Showing posts from December, 2017

Hyflux - Improving Fundamentals?

Improvements 1) Revision of electricity fees from January 2018, the government justify price increase due to increase in energy prices, may result in better profit margins / reduced losses from Tuaspring 2) Revision of water price upwards, the government justify price increase due to lack of revision of prices and need to readjust it to reflect market fundamentals. May result in better profit margin of Hyflux Operation and Maintenance business 3) Liquidation of fixed / non current assets to current assets to improve cash flow. Cash flow used partially to pay down preference shares / debt. 4) Eventual p artial divesting of Tuaspring to unlock cash flow and reduce its exposure to the energy market, which is not within its circle of competence 5) Hyflux group will refocus on its own core business (Municipal and O&M) Free scrip dividend (at no cost)of Hyfluxshop Shares as it is going to be listed eventually. Proposed Distribution being approved by Shareholders at the Ex

Buy and hold (December effect)

Value investing is a frustrating yet rewarding hobby. It is easy to understand but immensely difficult to implement. Persistance in working hard to filter out the most promising companies which might be undervalued at certain price levels. Patience to wait out the hype and resist joining the crowd and do nothing until price fall below target level. Courage to buy when prices are falling and believing in your thesis of the company. Confidence that your company will do well irregardless of market noise. The December effect touted by academics and fund managers is prevalent in us markets. Fund managers will window dress their portfolio by dumping under performing and buy the outperformers, to make themselves look like the winner when investors look at their portfolio constituents. Mere mortals cash in and sell their stocks to raise money for Christmas gift shopping and portfolio rebalancing. Regardless, there will theoretically be a mini crash of temporary under performing stocks and

Peter lynch one up on wall street

Peter lynch one up on wall street Lynch stock picking methodology 1) lynch contrarian, market cyclical, bottom up (individual performance of company not economy) fundamental analysis investing i) Buy based on fundamentals like earnings rather than stock price or broker recommendations in buy/ sell decision. Don't overestimate skill and wisdom of professionals. Strong preference for undiscovered and un-monitored stocks. Usage of earnings line whereby stock price will trend towards earnings line and the importance of projecting how earnings will go. ii) Buy companies that can successfully enter new markets, generate improving earnings, and leading to improvement in share price. iii) Strong preference for buying shares within your circle of competence (everyday goods and services, work related vendors, hobbies and passion). Good to try out the products and services and visit stores, or buy companies within your circle of competence. understand the busine