Asked on 29 May 2019
It is hard to tell when is the best time to buy.
If after you buy the stock price increase, you will be happy.
If it drops after you buy, you will be sad.
If you never buy and it goes up, you will regret.
If you never buy and it drops, you say heng ah.
This is the different emotional aspect of investing. You just need to commit and be confident with your choice. Re-evaluate the choice every one a while to ensure the company is doing good.
It is now $0.96, so i hope that you did enter during the $0.85 range.
Netlink currently has a 2% annual growth on the number of household and corporate cilent. It should see more orders as teleco players are lowering their capex and they will engage Netlink to build their infrastructure instead. It has a good yield when compared to other industrial s-reits.
With 5G coming to play soon, I believe the government would award the contract to Netlink given how it is the sole owner of the fibre broadband services within Singapore. Given their expertise and know-how of how things operate, they definitely have an advantage here over other companies
It hard to time the market and a counter when it is a good or bad time. Currently Netlink trust price has moved to 95 cents as of today. If you had invested in then, it will be good.
In my view, the company is a stable dividend stock who does internet fibre installation works. Quite a decent company to invest in with a moat. But don't think it will be worth a buy over $1 because its works depends on how many households it has to cable and with Singapore's limtied population growth, it means the number of household growth is limited.
Of course, if interest rates fall, Netlink trust share price may rise because this trust acts as though it is a REIT
You can never "time" when to buy a stock. Whether it's a good time to buy a stock depends on your own valuation of the business. For example, let's say you did you calculation and $0.825 is a good entry price. So buy into it, and watch it grow (assuming you know their forward earnings are in the pipeline). And if the price drops, the feeling you should feel is happy because you get to buy more.
Otherwise, you will simply be trying to time the market which honestly speaking, even I do sometimes but it is just not possible (because we SG ah.. we want the best discount!). So focus on valuations, enter when it's reasonable, and sit back and enjoy the ride.