Reading The Tea Leaves

They usually appear around this time of the year for companies that have their financial year ending in December. They are thick and heavy and when you read them, you fall asleep. If you have a portfolio of stocks, you would likely receive a stack of them. Few would read …

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Rights Issues And Open Offers

What are Rights Issues and Open Offers?
Rights Issue and Open Offers are means of capital raising for a company. Essentially the company is asking its shareholders for money to fund its business generally for the following reasons:

To fund its acquisition or expansion strategies
To repay maturing debts in times when the company is …

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Growing Old, The Insider Story

Every year, one more candle appears on the birthday cake. We celebrate the day we were born with cakes, songs and presents. Few would realise that each passing birthday means we are closer to growing old.
The greying population offers attractive prospects for businesses. With an ageing population, demand for medical and …

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Revenue Growth, Net Earnings Growth And Net Earnings Margin

Revenue Growth
(Also known as Sales Growth)

The annual Revenue Growth measures the year-on-year increment in top-line sales generated by the company from its business activities where the terms “revenue”, “sales” and “turnover” are used interchangeably. It thus serves as a gauge for the rate of expansion of the company’s business over …

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Leverage Is A Risky Game

Debt is part and parcel of life. It means you owe other people money and you have to pay them back. Every month when you open your post box, you will see little pieces of paper asking you for money. If you bought a house with a loan from a …

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What Is Price/Revenue?

What Is Price/Revenue?
Price/Revenue, also known as Price/Sales, measures the market’s valuation of the company’s share for every dollar of sales made. It is computed as follows:

Price/Revenue in lieu of Price/Earnings (P/E)
Price/Revenue is usually applied in place of Price/Earnings (P/E) as a form of relative valuation comparison in the following industries …

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Milking A Cash Cow

Wouldn’t it be nice to own the shares of a company that generate a lot of cash consistently? Cash is the lifeline of any company. Companies need cash to pay suppliers and employees so it can produce goods and services to sell at a profit. Companies that generate good cash …

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Case Studies: Dividend Yield And Dividend Payout Ratio

Following the blog posting on Dividend Yield and Dividend Payout Ratio last week, we have singled out 2 stocks to discuss these 2 ratios further.
The second-largest telecommunications and dominant Pay TV operator inSingapore, StarHub operates integrated fixed and mobile telecom services, as well as Internet-related services, mobile solutions and global …

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