Ever since they were launched on the Singapore Exchange in 2017, Daily Leverage Certificates (DLCs) provided SIP-qualified investors a convenient way to gain leveraged exposure (long or short positions) to intraday price movements of leading Asian indices – namely the MSCI Singapore Index (SiMSCI), Hang Seng Index (HSI) and Hang Seng China Enterprises Index (HSCEI). Read Also: Daily Leverage Certificate – What You Need To Understand About This New Product Before You Start Trading It Expanding The Portfolio Of Daily Leverage Certificates Initially, DLCs offered leverage levels of 3x and 5x. The 7x leverage DLCs were launched in January 2018 and has been well-received, according to Societe Generale. On 1 November 2018, Societe Generale expanded the line-up of DLCs available to investor

Venture Corporation Ltd (SGX: V03) released its 2018 third quarter earnings update last Friday and reported a big drop in profit. As a quick introduction, the company is a global provider of electronics manufacturing services that span marketing research, design and development, product and process engineering, supply chain management, and more. Let’s take a closer look at Venture’s results. Financial highlights The following are the key financial numbers from Venture: 1. Revenue for 2018’s third quarter decreased by 27.4% year-on-year to S$770.4 million. The decline was mainly attributable to customers’ planned transition to new replacement products, and some customers’ M&A (merger and acquisition) activities for the quarter. 2. Net profit attributable to sharehold

Some solid numbers from United Overseas Bank (SGX: U11) has set the bar for Oversea-Chinese Banking Corporation (SGX: O39), which is pencilled in for third-quarter numbers next week. In August, OCBC said second-quarter profits jumped 16% to S$1.21 billion. But it warned that the operating environment is becoming increasingly challenging. It also said that it was watchful of the severe implications to the global economy and financial markets from the escalating trade and political tensions. Venture Corporation (SGX: V03) surprised the market last time with a 40% jump in second-quarter profits. The electronics manufacturer also caught the market off guard with the announcement of an interim dividend. It typically only pays one dividend at the end of the year. But in its August announcement

To help investors make better portfolio allocation, DBS regularly publishes its model portfolio. The model portfolio consists of a basket of shares that DBS thinks are worth investing in. In this article, we are going to highlight three of them that DBS thinks are worthy to be in every investor’s portfolio. Investors Takeaway: 3 Stocks Worthy To Be In Every Investor’s Portfolio Genting Singapore Genting Singapore’s (Genting) share price has recovered marginally since its 1Q18 results following the ease of concerns over margin pressure. Moving forward, DBS foresees significant potential for Genting to rally strongly. Despite the recent turnaround in profitability, some investors remain sceptical over the sustainability of Genting’s earnings recovery. DBS thinks that the scepticis

Venture Corporation Ltd (SGX: V03) is an electronics manufacturing services provider with expertise in a wide range of activities. In this article, I want to dig deep into Venture Corporation’ return on equity, or ROE. The choice of ROE Why the ROE some of you might be asking? That’s because the financial metric gives investors important insight on a company’s ability to generate a profit using the shareholders’ capital it has. A ROE of 20% means that a company generates $0.20 in profit for every dollar of shareholders’ capital invested. In general, the higher the ROE, the more profitable a company is. A high ROE can also be a sign that a company has a high quality business. That being said, it’s worth noting that the use of high leverage – which increases the financial risk

Growth stocks can help investors fast-track their investment returns. However, picking the right business can often be tough. Last week, we suggested two key criteria which can help investors identify a good growth company: revenue growth and return on equity. Today, I would like to put some numbers behind the criteria to help us unearth a good growth company: 1) 5-year revenue growth of greater than 10% 2) Return on equity (ROE) greater than 10% 3) A market capitalization of over a billion dollars With these parameters in mind, let’s look at one company which fits the bill. Venture Corporation Ltd (SGX: V03) was founded in 1984 as a global electronics provider. Today, the company is a global provider of technology solutions, products and services. Venture currently has a market cap

Venture Corporation Ltd (SGX: V03) is an electronics manufacturing services provider with expertise in a wide range of activities. In the last few months, investors have been worried over companies that are related to the semiconductor industry. As a result, many of these companies have seen significant declines in their share prices. Venture was not spared either. At the current level of S$16.67 (as the time of writing), Venture’s share price has fallen by 44% from a 52-week high of S$29.65. Some investors may point out that this decline may be warranted as a result of higher uncertainties in the global economy caused by issues such as the trade war between the US and China. But, there are still a number of things to like about company. In my previous article, I looked at three posi

According to DBS, statistically, October has a higher tendency to be positive whenever the STI declines in the months of August and September. So far, the current valuation of Singapore’s market is also very reasonable with the STI hovering around 3200 region. As such, there should be adequate cushion against the possibility of earnings cuts in the upcoming results season. To ride out the month of October, DBS recommends three investment strategies. Investors Takeaway: 3 Investment Strategies To Ride On October’s Momentum Palm Oil Stocks Enter Seasonal ‘Sweet Spot’ Historically, the price of crude palm oil (CPO) tend to peak in the month of March. It then bottoms out before mid-October followed by 2-3 months of price recovery. The October-December seasonal rise coincides with

Venture Corporation Ltd (SGX: V03) is an electronics manufacturing services provider with expertise in a wide range of activities. In the last few months, investors have become worried about companies with exposure to the semiconductor industry. As a result, these companies saw significant declines in their share prices. Venture Corporation was not spared either. At yesterday’s share price of S$18.33, the company’s stock is trading at 38% below its 52-week high of S$29.65. Many might point out that such decline might be warranted as a result of higher uncertainties in the global economy caused by issues like trade wars. Yet, despite all the negative sentiments, there are a number of things to like about company. In my previous article here, I looked at three of those, which are: 1.

Continued from Elliott Wave Analysis on Venture CorporationAn invalid wave count from previous analysis due to rule violation.  Doing a recount to rectify the mistake.Recount at the Supercycle degree as the correctness in Supercycle will ensure whatever count in the lower degree to be correct.  As data range is from 1994 to 2018, that duration is not enough to fit in 1 complete Supercycle degree cycle. Hence, to narrow down the possibilities, the following criteria shall be used.1. Supercycle degree corrective waves will occur during economic recession2. Supercycle or Cycle degree corrective waves will occur when company or industry fundamental is in weakness stateWave Count 1 (Black)Supercycle Wave ((1)) peaked in 2000 and Supercycle Wave ((2)) lasted from 2000 to 2009 due to ec

Venture Corporation Ltd (SGX: V03) is an electronics manufacturing services provider with expertise in a wide range of activities. In the last few months, investors have become worried about companies with exposure to the semiconductor industry. As a result, these companies saw significant declines in their share prices. Venture Corporation was not spared either. At its share price of S$18.04 (at the time of writing), the company’s stock is trading at 39% below its 52-week high of S$29.65. Many might point out that such a decline might be warranted due to higher uncertainties in the global economy caused by issues like trade wars. Despite all the negative sentiments, there are a number of things to like about the company. Here are three of them. Strong financial track record One of the m

The oil market seems to be on a comeback, following news of renewed US sanctions on Iran. According to DBS, the rest of the OPEC may not have enough spare capacity to ramp up sufficiently to replace supplies from Iran. This will cause the supply side to remain fundamentally tight in the coming months and lead to higher oil prices in the rest of 2018 and 2019. For investors who are looking to capitalise on the impending rise in oil prices, there are four oil plays that you can look at. Investors Takeaway: 4 Oil Plays As Iran Gets Sanctioned CNOOC As a pure offshore upstream play, CNOOC is the best proxy for investors to ride oil price. CNOOC has demonstrated its world-class execution and cost control capabilities with stronger than expected core profit and impressive cost reduction in 1

On 13 September 2018, the share price of Venture Corporation (Venture) slumped 5.7 percent or $1.03 to $15.90 on a turnover of 2.7 million shares. The sudden sell-off occurred after the US Food and Drug Administration (FDA) proposed restrictions related to the sales and marketing of e-cigarettes to teenagers. Venture is widely believed to be the manufacturer of “I Quit Ordinary Smoking (IQOS)” by Philip Morris, a smokeless tobacco device that uses a heat-not-burn technology to release a nicotine-containing vapor. Philip Morris has been seeking the FDA’s approval to launch IQOS in the US. The recent FDA news created a knee-jerk reaction to Venture’s shares, as investors are concerned about the potential loss of a business opportunity if Philip Morris could not sell IQOS in the US. M

Venture Corporation Ltd (SGX: V03) is an electronics manufacturing services provider with expertise in a wide range of activities. At the current price of S$17.45, the company’s stock is trading at 41% below its 52-week intraday high of S$29.65. This captured my attention and got me interested in finding out more about the company. In particular, I want to understand: Does it have a high-quality business? This question is important. If Venture Corporation has a high quality business, its current low stock price could be an investment opportunity. Unfortunately, there’s no easy answer to the question. But, a simple metric can help shed some light on the question: the return on invested capital (ROIC). A brief introduction to ROIC In a previous article of mine, I explained how ROIC can b

There are many ways to find investment ideas. Some useful ways are to screen for stocks or to look at a list of stocks near their 52-week lows to sieve out potential bargains. Studying what institutional investors have been buying or selling is another avenue. Institutional investors are typically large investment organisations, such as hedge funds, mutual funds, unit trust companies, sovereign wealth funds, insurance companies and so on. These investors tend to possess vastly greater resources than individual investors like you and me when researching stocks. Hence, it may be useful to keep a close eye on what they are doing, as a way to generate ideas. In this article, I will look at three Singapore stocks (among the top ten stocks) that have seen the highest net disposal in dollar value

Venture Corporation Ltd (SGX: V03) is an electronics manufacturing services provider. At its current price of S$16.54 (at the time of writing), Venture’s shares are just 4% higher than its 52-week intraday low price of S$15.83. This raises a question: Is Venture cheap now? This question is important because if the firm’s shares are cheap, it might be a good opportunity for investors. Unfortunately, there is no easy answer. Having said that, we can still get some insights by comparing Venture’s current valuations with the market’s valuation. The three valuation metrics I will focus on are the price-to-book (PB) ratio, price-to-earnings (PE) ratio, and dividend yield. I will be using the SPDR STI ETF (SGX: ES3) as a proxy for the market; the SPDR STI ETF is an exchange-traded

Singapore’s Straits Times Index (SGX: ^STI), which hosts 30 of the largest companies in Singapore, has fallen by over 8% since the start of the year. But it’s not all doom and gloom. If we lengthen our horizon from months to years, we will see that a good number of STI companies have actually done quite well. In fact, a recent SGX report revealed that the top five performing companies in the index had returned over 77% on average over the past three years. Let’s have a look at the select quintet (data as of 30 August 2018): 1. Venture Corporation Ltd (SGX: V03) shares has delivered a stunning 154% return over the last three years. Founded in 1984 as a global electronics provider, Venture Corporation now sees itself as a global provider of technology solutions, products

The Straits Times Index (SGX: ^STI), which tracks the performance of the top 30 largest and most liquid companies listed in Singapore, ended August in the negative territory. For the month, the index tumbled 3.2%, or around 106 points, to 3,213.5. Of the 30 index components, 21 were in the red while the remaining nine were in the green. The top three winners of the Straits Times Index were Yangzijiang Shipbuilding Holdings Ltd (SGX: BS6), Venture Corporation Ltd (SGX: V03) and CapitaLand Limited (SGX: C31).Source: S&P Global Market Intelligence Yangzijiang reported a strong set of financial results for the second quarter ended 30 June 2018. As highlighted in my previous article here, revenue more than doubled to RMB 8.0 billion from RMB 3.8 billion a year ago while net profit climbed 3

There will be a number of companies going ex-dividend in the next few days. In other words, you need to own them before a particular date in order to receive their dividends. Let’s take a look at three of them at random. Wednesday, 5 September 2018 On Wednesday, global electronics services provider, Venture Corporation Ltd (SGX: V03), is pencilled in to go ex-dividend. Venture is dishing out 20.0 Singapore cents per share for its second quarter of 2018. For the three months ended 30 June 2018, even though the top line fell 6% to S$952.3 million, net profit climbed 40.2% to S$97.9 million. For the first half of 2018, the bottom line grew 53% to S$181.6 million. Venture attributed the improved profitability to its initiatives to leverage its core capabilities in R&D (research and devel

The earnings season is coming to the tail-end with the bulk of the companies having reported their financial results. Among the blue-chips of the Straits Times Index (SGX: ^STI), a handful of them have raised their dividends in the latest quarter. Let’s take a look at these companies. Keppel Corporation Limited (SGX: BN4) Keppel Corp is a conglomerate with four business divisions, namely, Offshore & Marine, Property, Infrastructure and Investments. For the six months ended 30 June 2018, net profit came in at S$583.6 million, up 38% year-on-year from S$423 million reported a year ago. The improvement was due to stronger contributions from the Property and Infrastructure divisions, which were partially offset by losses incurred by the Offshore & Marine and Investments divisions. T