Are Markets Overvalued Now? Yes…According to the Buffett Indicator

dow jones nasdaq s&p sti stocks Jan 15, 2018

by: Tam Ging Wien


All examples and stocks quoted here in this article and on the ProButterflyTM site are for learning purposes; it does NOT constitute financial advice or a Buy/Sell recommendation. Contents are reflective of personal views and readers are responsible for their own investments and are advised to perform their own independent due diligence and take into account their own financial situation. If in any doubt about the investment action you should take, you should consult a professional certified financial advisor.


 

The Dow Jones, S&P, Nasdaq and even our very own STI has been breaking all-time highs week after week. Some think that the rally is set to continue well into 2018. But some are calling it tops and a major market crash could be in the making.

But on what basis can we value the overall market?

The Buffett Indicator

Back in 2001, during an interview with Fortune Magazine, the sage of Omaha – Mr Warren Buffett shared an indicator that he...

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The Beginner’s Guide to Understanding The 3 Financial Statements

by: Tam Ging Wien

When read with begin with A...B...C..., when we sing with begin with Do... Re...Me...

That at least how the song lyrics go.

But when we want to understand and assess the financials of a stock, we need to begin with the 3 financial statements, namely:

  • Balance Sheet (or Statement of Financial Position)
  • Income Statement (or Profit/Loss Statement)
  • Cash Flow Statement

All listed companies on SGX are mandated to report their financial performance periodically. Every quarter, companies must report their financial performance using a structured set of 3 financial statements. The financial statements adhere to international accounting standards and the local Singapore reporting standards have very similar formats making it easy for investors to review.

Financial statements are reported based on time periods. By reviewing the 3 financial statements, investors are able to deduce the financial position of the business and how its financials have changed over time.

Flow of...

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Analysis of Cromwell European REIT's Re-Launched IPO

by: Tam Ging Wien


All examples and stocks quoted here in this article and on the ProButterflyTM site are for learning purposes; it does NOT constitute financial advice or a Buy/Sell recommendation. Contents are reflective of personal views and readers are responsible for their own investments and are advised to perform their own independent due diligence and take into account their own financial situation. If in any doubt about the investment action you should take, you should consult a professional certified financial advisor.

This is a follow up post relooking at the revised offer of Cromwell European REIT's Re-Launched IPO. Refer to ProButterflyTM's previous post entitled Analysis of Cromwell European REIT IPO and Cromwell Suspends CEREIT’s IPO.


 

Australian real estate investment manager Cromwell Property Group (Cromwell) has relaunched it Cromwell European REIT IPO in Singapore again. This comes after its initial launch in September which it later...

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A Sneak Peak at the No Signboard IPO

by: Tam Ging Wien


All examples and stocks quoted here in this article and on the ProButterflyTM site are for learning purposes; it does NOT constitute financial advice or a Buy/Sell recommendation. Contents are reflective of personal views and readers are responsible for their own investments and are advised to perform their own independent due diligence and take into account their own financial situation. If in any doubt about the investment action you should take, you should consult a professional certified financial advisor.


Seafood restaurant chain and brewery business group – No Signboard Holdings is seeking a Catalist listing to raise up to $35mil. Based on preliminary information, this could potentially value the company at approximately $130mil.

Based on information available, ProButterfly understands that No Signboard Holdings is currently in the book building exercise phase to place out its shares.

ProButtefly understands that No Signboard Holdings is targeting a...

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The Beginner’s Guide to Understanding ETFs

by: Tam Ging Wien

ETFs are excellent vehicles for investors who want to spend little time monitoring their investments, yet want investment returns aligned with the markets. ETF investing in the long term will outpace inflation and fixed deposits; compounding wealth over the long term.

Introduction to ETFs

Exchange traded funds (ETFs) are investment funds which are listed and traded on a stock exchange. When you buy into an ETF, your contribution is pooled together with other investors and invested according to the ETF’s investment objective. They are similar to unit trusts which is an investment vehicle most people are familiar with. ETFs however differ from unit trusts in that they are traded over an exchange and therefore can be bought and sold quickly throughout the day while the market is open.

ETFs as its name suggest is fund that holds underlying assets such as stocks, commodities, bonds or a combination of their respective derivatives. The ownership of these underlying...

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Analysis of Keppel-KBS US REIT IPO

by: Tam Ging Wien


All examples and stocks quoted here in this article and on the ProButterflyTM site are for learning purposes; it does NOT constitute financial advice or a Buy/Sell recommendation. Contents are reflective of personal views and readers are responsible for their own investments and are advised to perform their own independent due diligence and take into account their own financial situation. If in any doubt about the investment action you should take, you should consult a professional certified financial advisor.

[Update 2017-11-07]: A sharp reader pointed out that the peer comparison table against Manulife US REIT did not take into account the ex-rights price adjustment as well as the most recent acquisition of "10 Exchange Place" in New Jersey.

In order to have an accurate DPU and yield calculations, we will need to rely on the next full quarter contribution from the acquisition and ex-rights price adjustment. At this moment, as those figures are not...

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Has the Time Come to Invest in ComfortDelGro?

by: Tam Ging Wien


All examples and stocks quoted here in this article and on the ProButterflyTM site are for learning purposes; it does NOT constitute financial advice or a Buy/Sell recommendation. Contents are reflective of personal views and readers are responsible for their own investments and are advised to perform their own independent due diligence and take into account their own financial situation. If in any doubt about the investment action you should take, you should consult a professional certified financial advisor.


The bad news surrounding ComfortDelGro (CDG) needs no introduction, instead of explaining it, here are links to the relevant publications:

The...

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A Closer Look at M1’s Q3-2017 Results and How It Stacks Up Against Its Peers

by: Tam Ging Wien


All examples and stocks quoted here in this article and on the ProButterflyTM site are for learning purposes; it does NOT constitute financial advice or a Buy/Sell recommendation. Contents are reflective of personal views and readers are responsible for their own investments and are advised to perform their own independent due diligence and take into their own financial situation. If in any doubt about the investment action you should take, you should consult a professional certified financial advisor.


M1 Ltd released its Q3-2017 results yesterday night after market hours and reported a slightly better revenue of $251.6mil, up 1% compared to the same quarter last year. Despite the increase in revenue, the net profit was down 4.8% to $32.7mil compared to the same quarter last year.

According to M1’s release, its “service revenue increased 4.9% year-on-year to S$206.7 million” and this was “mainly driven by higher postpaid and fixed services...

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Comparison Between Singapore Listed REIT ETFs and Lion-Phillip S-REIT ETF IPO

by: Tam Ging Wien


All examples and stocks quoted here in this article and on the ProButterflyTM site are for learning purposes; it does NOT constitute financial advice or a Buy/Sell recommendation. Contents are reflective of personal views and readers are responsible for their own investments and are advised to perform their own independent due diligence and take into their own financial situation. If in any doubt about the investment action you should take, you should consult a professional certified financial advisor.


Asset management company Lion Global Investors Ltd has joined forces with Phillip Capital to launch Lion-Phillip S-REIT ETF; an SGD-denominated ETF that will track the performance of a basket of Singapore listed REITs. The ETF will track the Morningstar Singapore REIT Yield Focus Index.

This joins two other Singapore-listed REIT ETFs namely the Phillip SGX APAC Dividend Leaders REIT ETF, and Nikko AM-Straits Trading Asia ex Japan REIT ETF. Both these REIT ETFs...

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What May Have Triggered the Sell-off in SIA Engineering?

by: Tam Ging Wien

- A glimpse into a what a stock market crisis may look like?


All examples and stocks quoted here in this article and on the ProButterflyTM site are for learning purposes; it does NOT constitute financial advice or a Buy/Sell recommendation. Contents are reflective of personal views and readers are responsible for their own investments and are advised to perform their own independent due diligence and take into their own financial situation. If in any doubt about the investment action you should take, you should consult a professional certified financial advisor.


On 04-Oct-2017, SIA Engineering (SIAEng) fell to a low of $3.15 before rebounded to close at $3.21. Just recently in Jun-2017, it was trading at a high of $4.21. Its historical low was during the Global Financial Crisis in 2009 when it traded at $1.58. There was more than 10mil shares traded that day.

In an effort to defend its share price, SIAEng conducted its largest single-day share buyback in a...

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