Sunday, 28 July 2013
Stocks I Am Currently Tracking (Hotel Industry)
Recently, I have decided to be a bit more diligent and have done up an excel sheet detailing potential stocks for me to invest in. I have selected the hotel industry first because I strongly believe that Singapore will strengthen their already strong position as a global tourist market and the companies listed here are those that will be best in line to appreciate when more tourists start to come to Singapore. Moreover, many companies here have diversified their business operations so that even during down seasons, they are still able to maintain relatively healthy revenue.
These 15 shares in the Hotel industry as indicated by the Singapore Stock Exchange (SGX) shows an interesting phenomenon. The industry in general has seen an appreciation of share price, even though there are some companies that are losing revenue and profits, and some which are even making losses. This goes against the basic fundamental values of investing and could only be explained by an investor's love or sentiments leading to the soar in share price. In "The Intelligent Investor", one is taught that there is a right price to buy equities and one should always be a bit apprehensive and cautious when entering the market.
Out of these 15 stocks, I have already chosen a few to study in depth, including their management, current and future business plans, debt levels, leverage used, historical trends, previous crises and how the company dealt with it, potential risks, and most importantly, if the company's share is the right price to enter. Everyone has a different definition of what is the right price to pay for a share, but I have recently found a way to determine if the price is right.
With that said, I just need my new trading account to be approved (I decided to switch brokers, and the reason why will be outlaid in the next blog post) before I will invest. One word of caution to investors and traders alike before I end off my post:
"There are many sharks out there waiting to devour your hard earned money, never trust anyone but yourself. Make sure you of all people know WHERE and WHY you invest your money."