Thursday, August 22, 2013

Singapore Blue Chips Bargain? My views on JMH & DBS

To my dearest investment club readers!

Its some times since I last wrote about my thoughts, recently I read a article by a local SG Online Investment Forum Editor's article about blue chip bargains (http://www.fool.sg/2013/08/22/singapore-blue-chip-bargains/), these blue chips are all above $4 at least. In case you wonder, Motley Fools is a popular investment forum website in United States, and they launched a Singapore "startup" version with selected articles contributors. These articles writers frequently dispense nuggets wisdoms on shares investments along with REITs, Trusts and so on.

Now back to the blue chips, I found as (described in the above article) several blue chips have fallen to quite attractive price, I've attached some charts (a pic speaks thousands words).


















The line I've drawn, basically connects all the major bottoms in the past 1-2years, and hint at current price of Jardine Matheson Holdings Limited, JMH 400US$ (J36) & DBS near their potential bottoms. Of course, this assume we are not entering into recession cycle, and thus the price should bounce off around the "support line" and continue its long term uptrend. In the long term, the inflation would mean that the stock prices will continue to rise, as long as the companies maintain its growth (at the same rate will do!).

If you are wondering, how rich I must be, to afford 1 lot (1000shares) of JMH whose closing price on 22 Aug 13 was US$54.89 & cost US$54,890 per 1000share... The answer is no, I cant afford that,but  if you ask around, there is an option to trade "unit share" which is basically mini-lots at 100share per mini-lot. This allows investors to trade even the dearest blue chips in Singapore & be a shareholder in the company.

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