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  • Philip Fisher's Fifteen Points To Look For In A Common Stock – Part 1 Of 3

    Hi Investors ,

    We would like to share it with you Philip Fisher's , The Investment Secrets in Common Stocks and Uncommon Profits ,fifteen things that a successful investor should look for in his or her common stock investments.

    Philip Fisher3

    About Philip Fisher ( 1907- 2004)

    Greatest investments minds in history
    Developed a buy-and-hold value and growth model for investments
    Wrote several books one of which is watershed Common Stocks and Uncommon Profits
    First to introduce the now-famous "scuttlebutt" approach that encouraged investors to develop a deep understanding of his or her investments by thoroughly analyzing the financial statements, interviewing managers, competitors, employees, vendors, and customers.

    1. Does the company have products or services with sufficient market potential to make possible a sizeable increase in sales for at least several years?

    A company must have a competitive edge to offer product and service which helps the company to make more money for themselves and also help other business to make money!

    2. Does the management have a determination to continue to develop products or processes that will still further increase total sales potential when the growth potential of currently attractive product lines have largely been exploited?

    The company you are looking into investing must be looking into ways to create more business opportunities.

    3. How effective are the company's research and development efforts in relation to its size?

    Is the company overspending or under spending as compared to other companies in the same general field? By comparing, conclusion are drawn both as to the importance of a company's research effort in relation to the competition and the amount of research per share of stock that the investor is getting in a particular company.

    4. Does the company have an above-average sales organization?

    No matter how good a product is, without sales, advertising and distribution, survival is impossible!

    5. Does the company have a worthwhile profit margin?

    Study a company's profit margin - determine the number of cents of each dollar of sales that is brought down the operating profit with comparison to different companies in the same industry for a series of years.

    Next week , we will share the next 5 points .

    Free-VIP-Workshop-300x233

    Cheers!

    Mumtaj

    Programme Manager

    Mind Kinesis Value Investing Academy

    Tags: Investment
    Jun 08 11:22 PM | Link | Comment!
  • REITs Part 2 – Health Care REITs

    Hi Friends,

    This is the part 2 on the follow up discussion on Real Estate Investment Trusts (REITs). In the first post, we look into Retail Reits which are basically REITs that hold onto shopping malls as their property. You can read the post here

    www.investment-in-stocks.com/reits-part-.../

    Today, lets look into another type REIT which I personally like - Health Care REITs.

    For Health Care REITs, these are REITs that hold properties which are rented to tenants who operate healthcare services, namely, Hospitals and Nursing Homes.

    And why do i like it, because of the stability of tenant. How often do we see a hospital changing locations? Almost never. And what does that mean? Just imagine…

    The building that Mount Elizabeth Hospital and Gleneagles Hospital are operating in, belongs to you! And every year, they will pay you rental!

    tn_photo_335

    Mount E

    My personal thought: Wow! How wrong can this investment go?

    Well, that can happen if you are holding onto Parkway Life REIT. (In fact, you are holding much much more than just 2 hospitals!) For more info, see: www.plifereit.com/portfolio/

    Before you get too excited, let me help you become even more excited with these benefits:

    1) The leases is usually about 15 years (15 years of relatively certain rental income!)

    2) Most of the main tenant will take care of the operating expenses, taxes and insurances.

    3) The lease usually comprises of a base rent indexed to inflation (we can at very least safe guard against inflation) PLUS a certain percentage of the revenues of the tenant! (Wow! We will almost be certain to beat inflation!)

    Now, what is the downside?

    1) One possible downside is possibility limited organic growth. But remember that rental collected involves some percentage of revenue from hospital and nursing homes. Given the trend for medical demand in Asia, this may not be too much of a big concern if you are interested in income.

    2) Credibility of Tenants. This is more of a due diligence that we need to make. The tenants should be credible hospitals/ nursing homes, otherwise, a 15 year lease can't protect us. And in order to find another tenant in event the current tenant winds up, may not be as easy as the building is set up and located for health care services.

    3) Foreign Exchange Risk. The REITs we have in Singapore are holding onto quite a number of overseas properties, so we need to understand that we are therefore subjected to Foreign Exchange Risk.

    So here are the 2 REITs we have access to in SGX:

    REIT Name

    Description

    First REIT

    Hospitals (10) + Hotel (Indonesia - 1) + Nursing Home (Singapore - 3)

    ParkwayLife Reit

    Hospitals + Nursing Homes = 44

    Source: reitdata.com

    In the net few postings, we will continue to explore into the amazing world of REITs, until then:

    Free-VIP-Workshop-300x233

    To learn more about how to invest, join us in our Free Investing Workshop at <<valueinvestingprogramme.com>;>

    Sean Seah
    - See more at: www.investment-in-stocks.com/#sthash.nqG...

    May 02 2:50 PM | Link | Comment!
  • REITs Part 1 – Retail REITs

    Hi friends,

    Would you like to own multiple properties and collect rental? Well REITs (Real Estate Investment Trust) is one way that we can do it. Just imagine putting aside some money every month to purchase a portion of some properties. Given time, you would have open up a pretty decent stream of rental income.

    Screen Shot 2014-04-24 at 12.48.16 PM

    As investor, we need to understand that there are different types of REITs holding onto different types of properties. In this post, I will focus on probably the simplest to understand - Retail Reits.

    I find it the simplest to understand as most of us have some form of interaction with these properties as we need to shop for our daily neccessities or would visit a shopping mall during weekends for entertainment and to relax.

    Now, in my opinion, the advantage of investing in Retail Reits is,

    1. Simple to Understand: As mentioned, it is pretty simple to understand. Hold a mall and rent it to businesses.

    2. Potential of Increase in Dividends (NYSEARCA:DPU) due to scarcity of land.

    3. Transparent: We can easily visit a mall that the REIT is managing and see if there are tenants there.

    But what are the things we need to take note of? (These can be applied to other types of REITs as well)

    1. Gearing Ratio: This is how much the REIT is borrowing. Just as if we are investing in a property, we like to have some form of leverage, but not too much.

    2. Land Lease: Personally, I will keep an eye on the time left on the lease as the land is not freehold. This will mean that when the lease is up, the REIT will have to pay a fee to extend the land lease and investors will need to prepare for that in terms of loan by REIT or share issues.

    3. Tourism Data: This applies more Urban REITs.

    4. Local Economy: This applies to Suburban REITs.

    Well, all in all, if the confidence in this data is there, and the price of the REIT is attractive (based on dividend yield and NAV), i will love to own a piece of Retail REIT.

    Specifically, these are the Retail REIT we can look into:

    REIT Name

    Description

    Lippo Malls Tr

    Retail (Indonesia)

    OUE Htrust

    Hotel (69%) + Retail (31%)

    Mapletree GCC Tr

    Retail + Office (China + HK)

    OUE COMMERCIAL REIT

    Retail + Office

    Frasers Com Tr

    Office + Retail (5)

    Frasers Cpt Tr

    Retail (5) + 31.17% of Hektar (MREIT)

    CapitaR China Tr

    Retail (China) - 10

    StarhillGbl Reit

    Retail (87.2%) + Office (12.8%) by Revenue

    Suntec Reit

    Retail + Office

    Mapletree Com Tr

    Retail + Office

    Fortune Reit HKD

    Retail (NYSE:HK)

    CapitaMall Trust

    Retail (16) + Office

    CapitaCom Trust

    Office (65%) + Retail (21%) + Hotel (14%)

    SPHREIT

    Retail (2)

    Source: reitdata.com

    We will discuss more on other REIT type and other things to look out for.

    In the meantime, do check out this research from OCBC done in 2012 for an detailed understanding of Retail REITs.

    www.ocbcresearch.com/pdf_reports/strateg...

    Cheers

    Free-VIP-Workshop-300x233

    To learn more about how to invest, join us in our Free Investing Workshop at <<valueinvestingprogramme.com>;>

    Sean Seah
    - See more at: www.investment-in-stocks.com/#sthash.w4t...

    Apr 25 6:50 AM | Link | Comment!
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