Investing is not just about knowing what stocks to buy.
In order to know what stocks you should buy, you first have to know what to avoid.
Over the years, there have been a number of high profile stock disasters in the Singapore stock market.
In 2013, the massive S$8 billion penny stock crash involving shares of Blumont Group, Asiasons Capital and LionGold Corp left a mark on the psyche of Singaporean investors.
Two years later, Noble Group was rocked by allegations from an anonymous group, Iceberg Research. The company has never really recovered from the events — and it is now going through a painful restructuring.
More recently, Hyflux made the news when the company was unable to pay its dues.
The water-treatment company is in the midst of securing a financial saviour, but it is likely to come at a cost of heavily diluted shares.
Without a doubt, the stock mishaps above are painful for the shareholders involved. We would not wish that on anyone.
At the same time, we do think that it is quite possible to avoid such companies. This week, Royston Yang outlines four warning signs that should make you cringe as an investor.
Click to read:
Protect Your Wealth: 4 Red Flags That Should Make You Cringe
Major share price declines do not always signal that a company is dead and buried.
Take Hongkong Land Holdings Limited (SGX: H78) for instance.
It’s no secret that the social unrest in Hong Kong, where most of Hongkong Land’s properties are located, has had an impact on the city.
Yet, if we take time to read through the updates from management, we will see that there are some positive signs as well. Chin Hui Leong outlines his thoughts in the article below.
Click to read:
3 Reasons to Be Optimistic for HongKong Land’s Share Price
Meanwhile, the Singapore REIT space continues to be a hotbed of mergers and acquisitions.
The latest proposed merger involves Frasers Logistics & Industrial Trust (SGX: BUOU) and Frasers Commercial Trust (SGX: ND8U). The end result is a combined REIT that is expected to be worth S$4.2 billion.
But is bigger always better? Royston Yang, who is a shareholder of Frasers Logistics & Industrial Trust, gives his personal take.
Click to read:
5 Reasons FLT-FCOT is a Great Merger
And just like that, we are into the final month of the year. The Smart Investor is working hard to gear up for the new year. Stay tuned…
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None of the information in this article can be constituted as financial, investment, or other professional advice. It is only intended to provide education. Speak with a professional before making important decisions about your money, your professional life, or even your personal life. Please refer to the individual articles for stock ownership disclosures.
