3Cnergy in Focus

3Cnergy in Focus

3Cnergy in focus (502.SI) (14 July 2017) close: S$0.052 Mean Target price: S$- (No research houses covering; No consensus estimates are available) 1.) Sector: Investment holding. 2.) Core business structure: Property development. 3.) Segment that generates the highest revenue: Real estate and property development consultancy. 4.) Countries that the business operates: Singapore and Malaysia. 5.) Challenges: Lacklustre property demand in Johor; high supply of properties in the last 2 to 3 years; tightening of mortgage loan approvals. 6.) Strengths: Affordably priced and unique property products that cater to market segments…

Operating Defensiveness versus Capital Defensiveness in Stocks

Operating Defensiveness versus Capital Defensiveness in Stocks

Defensive stocks are known to be non-cyclical in nature, whose performance is relatively resilient to the economic cycle. Such stocks are often seen as attractive investments during a recession and people are generally quick in pointing out whether a stock is defensiveness or not. My view is that there are 2 aspects of defensiveness for a stock – operating and capital – which have to be considered. What is Operating Defensiveness? A stock is operating defensive if its product or service sales are unaffected by the larger economic cycle. I…

How Following Stock Ratings Blindly Can Cost You Dearly

How Following Stock Ratings Blindly Can Cost You Dearly

Have you ever read any stock analyst’s recommendation reports that ends with stock ratings like this? “This stock has a fair value of $13. With a last done price of $10, we see an upside potential of 30% for this stock. We reiterate a conviction BUY on this stock”. When I was still working as a technical analyst in a stock research firm, I often see my fellow fundamental analyst colleagues publishing stock reports that ended with such favourable stock ratings. Very often, investment calls like these are all that is…

Have You Been Buying High Dividend Stocks For The Wrong Reasons?

Have You Been Buying High Dividend Stocks For The Wrong Reasons?

High dividend stocks are commonly viewed as investments that provide regular income to the stock holder regardless whether the market is bullish or bearish. Many investment gurus also frequently recommend stocks with high dividend yields to their clients. To most investors, dividends are like “free money” given to them for just owning the stocks of a listed company. However, most investors fail to realize that dividend payout is NOT FREE MONEY. It is NOT a regular real income that goes to shareholders for just owning the stocks of a company….

Everything That An Investor Should Know About Stocks

Everything That An Investor Should Know About Stocks

Many investors in Singapore would have heard of The Straits Times Index (SGX: ^STI). Founded in 1966, the STI has since been used as a benchmark index tracking the performance of Singapore stock market. There are 30 constituents under the STI, and they belong to the following sectors (non-exhaustive): telecommunications, banks, real estate, food & beverage, oil & gas, and financial services. The STI uses a capitalisation-weighted weighing method; this means that the constituents with a higher market value confer more influence on the index. At the time of this…

7 Sources of Competitive Advantage

7 Sources of Competitive Advantage

Investors love quality stocks that deliver high returns and low capital intensity. Having a sustainable competitive advantage is the only way a company can maintain high returns over a long period of time. But competitive advantage comes in many different forms. To help you recognize them, here are 7 different sources of competitive advantage. Customer Loyalty Customer loyalty is the result of consistently positive emotional experience, physical attribute-based satisfaction and perceived value of an experience. Products with high customer loyalty will have more consistent sales and potentially higher customer profitability/…