MARKETS GameStop short sellers are still not surrendering despite nearly $20 billion in losses this month

 Read? MARKETS GameStop short sellers are still not surrendering despite nearly $20 billion in losses this month

Short-selling hedge funds have suffered a mark-to-market loss of $19.75 billion year to date in the brick-and-mortar video game retailer GameStop, according to data from S3 Partners.

Still, short sellers mostly are holding onto their bearish positions or they are being replaced by new hedge funds willing to bet against the stock.

GameStop shares that have been borrowed and sold short have declined by just about 5 million over the last week, marking an 8% dip in the short interest, according to S3.

Most of the short covering occurred on Thursday, when the stock fell for the first time in six days.

Hmm ... very interesting!

There are sellers to match buyers!

 But only 8% dip in the short interest i.e. no massive short covering! Paper losses only. LOL!

Who are buying bloody high to fight this war?

War hasn't ended yet!

Let see who die first?

Short sellers or late buyers supporting this War?

Heroes always die first?

$5m profits are paid by short sellers and the rest of millionaires' profits are paid by who?

Read? What is the Greater Fool Theory?

DBS

 

STI correction Akan Datang??? (2)

Read? STI correction Akan Datang???

Dow drops more than 600 points Friday, suffers worst week since October amid GameStop trading frenzy

Bloody STI on Monday???

Yield of dreams: Investors have "a once in a lifetime opportunity" in blue chips (13)

Read? Yield of dreams: Investors have "a once in a lifetime opportunity" in blue chips (12)

With FY 20 final dividend is at $0.07 and estimated 2021 H1 dividends to be same level as 2020 H1 at $0.03

A new low of 7.6% yield has broken the Yield of Dream of double digits since 2002! 

Is this the End of the Old Rainbow and new Rainbow will rise from 2022?

SembCorp Industries (SCI): Bought @ $1.67 for Round 55

No more oily and smelly stock.

Can play for one more Round?

Read? SembCorp Industries (SCI): Bought @ $4.97 for Round 54

DBS

 

STI correction Akan Datang???

 SINGAPORE — Shares in Asia-Pacific fell in Thursday morning trade following an overnight plunge on Wall Street that wiped out the S&P 500′s 2021 gains and left it in negative territory for the year.

In Japan, the Nikkei 225 declined 2.01% in early trade while the Topix index shed 1.81%. South Korea’s Kospi also fell 1.77%.

Shares in Australia fell in morning trade, with the S&P/ASX 200 dropping 2.27%.

Huge Army of Fire Ants Can Kill An Elephant

 Read? Melvin Capital, hedge fund targeted by Reddit board, closes out of GameStop short position

Melvin Capital closed out its short position in GameStop on Tuesday afternoon after taking a huge loss, the hedge fund’s manager told CNBC.

CNBC could not confirm the amount of losses the firm took on the short position. Citadel and Point72 have infused close to $3 billion into Melvin Capital to shore up its finances.

Melvin manager Gabe Plotkin told Andrew Ross Sorkin that speculation about a bankruptcy filing is false.

Hmm .. How? Someone in Singapore starts the lead for an army of Fire Ants for SGX's most hated and shorted stocks?

STI at 3,000 Psychological Level! (3)

Read?  STI at 3,000 Psychological Level! (2)

STI U-turning???

Investment portfolio has recovered above pre-COVID-19 level and then u-turning to the next Crash???

Akan Datang!

Portfolio Management Concentrate (Verb) or Concentrate (Noun) (Time for a refresh)

Concentrating or Diversifying your investment portfolio?

Endless debate or advice from Gurus or FAs!

Why concentrate must be Verb and not Noun?

Read? Portfolio Management Concentrate (Verb) or Concentrate (Noun)

For investment portfolio management; many Gurus are advising retail investors not to concentrate (Verb) as it is very risky since most retail investors don't have that level of competency to concentrate (Verb) yet.

But; for Uncle8888's portfolio management it is currently concentrate (Noun) with a few freehold core holding and a large war chest. How risky?

Concentrate as verb or noun?

See any difference?

From Saver to Koala/Panda Retail Investor in SGX Only

Does it mean we all must try our best to invest?

Kep Corp : Bought @ $5.64 for Round 98

Read? 50-50 Bet On Temasek Not Walking Away

Itchy hand and clicked buy to tikam tikam for kopi or bitter pandols!

Next week FY result and briefing on progress of 100 days plan!

Each of the S&P 500, Dow and Nasdaq ended the regular session at record closing highs

Overnight stateside, the Dow Jones Industrial Average rose 257.86 points to a new closing high of 31,188.38. The S&P 500 also gained 1.4% to a record close of 3,851.85. The Nasdaq Composite soared almost 2% to finish its trading day at 13,457.25, also touching a fresh record. The moves came as Biden was sworn in as the 46th president of the United States.

Reliable conglomerates in an unreliable world

Read?  Reliable conglomerates in an unreliable world

WHAT must it be like to own a business that could do well under any economic condition? It could be a bit like running an ice cream stand that also sells umbrellas. It does not matter whether it is sunny or pouring with rain - the tills should keep ringing, regardless of weather conditions.

Owning shares in a conglomerate is a bit like being a shareholder of that canny ice-cream vendor. Conglomerates are made up of unrelated businesses in which they have stakes - and often quite significant stakes.

The key is that these separate subsidiaries should operate independently. That said, the parent company, often because of its considerable ownership in them, will probably want to have some input into how they are run.

There is something else that is appealing about conglomerates. They can access capital, even when market conditions might be unfavourable. A well-run conglomerate could, for instance, deploy cash generated from one part of the group to another that might be able to generate a better return.

To be able to deploy that cash, conglomerates must generate the cash in the first place. A useful way to assess this is to look at their free cash flow yield, which is a measure of the amount of available cash generated compared to the market size of the business.

This cash can be used to pay down debt, make share buybacks, and pay dividends. In theory, a conglomerate could pay all its free cash as dividends. But they do not.

The median free cash flow yield for conglomerates is a reassuring 9.4 per cent. The reason is because conglomerates tend to hold back capital investment, run down inventory, and enforce tighter cash collection procedures from their accounts receivable in a downturn.

These positive actions can help offset the reduction in earnings when times are tough. Reassuringly, the free cash flow yield is higher than the average dividend yield of 3.1 per cent. So, income seekers should be comforted knowing that dividend payouts are adequately covered by cash flow.

Show me the money

Speaking of dividends, conglomerates like to retain a significant proportion of their profits for internal use. The average retention ratio for conglomerates is around 60 per cent. Some do not even pay dividends.

What is interesting is that there appears to be a tacit correlation between return on equity and annual total return. Companies that have achieved a high return on equity tend to also deliver high total returns for shareholders.

From an investor's perspective, conglomerates could be an interesting way to achieve diversification through just one company. Income investors might want to focus on those conglomerates with a high retention ratio, plus a high return on equity too. Together the two ratios could combine to deliver faster dividend growth.

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Hmm ... Kep Corp and Sembcorp Ind for income investing over the past two decades and continue to generate reliable income?

Olam

Read? Round 12 : Bought Olam @ $1.48

Sudden surge of more buying? Hmm ...

Fu Yu - One Big Step Up today!

Walau!

Read? Fu Yu - One small Baby Step Up Again!

Adding A Few More Extra Years Before Executing 3 to 4% Safe Withdrawal Rate

 Spur 14 January 2021 at 13:34:00 GMT+8

Hi Uncle8888,

Hoho, don't think you'll need to decumulate your SA/OA for many years to come!

Unless you're helping your kids to buy properties 😬

Reply

Read? My Sustainable Retirement Income For Life In Singapore - Panda/Koala Retail Investor And CPF Loving Citizen!!!

Read? Relating to SWR

ZERO compounding investment return

In addition to commonly known discussions on SWR and Bucket for FIRE or Retirement; how about transferring all investment income from investment portfolio during FIRE or retirement to Cash Reservoir. This model will more likely to be Safer Withdrawal Rate than Safe Withdrawal Rate by extending a few more years before executing SWR or decumulation of net worth's assets.

Properties in Singapore only Go UP!!!

 Valerie Kor

Fri, 15 January 2021, 6:00 am

SINGAPORE (EDGEPROP) - The top loss of the week during the week of Dec 29, 2020, to Jan 5, 2021, was incurred by the seller of a four-bedroom unit on the seventh floor at St Regis Residences Singapore in District 10. The 2,594 sq ft unit was bought in December 2007 for $8 million ($3,084 psf) and sold on Jan 5 for $4.8 million ($1,850 psf). The seller therefore saw a 40% loss of $3.2 million, which is annualised at 3.8% over 13 years.

St Regis Residences Singapore is a 173-unit condominium along Tanglin Road. Developed by City Developments, it is located next to The St Regis Singapore hotel and is a short drive to the Orchard Road shopping belt and Tanglin Mall. The 999-year leasehold project was completed in 2008.

That was in Jul 2007. Bull market! (Good time to refresh!)

 Read? That was in Jul 2007. Bull market!

That was something Uncle8888 didn't get it in 2007 and then the punishment in 2008 came from his foolishness and greediness in 2007!

Now, he has been seeing more and more retails shouting out their big winning investment portfolio! 

Hmm .. middle of Bull or near end of Bull in 2021/2022?

STI at 3,000 Psychological Level! (2)

 Follow the Line and Dots???

Where Does The Money In The Stock Market Come From? (6)

Read? Investing Made Simple by Uncle8888 (6) - About time to refresh it!

Read? Where Does The Money In The Stock Market Come From?

How does loss-making company make investors and traders rich?

Nothing from the company is given out as dividends, capital reduction or shares buy-back.

Where doe the money from the stock market come from?

Who are making you or them rich?

May be you are among those who are making them rich?

STI at 3,000 Psychological Level!

 

My Sustainable Retirement Income For Life In Singapore - Panda/Koala Retail Investor And CPF Loving Citizen!!!

 

Long-term Investing is a Game of Capital and Game of Strategies!

Moving from Game of Capital with Compounding Return to build wealth from the stock market to accelerate the journey towards to Financial Independence from 2000 to 2016 (17 years) and from 2017 onwards to calibrate War Chest by Timing the Market and then Time in the Market to generate sustainable investment income for life. A change of investing strategy for 100% cash out of investment income to fund household expenses. 

Spending 100% of investment income; but returning only the invested capital back to War Chest to Time the Market for capital recycling!

Is ZERO compounding return sustainable across market cycles?

Lion HST vs CSOP HS Tech

 

Missing Out Those Large Paper Gains or Sitting On Large Paper Losses. That Is Hell Of Difference!!!

Missing out those large gains?

Tesla or Bitcoin?

Jelly!!!

How do we really feel when we cool down after some deep thought?

Are we still fooling ourselves?

When he missed those large paper gains?

He felt that he was that NOT smart enough! Alamak! Sianz. Sibei sianz! Walau!

Did he suffer any sleepless nights after seeing those assets price escalating or getting nightmares on missing those paper wealth?

NO!

What actually happened to him towards end 2008 during last GFC 2008/2009 when his real and paper losses escalated!

His emotions

From Alamak --> Walan --> Sianz --> Sibei sianz --> Worry --> Fear --> Sorry and bloody stupid --> Sleepless nights --> Nightmares --> Finally Bite the Bullets --> Heng ah! I have sold and Escalation in Lossses has ceased. No more nightmares. No more sorry! Only regrets!

It is far better to regret NOT smart enough to make more money in the market than to feel sorry and bloody stupid to lose back to Mr Market and even worse by losing our hard earned savings!

Read? 12 Years of Christmas and Two Lessons in Investing. (Good To Refresh Again)

Read? Can You Afford To Be Greedy When Others Are Fearful?

STI 2,993.19+86.22 (+2.97%)

Time for STI to catch up and don't let Koala/Panda investors down!

SGX : Sold @ 9.88

Read? SGX : Sold @ 9.48

Round 5-3 : ROC +16.1%,  214 days, B $8.48 S $9.88 (Highest price sold)

Round 7-2 : ROC +7.6%,  67 days, B $8.78 S $9.48 

Round 8 : ROC +4.6%,  15 days, B $8.89 S $9.33 

Round 7-1 : ROC +2.2%,  40 days, B $9.08 S $9.31 

Round 5 - 2 : ROC +9.1%,  112 days, B $8.48 S $9.28

Round 5 - 1 : ROC +5.9%,  102 days, B $8.48 S $9.01

Round 4 : ROC +8.5%, 6 days, B $8.01 S $8.74

Round 3 : ROC +8.8%, 12 days, B $8.21 S $8.99

Round 2 : ROC +13.6%, 3 days, B $7.46 S $8.52

Round 1 : ROC +12.3%, 61 days, B $6.87 S $7.76

STI 2,910.15+47.14 (+1.65%)

 STI playing catch up???

Warren Buffett's Worst 12 Stocks Lost Nearly $11 Billion

 Read? Warren Buffett's Worst 12 Stocks Lost Nearly $11 Billion

Read? New Investment Portfolio From Feb to Dec 2020 During COVID-19

LOL! 

Losing is part of the Game!

100% confirmed!

Buffet also loses his money! 

Meet the investment needs of the CPF

Read? Issuing limits raised for Singapore government securities and treasury bills

Read? CPF members added $1.6b to retirement funds from January to October, up from a year ago

THE issuing limits for government securities and treasury bills have been raised to meet Central Provident Fund (CPF) needs and cater to growing investor demand, with Parliament having voted to authorise this on Tuesday.

Special Singapore Government Securities (SSGS) are non-tradable bonds issued primarily to meet the investment needs of the CPF; Singapore Savings Bonds are issued to provide a long-term savings option for individual investors.

Hmm .. investment needs of the CPF??? 

To pay interests? Right?

SGX : Sold @ 9.48

Read? SGX : Sold @ $9.33

Round 7-2 : ROC +7.6%,  67 days, B $8.78 S $9.48 (Highest price sold)

Round 8 : ROC +4.6%,  15 days, B $8.89 S $9.33 

Round 7-1 : ROC +2.2%,  40 days, B $9.08 S $9.31 

Round 5 - 2 : ROC +9.1%,  112 days, B $8.48 S $9.28

Round 5 - 1 : ROC +5.9%,  102 days, B $8.48 S $9.01

Round 4 : ROC +8.5%, 6 days, B $8.01 S $8.74

Round 3 : ROC +8.8%, 12 days, B $8.21 S $8.99

Round 2 : ROC +13.6%, 3 days, B $7.46 S $8.52

Round 1 : ROC +12.3%, 61 days, B $6.87 S $7.76

No Real Investing Targets But Just Plan In 2021 For The Next Bear (2)

No buying plans for STI as it breaches 3000, then 3300, then 3600? - SMOL

He he Smol beat me to it.

I was wondering the same thing ... where's the warchest deployment chart for the next bull? - Spur

No Real Investing Targets But Just Plan In 2021 For The Next Bear

3Ms in Long-term Investing and Short-term Trading - Method, Mind and Money Management (Position sizing & War Chest)

The mind of a market survivor across 21 years of market and Bulls and Bears - Greed, Fear and Ignorance!

Our own Lessons learnt are the most practical and true lessons with 100% earnings/profits and losses from the Market. No other revenues relating to investing or trading so Uncle8888 has to get it RIGHT in the Market!

Read? Stock Market Is War - Part 4 (Re-visit)

Bull Market - How Greedy are we? How much is enough?

Bear Market - How Fearful are we? How much losses to cause us sleepless nights or drive us into depression?

Capital recycling or deployment in Bull Market or Capital deployment or switching in Bear Market? 

Which one to follow?

It all depends on Your Mind and Money Management!

Follow the Arrows!

No Real Investing Targets But Just Plan In 2021 For The Next Bear

 

Passive Compounding Return On Yearly CPF Interests ONLY Go UP!!!

Read? Passive Compounding Return On Yearly CPF Interests at 11% CAGR Over 15 Years

What are you waiting for?

Mai Tu Liao!

Do it now and get full year benefit! LOL!

Earn, mandatory CPF saving and save even more through VC and invest CPFIS!

The sure win magical compounding return that only goes UP across market cycles of Bulls and Bears! Uniquely for Singapore saver-investors!

More and more folks in Singapore have discovered this Magical Lamp and join the Force!

Read? CPF members added $1.6b to retirement funds from January to October, up from a year ago

See lor!

It only goes UP!

Proven!

Passive Compounding Return On Yearly CPF Interests at 11% CAGR Over 15 Years

Read? How I Accumulate $1M In CPF OA! (3)

Read? One Uncommon Way To Top Up CPF OA Through CPFIS

Read? How To Become CPF Millionaire? Two Approaches Path A or B?

CPF Interests has grown at 11% CAGR from 2005 to 2020 over the last 15 years with ZERO market volatility! 

Passive income for retirement!

Outperformers in 2020

 Put on record for next year and see how

New Investment Portfolio From Feb to Dec 2020 During COVID-19

Read?  21 Years Across Market Cycles Of Bulls And Bears From 2000 to 2020

The investment outcome and performance of stock pick looked quite similar!

Either they turned out to be the next batch of Touchstones, Sardines or Salted Fish!

Total number of different stocks bought and sold; or still holding : 11

21 Years Across Market Cycles Of Bulls And Bears From 2000 to 2020

 The Statistics :

1. Total number of different kinds of stocks bought and sold; or still holding : 58

2. What chips? Blue chips, Blue-Black chips, Mid chips, Small chips, Promising chips, Silly chip, and Dead chips. Uncle8888 has done them all!

3. Investment gains/losses : Multi-baggers, Touchstones, Sardines, Salted Fish, and Zero-baggers. All have!

4. Dividends : From Panadols to ease heartache to Funadols!

Read? After Point X In Long Term Investing, Panadols Can Become Funadols (Truly Passive Income)

5 Long-term investing and short-trading over 21 years: What is the outcome? 

Read? Peter Lynch on His Secret to Superior Returns (2)

HST : Bought @ $1.338 for Round 2

Read? LION-OCBC SECURITIES HANG SENG TECH ETF for Panda/Koala Investors in SGX Local Market

Below IOP price of $1.35

Are sellers cutting losses fast and also some sellers tio margin calls and forced selling???

Analysts project STI to reach between 3,000-3,200 by end-2021

 

TRADING WINDS DOWN FOR THE YEAR

Analysts project STI to reach between 3,000-3,200 by end-2021 (Put here for record. Chun bo?)

The Business Times on Tuesday reported that local market analysts are forecasting that the STI could reach 3,000-3,200 over the next 12 months.

The newspaper said CGS-CIMB’s Lim Siew Khee was the least bullish of those surveyed, with an STI target of 3,068 whilst RHB Securities set a 3,144 target.

DBS Equity Research’s target is 3,180, the same as UOB-Kay Hian, whilst Phillip Securities is the most bullish at 3,200.

DBS’s Yeo Kee Yan was quoted saying the current vaccine-led recovery optimism should see a return of the traditional sector rotation that accompanies a typical economic cycle.

He noted that banks, consumer discretionary and transportation stocks that are outperformers in the early recovery cycle have led the recent rebound, whilst “pandemic winners’’ like supermarkets, personal protective equipment makers and work-from-home beneficiaries have underperformed.

Paul Chew, Phillip’s research head was quoted saying a reversion-to-the-mean trade is expected in 2021.

“Sectors that suffered the most this year will recover as borders open and activities normalize’’ said Mr. Chew whilst Carmen Lee of OCBC Investment Research pointed out that value stocks tended to narrow the gap with growth stocks and small-cap stocks tended to show better returns historically during an economic recovery.

When Your Bank RM Called??? (6)

Read? When Your Bank RM Called??? (5)

Sillyinvestor 26 December 2020 at 11:29:00 GMT+8

Hmm CW,

You haven answer Hyom or I could not fathom enough. Any impact if interest rate raises? Is 10 years and is a long time

Reply Delete

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Doing some Maths to keep his mind functioning! LOL!

RM's illustration is based on projected income @ 4.75% return on top of guaranteed fixed monthly income and projected bonus.

Projected 4.75% return by RM may be too juicy so Uncle8888 used 3.25% to do his Maths!

Actually; the real investment gains from this Premium Financing plan will depend on how well Uncle8888 invests this free up $144K which was previously locked up as Cash asset under AUM in the Bank earning low interests.

Time for him to power up! LOL!

When Your Bank RM Called??? (5)

 Read? When Your Bank RM Called??? (4)

hyom 26 December 2020 at 09:09:00 GMT+8

Hi CreateWealth8888,

From reading your blog, it seems like you are a fan of CPF. To persuade a savvy CPF fan to buy an annuity is really quite an achievement for a salesman, even if the product is good.

If you don't mind, may I ask what is your rationale for buying the annuity? Mainly for the low interest? If interest rate shoots up later, are you allowed to exit? If yes, at what penalty?

I wish you all the best in this new annuity plan!

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“She could sell ice to Eskimos”  LOL!

Pointers are "

1. Single premium insurance also contributes to your AUM computation for service fees.

2. Surrender value at $160K is more than $144K loan at Day One so there will be NO margin call and NO penalty fee.

3. Just treat it as $144K margin account with your own free up cash of $144K to take advantage of lower interest rate environment over the next 10 year or at least till 2023 as indicated by FED

4. $144K free up cash for higher return to offset loan interest. You savvy investor. Right? LOL!

What are the options for Eskimo after buying Ice?

1. As Saver

Voluntarily CPF Contribution of $37,740 per year for the next 4 years

CPF Allocation rate for above 65

OA 1% SA 1% MA 10.5%

Since Uncle8888 has already reached MA BHS so 10.5% allocation in MA will flow into OA i.e. OA 11.5% SA 1%

$37,740 VC into CPF to earn total interest of $988 in year 1 (negative return on loan of $144K)

$37,740 VC into CPF to earn total interest of $988*2 = $1,977 in year 2 (likely to be positive return on loan of $144K)

$37,740 VC into CPF to earn total interest of $988*3 = $2,966 in year 3 (more likely to be positive return on loan of $144K)

$30,780 VC (Total $144K over 4 yrs) into CPF to earn total interest of $3,772 in year 4 to 20 (Repay loan with no penalty at breakeven point) and monthly income from Month 37 onwards

2. As Investor leveraging on own margin account without Margin Call

Learn from FIRE Masterclass Guru

Leverage on basket of S-REITs?

When Your Bank RM Called??? (4)

Read? When Your Bank RM Called??? (3)

After clearing his 5 years HDB housing loan 28 years ago and becoming debt free; now Uncle8888 is back into debt with his POSB Front Page showing "Cards and Loans" in RED whenever he logged in.

Interest rate payable for Month 1 is 0.99%

Countdown to Month 37 for monthly income from annuity plan. Not sure got kena snake oil into taking advantage of leveraging on lower interest rate over the next 10 years???

One of Jesse Livermore's MONEY-MANAGEMENT RULES that he failed to follow his own rule strictly

Turn paper profits into real money periodically. Take a percentage of your winnings and put them in a safe place, like the bank, or bonds, or an annuity. Cash was, is, and always will be king.

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Uncle8888 follows this money-management Rule even more kiasu and kiasi by transferring all winning profits and dividends to his cash reservoir as retirement income for spending. He will never lose back a single cent of his investment income ever again! LOL!