Top 10 Property Stocks – Next Target for Acquisition



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.

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.

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.
Brexit has created new stock trading and investing opportunities globally. At the same time, British Pound is severely corrected, one could apply Forex Optimism to maximize the gains in overseas stock market. The fear factor has supported the bullish gold price and gold related stocks (eg. gold miners), analysis with Commodity Optimism is needed. Every crisis is an opportunity, provided one knows how to position.

Simple Strategy to Screen for Undervalue Stocks

Global stocks have experienced significant corrections over the past 1 year, many stocks including blue chips are at attractive low prices, start to recover now. How to screen for undervalue stocks which we could invest safely?
Benjamin Graham, the first teacher of Warren Buffett, taught him on value investing, i.e. buying at much discounted price for a stock compared to its intrinsic value. The primary indicator is to compute net asset value (NAV) or book value of a stock, buying below this price. The ratio of share Price to Book value (PB) ratio, if less than 1, discount is given. This method is very suitable for banking/finance and property sectors because their main assets (cash / property) do not depreciate easily with time. For stocks from other sectors, it requires a more advanced strategy to give a discount for different types of assets recorded in company balance sheet.

Hong Kong Land (SGX: H78) is a good example, PB is about 0.5. The stock is currently on sales at 50% discount for its Grade-A commercial properties in major cities of Singapore, Hong Kong and China. This giant stock has been recovering from low optimism. There are many other property stocks in Singapore at huge discount but it requires next level of filtering to find a stronger one. An investor has to combine PB strategy with Optimism Strategy developed by Dr Tee, understanding how much discount over PB is required to safely buy a giant stock.
This simple but powerful method is also applied by company during acquisition process to estimate the reasonable offer price, buying good business at discounted price. A stock investor should learn how to buy undervalued stocks to maximize its growth potential.

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.
Brexit has created new stock trading and investing opportunities globally. At the same time, British Pound is severely corrected, one could apply Forex Optimism to maximize the gains in stock market. The fear factor has supported the bullish gold price and gold related stocks (eg. gold miners), analysis with Commodity Optimism is needed. Every crisis is an opportunity, provided one knows how to position.

How to Position in Stock Market with US Interest Rate Hike?

After the last 1 year of global stock market correction, there are many undervalue stocks with growing potential.  Stock traders and investors have the following key questions for Dr Tee:

 

Q: How will the potential US interest rate hike affect global stock markets?

Dr Tee:  Historically, US would increase the interest rates from the low during the bullish markets, eg. in years 1994 and 2004, when the economy was improving.  Global stock markets would then enter the second phase of bull run for a few years before reaching the peaks of stock markets, eg. in years 2000 and 2007.  The same currency cycle may repeat itself when US starts to increase the interest rate this year.   The recent global stock market correction has helped to reduce the mid-term risk due to potential US interest rate hike because many traders have either taken profit or cut loss during the uncertain market.  With stronger US economy, unemployment rate in May 2016 at only 4.7%, the US stock market may continue to grow, supporting the rest of lagging global markets until the last straw which may eventually break the camel’s back, a real market crash. Read further to understand the correlation between macro economy and stock market.

 

Q: Why the global stock markets did not crash after last 1 year of correction?  Am I too late to profit from the possible stock recovery?

Dr Tee:  Market always has uncertainties which create greeds and fears among the traders. Most people are too normal, when seeing friends and colleagues losing money in stocks over the last few months, they prefer to sell stocks or not doing anything.  A wise trader or investor would learn to leverage on fear factor of majority, buying good stocks at low price, then selling high to those speculators who want to buy high sell higher.  The timing now could be just nice for traders to benefit from the recovery of global stock market but we must learn what to buy, when to buy and sell.  Investors would require more patience. Stock market sometimes is a zero sum game, the majority of traders pays for tuition fee to the minority who have mastered the secrets of buy low sell high.

Two Opportunities You Need To Know About The Markets Happening Right Now!

There are 2 interesting things happening in the markets right now, one is in Oil and the other is in the large divergence between US equities and bond yields.

Let’s take a look at Oil first. Price has been steadily moving higher since my last post on Light Crude Oil here. In that post, I highlighted a bullish divergence.

We had the Doha talks over the weekend, where the oil-producing nations tried to come to an agreement on freezing production levels in a bid to stage a proper recovery in oil prices. There was a lot of optimism going into the talks but in the end, there was no deal.

Seems like for now, all countries are going to just produce for self-interest until something changes.

WO-BA065_OILCRI_16U_20160419183331

The larger oil producing countries like Iran and Saudi Arabia, are even ready to increase their production of oil.
However, the less wealthy countries have problems supporting their current levels of production at current prices of oil. These countries tend to have oil accounting for a very significant part of their economy. However, they lack funds to further invest in the energy sector, so it’s difficult for them to lower the cost of oil extraction.

In my previous post I highlighted a few scenarios, all of them had bullish implications. Now that prices of Oil have floated higher, some of the scenarios have changed.
At current levels, most of the countries will still profit from oil production, temporarily decreasing the need for any freeze on oil production.

It is yet to be seen if oil price can hold current level into the longer term and move higher.

 

Oil technicals

Oils chart

I called $43 as an interesting level which we should react from. Price has since reached for it twice, stopping just shy of it at $42.

It’s making a run for that area again right now.

This will present us with some clues for the next swing in Oil.

A rejection from this area would indicate $36 is on the cards again.

A break through the area would bring $51 and possibly $56 into play.

The chart I’ve included is a Daily chart comparison between Light Crude and Brent Crude oil prices.

Light is the stronger of the two, having just done a push into the previous consolidation area.

These oil producing countries don’t like low prices in oil, so they will take necessary actions to keep prices afloat.

Looking at how price didn’t like staying under the $30 zone, prices should remain above that moving forward. But should the major Oil producing countries decide to increase production and supply grows a lot, we could see prices turn downwards.

 

Market divergence

djia nq txn chart

Here is another divergence which has been forming recently.

It’s on the weekly chart of US markets, between the DJIA and Nasdaq and 10 year bond yields.

Usually movements in equity markets are led by a similar move in yields. This is because investors flee to bonds whenever there is strong uncertainty in the markets. When there is uncertainty, equities tend to drop. When investors buy up bonds, bond yields will drop.

Firstly, there is a divergence in the equity markets. DJIA making higher high while the Nasdaq is making a lower high.

Another divergence has developed with bond yields remaining near the lows, barely making a swing high, while the equity markets move nearer to previous swing highs.
This means investors are buying up equities while also buying bonds, which seems to indicate to me as a whole they aren’t sure what to do in the markets and that translates to uncertainty.
So there seems to be a bearish divergence between equity and bond yields on the weekly timeframe. This could change as we are in a time with US government policy stances could be adjusted.

As a trader and investor, please do your own due diligence before committing any funds to a trade idea.

 

Good trading everyone!

Tips For You To Achieve Trading Consistency Right Now

What does it mean to be a consistent trader?

We can’t control how much profit the market gives us, what we can control is only how consistent our actions are. Such consistent actions would produce as consistent a gain as possible given the varying market conditions.

It’s been said, so many times, so many ways, but here it is again, you need Discipline to follow your method.

All methods of trading have their weak spots in the market. Trend trading naturally won’t work as well in range bound markets. Range trading won’t work as well in trendy markets. Support and resistance doesn’t work so well in thin liquidity markets where levels tend to get crossed more easily. So no matter what your edge is in the markets, there will be a spot in the market which your strategy won’t perform so well in. That’s where the other aspects of trading come in to help you minimize damage from the losses.

So what isn’t a consistent trader?

I won’t tell you that in order to label yourself a consistently profitable trader, you need to produce 10% every single month for a year.

It really doesn’t work that way.

During market conditions which aren’t right for your method, it’s unlikely that you would be making 10%. If you managed followed your method and stuck to your rules without doing any YOLO trading, consider that month well handled and give yourself a pat on the back.

Giving yourself such fixed expectations like “10% a month” regardless of market conditions or personal circumstances, will increase the level of stress you experience. As a new trader trying to figure things out, you certainly don’t need the additional stress and distractions. Just focus on building the right habits first.

There’s nothing wrong with having monthly or quarterly or yearly targets. But set something which you believe is realistic for your trading method and understand that just because you don’t reach the target for any particular month, doesn’t mean you’re suddenly not a “consistently profitable trader”.

better view

A better way to view consistency.

Take measure of how well you do in the varying market conditions. If you see that the market has been suitable for your methods, but your trades have not netted you much profit, then you need to take a closer look during your trading reviews. You should review your trades on a daily, weekly or monthly basis, depending on your frequency of trades.

Here are a few things to look out for in every trade when you do your trade reviews.

1) Were your entries based on a consistent criteria?

You can ensure this by writing out your entry criteria. Then before entering the trade, run through the criteria to make sure this setup fits. This is the trading checklist which most people will have.
Most trading styles except scalping, will allow you enough time to run through your checklist before entering your orders. If you use limit orders then even better. If you use market orders, be more prepared prior to sitting down for your trading session.
With practice, you can run through every point on your list by memory.

Start practicing.

2) Did you manage each trade in the same way?

Taking partial profits or tightening stop-losses or exiting your trade altogether. You should have some rules for how to go about implementing each of these steps for every trade. For example, one useful rule I have for trades which I do, is a time stop. If the trade doesn’t move within this time limit, I assume that the momentum (a criteria to my entry) has faded, hence the trade is no longer valid. So it only makes sense that I exit the trade or reduce size since my edge is no longer present.

3) Was your risk consistent?

It helps to set a fixed risk for every trade you take. Usually this will be a percentage of your capital.

Each trades will have different distances where you should place your stop-loss. Therefore sizing your trade slightly differently to suit each trade will be required.

You could choose to use a fixed stoploss for every trade as a personal preference, but be aware that in this way, you won’t be taking full advantage of setups with better risk/rewards as they share the same position size as trades with mediocre risk/rewards.

Since you won’t know the outcome of your trades before entry, this way makes it fair to all your winning and losing trades. This method was popularized by Van Tharp in his book, “Trade your way to financial freedom”. In the book, he describes various ways to manage your risk or improve upon what you are currently doing.

journal

Don’t just be your worst critic, be your best friend as well.

When we do trade reviews and self-reflect, we can be harsh on ourselves. That’s fine, because in order to reach a higher level of competency, we need to demand more of ourselves. But since we are just human afterall, it’s understandable that once in a while, we might lose control and for whatever reason break our rules. We might enter a trade on a wimp or start shifting our stoplosses. If we go out of line, it’s important we recognise this as soon as possible and get back on track. There is usually an emotional reason that we “Rebel” or do something impulsive. The causes could be external or internal. Nevertheless, such things happen, and that’s when we need to be our best friend as well.
It’s important to limit the damage of such occurrences by sticking to our risk management. We can fumble on our entries and exits and trade management, but we MUST always have control of our risk. Make it a habit to always enter a stoploss for every single trade.

Even more importantly, we need to recognize that we are human, forgive ourselves, then move on.

One thing you can do, is to have a way to release stress. Either by doing sports, painting, spending time with your pets or even just meditation.

Tips to improve your consistency right now!

Here are a few things you can do right now to immediately increase your consistency.

Write out your trading beliefs which guide your analysis to derive a long or short bias on your setups.

Write out your trading setup.

Write out your trigger.

Write out your trade management rules.

Write out your risk parameters.

This is essentially your Trading Plan.

Read your Trading Plan every single day before you start trading.

Starting tomorrow, you will feel in control of your trading and more confident of your trades.

 

Within a month, you will see a vast improvement in your consistency. Assuming you have a profitable method and strategy, you will start to see profits.

 

Happy Trading!

How to Pay $50 to Exchange for $100 in Hongkong Land?

To most people, recessions are typically not good news. It tends to be accompanied by retrenchments or pay cuts.
But there are opportunities in difficult times, and savvy investors know this and they know the recession tactics to take advantage of this. There are only a few economic cycles which we will experience in our lifetime, so each one counts.Recessions offer value for investors and higher volatility for traders to profit.It resets the cost of things so that we can start the next stage of growth.So what can we do during a recession to turn challenge into opportunity?
The first thing is actually not to panic.

4 Tactics You MUST Know Going Into This Recession Period!

To most people, recessions are typically not good news. It tends to be accompanied by retrenchments or pay cuts.
But there are opportunities in difficult times, and savvy investors know this and they know the recession tactics to take advantage of this. There are only a few economic cycles which we will experience in our lifetime, so each one counts.Recessions offer value for investors and higher volatility for traders to profit.It resets the cost of things so that we can start the next stage of growth.So what can we do during a recession to turn challenge into opportunity?
The first thing is actually not to panic.

Gain Enlightened Trading Perspective With These 10 Quotes From Market Wizards!

I love reading quotes.

Quotes are short and usually simple to read, yet they hold immense wisdom captured in just those few words.

They are a very elegant form of literature.

I’ve compiled 10 quotes from the market wizards of our time that will help open your perspectives to trading.

Read.

Reflect.

Plan.

Take Action.

Become a better trader RIGHT NOW.

“The most important rule of investing is to play great defense, not great offense. Every day I assume every position I have is wrong. Always question yourself and your ability. Don’t ever feel that you are very good. The second you do, you are dead. Always maintain your sense of confidence, but keep it in check.”

-Paul Tudor Jones

 

“The realization that you are responsible for your results is the key to successful investing. Winners know they are responsible for their results; losers think they are not.”

-Dr. Van K. Tharp

 

“Investing is like poker. You should only play the good hands, and drop out of the poor hands, forfeiting the ante.”

-Gary Biefeldt

 

“Most traders who fail have large egos and can’t admit that they are wrong. Even those who are willing to admit that they are wrong early in their career can’t admit it later on! Also, some traders fail because they are too worried about losing. I’m not afraid to lose. When you start being afraid to lose, you’re finished.”

-Brian Gelber

 

“I don’t really care about the mistakes I made three seconds ago in the market. What I care about is what I am going to do from the next moment on. I try to avoid any emotional attachment to a market.”

-Paul Tudor Jones

 

“Two of the cardinal sins of trading—giving losses too much rope and taking profits prematurely—are both attempts to make current positions more likely to succeed, to the severe detriment of long-term performance.”

-William Eckhardt

 

“Moral: If you can’t take a small loss, sooner or later you will take the mother of all losses.”

-Jack Schwager

 

“Trend systems do not intend to pick tops or bottoms. They ride sides.”

– Ed Seykota

 

“If you want to succeed, double your failure rate.”

– Thomas J. Watson

That last one isn’t actually from a market wizard, but the quote highlights 2 very important factors in trading.

1) You need to work hard.

2) It’s a numbers game.

 

Good trading everyone!