Friday, November 25, 2016

Scoop the Poop

Uncle CW8888 asked a very good question: Telcos are no longer defensive stocks with just one add on?

Looking at the charts, it looked like an impulsive downside move to me.

I nibbled a bit more of M1 (I already had some) and some Starhub but not Singtel (at least, not yet anyway).

I also got some hospitality trusts through OUE and Frasers. Why? Because they are sucking balls because tourism is going to do badly. I like bad and horrible stuff, that's just the way I roll.

I'm also looking at lots of other poop.

CH Offshore
Chuan Hup
Comfort Delgro
CSE Global
Falcon Energy
Fraser Cpt
HPH Trust
King Wan
Kingsman Creative
Low Keng Huat
Lum Chang
Pan United
Perennial Holdings
SIA Engineering
Sin Ghee Huat
Wee Hur
Wing Tai

Cache Log Trust
CapitaMall Trust
CapitaR China Trust
CDL HTrust
Far East HTrust
Mapletree Log Trust
Religare HTrust
Sabana Reit
Soilbuild Biz Reit
Starhill Global Reit

Anyway, these are just brief list of ugly looking charts that I've looked at lately. Plenty of them are bad and are going to stay bad, but I prefer buying things when they are cheap compared to expensive.

I did not believe in the rally that was happening in REITs in 2016 and since Aug/Sep, it looks like we've hit a high there and we're trending lower. I've seen that the markets in the US are already pricing in a 100% chance of a rate hike in December. If that follows through, I think the world would be looking at higher rates for everybody, which is negative for REITs.

I don't believe that now is the time to be buying in general, but when some stocks suddenly move down quite rapidly, it can pay off to examine them and take a gamble if the odds look good.


  1. Love the title! Haha. How are you intending to allocate your warchest when you have so much poop to choose from! I'm trying to prioritise which to buy but a lot of stuff looks attractive now

    1. Hi BB,

      It's hard to choose. I know some people's strategy is to only pick up "blue chip" names during sell offs, but I think that narrows your choices by a lot.

      I think for me it's going to be a split 50/50 between good names that have reached palatable valuations (safety) and general names which are at very attractive valuations (risk-reward).

      I still think the poop will get even poopier soon!


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