Ernest Lim's investing blog

Unique insights into SGX small caps

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Banyan Tree – collaborations with AccorHotels and Vanke may spark re-rating (17 Apr 17)

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Banyan Tree recently clinched two noteworthy strategic partnership with AccorHotels and Vanke on 8 Dec 2016 and 23 Jan 2017 respectively. Since 23 Jan 2017, Banyan has largely traded between $0.465 – 0.530. It closed at $0.510 on 17 Apr 2017. If a company can catch the eyes of China’s largest property player Vanke and Europe’s largest hotel group / the world’s fifth largest hotel group AccorHotels, there must be some merit to it. I have managed to fix an exclusive 1-1 meeting with Mr Eddy See, Group MD and Mr Clement Ong, Head of Strategic Planning & Investment (“Management”) […]

Trading is easy, isn’t it? [4 Dec 2016] (Part 2)

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In my previous article “Trading is easy, isn’t it? [20 Nov 16] (Part 1) click HERE”, I have discussed the importance of one’s psychology in trading. However, I have only given a general outline on risk management and trading system which are also very important topics. In this article, I will elaborate on risk management compiled from various trading books and will add in my thoughts under “–>”.   Risk management – What it ACTUALLY means… Risk management is a set of pre-defined guidelines which serious traders adhere so as to survive in the market over the long term. Risk […]

Trading is easy, isn’t it? [20 Nov 16] (Part 1)

el15

If somebody says his profession is a trader, what will you immediately think of? I believe most people would immediately flash across thoughts of fine dining, fast cars and effortless work. Is this really the life of a trader? If it is so easy, why don’t we all jump onto the “trader” bandwagon? In my opinion, trading or punting without consistent profits and plans is easy but it is not recommended. It is akin to gambling. If we are referring to trading as a consistent means of earning our keep, it is not easy. Ask any professional trader and nine […]

Selling – When do you sell a stock (18 Sep 16)

el15

Typically, when you read an analyst report, or a news article on a company, or when someone asks you to take a look at a stock with promising prospects, the decision to buy is usually easier, as you are buying on the prospect of potential gains. After your purchase, if the stock subsequently appreciates, or slumps, or stays around the same level for some time, you may wonder what to do with your existing stocks. Through my work as a remisier, I have received extremely frequent (and rather standard) questions from my clients (or sometimes readers), whether they should buy […]