The Systematic Trader | Trading Courses https://www.collinseow.com Learn a proven back-tested trading strategy and make money full or part-time Mon, 18 May 2020 10:36:10 +0000 en-US hourly 1 25400563 18th May Weekly Webinar Sneak Peak: Position Trading Long (New): HZNP, NVDA; Prior Position Signal Long: BYND 11 May, ETSY 11 May, PDD 11 May, GILD 20 Apr (Remove), NFLX 14 Apr, MRNA 6 Apr, REGN 2 Mar, ZM 17 Feb; Weekly Swing Short (New): CVX; Weekly Swing Prior Short: BCH 20 Apr, PTR 20 Apr https://www.collinseow.com/20th-april-weekly-webinar-sneak-peak-position-trading-long-new-gild-prior-position-signal-long-ctxs-6-apr-5-2-mrna-6-apr-47-regn-2-mar-22-zm-17-feb-65-weekly-swing-short-new-ptr-bch-wee-3/ https://www.collinseow.com/20th-april-weekly-webinar-sneak-peak-position-trading-long-new-gild-prior-position-signal-long-ctxs-6-apr-5-2-mrna-6-apr-47-regn-2-mar-22-zm-17-feb-65-weekly-swing-short-new-ptr-bch-wee-3/#respond Mon, 18 May 2020 10:33:54 +0000 https://www.collinseow.com/?p=13090 Hello everyone! This week Collin shares a list of scan results for today (18 May 2020): Position Trading Long New HZNP NVDA Prior Position Signal Long BYND 11 May ETSY 11 May PDD 11 May GILD 20 Apr (Remove) NFLX 14 Apr MRNA 6 Apr REGN 2 Mar ZM 17 Feb Weekly Swing Short New […]

The post 18th May Weekly Webinar Sneak Peak: Position Trading Long (New): HZNP, NVDA; Prior Position Signal Long: BYND 11 May, ETSY 11 May, PDD 11 May, GILD 20 Apr (Remove), NFLX 14 Apr, MRNA 6 Apr, REGN 2 Mar, ZM 17 Feb; Weekly Swing Short (New): CVX; Weekly Swing Prior Short: BCH 20 Apr, PTR 20 Apr appeared first on The Systematic Trader | Trading Courses.

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Hello everyone!

This week Collin shares a list of scan results for today (18 May 2020):

Position Trading Long
New
HZNP
NVDA
Prior Position Signal Long
BYND 11 May
ETSY 11 May
PDD 11 May
GILD 20 Apr (Remove)
NFLX 14 Apr
MRNA 6 Apr
REGN 2 Mar
ZM 17 Feb
Weekly Swing Short
New
CVX
Weekly Swing Prior Short
BCH 20 Apr
PTR 20 Apr
Selling opportunities this month. No impulse down yet, look out for long candle and big volume.

Click the picture below to watch the video and find out more.

Enjoy the video!

If you’d like to learn more about systematic trading, click the banner below.

The post 18th May Weekly Webinar Sneak Peak: Position Trading Long (New): HZNP, NVDA; Prior Position Signal Long: BYND 11 May, ETSY 11 May, PDD 11 May, GILD 20 Apr (Remove), NFLX 14 Apr, MRNA 6 Apr, REGN 2 Mar, ZM 17 Feb; Weekly Swing Short (New): CVX; Weekly Swing Prior Short: BCH 20 Apr, PTR 20 Apr appeared first on The Systematic Trader | Trading Courses.

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8 OUTPERFORMING STOCKS TO BUY NOW (PART 2) https://www.collinseow.com/8-outperforming-stocks-to-buy-now-part-2/ https://www.collinseow.com/8-outperforming-stocks-to-buy-now-part-2/#respond Sun, 17 May 2020 16:28:14 +0000 https://www.collinseow.com/?p=13075   Stocks that consistently outperform the market tend to have a few common characteristics. In Part 1 of our article, we highlighted 4 Outperforming stocks that have consistently beaten the market over the last decade. These 4 stocks are Apple, Adobe, Clorox, and Fastenal. 8 Outperforming Stocks to buy now (Part 1) We identified that […]

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Stocks that consistently outperform the market tend to have a few common characteristics. In Part 1 of our article, we highlighted 4 Outperforming stocks that have consistently beaten the market over the last decade. These 4 stocks are Apple, Adobe, Clorox, and Fastenal.

8 Outperforming Stocks to buy now (Part 1)

We identified that all 4 stocks have high ROE/ROIC as well as strong free cash flow generating capabilities.

In this article, we will reveal the remaining 4 Outperforming stocks on our list. Investors should consider strategically adding these stocks into their portfolio when the opportunity arises.

I will end the article by summarizing the few common traits that these 8 Outperforming Stocks exhibit which might be useful in finding the next multi-bagger stock.

OUTPERFORMING STOCK #5: FORTINET

Outperforming stocks to buy (Fortinet vs. S&P500)

BUSINESS SUMMARY

Fortinet is a cybersecurity vendor that sells products, support, and services to small and midsize businesses, enterprises, and government entities. Its products include unified threat management appliances, firewalls, network security, and its security platform, Security Fabric. Services revenue is primarily from FortiGuard security subscriptions and FortiCare technical support.

At the end of 2019, products were 37% of revenue, and services were 63% of sales. The California-based company sells products worldwide, with the Americas representing 43% of sales in 2019.

While Fortinet’s core cybersecurity business might not be immune from the COVID-19 outbreak, cybersecurity is undoubtedly a growing business over the coming decade and is mission-critical for any enterprise, no matter what’s happening in the world.

The company announced its 1Q20 results on 7 Feb which handily beat the street’s estimates, propelling the stock up by c.20% the following day.

FINANCIAL STATEMENT SUMMARY

Outperforming stocks to buy (Fortinet financials)

Fortinet has a fantastic business that is seeing its revenue growing by a CAGR of 20.9% over the past 5 years. EPS, on the other hand, has skyrocketed by a CAGR of 142.5% during the same period as the company achieves significant operating leverage in the past 3 years. Observe that the company’s operating margin increased from 2.2% in 2015 to 16% in 2019.

I noticed that companies that can achieve significant operating leverage tend to demonstrate strong share price appreciation. Fortinet is clearly one of them.

The company has a fortress-like balance sheet, with cash increasing from $891m in 2015 to $2066m in 2019. The company has absolutely ZERO debt. Its founder and CEO, Ken Xie doesn’t appear to believe in debt since the company has been debt-free since 2009.

With a free cash generation of $4.08, the company is trading at a trailing-Price/FCF of 34x. While not a low multiple, it is definitely more palatable than the 46x forward PER that it is currently trading at. Based on its 1Q20 free cash flow generation of $292m vs. 1Q19 free cash flow of $191m, Fortinet looks to be on track to generate $1bn in free cash flow for 2020. That will value the company at c.23x forward Price/FCF which is very good for a company growing its free cash flow by c.31%/annum over the last 5 years.

Again, this is another company that has a high ROIC of 25.2% and this has been achieved without significantly reducing its equity due to share buybacks.

ANALYST CONSENSUS

(Fotinet consensus)

The overall street consensus is a BUY for the counter, although 10 analysts are instituting a Hold call on the stock, likely due to valuations where Fortinet’s EV/EBITDA, P/E, P/S multiples, etc are on the high side vs. peers.

This is however more than compensated by its strong historical and forward growth profile.

Fortinet

This is Fortinet on the TradersGPS chart, you can see that the system does agree with Royston’s analysis. Let’s see how far this stock can go!

OUTPERFORMING STOCK #6: IDEXX LABORATORIES

(Idexx vs. S&P500)

BUSINESS SUMMARY

Idexx Laboratories primarily develops, manufactures, and distributes diagnostic products, equipment, and services for pets and livestock. Its key product lines include single-use canine and feline test kits that veterinarians can employ in the office, benchtop chemistry and hematology analyzers for test-panel analysis on-site, reference lab services, and tests to detect and manage disease in livestock.

Idexx gets about 38% of its revenue from outside the United States.

This was a stock that I previously analyzed using Buffett style of investing in this article: Buffett Series: Idexx Laboratories back in Oct 2019 with the conclusion that while the share price seems elevated at that point of time (trading at US$272/share; current share price at US$299/share), Idexx is a recession-proof business that can generate an after inflation CAGR of 7.6% over the next 10-years and that there is a business case to take a position in that counter.

FINANCIAL STATEMENT SUMMARY

(Idexx financials)

Another steady grower of its revenue with a CAGR of 10.7% over the past 5 years. EPS grew by 24.2% as a result of a combination of both operating leverages as well as a declining share base. Currently trading at a forward PER of 51x, Idexx has not de-rated due to the COVID-19 pandemic.

Idexx’s balance sheet is not as strong as our previous candidates, with a net debt balance of $980m as of end-2019. With equity of $177m, net debt to equity was at over 8x which seems excessive at first glance, but that was mainly due to years of share buyback that has decreased its equity base, very similar to stocks such as McDonald and Disney.

What is more meaningful is looking at the amount of operating cash flow that the company generates each year. That has been showing a very consistent uptrend alongside profit growth, the ideal scenario we will like to observe. The company also generates a decent amount of free cash flow.

On an ROIC basis, Idexx generates an ROIC of 38.5% in 2019, an incredibly high ratio.

ANALYST CONSENSUS

Outperforming stocks to buy (Idexx consensus)

Idexx is not covered by many analysts (only 5) but out of the handful of analysts covering the stock, 80% of them rated the counter a Strong Buy.

Idexx Labs

From this TGPS chart, you can see that there have been a couple of very recent long signals generated. It looks like price is ready to break this major resistance around $300.

 

OUTPERFORMING STOCK #7: MARKETAXESS HOLDING

Outperforming stocks to buy (Market Axess vs. S&P500)

BUSINESS SUMMARY

MarketAxess Holdings Inc is a United States-based company engaged in operating an electronic trading platform.

The platform enables fixed-income market participants to trade corporate bonds and other types of fixed-income instruments using patented trading technology.

It also provides related data, analytics, compliance tools, and post-trade services.

The key trading products are U.S. High-Grade Corporate Bonds, Emerging Markets Bonds, U.S. Crossover and High-Yield Bonds, Eurobonds, U.S. Agency Bonds, Municipal Bonds and others.

The business operations of the company carried in the United States, the United Kingdom, and other countries, of which a majority of the revenue is derived from the United States.

FINANCIAL STATEMENT SUMMARY

Outperforming stocks to buy (Market Axess financials)

One of the best stocker performers of the decade, Market Axess holdings is a counter that most people will not be overly familiar with. The counter grew its revenue by c.15% over the past 5 years while EPS grew by c.24% mainly due to improvement in its operating margins.

The counter has seen a huge re-rating in its PER multiples, almost doubling from 5 years ago. This is likely due to the market perception of a strong demand for bonds trading.

Market Axess has a pristine balance sheet where its current assets mainly comprise of cash. The company has very little debt and is in a net cash position.

The company generates strong free cash flow and is again another company that has a high ROIC multiple of c.27.5% as of end-2019.

Lastly, the company is a very strong dividend growth counter, with its dividend growth at 20% for the past 5 years. Despite that, its yield is currently at a paltry 0.5%, due mainly to the counter’s strong share price appreciation.

ANALYSTS CONSENSUS  

Outperforming stocks to buy (Market Axess consensus)

Out of the 7 analysts covering the counter, most of them have a HOLD rating on the counter. However, the stock has continued to outperform the market’s expectations in terms of share price performance.

Marketaxess

From this TGPS chart, you can see that price wasn’t very affected by the massive market sell down in March. Recently there have been multiple TGPS signals to buy, reaching a maximum of 16% gains just a few days ago.

 

OUTPERFORMING STOCK #8: MICROSOFT     

(Microsoft vs. S&P500)

BUSINESS SUMMARY

Microsoft develops and licenses consumer and enterprise software. It is known for its Windows operating systems and Office productivity suite.

The company is organized into three overarching segments: productivity and business processes (legacy Microsoft Office, cloud-based Office 365, Exchange, SharePoint, Skype, LinkedIn, Dynamics), intelligence cloud (infrastructure- and platform-as-a-service offerings Azure, Windows Server OS, SQL Server), and more personal computing (Windows Client, Xbox, Bing search, display advertising, and Surface laptops, tablets, and desktops).

Through acquisitions, Microsoft owns Xamarin, LinkedIn, and GitHub. It reports revenue in product and service and other revenue on its income statement.

Microsoft is the only company that has remained in the Top 10 largest market cap company in the World consistently since 2000.

FINANCIAL STATEMENT SUMMARY

Outperforming stocks to buy (Microsoft financials)

Consistent revenue growth (5-years CAGR at 11%) with a growing operating margin and a reduction in outstanding shares, ultimately translating to a 41.5% EPS CAGR over the past 5 years seem to be Microsoft secret recipe to being the largest (if not second largest) market cap company in the world at present.

The company is a cash-generating monster with c.$134bn in cash as of end-2019 and a net cash position of $57bn. This can only be achieved due to its strong free cash flow of c.$40bn in 2019 which has been growing at a CAGR of 13.6% over the past 5 years.

A company with an ROIC of 26%, Microsoft is also a consistent dividend payer with dividend growth almost hitting 10%/annum.

All-in-all, Microsoft seems to be hitting the right button in all operational areas which is the reason why its share price has been consistently outperforming over the past decade.

ANALYST CONSENSUS

Outperforming stocks to buy (Microsoft consensus)

With 24 analysts covering the counter and 22 issuing a Strong Buy, Microsoft is well-loved by the street.

CONCLUSION

These 8 Outperforming Stocks have been the most consistent share price outperformer, not just over the past decade but during the recent health pandemic as well.

Most of them exhibit certain common characteristics of a good company which I will like to briefly summarize:

  1. Consistent growth in revenue and EPS
  2. Consistent Share Buyback
  3. High ROIC above 20%
  4. A strong balance sheet with marginal net debt exposure
  5. Positive and often strong free cash flow generation
  6. Operating leverage
  7. For Dividend Payers, dividend growth of close to 10%/annum

Interestingly, the PER multiple seem less relevant as growth precedes value. A major concern of growth companies is often the fact that when growth in these companies starts to decline, they might get into credit-related issues as most would have been growing through the usage of debt or issuing new equity.

On the other hand, a growth company such as those above which demonstrates the ability to consistently generate free cash flow to internally fund their growth through both organic or inorganic means, instead of turning to the capital market for funds, will be favorably viewed upon.

For those who have not read Part 1 of this article on Outperforming Stocks, do check out the link below:

8 OUTPERFORMING STOCKS TO BUY NOW (PART 1)

Microsoft

From this TGPS chart, you can see that Microsoft has had 1 valid buy signal recently, so traders can still watch out for more valid long signals from this household name.

 

If you enjoyed reading this article and various other investment + personal finance articles, do visit New Academy of Finance. Royston has more than 10 years of buy and sell side experience as a financial analyst. He constantly posts interesting, valuable and actionable articles.

 

The post 8 OUTPERFORMING STOCKS TO BUY NOW (PART 2) appeared first on The Systematic Trader | Trading Courses.

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4th May Weekly Webinar Sneak Peak: Position Trading Long (New): nil; Prior Position Signal Long: GILD 20 Apr, NFLX 14 Apr, MRNA 6 Apr, REGN 2 Mar, ZM 17 Feb; Weekly Swing Short (New): ESTC, AOS; Weekly Swing Prior Short: BCH 20Apr, PTR 20 Apr https://www.collinseow.com/20th-april-weekly-webinar-sneak-peak-position-trading-long-new-gild-prior-position-signal-long-ctxs-6-apr-5-2-mrna-6-apr-47-regn-2-mar-22-zm-17-feb-65-weekly-swing-short-new-ptr-bch-wee-2/ https://www.collinseow.com/20th-april-weekly-webinar-sneak-peak-position-trading-long-new-gild-prior-position-signal-long-ctxs-6-apr-5-2-mrna-6-apr-47-regn-2-mar-22-zm-17-feb-65-weekly-swing-short-new-ptr-bch-wee-2/#respond Mon, 04 May 2020 06:55:53 +0000 https://www.collinseow.com/?p=13069 Hello everyone! This week Collin shares a list of scan results for today (20 Apr 2020), Position Trading Long New nil Prior Position Signal Long GILD 20 Apr NFLX 14 Apr MRNA 6 Apr REGN 2 Mar ZM 17 Feb Weekly Swing Short New ESTC AOS Weekly Swing Prior Short BCH 20 Apr PTR 20 […]

The post 4th May Weekly Webinar Sneak Peak: Position Trading Long (New): nil; Prior Position Signal Long: GILD 20 Apr, NFLX 14 Apr, MRNA 6 Apr, REGN 2 Mar, ZM 17 Feb; Weekly Swing Short (New): ESTC, AOS; Weekly Swing Prior Short: BCH 20Apr, PTR 20 Apr appeared first on The Systematic Trader | Trading Courses.

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Hello everyone!

This week Collin shares a list of scan results for today (20 Apr 2020),

Position Trading Long
New
nil

Prior Position Signal Long
GILD 20 Apr
NFLX 14 Apr
MRNA 6 Apr
REGN 2 Mar
ZM 17 Feb

Weekly Swing Short
New
ESTC
AOS

Weekly Swing Prior Short
BCH 20 Apr
PTR 20 Apr

Selling opportunities this month. We are in May.

Click the picture below to watch the video and find out more.

Enjoy the video!

If you’d like to learn more about systematic trading, click the banner below.

The post 4th May Weekly Webinar Sneak Peak: Position Trading Long (New): nil; Prior Position Signal Long: GILD 20 Apr, NFLX 14 Apr, MRNA 6 Apr, REGN 2 Mar, ZM 17 Feb; Weekly Swing Short (New): ESTC, AOS; Weekly Swing Prior Short: BCH 20Apr, PTR 20 Apr appeared first on The Systematic Trader | Trading Courses.

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Is Time Running Out For Keppel And Sembcorp Marine As Oil Collapses Below Zero? https://www.collinseow.com/is-time-running-out-for-keppel-and-sembcorp-marine-as-oil-collapses-below-zero/ https://www.collinseow.com/is-time-running-out-for-keppel-and-sembcorp-marine-as-oil-collapses-below-zero/#respond Fri, 01 May 2020 07:41:47 +0000 https://www.collinseow.com/?p=13048 Sembcorp and Keppel are certainly on their toes this period. Last week saw an unprecedented drop in oil prices to a negative level, almost -$40/barrel to be exact. Such a phenomenon has not happened in the past and it was largely the result of paper traders and Oil ETFs dumping their expiring May contracts “by […]

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sembcorp marine

Sembcorp and Keppel are certainly on their toes this period.

Last week saw an unprecedented drop in oil prices to a negative level, almost -$40/barrel to be exact. Such a phenomenon has not happened in the past and it was largely the result of paper traders and Oil ETFs dumping their expiring May contracts “by all means” as buyers disappear.

Oil price crash

Since then, WTI oil prices have recovered to roughly $17/barrel as of this writing, a positive figure but not a “champagne popping” price level.

IS TIME RUNNING OUT FOR KEPPEL CORP AND SEMBCORP MARINE?

The significant collapse of oil prices does not bode well for both Keppel and Sembcorp Marine. Yes, they do not derive their revenue directly from the sale of oil but indirectly in the form of newbuild contracts for production/drilling-related assets.

The problem is that with oil prices that low amid an oil glut scenario, no oil company in their right frame of mind will be contracting large newbuild orders from yards in the near term, in my view.

Can the existing backlog of Keppel and Sembcorp Marine support revenue recognition?

As of the end-2019, the net order backlog of Keppel stood at S$4.4bn. With an annual breakeven revenue run-rate of approx. S$2-2.5bn, Keppel should be able to continue its shipyard operations for the next 2 years even with no new orders without incurring excessive losses for this division.

On the other hand, Sembcorp Marine’s net order backlog as of end-2019 stood at S$2.4bn. With an annual breakeven revenue run-rate of at least S$3bn on my estimate, the company will likely be out of revenue by the end of 2020 or potentially incurring a huge amount of losses this year if they wish to lengthen their revenue recognition period.

More critically for Sembcorp Marine, with a net debt to equity now close to 1.9x, it calls into question the company as a going concern.

STILL WAITING FOR RESTRUCTURING

Investors have been speculating of consolidation between Keppel’s O&M division and Sembcorp Marine for some time, particularly since Temasek made an intent to take majority ownership of Keppel back in October 2019 which fuelled speculation that a re-organization of Singapore’s offshore yard industry is on the cards.

However, the closure of the majority stake in Keppel has been much longer than expected although Keppel maintains that transaction by Temasek remains valid.

For shareholders of Sembcorp Marine who has been banking on a merger, likely to be one spearheaded by Temasek, the wait continues to be an agonizing one, with time no longer on their side.

SEMBCORP MARINE: WHERE IS THE LIGHT AT THE END OF THE TUNNEL?

With the company now forced to stop all on-site work with effect from April 21 until the end of the circuit breaker period due to COVID-19 spread in foreign worker dormitory, Sembcorp Marine will essentially be seeing a significant decline in its revenue for this period, a scenario similar to SIA.

This again could imply a record level of loss for 1Q20 or 1H20 (exempted from quarterly reporting) which could rival that of its 4Q19 losses of S$78m, even excluding the impact of accelerated depreciation now absent in 2020. Assuming 1H20 losses of S$150m, that could result in shareholder’s equity dropping to S$2bn, with its net gearing level exceeding 2x. Losses might, however, be lower due to government subsidies.

Sembcorp Marine

From this TGPS chart, you can see that Sembcorp gave a really good signal to short, netting an easy 30+% in a the massive drop!

Sembcorp Marine’s share price has taken a beating since the start of 2020, falling from S$1.36 at the beginning of the year to the current level of S$0.70, valuing the company at S$1.46bn. This is approx. a 25% discount to its tangible book value, a multiple that is at a record low level, which seems to imply a certain level of attractiveness.

However, that might not be the case if the company’s assets are “inflated”. The company has S$4.25bn worth of PPE as of end-2019, a figure that has been on the rise these past few years despite significant weakness seen in its industry.

No impairments were made to its PPE which largely comprise of the long-term depreciated value of its shipyards. That might not be reasonable if this industry is now deemed to be in a structural decline, much like its shipping counterpart.

With no new orders and yards that are likely at extremely low capacity (even after the work-order halt is lifted), it is hard to imagine that the yards can continue to maintain their “stated” value on its balance sheet.

If a significant impairment exercise is finally taken in 2020, an S$1bn cut to PPE (23% reduction) could result in its Price to tangible book multiple increasing from the current 0.75x to 1.6x.

Of course, these numbers are just forecast. However, it is fair to say that our yards are currently on a weak footing, particularly for Sembcorp Marine which has a more than an even probability of not surviving this downturn without additional equity raising or help from the state. The South Korean government has just announced billions in emergency funding to the shipbuilding sector, one of seven key industries that can apply for a new $32.4bn relief fund.

Will Sembcorp Marine go the route of a sizable equity raising just like what SIA has done or will there be light at the end of the tunnel in terms of a merger with Keppel O&M? I sense that until the Temasek/Keppel transaction is completed, the likelihood of any major restructuring exercise involving both Keppel and Sembcorp Marine is low. However, a consolidation is likely still the best long-term solution for our local yards to remain competitive against both our Chinese and Korean counterparts whose industry has been undergoing their own consolidation this past couple of years.

The exemption from quarterly reporting for Sembcorp Marine is probably a “lifeline” for the company as their finances will not be scrutinized by the street for at least until August 2020 when it releases its half-year result.

However, with the lack of new contract announcements, it is not difficult to see that time is indeed a precious commodity for Sembcorp Marine at present. Shareholders who are holding on for potential restructuring activity might be sorely disappointed that it could ultimately be in the form of equity raising instead of yard consolidation between Keppel O&M and Sembcorp Marine.

That in itself is complicated by the fact that Sembcorp Marine’s parent, Sembcorp Industry which holds a 62% stake in the former, is not on great financial footing.

 

CONCLUSION

Keppel and sembcorp marine

From this TGPS chart, you can see Keppel also gave a nice short signal that enabled us to catch the passive drop near the top. A solid 28% at the peak of the trade!

Keppel, with multiple business divisions, will likely survive the current bear market in oil. I sense that losses if any will be rather marginal and manageable for 2020. All eyes will be on the completion of Temasek taking a majority stake in the company. That could give hope to the second round of corporate activity involving Sembcorp Marine, whose time seems to be running out in today’s low oil price context where new orders are none to speak of.

However, the complication of putting a “real” value on Sembcorp Marine’s true worth might again delay the whole corporate merger process, with investors not making gains even at today’s seemingly low price level.

Investors might be better of buying into its parent, Sembcorp Industry, who will likely benefit from its divestment stake in Sembcorp Marine to become a true-blue utilities/energy entity, a corporate action which will likely see a re-rating in its market value.

 

If you enjoyed reading this article and various other investment + personal finance articles, do visit New Academy of Finance. Royston has more than 10 years of buy and sell side experience as a financial analyst. He constantly posts interesting, valuable and actionable articles.

The post Is Time Running Out For Keppel And Sembcorp Marine As Oil Collapses Below Zero? appeared first on The Systematic Trader | Trading Courses.

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Create a Passive Income From Options, Francis Goh Shares How https://www.collinseow.com/create-a-passive-income-from-options-francis-goh-shares-how/ https://www.collinseow.com/create-a-passive-income-from-options-francis-goh-shares-how/#respond Tue, 28 Apr 2020 03:49:30 +0000 https://www.collinseow.com/?p=13042 Francis who went through the long path of self discovery, uncovering every stone in options over 17 years to attain this level of mastery. A mastery that enables him to create a passive income from options. In this interview, options master Francis Goh shares why options are suitable to create a passive income and how […]

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passive income

Francis who went through the long path of self discovery, uncovering every stone in options over 17 years to attain this level of mastery.

A mastery that enables him to create a passive income from options.

In this interview, options master Francis Goh shares why options are suitable to create a passive income and how we can do it too.

“Selling Insurance”

Options is a great vehicle to generate passive income by “selling insurance”.
With options, we get to play the role of the bank marketmaker or “casino dealer” if you what ever you want to call it.
Basically you get to deal the odds to the players.
But even with that advantage, of course, you still need to the your homework.

Top down approach

This is how Francis prefers to do his analysis of the markets.
It’s a systematic approach which involves him keeping tabs on the broad market sentiment.
He does this with a popular website called Morningstar.
Then he goes into the fundamentals of the company which he wants to take trades on.
In the interview, he shares a couple of key features to what he’s looking at in a stock that he wants to play.

Risk management is still required in options

This was a lesson he learnt in his earlier trading years, back in 2008.
In his words, basically he lost a Toyota in a single night.
Of course he never wanted that to happen again.
Therefore, he came up with the current bread and butter “Lobster” strategy.
The “Lobster” strategy allows him to generate a passive income at very low risk.

Technicals matter

There’s still a component of options which requires us to decide some rough price levels.
So Francis does have his own method which relates price charts with fundamental data.
This helps to determine the price levels he’s interested in for his options trades.

During this long journey, he came to a realization, that no single strategy will work across all market conditions.
So what was the solution?

Click here to view the interview, where Francis Goh shares the solution and a few other key takeaways from his long experience.

If you’d like to find out a systematic way to trade the markets, click the banner below.

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Larry Hite: World’s First Billion Dollar Hedge Fund Manager https://www.collinseow.com/larry-hite-worlds-first-billion-dollar-hedge-fund-manager/ https://www.collinseow.com/larry-hite-worlds-first-billion-dollar-hedge-fund-manager/#respond Thu, 23 Apr 2020 09:22:48 +0000 https://www.collinseow.com/?p=13004 Larry Hite is known for being one of the forefathers of systematic trend trading, and his hedge fund was the first hedge fund in history to reach 1 billion dollars in assets under management (AUM). Larry was very candid in this interview and you can see that even at 79 years young, and decades in […]

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Larry Hite

Larry Hite is known for being one of the forefathers of systematic trend trading, and his hedge fund was the first hedge fund in history to reach 1 billion dollars in assets under management (AUM).

Larry was very candid in this interview and you can see that even at 79 years young, and decades in the markets, he’s still very passionate about investing and the markets.
He peppers his responses with his life stories to emphasize points, which makes for a very entertaining interview.

Larry Hite emphasizes on a few things in his approach to the market.

Cut losses fast, and add to your winners
This is a huge philosophy for him, and to him, it applies to every aspect of life, not just trading.

Law on large numbers
This is key for all traders to understand as early as possible.
One single trade should never “make or break” your trading career.
This is where risk management comes into play, it’s the only way we can achieve the large number of trades in our lifetime.

We have to manage our money our way.
This means, we need to take responsibility for our own trading decisions.
Doesn’t matter what method you’re using, once you have made the decision, “This is how I want to trade”, then you need to stick to it.
Stick to it until you make another decision, to change the way you trade.
Only through consistency, can we know that results are produced by this method, and not some other random factor.
Only then can you build confidence, and this new confidence will reinforce the method you trade.

Investing isn’t watching a movie.
This is a great analogy, love it.
He says when going to a movie, we just buy a ticket and sit down and watch until the end of the movie.
This is not for investing.
For investing or trading, he wants to know the ending of the movie before he buys the ticket.
How he does this, is by putting in the hours and research to determine how well his strategies turn out.

There is so much more shared in Larry Hite’s interview!
At his age, you can still tell his mind is very sharp.
Click on this link to watch this wonderful interview with a grandmaster of systematic trend following.

 

If you’d like to find out more about systematic trading, click the banner below.

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Bulletproofing Your Portfolio – 3 Quick Tips To Grow Your Portfolio https://www.collinseow.com/smt-tv-bulletproofing-your-portfolio/ https://www.collinseow.com/smt-tv-bulletproofing-your-portfolio/#respond Thu, 23 Apr 2020 06:00:14 +0000 https://www.collinseow.com/?p=13029 Bulletproofing Your Portfolio: 3 Quick Tips To Grow Your Portfolio​ Let me share with you my take on it. Just click on the image below to watch the video and remember to like and subscribe to my channel!                     If you want to take your trading […]

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Bulletproofing Your Portfolio: 3 Quick Tips To Grow Your Portfolio

Let me share with you my take on it.

Just click on the image below to watch the video and remember to like and subscribe to my channel!

 

 

 

 

 

 

 

 

 

 

If you want to take your trading to the next level with me, click the image below!

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20th April Weekly Webinar Sneak Peak: Position Trading Long (New): GILD, Prior Position Signal Long: CTXS 6 Apr 5.2%, MRNA 6 Apr 47%, REGN 2 Mar 22%, ZM 17 Feb 65%, Weekly Swing Short (New): PTR, BCH, Weekly Swing Prior Short: RGLD (not trigger), TSCO (not trigger) https://www.collinseow.com/20th-april-weekly-webinar-sneak-peak-position-trading-long-new-gild-prior-position-signal-long-ctxs-6-apr-5-2-mrna-6-apr-47-regn-2-mar-22-zm-17-feb-65-weekly-swing-short-new-ptr-bch-wee/ https://www.collinseow.com/20th-april-weekly-webinar-sneak-peak-position-trading-long-new-gild-prior-position-signal-long-ctxs-6-apr-5-2-mrna-6-apr-47-regn-2-mar-22-zm-17-feb-65-weekly-swing-short-new-ptr-bch-wee/#respond Mon, 20 Apr 2020 08:46:27 +0000 https://www.collinseow.com/?p=13024 Hello everyone! This week Collin shares a list of scan results for today (20 Apr 2020), Position Trading Long New GILD Prior Position Signal Long CTXS 6 Apr 5.2% MRNA 6 Apr 47% REGN 2 Mar 22% ZM 17 Feb 65% Weekly Swing Short New PTR BCH Weekly Swing Prior Short RGLD (not trigger) TSCO […]

The post 20th April Weekly Webinar Sneak Peak: Position Trading Long (New): GILD, Prior Position Signal Long: CTXS 6 Apr 5.2%, MRNA 6 Apr 47%, REGN 2 Mar 22%, ZM 17 Feb 65%, Weekly Swing Short (New): PTR, BCH, Weekly Swing Prior Short: RGLD (not trigger), TSCO (not trigger) appeared first on The Systematic Trader | Trading Courses.

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Hello everyone!

This week Collin shares a list of scan results for today (20 Apr 2020),

Position Trading Long
New
GILD

Prior Position Signal Long
CTXS 6 Apr 5.2%
MRNA 6 Apr 47%
REGN 2 Mar 22%
ZM 17 Feb 65%

Weekly Swing Short
New
PTR
BCH

Weekly Swing Prior Short
RGLD (not trigger)
TSCO (not trigger)

Start to look for selling opportunity in the next 1-2 months.

Click the picture below to watch the video and find out more.

Enjoy the video!

If you’d like to learn more about systematic trading, click the banner below.

The post 20th April Weekly Webinar Sneak Peak: Position Trading Long (New): GILD, Prior Position Signal Long: CTXS 6 Apr 5.2%, MRNA 6 Apr 47%, REGN 2 Mar 22%, ZM 17 Feb 65%, Weekly Swing Short (New): PTR, BCH, Weekly Swing Prior Short: RGLD (not trigger), TSCO (not trigger) appeared first on The Systematic Trader | Trading Courses.

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Dr Patrick Liew: Own a Property With Little Or No Money Down https://www.collinseow.com/dr-patrick-liew-own-a-property-with-little-or-no-money-down/ https://www.collinseow.com/dr-patrick-liew-own-a-property-with-little-or-no-money-down/#respond Mon, 20 Apr 2020 06:24:01 +0000 https://www.collinseow.com/?p=13000 Yes you read that right. Collin recently did an online webinar interview with Dr Patrick Liew, famous for sharing how to own a property with little or no money down. It’s a bold claim, sounds incredible? It is, it is incredible that this man is sharing all of this amazing and invaluable insight with everyone. […]

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Dr Patrick Liew

Yes you read that right.

Collin recently did an online webinar interview with Dr Patrick Liew, famous for sharing how to own a property with little or no money down.

It’s a bold claim, sounds incredible?
It is, it is incredible that this man is sharing all of this amazing and invaluable insight with everyone.
In addition to sharing the concepts, he’s able to back it up with the latest up to date examples of his property purchases as well.

Okay Okay, back to the topic, owning a property with No Money Down?
I know what you’re thinking, “it’s not possible!” or is it?

As a matter of fact, it is very possible, many of Dr Patrick’s students have done it over the years.

More importantly, it is especially possible right now in the current crisis period, for YOU.
There were some skeptics in the room, but I’d say they were well satisfied with what they heard.

Before diving into the video, here are a few of the basics of property investment to get you up to speed.

 

Buy value

This means getting properties at prices which you have a very good chance to make money on when you sell. Dr Patrick Liew shares a couple of examples where you can find such properties.

 

Create value

This is much easier to do with a property than with a company of the stock you just bought last week.
This is because you have a lot of control over the property. You are the owner. The Boss.
Dr Patrick gives some really good examples of what you can do with a property to raise its value instantly.
Once you create value, naturally you can sell your house for a higher price.

 

Catalysts

This is the external factors which would affect the price of your property in future.
Usually if the government or private developers are upgrading amenities or building new infrastructure around the area, it’s very likely that the prices of property in the area are going to increase once these upgrades are rolled out.

 

The Master Plan

Which brings us to a very interesting tool which allows us to predict the future.
The URA Master Plan is Singapore government’s outline of how they wish to develop the land in our little country.
Learning how to read this master plan will basically enable us to predict the future of developments in an area. And that means getting into the market early at a lower price 😉

So there you have it, you’re all set for the interview video.
Just click this link and start on your journey to owning a property with little to no money down.

 

If you’d like to learn more about Collin’s special system for trading the stock market, click the banner below.

 

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Tom Basso Shares How He Takes Control of His Trading Psychology https://www.collinseow.com/tom-basso-shares-how-he-takes-control-of-his-trading-psychology/ https://www.collinseow.com/tom-basso-shares-how-he-takes-control-of-his-trading-psychology/#respond Fri, 17 Apr 2020 09:44:25 +0000 https://www.collinseow.com/?p=13002   Tom Basso, otherwise known as Mr Serenity, believes your attitude to trading should be to Enjoy The Ride! Tom was featured in a famous trading book which I’m sure you’ll recognize, Market Wizards, as Mr Serenity. He also has his own website, called enjoytheride, where he archives all his trading knowledge. His focus on […]

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Tom Basso

Click this picture to go to Tom Basso’s interview right away

 

Tom Basso, otherwise known as Mr Serenity, believes your attitude to trading should be to Enjoy The Ride!

Tom was featured in a famous trading book which I’m sure you’ll recognize, Market Wizards, as Mr Serenity.
He also has his own website, called enjoytheride, where he archives all his trading knowledge.

His focus on the mental aspect of trading is admirable.
A lot of traders don’t realize how important this aspect is until after a year or two of live trading.
In my experience, the ladies pick up on this sooner than the guys.
However, whether they can do something about it is entirely up to the individual.

Much like the TradersGPS, Tom Basso’s trading is entirely automated.

Tom’s logic to each aspect of his approach to trading, is almost entirely centric on managing his psychology.
He elaborates on how he goes about doing that in this interview. It enables him to follow his strategy and manage risk in the long run.

This is an invaluable idea which traders need to embrace:
There is no right or wrong way, just what’s suitable for you as an individual.
I’m sure you’ve heard this a lot, but do you know what this really means?
Tom gives this great discussion during the interview which gives viewers more clarity.

Tom Basso also delved deeper into his trading, even providing some technical strategies which he currently uses.
Firstly, he views trading in 3 parts, the buy/sell engine, the risk management engine and our mental engine.

For his risk management, Tom advocates a volatility approach, with the trader’s appetite for volatility as the focus.
For Tom, this helps him be at ease emotionally with his portfolio positions because the value of his portfolio is more stable.
He elaborates a lot more on this during the interview.

For the 3rd engine, trading psychology, Tom also gives so much information in the short time that we had with him.
He points out specifics in the psychological aspect of trading, and how you can increase your awareness of this area as it relates to you.
Even giving some very actionable pointers on how you can improve your trading psychology.

Check out this insightful interview with Tom Basso by clicking here.

 

If you’d like to learn more about systematic trading, click the banner below.

 

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