*Official* MasterLeong Thread

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strangerjun

strangerjun

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L'oreal Paris said:
M1 is beyond hope already:s13:
Click to expand...

The chart is showing weakening bearish momentum and these few day, higher lows are made but the price is showing resistance. People are still apprehensive about the 4th telco because they feel it is going to affect M1 the most.

On the other hand, starhub is taking off.

:s12::s12:
 
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dolph001

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lewissac said:
I noticed Price-to-Book Ratio (PB Ratio) for SG telco company varies very significantly.

Starhub is over 22 PB ratio followed by M1 4.99 and Singtel at 2.40.

Does this implied that Starhub is 22x over the book value?

I thought for companies of similar industries would have a close range of PB.
Click to expand...

Companies in the same industry have similar P/E. Having said that, an unusually low net income or negative net income will cause said company to deviate from industry mainstream.

P/B can still vary a great deal due to leverage. StarHub is highly leveraged, thus has a low NAV, which in turn gives a high PB.
 
MasterLeong

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lewissac said:
I noticed Price-to-Book Ratio (PB Ratio) for SG telco company varies very significantly.

Starhub is over 22 PB ratio followed by M1 4.99 and Singtel at 2.40.

Does this implied that Starhub is 22x over the book value?

I thought for companies of similar industries would have a close range of PB.
Click to expand...

PB applies more to reits and banks where there are real assets

its not wise to use PB to value telcos or any service/tech companies as they do not really own any assets

the network belongs to the government and they only bid to operate the license

think of telcos as middle man... they buy 1 GB fibre at $20 and sell u for $40, profiting $20
 
MasterLeong

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lewissac said:
I noticed Price-to-Book Ratio (PB Ratio) for SG telco company varies very significantly.

Starhub is over 22 PB ratio followed by M1 4.99 and Singtel at 2.40.

Does this implied that Starhub is 22x over the book value?

I thought for companies of similar industries would have a close range of PB.
Click to expand...

Singtel has more book value as their overseas subsidiaries are written on books based on acquisition costs/good wills

Starhub has least book value due to negative good will from cable tv business it acquired in the past

I am not here to teach accounting... so will not go any deeper... if u want to know more on how its calculated, can email their investors relations
 
MasterLeong

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in general if you do not understand the company/industry its best to avoid investing in it

only invest in businesses within your circle of competence


reits/telcos/banks are really easy to understand... if these 3 also cannot understand.. then just buy STI ETF sua
 
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lewissac

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MasterLeong said:
PB applies more to reits and banks where there are real assets

its not wise to use PB to value telcos or any service/tech companies as they do not really own any assets

the network belongs to the government and they only bid to operate the license

think of telcos as middle man... they buy 1 GB fibre at $20 and sell u for $40, profiting $20
Click to expand...

Thanks. That explanation is more than sufficient for me to understand already.
Apparently what I learn from books/googles/investopedia is totally different from what I am applying here. :s13::s13::s13:

Feels like back to uni-days.
 
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shareholder

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MasterLeong said:
in general if you do not understand the company/industry its best to avoid investing in it

only invest in businesses within your circle of competence


reits/telcos/banks are really easy to understand... if these 3 also cannot understand.. then just buy STI ETF sua
Click to expand...

Yeah, sti etf is really a great investment! Simple and easy to keep track, good for everyone. Stock pick only when one enjoys reading financial reports like warren buffett.
 
MasterLeong

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lewissac said:
Thanks. That explanation is more than sufficient for me to understand already.
Apparently what I learn from books/googles/investopedia is totally different from what I am applying here. :s13::s13::s13:

Feels like back to uni-days.
Click to expand...

go company website, go read annual reports/quartely reports

go open more trading accounts and get your broker to send u analyst reports

that's the real way to go
 
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lewissac

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shareholder said:
Yeah, sti etf is really a great investment! Simple and easy to keep track, good for everyone. Stock pick only when one enjoys reading financial reports like warren buffett.
Click to expand...

It's still joy to read financial reports for me, as a non-financial person. Good learning process. Pretty enjoyable to see how you dig out more and more info from that report to your knowledge.

I'm that kind of person who don't mind reading 8-9 pages of insurance TnC. I just love to tear their TnC's apart.
 
MasterLeong

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STI = 2952

up 1.5% will cross 3000

once pass 3000, newspapers will print big big that we are back in the bull market?
 
MasterLeong

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this December I only wish for STI to up 1.5% and close 3000 level

a great set up for the 2017 mega bull ^_^
 
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