Singapore Shares Information: MPAT

Friday, December 2, 2022

MPAT

chart wise, she is still stucked in a consolidation zone! i think it may go down to revisit 1.58 then 1.52.

Am interesting level to watch at 1.58. yield is about 5.87% base on current price of 1.65 estimating yearly dpu of 9.7 cents. NAV 1.723. i think Gearing is Bovey 40%. pls dyodd

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Swing Trading & Position Trading

Swing Trading are for those prefer to do a contra trade lasting for a short period of 1-6 days.

It can be applicable for both Long & Short trade.

The example is as follow:

1. To Long a Swing Trade using breaking out strategy. Trader would have scanned and done his or her homework at least one day in advance for the Swing trade to be confirmed by the Market.

Let say a particular counter A is having a nice uptrend mode chart patterns. And it is going to retest its Resistance level at $1.00. Once it has managed to walk through $1.00 smoothly + good volume & other indicators are also bullish, then a trade will be entered at either $1.00 or $1.01.

For further details , you may click on this link.

Corporate bonds

Corporate Bonds

The recent stock market volatility may be a good time for investor to consider a perpetual bond that provide good decent yields from a high quality issuers which currently offers yields of between 3.8% to 5.25 % per annum. Payable half yearly.

With fairly guidance from the Federal Reserve despite the first rate hike in nearly 10 years,interest rates (and bank deposit rates) have not been rising as quickly as investors may have liked. For those looking for a decent level of yield from a high quality issuer, the perpetual bonds issued by the above-mentioned issuers may be an option to lock in for defensive play/fixed income yield.

For more details kindly check this out on Bond counters

Opening of a Security Trading Account

Opening of a Security Trading Account

Any member of the public who wishes to trade/buy any stock counters listed on the Singapore Exchange will need to open a Brokerage trading securities account with any of the registered Securities Brokering Companies in Singapore.

Once the member has successfully registered their trading account with the registered Securities Brokering Company in Singapore they will then be issued with the approve Trading securities account number to perform trading of share /stock counter on Singapore Exchange(SGX).

This Trading securities account number will then be linked to their CDP (The Central Depository) account number for the settlement of their payment/deposit and withdrawal of securities etc.

Brokerage fees:

Generally the brokerage fees for example for trding via online are as follows :

Contract Size	Rates*	Effective Rates* (Less 3 to 5% Mileage)
Minimum $25		$23.75
Up to $50,000	0.28%	0.266%
> $50,000 - $100,000	0.22%	0.209%
> $100,000	0.18%	0.171%

For more details kindly refer to my blog post - Opening of a Security Trading Account

INVESTMENT STOCK METRICS

Don't read too much into news and affect your investment decision!

Below is the investment method./strategy that has worked well for me so far. I will only add to my position if the share price has dropped about 10% lower than my average holding price or recently added price. If the fall is less than that usually I will just sit on the shares and do nothing. This is assuming the fundamentals of the underlying business has not changed.

For others , you may also consider to have a bigger percentage of more than 10%, may be 15-20% if this works well for you.

I suppose this kind of disciplined approach also works for a non-leveraged portfolio. A 10% drop before adding on to position is reasonable especially if the shares were recently bought in and the value investor has already done his due diligence to buy in at a sensible fair price.

Usually, it is difficult for share prices of a fundamentally good business with strong growth prospects to drop by too large a magnitude.

If share price drops more than 10% from one's average holding price, then the investor must really ask the critical question whether his average holding price was bought too high due to him making a wrong assessment of the business's fair share price he has entered? Or is it suggestive that a bear market is coming and a lot of other shares have also fallen by at least 10% off their recent highest price reached and prices seem to display even more falling momentum? Or is there something inherently wrong with the fundamentals of the business that the investor did not pick up in his initial assessment before he entered the stock? Or is it a temporary issue that the business is facing which will cause a temporary deterioration in business fundamentals but it should recover in due time.

Below are the list of counters that I am monitoring:

NOT A CALL TO BUY or sell.

Please do your due diligence.

Jardine Matheson Holdings

2. Haw Par Corporation

3. DBS

4. OCBC

5. Nordic

6. Riverstone Holdings

7. Top Glove Holdings

8. Micro Mechanics

9. Ascendas REIT

10. Parkway Life REIT

11. First REIT

12. CapitaCommercial Trust

13. Mapletree Commercial Tust

14. CapitaLand Mall Trust

15. Suntec REIT

16. Raffles Medical Group

17. UOI

18. Sheng Siong

19. Wilmar

20.Food Empire

21. Sunningdale

22. ST Engineering

23. SATS

During times of volatility, seasoned investors has to practice staying calm and stick to the basics instead on being overdue panic.

Please do you own due diligence.

Contracts for difference (CFD)

Contracts for difference (CFDs) provide a flexible way to trade on the price movements of thousands of global financial products such as Shares, indices, commodities, Forex /foreign curriencies etc.

When you trade using CFDs, you don’t buy or sell the underlying asset (e.g. a physical share), you buy or sell a number of units, depending on whether you think a product’s price will go up or down. For every point the price moves in your favour, you gain multiples of the number of units you have bought or sold. For every point the price moves against you, you will make a loss. Please remember this loss can exceed your deposits.

Some of the benefits of CFD trading are that you can trade on margin, you can go short (sell) if you think the price will go down, and you can use CFDs to hedge an existing physical portfolio.

For more details kindly refer to my blog post - Contracts for difference(CFD)

STOCK METRICS SELECTION

How to work out the current Earning yields?

Current Earnings yield = Diluted EPS / share price (range)

If we take the below example ..

Diluted EPS is 0.0456. Share price is 72-82 cents ) ,we shall use 82 cents as the highest price for calculating the current Earnings yield

Current Earnings yield = 0.0456 / 0.82 = 0.055 x 100% = 5.5%

I think it is suitable to be applied on any stocks using the current earnings yield. And once you worked that out for a few stocks you are comparing which to invest, you can decide based on all their current earnings yield whether which stock is higher in current earnings yield and also whether the fundamentals will support the growth of EPS at high compounded rate of growth or not resulting in the increase in earnings yield

For example, for illustration purposes. let's say the current earnings yield of ABC company is 5% based on the price you paid to buy it's shares. It is able to double it's EPS in 5 years time. Then you will be having a future earnings yield of 10% on your initial investment in ABC company. A 10% earnings yield is quite good already. And if the company can continue to double it's EPS again for another 5 more years, then the future earnings yield after 10 years will be 20% on your initial investment

And even if the company cannot grow meaningfully anymore after 10 years and just grow their EPS at a terminal growth rate of 3% thereafter in line with inflation cost, the company may now become a mature stalwart giving out a high dividend payout. At a high dividend payout ratio of 75% while only remaining 25% of earnings to be retained for some maintenance capex, the dividend yield in future for this illustrated example will be 15%. And maybe the share price would have also grown in line with the EPS growth and perhaps also quadrupled. Thus, one will be getting a multi bagger stock plus a decent high dividend yield of 15% after 10 years

What if the EPS decline instead of growing?

That's why we want the growth prospects to be visible, the more visible the better. If any drop in eps, we have to gauge whether it is temporary or permanent. That is why we need to also constantly monitor the fundamentals of the business. If permanent deterioration in business fundamentals, we may consider to exit the investment

Friday, December 2, 2022

MPAT

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