Recently got vested in 2 stocks. Created this entry to keep track of why I bought into this stocks so if it does not work out a few years later, I can refer back to this post for what doesn’t work.
2) Powermatic data system
This stock was sold down from close to $4 to $3.20. Reason was there were reports on Singapore wanting a 4th Telco, thus the banks started releasing reports on it expecting it to fall to $2.80. Based on my 2 years of experience in the stock market, these analysts are rarely correct, thus it may be a good time to load up on a stock if you believe it to be stable. A few reasons why I got vested in this stock.
1. Dividends warrior got vested in it at the 3.60 range. If you do not know dividend warrior is a blogger who champions investing In dividend yielding stocks. His picks are normally government related companies which are blue chips and are more stable.
2. However (1) was not the main reason why I was vested in this stock. I have analysed its dividends payment and it happens to have a good track record of paying dividends.
3. My holding period for this stock is 10 years, thus as long as it generates close to 5% yield, and its business does not change too much, I will remain vested in it.
4. Telcos are currently a cash cow business with not much disruptions to its business model. I can’t see much ways they will be heading into a loss financially.
As you can see there is not much analysis except for its dividend payment pattern. If this does not turn out well a few years down the road, this post will serve as a guide not to do investing in this way. Vested in M1 at $3.53.
Powermatic data system
Have been following this stock for a long time and was vested in it. However decided to buy more or it for the below reasons.
1. I have calculated its net tangible assets to be $0.27 – based on the real building price instead of the price which they have bought it. Will be divesting this stock once it reaches the $0.27-$0.29 range. (Cnav analysis)
2. 7 years of dividends payment. I will expect them to be paying around 5% dividends this year as well.
3. Huge margin of safety based on the cnav.
Next will be doing analysis on a few stocks in my watch list.
1. Keppel dc reits
2. Capitacomercial reits
3. Fortune reits
4. Metro holdings
5. Nam Lee pressed metal
6. New toyo
Can take my time as I do not have so much cash to invest in all of them currently.