My actions in this bear market

Here's what I have strategized during this horrible bear market.

1. Console myself that STI annual returns was about 8-9% throughout the past 28 years.

Here's the chart:

From year 1987 to Aug 2015 now, the returns was 265.62%, over 28 years annualize as 9.48%.

STI has fluctuated many many times but the general trend is upward. One should treat stock investments as a long term serious commitment, and have the patience to ride out the rocky waves from time to time. My investment horizon is 10 years at least, not 10 months or 10 days.

This brings out to my next point:

2. Be patient, hold my stocks.
I read somewhere about the psychology of most investors and why majority lose money in stocks. Credits to the rightful owner of this picture (which I do not have the source).

Are you selling your stocks now? are you selling it at a loss?
Why are you selling it at a loss when you should be selling it at a profit?
Is it because your stocks are junk? wait, if you stocks are junk, why have you bought them??

This brings about to the next point again.

3. Look at the fundamentals

Although one should treat investment as a long term horizon, it is also very important to look at the financial statements of the company periodically. I have great interest and excitement whenever I look at the company's financials!

Is the company doing reasonably well and having a decent growth rate? how is the industry doing? how is the management? what have they conveyed as their growth strategies?

If the company does not seem to be doing well either because the company is lacking in groove, lacking in management leadership or generally because the industry has slowed down and show no signs of improving, then yes, it is time to cut your losses.

Other than that, if the company has strong fundamentals, it is best to HOLD and not sell at FEAR. pls omg.

4. Dollar cost averaging
'Dollar cost averaging' is an investment term used to describe the purchase of unit trusts. However, the principle can be applied when buying stocks.

It generally means that one can buy stocks gradually, inching bit by bit when stock prices changes.
Meaning:
500 lots at STI ETF $3.02
500 lots at STI ETF $2.80 ( if it really goes this low)
and then buy again when it drops further till when it finally starts going up.

This will mitigate the loss as the stock price is averaged out. Eventually (perhaps years later) when the stocks go up again, that's where the profits can be seen.

That being said, I am going to buy STI. I do have other blue chip stocks in mind that I think are really undervalued but I will not be sharing it here.

Till then, I will also not be logging into POEMS to check my portfolio. x.x

My portfolio in this terrible market

Omg the stock market has fallen from a high of STI 3500 during its Peak to the current 3195 now.

No idea when is the bottom. However, my portfolio has remained relatively 'unscathed'.

To recap, this was how my portfolio looks like and I explained briefly here.

The majority of my stocks are Trust  & Reits and as they are more stable, they form a good backing for my overall portfolio. I am still gaining a net positive in these Reits and as a result, they mitigated the loss in my blue chip and growth stocks.

My reits stocks: AIMS AMP, Keppel DC
My trusts stocks: Capitamall (waiting for a better price to sell), FrasersCentre point trust
My blue chip stocks: Keppel, StarHub, Raffles Medical
My growth stocks: Q&M, Amtek Engineering, Hyflux, Alibaba

Sigh. If only entire portfolio is made up of Reits right? Yeah.. during a downturn, I think that way. But when it is bullish, things go the opposite way and I contemplate why I didn't buy more growth stocks. (lol)

Reits, bullish or bearish, they are relatively stable.

QnM Dental - Potential growth stock?

QnM Dental posted a very positive financial results ending 1st Qtr 2015.

1. Big jump in profit before tax 
The Group’s 1Q15 profit before tax rose by 173% to $4.5 million from $1.6 million in 1Q14.

173%!! The increase was mainly due to contributions from acquisitions of their China investments.

2. Current Holdings
They have 60 dental clinics, 1 mobile clinic, 3 medical outlets, and 1 aesthetic clinic in Singapore.
In Malaysia, 3 dental hospitals.
In China, 4 dental outlets.

My take is that dental healthcare is a consistent sustainable business to be in, as many companies in Singapore provides dental benefits to their employees. In addition, when one ages, it becomes a need to see the dentist more often.. Just look at my parents, at the age of 60+, they have spent thousands on dental care!

3. Ambitious expansion plans
Now this is the exciting part. QnM has requested for a trading halt earlier this week and yesterday, they have announced their proposition to acquire 8 dental clinics located island wide.

Their profit target amounts to approx. $16.10 million.

Key dentists to be in charge to sign long term service agreements.

Apart from this, they have plans to expand into private dental healthcare in the PRC, Malaysia and through other acquisitions.

Conclusion:

Although I do have a little concern on over aggressiveness of expansion plans, at this moment I think QnM is promising.

Vested at $0.81 today when market open. :D


 

My portfolio of stocks

This is how my portfolio of stocks is like, or what I try to have:

My investment strategy:
Long term -10yrs at least
Conservative risk appetite
Aim for passive income


1. Blue Chip Stocks
Blue chip stocks are stocks belonging to well-established and finally sound companies that have operated for many years. They are normally the market leaders in their respective industries. For e.g. Starhub/Singtel/SembCorp/Keppel/CapitaLand/UOB

Their earnings are consistent, sustainable and provide stable dividends. Once in awhile, I would just need to take a look at their financial statements to see their earnings and future growth. I wouldn't be too worried about their performance.

2. Trusts and Reits
Reits is a stock that invests in real estate directly and typically offer investors high dividend yields and highly liquid method of investing in real estate. For e.g., AIMS AMP CAPITAL INDUSTRAIL REIT comprises of a portfolio of industrial real estate properties in Singapore.  They have warehousing/logistics/Manufacturing/Business parks. What I like about trusts and reits are the relatively stable stock prices (one that does not fluctuate much) and a consistent dividend payout.

3. Undervalued stocks
I tend to keep some cash at my bank to spot on undervalued stocks and make an immediate 'Buy' when the stock market makes a slight correction. For e.g., there was a very brief period where Capitamall trust was selling at $1.9+ and I quickly made a purchase of it.

Of course, due to market efficiency, there are always reasons that justifies that value but having analyzed their financial reports, I believed that it was a worthy purchase and one that might be undervalued. True enough, it didn't take long before it sets back to $2.++ price, a price that holds it stable for the past year.

Such market corrections are not the norm, and it requires some analysis on each individual stock.

4. Potential high growth stock
I think spotting a good potential high growth stock is one of the most ardent task and requires one to look carefully at the fundamentals, analyze the industry, analyze the current value and then determine whether it is worthy to purchase. Not easy, but I guess the returns are one of the highest. That's where we have Warren Buffet..

So here it is, my portfolio. I think that it is relatively conservative as I just looking at a stable flow of passive income.

Do NOT day-trade:

 In addition, I am not an advocate of Day trading, nor do I encourage anyone to be. The main reason is because only a very small percentage of day traders (perhaps lesser than 10%) can consistently earn from it. Today, you might be able to earn thousands from it but tomorrow you can lose everything. It is really, a form of gambling. Technical analysis, to me, does not make much logical sense.