These Blue Chips gave STI a strong start in 2021

 If you still remember, STI was the worst performing stock in this region last year. And how things have changed, it has started 2021 on a strong foot hold. As the banks constitute the highest weight, they have helped STI to propel forward given their recent very strong rally.

Below are the 2 bank counters that I owned and a laggard which has started to catch up. Given the flush in liquidity and returned confidence with the vaccine, they may rally higher. Let's see if the uptrend can still continue.

DBS

This counter has rallied the most, and as such, it is no longer cheap as compared to few months ago.

 

OCBC

Like DBS, this counter has rallied in the last few months. Last week, it gapped up for 2 days, which means that investors are scrambling to want a stake in this counter. However, at 11x earnings, it is neither cheap nor expensive.

Jardine C&C

Though this counter is also in the STI index, it is the poorer cousin of these 3 counters. The counter has not moved much, but last week it breakout of the key resistance strongly. At about 10x earnings, it has not been fully valued.

Happy and prosperous investing all, open eyes BIG BIG. 养 套 杀 。

Now May be the time to invest ... ... If you can hold for 2 years

STI Index

OCBC Bank

DBS Bank

CapComm Trust

Recent buy for these blue chips

In the last 2 months, the global stock market suddenly became lively. Last week, even the STI was closing in towards the 3000 mark. Many of the experts have predicted a market correction if Mr Trump won the election, and of course, we know by now that it didnt happen. In fact, Dow Jones has been hitting new high. Market always has it's surprises, thus time in the market is important.
Over the 2 months, I have been loading up DBS, OCBC and YZJ. There are many good articles on the fundamentals of these stocks(i shall not repeat those in the post here), and that was one of the consideration for my purchase. Below are some the links which I find useful:

1. why have oversea-chinese-banking-corp limiteds shares gained 25% in value over the last 5years
2. are singapores three banks headed for trouble
3. why are bank stocks in singapore cheap now

Using TA, if one look at the longer term, timing the market is also important. I am not talking about short term trading but long term trending. If you look at these charts below, you will understand what I am talking about. By buying at the price (indicators highlighted), I am timing the market, but no one can guaranteed that the price will not go lower. I am prepared to hold for few years, thus I am looking at the mega trend and not worried about the daily or the weekly fluctuation in the share price. A friend had cautioned me that the price is quite high, he was comparing with the correction after the GFC. Thus I could be wrong, but I am still holding on to my purchase :). 

Related Posts:

These high yield blue chips performed well during the US Presidential Election week

What to do with the conditional cash offer for my Sim Lian?

Sim Lian has offered at $1.08 to exit and will be delist from the exchange, and I have accepted the offer. What am I suppose to do, as a minority minority shareholder, it seems that we do not have much a choice. This is a stock with good dividend and discount to it's NAV, for most of the investors, it would be nice to keep it as a long term investment, enjoying it's dividend and as well as it's capital gains. Yes, on it's offer, this counter has given me a 25% capital gain from my initial buy price.

Why did I buy Sim Lian

1. I noticed that the major shareholders, including it's founders were buying their own shares. If the owners have confidence in their own company, we should pay attention.
2. Good dividend, my original intend was to buy and collect it's dividends.
3. A bonus came along the way, for some reason, the share price also appreciate slowly over time.

How should I use the cash offer

Below are few of the shares either new or existing (which I will top up), which are on my radar now.

1. OCBC bank - I have mentioned this counter in one of my earlier post, most of the reasons there are still valid.
2. GL - this counter is largely unloved due to property sentiment
3. CSE Global - this counter is also largely unloved due to the current state of oil and gas industry.
4. UOL - this counter is largely unloved due to the current property sentiment. 

I might post my opinion on the above counters in the next posts, above is not recommendations, please do your own homework.

Related posts:

What are you doing with your OCBC rights
Singapore banks - The world's strongest banks
My strategy and lesson learnt

What are you doing with your OCBC rights

In the past few weeks, the news about OCBC rights issue has been most discussed in social media. By now, whether or not you are existing shareholder, you would have heard about the bank giving the shareholders to own rights share at $7.65 each.

If you have been following my blog, you know that in May I have written about this bank. You can still read it from here. I was at the bank this morning as I was having problem with my ATM access. The bank was particularly crowded as it was weekend and also maybe lots of people were there for the rights issue. While waiting for the staff to help me, I overheard people enquiring about the rights shares. I dont mean to eavesdrop but you can just hear people talking in the closed environment. One nice thing about this bank is that they always have few of their staffs walking around in the waiting area offering help. Interestingly over the span of 15mins, this is what some of these people asked the staffs who were there in many to help. 

1. One lady was asking the staff, how many rights shares she can apply. This is amazing, didnt she received the letter.
2. Another lady was asking how many excess of the rights shares can she apply. And when she tried to apply, she realised she does not have enough cash in her bank account.
3. On seeing the long queue, an old lady asked when is the closing date for the application.

Although this is just observation at one of the branch, I believed this is the same phenomena across all other branches, as many shareholders are interested and will be applying the rights shares. As such, the probability of getting the excess shares will be low. 

Have you applied for yours?