If you are a serious investor, then there should be a proper and methodical approach. What is the aim? Are we investing for retirement funds? We should all understand that fundamentally good stocks will give us good returns over a long period of time.
Finance ministers from the Group of Eight leading nations spent two days in Osaka and all they could come up with is a statement that rising fuel and commodity prices could hurt global economic growth.
Since our 22 May downgrade of the dry bulk shipping sector, share prices have sunk by 30% for STX Pan Ocean, reflecting leverage to a 14% decline in the Baltic Dry Index (BDI).
In the previous issue, Shares Investment (Singapore) has discussed the concepts of Return On Equity and Return On Assets. This issue, we shall introduce another 3 important financial ratios, namely Earnings Per Share (EPS), Net Asset Value (NAV) and Price-To-Earnings (P/E) Ratio.
In this issue’s Shares Investment (Singapore), we want you to stop predicting the directions of the stock market, the economy, interest rates, oil prices and the US elections. Instead, we want you to focus on analyzing the fundamental value of a company.
Lately, Fed Chairman Ben Bernanke has hinted that the Fed will probably stop cutting rates as they have done enough to promote moderate economic growth. He also added that a weak US Dollar will have the effect of feeding into inflation.
CT said the bulk of the proceeds ($38.2m) will be used to acquire multi-track electronic tubular knitting machines, new face finishing and processing equipment to make peach finish fabrics, and computerised jacquard knitting machines.
Outlook for the palm oil industry is still looking positive. We believe Indofood Agri Resources’ (IFAR) age profile of trees favourably positions it to enjoy the benefits of current high CPO prices.
CDL achieved core earnings growth of 30.8% to S$165.0m on the back of revenue dip of 1.3% to S$758.8m in 1QFY08, compared to 1QFY07. All three business segments contributed to the earnings growth but the key contributor was the property development division.
Markets may have gotten a little ahead of themselves in May in predicting a recovery in the U.S. economy within a matter of months - and thus a sustainable recovery in the dollar. Wait until later in the year for that.
