Technical Analysis

A trading discipline employed to evaluate investments and identify trading opportunities by analyzing statistical trends

ASK A QUESTION
  • Recent Activity
  • Unanswered
  • Trending

Investments

General

Technical Analysis

Junus Eu
Junus Eu,
Top Contributor

Top Contributor (May)

Level 8. Wizard
Answered 6d ago
I do believe Bloomberg terminals offer that function as well as other historical data and multiples over the time period you stipulate!

Investments

Fundamentals

Technical Analysis

Stocks

Both have their own importance. If you are planning to trade for a short term, technical analysis is a more preferred technique. For long term stock trading, fundamental analysis is a way to go. However, technical analysis can also be a beneficial tool to analyze long-term investments when combined with fundamental analysis. As a trader, it is best to learn both these fundamental and technical analysis skills. More info - https://www.investopedia.com/ask/answers/050515/it-better-use-fundamental-analysis-technical-analysis-or-quantitative-analysis-evaluate-longterm.asp

Investments

Technical Analysis

Sandra Teo
Sandra Teo,
Level 6. Master
Answered on 19 Apr 2019
Hello! It depends on what you're trying to achieve. If you are taking a short term perspective or trying to do intraday trading, Technical Analysis will serve the purpose. On the other hand, if you are investing for long term, you need to consider the fundamentals of the stock in question. For that, Fundamental Analysis serves the purpose. You can still use Technical Analysis here for decuding entry/exit points. In short, For Trading: Technical Analysis For Investing: Fundamental Analysis

Technical Analysis

Value Investing

Investments

Wilson Nid A Break
Wilson Nid A Break,
Level 4. Prodigy
Answered on 07 Apr 2019
Personally, I feel that there's no true "technical investing", only technical trading. The only aim is to profit in the shortest frame as possible via price swings/fluctuations without consideration to the company's long-term fundamentals, dividend payouts, quality of management etc. You utilize the technical tools thats available to you & ascertain a target (buy/sell) price to enter & a subsequent target (sell/buy) price to exit the position within a set timeframe, could be days/weeks but rarely into months/years. One is making a trade order on the entire basis on how stock price behave in that single time frame. But whether technical investing is truly riskier on the practical application really depends on the individual trader, ability to stay discipline such as cutting loss when things go awry, amount of leverage used, eyes staying glued to the screen all times to be able to made a quick decision etc. However, as a individual who is "buy & hold" long-term fundamental investor, I do find technical analysis (albeit in much simpler forms) do have its merits when I made a decision to buy-in aftering doing my fundamental analysis. I would looked at things such as bid/ask volumes, recent price trends, price support levels to determine the appropriate price range to enter. Although quite a handful of fundamental investors out there advocate that if you are buying for the long-term, then the entry price does not matter, I tend to mildy disagree. If by allocating some time & effort to do some basic technical analysis, couipled with a dose of patience, there's a good probability one can get a stock at a better starting dividend yield & able to buy more stocks using the same amount of money. That's akin to receiving a small bonus ,free-of-charge into one's pocket.

Technical Analysis

Investments

Not exactly. Fundamental investing is also good especially if you are planning to invest for a long term.

Technical Analysis

Investments

SeedlyTV EP01

Yeo Enk Loui
Yeo Enk Loui,
Level 6. Master
Answered on 29 Mar 2019
Just to add on to what Billy and Terence have mentioned, fundamental analysis is more important but technical analysis can help you by optimising entry/exit. I've answered a similar question here so you can take a look if you are keen! https://seedly.sg/questions/how-do-we-time-the-best-entry-to-buy-stocks-for-example-at-which-point-they-are-the-lowest-so-that-we-can-maximise-our-gains

Stocks Discussion

Technical Analysis

Fundamentals

Valuation

Boeing

Investments

Sandra Teo
Sandra Teo,
Level 6. Master
Answered on 22 Mar 2019
Due to the recent Boeing 737 crash on March 10th, Boeing's share price dropped 15%. However some investors are still buying for the various reasons 1. Bottom line risen 53% Y-O-Y 2. Strong free cash flow ($13 billion at end of 2018) 3. Decreasing P/E ratio 4. Rising EPS Boeing's lean operating structure and strong free cash flows gives it financial flexbility for growth organically and inorganically. Although the P/E ratio is 18.10 which is relatively on the higher side, compared to the previous year Boeing was trading at an 30.63 P/E ratio. The decreasing P/E ratio and increasing EPS paints a positive outlook with increasing profits for Boeing.

Bonds

Equities

Stocks

Technical Analysis

Value Investing

Valuation

Investments

Sandra Teo
Sandra Teo,
Level 6. Master
Answered on 22 Mar 2019
One of the common methods used is the weighted average cost of capital (WACC). WACC is simple terms is the average cost of financing / raising money required by the firm. To determine WACC, you will need to determine the capital structure of the firm and the proportion of each financing source. ! E = Market value of company's equity D = Market value of company's debt V = Total market value of company Re = Cost of Equity Rd = Cost of Debt Tc = Tax rate
Answer image preview

Securities

Technical Analysis

Equities

Stocks Discussion

Stocks

Investments

Isaac Chan
Isaac Chan, Business at NUS
Top Contributor

Top Contributor (May)

Level 8. Wizard
Answered on 22 Mar 2019
I will just introduce some key pointers here that might spark some discussion! IPO : HDL's IPO had atttracted a lot of attention over its IPO with a lot of media coverage and speculation over its listing on the Hong Kong Exchange. This attention has probably been bolstered by its already strong presence in the F&B industry in Asia, as well as its financials. The high quality experience that most diners get also lends to it's attention. Majority of the IPO capital raised will be used for growth expansion. Profitability : I have not done deep research into the F&B restaurant industry so I don't feel confident on how HDL's profitability matches up with its competitors. In any case, I have compared the two companies profitability metrics here. At first glance, HDL seems to be doing well for a company that is expanding very quickly, which typically has high overhead costs from expansionary activities. ! Valuation : Another reason why HDL got so much attention was that the P/E ratio was 76 when they IPOed, currently the P/E Ratio is 91! To many others, this seems to make HDL overvalued. When compared to industry averages as well, this seems highly overvalued. Based on forward earnings, Simply Wall St has also concluded that shares seems overvalued based on industry comparables. Growth Potential: HDL's astonishing growth rates is what seems to give investors the justification of HDL owning such a high P/E ratio. By the end of FY19, it expects outlets to be present in into new markets in Macau, Canada, Australia, UK, Malaysia and Vietnam. It is also partnering with Alibaba to utilised AI to improve customer experience and to look for appropriate restaurant sites. Business Model: Hai Di Lao has focused it's business model on delivering high quality ingredients, strong customer service and interesting and unique experiences. They also have lots of complimentary services which helps them to stand out. It is this care and attention to the entire customer journey that I believe has made it so successful.
Answer image preview

Fundamentals

Technical Analysis

Valuation

Stocks

Investments

Richard Woon Tian Jun
Richard Woon Tian Jun,
Level 6. Master
Answered on 21 Mar 2019
Free Cash Flow to Firm, of FCFF is actually the amount of money that is available for distribution to the firm's current investors after accounting for expenditures in capital, taxes, working capital, investments and depreciation expenses are all accounted for. The higher the FCFF, the more money a firm has to give investors, so it's important in form valuation using the Discounted Cash Flow Model. Since the FCFF is what is available to investors, this means that this in layman terms is the value of the firm to investors! So, if we can calculate all FCF in the future, we are essentially calculating the possible value addition that the firm provides to investors. So by this understanding, value of the firm can be calculated by taking into account the Present Value of all Future FCF, discounted at the company's Weighted Average Cost of Capital (WACC)! I think investopedia really explains this idea quite clearly, the link is right here! https://www.investopedia.com/terms/f/freecashflowfirm.asp I also like to read and listen to materials provided by Professor Aswath Damodaran, who is an extremely acclaimed scholar that writes theories about corporate finance, and provides alot of his educational materials FOC, via youtube or powerpoint slides! just googling his surname will provide you alot of materials to help you along the valuation and corporate finance path. He certainly has helped me alot in my own journey and my struggle with Corp. Fin Projects!