Thursday, January 1, 2015

New year, new opportunities

2014 has not been a good year for me. For the first time in 5 years, I suffered losses to my portfolio. I have since studied my mistakes, and will be more focused in my trading and investing in the year ahead.

For 2015, I see opportunities in the beaten down Oil & Gas sector. Although prices could continue to fall in the next few months, I see oil prices rising back to $100, once the oil industry recognizes that it is not so lucrative to sell oil at current prices. Geopoilitical instability in the Middle East and growing global demand could also push oil price back up. Counters I am monitoring are:


Company
Business
Share Price
(as at 28 Dec)
PE
Yield
Ezion
Owns and operates liftboats
1.16
6.6
-
Keppel Corp
Builds rigs
8.75
8.4
4.9
Sembcorp Marine
Builds rigs
3.25
11.7
3.5
Swissco
Operates rigs and offshore support vessels
0.53
5.2
1.9

Sunday, December 28, 2014

Will stocks crash in 2015?

Tan Teng Boo reckons there will be a big crash for the S & P in 2015. The reasons:
  • Valuations are rich. US stock market rally has been going on for 6 years.
  • The only time US equities have gone up so long without a 20% crash was between 1992 and 1999.
  • In the last 114 years, CAPE (Shiller PE) ratio has been above 26 times during only 3 occasions - in the market peaks of 2007, 1999 and 1929.
Tan is in 70% cash currently.

The last time Tan predicted a crash was in 2011, and we know by now, he was wrong. But I am still excited, because if a crash truly comes, I will be moping up stocks.

Some of Tan's recommendations in a market crash are AIA(HK), Treatt Plc(Europe), De'Longhi(Milan), IP Group(London), Church and Dwight and Estee Lauder (US).

Sunday, November 9, 2014

Time to switch from office landlords to residential developers, says Deutsche

 It’s time for investors to switch from owning office landlords to holding shares in residential developers.

In a 135-page report entitled ‘Time to switch?’, Deutsche Bank analysts Joy Wang and Man Chien-Fie said the best time to buy residential developers is when home prices are still falling and the declines have largely been priced in by the market.

Deutsche Bank’s top picks for residential developers include City Developments ( Financial Dashboard), Wing Tai Holdings ( Financial Dashboard) and CapitaLand ( Financial Dashboard).
Its price targets for the three stocks are $12, $2.15 and $3.95 respectively.

Tuesday, July 22, 2014

3 phases of the market

There are 3 phases of the market.

The first is liquidity-driven, like what we saw in 2009 when the financial crisis was ending.

The second stage is when markets move into a fundamentals-driven phase, when investors pay attention to things such as economic data and earnings That's the stage we are at now.

The third and last stage is basically a performance-broadening phase. Here, underperformers start to get traction and catch up. This next move will likely see investors rotating from their favourite developed markets to emerging markets including China.

(Quoted from Benjamin Yeo, CIO, Barclays Singapore)

Sunday, June 29, 2014

Bullish on gold

Actually, I have been bullish on gold since a few months ago when it made new lows, but did not commit. Gold prices are starting to inch up again.

Royal Gold (RGLD), my favourite pick, has made new highs for the year. I must kick myself, for even if I have been targetting this one, has not made it my priority to get in when it softened to 59 recently (see 5 Apr post). Currently trading at 74.

Other gold stocks on my watchlist include Barrick Gold (ABX) and Silver Standard Resources (SSRI).

Saturday, June 28, 2014

Why I am out of short positions

I am out of my short positions after a brief fling. Reasons are that Lowe's prices have reversed back to the uptend, and I now want to shift my funds to long the still-bullish oil sector and the Singapore markets. Hence, I have long on:

Vard (MS7): 1.085. Will add more if share price softens.

STI: 3064. Will add more if index softens.

Wednesday, June 18, 2014

Local oil stocks to watch

I am particularly optimistic about the O&G sector.
On the local front, the ones to watch (Maybank) for are:

Ezion (TP:2.70): strong liftboat opportunities in Asia-Pac and Middle East

Mermaid (0.59): emerging oilfield services player

Nam Cheong (0.45): key beneficiary of recvering OSV market

Vard (1.27): improving order win momentum