SG 88
SG 88
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avatarSG 88
2022-09-28

Corporate Life Cycle

Just like any other product life cycle, companies believe or not also have its life cycle. Starting from start-up, young growth, high growth, mature growth, mature stage and decline. Its all varies according to the industries the company operates within as well as infrastructure development and demand adaptation that enable it to be sustainable in future.Start - UpThis is where the inception of new product or service happened. revenue are low and initial start up costs are high mainly due to lack scalabiliy (economy of scale) as well lack revenue capitalisation.Business are in search for customers to fulfill their book orders. At this stage cash flow are tight or at negative territory, let alone profitability is not at foresight.Young GrowthThe business are experiencing rapid revenue growt
Corporate Life Cycle
avatarSG 88
2022-10-12

Managing Risk

The understanding that if one take higher risk, the greater is the return would be. Well that does not really hold true, it maybe totally the reverse the higher risk, the greater loss would be. Risk management would entail one to identifying and assessing (the downside) risk, crafting out strategies to manage such risk while maximising the returns (upside potential). Downside Risk By managing the downside risk, one would “prudently” manage the major adverse brings along with the investment. Invest with funds that you do not need in near term. Don’t buy from news, sell on rumours Diversify your portfolio, plan out riskier industries (Tech companies) Vs risk adverse (Consumer Staple companies). This would cushion against market volatility. Don’t put all your eggs in one basket. Arguably
Managing Risk
avatarSG 88
2022-07-15

Valuation - Discounted Cash Flow

It's the process of estimating the value of a company or investment based on the cash flow it expected to generate in the future at the present value date.Simplify the termsits basically gathering the necessary information in terms of the company’s ability to generate revenue (cash flow) at present or future period. Those future generating cash flow would need to discounted back to present value in order to measure apple to apple the monetary value worth of the company’s value.Components involved Weighted average cost of capital (WACC) It is the calculates cost of a company’s raise its funding, ranging from bonds, long-term debts, common stock, preferred stock and the likes. Cash flow generating It involves new feasible project that would be a game changer, distorting the norm of business
Valuation - Discounted Cash Flow
avatarSG 88
2022-03-23
I started my option trading only last Dec 21 when I open my Tiger Broker account. Since then I manage to get my position filled with favorable and adverse outcome.My Disappointed Options TradingMy bad option position (maybe not??). I have is Sell Put with $Palantir Technologies Inc.(PLTR)$ which allow me to earn some cashflows but at the same time, the share fall way below my Strike Price which was USD 17 on 21 Jan 22 and has since been on a downward trend until recently (USD 13.27). I've been holding the stocks even since as I believe it has long term potential since PLTR do not have any Debts in their Balance Sheet which will be less impactful when Fed's further quantitative easing come this May.My (consider) Most Succe
avatarSG 88
2022-10-06

Story Behind a Valuation

Value Creation In any successful business, comes with their “sauce of success”. Its amazing to understand the simple logic behind it Create more value than you can consume In any successful outcome, be it in life, career or business, creating value touches every walks of life. Take example, $Amazon.com(AMZN)$ was created for a simple reason, having an “enduring franchising” model by unlocking the power of internet, offering low prices, vast selection, fast delivery on top of that save customers time and effort. It took 14 years (58 quarters) after May 1997 initial public offering for $Amazon.com(AMZN)$ to make cumulative of $1.86 billion net income on fourth quar
Story Behind a Valuation
avatarSG 88
2022-06-16
$Palantir Technologies Inc.(PLTR)$A bit awkward....The Fed's annoucement on interest hike 75 bps tends to phase the market of having "bear coming out from jungle".https://www.google.com/amp/s/www.wsj.com/amp/livecoverage/federal-reserve-meeting-interest-rates-june-2022Somehow PLTR responded by maintaining the stock price at USD 8[Doubt] .What is sure that whether market noise or sentiments may be, only the Investors or Traders (for that matter) that having position is the sole decision maker that buy into the position. Do what's necessary in accordance to your game plan. Unless the fundamental of the company changes, all else of irrelevant.@TigerStars
avatarSG 88
2022-07-12

Capital Structure, What gives?

A Company’s Capital Structure refers to the mixture of equity and debt financing leveraged to finance its assets. Such mixture of equity and debt capital is consider as financing decision.Such financing decision would have direct effect to the weighted average cost of capital (WACC). With that in mind, any changes to the financing decision, would undoubtedly effect WACC.In any given organisation, the objective is surely to maximise shareholder wealth. To determine the wealth, is the measurement of future cash flows discounted at investors’ required return, ie WACC. The Present Market Value of a Company = Future Cash Flows / WACC Example:100 / 0.15 = 667100 / 0.10 = 1,000Therefore, looking for higher shareholder wealth = searching for lowest WACC. Questions: Which would be ideal blend betwe
Capital Structure, What gives?
avatarSG 88
2022-08-30
$Bed Bath & Beyond(BBBY)$whether its able to rebound in any terms not only rely on how its business model able to sustain in foreseeable future.Funding only play first part, subsequently BBBY would meant to get revenue in and manage its cost efficiently.Then it would be able to grow and rewards its stakeholders accordingly.Operating a chain of retail stores by selling a wide range of domestics merchandise, including bed linens and related items, bath items, and kitchen textiles; and home furnishings, such as kitchen and tabletop items etc either 953 stores as at Feb 2022, having 771 Bed Bath & Beyond stores in 50 states, the District of Columbia, Puerto Rico, and Canada; 130 buybuy BABY stores in 37 states and Canada; and 52 stores in
avatarSG 88
2022-09-30

Beyond Crisis

What happend during crisis? No doubts lots of negative sentiments would fall upon us as investors. Too focus on crisis that loss sight of what's beyond crisis  Loss faint in what we know and what framework that we builded  Looking for professionals that gives us comfort in times of crisis Sometimes, illussion over takes what has achieved by famous investors (Warren Buffett, George Soros and the likes) where major news would dwell into what they achieved vs what they mistakenly done. Afterall they are also human same as us, with some luck and skillset that overtime has improve tremendously.Surely Kraft Heinz Warren's investment mistake shows that not everyone is perfect. Astonishingly, passive investors beat active investors in the long run.Investing perspectiveHaving a portf
Beyond Crisis
avatarSG 88
2022-04-26
$Palantir Technologies Inc.(PLTR)$Still going strong after so many hammering from the Macro level[Duh] 
avatarSG 88
2022-05-23
$Palantir Technologies Inc.(PLTR)$New week new start. For those that have similar position like me (hope that don't have any if situation permits), another new week ahead.Whether the week bring bright prospects or not, do not give up in your investing journey. Much to learn, much to explore. With Tiger Annoucement of their latest version 8.0 coming, can't wait to check it out.[Wow] Market volatility sometime gives you sleepless night.... not sure about you but I do. Try to "switch-off" when necessary to re-energised for the next Market volatility. As investing needs the perseverance and determination that comes with long term view.[Sweats] Each investment will always comes with risks.Invest safety with proper understanding and do no
avatarSG 88
2022-08-16
$Sea Ltd(SE)$With its mammoth three headed business models, namely:Shopee:e-commerce market place platform that serves many (sellers) to many (consumers) models.Garena:Leading e sports in Southeast AsiaSea Money:Digital payment and financial service provider in Southeast AsiaThe company's total losses has double up, stand at $931 million Vs $433 million last year same quarter.Though revenue grew 28.9% to $2.98 billion from $2.28 billion quarter to quarter mainly supported by e commerce division.It's gaming segments has been on declining trend, possible due to users mainly spending more time outdoor after pendamic lockdown or perhaps users are bored with existing gaming resulted in 15% quarterly active users a further 39% down in paid users.Costs has
avatarSG 88
2022-07-22

Earning Per Share Purpose?

Earning Per Share (EPS) is indicate a business profitability divided by number of outstanding shares of a common stock.Commonly reported as adjusted for extraordinary items and potential share dilution.When viewing EPS, comparing with competitors of similar nature within the same industry would be a valuable benchmark against what’s the business actual worth across a period of time.With the current state of technology, EPS ratios with trailing 12 month period is widely available with a click of a button (don't you just love technology [Sly]). EPS Formula EPS peg against PEPrice to earning ratios (PE), as the name suggest the company’s stock price divided by earnings per share. Its an indicator of how much the market willing to pay for each dollar of earnings generated by the company.A
Earning Per Share Purpose?
avatarSG 88
2022-05-25
$Palantir Technologies Inc.(PLTR)$No theory or classes can prepare anyone when it comes to your own stock falling rapidly.Some argue that your crazy just by holding on to it, others says what's wrong with your judgement[Surprised] In the investment game, just like any businesses... only the strongest and the smartest survive.Stay strong in the period of uncertainty. They say you only know your limits and potential when times are tough.Probably the tough times would prolong, no one knows for sure.The only thing that you are certain of is the rules of your game plan.Invest wisely my friend, as its your own hard earn money.@MillionaireTiger@
avatarSG 88
2022-07-25

[Earning Seasons] SNAP! Lets Dissect

Snap’s earning call on 21 July 2022. Here’s some highlights from earnings call: Snap letter to investors with the starting note on challenges lies ahead: Changes to platform policy Increasing competition in dollar advertising No earning estimates for quarter 3 2022. Commitments from Snap: Streamlining hiring and reprioritizing company’s goals and initiative Implementing stock repurchasing program Commitments from Co-Founders, Bobby Murphy (CTO) and Evan Spiegel (CEO) at least til      1st January 2027 Stock split in the form of Dividend if Class A share price reaches $40 within next 10 years. Product Developments Advertising performance measurement solution: Privacy-preserving first-party (1P) measurement tools (Advanced Conversions AC and         
[Earning Seasons] SNAP! Lets Dissect
avatarSG 88
2022-05-27
$Palantir Technologies Inc.(PLTR)$Looking at the market, its seems my position is better off by 4%[Doubt] Though it's a relief to know that it has improved, do note that there's much uncertainty to come.In other words don't expect the bear run is on steriod mood for long.The rule of the game is Patient and Perseverance.I'm not sure will Mr Market give sympathy and reward you handsomely.But I do know that if I do nothing and stay status quo, I'll be even worst position than I never start investing.It's comforting that some of you provide word of encouragement. I thank you all for such response.To those that unfortunately having similar (hope it's not you) position as mine, if you believe in the company and its fundamental didn't change, do sta
avatarSG 88
2022-09-21
Guess it's time to "time" the market in order to take opportunity when the Fed hike up the rates.Whether 75 bps or 100 bps, I'll bet some stock price are rolling in sea of red.Look at those that you consider potential in your own portfolio.Buy when the price is right.Do not go all in as you can't pinpoint the lowest entry point. No one can.[Surprised] 
avatarSG 88
2022-07-02

Temperament, the true test of time

Having all the "bear" out from the woods...Ones alway need to consider maintaining your "stamina" to continually invest when opportunity arises.Especially your current portfolio is all sea of Red like me.In order to play any game, we need to follow the fule of the game, in this case Market will always react drastically towards any news or analysis write up particularly on certain industry or company.Make sure that your own due diligence is done covering all aspect ranging from competitiveness to long term profitability and growth. Understanding the macro economic company's operate would also beneficial in terms of anticipating how the company perform in the near term.Try not to involve your emotion with the market fluctuation.  No one able to time the market, but we can affo
Temperament, the true test of time
avatarSG 88
2022-09-14

Value Investing Mechanics

Everyone know what is value investing, by simplicity wise its all about finding the right stocks that currently experiencing below its intrinsic value.On general terms, one would use Price-to-Book value (PB) or Price-to-Earnings (PE) as the basis of identifying the stock value worth at present moment.Usually company that often pay dividends would have lower PE as compare to growth stocks that don’t pay dividends as part of the payout impact earnings per say.Growth stocks (usually tech companies) would rather reinvest its earnings back to the company for further growth and expansion. Companies like Google $Alphabet(GOOG)$, $Amazon.com(AMZN)$ focus on capital appreciatio
Value Investing Mechanics
avatarSG 88
2022-03-29

TESLA Stock Split, the Good, the Bad and the Ugly

$Tesla Motors(TSLA)$  as we all know announced on 28th Mar 2022, seeking shareholders' approval in the up coming Annual meeting.https://s3.amazonaws.com/fioaddon-siftstorage/EdgarFilingsHtml/0001564590-22-011875/tsla-8k_20220328.htmWhile is good news given that Market reacted awesomely well, care as to what extend .would such stock increase justified its fundamentals.Current Stock Price at at 29 Mar, minutes after market opensFlash BackLast stock split was on 31 August 2020, with the annoucement back then 5 for 1 split which gives the stock price soar to the moon... (well almost) landed around USD 2,000 per share.With the current excitement airing loudly, its seems that history might repeat itself [Doubt] ?The GoodSt
TESLA Stock Split, the Good, the Bad and the Ugly

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