Date: April 11, 2017
Once the sector list is narrowed to 3-4 industry groups, individual stock selection can begin. With a selection of 10-20 stock charts from each industry, a selection of 3-4 of the most promising stocks in each group can be made. How many stocks or industry groups make the final cut will depend on the strictness of the criteria set forth. Under this scenario, we would be left with 9-12 stocks from which to choose. These stocks could even be broken down further to find the 3-4 of the strongest of the strong.ARTICLES
Master Yourself Before You Master The Markets
Greed and fear are the two emotions that drive markets. Greed causes us to search for the latest hot stock. It nudges us into following the latest fad in investing or jumping into the bandwagon of a stock that has had a spectacular performance.
Crucial Investment & Stock Selection Pointer
Putting one’s money in the stock market is like walking through a financial mine field. To be successful, an investor must ponder over six key investment issues, namely Market Instrument, Market Segment, Market Timing, Stock Selection, Portfolio Evaluation and Investment Principles. These effectively answer the questions: why, where, when, what and how to invest.
Making The Right Investment Choice
The global investment industry is an over US$6trillion business far larger than the deposits business in developed markets like the United States.
Investor Education: The Key To Protecting Retail Investors
Lately, small investors are becoming a force to reckon with at AGMs and EGMs. They voice objections to management proposals, express dissatisfaction with a firm’s performance, or even table a motion to remove certain directors. The Securities Investors Association of Singapore (SIAS) has also become a popular intermediary between retail investors and corporate management in resolving disputes.
Back To The Future: Forecasting And Valuation
A month ago, in this column, we dealt with the four basic steps in company analysis. We explained and illustrated the first three steps, namely, business strategy analysis, review of accounting policies, and financial ratio analysis. We did touch on the importance of the fourth and final step: forecasting and valuation. However, space constraints did not allow us to go into the details then.
When Is It Ok To Buy Seemingly High PE Stocks
Based on the newspaper share data page, the price-earnings ratio for Singapore Airlines is indicated as 25.2 based on the June 12 closing share price of $13.10 CD (cum dividend). Anyone who buys SIA at that price is entitled to receive a dividend of 4 cents tax exempt and 8 cents less income tax. If you are fortunate enough to pay 20% tax on your top slice of income, the 8 cents gross dividend means 6.4 cents of net income per share. Together with the 4 cents tax exempt dividend, you will be getting 10.4 cents of net dividend per share. If you deduct 10.4 cents from $13.10, you are effectively paying only $12.996 for each SIA share. Strictly speaking, the PE multiple that you are paying on an ex-dividend basis is $12.996 divided by SIA’s net earnings per share of 51.9 cents which is 25.0 times.
Psychological Barriers To Successful Investing
The influence of greed and fear in investing was just discussed. Let’s look at some other psychological aspects. Before I do so, here’s a simple quiz.
Minority Shareholder Rights
Those who take interests in shares of companies generally have to accept majority rule. However, there are several rights at law that the minority possess to protect their interests and ensure that they are treated fairly. This article sets out some aspects of the rights of minority shareholders in Singapore companies.
