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Securities

A security is a negotiable financial instrument that holds some type of monetary value.

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Indeed, desktop with two monitors here, using two Samsung 27" non-curved. A good price reference is http://www.fuwell.com.sg/ (download the price list). Strange enough that they only have the curved ones now at the bottom end for Samsung. And get loads of RAM (2x 16GB), Samsung 1TB SSD, and if you need more space to store historical data for crunching algo models, another non-SSD harddisk (hunt for HGST ones if you can, though seems like they are getting rarer).

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Billy Ko
Billy Ko
Level 6. Master
Answered on 25 Mar 2019
Interesting point you raised here! In my perspective, I think one should understand the underlying business of REITS which is that of generating recurring income. Possessing freehold properties has definitely more pros than cons in a land-scarce city. However, the impact from owning freehold properties (which I can foresee) than leasehold properties in a portfolio would be that of the valuation since freehold properties are generally worth more than leasehold properties. Property in REITS = Assets, hence it only affects the balance sheet (NAV) and not the income statement (income / expense), Ultimately, a performance of a REIT still boils down to rental income & occupancy of it's assets.

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ETF

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PhillipCapital (POEMS)

Besides what Hariz has mentioned regarding the Infinity US 500 UT, you can also directly buy the vanguard S&P 500 ETF on the NASDAQ exchange on POEMS, although you will have to pay brokerage fees for that as it is an ETF and not a UT. Please don't buy the one traded on SGX as the volume is really bad and you will have a liquidity problem.

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Hello! This was a rather interesting question so I went to do some research: ! TL;DR Alibaba has filed confidentially for a Hong Kong listing that could raise as much as $20 billion, and could take place as early as 2019Q3. With its Hong Kong mega-listing, its US share price will most likely rally higher due to overall positive outlook on the growth profile of Alibaba, given its proven track record of positive year-on-year growth. However, if the US-China trade war continues to weigh down on the global economy, this will have a sizeable impact on Alibaba’s US & HK share price. This mega-listing is certainly one to watch. Alibaba Group Business Overview Alibaba Group Holding Limited (NYSE:BABA) is a Chinese holding company that specializes in 4 segments: core commerce, cloud computing, digital media and entertainment, and innovation initiatives. Founded in 1999 by Jack Ma, they are based in Hangzhou, China, and have a global presence. Some of their companies include: ! Its competitors include Amazon, Meituan-Dianping and Tencent Holdings Ltd. About the IPO The Group has filed confidentially for a Hong Kong listing that could raise as much as $20 billion, and could take place as early as Q32019. This would provide them with funds to invest in technology (especially so with the US-Huawei Saga) and compete better against their competitors in the various business segments. This also comes on the back of the US-China trade war and slowing economic growth in China where Alibaba is struggling to sustain growth. Previously, companies with a governance system where top executives could nominate a majority of board members could not list on the Hong Kong Stock Exchange. This included Alibaba and thus they floated on the New York Stock Exchange. However, with the new rules for secondary listings introduced last year, they can apply for an exemption to be listed. How will its Hong Kong listing affect its US share price? Firstly, with the Group’s proposed one-to-eight stock split of their ordinary shares, there will be an immediate decrease in its US share price after the stock split. For example, its share price will drop from $168.25 to $21.03 (as of 20/06/2019). This stock split will increase flexibility in future capital raising activities and increase the number of shares available for issuance, at a lower per share price. Since small investors find the stock more affordable and purchase it, this boosts demand and drives up share prices. Secondly, the announced major business reshuffle to strengthen leadership of the innovation group and bolster its investment focus may boost investor confidence. Chief Financial Officer Maggie Wu will serve concurrently as Head of Strategic Investment Development There are also other new initiatives and reorganisation of business segments. With its Hong Kong mega-listing, its US share price will most likely rally higher due to overall positive outlook on the growth profile of Alibaba, given its proven track record of positive year-on-year growth. However, if the US-China trade war continues to weigh down on the global economy, this will have a sizeable impact on Alibaba’s US & HK share price. Looking back on 2019 alone, Alibaba gained more than 21%, rallying ahead of the broad market. Should you invest in the IPO? With the above points in consideration, Alibaba indeed has strong economic moats and the US-China trade war is only a bump in the road. Even with China’s slowdown, they continue to grow market share and broaden revenue mix and investment profile. However, in the wake of the Hong Kong extradition bill protests, there might be potential repercussions on Alibaba’s HK listing. All in all, this mega-listing is certainly one to watch.
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Dexter Tiah
Dexter Tiah, Founder at Whatcard.sg
Level 3. Wonderkid
Answered on 21 Jun 2019
Increase your discount rate in a DCF, or apply a haircut to a peer comp analysis

Securities

ETF

Forex (FX)

Investments

Hello! ! TL;DR Taking up a position in a foreign ETF that is not in your base currency will subject you to foreign exchange risk. Exchange rate fluctuations have the potential to erode your returns from the ETF. Therefore, it is best to manage your foreign exchange risk exposure that aligns with your long-term investment goals. What are Exchange Traded Funds (ETFs)? ! I’m sure many of us know what ETFs are so I’m not going to go into the details. In the broad spectrum of investing, ETFs is considered a “passive” approach to investing in an equity portfolio for long-term investment. However, it is not exactly passive as you would still have to monitor the index the ETF is tracking from time to time to see if it is performing. Why is there Exchange Rate Fluctuation? In the short-run, currency volatility is due to news like economic data release or political events which are unpredictable. In the long-run, forces of demand and supply of the currencies determine their price in the foreign exchange market. This depends on investors’ confidence in the assets of that country and forex traders’ confidence in the country’s currency. The central bank’s monetary policy will also have an effect on the national currency. For Singapore, we adopt an exchange-rate-centered monetary policy due to the small and open nature of our economy & our dependence on trade. What is Currency Risk/Foreign Exchange Risk? ! Source: MBA Mondays If you have been reading various ETF prospectuses, you would have came across these words: ‘currency risk’ and ‘foreign exchange risk’. With all foreign investments, there is bound to be currency risk. Currency risk is the impact of exchange rate movements on your foreign investments. For the scenarios below, I am going to assume that your base currency is SGD. If you would like to buy the SPDR S&P 500 ETF (NYSE Arca:SPY), you will be subjected to currency risk as the ETF is invested in instruments denominated in USD. If the USD appreciates against the SGD (or SGD depreciates against the USD), you will gain. On the contrary, if the USD depreciates against the SGD (or SGD appreciates against the USD), you will lose money. You may think that these exchange rate fluctuations do not affect your foreign investments significantly, but think again! If the US ETF fell 5% while the USD depreciated by 5% against the SGD, then you would see a total loss of 10%. Your Returns in SGD (Home Currency) = Change in Price of Security in USD (Foreign Currency) + Exchange Rate Change from USD to SGD (Foreign Currency to Home Currency) However, if you are buying the SPDR Straits Times Index ETF (SGX:ES3), you will not be subjected to currency risk as the ETF is invested in instruments denominated in SGD. Foreign exchange rates can be very volatile, change quickly and unpredictably, so please take this into account when making an investment! Difference in Currency Risk Exposure Your vulnerability to exchange rate volatility depends on the time horizon you hold the ETFs. With a shorter time horizon, you are at a higher currency risk as you are unable to ride the rough patches out. With a longer time horizon, there is lower currency risk and you may even benefit from it. Managing Currency Risk Exposure If you are worried about your currency risk exposure, fret not! Here are various methods to manage it: - Longer Investment Time Horizon: By staying invested for the long-term, you are able to ride out short-term market fluctuations and gain value. - Avoid Foreign ETFs: By investing in ETFs with your own base currency, you avoid foreign exchange exposure all together. However, the downside is that you will be less diversified. - Buying Currency-Hedged ETFs: Currency-hedged ETFs use financial contracts to offset the impacts of exchange rates on returns. This cancels out any losses from a depreciating foreign currency and wins from an appreciating foreign currency, so you get the same returns as a local investor. I guess we can’t always have the best of both worlds! - Diversify Your Portfolio Hope this helps!
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Ys
Ys
Level 2. Rookie
Answered on 20 Jun 2019
I tried it before. It uses AI to pull data together and visualise the results automatically based on the preset rules in the algorithm. Have a read on their blog, it seems that even the reviews are automated (i.e. very mechanical looking and doesn't tell me much). Nevertheless, the visuals are good looking and helps users to identify what's going on with the company, and also offer a good comparison to it's peers in their industry group. Do note that after the trial period, you will need to pay for subscription, or else will be limited to a few stocks to view each month. :)

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The reason for the stock price is due to a 2-for-1 stock split by the company - https://www.cnbc.com/id/48134915 It is considerably a defensive stock given how it falls under consumer staples. That being said, it's Gross Profit has been decreasing over the years. Fortunately, cost control has been good with the company lowering it's expenses more than the decrease in profit, hence net income is still considerably stable. ! Coke's margins are to the left whereas industry average is to the right. Coke can be seen performing significantly better than its peers in the industry. The latest Q4 results seems rather gloomy with revenue falling 4%. leading to the stock falling by $4+ (~8%) https://www.cnbc.com/2019/02/14/coca-cola-earnings-q4-2018.html But if you see the advertising and publicity of coke - through ads + campaigns + Warren Buffett during his AGM (and how he owns this stock also).
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Isaac Chan
Isaac Chan, Business at NUS
Top Contributor

Top Contributor (Jun)

Level 8. Wizard
Updated on 09 May 2019
! Hi everyone! I will just give some stats here that might be relevant for the members. Business Profile ! Source: Singapore Business Review Most of us are similar with this supermarket chain that is usually nestled in the heartlands. As of now, they have more than 50 outlets, as compared to the 24 outlets that they had when they first listed on the SGX in 2011. Sheng Siong is most likely well known for it's more "wet market" setting as compared to other grocery chains like NTUC Fairprice, and appeals more to the older generation in Singapore. It recently ventured into China too. ! Source: Singapore Business Review ! Based on FY18's results Income Statement ! Source: Sheng Siong Group Annual Report 2018 Both Sheng Siong's top line and bottom line have grown over the past few years. With a CAGR of 6.2% from 2011 to 2017 for its revenue. In 2018, a portion of revenue growth could also be attributed to the growth in the Chinese market as well. Profitability have also improved, with the different profitability margins, such as gross profit and net profit, improving significantly. The opening of new stores have hampered such growth a little due to the increase in admin and staff costs. Balance Sheet Strength Compared to other firms, I do believe that their liquidity term liquidity is not as strong. However, the nature of their business do requires them to hold more inventory, so Sheng Siong isn't an exception. The company seems to have paid off all their debt as well. Cashflows The company seems to be quite a cash generating machine, as others have mentioned. This is evidenced by their high free cashflow, as well as free cashflow to equity. Despite having high capital expenditures, the firm is more than able to account for such cash outflows. Working Capital Management Sheng Siong's working capital management seems quite strong, with a negative cash conversion cycle. This is supported by Sheng Siong's trade payable days of more than 60, while having much shorter receivable days of 5-6 and a inventory cycle of 30 over days. This means that Sheng Siong has more cash to operate with based on their working capital management because they can delay payment to their suppliers. The short receivable days should not come as too much of a surprise though, since their B2C grocery store model requires payment from customers upon selling of the items. Valuation DBS forward P/E ratio for 2019 was 25X, slightly lesser than their projected regional average of 26X. If you were to compare Sheng Siong to their regional peers like that, it seems that Sheng Siong is valued at the right price. However, this slightly higher valuation may not be warranted because their growth rates may not be able to be sustained over time, since the Singapore market for groceries is already becoming increasingly saturated. I am particularly worried about the high P/B ratio that they have. Given that the business might have trouble growing earnings over time, I think that such valuation isn't quite justified. Risks ! Source: Intelligence Nodes I think that Sheng Siong faces similar risks to the disruption that faces other retail businesses in Singapore. Firstly, there has been large speculation on how e-commerce will disrupt traditional grocery purchases in Singapore, especially with players like Red Mart. One silver lining for Sheng Siong is that they have traditionally served the older generation, who may be less tech savvy. Another bigger risk that they face is the saturation of the Singapore grocery space. Since Singapore has an aging population and slow population growth, increasing the market size of this industry would be quite tough. For players like Sheng Siong to grow and compete, they probably need to adapt to newer trends and innovate, or expand into other international markets as they already did. But with such moves comes great risk as well. Sheng Siong may also have to change its strategy of continually opening new stores, and focus on increasing same store sales. (SSTS) Share Price Performance ! Source: Yahoo Finance Relative to the STI, Sheng Siong's stocks had performed better. This is probably due to the positive earnings resulst that were released throughout the year, and the strong fundamentals that I believe Sheng Siong possesses. In contrast, so far in 2019, the STI had actually outperformed Sheng Siong. For the past 5 years, Sheng Siong has actually made a share price return of almost 70%! This is reflective of the strong growth that the firm has achieved over the years. Currently, the firm is trading at 89% of their Last Twelve Month's high.
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Use a brokerage platform with access to US and SGX markets. Most digital brokerage platforms will have a trade alert or price alert system. I am using POEMS for SGX and they have an alert system, will send sms, email to me once my alert price is reached.
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