Qualitative Analysis "Fifteen Points to Look for in a Common Stock"
Does the company have a worthwhile profit margin?
What is the company doing to maintain or improve profit margins?
Does the company have outstanding labor and personnel relations?
Scuttlebutt – Networking Technique
Most people love to talk about their competitors. Go to key managers in five different companies in an industry and ask each of them questions about the other four. You will emerge with a detailed and accurate picture of all five companies
Other sources include vendors, customers, professors, trade association executives, former target company employees, and so on.
Why Stock Analysis is so difficult Fibrechem Technologies This was one of the best-followed S-chips. The first sign of trouble surfaced when the China-based chemical fibre-maker requested a trading halt on Feb 23 this year. That was the day it failed to release, as scheduled, its fourth-quarter and full-year results. To the dismay of shareholders, the firm's auditors indicated they had difficulty finalising the audit on its trade receivables and cash balances as of the end of December last year. Before the trading halt was imposed, the counter plunged seven cents, or 40 per cent, to 10.5 cents, with 9.68 million shares traded. Meanwhile, founder and chief executive James Zhang resigned from his position as executive chairman. The company has appointed NTan Corporate Advisory as its independent investigator to examine the questionable transactions. No progress has been announced. “ S-chipped”- Tue, Mar 31, 2009 The Straits Times
Even if you are good at picking stocks Straits Times Index Components % Change in 2008 SMRT Corp Ltd 0.0% ComfortDelgro Corp Ltd -17.1% Singapore Press Holdings Ltd -28.2% StarHub Ltd -31.2% Jardine Matheson Holdings Ltd -32.5% Singapore Technologies Engineering Ltd -33.8% Jardine Strategic Holdings Ltd -33.9% Singapore Airlines Ltd -34.2% Genting Singapore PLC -34.3% United Overseas Bank Ltd -34.5% Singapore Government Bonds 7.40%
Bond Funds in 2008 Source: iFast Financial Compilations; performance in the tables are in SGD terms, calculated using bid-to-bid prices, with any income or dividend reinvested Table 1: Top 10 Funds in 2008 Fund Name Performance Region/Asset Class UOB United Global Bond SGD 8.90% Global Fixed Income Henderson Global Bond Fund 8.50% Global Fixed Income Legg Mason Global Bond Trust 4.70% Global Fixed Income PIMCO Total Return Bond USD 3.50% US Centric Fixed Income LionGlobal Spore Fixed Inc-A 2.20% Singapore Fixed Income PRU Protected Global Titans Fund 2.10% Global Protected LionGlobal SGD Money Market 1.60% Singapore Money Market Phillip Money Market 1.40% Singapore Money Market DWS Lion Bond Cl A 1.40% Singapore Fixed Income Cash Fund 1.20% Singapore Money Market
The Investment Universe Your Universe Where can I place my money in? SG Stocks Small Caps Mid Caps Blue Chips Penny Stocks Cash Savings Account Structured Deposits Fixed Deposits Fixed Income Corporate Inflation-linked Bond Sovereign Bond Assets-backed Bond Derivatives Forwards Futures Foreign Exchange Options Unit Trust
Further allocation of bonds and equities to gain access to require asset classes
Bonds Portfolio Equities Portfolio Singapore / SGD Bias Bond 30.0% US Centric Funds 25.0% Global Bond Funds 20.0% Developed Europe Funds 25.0% Asian Bond Funds 20.0% Japan Funds 5.0% Emerging Market Debt Funds 15.0% Asia ex Japan Funds 15.0% High Yield Bond Funds 15.0% Global Emerging Market Funds 30.0%
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