Monday, February 16, 2015

Stocks - 1 in 1 out

Ex-share
Sold my remaining Creative share.
Why?
Even if Beats audio were to buy them, Beats will wait til their shares drop to very low before coming in.
What about me saying they might win a court battle against the big US companies?
It might not happen so soon. The price might deteriorate much lower, before it actually happens. Even if it eventually happens, it will eventually go down again because ultimately, their way of doing business sucks, no matter how good is their products.

New share
I have been scouting around for quite long.
From my portfolio, I see it as better to acquire 1 more share.
Of course most importantly leaving some money in the war chest.
Some came to my attention. One of it is Ascott REIT.
They have a big stake in Europe. Europe is printing money.
And also, Hong Kong's Li Kai Shing is betting his money on Europe now.
But in the end, I chose not to buy, why?
They are an luxurious business. I prefer thrity and fugal business. Much like my personality. GP hotels which owns the chain of Fragrance hotel is more my taste. But their currently PE ratio is not to my liking (around 19).

Today, I bought Sembcorp Industries.
They are currently at a good price now, due to the oil price plunge.
However, I only bought half of what I wanted.
That is because, the price of oil might cause it to dip further.
It is always better to buy or sell progressively. (What I learnt from Forex)
I might acquire some more in future.
Their dividend payout ratio is ok, at around 3%.
Their Price-Book ratio is around 1.3, which is quite good.
Their PE ratio is around 9.
Their Debt-Equity is also decent, around 0.5 I think.
But the catalyst for me buying: They invested in an Indian company which deals with renewable energy like solar and wind power.
Both factors, India, and renewable energy.
I always wanted to invest in renewable energy, as I think it is an awesome technology.
Secondly, I also like the new India leader, Modi.
India is also another sleeping dragon, with tremendous amount of talented people.
Many of the bosses of MNCs are Indians. Microsoft, DBS.

Actually before I saw the news on Sembcorp's decision on renewable energy, I told myself to not buy anything if I do not like anything at the moment.
I also should like the idea of keeping more cash in my bank account, the same as you prefer your company to be cash rich.

If there is nothing to buy, buy nothing.

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