Stock calls for 29 January 2021

Date	Analyst	Company	Last	Target	Call	Valuation
01/29/21	OCBC	ART	1.05	1.24	Buy
01/29/21	DBS Vickers	Ascendas India Trust	1.55	1.85	Buy	DDM
01/29/21	Kim Eng	Genting	0.865	0.95	Buy	DCF
01/29/21	DBS Vickers	Ifast Corp	5.04	6.4	Buy	DDM
01/29/21	UOB Kay Hian	Keppel Corp	5.46	6.1	Buy
01/29/21	CIMB	Keppel Corp	5.46	6.4	Add	Sum of parts
01/29/21	DBS Vickers	Keppel Corp	5.46	5.85	Hold	Sum of parts, PB1.1x FY21
01/29/21	OCBC	Keppel Corp	5.46	5.2	Hold
01/29/21	Lim & Tan	Keppel Corp	5.46	0	Accumulate
01/29/21	Lim & Tan	OUE Commercial	0.385	0	Accumulate

Janet Yellen is lying again.

This old woman (Yellen) will only tell the truth when she is not holding any office.  What does she lie this time?

When she had not been confirmed as the US Treasury Secretary, she said she would not seek a weak USD despite knowing the fact that the US FED wanted to continue a low-interest rate policy.

http://sg-stock.blogspot.com/2021/01/what-did-yellen-just-say.html

Her previous stance defied the US FED's stance because a low-interest rate policy would inevitably lead to a weak USD.

https://apnews.com/article/fed-low-rates-coronavirus-economy-a142da0b3bac10860247732cdc2a7acf

After she becomes the US Treasury Secretary, she has reneged on her pledge.

https://finance.yahoo.com/news/yellen-faces-currency-war-redux-220001896.html

She has also started to blame China for the US trade deficit now.

Let's look at what she said after she stepped down as the US FED.

http://sg-stock.blogspot.com/2018/11/former-fed-chair-yellen-revealed-truth.html

The US FED is lying again!

https://www.axios.com/fed-jerome-powell-low-interest-rates-stock-market-afb58052-07cd-4043-a0b5-63a3871bad71.html

What the US FED has said defies the financial mathematics principle and makes finance teachings difficult!

The interest rates have a direct causation effect on the stock market valuation because many financial valuation models have to use risk-free interest rates to derive the stock and asset valuations.  How can the interest rates not be responsible for the lofty stock market valuation?

This is the reason we cannot put a lawyer in charge of finance or he will spew nonsense.

I'll do a simple illustration to show the effects of risk-free interest rates on a stock valuation below.

A stock valuation is derived from discounting its future earnings into a net present value (NPV) with a discount rate (risk-free interest rate) over a period.

Let's say the future income is $100m and we will discount it with 3 different discount rates (3%, 2%, and 1%) with a 5-year period.

3% risk-free rate: $100m x (1.03)^-5 = $86.3m (NPV)

2% risk-free rate: $100m x (1.02)^-5 = $90m (NPV)

1% risk-free rate: $100m x (1.01)^-5 = $95.1m (NPV)

As we can see, the lower the discount rate (risk-free rate), the higher is the net present value.  Therefore, when financial analysts use lower risk-free interest rates as the discount rates, they will derive higher stock valuations and target prices.  The higher stock valuations will inevitably lead to lofty stock markets.  Furthermore, the lower interest rates will lead to cheap financing costs for companies and fund managers to borrow to invest or repurchase (buy-back) their shares and push the stock market higher.

Mapletree Industrial - Stock calls

Date	Analyst	Company	Last	Target	Call	Valuation
01/22/20	OCBC	Mapletree Industrial	2.78	2.87	Hold
01/22/20	DBS Vickers	Mapletree Industrial	2.78	3	Buy
01/23/20	UOB Kay Hian	Mapletree Industrial	2.77	2.9	Buy
02/04/20	DBS Vickers	Mapletree Industrial	2.78	3	Buy
03/02/20	DBS Vickers	Mapletree Industrial	2.68	3	Buy
03/13/20	Phillip	Mapletree Industrial	2.77	2.03	Neutral
03/18/20	UOB Kay Hian	Mapletree Industrial	2.14	2.9	Buy
04/17/20	DBS Vickers	Mapletree Industrial	2.41	2.7	Buy	DCF
04/28/20	Lim & Tan	Mapletree Industrial	2.44	0	Hold
04/29/20	Kim Eng	Mapletree Industrial	2.53	2.95	Buy	DDM
04/29/20	UOB Kay Hian	Mapletree Industrial	2.53	2.85	Buy
04/29/20	CIMB	Mapletree Industrial	2.53	2.66	Add	DDM
06/09/20	OCBC	Mapletree Industrial	2.82	2.84	Buy
06/24/20	Kim Eng	Mapletree Industrial	2.84	2.95	Buy	DDM
06/24/20	UOB Kay Hian	Mapletree Industrial	2.84	3.08	Buy
06/24/20	CIMB	Mapletree Industrial	2.84	2.81	Hold	DDM
07/02/20	DBS Vickers	Mapletree Industrial	2.9	3.25	Buy	DCF
07/22/20	Lim & Tan	Mapletree Industrial	2.97	0	Hold
07/22/20	OCBC	Mapletree Industrial	2.97	3.25	Buy
07/23/20	UOB Kay Hian	Mapletree Industrial	2.97	3.1	Buy
07/27/20	Kim Eng	Mapletree Industrial	3.16	3.3	Buy
08/18/20	DBS Vickers	Mapletree Industrial	3.14	3.25	Buy
08/31/20	Kim Eng	Mapletree Industrial	3.04	3.4	Buy
09/15/20	DBS Vickers	Mapletree Industrial	3.15	3.25	Buy	DCF
10/28/20	Lim & Tan	Mapletree Industrial	3.1	0	Neutral
10/29/20	DBS Vickers	Mapletree Industrial	3.14	3.25	Buy	DCF
10/29/20	Kim Eng	Mapletree Industrial	3.14	3.4	Buy	DDM
10/29/20	OCBC	Mapletree Industrial	3.14	3.51	Buy
10/29/20	CIMB	Mapletree Industrial	3.14	3.03	Hold
10/29/20	UOB Kay Hian	Mapletree Industrial	3.14	3.45	Buy
11/30/20	OCBC	Mapletree Industrial	2.95	3.51	Buy