The FISCA website has a summary of the recommendations of brokers (buy, sell or hold) on the 30 stocks in the Straits Times Index. These are the blue chips of Singapore. This is now available for viewing by members and non-members. In future, this type of information will be provided only the members of FISCA, after they have logged in.
Here is the direct link to the article.
Here is the direct link to the article.
4 comments:
Brokers' calls on certain stocks best viewed as one part of homework done by investors. Self interest is a suspicious concern, but such recommendations help to narrow down the list for easier monitoring and to save time.
There are some other unglamorous stocks outside the radar of brokers and analysts that give good yields, can't trust all the calls.
Thanks Mr Tan and FISCA for this.
Personally I always adopt a 'EIC' (Macro) approach in managing my own equity portfolio:
a) E --> Economic cycle analysis
b) I --> Industry selection
c) C --> Company selection
On (c) above, my (Micro) financial analysis on individual companies usually focus on 4 key factors using 'PLOG' acronym:
P = Profitability
L = Liquidity
O = Over-trading ('Thinning Capital') Risk
G = Gearing
Caveat Emptor - i.e. no matter how tight and careful in our analysis, we can only assume financial statements of these companies are true and fair, as well as they are constantly equipped with strong corporate governance and internal control exist (which we cannot take for granted that blue chips are always strong in these aspects, given contemporary dynamic business environment).
Hence I usually will set aside 30% - 60% of my investable funds (depending on my reading of the economic cycle condition) with various ETFs and good grade bonds to ensure adequate diversification.
Personally, I still hold the view that we are entering the initial phase of a secular bear market.
Typical market bull-to-bear, peak-to-trough seem to compressed into 3 years +/- cycles since past decade.
Lip Wee
When I was a student some years ago, the statistical analysis in my final year dissertation (based on a sample of 150 stocks from SGX) confirmed the below hypotheses that:
a) Price-To-Book (PTB) ratio is a stronger indicator in bear cycle
b) Price-To-Earning (PTE) ratio is a stronger indicator in bull cycle
Of course if you are convinced that we are in a bear phase, then stick to stocks with lower PTBs, higher dividend yields and larger Cashflow-From-Operation (CFO) or even Free-Cash-Flow (FCF).
All the best: )
Lip Wee
Forget it
Brokers make you broke
Dont listen to their calls
Most of them are wrong most of the time
In fact they could be recommending a buy for you the small fish so as to help the big fish unload
When they say hold it might actually mean sell
Dont buy individual stocks unless you are diversifying
Even the bluest of the blue chips can fail
Never too big to fail
Try tracking indices or stock baskets
Post a Comment