Investing Strategies for Singapore Telco Stocks

 telco-logos
After joining of No 4 Telco Player, TPG, the Singapore Telco sector has been bearish in the last few years, with share price correction ranging from about 20% to 50%. Here is a quick summary based on current share prices:
 
Telco Stocks Optimism Dividend Yield
——————————————————————-
Singtel (SGX: Z74) 29% 4.9%
Starhub (SGX: CC3) 20% 7.1%
M1 (SGX: B2F) 2% 6.4%
TPG (AX: TPM) 17% 1.6%
 
TPG is a growing stock in Australia, sharing the limited market share of saturated Telco sector in Singapore. Both Starhub and M1 are affected more as the business depends on local Telco, while Singtel is relatively more stable as its business depends on both local and regional Asia Pacific market. M1 is severely affected with share price dropped by more than 50% but the company is still profitable, earning drops by only 25% over the last few years. It shows that Telco sector in Singapore is over-corrected, initially was driven by news, later by weaker fundamental for Starhub & M1, then driven by the market fear of huge fall in share prices.
 
As a result, Optimism for Singapore Telco is low, especially for Starhub and M1 which are <25% Optimism. Telco is usually a defensive business, after getting the limited Telco licence issued by government (oligopoly business with limited competitors), investing in infrastructure for Telco, offering services with reasonable prices, the return will be relatively stable with positive monthly cash flow. The disturbance of TPG is just a one-time correction, when the market share is redistributed among the 4 Telco players, all the 4 companies will find their own anchor point in share prices and business earning.
 
As an investor, there are 2 Investing Strategies for Singapore Telco Stocks
1) Investing for Passive Income (Buy & Hold)
– Stable dividend payment for long term investing
 
2) Investing for Capital Gains (Buy Low Sell High)
– Buy at discounted price (eg <25% Optimism), selling at bonus price (eg >75% Optimism)
 
For Passive Income Strategy, Singtel barely fulfills the criteria with 4.9% dividend yield with support of a stable local and regional business, strong sponsor of major shareholder Temasek. The 4.9% dividend yield is comparable with some strong REITs, better than local bank stocks, much higher than 2% return of Singapore Saving Bonds or 1% bank interest rate. A better way of investing for income is to consider Singtel or other dividend stocks at low optimism to maximize the dividend yield, having the potential for capital gains at the same time. An investor also has the choice to consider regional and global Telco stocks which are growing, instead of depending on saturated Singapore Telco business.
 
However, in the short term, since the Telco is still bearish, it is possible for Telco stocks to have capital loss more than 5% when share prices drops further. Therefore, it is crucial to understand the objective: investing for long term (dividend / capital gains) or trading for medium / short terms. A stock for long term investing may not be suitable for short term trading.
 
For Capital Gains strategy, both Starhub and M1 fulfill the criteria with Optimism < 25%. In the short term, M1 has better price support than Starhub. Choices of Starhub and M1 should not base on dividend yield of 6-7% because the high yield is due to price drops, not due to earning or dividend growth. Since global stock market is over 80% Optimism, despite Starhub and M1 are at low optimism, the positioning is mainly based on trading to buy low sell high for short to medium terms. The signal for entry depends on the recovery of short term stock prices and business performance. If not, there is a risk of capture the falling knife.
 
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Time Bomb of Stock Market

Time Bomb
S&P500 has to prove its recovery this week, breaking 2700 points will be a test of strength for US stock market. If this 2700 intermediate resistance could be broken, Asia stock market can only catch up next week after the Lunar New Year holidays.

A smart short-term investor who plans to buy low after recent 10% stock market correction, may integrate with trading strategies, waiting for uptrend market momentum and greed to come back. The recovery process may not be smooth after the recent market shock as some traders will be more cautious, not as “crazy” as before.

If the sell down last week is proven to be just a correction (stirring of hot soup), then the next peak will be even more thrilling as it may potentially form double top or even Head & Shoulder pattern or Shooting Star, which can be risky in a high optimism global stock market.

In short, positioning in high optimism stock market has to be short term (following the trends closely) unless it is a truly defensive stock.

When US 10 years bond yield is approaching or exceeding 3%, the Time Bomb of Stock Market could be triggered by any potential black swan, the last straw which may break the camel’s back. Until then, enjoy the bumpy ride of crazy bull.

 

Gravity of Stock Market: Heaven – Earth – Hell

newton_law_aapl_bn
The high volatility of global stock market last week is comparable with the time in year 2011 when US losing AAA credit rating. If we were not amazed by upward strength of US stock market over the last 1 year, we should not be surprised as well how it drops with similar strength but in reversed way.
 
US and global stock market is still at high optimism. High optimism means share price is a bonus, a market could not sustain at high optimism for too long, it has to correct down near to its fair value which is like a gravity. Sometimes it may over-correct, going to low optimism region which is a discounted price.
 
Remember Ein55 Style #7: Heaven & Earth. It is similar to life, usually we experience a cycle of 3 stages: Heaven – Earth – Hell. A person could not be at Heaven stage (smooth life, successes, winning, etc) all the time, sometimes we may feel like Hell (down, depressed, failure, etc), although most of the time we are on Earth with daily lives (regular routines). Similar to Earth Gravity, value of stock market will pull down high optimism prices, bringing up the low optimism prices.
 
When one is at Heaven of stock market, don’t assume we are a winner all the time, learning to sell high, so that the burden is less when it is due to fall down again to Earth one day. Similarly when one is at Hell of stock market, as long as can endure through the tough time, there will be chance to go up again if there is enough cash and able to take actions to buy low when most people is suffering.
 
Sir Isaac Newton discovered the Law of Gravity (famous story of apple falling on his head) but he could not apply in the world of stock market, losing lots of money in South Sea Bubble. Stock market is not designed for smart people. Stock market is for one which can find strong business as value stock, wait patiently to buy low, overcome greed to sell high. A big winner in stock usually is lonely because few people would do the same way.
 

Learn from Dr Tee on the law of gravity of stock market with optimism.

 

Time for Actions in Stocks (Personality Based)

White clock with words Time for Action on its face
Position in the current high optimism stock market with 10% dip in S&P 500, following your unique personality: Trader or Investor, having stocks or no stock. Here are possible time for actions in stocks for 4 types of personalities:

1) Traders – With Stocks:
Short term traders should have sold the stocks (taking profit or even cut loss) a few days ago when short term trend turned bearish. For medium term traders with higher risk tolerance level, plan to exit if the correction has met the exit strategy.

2) Traders – No Stocks:
Waiting for signal to come back again (either short term or medium term), don’t capture the falling knife buying low in downtrend. Current short term support is broken for Level 3 (stock indices), about 10% price correction for S&P 500 is significant, it may take time (weeks or even months, need strong economic data and even support from political economy, price will show if there is any recovery signal) for the market to recover. Even if individual stock (Level 1) is strong, it is against the market trend, chances of sustainable bull may not be high. Since the long term and medium terms are still bullish, possible shorting for trading may be only considered for short term.

3) Investors – With Stocks:
Long term investor have already gained if holding from low optimism to high optimism market. Current high optimism market is only a bonus, not to use fundamental or strong economy to justify the holding because any black swan (may not be a known crisis, could be a butterfly flapping wings, potentially could cause a thunderstorm eventually) or the last straw which may break the camel’s back due to sudden transition from greed to fear. Investors may have used trailing support so far, risk tolerance level is higher (possible to hold as long term optimism is still high) but when the condition is met, has to exit as well, just needs more signals for confirmation. There is no need to guess the direction of high optimism stock market which is full with randomness. For investors, the difference is only big win or smaller win.

4) Investors – No Stocks
Current market correction is still not yet the condition to buy low as optimism is still high. It requires patience to wait for tremendous fear in the market to truly buy low, eg. a blue chip with more than 50% discount. Investors are likely to continue to wait but studying harder to shortlist at least 10 global giant stocks, so that action taking can be faster if global financial crisis really comes one day. Cash is king when used at the right time.

—————————

Currently it is too early to conclude whether it is only a short term stock market correction or beginning of global financial crisis. A wise trader and smart investor would not take it lightly, starting to take the right actions (Buy / Hold / Sell / Wait / Shorting) following own personality. Doing nothing (pure ignorance) without a strategy can be very risky.

Learn further from Dr Tee on how to Time for Actions in Stocks.

 

Walking on Thin Ice of Stock Market

Walking on Thin Ice
After the surprise dip of 666 points on 2 Feb 2018, Dow Jones Index dropped another 1175 points on 5 Feb 1018, there is total of about 7% correction over the last 2 trading days, strong enough to drive short term traders (who long) out of the game temporarily.

Those algorithmic trading tools which follows the TA rules, when critical short-term support is broken, would rush to find the nearest exit to sell down with high volume recorded, adding to the power of market correction in a short time. There are over 70% stock trading in US is done by robot or algorithmic trading, mostly are trend follower, therefore when there is a flash crash, the robots will follow one another to exit from the stock market or even start the shorting process.

The 7% stock market correction is overdue, especially for US and Hong Kong stock markets which have been over-heated in the past few months. Macroeconomy and stock market are connected loosely, when the fear emotion is over (intra-day VIX was 50 but subsiding quickly), fundamental will have influence over the technical again, before the greed emotion takes over again.

There is nothing wrong for short to medium term traders to take profits of last few months as this was the exit strategy. After all, US was at very high Optimism (over 90%), any potential risk could be the next black swan, resulting in the global financial crisis. In year 2000, the dot com bubble was simply too large, price over value, therefore a high optimism stock index, itself can be a potential crisis because when most people are profiting from the bullish market, any shake would change the greed into fear.

Trading in a high optimism stock market is as if walking on a layer of thin ice. Sometimes it could be a false alarm (wolf is coming), sometimes it could be a real crash of ice and stock market. Therefore a systematic and disciplined trading plan is needed.

Investors would want to wait for the global financial crisis to come ASAP to buy low for strong fundamental stocks. However, political economy could add more complexity and traders could buy low again in short term if it is only a regular correction. Therefore, patience is crucial for investors.

Allocation of funds (cash vs stock) is critical to manage the emotions for a trader and an investor. When one invests too much at high optimism, the self control is weak. It is fine to cut loss in a trading market when the future price trend is against the earlier assumption. The worst is a mismatch of personality with strategy, eg. entering as a short term trader for a quick return, ending up holding as a long term investor when stock market is confirmed a crash.

This Chinese saying is a good summary of strategy at high optimism stock market:
《詩》云:「战战兢兢,如临深渊,如履薄冰。」

Learn from Dr Tee to match the stock trading or investing strategy with own personality, mastering Walking on Thin Ice of Stock Market.

 

Early Signals from Bull to Bear Market

Stock Market Dip

Global Bond Market has been at historical high prices over the past few years. It is possible that the crash of bond market could be the next black swan. Currently the funds from bond market is transferred gradually to stocks, properties or safe cash in banks. The changes are still not an alarm yet but if both stock and bond prices drop significantly over a period of time, an investor would have to be very careful.

This is the characteristic of last phase of bull run with high prices, any drastic movement will shake the confidence of investors who have high profits in stocks. The solution? Sell some as well to take partial profits. The initiation of bear market is not confirmed yet.

VIX (Volatility Index) is shooting up to more than 17 but the uptrend fear may not be sustainable.

During 911 time, a drop of 600 points overnight is about 5% to Dow Jones, considered a disaster. After Dow Jones is doubled since then till now, the impact of the same drop of 600 points is only 2.5%.

We need to compare the stock market in both relative and absolute ways. A stock market cannot be bullish every week, needs to take a rest, allowing some people to take profit and some people to enter the market again.

Since the global stock market is over 80% Optimism, US more than 90% Optimism, it could be a smart move to adopt a shorter term position.

High Optimism = bonus price, we want to sell high to others. Low Optimism = discounted price, we want to buy low from others. Stock market has returned the last 2 months of bonuses (gains) after the correction so far. Each of our unique personality will determine the unique low and high optimism, forming a personalized trading plan or investing strategy.

A stock trader would not capture the falling knife, waiting patiently for the uptrend to come back again after breaking the resistance to form higher lows. Global stock market is “tired” after the bull is running for so many months, need time to rest. A trader would not guess the direction of market or future prices but self-discipline is important (entry, take profit, cut loss, position sizing, etc). An investor would use the market greed and fear as additional weapon to fundamental analysis. Ability to take actions aligning to own personality is key to success.

Eventually the train will reach the terminal of “Bull Line”, changing the direction to “Bear Line”. Knowing the risk tolerance of oneself is critical, knowing when to alight. Before changing the lines from Bull to Bear, we will see some road signs, now a few are shown, more will be seen in future.

Learn from Dr Tee through Early Signals from Bull to Bear Market to take actions in the current stock market.

 

Download Latest 2 eBooks by Dr Tee: Global Market Outlook 2018 & Top 10 Stocks in Dream Team Portfolio

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Fresh from Oven: Download the latest 2 eBooks by Dr Tee on (1) “Global Market Outlook 2018“, covering comprehensive investment topics: Stock, Property, Commodity, Forex, Bond and Political Economy & (2) “Dream Team Portfolio” with Top 10 global stocks for capital gains and passive incomes. Past readers have benefited, learning Simple and Powerful strategies which deliver incredible results in stocks.

Are you worried or excited about the current global stock market, especially with the controversial US President, Donald Trump?  Every crisis is an opportunity for investing. You will learn useful methods step by step from 2 valuable eBooks by Dr Tee which work in stock market. Take action now to surprise yourself!

Dr Tee 刚完成2本投资秘籍。2018年环球市场展望》书内覆盖很多在环球主要市场 (美国、新加坡、香港、中国、欧洲) 的投资议题及提供解决方法。10大梦幻股票》书则分享了各种实用投资策略于10大高潜能股票。很多读者已经从Dr Tee过去发表的股票投资书中受惠,大家可在Dr Tee 的最新报告中洞悉环球市场目前面对的风险及机遇。

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eBook #1: Global Stock Market Outlook 2018 2018年环球市场展望》

  1. Mass Market Sentiment Survey (大众市场情绪调查)
  2. Review of Global Stock Markets (环球股市回顾)
  3. US Market Outlook (美国市场展望)
  4. Regional Market Outlook (Europe, China, Hong Kong) (区域市场展望)
  5. Singapore Market Outlook (Stock & Property) (新加坡市场展望)
  6. Conclusions and Recommendations (总结及建议)

 

eBook #2: Top 10 Global Stocks – Dream Team Portfolio 10大梦幻股票》

  1. Personalized Stock Investment Portfolio (个人化股票投资组合)
  2. Ein55 Global Top 10 Stocks (10大全球高潜能股票)
  3. Summary of Actions (投资方向总结)

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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.

The key of stock trading and investing is to match our goals with our personalities, there are at least 10 different strategies to choose.  When Ein55 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.

最好的进场时机是当大部分人在惶恐不安,但业务依然在正常运作及表现稳健的时候。这是难得一遇的大好时机,我们应学习如何从中受惠,真真正正做到低买高卖。

Dr Tee建立的乐观指数策略让投资者知道哪种投资(股票、外汇、产业、商品、债券等) 可以安全进场;何时买入;何时卖出;或选择长期持守。迄今已经有超过1万名人士从Dr Tee为大众提供的高质素免费课程中受惠。马上行动,利用你的金融知识进行投资,开始你迈向财务自由之旅。

 

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    市场展望 (股票、房地产、债券、外汇、商品、宏观经济等)
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Top 10 Global Blue Chip Stocks – Dream Team Portfolio

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There are over 40,000 stocks in the world, a smart investor has to carefully choose Top 10 global blue chip stocks aligned with own unique personality as investment portfolio to grow the wealth.

A smart investor should form a dream team portfolio with global Top 10 stocks for both passive incomes and capital gains. Let’s learn step-by-step with a portfolio of 10 global blue chip stocks with strong fundamentals in 8 growing sectors (Bank, Property, REIT, F&B, Casino, Consumer, Oil & Gas, ETF), applying Ein55 Optimism as investment clock, waiting patiently to buy low in global financial crisis and sell high in bullish stock market for tremendous potential return.  These Top 10 stocks are diversified over 4 countries: 4 from Singapore, 3 from USA, 2 from Hong Kong, 1 from Malaysia.  Strength and opportunities for each stock and suggested strategies will be explained.

Stock investment is not just what to buy, the mastery of investment clock is crucial, knowing when to buy and sell to maximize the profit.  In general, Buy when Optimism <25%, Hold or Wait when Optimism 25-75%, Sell when Optimism >75% (see sample Ein55 Optimism in Figure below).

 

(#1)  ICBC (Hong Kong, HKEx: 1398), Industrial and Commercial Bank of China

Defender / Midfielder Strategies: For long term investing, collect stable dividend payment as passive income with China and Temasek protection. Maximize dividend yield when buying stock at low optimism.  For medium term trading, apply Ein55 Optimism to buy low sell high every few years for quicker capital gains.

Banner 1 - ICBC

ICBC is the largest bank in China and also the whole world (based on current share price and valuation).  The business with stable growing fundamental is supported by strong economy in China with large population.  Temasek is a major shareholder, providing stability to the share prices, an additional shield of defense for investors.  With increasing US and global central bank interest rates, the outlook for banking and finance stocks are positive as the net interest margin (NIM) will help the global banks to grow in earnings until the next global financial crisis.

Current Ein55 Optimism of ICBC is high at 78% (see Figure above), in addition to hold for stable 6% dividend yield, an investor also has an option to sell the stock first, buying back when share price drops to below 25% Optimism in future, aiming to maximize the dividend yield.  Since global stock market is at high optimism, an investor has to take note of the signals of global financial crisis which would affect the global banking and finance stocks significantly.  Crisis is an opportunity if an investor knows when to buy a strong fundamental stock at price with low Ein55 Optimism.

ICBC is a bank stock, cyclic in nature due to volatile China / Hong Kong stock market and economic cycles.  Therefore, besides being a “Defender” stock (dividends only), it may also be considered as a “Striker” (capital gains only) or “Midfielder” (capital gains and dividends) for trading in medium term, following trends to long or short, gaining from average 65% profit from medium-term volatility of share prices with cyclic investing every 2-3 years.

 

(#2)  Berkshire Hathaway Class-B (US, NYSE: BRK.B)

Midfielder Strategy: High-growth fund for capital gains with Warren Buffett wisdom when buying at low optimism

Banner 2 - Berkshire - B

Warren Buffett is the richest investor in the world.  Berkshire Hathaway represents an average performance of Buffett’s investment portfolio.  Berkshire Class-A stock is very expensive, approaching $300,000 for 1 share, mainly suitable for high net worth individuals or big funds with long term investment strategies as the stock did not pay dividend, there was no change in number of shares, all the retained earnings for decades are accumulated and reflected in its growing share prices.  Berkshire Class-B stock is a more affordable option for retail investors, pro-rated at 1/1500 price of the Class-A stock, below $200 / share currently.

Berkshire Class-B allows an easy way for retail investor to diversify over a portfolio of strong fundamental stocks owned by Warren Buffett. Despite Berkshire is a growth giant stock, it is still susceptible to systematic risk of economy cycle. During global financial crisis in 2008-2009, Berkshire share price was halved due to excessive market fear. An investor who follows Ein55 Optimism to buy below 25% Optimism, the current share price has gone up by 3 times, currently at high optimism of 79% (see Figure above).

As an investor, one has 3 possible options for investing in Berkshire stock.  Firstly, assuming a buy & hold long term strategy, one may continue to hold the stock despite at high optimism but using the strong fundamental to overcome the next global financial crisis. This option is only suitable for those who have strong investor mindset, bought the share at low optimism price last time. Secondly, an investor may adopt cyclic investing approach, selling Berkshire stock first, buying back at <25% Optimism in future. This option is suitable for those investors who know how to integrate trading and economy cycle investing into overall strategy. Finally, a smart investor has the choice of buying better stocks than Warren Buffett, i.e. focusing on a few best component stocks of Berkshire to achieve higher growth than Berkshire but still enjoying the protection by Warren Buffett as a major shareholder of these few stocks.

The remaining 8 of the Top 10 blue chip stocks in dream team portfolio with key summary of strategies and Ein55 Optimism Investment Clock can be found here (30 pages eBook). Click to Download FREE eBook #1 by Dr Tee: “Global Top 10 Stocks – Dream Team Portfolio” (latest version of eBook with complete guide of What to Buy, When to Buy, When to Sell).

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In the same eBook Download link, reader will get another FREE eBook #2 by Dr Tee: “Global Market Outlook 2018” covers comprehensive investment topics: Stock, Property, Commodity, Forex, Bond and Political Economy.  Past readers have benefited from the analysis. Learn to position for each market crisis and opportunity with Ein55 Optimism Strategies.

Table of Contents (eBook: Global Stock Market Outlook 2018)

  1. Mass Market Sentiment Survey
  2. Review of Global Stock Markets
  3. US Market Outlook (Economy, Stock, Property, Commodity, Bond, USD)
  4. Regional Market Outlook (Europe, China, Hong Kong)
  5. Singapore Market Outlook (Stock & Property)
  6. Conclusions and Recommendations

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The key of stock trading and investing is to match our goals with our personalities, there are at least 10 different strategies to choose.  When Ein55 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 2018-03-01 - Banner - MO (Growth Investing Strategies)

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

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  • Optimism/ Fundamental / Technical / Personal Analyses
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Summary of $90,000 Charity Courses for Tzu Chi (慈济) with High Dividend Stocks

Ein55 Newsletter No 076 - image - Charity - HDS

Dr Tee, Ein55 Mentor & Graduates have together organised 5 charity investment courses (REITs/Business Trusts in Nov 2015 and May 2017, High Dividend stocks in Mar 2016 and Oct 2017, and Discounted NAV stocks in Sep 2016) in the past 2 years, donating net income of around $90,500 to Tzu Chi 慈济 (Singapore). We hope to inspire more Ein55 Graduates to reach out the society, helping others who are in need.  More importantly, they have also learned the secrets of making money through investment. When more Ein55 Graduates are successful financially, they could also contribute back to the society to help more people in future.

Here are key learning points from the recent Charity Course on High Dividend Stocks:

1) Five Characteristics of High Dividend Yield Stocks

1.1) Mature Company that have already growth to sizable scale, meaning Equity > US$1B, Market Cap >US$1B, with stable Revenue >US$1B

1.2) Dividend pay-out ratio of at least 50% or more

1.3) Fundamentally remain strong and robust for many years to come because company have certain economy moat.

1.4) Low CAPEX business

1.5) Able to generate stable Free Cash Flow

 

2) Seven Myths about Dividend Investing

Myth:  Stock prices are adjusted downward when dividends are paid.

Truth: Stock prices are adjusted on XD date, not on dividend payment date.

 

Myth:   Dividend stocks are always safe

Truth:  A company can stop payout of dividend when business is declining, may not be always safe.

 

Myth:  Companies that pay dividends limit growth

Truth: The growth depends on business concept / innovation, leading to consistent profit and cash flow to pay for dividend. A company could have both dividend payment and high business growth at the same time.

 

Myth:  The highest yielding stocks are the best

Truth: It can be risky because high yield stocks could have weak business with falling share prices.

 

Myth:  Dividends are guaranteed upon company announcement

Truth:  Company can cancel the dividend payout even after announcement

 

Myth:  Investors should buy the cheapest dividend stocks

Truth:  Dividend investor intention is to have low risk investment, better pick up healthy dividend stock

 

Myth:  Dividend stocks are boring

Truth: Dividend stocks are still investment that could rise and drop at any time, requiring investors to pay close attention to monitor and follow up the stocks.  An investor should not feel boring when receiving consistent dividend payment to their bank accounts as passive incomes.

——————————————————————————— 

We should drive the money (helping others when you are successful), not driven by the money (making money only for own gain).  Investors should learn the unique Optimism Strategies with FA (Fundamental Analysis) + TA (Technical Analysis) + PA (Personal Analysis) developed by Dr Tee to choose strong global stocks, buying them at low price, then holding for consistent dividend payout or selling for high capital gains.  High-quality free stock investment courses are provided by Dr Tee to the public.

 

Investing Strategies for US Stock Markets (S&P, Dow Jones, Nasdaq, Russell) at Historical Peaks

Ein55 Newsletter No 075 - image - Market Peak 2

US major stock market indices (S&P 500, Dow Jones Index, Nasdaq, Russel 2000) set new record of historical high again with 8th quarterly gains in a row. The earlier nuclear “crisis” has set a nice market correction for short term traders to buy low and sell high now.

US and most global stock markets (including Singapore) are still under a bull market but mainly suitable for shorter term trading due to moderate high market optimism. Despite at historical high stock prices, long term Optimism for US stock market is about 81%, still have room for further growth, although it is limited by probability.

One has to know own’s personality (trader or investor), designing the right trading plan or investing strategy for the current stock market. The US market is ideal for short term trading, buy high sell higher, especially after breaking 2500 points for S&P 500.

Singapore STI is still supported above 3200 points with Optimism about 48%, getting stagnant over the past few months. With global stock markets are still at relatively high optimism, market risks are getting higher but there are still opportunities for everyone but need to align with own personalities:

1) Short Term Traders: Buy High Sell Higher (Duration: weeks)

– entering after each break out of high resistance but not hesitating to exit when the signal is reversed

2) Medium Term Traders: Buy Low Sell High (Duration: months)

– buying after intermediate correction, focusing on bullish mid-term stock markets

3) Long Term Investors: Sell High Buy Low (Duration: years)

– selling stocks on hold at high optimism with declining bullishness, waiting to buy low during the next global financial crisis.

Learn further on Investing Strategies for US Stock Markets.