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Showing posts from January, 2018

Short Selling

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Found a very useful guide detailing the process of short selling and leverage. It is good to understand the processes and risks in a visual and easy to follow format, rather than reading through chunks of text

Short Selling
https://www.fidelity.com/learning-center/trading-investing/trading/about-short-selling

1) Short selling is an advanced trading approach, available to margin account holders only.
A speculator believe that the stock price will fall within a short period. To increase his potential returns, he arrange to sell his security (despite not holding any) at a higher price, and when the stock price eventually decreases, he is able to buy back at a lower price to cover his deficient position. The trade can be instructed at T and settlement date at T+2. 

In reality, naked short selling is too detrimental and risky and markets like Singapore, China and Hong Kong prohibits that. If you wish to short a stock, you must prove that you are able to cover that deficient position, and that…

Singtel - annual report 2017

Exposure
30% SG, threat of TPG
22% Australia, Australia regulatory review
48% regional, India price warLines of business
36% mobile comm, expect to be declining especially in voice and roaming
20% data and internet, increasing profits due to change in consumer lifestyle and appetite.
18% Info comm tech, increasing business in cloud computing and software as a service
12% equipment, established distribution network of handsets, apple iPhone and google Pixar phone
3% others Growth areas
Cyber training
Mobile payments (Singtel dash )(network externalities) (airtel india payment bank license) (phillipines globe)
Shows (Philippines, singapore,  (Hollywood, Netflix, movies)
Data appetite (forced obseletion of 3G 12GB, high speed 5G data)
Sports channel
Cyber security (Japan, Australia, phillipines, nus Singapore)
Digital marketing
Internet of things Strategy
Simon Israel, Chua sock koong Diversification out of stagnant mobile communications to a technology company. Key risks are pres…

Banks checklist

Savings / commercial Banks Leveraged organisations that primarily earn via providing financial services, and earn via loans bid offer spread. They may provide cash management services, trade finance, investment management which leads to complexity in analysing its performance. As loans (assets) increase, increase in upfront fees which is added to equity. This increase ability to make more loans (Central Bank required reserve ratio) What to look out for
1) strong deposit base (charateristics of population as savers )2) Increased demand of loans (Improved business prospects) ,  and the bank making Loans back by collateral. Ability of borrowers to repay loans. Purpose and feasibility of project when making loans. 3) Buy when i/r increase and you are sure that it will lead to improvement in interest margin. Be careful of potential increase in borrowing cost (savings a/c i/r) . 4) Low overheads and low cost operator. Leading to higher profit margin. No increase in misc cost / distribution …