Its has been a volatile week, with all the oil prices and all the companies' results showing strong fundamentals. Investors and traders must have been through a roller coaster ride. Well for me, i have been sitting on the sideline for a while. I have been compiling a list of companies that can buy if it falls to that certain price. Some of my readers will say, 'no way these companies will fall to those prices again' However, you will never know when recession will come again and these companies will fall again. So I might as well compiled a watchlist of the 'buy-in prices' for some of the companies so that when 'that time' really come, i dun have to rush to the charts and check everything. I have compiled a variety of watchlists, which also showed the dilemma that i am in during the past few weeks.
For those readers who have been following my blog, i began by looking for First Tier companies:
Capitaland, ChinaAngel, CAO, China Hong, China Sky, China Sports, Chip Eng Seng (aka chippy), City D, Cosco, Fibrechem, Midas. Of course there is many more of first tier companies out there. And then i thought, i cant really afford these companies given my limited capital.
Thus, i move on, with lowest entry price for companies.
Companies, Entry Price
CourageMa, 0.20 AsiaPower, 0.25 ChuanHup, 0.290 Chip Eng Seng, 0.645 Tiong Woon, 0.885 BH global, 0.410 C&G industrial, 0.55 Food Empire 0.70 Int Roller, 0.710 UOBKayhian, 1.39 ChinaAOil, 1.79 Asl Marine, 1.00 Ausgroup, 1.27 Swiber, 1.20 Raffles Edu, 1.40 Olam, 2.00 Hyflux, 2.05 Cosco Corp, 2.70 SPH 3.86, Ezra, 4.40 Capitaland, 6.05
This method works to a limited extent. After much reading, i found out this is the graham way of investing, buy cheaply, and wait. However, as you can see, some price maybe reasonable to wait for, however some others are just too impossible unless there is something really big that can cause such an uproar.
Finally i move to companies that have consumer monopoly:
SBStransit (Duopoly in Transport), SGX (Dont really need to elaborate), Singpost (Monopoly in residential Mail), Singtel (Leading in Telecommunication), Smrt (Duopoly in transport), SPH (Monopoly in Media). These 6 companies have their own way of monopoly or acting like a toll gate to services (like in order to use a handphone, you need to have a handphone plan.) Of course there are more, that i will go looking for it. Which as time allows, i will update this blog respectively.
Meanwhile, i am looking at Raffles Edu and ARA.
