In this post, join me as I unravel and share some light on a Singapore stock called Parkway Life REITs (C2PU). Personally, I used to hold this stock for about 1.5 years since Covid started. I bought it quite cheap during the market collapse period. 

Disclaimer: All information stated here is only for illustration and educational purposes. It's not financial advice to buy or sell any financial products. Please perform your own due diligence before investing as always. 

Why is this my favourite stock?

The answer is simple. I want to invest in a REITs type of stock in Singapore to generate consistent returns via dividends. When the price of REITs goes up or down, I can sleep well at night as I am not bothered by the constant fluctuation of stock prices. All I need to do is to make sure that I receive its dividend during the payout period and I will be happy. 😀

Dividends are not taxed in Singapore so that is another good thing to know. I did cover the pros and cons of dividend stocks in one of my previous articles. Can click here to view it if you have not done so. 

What do Parkway Life REITs do?

Parkway Life is one of the largest listed healthcare REITs in the Asia region. They have successfully expanded and currently managed as of 30 Sept 2021, 55 different hospitals and healthcare medical centers in Singapore and Malaysia. They also have over 50 assets in Japan.

The 3 most popular hospitals in Singapore are Mount Elizabeth, Gleneagles, and Parkway East. All of which I have never been to before. 😄

The remaining leases for the hospitals are still long at 54 years at the very minimum with the carrying value increasing from the previous year.

Basic Stock Information

Listed on the Singapore stock exchange as a ticker symbol C2PU. 

Looking at the data from Yahoo Finance, its price on 8th Dec 2021 is around 5.02 SGD per share. Not to forget that SG stocks need to buy in lots of 100 shares each. 1 lot is 100 shares and that is a total of 502 SGD excluding brokerage processing fees etc. 

Beta value 0.32: the price is more resistant to price fluctuations and less volatile in the short term. This has its pro and cons. If you just focus on getting your returns via dividends, then a stable price is beneficial but there will be no capital appreciation from the price. 

Market Cap of 3.037B: is in the top 50 list of listed companies in Singapore.  

Price for the past 52 weeks: 3.77 to 5.09 SGD. Price movement is small but it is on the uptrend now.

Other factors:

Profit Margin: 279%

Operating Margin: 79%

Net Income: Maintain at current levels with not much difference across the past 4 quarters.

The company is still in a stable and healthy position at the moment. 

The unit price hit a record high which was boosted by the inclusion of the REIT in the FTSE EPRA NAREIT Global Developed Index.

The only outstanding part that I saw was the rise in the 'Current portion of Long Term dept/capital leases'. The company did more loans/ borrowing for business-related purposes. This is something that the company will need to monitor and keep in check to ensure that they can pay it off in the 12 monthly periods.

There was a drop in Long Term debt to 551.9 in the last quarter which is good news.

This will help to calm and maintain the level of confidence for investors. 

This will be music to the ears of investors. Distribution per unit (DPU) has increased.

DPU = The number of dividends a REIT investor receives for every unit he has in the REIT

Technical Analysis

I like this company as they not only give dividends, the price also appreciates for the past 1 year as shown. It has a healthy up and down price fluctuation cycle. But always remember to DCA and never enter at the all-time high. 

Comparision 

C2PU- price for the past 52 weeks: 3.77 to 5.09 SGD. That is a 35% rise in price. 

D05- DBS bank's price for the past 52 weeks: 24.71 - 32.70 SGD. That is only a 32.3% rise in price.

G3B - STI index's price for the past 52 weeks: 2.87 - 3.34 SGD. That is only a 16.3% rise in price.

The price appreciation for ParkwayLife is really outstanding beating the likes of DBS and the exchange index. 

Healthcare is an essential sector. With an aging population and the rise in new diseases not to forget about Covid, this will remain a strong pillar of support for our society. 

Even during COVID in March 2020, ParkwayLife was able to rebound back to its pre-COVID stock price by August 2020 which took about 5 months. Up till today, it continues to be trading at a higher high with the 20 and 50 EMA always above the 200 EMA line.

From the above, it is obvious that ParkwayLife has strong fundamentals in their business and the price is an indicator of it. In my opinion, there are a lot of potentials if you are hunting for dividend and REITs related stock for your portfolio. As always, please do your own research and build your own conviction before you buy. This is just a dossier report.  😃

This is the second learning lesson in which I will be sharing my thoughts and please bear in mind this is not financial advice. This is a series of articles where I will focus on topics of what others have done previously and to find possible ways to improve on their positions.

If you have not read the first learning lesson, click here to read it. 😀

Disclaimer: All information stated below are only for illustration purposes. It's not a call to buy or sell any financial products. Please perform your own due diligence before investing as always. 

Here, I will share the first real-life example of the following issue that this person is facing.

seedly.com

Background Analysis:

• From this case, there is about 20K SGD on hand in cash that is available now to invest into anything. 
• Risk-averse and prefer to put into somewhere relatively safe and stable
• Money will be required for home renovation
• Time duration to invest is about 1 year. 
• Besides Singlife, any other ways to invest?

First and foremost if you are using Singlife and treating this as a form of investment, I think you are wasting your time. Singlife has been reducing its interest rate returns for the past year. Now it's at 1.0% p.a. return and I expect them to drop this figure closer towards 0% return in the future. 

singlife.com

I will like to reiterate and emphasize that Singlife is not a pure investment product for goodness sake. It's a hybrid insurance cum 'investment' product that tries to promote to you a low-hanging carrot of the brilliant benefits of buying insurance and savings at the same time without having you put in time and effort to study about investments. Obviously, it's their Marketing department marketing strategy to get more people on board to sign up and be a member of this platform. 

We cannot always use the bank's saving account interest rates as a form of yardstick and be the benchmark of what might be a better alternative investment return. Banks are giving us a ridiculous savings interest of 0.05% p.a. Just look at the table below. Even by depositing 650K into the savings account, they will not even reward you with a higher interest rate and you still get to enjoy only 0.05% p.a. regardless of how much you plan to put in. 

DBS

Now comparing Singlife with the bank's savings account, getting a 1% p.a. return seems to be a good deal. But I beg to differ on this notion. Because there is something called inflation my friend. I covered this topic before. If you have not read it yet, click here to read it. 

MAS

Click here to read more on the rate of inflation in Singapore.

Taking reference from the MAS (Singapore's Central Bank) in August 2021, the MAS Core Inflation rose to 1.1% on a year-on-year basis. 😕 It's +1.1% inflation!!!!! 

Putting your money into a 1.0% p.a. Singlife product is going to reduce your purchasing power by -0.1% on a year-to-year basis. Please think twice if you want to put your eggs into Singlife. 

For me, any interest rate returns of less than 3.0% p.a, I will just ignore and don't care about it. The returns are just too little. 

Going back to the case

Background Analysis:

• From this case, there is about 20K SGD on hand in cash that is available now to invest into anything. 
• Risk-averse and prefer to put into somewhere relatively safe and stable
• Money will be required for home renovation
• Time duration to invest is about 1 year. 
• Besides Singlife, any other ways to invest?

20K SGD is a sum big enough to invest into something and get a good return of investment after 1 year. 

I will skip Fixed Deposits, 1 year T-bills or bonds, savings account, cash management accounts, etc.

Moving Forward:

Robo-Advisor:

In a hypothetical situation, I will take the 20K and invest in either Stashaway or Syfe Robo Advisors. To me, this is quite clear as I have used both products before and their returns are good enough to achieve this objective in 1 year's time. 

Both Stashaway and Syfe are licensed and regulated by the MAS in Singapore as stated on their websites. This fulfils the relatively and somewhere safe and stable risk levels that the author is looking for. 

You can check their websites to find out more.

Click here if you have not read my reviews on Syfe and Stashaway.

There are many different plans on both platforms, choose one which suits your risk level and comfort level. Please take note, choose and focus on 1 plan only as concentration is the key to building wealth and 1 year is not a very long time to play with 2 plans. 

For me, I know how both works so I will be very aggressive and choose the Stashaway 36% highest risk level plan or Syfe Equity 100 plan.

Split 1 year into 12 equal months. Dollar-cost average a fixed amount monthly till expiry in 1 year time. With 20k, each month I will DCA 1666 SGD into the plan and wait for it to grow. Possible to reach greater than 7% return per annum after factoring in the platform's monthly management fees of xxx amount. How cool is that! 😎

For me personally, I did it for about 1 year and got back a 10% return for doing nothing every month other than to deposit money and just click into the dashboard to see my money grow while I sleep and do other things in life.

One strong reason for choosing Robo-Advisors is the unit of measurement (UOM) is in SGD which is just investing using fiat dollars. It provides convenience as I do not need to change to USD or a Crypto stable coin to invest.

Stocks:

Cryptocurrency:

For the more adventurous people, 1 year is also sufficient to invest in Cryptocurrency. But the obvious downside is you first have to convert your fiat money (SGD) into a stable coin (eg. USDC) then you decide what you want to do with those coins. After 1 year, you have to then convert back your crypto coins into fiat money (SGD) and use this sum to pay for the house renovations.

Of course, this brings with you a higher risk and more time is required to do your own research to find out how to maximize your returns using Cryptocurrency. 

Please avoid using Liquidity Mining (LM) as 1 year is a short period of time and you will be subjected to the 'Impermanent Loss' as the time horizon to invest is very short. 

Can focus on doing staking for coins that are able to stake. Those that cannot stake eg. BTC or LTC, you can deposit your coins into a lending platform and they will just reward you with interest rates according to the proportion that you deposit with them. There are a few platforms such as Celsius Network etc.

For stable coins: eg. USDC your returns will be solely based on the platform's interest rates. This one you can straightaway convert your fiat money into the stable coin of your choice in lump sum as stable coins prices are fixed at around 1 USD.

For non-stable coins: eg. BTC/ETH etc your returns will be based on the platform's interest rates as well as the price appreciation of the Cryptocurrency itself. For this, remember to dollar cost average in and out to average down on your purchase price. Never ever one lump sum buy into a particular price as that will increase your overall risk and you will take a slightly longer time to break even if the overall Crypto market is experiencing a bear market or at the accumulation stage. 

There is no right or wrong way to invest. It really depends on how comfortable and knowledgeable the person is and he/she will take the necessary actions that work best for them.

Referral Links:

I personally use this platform to buy stocks and options.

Tiger Broker (click to sign up)

New sign-ups for an account and make your first deposit of a minimum 2000SGD to earn a free Apple (AAPL) share which will be deposited directly into your Tiger Broker account.

Welcome Gifts:

1. 1 x Free share of Apple (AAPL) (when you deposit min $2k, limited time only)
2. 500 Tiger coins (for the redemption of commission-free trades / stock vouchers)
3. 60 Commission-Free normal stock trades (expiry within 180 days)

Reach out to me to find out more!

1. Wyckoff Distribution Theory

• I came across this phenomenon called the Wyckoff Distribution which literally blows my head off after I read more about this. 

• Click here to read more about the theory created by Richard Wyckoff.

• This is geared more towards technical analysis and the psychology of prices in the market.

• Wyckoff Distribution was created to educate uninformed investors like you and I to reduce the chances of losing such money in the stock market. It uses a 4 stages model to explain the rise and drop in asset prices as shown.

https://school.stockcharts.com/doku.php?id=market_analysis%3Athe_wyckoff_method

• It makes sense on how the supply of Bitcoin (BTC) might be manipulated so that a certain group (eg. the whales 🐳) who were more informed, strategic and powerful could deceive those who were less informed playing their cards to raise and drop the price of Bitcoin (BTC) in a short span of time to create a 'Fear Of Missing Out' (FOMO) and 'Fear, Uncertainty and Doubt' (FUD) effects. 

• I believe that among your circle of friends there would be someone talking about Bitcoin. Even people who usually do not invest would just jump in and open an account to buy some BTC etc which was unthinkable. 

• This was a plan to rip-off the maximum amount of money possible from us, normal retail investors who are invested into cryptocurrencies.

• Of course we must not forget that during this period of time, there were other media factors contributing to the surge in prices such as Tesla buying into bitcoin, Elon Musk constant twitting about Bitcoin and Doge coins and other institutions such as Square and Paypal also announced to enter into the cryptocurrency space. 

• All these news and media created enormous amount of 'Hype' and 'FOMO'. There were so much media coverage predicting BTC prices going up to 50K USD and even 100K USD to the moon 🚀🌙 etc 

• I still remembered that it was common for certain days to see BTC prices going up or down by 3000 USD to 5000 USD and that was the norm at the period of time. 

• This is unlike now in the period of June / July 2021 where BTC price fluctuation has clearly slowed down from those days.

• In the chart for the entire year of 2020, Bitcoin (BTC) and other cryptocurrency prices were in the 'Accumulation Stage' where prices were increasing and decreasing at a constant steady state (small fluctuation) with little abnormally in price movements. 

• However in early December 2020, with the hype building up, BTC price started to surge up quickly and a price breakthrough above the resistance level occurred at the 20k USD price level.

• There were a total of 5 peaks that occurred as seen in the chart and the last peak started to lose momentum before panic selling and profit taking took place quickly. The price of BTC and other cryptocurrency started to crash down like an avalanche and that brought us to where the price currently is hovering at today, back to the 'Accumulation Stage' of the Wyckoff Distribution. 

3. Wyckoff Distribution with BTC Price Chart Overlay

• Here I attempted to overlay the Wyckoff distribution over the 1 year BTC price chart as shown below.

• Furthermore, the BTC price 20 days (green colour line) and 50 days  (yellow colour line) Exponential Moving Average (EMA) are moving below the 200 days (red colour line) EMA line indicating bearish patterns at this moment of time. 

• Phases A, B, D and E of the Wyckoff Distribution chart falls nicely on top of the BTC price chart. 

• Only Phase C was not aligned and slightly off as mentioned that the Wyckoff is a theoretical distribution to explain the drop in BTC price in May 2021 and also depending on the time frame you use to do the overlay.

• We know that the price of BTC has fallen and it has gone back to the "Accumulation Stage" of the Wyckoff Distribution. It will take some time for people in general to forget about this crash, to regroup and gain back their confidence to invest into Cryptocurrency.

• Here I show the overlay of the Wyckoff Distribution right after the panic / profit sell-off period using the 1 year BTC price chart as well.

• You can clearly see that prices will remain at this range for a long while before we start to see some form of 'uptrend stage' like the one that we experienced at the beginning of this year. 

• Lastly, you can see from May 2021 to 11 July 2021 the movement of BTC's price has slowed down in momentum. 

5. Takeaways

• Having the ability to identify at which stage (either 1, 2, 3 or 4) of the Wyckoff Distribution is that particular stock or cryptocurrency's price you are planning to place an order is currently at.

• Once you have identified, you will be able to make the necessary decision accordingly to wait or enter depending on multiple factors that are in play.

• Don't FOMO to buy into something when the price suddenly shoots to the moon.

• From the chart, its clear that the price will always go up and down in this wave like pattern. The same pattern repeated several times during this period. 

• If you have missed the first wave's peak price, there is bound to be a second wave peak or even a 3rd wave peak coming soon. 

• Do not have to rush in to buy the stock / crypto at the highest peak with the mindset that 'I have to get in to go to the moon now' 🚀🌙, its now or never that the price will blast off and its not coming down to the low levels again. 

• Prices as steep as what you seen in the beginning of the year for Bitcoin will surely come down somewhere in the future when some people start to exit their positions to take profits or those who panicked and sell off their positions. 

• After which that is the appropriate time to go in and scoop up some BTC coins at discounted prices.  

Disclaimer: All information stated here are only for illustration and educational purposes. Its not financial advice to buy or sell any financial products. Please perform your own due diligence before investing as always. 

I took reference from this person's work. Feel free to click onto his video and listen to his detailed explanation of the Wyckoff Distribution. View here.

There are only that much investing and financial tips I could share here. In order to speed up your understanding to invest safely with a well maintained portfolio allocation across asset classes, it will be of best interest to share real life examples of what people are going through so that we can minimize making the same mistakes.   

Disclaimer: All information stated below are only for illustration purposes. Its not a call to buy or sell any financial products. Please perform your own due diligence before investing as always. 

Here, I will share the first real life example of the following issue that this person is facing.

Seedly.com

To read the original post, click here.

Background Analysis:

He/She is working for a few years and emergency funds have been set aside. This shows that this person has planned and set aside extra savings for the sole purpose of investing. With that in mind, he / she will not be pressured into making irrational decisions and go cut loss or sell the investment assets when the bear market comes or prices of assets drop. 

The only pressure comes from the fact that he / she is planning for marriage, purchasing of first home and family creation where a substantial amount of cash is required to be paid for which comes in around 2 years time.

With a 2 years horizon, its still possible to take some risk in investing.

Main issues with his/her existing investing strategy:

• 10K SGD invested in a few RANDOM stocks in SG and US market using Saxo platform. When you invest in random stocks, you will get back random returns as well no joke. 😅 He / she mentioned that the stocks are mainly dividend stocks, means that their prices tend to remain the same over the long run and do not have much capital appreciation. your returns are mainly contributed from the dividend yields percentage of each stock.

• 8K SGD invested in 2 Robo-Advisors. This can either be two different plans in the same Robo-Advisor eg. 36% risk level plan and a 10% risk level plan both in Stashaway or one plan in Stashaway and the second plan in Syfe for example. There are some overdiversification in this strategy.

• Regular Savings Plan (RSP) auto deposits 100 SGD per month to invest into STI ETF index for less than a year. In this case, I assume 6 months has passed, which is about 600 SGD into the plan.

• Current cash on-hand only able to set aside only low hundreds per month for investing. In this case, I assume low hundreds as a value less than 500 SGD per month.

Portfolio Analysis:

• I have personally bought and tried all those investments that this person has done currently so I am very familiar with the returns and what he/she is going through now.

• 10K SGD in random dividend stocks in SG and US markets. Firstly, SG dividend stocks tend to have little price appreciation over the years. Their price increments are so small that its almost non-negligible. 

• To earn from holding onto these dividend stocks, the only way is through their  dividend yield. 

• The first thing is to look at which stocks are performing and underperforming at the moment. If you see that dividend stock is what you still believe in for their returns, I will suggest to sell away those underperforming stocks (either you know that within this 2 years that stock will still be making a loss in price or to sell and buy into a current stock that you are holding to increase your overall stock position to get more dividend yield for the year).

RSP:

• If you have bought the RSP for STI ETF with DBS some months ago, I am making a calculated guess that with the recent rise in STI ETF prices, you are still making a price gain from your stock purchase.

• I myself had purchased the RSP as well more than a year ago and held onto this plan for close to one year with a loss due to Covid 19. Now if you are still making some price gains in this plan, better to take whatever gains you have now and exit this plan while you can.

• Holding onto this plan will not help you much. If you are only depositing 100 SGD per month, you are holding onto very little STI stock shares. With so little shares, your monthly dividend yield return will be less than 4SGD. In 2 years, the most you are going to receive for holding onto this RSP plan is about 96 SGD only (4SGD x 24 months). Are you sure you want to do this for 2 years?? 

Moving Forward:

What I will do in your shoes will be (do not blindly follow)

Strategy 1.1: Aggressive and risk for 2 years

• Exit the RSP plan (600 SGD)
• Exit the Robo-advisor (8k SGD)
• Exit the Dividend stocks (10k SGD)
• Cash on-hand (500 SGD)

• Open an crypto online account