Several Singapore household names have pushed past their 52-week highs in recent months, climbing to fresh peaks with renewed investor confidence.New peaks can spark both excitement and hesitation for investors. You might wonder, is this the start of sustained momentum, or is it time to tread carefully?Hitting high does not automatically mean a stock is overvalued. Sometimes, this new peak signals strength. Today, we examine three standout stocks: DBS Group Holdings Ltd (SGX: D05), SBS Transit Ltd (SGX: S61 ...

called value traps. Value traps are stocks that appear to be cheap based on traditional valuation metrics like the PE ratio. However, they're cheap for some very good underlying reason.So, first we should talk about what can lead a good business to become genuinely undervalued. It typically has something to do with investor emotions. It can take many different forms.But it's typically short-term thinking surrounding things like a negative market sentiment, fear around something like a supply chain shock or ...

RT Boring_Business (@BoringBiz_)Imagine spending 14 hours a day projecting cash flows and learning business fundamentals when you could have just bought a piece of rock instead https://t.co/xifZll2qAl ...

Core Viewpoint - The article discusses common mistakes investors make during market highs and emphasizes the importance of focusing on business fundamentals, maintaining a diversified portfolio, and adhering to a disciplined investment strategy to avoid costly errors. Group 1: Mistake 1 - Chasing Momentum - Investors often rush to buy stocks that are experiencing rapid price increases, driven by speculative trading rather than solid fundamentals, which can lead to significant losses when momentum reverses [2][3] - An example is Seatrium Ltd, which reached a 52-week high of S$2.60 in February 2025 but fell to a low of S$1.62 by April 2025, illustrating the risks of buying at peak prices [3][4] Group 2: Mistake 2 - Overconcentrating on "Winners" - Concentrating too much investment in a single stock or sector can be risky, as even strong performers can decline sharply, leading to panic selling [5][6] - DBS Group Holdings Ltd saw its share price drop to a 52-week low of S$36.30 on April 7, 2025, a decline of over S$10 from the previous week, highlighting the dangers of overexposure [6][7] Group 3: Mistake 3 - Ignoring Valuations - Investors may overpay for quality companies during high enthusiasm, leading to disappointing returns if the companies cannot sustain their growth [8][9] - It is crucial to balance quality with price by analyzing metrics like price-to-earnings (P/E) and price-to-book (P/B) ratios to ensure reasonable valuations [9] Group 4: Mistake 4 - Forgetting Income & Cash Flow - Dividend-paying stocks provide steady cash flow and can help smooth returns during volatile markets, making them an essential part of a portfolio [10][11] - Sheng Siong Group Ltd is highlighted as a resilient dividend stock, with an interim dividend payout of S$0.032 per share for the first half of 2025, unchanged from the previous year [11] Group 5: Mistake 5 - Trying to Time the Market - Attempting to time the market for perfect entry or exit points is nearly impossible and can lead to missed gains [12][14] - A recommended strategy is Dollar-Cost Averaging (DCA), which allows investors to invest consistently over time, reducing the impact of volatility [13][14] Group 6: Conclusion - The article emphasizes the need for discipline during market highs, focusing on business fundamentals, maintaining diversification, and committing to a consistent investment strategy to build lasting wealth [15]

Core Viewpoint - Zscaler's share price is projected to reach $360 due to positive technical price action, favorable analyst sentiment, and strong business fundamentals, indicating a breakout from a long-term trading range [1][2][5]. Group 1: Business Fundamentals - The recent breakout in Zscaler's stock price is attributed to business fundamentals catching up to valuation concerns, leading to an improved outlook for sustainable 20% growth and increasing shareholder value [2][10]. - Zscaler reported a solid fiscal Q3 2025, with revenue exceeding analyst forecasts and growth remaining above 20%, supported by accelerated gains in billings and deferred revenue [10][11]. - The company has a robust balance sheet with over $3 billion in cash and equivalents, a 21% increase in net income, and an 18% free cash flow margin [11]. Group 2: Analyst Sentiment - Analyst activity shifted positively following Zscaler's fiscal Q3 results, with a 17% increase in the consensus price target and no decreases tracked among 36 analysts [5][6]. - The consensus price target reflects a 25% increase compared to the previous year, indicating strong analyst confidence in the company's performance [6][11]. - The stock currently has a Moderate Buy rating, with a high forecast of $320 and an average forecast of $277.32 [11][15]. Group 3: Market Dynamics - The market is experiencing a recovery rally, with projections suggesting potential new all-time highs in the range of $375 to $403 [4]. - Institutional investors own 41% of Zscaler's stock and have been buying on balance throughout the year, providing a solid support base for price action [13]. - Short interest was at 9% ahead of the release, setting the stage for a potential short-covering rally [14]. Group 4: Product Development - Zscaler's new product, Z-Flex, is designed to streamline security stack adjustments for businesses, enhancing flexibility and scalability while reducing costs [9][8].