Rantings of an Urban Frog

My photography, my encounters and my whatever…

Archive for September, 2005

Singapore Companies with strong, sound fundamentals

Posted by diligo on September 27, 2005

This is my own representation and analysis, based on several marketing theories, SWOT, Porter’s Diamond, etc…Haha..too marketing jargons liao

1. Singapore Press Holdings

Strength:

The one & only publishing company. Some say they are government backed. In a way, it is true. Cos we all know that the papers in SG(Straits Times, Business Times, Liang He Zao Bao, Berita Harisan, etc). Competition absent/lacking

Weakness:

Little or no room for growth. Do not expect to see SPH to come with a innovative product to bring their stocks sky rocketing. As a result, I do not think SPH pays alot for R&D. Innovation in Product offerings, in like of Apple Computer, their ipod help boost their market standing..Stats not available @ Blog Time…I will blog about Apple’s Company for sure..since they are one of my favourite company now

Opportunities:

Markets in China is blooming..SPH could consider going there to expand their market and as well as enhance shareholders’ value…That’s our EPS and P/E ratio, etc. Our singapore market of 4 million is just too small for them to deliver growth for the shareholders value.

Threats:

Maybe the internet? Cos the internet offers more than any printed media can possibly offer.

Some facts about SPH:

SPH publishes 13 newspapers in the four official languages and more than 70 magazine titles. Everyday, 2.78 million people, or 90 per cent of people above 15 years old, read one of these publications. In addition, the company also holds a 40% stake in MediaCorp Press Pte Ltd which publishes free newspaper Today.
The SPH Internet Business Unit manages the online editions of SPH’s major newspapers and magazines, which together enjoy over 250 million pageviews a month and are used by major brands to reach out to a 4 million-strong predominantly professional, manager, executive and businessman (PMEB) audience.
SPH continues to maintain a presence in the free-to-air television business with a 20% share in MediaCorp TV Holdings Pte Ltd which operates channels 5, 8, U and TV Mobile.
Under a joint venture company UnionWorks with NTUC Media, SPH operates two entertainment radio channels, UFM 100.3 FM in Chinese and WKRZ 91.3 FM in English.

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CANSLIM- My 1st investment book purchased.

Posted by diligo on September 27, 2005

CANSLIM
What does it Mean?
A method for selecting stocks created by Investor’s Business Daily co-founder William O’Neil. Each letter in the acronym stands for a key factor to look for in a company.

Investopedia Says…
The seven-part criteria is as follows:

C – Current quarterly earnings per share has increased sharply from the same quarters’ earnings reported in the prior year. (Beware of items in financial statements that can cause earnings distortions.)

A – Annual earnings increases over the last 5 years.

N – New products, management, and other new events. In addition, the company’s stock has reached new highs.

S – Small supply and large demand for a stock creates excess demand, and an environment in which stock prices can soar. Companies acquiring their own stock reduces market supply and can indicate their expectation of future profitability. Look for low debt-equity ratios.

L – Choose leaders over laggard stocks within the same industry. Use the relative strength index as a guide.

I – Pick stocks who have institutional sponsorship by a few institutions with recent above average performance. Be cautious of stocks that are over owned by institutions.

M – Determining market direction by reviewing market averages daily.

Also referred to as C-A-N-S-L-I-M, or CAN SLIM.

My personal take from the above, it looks like the CAN SLIM method focuses on Fundamental analysis of a company. It does make good sense. I am itching to buy a couple of lots of SPH Stocks…anyone got any recommendation or any insights to share?

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Moving Average Convergence Divergence – MACD

Posted by diligo on September 26, 2005

Moving Average Convergence Divergence – MACD

This is a new term…I heard when I tried to figure out what the heck is technical analysis….*Pardon me* for sharing such elementary knowledge here…as per my dear friend, from growmoney.blogspot.com . To be able to survive and strive in the market, one must be prepared to do all necessary homework, research….So here, the starting point..I have been proscinating for long enough.

Moving Average Convergence Divergence – MACD

A trend-following momentum indicator that shows the relationship between two moving averages of prices. The MACD is calculated by subtracting the 26-day exponential moving average (EMA) from the 12-day EMA. A 9-day EMA of the MACD, called the “signal line”, is then plotted on top of the MACD, functioning as a trigger of buy and sell signals.

There are three common methods to interpret the MACD:

1. Crossovers – When the MACD falls below the signal line it is a bearish signal, and indicates that it may be time to sell. Conversely, when the MACD rises above the signal line, the indicator gives a bullish signal, and indicates that it may be time to buy.

2. Divergence – When the security price diverges from the MACD, it signals the end of the current trend.

3. Dramatic rise – When the MACD rises dramatically – that is, the shorter moving average pulls away from the longer-term moving average – it is a signal that the security is overbought and will soon return to normal levels.

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And so it begins…..

Posted by diligo on September 26, 2005

And so it begins…..I am starting this blog to blog about my investment lessons…

1st of….understanding how to understand the various terms of financial analysis…

This link seems to be good….

http://www.investopedia.com/categories/technicalanalysis.asp

Posted in Financial, Interesting Links, Stocks | 2 Comments »