The Summary

Here’s my investing style

Posted: 11 August 2020 by The Summary

Everyone’s likes making a quick buck in the markets, and sure, they come by from time to time, but you also lose a fair bit of the time. It’s all about timing, and I know for a fact that I won’t beat the bankers or high frequency traders at that. So I take a different approach and have a different investing style.

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Someone took a bite out of Apple

Posted: by The Summary

Bank of America analysts downgraded Apple on Wednesday to Neutral citing “risks should not be ignored”. This comes as they also increase the price target from $420 to $470 “which assumes low-single digit year over year revenue growth and flat margins.”

“We are downgrading shares of AAPL to Neutral as we view risk reward more balanced at these levels”

BoA sees risks particularly in costs to manufacturing their 5G iPhones, an unsustainable trajectory (30% growth) due to high margin App Store growth and a potential risk of a higher tax rate should the Democrats win in the U.S. elections.

This stock performs better than Tesla

Posted: by The Summary

Sea, the Singapore-based gaming, e-commerce and payments company has quietly become the world’s best-performing large-cap stock, rising up 880% since going public.

Demand has surged during the pandemic due to their games such as Free Fire, which attracted 80 million daily active users in more than 130 markets. Its Shopee platform also overtook Alibaba’s Lazada to become the top online store in Southeast Asia (source: iPrice). This business accounts for more than 40% of Sea’s revenue in 2019, up 2.3% from 2017.

Sea is now the biggest company in Southeast Asia with its market value at $65 billion, overtaking PT Bank Central Asia. Revenue has also surged, jumping up 163% to $2.2 billion in 2019.

DBS Bank Ltd have downgraded their recommendation on Sea to sell in July as a result of Indonesia’s new tax regulations for cross-border transactions and because of the capital required to grow its payment platform.

Welcome to The Summary

Posted: by The Summary

Welcome to The Summary, a newsletter focused on the markets, financial insight, financial independence, and wealth creation.

Each week I analyse and condense everything I’ve been reading and email you a summary, letting you pick out what’s most valuable to you and put it to work.

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