Stocks Discussion - Seedly

Stocks Discussion

*Disclosure*: The threads on this post are just opinions on investments, so please do your own due diligence before investing

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Stocks Discussion

Yes same rules apply when purchasing a foreign ETF. Just need to find a distributor platform that provides it. Do take note of the withholding tax like your equity investments. If they pay more dividends, you pay more tax, this is especially concerning for distributing bond funds.

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Stocks Discussion

It really depends on the nature of the business 1) Is it a cyclical stock? What was the reason that drove up the price movement? 2) Is it at 52 week highs? How are the buying / selling volumes now? 3) How are the cash flows of the company? (positive cashflows?) 4) Is the dividend payout ratio increasing? 5) Is the Earnings per Share increasing? Behind a decision is a lot of investigative work, just keep asking why and the answer will come to light

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Savings

Tay WenHao
Tay WenHao,
Level 4. Prodigy
Answered 4d ago
Hi I feel that it depends on your goals/objectives for investing. If its for your next big purchase/milestone such as buying a new house or a car, then I would say aim for a 5 to 10% profit after DCA. From the POSB website under investments tab you can see the averaged cost for all your ETFs. However if its for a longer term goal such as retirement, you can consider to keep it longer because the ETFs usually pays out dividends which is like the 'interest' and its definitely higher than your bank interests. Thus no point selling and keep the cash in your banks that earns less unless you have a better opportunity cost.

Stocks Discussion

Investments

Are you looking towards a income portfolio or a growth portfolio? If you are creating a stable passive income portfolio, why not just hold and collect dividends if the fundamentals remain good? If you are creating a growth portfolio, and you have identified potential growth investments, then probably good to get into them while they are undervalued. Key point is what is the objective? income or growth?

Stocks Discussion

Investments

REITs

There are currently only 2 healthcare REIT in SGX, First REIT and ParkwayLife REIT. Parkwaylife REIT will surely come out tops. It has a portfolio of extremely good private hospitals in Singapore and overseas. Gleneagles and mount E, very expensive private hospitals but still always packed! They also have nursing homes in Japan and Korea. First REIT main weakness is the indonesian currency. Its portfolio is concentrated in Indonesia and to receive dividends in SGD is taking a toll on the REIT. The indonesian rupiah has declined against the SGD by a huge margin and the rental agreement made 10 over years ago is actually putting a strain on them. The next rental renewal is coming up soon in a few years and that is the main risk factor. Will they renew to the latest exchange rate? If they do, then the DPU will drop.

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Bank Account

Career

Gavin Tan
Gavin Tan,
Level 3. Wonderkid
Answered 2w ago
Hey there I'm 19 this year as well, gonna enlist next year as I'm in my final year of poly. When I was young all my savings were given to my parents, and I only started to save for myself when I was 17. Right now I have about roughly 5k in investments and cash. Would have more but mostly spent on my girlfriends and drinking haha. I think that for now, the amount to have is not the important part, but what you actually do with the money. Do you invest? Do you just save? A good advice I'd say is save till around 10k, and then start investing in the stock market!! Good luck man jyjy!

Stocks Discussion

Stocks

General

Lok Yang Teng
Lok Yang Teng,
Level 6. Master
Answered 2w ago
Everything started off with a controversial proposed extradiction bill. To explain we have to go all the way back to the 1990s. After British rule, Hong Kong was handed back to China under the 'one country, two systems' model. Hong Kong has since become the home to foreign companies that want easy access to China and other growth markets in Asia. The bill would allow extraditions from Hong Kong to greater China - including the mainland, Taiwan and Macau - for the first time, closing what Hong Kong government officials have repeatedly described as a “loophole” that they claim has allowed the city to become a haven for criminals from the mainland. There has been concerns over the fairness of the mainland's rule and many fear of being extradited over political reasons or business offences. Short term effects: - Businesses close, affecting profits - People choosing to stay indoors, affecting spending - Destruction to properties, costly to government and individuals Long term effect: - Investors may look for other alternative away from HK as it 'becomes more China' to other financial hubs such as Singapore

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Stocks Discussion

! I did a DCF valuation for this stock, which I admit was more for experimental purposes. I was wondering how I could structure the valuation such that I would require minimal inputs. Here is AEM Holdings historical results. As the different metrics show, AEM has experienced quite a few changes over the last few years. Given that AEM has had strong growth, I grant that AEM would continue to grow, but at a slower pace over the next few years. Hence, I allowed 5 years of high growth, before tapering off into the stable period. This is the first variable input. I calculated the Cost of Capital the same manner as other DCF which I have shared about. During the stable growth period, I assumed that COC would equal the Return on Capital (ROC), which is a fair assumption. Once I had the final year ROC, I computed the CAGR from last year's ROC, and reduced the ROC at a constant rate from 2018's figures. The second variable input I used is the growth rate in the stable period. I let this figure be 1%, lower than the inflation rate which demonstrates the low growth that would likely occur from such a mature company. I calculated the reinvestment rate from this figure, and similarly used the "CAGR" method to estimate the reinvestment rate for each year. With these 2 simple inputs, I computed the target price to be $1.025, less than 3 cents higher than the current trading price of $0.995. This represents an upside of only 3%. The targer price should be lower though, as I had not factored in the value of equity options since the annual report had not disclosed the exercise price. Thus, my target price should be even closer to the current trading price. My DCF, though very simplistic, seems to point towards the shares being fairly valued.
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REITs

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Investments

Tracy Lim
Tracy Lim,
Top Contributor

Top Contributor (May)

Level 5. Genius
Updated 2w ago
Just going to give my short opinion on this. I prefer Capitaland Mall Trust. For REITs, some things you can look at are: - The industry - Size - Portfolio of properties - Gearing - Lease expiry and occupancy - Distribution per unit (how much they yield and whether it increased over the years) Frasers Centrepoint Trust 6 properties. Malls ending with "point". Causeway point, Northpoint,..etc. Personally, I don't really visit these malls often. Northpoint just got revamped not long ago though. But I feel the locations of these malls are not very good. 3 out of 6 properties have less than 90% occupancy. Other 3 has above 90%. DPU: 12.015 cents. Based on current share price of 2.57 that gives 4.68% distribution yield. Market cap: 2.799B CapitaLand Mall Trust 15 properties, in good locations at MRT stations with high good connections. This means high traffic. ! 99.2% occupancy rate. DPU last year was 11.86 cents. Based on current share price of 2.59 that gives 4.58% distribution yield. Market cap: 9.516B (3x FCT) Overall I prefer Capitaland Mall Trust. Share price similar which means as an investor your same amount of money can be invested in either, for the same number of units. Good about FCT Higher dollar dividend (by 0.2 cents) Good about CMT CMT is a bigger cap REIT than FCT. Furthermore, growth of CMT is better than FCT. CMT has a greater portfolio of malls (and maybe because I prefer the malls in the portfolio of CMT haha). Higher occupancy rate than FCT.
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Stocks Discussion

Investments

REITs

Takingstock @
Takingstock @,
Level 4. Prodigy
Updated 2w ago
Lets take an approach for you to help yourself. Like the answer above, are you able to explain why you choose reits, those reits and no other stocks? Reason why I am asking to find out - are you a little more on the risk averse side? - is it because you prefer regular dividend payouts for cashflow? - are you open to choosing something else? - Do you have a particular goal or timeframe? I think you need to figure out some of these first before folks can advise. Without going into the details, on face value, I have no issues with the three listed reits, they are in my portfolio. BUT I stopped my monthly investments into them as I feel the reits are slightly overpriced now. Having said that, I did come up with an approach like a modified DCA on top of DCA. As you are looking at a very long term approach, it may not be a bad idea to start a small position then adjust as you go along because time in market is better than timing. Let me assume you work for less than 5 years, you can save a fixed amt each mth, and also assume you are adverse to picking the sti index fund or stocks, and also you prefer cash savings / investment to prepare for a hdb purchase or wedding. - if you have outstanding credit or tuition loans, clear that first. - if you cleared those, no major debt, and got 3 mths reserve already then Maybe you can try this (assuming you only open to the three reits n nothing else) Set up the poems to do only monthly contribution to one of the three reits (you do your homework, and choose the best among them, probably using dividend yield as tie-breaker). The monthly transaction fee / monthly contribution should be less than 2.5%, but up to you to choose the amount. You do quarterly check-ins and re-rate the three, probably using yield as one of the major deciding factors again. If the re-rating shows another of the three reits to be better, you update the monthly contribution to change to that reit. This would lead to preferential throwing the contribution at the best reit of the time, and after some time / years, the portfolio should be reasonably balanced at optimal cost.
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