Sunday, 22 October 2017

I Like SATS - Conclusion

1Q17/18 Highlights




Free Cash Flow drops y-o-y

For more info on SATS, check out their Investor Relations Page here: link.

Added SATS

I added SATS to my stock portfolio on 12th Oct 2017. What I like about SATS: proven track record, local monopoly for inflight food catering and gateway services, growing EPS, DPS over the years and low debt. I believe their is further local growth potential with fourth and fifth airport terminals coming up. Temasek is the major shareholder holding 39.87% of shares.

Assuming a DPU of $0.17, my dividend yield based on purchase price of $4.65 would be 0.17/4.65 x 100 = 3.66%

This yield may not seem high for now but if the EPS can continue to grow, SATS will be able to raise the DPU again in future. This is also a dividend yield that I could accept. They have been growing their DPU in the past. Their payout ratio has been around 70% range for the past few years. I believe they will not have any issue maintaining the DPU unlike some *cough* telco *cough* companies. This is a small purchase for me. If the share price further dips, I will be able to slowly accumulate. With DBS Multiplier and Cash Upfront account, I am basically buying shares commission free. The interest that I earned from this account already more than cover the fees.

This is not a recommendation to buy SATS. The price is currently on a downtrend. Please DYODD before buying or selling any company shares mentioned in my blog posts.

I Like SATS - Part 2

Part 1: here

Food Solutions

Here are some positive news I read from their 2016-17 Annual Report:

Food Catering business continues to grow both locally and overseas


Gateway Services



Gateway Services also growing with new contracts won

Financial Highlights



EPS and ROE increasing over the years

DPS also increasing

Majority Revenue from Singapore and Japan

The numbers are increasing over previous years. Looks good to me.

To be continued ...


Wednesday, 18 October 2017

I Like SATS

I am referring to the company SATS. Not the day of the week but I like it too. Some traders may not like weekends though. I am both an investor and trader as I trade Options which I mentioned in an earlier Post.

SATS

If you like travelling, you would have known or use their services before. It was founded in Singapore way back in 1972 and the company has since expanded it's business to other countries.

Screenshot from SGX website

Ahhh. So many countries and cities that I can't capture in 1 screenshot.
Screenshot from SAT's Annual Report

SATS also does institutional food catering business besides in-flight catering.



SATS has also expanded the non-aviation catering business to overseas.


Fun Fact: 

Do you know they also supply combat ration packs to the military?


Price has since fallen from their 52-week high of $5.39. So did I buy their company shares? Or would I buy? ... Stay tuned

Different Methods To Improve Trading and Investing Skills: Courses and Subscription Services

Courses

Besides online and offline trading/investing courses, there are also subscription services available that that the "hardwork" out of trading/investing. I do not like courses that doesn't include any kind of after support. I prefer mentorship programs with ongoing support. If the course cost thousands of dollars, it better has some kind of support after that. A few days course or some online training videos would not be some holy grail that turn you into a trading or investing guru. There are a lot of free workshops that we could attend where the trainers would "sell" their courses. I did attend 1 such seminar where the trainer said with his method it would take 15 min to evaluate a financial report. Imagine if I am to go through 5 years of annual reports for 1 company, it would take me more than an hour! Even after going through all that hardwork, I might have done some miscalculation somewhere along the way. With that said, such free seminars could be useful to pick up some education.

Subscription Services

There are some courses that would upsell you a subscription service after the course has ended. Even after attending a course that teaches fundamental analysis, some of us may find the entire process tedious. Like I mentioned earlier, it is also possible to make calculation mistakes on our own. Most people would not enjoy reading financial reports after a day's work. Such paid subscription services could be 1 or 2 year and the service would provide you a watchlist of companies that fit their investing criteria. They would also inform you when it is the right time to buy a certain company. My personal thoughts is they are actually quite worth it if you have a lump sum of money ready to invest. Of course, do not dump all money into a single company. Spread the money into a number of companies suggested during the subscription period.

In case you are still skeptical, let me share the result of one company which I would never have bought if I didn't subscribe to such service. The company was under their watchlist. I made my own decision to buy after I read up on the company's annual report and financial statements. I am still holding and if I sell this company shares now, it already cover back my fees. Of course, such services are not 100% right all the time. If you follow them when they bought, there could still be some companies that lose money. But having a diversified portfolio would increase the chance of profitability in the long run. Such services are also useful if you just want the hassle free approach to investing. I still like to do my own study though.

Screenshot from Stocks.Cafe

Regardless of courses or subscription services, it is crucial to take action after signing up. If not, it would simply be a waste of time and money.

To be continued...

Saturday, 14 October 2017

My Journey Into The World Of Options Trading

Background

I have always like the idea of having multiple streams of income. Hence I do not rely simply on stocks investing as secondary source of income. I also invest in Unit Trusts aka Mutual Funds for exposure to Market outside Singapore. Other than that, I also invest in short term bonds. I am getting monthly dividends from my bond portfolio. I also have Singapore Savings Bond which I view as temporary place for me to park my money as warchest and earn higher interest at the same time. I recently also started buying cryptocurrencies which I blogged about earlier on.

Mercy of Mr Market

What I don't like about the Stock Market is the gain could be too unpredictable. Even if we invest in the right companies, Market could suddenly turn bearish and our gains could be wipe out much faster than the time it took to accumulate. Of course, this could be seen as opportunity to buy even more provided we still have capital to go in and the mental capacity to see the Market dip even further after we buy. Ouch! Some companies even though they may issue dividends, it is insufficient to cover capital loss. e.g *cough* M *cough* 1. This led me to search for other ways to generate income that is non-correlated to the Stock Market.

Forex

I have paid for Forex courses before but 1 thing I discover is you really need to enjoy looking and analysing charts which is the Technical Analysis aspect. I do not enjoy switching between currency pair and timeframes, sit and wait for trade setup to appear. It depends on individuals and some people could enjoy doing that. I think.

Options

First of all, I am referring to the real deal here and not binary options. That 1 is sketchy. Win or loss could be a matter of 60 seconds. Don't try that at home or anywhere. Brokers could still deny you your money even when you win.

What I like about Options Trading is you could go either long or short. This means you could make money even when the market is in a downturn if you trade US stocks. Of course you don't have to trade US stock options. I trade futures options which brings up another benefit which is the non-correlation to Stock Market. Options trading may sound daunting at first. I watched a lot of YouTube videos on Options Trading and guess what, I got even more confuse.

Here's a look at my demo account and my results after I signed up and went for a proper course. The account was started in July.


As can be seen from the screencap, there are different months of contracts. This means I could generate consistent monthly income from Options Trading. Some of the contracts haven't expire. I am experimenting with Stocks Options which I find harder to master than Futures Options. Those that I highlighted are Futures Options Contracts. 

So that's it! Options Trading is also 1 of my income source. I may blog more about it in future. 

Friday, 13 October 2017

I Venture Into The World Of Cryptocurrency

Last weekend, I finally opened 2 trading accounts to buy cryptocurrencies. I may be a bit late to the game but it's always better to be late than never. I believe in the growth potential of virtual currency. Imagine paying for goods or services online without being subjected to exchange rate losses. As long as demand is higher than supply, we can expect the price of the currency to rise. Do you know there is a limit to production of cryptocurrency like Bitcoin? For Bitcoin, the total supply is set at 21 million. Current circulation is already over 16 million. 



I believe as more people understand about benefits of virtual currency, they will jump onboard. People are also now trading different virtual currencies similar to Forex. I am treating cryptocurrencies more like an investment in which I will hold and buy more if the price drops. To learn more about bitcoin, visit this site: https://www.weusecoins.com/.

I have 2 exchange accounts. 1 of them is with coinbase. If you are interested in opening an account, please use my referrer link https://www.coinbase.com/join/59d9baf7b47db500ce08c9a5 so we could both earn some free bitcoins.




The commission fees is 4% which may sound expensive at first. But the 10% free coins would offset the fees. However, take note it is only for the first S$135 spent within 180 days of opening account. I bought my cryptocurrencies using credit card. It also supports bank transfer through Xfers. I am in the midst of opening an Xfers acc.

My free bitcoins! Hurrray!

There are 3 cryptocurrencies that could be purchased through the site: Bitcoin, Ethereum and Litecoin. For Singaporeans, we are buying using SGD so there is no exchange rate loss.


Video Title: Why Litecoin WILL GO TO THE MOON! Best Investment in 2017! 


Litecoin Price Chart

There is another exchange which I have an account. The exchange is coinhako. The fees is only 0.9%. However, it does not support credit card payment. There are only 2 currencies traded, Bitcoin and Ethereum. Please use my refer link here if you are interested in opening an account. Currently, there is a promo code to get 0.7% fees instead of 0.9%. If you believe in the future of cryptocurrencies like me, start taking action today!



John McAfee "Bitcoin is Not a Bubble" August 2017 Update


John McAfee is the founder of the antivirus software company. It's time to sit up and pay attention when someone reputatable bet eating his own manhood on national tv.





Video Title: 

Bitcoin to Hit from $10,000, to $100,000 & even $1 Million USD

Bitcoin Bubble? Chance to buy more if the bubble bursts! But Price just hits all-time high!

Tuesday, 10 October 2017

My Rights Application Result for CACHE

Just a quick recap, CACHE issued a 18 for 100 rights issue recently at $0.632 per share. I was entitled to 2880 shares and I applied for 7120 excess shares. The result is out today!


In total, I received 4700 shares. I managed to get 1820 excess shares. This brings down my average share price from $1.124 down to $1.012. I am still sitting at a loss but my losses have been reduced. Hopefully, the Management would buck up and this counter can turn green for me next year.


CACHE is now my second largest holding after Frasers Commercial Trust.

On a sidenote, I will be losing Croesus Retail Trust as my dividend counter this month. The quest for dividend continues...

Screenshot from Stocks.Cafe