Preparing for the next phase of growth

Both of Temasek owned shares are buying up stakes in companies that could set themselves up for the next phase of growth.

OCBC raises stake in bank of Ningbo from 15.34 per cent to 20 per cent, and is currently discussing on a possible acquisition of Wing Hang bank.

SATS, on the other hand bought 41.65% of PT Cardig Aero Services for S$118.3 million, repositioning the group to focus on growth in a country whereby demand for gateway services will increase, especially in a large country of islands separated by waters.

GLP, a rising emperor

2 of the the world's high growth markets namely China and Brazil had committed huge sums of investment as a sign of confidence in the growth prospects of warehouse leasing business.

A group of chinese investors which includes major players like Bank of China Group and private equity firm Hopu Funds will invest $2.35 billion in GLP. E-commerce in China is starting to bloom which saw in increased in demand for lease warehouses.

GLP Brazil Development Partners I fund, had raised an extra 538 million reals ($227 million).

Source: http://www.worldpropertychannel.com/asia-pacific-commercial-news/asian-warehouse-operators-see-influx-of-capital-demand-for-logistics-properties-global-logistics-properties-goodman-group-ming-mei-paul-mcgarry-8029.php

While GLP still had good valuations after a recent drop in share price from $3+ to 2.8+, it will not stay low at the level of demand for warehousing facilities. 

Top 5 undervalued stocks

Top 5 undervalued stocks

- Penguin International
Good balance sheet with zero or close to zero debts. Capable management to reduce cost and maximise profits

- XMH
Good balance sheet with zero or close to zero debts. Solid cash flow to have flexibility to explore greater growth opportunities.

- Falcon Energy
Its offshore drilling business is starting to rip the rewards and showing promise of further profitability. Demands for drilling rigs are expected to increase.

- Heeton
Constantly exploring joint venture opportunities and growing its recurring income portfolio

- Hiap Hoe
Good value with construction of projects and investing in value property portfolio overseas.

Why is it interesting to stay invested in sgx

In 2009 stock markets crashed when Lehman brothers defaulted on their debt and collapse, leaving many people with huge losses on investment products. People who invested in the stock market also saw huge decline in their asset value.

However, buyers from that period benefited a lot from the cheap asset prices and the rich become richer.

In 2012, the eurozone crisis cause a global decline in stock markets as Greece defaulted on its debt. Spain and Italy were also in a bad debt situation and these countries needed help from Germany, who possess one of the strongest economy in the world to revive them.

After the eurozone crisis, the fed brought out its money printing policy in attempt to recover the labour market in us and to bring about a faster global economic recovery. And by repurchasing bonds at 85billion a month, it kept global interest rates low for companies and consumers.

Low interest rates provided channels for cheap money to flow out of us into emerging markets and Asia, where the return of investments are greater. The prices of stocks also rise as a result of increase buying.

These events that happened around the world provided good lessons for me to relate with sgx and kept me looking forward to every market opening day in curiosity. Knowing that happenings around the world will affect the stock market every day will keep myself busy keeping up with the news.

I thank all readers for keeping up with my blog.

Have a great bullish day!

Higher correction, higher bull

What goes up must come down, and what goes down must come up. Based on historic records, markets had been acting on ups and downs.

What is set for a correction now, may be paving way for a bigger bull later. Interest rates are set to rise while the Fed started cutting back its bond purchases by $20 billion.

Property investors may face headwind ahead of rising interest rates, which means they have to pay much more interest if they are taking up huge loans. Same goes to property stocks as well.

However, there are no clear indications why markets are correcting now. And the fact that they are correcting means there are many good opportunities to pick up good stocks.

While interest rates are set to rise, try to stay away from stocks with huge debts, especially property counters.