts to our 2017-19 EPS forecasts. 
 
We now look for a structural decline in CDG’s taxi business over a 10-year horizon, as well as reduced profitability outlook for bus and rail. We also factor potential fare reductions into our 2018-19 rail forecasts following the regulator’s recent fare review exercise.
 

Tuesday, 19 September 2017

Things you should know Singapore Noble Share Price

Noble Group (SGX: N21) – a renowned Singapore-listed physical commodities trader is a market leading global supply chain manager of Energy, Metals and Carbon Steel material and Power and Gas products. But despite such a huge name in the commodity marketNoble group share priceshave fallen by 62% in June 2016. As a result, they returned to a small profit of $8.2m last year.
With an aim to uncover all the hidden facts and to analyze the latest trend. here, in this quick hit referral guide, I am going to answer you with some of the most valuable questions about Noble Group. Which ultimately let you with the clear-cut vision about your investment strategy for Noble.

Why Have Noble Group Limited’s Shares Fallen?

From the past few years since 2002 when the company got included in Fortune 500. Noble group shares had been considered as a blue-chip stock. But last year in 2016 CapitaLand Commercial Trustreplaced Noble stocks from Straits Times Index. Losing up with its blue-chip label Noble group share prices suffers a lot.
Acc to many renowned market analyst – The reason behind is the sudden resignation of their former CEO Yusuf Alireza. It may be one of the profound managerial reason But what I think the reason behind for this sudden fall is-

Poor Business Performance

Well, if we draw our attention at these facts, we ourselves will conclude the above statement. Noble group share prices which are continuously showing a downtrend from 2010 trading at its lowest price of S$2.10 in 2012 and S$1.55 in 2013. This downfall has taken a giant form in 2016 when Noble group quarterly revenue was cut down by 32% year-on-year to US$11.4 billion, as a result, its profit attributable to shareholders had plunged by 62% to US$40.5 million.

Why Is Noble Group Limited A Risky Stock For Investors?

Looking closer at the company’s track record in generating cash flow. We can find that from 2010 to 2015, Noble Group Limited has generated negative operating cash flow in this three years. Meanwhile, in 2016 the company’s business churned out a negative US$486 million in operating cash flow.
So it can be said that “Cheap rubbish is still rubbish” that is no matter for how long Noble is trading low and for how long it will trade low, what matter is Noble Group is still trading at its lowest and is continuously showing a downtrend.
So why to trade for an all-time low trading stock? Right or not?

Singapore Noble Share Price

Noble Latest News & Analysis:

According to Noble Group latest news release, 2016 was a year for them where they have made significant strides in forming a solid foundation for their future development. They have strengthened their capital base by US$ 500 million exceeded from their targeted rising of US$4 billion with the sale of Noble Americas Energy Solutions (NES) in dec 2016. Along with the rise in capital base, Noble Group has also reduced their Debt, lowered their gearing and increased liquidity by US$ 2billion.
Joint CEOs, Will Randall and Jeff Frase commented “Although we have more work to do, we look forward to 2017 with confidence, as we complete the repositioning of the Group. With strong roots in Asia, we believe we retain a unique capability to service energy and industrial commodity demand in the emerging markets, where we see rising demand for raw materials accompanied by an increasing flow of refined and processed products.”  

Singapore Stock Market Researcher Last Note:

I hope the discussed question will definitely let you form a clear vision of what to do with the Noble Group and how to deal with the Noble Group Share Prices to book a remarkable commodity profit. For all the latest Noble stock news Follow us www.mmfsolutions.sg
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