Launch of Fundamental Scorecard

Friday, May 29, 2015

Lets Talk about Telcos, AIIB & ICT Tenders, Investment Thoughts...

Telcos: M1, Starhub, Singtel (Part 2)

You can read about Part 1 here which I wrote on 24 May 2015.

However, things didn't go that well for me. I had itchy hands and got myself some lots of Singtel (@4.220) and Starhub (@4.05) on 25 May 2015 as I felt the drastic drop is enough.

Never did I expect Telcos to continue to drop and so drastically. My over-confidence in my view blinded my vision and now my portfolio is "Telcos" heavy (I already had some M1 very long time ago).

However, I came across an article by Assi AK. In my opinion, it tell us to question our initial actions and if the investment will still do its job.

So why did I enter into these 2 trades (Starhub & Singtel)?

1. For Dividends.
2. Blue Chips Stable company in view of recurring income.
3. Current Drop is due to 4th Telco News and maybe the "Big Boys" selling their shares.

With the above reasons, I believe Telcos stocks are still good to hold. I bought them for the long term and for the dividends as well.

So for those in a rush to sell their stocks, please think about why did you initially buy them? If the company is still doing well, why rush to sell them?

You can always think the other way - Be a Contrarian - This may end up be an opportunity for you to enter instead.

I also came across another article on when to sell a stock.

ICT Tenders -  For 4th Telcos and AIIB

Not too sure if this is a coincidence - But Singapore Government has just release news that it will launch S$2.2b in ICT tenders to realise Smart Nation vision.

This seems to be in line with the launch of AIIB and Japan investment, as well as the news of a 4th Telco entering the Singapore Market.

Nevertheless, with the infrastructure being enhanced nation-wide, this will benefit all Telcos (rather than only the new Telco) and also us, The Consumers.

Companies responsible for these developments will definitely rise in the long term - You can always target them now (but you will need to guess who it will be?) or wait till announcement to rush in to buy.

Investment Thoughts

I just like to share 2 interesting articles to read -:

1. How Many Stocks You Should Own In Your Portfolio? - It basically explains how should you determine the number of stocks you should hold. I guess you don't have to follow religiously, but it will give you an idea of  how many stocks should be in your Portfolio.

2. Market Change. So Should You. - This article explains that MARKETS ALWAYS CHANGE. Our strategy should change too. In my opinion, I believe we can be flexible in some of our factors when we are analyzing our stocks, but our core value should not change. An example is ISDN which I am vested in.

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