SG 88
SG 88
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avatarSG 88
2022-09-28

Corporate Life Cycle

Just like any other product life cycle, companies believe or not also have its life cycle. Starting from start-up, young growth, high growth, mature growth, mature stage and decline. Its all varies according to the industries the company operates within as well as infrastructure development and demand adaptation that enable it to be sustainable in future.Start - UpThis is where the inception of new product or service happened. revenue are low and initial start up costs are high mainly due to lack scalabiliy (economy of scale) as well lack revenue capitalisation.Business are in search for customers to fulfill their book orders. At this stage cash flow are tight or at negative territory, let alone profitability is not at foresight.Young GrowthThe business are experiencing rapid revenue growt
Corporate Life Cycle
avatarSG 88
2022-10-12

Managing Risk

The understanding that if one take higher risk, the greater is the return would be. Well that does not really hold true, it maybe totally the reverse the higher risk, the greater loss would be. Risk management would entail one to identifying and assessing (the downside) risk, crafting out strategies to manage such risk while maximising the returns (upside potential). Downside Risk By managing the downside risk, one would “prudently” manage the major adverse brings along with the investment. Invest with funds that you do not need in near term. Don’t buy from news, sell on rumours Diversify your portfolio, plan out riskier industries (Tech companies) Vs risk adverse (Consumer Staple companies). This would cushion against market volatility. Don’t put all your eggs in one basket. Arguably
Managing Risk
avatarSG 88
2022-07-15

Valuation - Discounted Cash Flow

It's the process of estimating the value of a company or investment based on the cash flow it expected to generate in the future at the present value date.Simplify the termsits basically gathering the necessary information in terms of the company’s ability to generate revenue (cash flow) at present or future period. Those future generating cash flow would need to discounted back to present value in order to measure apple to apple the monetary value worth of the company’s value.Components involved Weighted average cost of capital (WACC) It is the calculates cost of a company’s raise its funding, ranging from bonds, long-term debts, common stock, preferred stock and the likes. Cash flow generating It involves new feasible project that would be a game changer, distorting the norm of business
Valuation - Discounted Cash Flow
avatarSG 88
2022-03-23
I started my option trading only last Dec 21 when I open my Tiger Broker account. Since then I manage to get my position filled with favorable and adverse outcome.My Disappointed Options TradingMy bad option position (maybe not??). I have is Sell Put with $Palantir Technologies Inc.(PLTR)$ which allow me to earn some cashflows but at the same time, the share fall way below my Strike Price which was USD 17 on 21 Jan 22 and has since been on a downward trend until recently (USD 13.27). I've been holding the stocks even since as I believe it has long term potential since PLTR do not have any Debts in their Balance Sheet which will be less impactful when Fed's further quantitative easing come this May.My (consider) Most Succe
avatarSG 88
2022-10-06

Story Behind a Valuation

Value Creation In any successful business, comes with their “sauce of success”. Its amazing to understand the simple logic behind it Create more value than you can consume In any successful outcome, be it in life, career or business, creating value touches every walks of life. Take example, $Amazon.com(AMZN)$ was created for a simple reason, having an “enduring franchising” model by unlocking the power of internet, offering low prices, vast selection, fast delivery on top of that save customers time and effort. It took 14 years (58 quarters) after May 1997 initial public offering for $Amazon.com(AMZN)$ to make cumulative of $1.86 billion net income on fourth quar
Story Behind a Valuation
avatarSG 88
2022-06-16
$Palantir Technologies Inc.(PLTR)$A bit awkward....The Fed's annoucement on interest hike 75 bps tends to phase the market of having "bear coming out from jungle".https://www.google.com/amp/s/www.wsj.com/amp/livecoverage/federal-reserve-meeting-interest-rates-june-2022Somehow PLTR responded by maintaining the stock price at USD 8[Doubt] .What is sure that whether market noise or sentiments may be, only the Investors or Traders (for that matter) that having position is the sole decision maker that buy into the position. Do what's necessary in accordance to your game plan. Unless the fundamental of the company changes, all else of irrelevant.@TigerStars
avatarSG 88
2022-07-12

Capital Structure, What gives?

A Company’s Capital Structure refers to the mixture of equity and debt financing leveraged to finance its assets. Such mixture of equity and debt capital is consider as financing decision.Such financing decision would have direct effect to the weighted average cost of capital (WACC). With that in mind, any changes to the financing decision, would undoubtedly effect WACC.In any given organisation, the objective is surely to maximise shareholder wealth. To determine the wealth, is the measurement of future cash flows discounted at investors’ required return, ie WACC. The Present Market Value of a Company = Future Cash Flows / WACC Example:100 / 0.15 = 667100 / 0.10 = 1,000Therefore, looking for higher shareholder wealth = searching for lowest WACC. Questions: Which would be ideal blend betwe
Capital Structure, What gives?
avatarSG 88
2022-08-30
$Bed Bath & Beyond(BBBY)$whether its able to rebound in any terms not only rely on how its business model able to sustain in foreseeable future.Funding only play first part, subsequently BBBY would meant to get revenue in and manage its cost efficiently.Then it would be able to grow and rewards its stakeholders accordingly.Operating a chain of retail stores by selling a wide range of domestics merchandise, including bed linens and related items, bath items, and kitchen textiles; and home furnishings, such as kitchen and tabletop items etc either 953 stores as at Feb 2022, having 771 Bed Bath & Beyond stores in 50 states, the District of Columbia, Puerto Rico, and Canada; 130 buybuy BABY stores in 37 states and Canada; and 52 stores in
avatarSG 88
2022-09-30

Beyond Crisis

What happend during crisis? No doubts lots of negative sentiments would fall upon us as investors. Too focus on crisis that loss sight of what's beyond crisis  Loss faint in what we know and what framework that we builded  Looking for professionals that gives us comfort in times of crisis Sometimes, illussion over takes what has achieved by famous investors (Warren Buffett, George Soros and the likes) where major news would dwell into what they achieved vs what they mistakenly done. Afterall they are also human same as us, with some luck and skillset that overtime has improve tremendously.Surely Kraft Heinz Warren's investment mistake shows that not everyone is perfect. Astonishingly, passive investors beat active investors in the long run.Investing perspectiveHaving a portf
Beyond Crisis
avatarSG 88
2022-04-26
$Palantir Technologies Inc.(PLTR)$Still going strong after so many hammering from the Macro level[Duh] 

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