What’s on my Stock Watchlist?

Bf Gf -Watchlist

Bf Gf Watchlist

When is it going to come?  Waiting for a correction in the markets is like waiting for rain to fall on the Sahara desert.  I think I have been waiting for a big correction since 2012.  I look on in envy as my investor friends whoop and cheer as the Shang Hai and Hong Kong index went into free fall mode earlier this week.  You see, I am totally unfamiliar with the China and Hong Kong market.  I can only listen to their enthusiastic discussions about what stock to buy and throw in lame comments like:

“I can’t think of any strong business in Hong Kong.”

“Seems like Hong Kong is property crazy huh?”

“Did you see that Greek guy crying outside the bank?”

“So yeah do you think Jon Snow is going to come back?”

 

Curse my circle of incompetence!

 

So as I continue praying to the stock market gods for a long-overdue correction, I have formulated a watch list of companies that I am eyeing.  I am like a window-shopper who can’t bear to buy a fully-priced item, and will walk by the shop window 2-3 times a week, looking in anticipation for a discount to appear.  But alas, no discount.  The price keeps getting higher for most of my items.

 

I have separated my watch lists into 2 categories, Dividends and Growth.  I will only elaborate briefly on each stock as I haven’t fully researched some of them yet.  Also, there are seriously quite a number of stocks here and to do a write-up for each one is not only time-consuming, but too long for a blog post.  Before I go into my watch list, please allow me to talk like a lawyer:

 

*Disclaimer*

The information contained in these pages is not intended to provide professional advice and should not be relied upon in that regard. It also does not have any regard to your specific investment objective, financial situation and any of your particular needs. Any views, opinions, references or other statements or facts provided in this web-site are personal views of the authors of the bfgfmoneyblog.com and are not supported, sanctioned or endorsed by any group or corporation.

 

Alright, here’s the watch list:

 

For Dividends

 

Vicom –  The darling stock for Singapore’s value investors.  However, the million dollar question is –  how much is Setsco contributing to its income and profits now?  But if they continue raising dividend every year, I will happily take it as a good sign.

Kingsmen Creatives – I have my apprehensions about the Events Industry but Kingsmen financials are really too solid for me to ignore. I have to admit that I am tempted.  I have yet to do thorough research on this stock though.

Silverlake Axis – An interesting company with high recurring revenue.  But, when the director talks about how they are in the business of game theory, I feel extremely confused.  I have to admit, this may be dropped out of my watch list soon due to my inability to understand the business. More research needed.

Saizen Reit – This company is able to do long-term borrowings (up to 10 years) and has a strong management that delivers stable DPU for many years.  They also have a track record of selling properties at 20% higher than the valuation they record in their financial statements.  I am still torn between allocating money for a pure dividend play versus capital gains or growth.  On one hand, I feel like I need the diversification, on the other hand, my capital seems too small for dividends to make a big impact.  Decisions, decisions… hmmm…

 

For Growth

 

PayPal – I got a bone to pick with PayPal.  A lot of my passive income, (from sources other than dividends), is transferred to me via PayPal.  Each time it goes through me, PayPal takes an almost 4% cut.  Carl Icahn has pushed for PayPal to split from Ebay.  Apparently PayPal has been experiencing strong growth for the past 10 years.  I just want to own PayPal shares so I don’t feel so bad each time it deducts money from my transfers!

Under Armour – This company is now in 2nd place for biggest retailer of sporting apparel.  The entrepreneur story behind its Founder, Kevin Plank is also awe-inspiring.  Financials are extremely strong.  BUT – it’s current valuations seem too hefty for me.  Waiting for a fall…

Facebook – I am loving Facebook more and more each day.  But its trading at PE 80+ makes it hard for me to pull the trigger.  Its financials are solid and there is still Instagram and Whatsapp that are yet to be monetised.  I have a strong feeling that if they decide to crank the lever one day, cash will start pouring in from these 2 segments.  Also, they own the Occulus Rift!  I have so much to write about Facebook.  Watch out for an analysis soon!

Chipotle – I have never seen a more profitable restaurant business with amazing company culture, business model and mission.  It’s financials are also a work of art.  I already own shares of Chipotle and don’t mind adding more on further drops.

Priceline – This online travel giant is currently suffering from currency headwinds.  But I don’t really care. If its price goes down to $1000 (or lower!) I will pick up a few shares.  It is still dominating the entire online travel industry.  Its competitors are no where as good as this industry leader.

MasterCard – Cashless payment will rule the world.  As the no.2 biggest player in this industry, MasterCard looks set to benefit from this mega-trend.  Many smaller cashless payment start-ups are popping up here and there, but they got a long way to play catch up with MasterCard.

Phillip Morris – I always fantasize about the day when the market crashes and I will dump some money into this sin stock.  Smokers never truly quit.  Addicted customer base, recurring revenues, boring business that never changes… when will the stock market gods present a value opportunity for this company?!?

Apple – Just like MasterCard, Apple looks like free money to me.  However, I am waiting a few more months or a correction before taking any action.  (Diversifying my allocations over time.)

 

What about you dear reader?  What is on your watchlist?  Share it in the comments below.

 

 

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For those who have not decided, enter your email in the subscriber list below.  I will be doing a review of the Dividend Machines course soon and you might want to stay tuned!

 

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7 Comments

  1. James

    5 of the 8 growth companies you listed are tech companies-related 😀

    I think Priceline is an amazing stock to own, $1000 looks to be a good support level and a good level to initiate a position.

    Any reason why you prefer MasterCard over Visa?

    P.S. Woah, UnderArmor is trading at 90x PE and 11x PB. Crazy.

    Reply
    1. The Bf (Post author)

      Hi James,

      Haha! I didn’t notice about tech-related business. To me, these businesses seem like normal everyday usage to me. (Notice I don’t go scouting for obscure companies!)

      The world is advancing. Tech businesses should be making up a larger percentage of companies in the stock market. I would rather buy Priceline than invest in some travel agency that sets up shop in Golden Mile. I think people’s fear of tech business is either due to the dot.com bubble, or watching tech-startups get overvalued and fail. I suspect many investors are also being influenced by the legends like Warren Buffet who avoid tech stocks. But more on that in another post. I got a lot of things to talk about people’s irrational fears of tech businesses or modern businesses.

      I mainly like MasterCard because it is smaller (hence easier to grow) than Visa. A lot of people prefer Visa. Some just buy both. I think all decisions are fine, because its so hard to tell who’s right or wrong now as the pros and cons are all so close. Only time will tell and I have no interest getting into debates about these 2 companies. Buy MA or Buy Visa or Buy both… aiyah got money just buy both la! hahaha!

      You can read more about why I like MasterCard here: http://bfgfmoneyblog.com/mastercard-ma-bfgf-portfolio/

      Yes UA is ridiculously ex…. it hurts me to see it rising non-stop……argh!

      Reply
  2. lazycat

    No Alibaba on your watchlist? or Fitbit?

    Reply
    1. The Bf (Post author)

      I haven’t done any research about them. Heard Fitbit is doing well though!

      Any thoughts about why you like those 2 stocks?

      Reply
  3. Andy

    Just curious why not American Express given it is trading at a much lower multiples compared to Visa and Master Card? Amex seemed to be gaining market share and Amex card holders are usually to be of higher quality due to higher qualifying salary.

    Reply
    1. The Bf (Post author)

      Hi Andy,

      The business model of AMEX is different from Visa and MasterCard. Amex is a credit card so they have to worry about customer paying late and so on. Visa and MasterCard just enable transactions between merchant and customer. So it doesn’t matter if the cardholders can’t pay.

      Amex has lower PE because their EPS growth rate in the past 4 years is only 13%.

      MasterCard’s EPS growth is 22%. PE 29.

      You can read more about MasterCard here:
      http://bfgfmoneyblog.com/mastercard-ma-bfgf-portfolio/

      Reply
  4. Andy

    Care to share why mastercard instead of Amex given that Amex is trading at much lower PE and PB multiples than Mastercard and Visa.

    Amex do have a good profile of card holders as the qualifying salary is much higher than most Visa and Mastercard cards, but of course Visa and Mastercard are much more commonly used.

    Reply

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