STI ETF - ideal for DCA

I think is almost good time to revisit this STI ETF as can be seen from the chart, RSI is gently rising and price has stay above 20MA.

PE is about 11.3x which is still undervalue as the historical average PE is about 15x.

When is the Best time to lock in profit is when the RSI is over 70 and the PE is more than 20.


Not a call to buy or sell.
Pls dyodd.

I think good investing does not require too many fanciful ideas and strategies. Just one simple no-brainer strategy that can work effectively through time and allow us to sit back and relax to enjoyr the reward of the investment that is working effortlessly to achieve our investment goal of getting 8-10% gain( passive income).

This simple strategy is to invest in a low cost ETF( Exchange Traded Fund)  such as the STI ETF (ES3.SI) or NIKKO AM STI ETF(G3B.SI) 

This method of operation is to buy into STI ETF whenever it is in an oversold condition and to sell off and take profits whenever it is in an overbought condition. 
For example, one may use the  indicator such as the Relative Strength Index (RSI) to determine overbought ( above 70 ) or oversold condition( below 30).

One may plan to buy and selling of units in several batches whenever in oversold or overbought conditions in order to get the best average price.

For example you may plan to buy in at different interval or whenever the Oversold situation happen .

In any one year, there will be three to four such window opportunities of overbought or oversold conditions to operate by buying or selling units of the ETF. At the same time, we can also kept some units always to receive dividend income and for their long term growth in price appreciation.

With discipline and patience , one should be able to get good average returns per year in excess of certain % by this one simple strategy of investing in one single ETF .I think This simple one strategy is safe and allow one to sleep soundly at night without worry of negative news affecting individual stocks in one's portfolio which could crash the share price of the particular stock the next day. This is because even if one or two of the component stocks in STI ETF of blue chips should collapse in share prices, there will be 28 others to diversify away the risk of the entire portfolio collapsing at anytime.

As for younger folks who just started out working and does not have enough cashflows and savings , one may start to spread out the different batch of buying or applying the Dollar-cost-averaging method by investing $1000 at 6-8 different batches that would be able to achieve  lower average costs per unit. 

the example are as follows:-

1. When the index price is $2.00, your $1000 will be able to buy 500 shares.
2. When the index price is $2.50, your $1000 will be able to buy 400 shares
3. When the index price is $2.90, your $1000 will be able to buy 344 shares
4. When the index price is $1.66, your $1000 will be able to buy 625 shares
5. When the index price is $3.00, your $1000 will be able to buy 333 shares
6. When the index price is $3.20, your $1000 will be able to buy 312 shares
7. When the index price is $3.50, your $1000 will be able to buy 285 shares

Total = $7000 / 2799 shares = $ 2.50 average cost per unit.

By using this method, you will be able to make a profit once the stock market rises above this low average price.

RSP :

Just sharing.

Not a call to buy or sell.


Please do your own due diligence.

SingTel

2nd quarter result is due to be announced on 8th Nov 2018.
Dividend of 6.8 cents is coming!
Looks like it may likely re-attempt 3.20 . Breaking out with ease + good volume that may propel to drive the price higher towards 3.27.

NAV $1.86.
EPS of about 33 cents.
PE less than 10.
Dividend of 17.5 cents. Yield of 5.4% base on $3.24. Yield is quite attractive.

I have added a bit at $3.50 when the share price has fallen off from the High of $4.00.

Since then, I have again added at $3.28 and $3.15.

My average price is about $3.32. Which is still giving me a yield of 5.27%.


I think anything above 5% is still considered quite a good price.

Ideally, I would be happy to collect dividend while waiting for price to rise back to $3.50 then $3.80 and the possibility of hitting $4.00 again.

Not a call to buy or sell.

Pls dyodd.

quote :

intelligentinvestor

I feel best time to pick up good stocks is when they are being neglected for one reason or another. The game is to wait for the price to come down to buy and wait again for it to bear fruit over a long period of time. I think it is more important that the earnings are steady and always improving; than having heart-stopping thrilling actions on their stock price. Good luck!

Total debt/equity is about 30%, which is less than 50% seems quite healthy.

ROE is about 18% which is also another plus factor .

Total Ops cash flow seems pretty positive as can be seen from the table below:

The current price is trading quite near the 52 week low of $3.02. It is still quite a distance away from its 52 week High of 3.80.

The company has made this announcement:

DIVIDENDS The Board is recommending a final ordinary dividend per share of 10.7 cents, bringing the total ordinary dividend per share for the year to 17.5 cents, representing a payout of approximately S$2.86 billion.

 Barring unforeseen circumstances, the Group expects to maintain its ordinary dividends of 17.5 cents per share for the next two financial years and thereafter, will revert to the payout of between 60% and 75% of underlying net profit. 

http://infopub.sgx.com/FileOpen/4thqtr-NR-Singtel.ashx?App=Announcement&FileID=506206

I think the company is able to maintain paying the yearly dividend of  between 15 to 17.5 cents .
Let say we take the underlying net profit of $4b. 75% of $4b , the payout is about $3b. The dividend would be about 18.75 cents .
If we use the lowest rate of 60% x $4b, the payout would be $2.4b giving a yearly dividend of 15 cents .

SGX

SGX just went Ex-dividend on 26th September 2018. Nice Dividend of 15 cents.

If we add back 0.15 + 7.37 , it would be trading at 7.52 , indeed it has managed to clear 7.50 level.

Likely to continue to head higher to test 7.50 then 7.60 level.


Going forward, the company will be giving out quarterly dividend of 7.5 cents for each quarter which is adding up to a total of 30 cents yearly dividend. A nice dividend counter to put in on our watchlist or portfolio.

Another dividend of 7.5 cents is coming in October..
Huat ah!




Singapore Exchange Limited, together with its subsidiaries, operates an integrated securities exchange and derivatives exchange in Singapore and related clearing houses. It operates through Equities and Fixed Income; Derivatives; and Market Data and Connectivity segments. The company provides issuer, securities trading and clearing, post trade, membership and collateral management, derivatives trading and clearing, and market data and connectivity services. It also offers counterparty guarantee, and depository and related services for securities transactions; bond trading services; front-line regulatory functions; and computer services and software maintenance services, as well as consultancy services. In addition, the company provides and distributes bulk freight market indices and information; and operates regulated freight derivatives trading facility and electricity market. Singapore Exchange Limited was incorporated in 1999 and is headquartered in Singapore.

YZJ

A nice breaking out moment + good volume and closed well at $1.24, this is rather bullish.

Short term Wise, I think it may likely re-attempt to take out 1.24 which is the immediate resistance level. Breaking out with high volume with ease that may continue to drive the price Higher towards $1.30 then $1.32..

Not a call to buy or sell.

Pls dyodd.


Yangzijiang Shipbuilding (Holdings) Ltd., an investment holding company, operates in the shipbuilding activities. The company operates through Shipbuilding, Investments, Trading, and Others segments. It produces a range of commercial vessels, such as containerships, dry bulk carriers, oil tankers, and liquefied natural gas (LNG) carriers. The company also engages in the production and processing of steel structures. In addition, it facilitates the sale and export of ships for the ship builder; trades in ship related equipment and shipbuilding related materials/supplies; provides microcredit to enterprises and individuals; invests in held-to-maturity financial assets; and supplies marine equipment and materials. Further, the company is involved in the ship demolition and vessel owning activities. It primarily serves ship owners in the United States, Canada, the United Kingdom, Germany, France, Greece, Norway, Argentina, Turkey, Bulgaria, Poland, Australia, Japan, South Korea, Singapore, India, Thailand, Bangladesh, Mainland China, Hong Kong, Taiwan, etc. The company was founded in 1956 and is headquartered in Jingjiang, China.

Sembcorp Marine

Will this kind of chart patterns be able to sustain for long?

 Non-stop continuous pump up candlestick and the candlestick body is getting smaller and smaller.

 I would stay cautious and not to chase as I think is good for it to retreat a bit before continue this Uptrend move.


 If not, the next moment we may seeing a sharp correction mode happening soon!

Quote :

US crude sanctions against Iran could push oil prices above $100 a barrel, strategists say.

 Not a call to buy or sell.

 Pls dyodd.

Sembcorp Marine Ltd, an investment holding company, provides offshore and marine engineering solutions worldwide. The company engages in the turnkey design, engineering, procurement, construction, and commissioning of offshore newbuilding and conversions, FSOs, FPSOs, FDPSOs, FPUs, MOPUs, gas terminals, FLNGs, FSRUs, jack-ups, semi-submersibles, drill ships, SSP solutions, TLPs, and SPARs. It also engages in the repair, refurbishment, retrofitting, life-extension, upgrading, and conversion of vessels, marine and offshore structures, LNG and LPG gas carriers, cruise ships, ferries, mega-yachts, floating production vessels, MODUs, tankers, containers, and cargo ships, as well as offers jumboization and dejumboization solutions. In addition, the company offers afloat and emergency repair, underwater cleaning and repair, main engine maintenance and repair, steel and pipe work, electrical and instrumentation repair, mechanical and motor rewind repair, tank cleaning, sludge and oily waste disposal, staging work, hydro jetting and hydro/vacuum blasting, riding crew and voyage repair, specialized workshop repair and reconditioning, vessel towage and port clearance arrangement, specialists service and navigation, automation, safety, and fire protection services. Further, it offers offshore platform solutions, such as integrated process; production, riser, and drilling; wellhead, power generation, manifold, and accommodation platforms; and wind-farm substations, as well as topside modules fabrication, installation, and integration. Additionally, it designs and builds sophisticated, specialized, gas value chain, ferry, RoPax, cruise, renewable energy and offshore support, naval support and security, and research and scientific survey vessels. The company was formerly known as Jurong Shipyard Ltd and changed its name to Sembcorp Marine Ltd in 2000. The company was founded in 1963 and is headquartered in Singapore. Sembcorp Marine Ltd. is a subsidiary of Sembcorp Industries Ltd.

Centurion

NAV 0.557.

Yealy dividend of 2 cents.

Yield of 4.54%. If plus special dividend of 0.5 cent then yield would be higher at 5.68%.

PE of 11.89x 

TA wise, neutral mode.

Likely to retest 45/45.5 cents! 

Not a call to buy or sell.

Pls dyodd.

I was looking at Centurion Corp. The first few things I picked up which were important were it's fast growth, mounting debt level as well as increase in equity through various means such as conversion of warrants to shares etc. 

Quote: Jeremyowtaip

I decide to follow on with more investigation into these areas to see what I can find. As such, I list down the following findings and provide my opinion on this company.

I look at their growth in revenue, operating profit and net profit attributable to shareholders for the past 5 years (2012 to 2017).

 The CAGR for their revenue was 16.01%. The CAGR for their operating profit was 37.11%. 

The CAGR for their net profit attributable to shareholders was 28.26%. This company has been really profitable and experienced fast growth in running their businesses which are into workers and students accommodation. They have also ventured to overseas markets like UK and Malaysia. But their businesses still derive predominantly their revenue from Singapore.

Next, I look at their debts over the years. Five years ago, their debt to equity ratio was 0.69. As of current Jun 2018, their debt to equity ratio was 1.35. It looks like they have been gearing up taking on higher debts to pursue growth over the past 5 years.

Now, it begs the question whether they have reached a point whereby they have geared themselves too much. I will leave this opinion to the individual reader as different people can see things differently. Some would say it is still ok given their nature of business in providing accommodation which is well diversified across different premises, different locations in a country, different geographical regions, serving different client types (workers and students) and has good occupancy rates showing the demand is still strong to meet supply. However, I noted that this year, their revenue has decreased due to a lease on one of their premises expiring. Thus, be careful of thinking things will always be a bed of roses as the future of any business is always unpredictable. Only one thing is predictable here. Creditors always run after their debtors to get their money back when the time is up.

 And we already seen so many cases of companies pursuing growth with high leverage which did not turn out well. When times are good, people do not question high leverage. When times are bad for the business, then suddenly people start to grow very panicky and rushed for the exit to sell their stocks in a company which is running into debt problems.

Last but not least, I look into their equity position. Their EPS 5 years ago in 2012 was 1.21 cents. Their EPS in 2017 was 4.17 cents. Their CAGR in EPS was 28.1%. Their CAGR in shareholder equity was 34.24%. Their return on equity in 2012 was 8.6%. Their return on equity in 2017 was 6.85%. It seems that despite some dilution measures they have taken to raise equity in various forms also to pursue growth, they still managed to maintain decent profitability for shareholders in terms of EPS growth. However, returns on equity have fallen over the 5 years due to their raising of equity to pursue growth apart from debts.

The current ratio for Centurion Corp is now around 0.54. It has intentions of taking up a potential bond to fulfill it's immediate debt obligations (see link below). It has grown well by taking on high leverage, similar levels to the likes of Ezion Holdings last time. This is a choice an investor has to make here. Would you have the attraction and risk appetite of a high leverage growth company like Centurion or not? Again, different people, different opinions on the whether the high leverage growth in Centurion is still safe after all or not based on it's business model and operating industry which is different from Ezion Holdings.

"Centurion Corporation Limited: Potential New SGD Bond" by FSMOne 

https://secure.fundsupermart.com/fsm/article/view/14019/centurion-corporation-limited-potential-new-sgd-bond