Intraday Trade Signals for Malaysia Stocks

Dear readers, I am extending my service to cover intraday short term trades and day trading on malaysia stocks. For interested readers you can view my blog posting in http://klse.i3investor.com/blogs/tradesignals/ or via this page. For readers who would like to subscribe to my real time service please drop me a message via whatsapp 0124808221 " Subscribe KLSE".

I will post my last two months performance in a few weeks time. So keep reading. I'll be BACK :)

regards,
Keith

Singapore Stock Picks GuocoLeisure: SGD 0.84 BUY (TP: SGD1.43)

Dawn Of a New Era GLL is embarking on a hotel-operator model that will see it expanding to 100 major cities by 2023. Its hotel division CEO, Michael DeNoma, has an impressive record for value-creation in his previous appointments, and we are positive on his execution capability. We reduce our holding company discount from 30% to 20%.

 Maintain BUY, with a higher TP of SGD1.43. New broosweepm s clean. Since Michael DeNoma came on board as CEO of GLL’s hotel operations about two years ago, the group has embarked on an overhaul of its business model, retrofitting its flagship hotels to revitalise earnings while introducing new brands to serve niche segments more effectively. Underpinning the overall strategy is a vision to become a global hotel operator with a presence in 100 major cities by 2023.

Capable CEO whose interest is aligned with shareholders’. Mr DeNoma has a sound record in creating value in his previous capacity as CEO of Standard Chartered Global Consumer Bank. With his experience in brand-building coupled with GLL’s portfolio of prime hotel properties, the shift towards an asset-light hotel management model will enhance returns on capital as well as catalyse the stock’s re-rating. Notably, the interests of Mr DeNoma and his top managers – who have received up to 33m share options exercisable at SGD0.86 each - are aligned, and there is now incentive to move the options deep into the money.

  Earnings on an upswing. London’s hospitality market is poised for strong gains in 2014-15, with revpar (revenue per available room) projected to grow 4-5% over 2014-15 as hoteliers regain pricing power, spurred by rising corporate demand. As one of the largest hotel operators in London, we expect GLL to benefit from the upswing. While retrofitting cost will weigh on earnings in the current year, this will be offset by interest savings from expiring high-cost mortgage bonds.

Maintain BUY, with higher TP of SGD1.43. We are reducing our holding company discount from 30% to 20% as the group makes the transition to an earnings-driven model. GLL has defined hospitality as its core business, while its non-core assets such as its Molokai property or Bass Straits Royalty may be divested at the right price, with the potential proceeds re-invested in its hospitality business

Source: DMG Research

US Undervalue Stock Picks for Jan 2014

Dear readers, This is my stocks pick for the US Market based on Benjamin Graham screening criteria. Typical holding period for this stocks is 6 months to 1 year. Portfolio is rebalanced every quarter.

Simple Stock Picking Strategies for the New Investor

Like most people, I was looking for a stock selection system that would help me identify multi-bagger stocks. That is, stocks that can double in price in a short period of time.

After a lot of research and browsing on the web, I finally found a system that has given me very good returns. Of course, this system is not unbeatable. I am also sure finance experts have come up with better strategies than the one I follow.

What I needed, though, was an easy and simple to understand method of stock picking. This is what I follow:

The strategy is known as CANSLIM.

CANSLIM is a stock investment strategy based on a study of 500 of the stock market winners. It dates back to 1953 and is described in the book How to Make Money In Stocks: A Winning System In Good Times or Bad by William J O'Neil.

What is CANSILM?

Each letter in CANSLIM stands for common characteristics that are found in the greatest stock market leaders over the past 50 years.

C: Current earnings per share

It tells you how much profit the company has made for each share given to its shareholders. As per this strategy, earnings per share should at least increase by 15-18 per cent every year.

A: Annual earnings

That is, the net profit made by a company. This should have increased by 20-25 per cent or more consistently for the last five years. Consistency of earnings are equally important when you look at the past earnings record

N: New management

The company should either be under new management, have a new product or have a new service. What we are trying to see is whether the company is embarking on newer product which will enable the company to grow the revenue and profit growth.

S: Shares of common stock outstanding

As far as possible, this figure should remain small. It tells you how many shares a company has issued to investors like you. If this figure is small, the earnings per share discussed above increases. One can get this number after a look at the equity capital in the balance sheet.

L: Leadership

The company should be a leader in its industry, or at least in the top three positions in the sector/ industry/ segment it operates in.

I: Institutional sponsorship

Look at the mutual funds that are buying this particular stock or holding this stock for a sufficiently longer period. If well performing mutual funds are holding your stock/s, then your chances of making money are good.

M: Market trend.

In a falling market, even the best stock will not be able to perform. Try and enter a upward market. That is, buy a particular stock when the share market is moving up. However, care must be the watchword when the share markets don't do too well. Always remember this – “The Trend is Your Friend, Don’t go against the Trend”

CANSLIM or not, always tread with caution

The strategy is one that strongly encourages cutting all losses at no more than 8 per cent or 10 per cent below the buy point, with no exceptions. This will help you minimise losses and preserve gains.

The book says buying stocks from solid blue chip companies should generally lessen chances of having to cut losses, since a strong company will usually shoot up in a bull market (when the stock market .

CANSLIM strategy is not momentum investing; the system identifies companies with strong fundamentals, big sales and earnings increases which is a result of unique new products or services.

Hope it makes your investing experience much more easier. With all the important information required to succeed using the CANSLIM method very easily available on the Net, I don't need any sophisticated system to find good stocks.