52-week low list Trading Thee Company

One of my personal favourite screens is the 52-week low list. This screen, which is usually performed weekly, will give me a list of companies that are trading at their 12-month low.

Why do I like this screen? As a value investor, I like to search for companies that are trading at good value. The 52-week low could be a good place to start, since these companies might have been ignore by the investment community for various reasons. Some deserve to be.

The first on the list is Sarine Technologies Ltd. (SGX: U77).

Sarine Technologies is an Israel-based company engaged in developing, manufacturing, marketing and selling precision technology products for processing of diamonds and gemstones. Its products provide solutions for every stage of rough diamond manufacturing process.

In the last 12 months, Sarine’s share price has declined by about 15%. Though there are many reasons that might have caused the decline in share price, I think that its first quarter result for 2017 might have been the main culprit. In its result, Sarine reported a growth in revenue of 5%, yet operating profit was down 14% year-on-year due to the higher expense to support growth and new services, and foreign exchange changes.

The next company on the list is Raffles Medical Group Ltd (SGX: BSL)

As a quick introduction, Raffles Medical runs hospital and healthcare services in Singapore. It also has a network of clinics in five countries and thirteen cities. Also, it has 2 hospitals under development in China, which is projected to be completed between 2018 and 2019.

For the latest quarterly results, revenue came in at S$120.1 million, up 1% year-on-year whilst net profit rose 0.5% year-on-year to S$16.8 million. Earnings per share remained unchanged as the same period last year at 0.96 cents. The company also announced an interim dividend of 0.5 cents per share.

The last company on our list is StarHub Ltd  (SGX: CC3).

StarHub Ltd is one of the three companies in the telecommunication industry, behind Singapore Telecommunications Limited (SGX: ZY4) and ahead of M1 Ltd (SGX: B2F). It has five business segments, namely, Mobile, Pay TV, Broadband, Fixed Network Services and Handset sales.

Starhub is one of the worst performing companies in the last 12 months with its share price coming down by about 31% during the period. The decline is comparable to that of M1, its smaller peer in the telecom industry.

SOURCE : www.fool.sg

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Misinterpretation About the Stock Market

People who are new to investing commonly make assumptions about the stock markets based on hearsay or “advice” passed down by their elders. Many of these misconceptions may also arise from “scary” anecdotal stories from a friend or family member. This can lead to new investors staying away from stocks due to unwarranted fears.

In light of this, I have decided that now might be a good time to share nine commolon misconceptions that new investors may have about the stock market. I have split this into a three-part series.

Misconception 1: The stock market is like gambling

This is probably one of the greatest myths of the stock market. Unfortunately, it may also be one of the most widely believed misconceptions. The stock market may be unpredictable in the short term. But in the longer term, unlike gambling, it is easy to gauge the overall direction of the stock market, and that is – up.

Misconception 2: I need to be a mathematic genius to invest in the stock market

“Investing is not a game where the guy with the 160 IQ beats the guy with the 130 IQ.” – Warren Buffett

Sometimes new investors may be fooled (with a small “f”) into thinking that the stock market is only for people who are champions at mathematics. This can be due to the unending amount of numbers that we need to take note of or the complicated financial statements that accompany annual reports.

Misconception 3: I need a lot of money to invest in the stock market

Another great myth about the stock market is that only the rich can invest in it. In reality, the stock market is one of the best ways to invest your money if you only have a limited capital. This is because the frictional cost of investing in stocks and the required paid up capital is low compared to other assets.

Soucrce : fool.sg

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The Interest Rate That Impacts Stocks Market

Interest rates can have a huge impact on the price that investors are willing to pay for different asset classes. For example, if interest rates are high, investors tend to favor lower risk, high yield investments like bonds over stocks and vice versa.

"What's happening wit interest Rate?" "Where's The Prime headed?" "Is the Fed announcing a rate hike next month?"

Interest rates, the cost someone pays for the use of someone else's money, tend to obsess the investment community and the financial media – and with good reason. When (FOMC) sets the target for the Federal funds rate at which banks borrow from and lend to each other, it has a ripple effect across the entire U.S. economy, not to mention the U.S. stock market. And, while it usually takes at least 12 months for any increase or decrease in interest rates to be felt in a widespread economic way, the market's response to a change (or the news of a change) is often more immediate.

The interest rate that moves markets is the federal funds rate. Also known as the overnight rate this is the cost that depository institutions are charged for borrowing money from faderal reserve banks – an inter-bank loan rate so to speak.

The federal funds rate is the way the Fed attempts to control inflation (an increase in prices, caused by too much money chasing too few goods: demand outstripping supply). Basically, by increasing the federal funds rate, the Fed attempts to shrink the supply of money available for purchasing or doing things, by making money more expensive to obtain. Conversely, when it decreases the federal funds rate, the Fed is increasing the money supply and, by making it cheaper to borrow, encouraging spending. Other countries' central bank do the same thing for the same reason.

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