Shares Trading - Tips, Insider News, Market News, etc

[INNOVATE]

Angelight:

Hi, anyone knows why OCBC share price is dropping so fast the past few days?

1 Overall mrkt sentiment is poor. Chief amongst the reasons is mid-east political crisis which affects the emerging mrkt. Instituition traders use this as the main reason to transfer funds in our region back home.

2. Poor year-end results.

[Angelight]

Thanks, INNOVATE for replying. I have actually wanted to buy OCBC shares, then realised the price has been dipping. Not sure if it’s gonna drop further, so still hesistate to buy. What’s your take, INNOVATE?

[INNOVATE]

Angelight:

Thanks, INNOVATE for replying. I have actually wanted to buy OCBC shares, then realised the price has been dipping. Not sure if it's gonna drop further, so still hesistate to buy. What's your take, INNOVATE?

From your post, you are inclined towards investing than trading abeit a contrarian one.

I shall answer yr question strictly on valuation terms and how to approach a trade on this stock or any other which you fancy. Do not wish to provide any personal insight as my view is totally unimportant. Is the market that really matters-supply and demand.

Stock tracts closely the sti index - $9.30cd

Valuation wise, its prettty decent with price to earnings growth of approx 0.93x base on 2010 results. Do not wish to use a 3-yr EPS compound annnual growth rate as over the last few yrs, it didnt vary much.

Going forward, company is optimistic of its prospect this year. Using the above financial ratios, current stock price doesnt really present a fantastic bargain as there are better bargains out there without taking on additional risk. Current market situation is pricing in the prospect of oil disruption and all kinds of inflation risks in our region.

Position Approach- Establish a trading/investing line ie 5000 shares. Buy
1 x 5 different occassions to get an average price. Its
unwise to buy at one go. Must ensure the general
market stabilises before each foray.

As a retail player, should acquire the skills to be a good stock picker. Always let the price comes to you, pick one with positive guidance and not extensively covered by instituitions.

[Trapwithin]

INNOVATE:

Will be making a first buy at around sti 2950 level.

Hit 2965 - lowest on the 24 Feb .... now at 3025 .....
Has anyone move in?

[verykiasu2010]

Trapwithin:

INNOVATE:

Will be making a first buy at around sti 2950 level.

Hit 2965 - lowest on the 24 Feb .... now at 3025 .....
Has anyone move in?

how will the market react to the Hutchison Trust ?

[Trapwithin]

verykiasu2010:

Trapwithin:

[quote=\"INNOVATE\"]Will be making a first buy at around sti 2950 level.

Hit 2965 - lowest on the 24 Feb .... now at 3025 .....
Has anyone move in?

how will the market react to the Hutchison Trust ?[/quote]Seems positive. Yield at 7-8% .. not too bad.

[verykiasu2010]

7% -8% is considered good yield ?


how about other biz trust currently traded on SGX ?

[Trapwithin]

verykiasu2010:

7% -8% is considered good yield ?


how about other biz trust currently traded on SGX ?

I am comparing with the REITs and Shipping Trust. General 6-10% divident yield. So to me 7-8% quite good liao

[INNOVATE]

Trapwithin:

verykiasu2010:

7% -8% is considered good yield ?


how about other biz trust currently traded on SGX ?

I am comparing with the REITs and Shipping Trust. General 6-10% divident yield. So to me 7-8% quite good liao

Your investment strategy can further be enhanced by picking a growth stock with dividend yield of aroung 3-4% and prospect of much higher capital gain.

That way your money is working harder.

[Trapwithin]

INNOVATE:

Trapwithin:

[quote=\"verykiasu2010\"]7% -8% is considered good yield ?


how about other biz trust currently traded on SGX ?

I am comparing with the REITs and Shipping Trust. General 6-10% divident yield. So to me 7-8% quite good liao

Your investment strategy can further be enhanced by picking a growth stock with dividend yield of aroung 3-4% and prospect of much higher capital gain.

That way your money is working harder.[/quote]Thanks for the advise. :celebrate: