Value trap, free float and dead stocks
Jan 26, 2015 16:28:35 GMT 7
oldman, odie, and 1 more like this
Post by zuolun on Jan 26, 2015 16:28:35 GMT 7
Definition of Value Trap — A stock that appears to be cheap because the stock has been trading at low multiples of earnings, cash flow or book value for an extended time period. Stock traps attract investors who are looking for a bargain because these stocks are inexpensive. The trap springs when investors buy into the company at low prices and the stock never improves. Trading that occurs at low multiples of earnings, cash flow or book value for long periods of time might indicate that the company or the entire sector is in trouble, and that stock prices may not move higher.
"The free float of a listed company must be greater than 15% and the free float includes portfolio investments, nominee holdings and holdings by investment companies. A stock must also trade with a median daily turnover value of at least 0.05% of the value of its free float-adjusted shares in issue for at least 10 out of the last 12 months."
FNN — Free float < 15%
Yanlord — Free float at 15%
CentraLand — Free float at 11.9%
Chemoil — Free float < 10%
Forterra Trust — Free float < 10%
Synear — Free float at 15%
The new FTSE ST Index with 30 stocks
10 December 2007
The Singapore benchmark index will be leaner with 30 stocks compared with the current 48.
Singapore Press Holdings, Singapore Exchange and FTSE Group have announced that the revamped Straits Times Index as well as the other 18 new indices of the FTSE ST Index Series will go live on 10 January 2008.
The revamped STI will comprise 30 blue-chip companies on the SGX mainboard, ranked by market capitalisation as of 31 August. The stocks have passed FTSE’s international methodology, particularly its free float and liquidity requirements.
According to FTSE’s guidelines, the free float of a listed company must be greater than 15% and the free float includes portfolio investments, nominee holdings and holdings by investment companies. A stock must also trade with a median daily turnover value of at least 0.05% of the value of its free float-adjusted shares in issue for at least 10 out of the last 12 months.
The revamped Straits Times Index and the new FTSE ST Index Series are aimed at stimulating the development of index-related products to serve diverse market needs. This in turn offers investors wider investment choices and opportunities in the Singapore market. With the availability of more indices, more listed companies can expect to be included in an index and achieve higher visibility with international fund managers and investors.
The indices should also result in more active trading of Singapore-listed stocks and this is instrumental in creating a more vibrant Singapore securities market.
The new STI will be a leaner one compared with the current, which has 48 stocks. Four new stocks will be added, while 22 will be dropped. Most of those coming off the index will be moved to a separate new mid-cap or a small-cap index.
The new additions to the STI are shipbuilder Yangzijiang Shipbuilding, palm oil giant Wilmar International, real estate developer Yanlord Land Group and aircraft servicing firm SIA Engineering.
The 18 new indices in the FTSE ST Index Series include an index series, sectors indices and a China-themed index made up of Chinese companies listed on the Singapore exchange that are among the top ranked according to the FTSE methodology. The China-themed index was created to reflect the increasing significant representation of mainland stocks in the Singapore market.
Trial values of the revamped STI and the other 18 new indices are already available. The trial values are meant to facilitate technical testing and do not replace the current STI values. FTSE Group deputy chief executive Donald Keith notes the trial index calculation period is an important element in the transition process and adds transparency for market users.
The composition of the new FTSE ST Index to go live on 10 Jan 2008:
Capitaland
Capitalmall Trust
City Developments
Cosco Corporation Singapore
DBS Group Holdings
Fraser and Neave
Genting International
Hong Kong Land
Jardine Cycle &amp;amp; Carriage
Jardine Strategic
Keppel Corporation
Keppel Land
Neptune Orient Lines
Noble Group
Olam International
Overseas Chinese Banking
Sembcorp Industries
Sembcorp Marine
SIA Engineering
Singapore Airlines
Singapore Exchange
Singapore Press Holdings
Singapore Technologies Engineering
Singapore Telecom
Starhub
Thai Beverage
United Overseas Bank
Wilmar International
Yangzijiang Shipbuilding
Yanlord Land Group
In any stock market, it's all about supply and demand. From a chartist's point of view; buy stocks with good momentum and volume, which can reward you a good profit. Do not buy stocks with low or no volume and sit on them, these stocks are dead and dire cheap for a reason. (Bottom-fishing is the toughest gameplay in the stock market.) Watch the video clip and listen carefully from 1:50 to 1:59... the speaker has revealed an important fact about the stock market gameplay. "In the stock markets today, there are good companies that are overpriced and there are worthless companies that are overpriced. If you are going to be a fool and pay absurd prices because you think that a greater fool will appear in the future, make sure you buy a goat and not a monkey."
Do not buy stocks that even worms also won't grow on them!
"The free float of a listed company must be greater than 15% and the free float includes portfolio investments, nominee holdings and holdings by investment companies. A stock must also trade with a median daily turnover value of at least 0.05% of the value of its free float-adjusted shares in issue for at least 10 out of the last 12 months."
FNN — Free float < 15%
Yanlord — Free float at 15%
CentraLand — Free float at 11.9%
Chemoil — Free float < 10%
Forterra Trust — Free float < 10%
Synear — Free float at 15%
The new FTSE ST Index with 30 stocks
10 December 2007
The Singapore benchmark index will be leaner with 30 stocks compared with the current 48.
Singapore Press Holdings, Singapore Exchange and FTSE Group have announced that the revamped Straits Times Index as well as the other 18 new indices of the FTSE ST Index Series will go live on 10 January 2008.
The revamped STI will comprise 30 blue-chip companies on the SGX mainboard, ranked by market capitalisation as of 31 August. The stocks have passed FTSE’s international methodology, particularly its free float and liquidity requirements.
According to FTSE’s guidelines, the free float of a listed company must be greater than 15% and the free float includes portfolio investments, nominee holdings and holdings by investment companies. A stock must also trade with a median daily turnover value of at least 0.05% of the value of its free float-adjusted shares in issue for at least 10 out of the last 12 months.
The revamped Straits Times Index and the new FTSE ST Index Series are aimed at stimulating the development of index-related products to serve diverse market needs. This in turn offers investors wider investment choices and opportunities in the Singapore market. With the availability of more indices, more listed companies can expect to be included in an index and achieve higher visibility with international fund managers and investors.
The indices should also result in more active trading of Singapore-listed stocks and this is instrumental in creating a more vibrant Singapore securities market.
The new STI will be a leaner one compared with the current, which has 48 stocks. Four new stocks will be added, while 22 will be dropped. Most of those coming off the index will be moved to a separate new mid-cap or a small-cap index.
The new additions to the STI are shipbuilder Yangzijiang Shipbuilding, palm oil giant Wilmar International, real estate developer Yanlord Land Group and aircraft servicing firm SIA Engineering.
The 18 new indices in the FTSE ST Index Series include an index series, sectors indices and a China-themed index made up of Chinese companies listed on the Singapore exchange that are among the top ranked according to the FTSE methodology. The China-themed index was created to reflect the increasing significant representation of mainland stocks in the Singapore market.
Trial values of the revamped STI and the other 18 new indices are already available. The trial values are meant to facilitate technical testing and do not replace the current STI values. FTSE Group deputy chief executive Donald Keith notes the trial index calculation period is an important element in the transition process and adds transparency for market users.
The composition of the new FTSE ST Index to go live on 10 Jan 2008:
Capitaland
Capitalmall Trust
City Developments
Cosco Corporation Singapore
DBS Group Holdings
Fraser and Neave
Genting International
Hong Kong Land
Jardine Cycle &amp;amp; Carriage
Jardine Strategic
Keppel Corporation
Keppel Land
Neptune Orient Lines
Noble Group
Olam International
Overseas Chinese Banking
Sembcorp Industries
Sembcorp Marine
SIA Engineering
Singapore Airlines
Singapore Exchange
Singapore Press Holdings
Singapore Technologies Engineering
Singapore Telecom
Starhub
Thai Beverage
United Overseas Bank
Wilmar International
Yangzijiang Shipbuilding
Yanlord Land Group
Do not buy stocks that even worms also won't grow on them!
