Market Advisors

Team Reflections

2009-03-12T22:14:00.008+08:00

We feel that strength of our team is that we have all put in our 100% effort in doing the homework, resulting in us being able to use fundamental and technical analysis such that we can have the best gauge of a corporation's market potential. We also used the RSI, MA, the company's background and the management team as benchmarks for choosing the companies to invest in.

However, there are certain weaknesses in our team. For example, the world is undergoing an economic crisis now. This means that most of the stocks we are suggesting for people to invest in are supposed to be long-term investment such that there is a lower risk of losing our money. However, due to the time limit where we had to buy and sell the stocks in a few days, we were not able to earn as much as we can. We have also invested in multiple companies; this is to prevent us from putting all our eggs in one basket and losing everything at one go. We also have to learn to be more flexible in our thinking and investing because we only have $10,000 to spend instead of $50,000. This means that we cannot select bluechip companies like DBS or SIA whose share prices are way above $5. Also, we are taking a risk by investing only in mid-chips and penny-stocks during the current economic downturn, which are more volatie and consists of a bit of risk and gamble when investing in them. So we decided to choose some potential cheap stocks after going through their fundamental data and historical chart for the past few years. Because of this, we manange to reduce the risk of losing money and earned a rather huge amount of profits. And only when we have more money can we proceed to buy more expensive stocks which could give us more rewards in the short term.

Overall, we feel that this sabbatical has helped us a lot. Not only have we learnt more about investing and trading, we also learnt a lot more about teamwork. For the investing and trading part, we learnt about fundamental analysis, technical analysis, how to use them to interpret the potential of the company. Actually, we felt our team we followed two guideline principles of "using money to spin money" and "never lose money". We learn about how not to be greedy and be contented when we earn some money. One example is at Day 1, when we were winning around $1000, it had already exceeded our expectations but we were greedy and did not sell it, hoping that it will continue to rise, in the end it dropped tremendously and we lost money.

We also realized that TEAM stands for 'Together Everyone Acheives More'. This can be seen when we spend nights doing our project together and also monitor the shares together during lesson times, showing good team coordination and spirit.

Done By:
Alvin Ong
Lee Zi Jian
Lester Mok
Irvin Ho

Short-Term Investment: Olam Int.

2009-03-12T21:15:00.002+08:00

Sector: Commerce; Wholesale

Background Information:
Olam International) is a leading global integrated supply chain manager of agricultural products and food ingredients, sourcing 17 products with a direct presence in over 56 countries and supplying them to over 3,800 customers in more than 55 destination markets.

Olam has become one of the leading traders of agricultural commodities such as cocoa, coffee, cashew, sesame, rice and teak. Headquartered in Singapore, it ranks among the top 40 largest listed companies in Singapore in terms of market capitalization.

Subsidaries:
-Universal Blanchers LLC in the United States

2008: Awards
-Most Transparent Company, SIAS Investors Choice Awards 2008
-2008 World Business and Development Award

Leaders:
Chairman: Rangareddy Jayachandran
-35 years of experience covering diverse areas of capital raising, strategic planning and business development
-Completed Advanced Management Program (AMP) of the Graduate School of Business Administration, Harvard University in 1995
-Member of the Governance & Nomination and Management Development & Compensation Committees

Vice Chairman: Narain Girdhar Chanrai
-Working experiencein various Group operations in Africa, UK and Singapore
-Member of the Governance & Nomination Committee and the Finance & Investment Committee

Data (as of 2008-06-30):
Current Ratio: 1.257
Closing Price (as of 2009-03-12): $1.19
Debt to Equity Ratio: 7.845
Dividend Cover: 3.916
Dividend Per Share 0.025 SGD
Dividend Yield: 2.033%
Net Tangible Assets Per Share: 0.297 SGD
Price Earnings Ratio: 11.965
Return On Equity: 26.269%
Return On Total Assets: 2.692%
Market Capitalization: $2.02171B
Net Profit in 2008: $0.167B

Reasons to buy:
a) RoE profiting
b) Prices consistent despite current economic crisis
c) Leaders have good reputation and possess much experience in leading corporations and being in leadership and board roles in various major companies, hence being able to help company sign new contracts and take up various profitable projects
d) Multiple sources of income ensures that economic crisis today not affect adversely financial status of company when it hits a specific sector
e) Heavy debts = Short-term investment over long-term investment

No of Shares Bought: 3000
Entry Price: $1.200
No Shares Shares Sold: 3000
Exit Price: $1.21
Profit: $32.79

Sources:
www.sgx.com
www.cimbinvest.com
Olam International 2008 Annual Report

Done By:
Alvin Ong
Lee Zi Jian
Lester Mok
Irvin Ho

Short-Term Investment: Noble Group

2009-03-12T20:57:00.003+08:00

Sector: Commerce; Wholesale

Background Information
Noble Group Limited (SGX: NOBL) was incorporated in Bermuda in 1994. The Group manages the global supply chain of agricultural, industrial and energy products. Noble operates a diversified portfolio of raw materials from over 80 offices in more than 40 countries, originating product from low cost producing countries and delivering to high growth demand markets - its "pipeline" strategy. An experienced team of 10,000 employees serve more than 4,000 customers.

Leaders:

Chairman: David Eldon
-Non-executive Chairman of Hang Seng Bank Limited
-Director of HSBC Bank Australia Limited (formerly Hongkong Bank of Australia Limited)
-Director of the MTR Corporation
-Director of Swire Pacific Limited
-Deputy Chairman of The Hong Kong Jockey Club
-Chairman of the Hong Kong General Chamber of Commerce
-Chairman of the Dubai International Financial Centre Authority
-Holds a number of other Boards and Government appointments
-Co-chairman of the national competitiveness committee of President of South Korea Lee Myung-bak's Transition Committee

CEO: Richard Elman
-Founder and Chief Executive of Noble Group
-Built Noble Group from $100,000 into a $15 billion supply chain management business with offices in over 40 countries

Data (as of 2007-12-31):
Current Ratio: 1.631
Closing Price (as of 2009-03-12): $1.01
Debt to Equity Ratio: 1.642
Dividend Cover: 7.313
Dividend Per Share: 0.025 USD
Dividend Yield: 3.327%
Net Tangible Assets Per Share : 0.580 USD
Price Earnings Ratio: 7.294
Return On Equity: 16.658%
Return On Total Assets: 7.729%
Market Capitalization: $3.32829B
Net Profit: USD0.577B

Reasons to Buy:
a) RoE profiting
b) Leaders have good reputation and possess much experience in leading corporations and being in leadership and board roles in various major companies, hence being able to help company sign new contracts and take up various profitable projects
c) Manage to record a net profit despite of current economic turmoil
d) Monopolizes global supply chain of agricultural, industrial and energy products
e) RSI slightly below average currently = Undervaluation during current economic crisis = Possible huge profits if invested now

No of Shares Bought: 10000
Entry Price: $0.995
No Shares Shares Sold: 10000
Exit Price: $1.015
Profit: $130.64

Sources:
www.sgx.com
www.cimbinvest.com
Noble Group 2008-Q3 Annual Report

Done By:
Alvin Ong
Lee Zi Jian
Lester Mok
Irvin Ho

Short-Term Investment: Keppel Land

2009-03-12T20:28:00.003+08:00

Sector: Properties

Background Information:
Keppel Land is the property arm of the Keppel Group, one of Singapore’s largest multinational groups with key businesses in offshore and marine, infrastructure, and property.

With beginnings that date back to 1890, Keppel Land is today a leading property development company in Asia recognised for its premier residential developments and investment-grade commercial properties, and its high standards of corporate transparency and disclosure. It is geographically diversified in Asia with a current focus in Singapore, China, India, Vietnam, Indonesia and Thailand.

The Company is one of the largest listed property companies by total assets on the Singapore Exchange. It is part of the MSCI Singapore and FTSE EPRA/NAREIT indices. Keppel Land’s return on equity is among the highest in the property industry in Singapore.

Riding on strong economic growth and homeownership aspirations, favourable demographics and urbanisation trends, the Company has continued its expansion drive in the housing sector into new countries, cities and segments.

It has also embarked on developing large-scale residential townships in the region to tap on the demand for quality housing from the growing middle class population. The Group has a pipeline of more than 20,000 homes in residential townships across China, Indonesia and Vietnam.

In another step to unlock value for shareholders, Keppel Land is setting up K-REIT Asia, a real estate investment trust with an initial portfolio of four prime office buildings valued at $630 million. Apart from redeploying capital tied up in its investment buildings into development projects which provide quicker returns, K-REIT Asia will enlarge Keppel Land’s platform to generate fee-based income, in addition to the funds which have been established under its property fund management vehicle Alpha Investment Partners.

Projects:
Partnership with Modernland to develop residential township in Jakarta

Leaders:

Chairman: Lim Chee Onn
-Chairman of Keppel Land Limited, MobileOne Ltd, and Singapore-Suzhou Township Development Pte Ltd
-Board Member of the Monetary Authority of Singapore and k1 Ventures Limited
-Honorary Chairman of the National Heritage Board
-Deputy Chairman in the Advisory Board of the Harvard Singapore Foundation
-Elected as Member of Parliament in July 1977

Managing Director: Kevin Wong King Cheung
-Managing Director of Keppel Land Limited since January 2000
-Prior to this appointment, he was Executive Director since November 1993
-Chairman and Director of Keppel Philippines Properties, Inc., Chairman and Director of Keppel Thai Properties Public Co Limited, and Vice-Chairman and Director, Dragon Land Limited
-Director of K-Reit Asia Management Pte Ltd, Singapore Hotel Association and Singapore International Chamber of Commerce.
-Experience in the industry working with companies in the UK, USA and Singapore.

Secretary: Choo Chin Teck

Data (as of 2008-03-31):
Current Ratio: 2.667
Closing Price (as of 2009-03-12): $1.00
Debt to Equity Ratio: 1.079
Dividend Cover: 5.414
Dividend Per Share: 0.200 SGD
Dividend Yield: 15.385%
Net Tangible Assets Per Share : 3.181 SGD
Price Earnings Ratio: 1.200
Return On Equity: 34.028
Return On Total Assets: 12.749
Market Capitalization: $0.77181B
Net Profit: $0.77965B

Reasons to Buy:
a) High dividend per share
b) High RoE
c) Management in favourable position
d) Possible greater share prices following more investors to fuel further growth
e) Leaders have good reputation and possess much experience in leading corporations and being in leadership and board roles in various major companies, hence being able to help company sign new contracts and take up various profitable projects
f) Projects spread worldwide ensures that corporation will reap profits and minimize losses during current economic downturn
g)RSI below average = Undervaluation during current economic crisis = Possible huge profits through long-term investments

No of Shares Bought: 7000
Entry Price: $1
No Shares Shares Sold: 7000
Exit Price: $1.04
Profit: $219.21

Sources:
www.sgx.com
www.cimbinvest.com
Keppel Land 2007 Annual Report

Done By:
Alvin Ong
Lee Zi Jian
Lester Mok
Irvin Ho

Team Strategy

2009-03-12T15:15:00.002+08:00

1) Gamble it out on the penny-stocks
Principle: Win big in the shortest of time
Buy penny-stocks in large quantities, hoping that selling the shares following a slight increase in prices would produce large amounts of profits.
Suitable for full-time traders who still makes a living through investing in the market during this economic downturn
Pre-requisite: Risk appetite must be huge; there is a risk that a drop in share prices might lead to heavy losses
When To Buy:
a) When share prices decrease with signs of increasing
b) When share prices increase with signs of stagnating/ decreasing
Summary: Strategy for short-term investments

2) Play it safe, buy the blue-chip companies
Principle: To ensure that every dollar invested will lead to profits
Buy shares in huge corporations (preferably with government backing) to make sure that prices will not dip to too large an extent during this economic downturn and might have a possibility of increasing following the economic downturn
Suitable for part-time investors who still have other means to making a living, investing part of their savings in a bid to earn more money during the current economic downturn
Pre-requisite: Sufficient homework must be done to ensure that company will face as minimal financial difficulties as possible and that its share prices will increase following the recovery of the economy
When To Buy:
a) When RSI is below average nearing 30 and company becomes undervalued
b) When prices are at its lowest
c) When short-term MA is above long-term MA
When To Sell:
a) When RSI is above average nearing 70 and company becomes overvalued
b) When prices are at its highest
c) When long-term MA is above long-term MA
Summary: Strategy for long-term investments

Done By:
Alvin Ong
Lee Zi Jian
Lester Mok
Irvin Ho

Long-Term Investment: SIA

2009-03-12T11:06:00.002+08:00

Recommended Type: Long-term Investment
Sector: Transport, Storage & Communications

Background Information:
The Company (SIA) was incorporated as a wholly-owned subsidiary of the Singapore government through Temasek Hldgs (Pte) Ltd on 28 January 1972 as a public company with limited liability.

Its history began in 1947 when a twin-engined Airspeed Consul under the Malayan Airways Ltd’s insignia started scheduled services between Singapore, Kuala Lumpur, Ipoh and Penang. Malayan Airways Ltd grew steadily and by 1955, international services were added to its operations.

With the formation of the Federation of Malaysia in 1963, the airline was renamed Malaysian Airways Ltd. In 1966 the governments of Malaysia and Singapore acquired joint control of the airline, which was then renamed Malaysia-Singapore Airlines Ltd. In 1971, MSA was restructured into 2 entities; Malaysia Airline System Bhd and SIA.

SIA is one of the world's most successful airlines, with the distinction of having one of the youngest and fastest growing fleets in the world. As at end March 1999, SIA was operating 572 passenger flights a week out of Singapore. Its route network, including Silkair's and codeshare services, covered 110 cities in 42 countries. In 2000, the Company bought 49 percent of Virgin Atlantic airline for US$950 million.

Principal activities of the Company and the Group consist of air transportation, aero-engine overhauling services, simulator training, airport terminal services, marketing of aircraft cabin equipment, properties, aviation and general insurance and related activities.

Subsidiaries:
-SilkAir
-Tradewinds Tour and Travel
-SIA Engineering Company
-SIA Cargo
-SATS

Leaders:

Chairman: Stephen Lee Ching Yen
-Managing Director of Shanghai Commercial and Savings Bank Ltd. (Taiwan) and GMT Investments Pte Ltd
-President of the Singapore National Employers Federation
-Chairman of the Singapore Business Federation
-Member of the Advisory Panel of Temasek Holdings (Private) Limited
-Nominated Member of Parliament from 1994 to 1997
-Chairman of International Enterprise Singapore from 1995 to 2002
-Awarded Distinguished Service Order in 2006
-Alternate Member of the Council of Presidential Advisers

CEO: Chew Choon Seng
-Held senior assignments in Finance, Planning and Marketing, at head office and
overseas
-Member of the Board of Governors of the International Air Transport Association
(IATA) since June 2003
-Named Outstanding CEO for 2007 by the judges of the 23rd Singapore Business Awards in March 2008

Secretary: Ethel Tan Mei Lian

Data (as of 2008-03-31):
Current Ratio: 1.395
Closing Price (as of 2009-03-11): $10.10
Debt to Equity Ratio: 0.110
Dividend Cover: 1.730
Dividend Per Share: SGD 1.000
Dividend Yield: 9.823%
Net Tangible Assets Per Share : SGD 12.660
Price Earnings Ratio: 6.042
Return On Equity: 13.550%
Return On Total Assets: 7.729%
Market Capitalization: $11.7212B
Net Profit: $2.1369B

Reasons to Buy:
a) Owes little debt
b) High dividend per share
c) High RoE
d) Management in favourable position
e) Possible greater share prices following more investors to fuel further growth
f) Shares less volatile due to high market capitalization
g) SIA being a blue-chip company with massive amount of market capitalization will experience minimal decrease in share prices during current economic downturn
h) SIA being government funded and holding a reputation as a world class airline with multiple sources of revenue will continue to profit from tourism sector despite current economic crisis
i) Leaders (Chairman and CEO) have good reputation and possess much experience in leading corporations and being in leadership and board roles in various major companies, hence being able to help company sign new contracts and take up various profitable projects
j) RSI slightly below average currently = Undervaluation during current economic crisis = Possible huge profits if invested now

Sources:
www.sgx.com
www.cimbinvest.com
SIA 2008 Annual Report

Done By:
Alvin Ong
Lee Zi Jian
Lester Mok
Irvin Ho

Long-Term Investment: SPH

2009-03-12T10:34:00.001+08:00

Recommended Type: Long-term Investment
Sector:
Manufacturing; Printing and Publishing

Background Information:
Singapore Press Holdings Limited (SPH) was incorporated in Singapore on 4 August 1984 under the Companies Act as a public company. It was formed as the new holding company to effect the merger of Times Publishing Bhd, Straits Times Press (1975) Ltd and Singapore News and Publications Ltd. These companies became wholly-owned subsidiaries of SPH but in 1988 Times Publishing Ltd was demerged.

Today, SPH is the leading news and information provider, offering quality content for print, Internet, TV and radio. It is licensed to publish 14 newspapers in the four official languages and six lifestyle periodicals. Everyday, SPH publications reach some 90 per cent of adults in Singapore while online publication of its six main dailies enjoy about 120 million pageviews a month.

SPH has ventured into the broadcast medium and operates two popular free-to-air TV channels. History was made with the introduction of English and Chinese TV news broadcast which leverage on the brand name and resources of SPH’s print newsrooms, turning it into one of the few newspaper publishers in the world to have a fully-integrated newsroom that comprises print, TV and web.

In addition to its core business activities, SPH holds stakes in MobileOne, mobile telecommunications service provider, and in StarHub, a info-communications company offering cable TV, Internet as well as fixed-line and mobile telephone services. SPH is also a major property player owning Paragon and Promenade, two prime retail / commercial buildings on Orchard Road.

Leaders:

Chairman: Dr Tony Tan Keng Yam
-Deputy Chairman and
Executive Director of the Government of Singapore Investment Corporation Pte Ltd
-Chairman of the National Research Foundation
-Deputy Chairman of the Research, Innovation and Enterprise Council
-Chairman of the Ministry of Education’s International Academic Advisory Panel.
-Patron and advisor to several other civic and charitable organisations
-Deputy Prime Minister and Co-ordinating Minister for Security & Defence
-Helmed the Finance, Trade & Industry, Education and Defence ministries
-Chairman and Chief Executive Officer of Oversea-Chinese Banking Corporation

CEO: Chan Heng Loon Alan
-Chairman of the Urban Redevelopment Authority, SP PowerAssets Ltd and
PowerGas Ltd
-Serves on the boards of Singapore Power Ltd, MediaCorp Press Ltd, MediaCorp TV Holdings Pte Ltd and Singapore Press Holdings Foundation Limited
-Member of Business China and Casino Regulatory Authority of Singapore
-24 years’ experience in the civil service, spanning the Civil Aviation Department, Ministries of Home Affairs, Defence, Foreign Affairs and the Prime
Minister’s Office
-Permanent Secretary, Ministry of Transport

Secretary: Ginney Lim May Ling; Khor Siew Kim

Data (as of 2008-03-31):
Current Ratio: 3.098
Closing Price (as of 2009-03-11): $2.38
Debt to Equity Ratio: 0.281
Dividend Cover: 1.011
Dividend Per Share SGD 0.270
Dividend Yield: 9.926%
Net Tangible Assets Per Share: SGD 1.279
Price Earnings Ratio: 10.074
Return On Equity: 20.941%
Return On Total Assets: 13.884%
Market Capitalization: $3.91044B
Net Profit: $0.437B

Reasons to Buy:
a) Owes little debt
b) High dividend per share
c) High RoE
d) Management in favourable position
e) Possible greater share prices following more investors to fuel further growth
f) Shares less volatile due to high market capitalization
g) Current Financial Crisis could lead to increase in unemployment and rising concerns about the recent economic situation. Newspapers and magazines serves as a means for people to look for new jobs as well as be updated about the latest economic situation economy and thus, there will be an increase in sales of these materials resulting in the increase in profits and subsequently the share prices of SPH.
h) Government funding will ensure that company will not be greatly affected by the dip in the economy as compared to private companies
i) Multiple sources of income ensures that economic crisis today not affect adversely financial status of company when it hits a specific sector
j) Leaders (Chairman and CEO) have good reputation and possess much experience in leading corporations and being in leadership and board roles in various major companies, hence being able to help company sign new contracts and take up various profitable projects
k) RSI below average = Undervaluation during current economic crisis = Possible huge profits through long-term investments

Sources:
www.sgx.com
www.cimbinvest.com
SPH 2008 Annual Report

Done By:
Alvin Ong
Lee Zi Jian
Lester Mok
Irvin Ho

Long-Term Investment: SMRT

2009-03-11T12:06:00.001+08:00

Recommended Type: Long-term Investment
Sector:
Transport; Storage; Communications

Background Information:
SMRT Corporation Ltd ("SMRT Corp") is a holding company with transportation as its core business. SMRT Corp through its wholly-owned subsidiary, SMRT, operates the MRT system in Singapore. It also operates the Bukit Panjang light rapid transit system (Bukit Panjang LRT System), provides an executive bus service, a stored value farecard ticketing service and specialist engineering consultancy services.

TIBS, Singapore's second licensed public bus operator, became a wholly-owned subsidiary of SMRT Corp on 11 December 2001.

Today, SMRT is Singapore’s premier multi-modal transport operator. It remains the dominant player in the nation’s rail network and its buses and taxis have a significant presence in Singapore’s vibrant transport landscape.

SMRT also provides various Operations and Maintenance services to international transport owners. Major projects include:
Asia Pacific:
-Ho Chi Minh City Rail System, Asian Development Bank
-Bangkok Metro Company Ltd
-Bangkok Transit System
-Delhi Metro Rail Corporation
-Marubeni Corporation
-Nanjing Metro
-Shanghai Metro Company Ltd
-Taipei Rail Transit Corporation
Middle East:
-Sharjah Transport Authority
-Nakheel
Singapore:
-Sentosa Development Corporation
-Jurong Bird Park
South America:
-Maritima Petroleo Engenharia Ltd

Leaders:

Chairman: Choo Chiau Beng
-Chairman and Chief Executive Officer of Keppel Offshore & Marine Ltd
-Senior Executive Director of Keppel Corporation Limited
-Chairman of Singapore Petroleum Company Limited and Singapore Refining Company Private Limited
-Director of Keppel Land Limited, k1 Ventures Ltd and Singapore Maritime Foundation Limited
-Board member of the Maritime and Port Authority of Singapore
-Chairman of the Nanyang Business School’s International Advisory Board
-Chairman of Det Norske Veritas South East Asia Committee
-Board member of the American Bureau of Shipping
-Member of the American Bureau of Shipping’s Southeast Asia Regional
-Committee and Special Committee on Mobile Offshore Drilling Units
-Singapore’s Non-resident Ambassador to Brazil
-Conferred the Public Service Star Award (BBM) in August 2004

CEO: Saw Phaik Hwa
-Regional President for DFS Venture Singapore (Pte) Ltd, in charge of businesses in -Singapore, Indonesia and Malaysia
-Director of The Esplanade Co Ltd and a board member of the National Environment Agency of the Singapore Management University, the Tan Tock Seng Hospital Community Charity Fund and Youth Business Singapore.
-Resource panel member on the Government Parliamentary Committee (Transport)
-Conferred the Leading CEO Award in 2005, organised by the
-Singapore HR Institute and a Medal of Commendation at the 2007 May Day Award
-Attended an Advanced Management Programme at the University of Hawaii

Secretary: Prema d/o K Subramaniam

Data (as of 2008-03-31):
Current Ratio: 1.546
Closing Price (as of 2009-03-10): SGD 1.590
Debt to Equity Ratio: 0.369
Dividend Cover: 1.277
Dividend Per Share: SGD 0.078
Dividend Yield: 4.844%
Net Tangible Assets Per Share: SGD 0.419
Price Earnings Ratio: 16.162
Return On Equity: 22.143%
Return On Total Assets: 10.430%
Market Capitalization (as of 09-03-2009): $2.41072436514B
Net Profit: $0.1499B

Reasons to Buy:
a) Owes little debt
b) High dividend per share
c) High RoE
d) Management in favourable position
e) Possible greater share prices following more investors to fuel further growth
f) Shares less volatile due to high market capitalization
g) Current Financial Crisis could lead to more people switching to public transport and increased revenue and profits for SMRT, leading to increase in its share price
h) SMRT is government-funded, hence share prices will not dip as large as other private corporations would during this period of economic downturn
i) Leaders (Chairman and CEO) have good reputation and possess much experience in leading corporations and being in leadership and board roles in various major companies, hence being able to help company sign new contracts and take up various profitable projects
j) Projects spread worldwide ensures that corporation will reap profits and minimize losses during current economic downturn
k) RSI around average + Strong financial health = Possible profits in future from purchasing at current low prices

Sources:
www.sgx.com
www.cimbinvest.com
SMRT 2008 Annual Report

Done By:
Alvin Ong
Lee Zi Jian
Lester Mok
Irvin Ho