It is getting to the end of the year and 2018 has been a volatile year for stocks when compared to the relative calm of 2017.
Volatility is good as it presents a chance for stocks to be undervalued.
The team from ITP has each came up with a stock that they will buy now. Afterall, we are now approaching Christmas and Christmas has traditionally been a time for shopping. What better way to shop than to buy an excellent company on the cheap?
If you think Singtel is only a telecommunication company, you are wrong! Singtel has a huge presence outside of Singapore and has over 70% of its earnings overseas. Singtel’s telecommunication business model has expanded to cyber security, digital marketing services, smart city solutions as well as cloud solutions. At current Singtel share price of about $3, the dividend yield is an attractive and sustainable 5.5%!
When it comes to Value Investing, the most renowned investor will be Warren Buffett. Accumulating a networth of more than 80 billion through investing, no one ever doubts Warren Buffett’s wisdom and skills in choosing powerful companies to invest. Since he’s such a great investor, why not invest in his company and let this wise old gentleman work for you? Literally!
Fraser Property Limited
Fraser Property Limited is a local dividend play for shareholders. At current share price of $1.68, the dividend yield for this company is currently at 5.12%. Fraser Property Limited has recently just completed the rejuvenation of Northpoint City. Although the number of shops increase by almost 100%, occupancy rate is still more than 80%. Spaces not occupied are not wasted or left bare. The places are filled with Christmas decorations, fun amenities like tables soccer and many more to improve shoppers experience.
In recent years, Northpoint City is not the only one went through the rejuvenation program. Causeway Point overall shopper experience has improved and Center Point too have improved its human traffic after the rejuvenation Program.
The most famous fruit in the world. An apple a day keeps the doctor away, unless it is the iPhone. Apple is a well known cash cow and has in recent years been a target of the Oracle of Omaha himself. At market close, the most famous fruit is trading at $165.48 which represents at PE Ratio of 13.94. Other than the ratio being more enticing and mouth-watering, Apple has been engaging in share buyback at an average price of $192.50, $214.07 and $222.07 across different time periods.
The Oracle of Omaha himself has been buying Apple shares across the past 2 years at different prices.
CK Hutchison Holdings
The main holding of the legendary Superman of Hong Kong and long time richest man in Asia, Li Ka Shing, until Jack Ma and Pony Ma came along, CK Hutchison Holdings is a conglomerate holding company that is involved in Energy, Ports and services, Telecommunications, Retail and Infrastructure. An asset rich company, this company owns many valuable assets diversified across many countries and 5 industries. This company is now trading at PE 8.7 and P/B of 0.68
CK Asset Holdings Pte Ltd, a company created from the spin-off from the restructuring of CK Hutchison Holdings, is a property developer behind SGX-listed Fortune REIT, is currently also trading at a P/B ratio of 0.65.
Nvidia Corporation is a well known graphic card chip manufacturer preferred by many gamers. Nvidia Corporation has been positively and negatively affected by the crytocurrency craze resulting in huge price movement within this 2 years.
For this company, instead of buying shares, our ITP Trainer decided to buy an option instead.
A few months ago, we posted an article on the best dividend stocks to buy and VICOM was one of them. A few months later, the share price of VICOM has decreased by a bit, however, to everyone at ITP, we feel that it just means that it makes buying their shares at a cheaper price and increasing their dividend yield. This is because, VICOM Limited has a strong monopoly over the vehicle inspection scene in our little red dot where vehicle inspection is mandatory. Management has already stated that 90% of net income would be distributed as dividends. Although VICOM has consistently paid out more dividends than their EPS, it is fine as VICOM has built up a sizeable cash pile in which management has also stated that they will be returning to investors as dividend. At 6.07%, this company that monopolised our little red dot is making our hearts flutter.
Toei Animation Co. Ltd
One of the four biggest film and animation production company from Japan. Toei Animation Co. Ltd is the company behind iconic anime such as Dragon Ball, One Piece, Detective Conan, Sailor Moon and so on. Toei Animation Co. Ltd has been expanding beyond the Japanese market into US and China. This has resulted in a huge increase in profitability for the past few years. As with the rest of the world, the Japanese market has been moving up and down with volatility as well. Currently, Toei Animation is trading at a PE of 16.95.
A relatively reasonable PE for a company that has been expanding it’s operations and income. This company has been catching the eye of ITP as well as our Japanese friends.
Investment in Singapore for Beginners
If you are looking for investment in Singapore for beginners, and are interested in learning how to make money safely and consistently from the stock market, check out Supercharge Investing Acceleration Program and it’s Skillfuture credit claimable.Chloe Lin, the founder of Invest Travel Play (ITP), was featured on Singapore national papers 联合早报 (Lian He Zao Ba) on 22 Aug 2018, which she actually shared a simple strategy to help readers to start investing safely with just $360!
SIAP is a 2-day workshop that teaches students how to perform fundamental analysis on stocks and ultimately, decided whether to invest in certain stocks. Moreover, SIAP will also be teaching options strategy, a derivative which combines investing and options to increase your return on investment. If you are interested, check out SIAP now. Use “ITPfriends” as a discount code to get it at $535!