Wednesday, October 8, 2014

Many Tasty Choices, Resisting Temptation!

Since August, the Singapore stock exchange has been drifting lower. According to this report, global market breadth has completely collapsed, which is of course, a bad thing.


Anyway, amidst the see of red stock tickers that I see on my computer and phone everytime that I check, I am strongly resisting the temptation to pick up more of these stocks.

Perhaps because many of these tickers have high stock prices, that is what is holding me back. I have to say, if 1 lot was only 100 shares instead of 1000 shares, I would probably lap up quite a few of these stock tickers. However, with capital outlay requirements so high, I don't want to be caught in an illiquid position myself.

As of now, I continue to wait because I am still very pessimistic about the US stock market. Japan and Europe looks set to be declared in a triple dip recession soon. Ebola and violent conflicts around the world. And still, everything looks expensive. Is this the perfect storm that can finally correct asset prices even as central bankers press CLT+P until their fingers cramp?

For the young investor starting out, a stock market crash is probably the best thing that can happen for us. On top of reminding us that the stock market isn't a one way road higher, it also gives us opportunities to pick up unloved stocks to include in our portfolios cheaply.

These are the list of stocks that looked to me like they have had quite meaningful corrections. Are they due for a bounce? Maybe. Can they head down lower? Definitely so as well. However, rather than picking up companies that are just going upwards towards the sky, I have the horrible unnatural contrarian mindset of only wanting to buy things out of favour. By my own eyeballing, these stocks look out of favour now.

Hong Leong Finance
Keppel Corp
*Metro
*Nam Lee Metal
*New Toyo
OUE Limited
*Pan United
Sembcorp
SIA
SIA Engineering
Sing Inv & Fin
*Sing Holdings
*Stamford Land
Super Group
UOB Kay Hian
Wing Tai

The stocks marked with an asterisk* are stock tickers which have lower face value prices, means that it is possible to pick up a lot or 2 without much capital outlay. Even though many of them look very tasty, my personal eyes are looking at those that I can afford with the capital that I have. Perhaps come January 2015 I will be able to look at a larger range of stocks without such discrimination, but as of now, I probably would not buy the rest at all, unless they dropped even more, haha!

I wonder what everyone else thinks about the Singapore market, as well as the broad global markets as well? I don't really bother too much about the economy, because by now it is clearly evident that the economy and the stock markets can be in total disconnect for months and years and not accurately reflect one another. Anyone else spot some good tickers out there that are also looking tasty?

2 comments:

  1. any disconnect between trading price and value represents a possible consideration to enter and if also pays a dividend.

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    Replies
    1. "price is what you pay, value is what you get" a saying from somewhere.

      I'm hoping to be able to pick up a few good tickers for a price under their value. I am just slowly building up my targets, so I know where to aim and fire when the opportunity arises!

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