7 Ways to Improve Your Finances in 2011

2011 is upon us. In a couple of hours, fireworks will light the sky and parties will last till the wee hours of the morning. In the spirit of making the coming year a good one, here's a list of things that one can do to financially improve oneself.

1) Set a Budget for the Month

At the start of every month, withdraw your "allowance" and stash it at home, setting yourself a spending limit per day. Cater an additional sum for transport, fuel and parking coupons if you drive, handphone bills, and whatever monthly bills you have. Personally, I tend to top up a $100 into my MRT (that's our train here for non-local readers) card each month regardless whether I finish up the previous $100 or not. This ensures that I'll always have enough to travel should I run out of actual cash.

Also, try to set aside an emergency amount per month too, which acts as a buffer for unforeseen circumstances. At the end of each month, any leftovers can either be used to treat yourself and/or loved ones to something or to add into your 6- month savings account.

2) Pay in Cash Where Possible

Studies have shown that people are less likely to spend when they use cash versus credit cards because they feel the pinch when handing over their cash. This allows a higher chance that we buy only the things we really need or want and not spend blatantly. Also, spending by cash allows you to see how much you have left thereby allowing you to figure out how to stretch your cash till the end of the month.

3) Save for Big Things

We all have our wants. A simple way to fulfill this is to set aside a monthly amount that is catered to this. Therefore, when the item of our desire presents itself, be it a new wallet or a branded bag, we'll have the cash ready for it.

4) Make Use of Promotions. Use Loyalty Cards and Discount Coupons

Make use of specials and promotions to stock up on things you need monthly. This includes facial products, nail polish and whatever knickknacks which helps reduce your spending in the long run as you'll be saving on things you need. Note the word "need".

Points gained from loyalty cards will also help offset expenses. Discount coupons, normally found in the mail though intended to make one spend, is most welcomed if they refer to things you would normally spend on anyway. 

However, that said, beware of the trap of buying things that you do not need or buying just because the item is on discount. You'll end up broke much quicker. A discipline approach is necessary.

5) Delay Spending

Try to put off buying an item for a week or two. This allows you to think about the purchase more preventing impulse buying. 

6) Choose the Cheaper Alternatives

Spending time with friends and/or family needn't be a wallet breaker. Instead of spending time at the neighbourhood Starbucks, a hang out at the coffeeshop or a cheaper cafe may prove just as or even more satisfying. Also, you could decide to hang out at free public spots such as the beaches and parks, where the money saved could be put to better use. 

For drivers, Orchard and town area carparks differ in charges. A bit of research into the charges at each venue will help you plan where to park thereby reducing unnecessary spending.

7) Set Up a Savings Plan

I cannot fully emphasize the importance of saving. As hard as it may seem to do, having a stash of cash lying somewhere is crucial especially in times of emergency. 

One painless way is to set up an automatic deduction that transfers a portion of your pay into a savings account. By doing this every month, you'll realize you're not missing the cash and sooner or later, you'd have amassed a substantial amount. You'll feel most achieved when that happens I guarantee.

To your 2011.

Cheers,

~K

Singtel Rebounds

In my last post on Singtel, I mentioned that prices look set for a rebound and I was very tempted to buy in at that price of $3.04 with the 200 day moving average supporting more selling. (See Singtel Attractive? for discussion.) True enough, Singtel bottomed then and have broke through the $3.08 resistance pointed out. See chart below for a clearer picture.

With MACD providing a buy signal and Stochastics crossing the oversold region, prices may rebound even higher to find support at its 100dma where it was formerly before going XD. However, with what seems like a wedge forming, price must not to drop back to close below $3.09 to avoid being caught in this which may eventually send prices even lower. Though it seems unlikely to happen with the bottoming of the RSI and a pick up of volume, MFI and ADX has yet to turn up convincingly. Should prices close above $3.09, it is likely that prices will continue trending upwards. 

Again with PE being less expensive than its peers at 12.6, Singtel could be more attractive as a buy than the other two especially with a historical PE average of 13.4. However, the higher yields offered by Starhub at 7.2% and M1 at 5.7% compared to Singtel's low 4.6%, may delay the realization of its value.

Still waiting for a 5-6% yield and not vested,

~K

Starhub Breakout in the Making?

Since my last post on Starhub (see Two Extremes: Starhub - Falling Star, Singpost - Blasting Off! for discussion), thankfully, what could have been the start of a steeper downtrend didn't materialize and prices bounced back to into its channel. The weekly chart below provides a clearer picture.

As seen above, Starhub has reached the upper regions of the channel and may well be poised to break out. In the daily chart below, we see the breakout occuring yesterday with price closing higher than the channel lines.

With the MACD giving a buy signal and turning up, a double bottoming of the RSI on the 17th and 22nd of Dec which is now rising, together with the OBV and Stochastics, it may jolly well be the opportunity to enter this stock. However, as ADX doesn't show a strong trend and with MFI yet to turn up, if this is nothing more than a rebound, a drop back to $2.63 may see the price back in the channel with the 100 day moving average providing support. Only time will tell.

That said, the announcement this morning in Today papers of Starhub's multi-year, multi-million dollar deal sealed to service Marina Bay Sands, may be the catalyst for stock prices to rise.

Cheers,

~K

Time to Enter Raffles Medical Group?

Founded in 1976, Raffles Medical Group has grown to be Singapore's largest private group practice operating a network of family medicine clinics, a tertiary care private hospital, insurance services and a consumer healthcare division serving over 1 million patients and 5,500 corporate clients today. (For a recent fundamental analysis of RMG, refer to Singapore Investor's blog post entitled Raffles Medical Group.)

Since making the triple bottom in Jan - Feb, Raffles Medical Group has been on an uptrend. From the chart below, it is clear that prices are moving in a channel and that prices are currently at the bottom of it. As the trend is your friend, this may provide a good buying opportunity for traders who are looking to get into this stock and eager to ride the major trend. 

The weekly chart below shows a clearer picture of this uptrending channel.

Turning to the chart below, current support seems to be the 14 day moving average at $2.36. Indicatorwise, Stochastics, MACD, OBV and MFI all seem to be turning up. Positive DI of the ADX looks set to cut the negative DI indicating buying momentum. Parabolic supports this. These could indicate that prices are going to move up further in attempt to challenge resistance at $2.44 before taking on its 52-week high at $2.52. Trend strength however is lacking. RSI too, seems to be making a lower high which may indicate a pullback in price in the short term to the 14dma. A dip below the 14dma, could see prices moving to its previous support at $2.32, and $2.30 thereafter. A break below $2.30 could signal the end of its uptrend and could send prices down to its next support at $2.24. A stop loss would prove most useful due to the uncertainty.

My take: Personally, with a P/E of 33, yield of only 1.4% and price to book ratio of 4.6, despite a goal of holding the stock for the long term, the stock is too expensive. Shall wait for a crash to bring prices down before investing in it. Will use the time to save up for that chance when it presents itself.

In the short term, prices may pull back to its 14dma which would provide a favourable entry point. Also, the mini-trend starting on the 1st of Dec sees the stock making higher lows, and as the market sentiment seems to be getting more bullish, I expect prices to head higher soon.

Not vested,

~K

CapitaMall REIT Making A Double Bottom

In the last chart on the 27th of Nov, I mentioned that CapitaMall was downtrending. Also to quote the entire paragraph for refresher sake, I posted that "the past three days have seen price seemingly stabilizing at $1.86 support, in hopes of rebounding upwards. A break below this may see price retreating to the next support at $1.81. To break out of the downtrend, price must head above $1.93. Only then can we expect price to head higher." See CapitaMall REIT in Trouble for further discussion.

On the 30th of Nov, prices dipped to $1.82 but broke out of its downtrend on the 2nd of Dec, closing at $1.96. After stabilizing for the next 2 weeks at $1.94 thereabouts, prices dipped back down to $1.85 on lower volume than the last dip to $1.82 suggesting that prices had reached a bottom. 

Today's charts indicate that a double bottom may have indeed been formed and prices are set to head upwards. Furthermore, indicators are all favourable. MACD and Stochastics have given a buy signal. RSI and OBV looks to be heading higher while MFI seems to have bottomed as well. This increases the odds of prices rising. Support seems to be at the 14 day moving average at $1.90. Resistance remains at $1.97. The crossing of the 14dma with the 200dma should send prices higher but is not in sight at the moment. 

Again with a yield of only 4.85% and price to book ratio of 1.28, I'm not interested in the stock however, traders interested in capital gains may want to consider this. 

Not vested.

~K

CapitaMall started at Overweight by HSBC, target $2.22
Friday, 10 December 2010

© 2010 - The Edge Singapore

Christmas Time, Family Time, Lovely Time

"The best Christmas of all is the presence of a happy family all wrapped up with one another."

~ Anonymous

Compliments of the season everybody!

I've been having a ball of a time this Christmas. Loving every second of it. Relatives that I only see once a year, relatives that only come back to Singapore once a year, relatives that I'm meeting for the first time as they've never been back to Singapore since they've left. The feel of family warmth is such a wonderful treat. Furthermore, it's one of those few times the Eurasian dishes come out in full force and when there's so many bottles of wine to choose from at each house. Red, white, sparkling, dessert, ice. One of God's many gifts to mankind. Make that five.

And the best part? It ain't over yet. 12 days of Christmas remember? So there's another week to enjoy the festivities, the atmosphere and the food with family, friends and cherished ones. And smack right in-between this season is another celebration. You guessed it. New Year - which means more food and goodies (I'm obviously referring to the wine). 

It's a beautiful month. 

The prelude of cleaning and choring round the house, the running round for Christmas presents, the disagreements on how the house is to be decorated, the last minute ingredients amassing to serve up the Christmas feast, on hindsight, all play a part in enhancing the treasure of this season. Kinda like bonding during Basic Military Training (BMT). And when the midnight church bells sound announcing the arrival of Christmas, the recognition that it's an effort well spent for a beautiful time dawns. The price of that? Priceless. Thank you Mastercard for that slogan.

So that said, I'll gladly agree with the sentiment that goes to the jolly tune entitled, "It's the Most Wonderful Time of the Year" by Andy Williams back in 1963. A recommended listen if you haven't before.

It's a beautiful Christmas.

Wishing you all a fantastic Christmas season.

Cheers,

~K

How To Feel Richer - Take Time To Be Grateful For What We Have

"Christmas sale!"

"50% discount on selected items"

"What's on sale?" 

"How I wish that was on sale."

"Is it on sale?"

"Why can't it be on sale?"

"When is it ever going to be on sale?"

"OH LOOK! It's on SALE!"

What seems to be the festive greeting these days reminds me of a short story I wrote a long while back one day when I was bored on how consumerism has engulfed Christmas and transformed its intent.

Today however, while browsing through my email, I came across one with a deeper message on being grateful for what we have and to stop counting what we don't - a thought that left me pondering which reminded me of that story I wrote which then led to this post. Talk about being tangentially linked.

Taking time to be grateful for what we have. How many of us actually spend time doing that? It seems that we're too busy chasing after things that we want, only to enjoy it for a short while when we acquire the aim before chasing after the next. To achieve happiness we say. I get caught in the same trap too. But perhaps it would be easier to achieve happiness if we look back and see how far we've come, what we have and what we've achieved, what we've been blessed with - our state of being, our health, our family, friends etc. - and to take time to congratulate ourselves and enjoy their merits. It's a quick way to feel rich internally I feel, which is more important than simply concentrating on our exterior.

So I'm thankful for that email. A Christmas reminder that there's more to life than material pleasures. 

I feel like a millionaire already. Now let me check my wallet...

When's that sale again?

~K

P.S. Merry Christmas eve everyone. =)

Quick Post: Breadtalk Still in Uptrend

Quick post:

As readers would know, I've been following Breadtalk and have vested interest in this company. 

In my last post, I mentioned that prices seem to be in an uptrend channel. See Breadtalk Dips But What Next? for further discussion.

The last time I mentioned that a buying opportunity may be presenting itself (see Breadtalk Buying Opportunity Soon), prices dipped to the bottom of the uptrending channel as well at $0.60. Today a look at the chart without all the other indicators shows a doji forming very near the base of the channel again.

A look at the weekly chart shows this uptrend very clearly with the 14 day moving average supporting the climb. 

This could be another buying opportunity for anyone looking to be invested before price head higher.

That's it for now on Breadtalk.

What did I tell ya? Quick post.

Cheers,

~K

Comfort Delgro's Climb To Resistance Looking A Tad Weak

Good evening everyone,

Today the world's second largest transport company and Asia's largest, Comfort Delgro, price movement caught my eye.

Macro view of the chart without the clutter of the indicators, shows prices are up looking like its trying to overcome resistance at $1.57 with prices closing at its 14 day moving average at $1.54 acting as support. The last time it encountered this resistance on the 17th of Nov, the bears won, dropping prices drastically to $1.45. However, we see that the bulls have been driving the price back up. However take note the divergence between volume and price movement. Danger sign no. 1. This was the same issue with Ascott REIT which I pointed out in my previous posts - Ascott REIT Making A Weak Leap and Ascott's Bounce Unsuccessful - which was proven correct. Does it always work this way? No. But it's a reason to be cautious.

Turning our attention to the indicators of the chart, we see Parabolic indicating buying momentum which is true since price has been ascending. Also, 50dma looks like it intends to form a golden cross  with the 200dma, which is a good thing but it doesn't look like it's going to cross by the end of this week. Stochastics however, seemed to have turned up looking like it'll cross and give a buy signal tomorrow. It has also been forming higher lows, a good sign. That's good news folks.

Next, the bad news. RSI, MACD, OBV and MFI all look to be heading down. Furthermore, despite the positive cut from Stochastics, MACD is cutting negatively. The bars are also inverting into negative territory. MFI looks to be forming lower lows, which is also a divergence from the price uptrend. Another danger sign. Lastly ADX shows selling indicator climbing a possible sign that selling is strengthening. The bright side to this is that the trend is weak so far.

My take: From the looks of it, my opinion is that prices may drop in the near term possibly to its next support at $1.52 - $1.51. However, as the market sentiment seems to be getting more bullish, my guess is that it would only be a matter of time before they push through the $1.57 resistance. However, though unlikely, a break below this could send prices to $1.49 and then to $1.45 if the bulls don't show up by then. Personally with a yield of only 3.4%, I wouldn't think of investing into this for income just yet. I like the company but I'm patiently waiting for another crash before being vested. I'm in no hurry. The waiting game allows me to build up my cash till then.

Not vested (like you didn't figure that out by now haha)

Cheers,

~K

Singtel Attractive?

Well it's the wee wee hours of the morning, 4.10am to be exact. *yawnz* I've just finished watching Day 2 of the Roger Federer vs Rafael Nadal exhibition match in bid to raise money for charity in Africa. Enjoyable match I must say. Light-hearted yet well played with some amazing shots and teases. Well done to both athletes. 

Anyway I'll make this post quick before I head for a shower and then to bed. Late night showers aren't good so says my mother but hey it's not late when it's so early in the morning huh? =X

So on to the today's observations.

I've been eyeing Singtel for a long time now for diversification as well as an income stock for its steady dividends and low payout ratio, not to mention its relatively low gearing compared to its closest rival Starhub (which I am invested in). Not going to do any financial analysis here but suffice to say that it's a rather stable company. For a more detailed analysis on Singapore telcos, I recommend reading these two post from Investment Moats blog entitled Yield Watch: Comparing Telecom Stocks Around The World and A Guide To Dividend Investing In Singapore Telecom Stocks. They're gems.

From the chart, price closed at its 200 day moving average again today at $3.04 for the second day in a row. Also, candlestick shows a doji which may indicate a reversal at hand. Furthermore, on both days, the lower wick dipped only one cent less to $3.03 perhaps an indication of the demand of the shares when prices drop lower. 

But if we scrutinize once more, prices encountered their first big resistance on 9th of Nov at $3.31, driving prices down to their 100dma. The subseqent rebound saw prices encounter resistance on 9th of Dec at $3.17 before dropping lower further. Could this then be a start of a downtrend for Singtel? Perhaps but we have to take into consideration that Singtel went XD on the 21st of Dec. As such it is only natural for share prices to drop. 

It is expected that share prices drop by the amount of dividends paid per share. In this case, Singtel is paying out a 6c as dividends. Therefore, it is reasonable for the share price to take a trip down to the 200dma we see today. If the stock had not gone XD, it is probable that the 100dma would have held as was the case before and may most likely have made a double bottom. 

That said, the 14dma looks set to form a dead cross with the 100dma which may cause some people to sell when that happens. However, normally I don't really bother much about the 100dma. As a long term investor I prefer looking at the 200dma. Now if that crosses, then I might consider selling. Personal rule, don't worry about it. =)

Turning to indicators, Parabolic shows selling in process. However Bollinger bands show that prices are at the bottom of the range. Stochastics is in oversold regions with the RSI bordering it. MACD is in negative territory with no indication of crossing or turning up anytime soon. OBV seems to have bottomed and is now plateauing out while MFI has reached its previous bottom with no indication of smoothing out just yet. However, OBV and MFI made a lower high which is not a good thing. On the bright side though, ADX shows that selling strength is rather weak.

My take: Well, I am quite tempted to buy at current prices but that's just my emotions talking. This is because there could be a rebound around the corner when Stochastics cross. Furthermore, the current price has been tested twice before making this the third time prices are testing this support. However, it's not possible to tell what price it will head up to when the rebound does occur. Resistance lies at about $3.08 and then at $3.15. But as I have my own rules, and though I like dividends, I'm waiting for yield to increase to at least 5 - 6%. Keeping up with inflation you see heh. For now I'm sitting this one out. But for anyone who's keen or happy with the current 4.6%, you can try nibbling if you believe the 200dma will hold.

Not vested. Goodnight everyone or should I say, good morning =)

~K

I Thinketh! - The Power of Words

Some people drift through their entire lives. They do it one day at a time, one week at a time, one month at a time. It happens so gradually they are unaware of how their lives are slipping away until it's too late. 

~ Mary Kay Ash

There are only two ways to live your live. One is as though nothing is a miracle. The other is as though everything is a miracle. 

~ Albert Einstein

Raymond. You gotta love him. Great guy, good heart. But what an idiot. You gotta love him.

So I was watching reruns of Everybody Loves Raymond on a rented DVD from VideoEZ after a long day of spring cleaning (which reminds me, why do they call it spring cleaning when it's like winter in most places that celebrate Christmas?), and in this episode Raymond and Robert's mother, Maria, causes Robert's wedding day to be a disaster despite her good intentions. Fortunately, Raymond dissipates the gloom of the groom, bride and room with a humourous yet touching speech that suddenly all the bad didn't matter anymore...And they lived happily ever after. Or so I hope. Gotta borrow season eight to see what happens next.

However, that speech got me thinking about the power words have on us. Words inspire or demoralize, create or destroy, cause wars or bring peace, forge friendships or make bitter enemies.  It's amazing how simple words which we take for granted and even abuse sometimes have this ability to shape our thoughts and actions for better or for worst. The great speeches of history for example have changed humanity because of these well-strung and well-delivered or spoken words that touched a great many.

And this led me to decide to post four speeches that I love and that I'd love to share with all of you reading.

I Have A Dream

The famous African American civil rights speech given by Martin Luthur King Jr. in 1963 most famous for its line "I have a dream" shall remain in the history books for a long time to come. The first time I listened to the recording of it, it became one of my favourite speeches of all time. I've listened to it three times since. I'm too free, what can I say?

What strikes me is the use of pause, intonation, crescendos, melody, and variation of speed, which when blended with substance charismatic yet influential and deep creates such a heartfelt and inspiring speech that the words reverberates long after the concluding line is over - "Free at last! Free at last! Thank God almighty we are free at last!". Listen to and read the transcript here to feel the energy and magic.

Do Not Work

More recently, famed Teenage Textbook author Adrian Tan gave a speech to the law graduates at the 2008 NTU convocation. Entitled Do Not Work, this speech snowballed into a chain mail of sorts, setting bloggers posting and facebookers facebooking. It seemed that no matter who posted it or where I dug it up on the web, there were always comments - comments from people who were uplifted or touched by it. I'm betting that even some of the grumps and grouches of the web had something good to say about it. I sure did. And I'm a grouch by definition according to my girlfriend. Bah! Humbug!

That said, I wish there was an audio recording of it online (for free of course) though. Would love to listen to that being read. But in any case, you can read the transcript of it here for consolation.

How To Live Before You Die

In 2005, Steve Jobs' convocation speech to the graduates of Stanford University also caught on like wildfire and had people talking about it. It's a beautiful speech. One with beautiful morals similar to the speech given by Adrian Tan. But what's even more beautiful is that you can watch and listen to it live on YouTube. God bless the person who posted it. I've posted the video below for your viewing pleasure.

The Last Lecture - Achieving Your Childhood Dreams

As I saved the best for last, this 1 hour and 16 min video (yes, I also saved the longest for last but don't you just love savouring the best for as long as possible?), is not so much a lecture but rather a prolonged speech in a lecture format (if that makes sense) by Carnegie Mellon University Computer Science Professor Randy Pausch who suffered coincidentally from pancreatic cancer like Steve Jobs previously but unfortunately wasn't as lucky to survive it. But like the convocation speech given by Mr. Jobs, the video is readily online thanks to YouTube. God bless both YouTube and the person who uploaded it.

A real tear jerker, Prof Pausch is a person I admire and his words and lessons I hope to always remember and live by.

In the spirit of Christmas, a toast to you Professor. Rest in peace.

Wishing you all find your meaning in life too and to always have fun doing it.

~K

Ascott's Bounce Unsuccessful

Last Friday, I commented that the spike in the share price of Ascott REIT seemed weak and that "Ascott's leap today did so on a rather small volume. Futhermore, you can notice the volume making lower highs. Such divergence in volume and price movement must be viewed with caution. Don't be an "ass caught" (pun intended) as prices may be sent downwards hereafter." See Ascott Reit Making A Weak Leap for details.

We can see from the chart that prices failed in its attempt to break through resistance at $1.28. However, as noted too that, "support seems to be strong from the collision of the 14day moving average with the 50dma at $1.22.", prices did indeed drop back to support levels ending the day at the predicted price.

But will the support hold?

Unfortunately, in the near term, the charts are rather unclear. There is no obvious trend from the indicators other than a slight dip in the MFI, a seeming plateauing of the OBV and a recent crossover in the Stochastics. These suggest selling and that prices could possibly dip for a couple more days but there is no strong trend from the ADX. MACD however looks set to cross, furthermore into negative territory which could drive prices down further.

However, as today's closing price coincides at the 14 day moving average, this may provide some stability in the price. The 50 dma too, trails at $1.21. As such, we might very well see prices hovering around its current support at $1.21 to $1.23 for the next few days.

That said, my personal opinion from all the clues and options is that I expect prices to drop a bit more before picking up, possibly even breeching $1.21 to its previous support at $1.20. As volume is still weak I doubt there'll be any testing of the $1.28 resistance any time soon.

Not vested,

~K

I Thinketh! - Christmas Spring Cleaning Reflection

Christmas is not a date. It's a state of mind.

~ Mary Ellen Chase

He who has not Christmas in his heart will never find it under a tree.

~ Roy L. Smith

It's one week to Christmas and my back's killing me. I'm stiff all over. I've spent the last week cleaning and cleaning and cleaning, mainly because my family's invited for lunch on the 26th. About 5 hrs a day throwing unwanted junk out, performing the most amazing wipedown of my life and using superhuman strength to do a one-person shifting of my room - cupboards, bookcases and all. The record being working for 8 hrs straight. I'm gifted I tell ya. Not bad for a skinny fella.

As my girlfriend puts it, they should call Christmas, Cleanmas or Cookmas, as that's what we all seem to spend the majority of our days leading up to Christmas doing. It is our day of celebration after all. Of course someone else commented that we could even call Christmas, Drunkmas or Eatmas because that's what we end up doing on the day itself.

On the occassional break from my superheroic cleaning duties however, it's on to more exciting stuff called Christmas shopping. Now as you can imagine, shopping with aching knees from constant kneeling on the floor to wipe down the books and statues in my library is no easy feat. Heck! Being a guy and going Christmas shopping is no easy feat, so you can imagine the amount of superheroic strength and determination this calls for. And I still have yet to buy the presents. My strength faileth me.

As with all people with great destinies, difficulty and strife must be overcome - in order for the hero to get the girl, for Jack to get the hen that lays the golden eggs from the giant up the beanstalk, for the world to keep on turning, for Obama to get his tax cuts passed, yadayadayada. So now looking at it, my room is looking tons better. Oh it's not perfect yet and there's still a mess on my table but I've yet to figure out what I want to do with them. See how difficult life can be for us people with great destinies? We encounter one problem after another.

However as all superhero stories go, there's always an epiphanic triumphant moment and the hero become a better person because of it. I found mine this season. Whether I become a better person however, remains to be seen. But the thought that came to mind and stuck with me as I scrubbed, wiped, lifted and grunted was if we spent so much effort making our exterior look better for Christmas, why don't the majority of us spend at least a fraction of that making our interior look better too?

As someone once said to me, "in order for good things to enter, you must first throw out the bad." Or as paraphrased from a popular story, "how can anything enter when a cup is filled to the brim?"

And with that realization, I think this Christmas is going to be more meaningful this year for me. My superhero triumph and feat.

So said Charles Dickens, "I will honour Christmas in my heart, and try to keep it all the year."

With that I leave you with that popular story I read ages ago entitled "The Cup".

Wishing you and your family a meaningful Christmas and festive season,

~K

The Cup

Once there was a university professor who decided that he wanted to study zen. He travelled to a local monastery. He was shown in to the abbot’s study. The abbot was about to pour himself some tea. The professor stood before the abbot who looked up. The professor explained that he had been studying and teaching in the univeristy for many years and that now he wished to add to his knowledge and learning by studying zen.

The abbot nodded and began to our himself some tea. The professor watched as the teacup filled to the brim and, apparently failing to notice the full cup, the abbot continued to pour. The cup overflowed and still the abbot poured. The professor was reluctant to embarrass the abbot but finally said, "Master, your cup is full and overflowing. It can hold no more tea."

"Yes," said the abbot. "And how do you who come here with your cup so full expect to fill it with the teachings of zen?"

The professor nodded and smiled and bowed before the abbot.

Ascott REIT Making A Weak Leap

In my previous post entitled Two Extremes: Starhub - Falling Star, Singpost - Blasting Off!, I noted the giant movement in prices in both Starhub and Singpost.

Today, Ascott Residence Trust, a subsidiary owned by Temasek Holdings (48.1% stake), is also another stock which made a nice leap upwards, trashing its resistance at $1.23 and headed to its next resistance of $1.28 where it closed. However a closer look at the chart below shows some uncertainty to this move.

Unlike Starhub and Singpost in the previous post, Ascott's leap today did so on a rather small volume. Futhermore, you can notice the volume making lower highs. Such divergence in volume and price movement must be viewed with caution. Don't be an "ass caught" (pun intended) as prices may be sent downwards hereafter.

Does this mean that prices won't head higher? No it does not. Prices may still breech resistance. However as the volume supporting this rise is low, the rise in price may only be temporary which may result in another pull back in the short term. 

On the other hand, support seems to be strong from the collision of the 14day moving average with the 50dma at $1.22. Furthermore with prices making higher lows, prices may rise higher thereafter. But once again, volume shrinking doesn't support this. So caution.

That said, personally with uncertainty lurking, yield at 5.8% and Price to Book at a premium of 1.04, I wouldn't invest at the moment as Ascott REIT is rather unattractive at current prices. 

Not vested.

~K

Two Extremes: Starhub - Falling Star, Singpost - Blasting Off!

Extreme hopes are born of extreme misery.
~ Bertrand Russell

Despite no official announcement or news release, at least not that I could find, today saw extreme opposing movements for two stocks I'm vested in. Starhub, our second largest mobile service provider, fell drastically, while Singpost rocketed upwards.

It seems that the bulls have decided to finally turn up at Singpost leaving Starhub at the mercy of the bears.

For days now, it seemed that both Starhub and Singpost were downtrending and that there were expectations for them to go even lower (Refer to Singpost Rebounding Strong, Singpost - Downtrend to Continue?, and ASSI's Starhub, CapitaMalls Asia and CitySpring for previous discussions).

To get a more recent picture, lets turn to our charts.

Starhub

We can see clearly that Starhub is downtrending. Its two previous support of $2.60 and $2.53 which I was hoping for them to hold have been smashed through. Today's long black candle as well as the negative sentiments of all the indicators doesn't bode well for Starhub. Worse yet, ADX looks like the trend is starting to strengthen. To top this off, it has even broke through it's downtrend channel to form what looks like the beginning of an even steeper fall. Not good. Not good at all. I expect to see more selling come Monday. Next support is at $2.48 and then at $2.41 which happens to also be the 200 day moving average. It is possible that prices will hit the 200dma seeing that the correction has sent a couple of other stocks down to its 200dma, Singpost included.

Personally, I'm not selling my stake as I bought into Starhub to add to my income portfolio (not for capital gains). Also, I entered at the last correction of a price of $2.23. Plus I've collected two dividends which brings my price down to $2.13 so I think I'm pretty safe for now at least. Will be keeping an eye out for any new negative developments that may cause me to rethink holding on to this. 

However those looking to buy into Starhub for dividends, can use this selloff as a chance to get vested into a stock with a relatively high yield. Not just yet though. A word of caution, please wait for evidence of a rebound or stabilization in price before doing so. Catching a falling knife is no fun, no fun at all.

Singpost

Anyone who had followed the charts on the previous days following the start of the correction would have noticed that the prices bounced off the 200dma twice, one at $1.12 and at $1.13, forming a double bottom indicating that there was demand for the stock and likely to push prices back up. Today was that day. 

Singpost broke out of its downtrend today with an amazing leap upwards, crashing through two resistance at $1.19 and $1.20, heading straight to test the next resistance at $1.23 where it closed today. With today's high buying volume and all indicators favouring price heading higher, it most likely will break above this to test the last major resistance at $1.24. 

To anyone who bought the stock at the support prices or for the last couple of days before today's blast off, well done!

Cheers,

~K

The Happiness Index

Being happy doesn't mean everything is perfect. It means you've decided to look beyond the imperfections.

~ Unknown

In the November issue of Pioneer magazine an interesting article entitled “The Happiness Index” caught my attention. This index, specifically known as the Happy Planet Index or HPI, is used to measure, in the words direct from their official website, “the well-being of people in the nations of the world while taking into account their environmental impact”. In layman terms, the index measures the life expectancy, life satisfaction and carbon footprint of each country.

Singapore was ranked 49 out of 143 countries. So we’re slightly more than halfway to happiness it seems. However, what I found surprising was that the top 10 ranked countries were not the major developed countries. Other than Vietnam which was ranked 5^th, the rest were situated around the rather obscure Latin America region.

In order of happiness:

1. Costa Rica

2. Dominican Republic

3. Jamaica

4. Guatemala

5. Vietnam

6. Columbia

7. Cuba

8. El Savador

9. Brazil

10. Honduras

Searching around for the major cities, we find Germany and Switzerland at 51 and 52 respectively, the first two major European countries in the list. Next comes Italy at 69, followed by France at 71, UK at 74 and Japan at 75. Australia lags behind at 102. But the biggest surprise is America, ranked at 114 and last of the major countries. (You can check out the report for the complete list here.)

Now while it should be a reason to celebrate that we’re a lot happier as a nation than these other major cities, what’s obvious from the list is that our neighbours are doing much much better than we are. Check this out.

Rank             Country            HPI Score

5                   Vietnam            66.5

14                 Philippines        59

16                 Indonesia          58.9

19                 Laos                  57.3

20                China                 57.1

33                Malaysia            54

39                Burma               51.2

41                Thailand            50.9

80                Cambodia          42.3

And what did Singapore score? 48.2! 6 points short of Cambodia.

So this list is quite an eye opener to me. For starters, it does not mean the more developed your country is, the happier the citizens are going to be and therefore have a longer life. These other higher ranked countries must be doing something right to achieve this much sought after happiness. But the question is what? Perhaps it’s that they aren’t so GDP-centric. While GDP may stimulate the economy, this shouldn’t be used as the measure of the quality of life in Singapore. As the age old saying goes “money can’t buy happiness”.

Furthermore, after looking deeper into the ranking, it shocked me to realize that for a small country we live in, our carbon footprint scoring a 4.2 is tied with Germany while a country as big as India is only scoring 0.9! Obviously more needs to be done to improve this area. Conservation anyone?

Anyway, in conclusion, perhaps it’s time we aim to be happier people, to start being grateful for what we have, complain less and also more importantly, to conserve more.

Food for thought everyone. Have a good night.

Cheers,

~K

What's Your Brand?

Who has confidence in himself will gain the confidence of others.

~ Leib Lazarow 

At the start of a typical day, a housewife contemplates Maggi and Heinz at the neighbourhood supermarket while another picks up a Dove ignoring the Heads and Shoulders beside it. 

Students after school adjourn to the MacDonald's for lunch by-passing the Long John Silver on their way in deep discussion on which new phone to get, the iPhone by Apple or the Samsung Galaxy. 

Yuppies after dinner, congregate at a pub pondering over a Budweiser, Heineken or Tiger flashing their Mont Blanc or Braun Buffel listening to the live band onstage who swears by the Gibson.

Yes, we all have our favourite brands when it comes to our spending habits. These preferred brands stay in a special place in our brains speeding up the process of decision making. Brands influence us by causing us to have a preconceived notion of familiarity of the item, and thereby a sense of trust and loyalty is built to the brand.

But despite all the exposure, how many of us bother about branding ourselves? 

Personal branding can help in various settings, such as relationship building and career advancement. Some desirable traits include being sincere and genuine, hardworking, well-groomed and kind. These are formed by an individual's self-worth and self-confidence together with their values, perception and attitude.

Here are 5 tips you can use to start positively branding yourself to allow better opportunities to come your way.

1) Be Aware

Increase your self-awareness. Be aware of your strengths and areas of personal growth while being mindful of your weaknesses. Work on both.

2) Be Prepared

When you have a task to complete,  rehearse what you need to do. This prepares you for all the different possibilities that may crop up so that you are ready to handle it with more confidence.

3) Be Optimistic

Don't let tough breaks drag you down. Visualize a positive result and focus on it. 

4) Be Confident

Body language can leave a strong impression. Believe in yourself and channel that confidence into the way you walk, talk, stand and smile.

5) Keep Practising

Constant practice of tips 1 to 4 will help you improve the impression others will get from you and thereby open more doors to where you want to go.

To your branding,

~K

Jim Rogers Speaks on 2011 Outlook

Happy Friday everyone. =)

Couple of videos of Jim Rogers doing an interview with editor-at-large Chrystia Freeland on Reuters on the 7th of Dec as part of the 2011 Reuters Investment Outlook Summit which I found very interesting and wished to share.

Enjoy!
~K


Part 1



Part 2



Part 3



Part 4

Gold Double Top in Sight, Silver Uptrend Intact?

Gold and silver are mingled with dirt, till avarice parted them.

~ Proverb

In a previous post, I talked about the correction of gold & silver being quite short and that the rebound was only a lame one, and that I was expecting a further correction to occur. (See Gold a Better Buy for the Short Term, Silver for the Long Haul for further discussion.) As you can see, the correction did indeed last a little longer but from the charts, the correction is over and the new move is underway.

From the chart below, you can clearly see that a double top looks to be in the making for gold. Resistance is at $139, support at the rising 14dma (also a previous resistance), then 50dma and next at $132, in that order. A break below $130.30 may signal a start of a downtrend.

Silver on the other hand, seems to have a clear uptrend intact with the metal making higher highs and lower lows. However, as gold and silver normally rise and fall in tandem, should gold drop, silver will most likely be taken for the ride so it's important to keep an eye on both precious metals. Silver also may have a more volatile reaction as is characteristic of the metal, dropping or rising suddenly and drastically. 

Resistance for silver is at $29.47, while support is at 14dma, then $27.16 (a previous resistance) and next at $25.87. A break below this may signal a break in the uptrend and that prices may turn southwards. 

Would I buy? 

Well RSI has dipped down for both metals but is not low enough to consider adding to my holdings. However, if you feel strongly that the 14dma will hold support, perhaps nibbling is an option. Just my two cents. 

Cheers,

~K

Goodbye to Pulses Magazine

Journalism can never be silent: that is its greatest virtue and its greatest fault. It must speak, and speak immediately, while the echoes of wonder, the claims of triumph and the signs of horror are still in the air.
~ Henry Anatole Grunwald

The past three years saw a good many articles published by Pulses. Unfortunately, I never knew about this magazine until ~4 months ago, late- September, reading reviews of it on someone else’s blog. I forget whose. The favourable reviews convinced me to check it out at Kinokuniya but I wasn’t convinced about the quality of the articles and the magazine as a whole. Was it worth its $5.50 price tag? Didn’t wanna waste money unnecessarily you see. So that got me borrowing a stack of 6 from the library, reading it over a month. That was how I spent my October.

November was my first issue. The article on the banks caught my attention. Been eyeing OCBC since the crisis so it was only natural to want an update on the banking sector. I remember thinking that unlike the Edge, which writes mostly on the micro issues, by that I mean zooming in directly on the companies itself and the news of the week, Pulses seemed to focus on the broader view, focusing on market trends, sector trends, the latest buzz, etc. I liked that. Both publications complemented each other, I felt. But the best part of Pulses? Very little ads, compact and fitted in an edition that allowed easy fitting into a bag (unlike the Edge heh).

Today as I read the Editor’s letter of the December issue, I was disappointed to learn that the publication will cease come January ’11. And here I was ready to subscribe, flipping the pages to find the subscription form!

Kudos to SGX, SPH & The Business Times for a worthy publication. Kudos too, to the Pulses team. You’ve done great work in business journalism. It was a pleasure reading the articles. I especially like the monthly column from the Commonsense Investor and wonder if he has a blog I could continue to follow. Does anybody know?

But from next month onwards, guess I’ll have to look for another affordable read that’s macro-focused.

Recommendations anybody?

~K