CityDev

Don't Catch the Falling Knife!

From TA point of view, looks rather bearish.
We had witnessed the Gap Down on 6th July 2018 whereby the price has been fallen off from $11.39 to close at $9.40. Since then, it had continue to trend lower and went down to touch $8.10 on 12th Oct 2018. This is super bearish!

Looks like it may likely move down to retest the recent low of $8.10. Breaking down with high volume that may drive the price lower to challenge the support at $8.00. If $8.00 fall to hold then it may slide down to test $7.70 with extension to $7.30 level.

It might be good to wait for it to stabilize first before taking any further action to accumulate.
If it is able to stage a strong rebound and rises above $8.65 then we may likely see a reversal happening.


Not a call to buy or sell.

Pls dyodd.

STI ETF

I think is almost good time to revisit this STI ETF as can be seen from the chart, RSI is gently rising . Market may still has some room to go lower and the bottom line could be somewhere near 2830 level.

PE is about 10.69x which is still undervalue as the historical average PE is about 15x.
Dividend yield of about 3.63%.

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.

StarHub

From TA point of view,looks bullish!
After touching the low of $1.61, it has managed to stage a strong recovery and head Higher to touch $1.98, this is rather positive.

Short term wise, I think it may likely re-attempt $1.98 . Breaking out with ease plus good volume that may propel to drive the price Higher towards $2.05 then $2.11.


Not a call to buy or sell.
Pls dyodd.

StarHub Ltd, an integrated info-communications company, provides information, communications, and entertainment services for consumer and corporate markets in Singapore. It operates a mobile network that provides 4G and 3G services; and manages a hybrid fibre co-axial network that delivers multi-channel pay TV services, including HDTV, Internet TV, and on-demand services, as well as ultra-high speed residential broadband services. The company also operates a fixed business network that provides a range of data, voice, and wholesale services; and offers a range of business broadband plans, as well as commercial and residential IPTV services. In addition, it offers telco services for various business needs from enterprise mobility to high speed Internet connectivity to VPN; info-communications solutions; and digital services. The company was founded in 1998 and is based in Singapore. StarHub Ltd is a subsidiary of Asia Mobile Holdings Pte. Ltd.

SGX

1st quarter result was released on Friday - 19th Oct 2018 and I think the result could be much better that market expectation of a drop in total revenue and net profit.

Overall it has managed to achieved a S$209 million, up 2% from a year earlier.
Operating profit: S$106 million, unchanged.
Net profit: S$91 million, unchanged
Earnings per share: 8.5 cents
Interim dividend per share: 7.5 cents, up by 2.5 cents

XD on 25th Oct 2018 and pay date on 5th Nov 2018.

Looks like we may see the price heading higher come Monday and head higher to fill up the gap at 7.01 and rises higher towards 7.10 with extension to 7.20 level.

Not a call to buy or sell.
Pls dyodd.

17th Oct 2018
After touching the low of $6.81 it has managed to stage a nice rebound and head higher to hit $6.95 today , this is rather bullish!

Short term wise, I think likely to continue to head higher!

Testing $7.01 then $7.10 with extension to $7.30 level .

Not a call to buy or sell.

Pls dyodd.

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.

Temasek 5 years bond

Temasek is offering 5 years bond @ 2.7%. 

Application is open to public on 17 October to 23rd October 2018 noon time.

Application and Payment Procedures for Retail Investors in Public Offer An application under the Public Offer must be in multiples of S$1,000, subject to a minimum subscription of S$1,000.


Applications under the Public Offer are payable in full immediately, and must be made through: 

ATMs of DBS Bank, POSB, OCBC Bank or UOB; 

Internet banking websites of - DBS Bank at , - POSB Bank at , - OCBC Bank at , or - UOB at ; or  Mobile banking apps of DBS Bank or POSB.

 Retail investors in Singapore will need a CDP account to apply for this bond. Subscriptions under the Public Offer will be subject to balloting and allocation if the total subscriptions exceed the amount available for subscription under the Public Offer. If an applicant under the Public Offer is unsuccessful, in whole or part, for whatever reason, the unsuccessful proportion of the application amount will be refunded without interest.


 More details can be found in “Terms, Conditions and Procedures for Application and Acceptance” in Appendix C of the Pricing Supplement.

Ascendas Reit

I think this is a good solid Reit counter with great sponsor and we'll diversified portfolio consists of Data center, warehousibg, retail and distribution, logistics etc covering Singapore, Australia and UK. 


A-REIT announced private placement of 178 million in September 2018 for new units at $2.54 a piece to raise $452.1 million of proceeds to partly fund the second acquisition in UK and also to fund the development of new built-to-suit (BTS) property in Singapore. Some of the new financing will be used to pare down debt as well.


According to pro forma figures, management expects the acquisitions to lift the distribution per unit (DPU) .

22nd September 2018
Last Friday we have witnessed a wide Bearish bar down 4 cents to close at 2.56 , couple with High volume this is rather bearish.

Short term wise, I think it may likely retest 2.54 then 2.49 with extension to 2.45 level.

 Not a call to buy or sell.

 Pls dyodd.


 Based on A-REIT's own announcement on their rationale for the private placement, it was meant to raise funds for acquisition of a UK portfolio of 12 properties which A-REIT thinks will increase long term distributions for unitholders. The funds raised from private placement was also to be used for a built to suit property development, for repayment of some debts, for reducing their gearing, for setting aside some cash for future acquisitions and also to increase trading liquidity of it's units. It seems that A-REIT has good rationale for doing this private placement.


 I provide a link below for further read on A-REIT's recent private placement.

 Let us see below. Over the past 9 years, A-REIT has grown it's revenue at a CAGR of 9.02%. It has grown it's net property income at a CAGR of 8.72%. It has grown it's distributions to unitholders at a CAGR of 9.27%. It has grown it's value of investment properties at a CAGR of 9.63%.


 "Hot stock: Ascendas Reit units down 2.6% after manager prices S$452m placement at S$2.54 per unit" by The Business Times https://www.businesstimes.com.sg/companies-markets/hot-stock-ascendas-reit-units-down-26-after-manager-prices-s452m-placement-at-s254