What is Investment?

Ein55 Newsletter No 055 - image - Investment

Investment is to take calculated risk, using special edges (eg. Optimism + FA + TA + PA) to give unfair advantages in winning rate over time, aligning to own personality with independent thinking.

Investment is NOT to copy and paste the methods with stock tips, news and rumours, following herd mentality with hope strategy.

————————————

No one could know what will happen tomorrow. Guessing or hoping is not a reliable strategy for investment. Instead, we should know ourselves first, our unique personality which comprises of many aspects, eg. control of greed and fear, stress management, risk tolerance level, profit target, financial condition, holding power, resources available, etc.

Even if one only masters one weapon, it could give special edge, although it is limited. Eg:

Investor – using FA (Fundamental Analysis) weapon to find strong business
Trader – using TA (Technical Analysis) weapon to ride the trend of prices.

One should bridge between FA & TA:
FA + TA = FATA (发达)

Ideally, we could add 2 more weapons of Optimism + PA (Personal Analysis) to form a personalized strategy for any investment: stock, property, bond, commodity, forex, etc.

Top 10 Property Stocks – Next Target for Acquisition

Ein55 Newsletter No 036 - image - Property Stocks

Singapore property market becomes bearish over the past 3 years after 7 rounds of cooling measures by government.  As a result, Singapore property stocks become more valuable with stagnant stock price and high property asset value.  There are many property counters in Singapore with share price below the net asset value (NAV), i.e. Price to Book ratio, PB < 1. These stronger property stocks become the potential target for merging and acquisition.  Potential buyers and investors learn to buy good assets at discounted price, therefore considering good Singapore property stocks during bearish property market now.

Sim Lian (SGX: S05) is one of the Top-10 property stocks in Singapore, based on Optimism Strategy with consideration of FA (Fundamental Analysis), TA (Technical Analysis) and PA (Personal Analysis).  There is no surprise when the Chairman and major shareholder, Mr Kuik, has decided to offer to acquire Sim Lian recently as he knows the true value of his own business.  Although the buyout offer of $1.08/share is the historical high price, if we analyse deeper, since the IPO in year 2000, both the share price and NAV have grown up more than 10 times with dividend yield of about 8% (based on last price before acquisition), this is only a fair price as the value has grown up as well over the years.  In fact, Sim Lian has been at low optimism (<25%) over the past 1 year before the acquisition news, the second best investing opportunity since the subprime crisis in years 2008 – 2009, when it was also at low optimism.  The offer price of buyout ($1.08/share) is near to NAV of the stock, the return compared to Day1 of stock price ($0.08/share) is over 1000% return in the last 16 years.

Ein55 Newsletter No 036 - image - Sim Lian

We should learn to find the top 10 property stocks in Singapore with high value, buying at discounted price at low optimism, ahead of other potential big buyers who are also looking for these valuable discounted assets.  Property stocks could be in crisis when the interest rates are higher and the property cooling measures last for another few more years.  Therefore, we should only consider giant property stocks with strong fundamentals, not just any stock with price discount, buy low and sell high or wait patiently for future acquisition.

 

Top 10 Singapore REITs for Passive Income and Capital Growth

Ein55 Newsletter No 038 - image - REITs

There are total of 40 REITs in Singapore, a popular investment option for retirement through passive income. By law, 90% of disposable income from REITs must be redistributed back to shareholders through dividends.  However, not all the REITs are profitable, an investor could lose money if choosing the wrong one, eg. pursuing the highest yield REIT.  REIT is an integrated investment between stock market and property market, knowledge of both markets are required to be successful.

In general, a good REIT should have strong fundamentals and DPU (Distribution per Unit) should grow over the time.  At the same time, we could also profit from good REITs through capital appreciation of share price and net asset value of properties.  A good REIT investor not only knows how to choose the REIT, but also masters the investment clock to buy / sell / hold the REIT.  Let’s learn together with the case study below on Capitaland Mall Trust.

Capitalmall Trust (SGX: C38U) is one of the Top-10 REITs in Singapore, based on Optimism Strategy with consideration of FA (Fundamental Analysis), TA (Technical Analysis) and PA (Personal Analysis).  The DPU, dividends and operating cashflow are increasing over the years, current dividend yield is about 5%.  At the same time, an investor could have profited 3 times in capital gains of share price ($0.75 to $2.25) from IPO till now (see chart below).

Ein55 Optimism of Capitamall Trust is 35% now, implying the upside is more than downside for its share price in long term perspective.  When Optimism is below 25% for Capitamall Trust (Level 1), Singapore REITS Index (Level 2), Straits Times Index (Level 3) and MSCI World Index (Level 4), it will be an ideal time to become REITs investor.  The dividend yield could be significantly increased if an investor could wait patiently for this REIT giant to fall down in share price during the next regional or global financial crisis.  After buying low, when the REITs have recovered again, an investor will have an option to sell high to take profit for capital gains or hold long term for passive income.

Ein55 Newsletter No 038 - image - CMT (Updated Aug 2017)

We should learn to find the top 10 REITs in Singapore with excellent business for our investment portfolio, buying at discounted price at low optimism, ahead of other potential big buyers who are also looking for these valuable assets.  Certain REITs stocks could be in crisis when the interest rates are higher and the property cooling measures last for another few more years.  Therefore, we should only consider giant REITs stocks with strong fundamentals, not just any stock with price discount, buy low and sell high or hold patiently for both capital appreciation and passive income.

The safest time to buy a stock is when everyone is afraid the sky will fall down while the business is still operating normally with consistent performance. This could be a rare opportunity to buy during a crisis, we should learn how to take this advantage to truly buy low sell high.

When Optimism Strategies are combined with Fundamental Analysis (value investing & growth investing), Technical Analysis (support / resistance / trends), and Personal Analysis (mind control of greed and fear), it is very powerful when one is able to take the right action (Buy, Hold, Sell, Wait or Short) at the right time aligning with own personality.

The unique Optimism Strategy developed by Dr Tee provides a special advantage to know which investment (stock, forex, property, commodity, bond, etc) to buy safely, when to buy, when to sell, including option of long term holding.  So far over 10,000 audience have benefited from Dr Tee high quality free courses to the public.  Take action now to invest in your financial knowledge, starting your journey towards financial freedom.

Bonus #1 for Readers:  FREE Investment Courses by Dr Tee

Event 2017-12-22 - Banner - MO

Reg Bar - Course #1

Event 2018-01-21 - Banner - SC

Reg Bar - Course #2

10 Strategies - Bilingual (2018)

 

Bonus #2 for Readers:  Dr Tee Investment Forum with over 5000 members (Private Group)

(Please click “JOIN” with link above and wait for Admin approval of membership)

  • Market Outlook (stocks, properties, bonds, forex, commodities, macroeconomy, etc)
  • Optimism/ Fundamental / Technical / Personal Analyses
  • Investment risks & opportunities
  • Dr Tee graduates events and activities updates

Join Dr Tee Forum

Speaker - 20 years

Fresh from Oven – Download eBook by Dr Tee: Global Market Outlook 2016

Ebook Cover 2016

I have just finished writing the eBook on Global Market Outlook 2016.  You may download from this link:
http://www.ein55.com/free-public-education-on-investment-programs-by-dr-tee/

Please feel free to forward the latest eBook 2016 to friends. You and your friends are also invited to attend the workshop on Market Outlook 2016, next 2 dates will be on Nov 26 and Dec 20. See below for details of registration.

====================================
Table of Contents
1.  Mass Market Sentiment Survey
2.  Review of 2015 Global Markets
3.  US Market Outlook
3.1  US Government Debt Limit
3.2  Tapering of QE3
3.3  Fed Interest Rate Hike
3.4  US Job Market
3.5  US Property Market
3.6  US Bond Market
3.7  US Dollar vs Commodity (Gold / Silver / Crude Oil)
4.  Regional Market Outlook
4.1  Europe Market
4.2  China Market
4.3  Hong Kong Market
5.  Singapore Market Outlook
5.1  Singapore Stock Market
5.2  Singapore Property Market
6.  Conclusions and Recommendations

 

eBook on Global Market Outlook 2015

It is fresh from the oven:   I have just finalized 35-pages eBook on Global Market Outlook 2015. You could download here:

Existing Newsletter subscribers: Please refer to the download link sent by email on 14 Nov 2014

Non-newsletter subscribers: Please sign up (click on eBook image of ein55.com) before download

Aligning with the introduction of new eBook, I have prepared 3 exciting free workshop and short course (total worth $1000) in Nov & Dec 2014 for the readers:

1) Global Stock Market Outlook 2015

2) Best Timing to Profit from Singapore Property Market and REITS Stocks

3) Market Optimism Strategy with Integrated Fundamental and Technical Analysis

 

Free seats are limited (first come first served), please register through:

http://www.ein55.com/free-public-education-on-investment-programs-by-dr-tee/

 

eBook Table of Contents (Global Market Outlook 2015)

1.  Mass Market Sentiment Survey

2.  Review of 2014 Global Markets

3.  US Economy and Market Outlook

3.1  US Government Debt Limit

3.2  Tapering of QE3

3.3  Fed Interest Rate Hike

3.4  US Job Market

3.5  US Property Market

3.6  US Bond Market

3.7  US Dollar, Inflation & Gold / Silver / Crude Oil

4.  Regional Economy and Market Outlook

4.1  Europe Market

4.2  China Market

4.3  Hong Kong Market

4.4  Japan Market

4.5  Southeast Asia Market

5.  Singapore Economy and Market Outlook

5.1  Singapore Stock Market

5.2  Singapore Property Market

6.  Stock Market Potential for 2015 and Beyond

7.  Conclusions and Recommendations

Acknowledgements

Appendix