Singapore stocks: Once bitten, twice shy

[ghchua]

Hi weijian,

I think we cannot just look at TTTI performance and just applied it to everyone out there. To him, performance is everything. We also do not know what kind of risk he is taking, and these cannot be measured only by volatility or performance benchmark with respect to the indexes. Some positions that he took, like shorting, options etc are inherently riskier strategies compared to just pure buy and hold. Also, he is spending much time on the US markets, which is essentially operating in a different time zone as compared to the local market. Do one wish to spend some of your sleeping hours on it? For me personally, the answer is definitely no.

Maybe one should look at other aspects than just returns when spending time doing investments. The non monetary benefits are also important. For example, it keeps the brain active.

[weijian]

Maybe one should look at other aspects than just returns when spending time doing investments. The non monetary benefits are also important. For example, it keeps the brain active.

hi ghchua,

You hit the nail on the brain. I am not encouraging mediocracy here but I believe there are many paths to excellence, although the principles to do so, remains unchanged.

For one, TTTI has categorically stated that keyboard warriors (probably looking at myself) who spends "some" time to do research like read financial/analyst/annual reports or attend AGMs, are probably not doing enough. While my objectives are very different from TTTI, but I have healthy respect because there is much to learn from him.

All business founders surely lost sleep over the decades building up their businesses - whether is it worrying about it or physically working. There were no medical/sick/childcare leave too. So if one is comfortable with a 9-5 timing (and at least 1 off day, preferably a day that coincides with our child's off school day), then one gets "9-5 timing" returns, isn't it? Of course, nothing wrong with that too.

Just like we have to decide between buying a P/E=5 stock with poor quality, OR P/E=25 stock with high quality. We have to choose our poison. This principle is timeless.

[weijian]

In an alternate universe where SGX has listing avenues (non SPAC) that allow non-profitable companies to list on the local Spore bourse, these huge drops would be attributed to CG lapses on the SGX/MAS.

In our current universe where these unprofitable firms didn't list on the SGX (whether primary or secondary or dual listing), it is due to its SGX's unattractiveness and its unattractiveness ultimately attributed to CG lapses on the SGX/MAS.

Singapore ride-hailing firm Ryde’s shares plunge over 80% on New York Stock Exchange

“It appears some large traders might have started building positions around Sep 3, driving up both volume and prices. This likely caught the attention of other investors who jumped in,” said Prof Charoenwong.

“Additionally, the stock has faced heavy sell-offs after the company’s recent secondary listing on the Frankfurt and Stuttgart stock exchanges in June, which may have caused a loss of investor confidence,” he said.

He noted that such price patterns are also “fairly rampant”. For example, Grab also saw volatility following its special purpose acquisition company (Spac) merger. It has fallen some 70 per cent since its Nasdaq listing and has failed to recover so far.

In May, Singapore-based telehealth provider Mobile-health Network Solutions plunged 85 per cent after the stock surged more than 580 per cent in its first weeks of trading in April. The stock has also not recovered.

https://www.businesstimes.com.sg/compani...k-exchange

[weijian]

The SGX chairman (of past and present) has always drawn a million dollar salary. Finally, the current one Chairman Koh has the decency to write his own letter this year. Let's hope it continues. Chairman Koh's letter has asked for some sacred cows to be slayed (below are excerpts from the annual report in italics):

Only when we support our own stock market, can we attract foreign companies to list here. After all, if we do not support our own market, why should we expect others to do so?

Winning and losing are par for the course in every marketplace, whether it is listed shares, over-the-counter derivatives or cryptocurrencies.

But a spirit of caveat emptor must apply across the board, with investors actively owning their investment decisions and outcomes in domestic or foreign shores

Will this plead be worth the million dollars that SGX shareholders pay him annually?

As pillar of Singapore financial ecosystem, SGX needs help to build investor demand: chairman

It was the first time in 14 years that the chairman had issued a separate letter from the chief executive officer in SGX’s annual report.

https://www.businesstimes.com.sg/compani...d-chairman

[ksir]

I just cant help to love this kind of news.
It just shows the high pessimism (or perhaps desperation) of the market participants.
Fishing or hunting in such market is great!
Values are there, not even too hard to dig.
It is also a good place for long term business owners to buyout their companies in cheap (many delisting over the years proved this).

Singapore market is (at least to me) a fertile hunting ground for value investors!
In recent months HK seems to catch up as well haha.
I have hard times choosing which good companies with really reasonable valuation to pick up.
I guess this is another moment of child in a candy store.

👆 Interesting that it was just 3 years ago when extreme pessimism was in abundance and now STI has hit 17 years high! Wow!  😁
The Straits Times Index (STI) was up 0.38 per cent, or 13.78 points, at 3,638.54, which was a 17-year high.

https://www.straitstimes.com/business/co...ear%20high.

But then, some people would say, it's rising tides lifting all boats, yes of course, but it just means that SEA markets were dirt cheap.
Even now, it's not expensive. 
The ponds still have tons of fat fishes although more fishermen (competitors) started joining in. 
Those with local knowledge (the cliché: circle of competence, likely from following the business for years), should still have the advantages.

But sooner or later, when the optimism is extreme, I woudn't mind to let go of this pond!

[weijian]

Hi ksir,

I think it is cold comfort other foreign indexes are hitting ATH, while STI is on its 17-year high. Of course, we can compare with HSI for more comfort.

I agree that there are fishes lying around but since the fishes are generally hiding in "more murky waters", I am not exactly sure whether it is fat or not.

Between "cheap to less cheap" VS "not cheap to expensive", it is still very clear to me which has a higher probability to give happier endings with less nightmares (for the record, it is the latter). But we are definitely all cheerleaders for the "cheap" turning "not cheap"!