Showing posts from February, 2021

Oh My, A US Market Correction!

I am supposed to write about a new company today. But US Market Has Corrected Slightly Last Night!  Now that more of us are vested in the US market than SG market, I assume there is a certain amount of fear within ourself. If you had entered the US market only in the last 6 months, you maybe at a loss of what to do? For a start, I had written an evergreen post on what to do during market correction in 2018 and it is still relevant today. But at this point, it could be more important to understand why this correction is happening.  What Happened? This was explained in detail in a MeetKelvin Video .  But if you prefer reading, I will be writing about them here. 1. Short Term Bond Yields are increasing. Basically, it seems like no one is buying the current US Treasury Bonds (aka T-Bills) . Everyone is into equity now. Thus, a lower demand in T-Bills results in lower bond prices and higher yield.  2. US Government is giving out a US$1.9 trillion stimulus again.  This stimulus has to b

2021 Strategy Series: Cerence - CRNC

Vested with an initial price at US$53.50. This is the 2nd company that I am writing under this series. Currently my average price is at around S$45+ and it is the biggest position I have in my portfolio. I do believe, despite its current market share of about $5bn and the significant price gain, the company is still relatively unknown and few has written about this company. Thus, I do hope this will provide my readers with an understanding of my opinion about this big unknown company. Part 1 – What the Company Does?  Taken directly from their website, "Cerence is the world’s leading provider of automotive assistants, creating intelligent, flexible and intuitive in-car experiences for the world’s leading automakers. With deep integration with the car itself and the flexibility to bring drivers’ expansive digital life into the car, we stand in a league of our own." In human language, it is a WHITE LABEL company that is behind the voice recognition/command system in the car suc

2021 Strategy Series: Digital Turbine – APPS (Post 2)

  Vested with initial price at US$38.30.  I am supposed to write about other companies under this series. But Digital Turbine has announced their results on 3 Feb 2021 and it was amazing ! Thus, I just had to write another article on it. (Read the previous article here ) As you see from the above screenshot from Seekingalpha,  Digital Turbine  revenue had once again increases more than 100% year on year in this quarter. Furthermore, the gross margin increased too! The share price as of writing has since jumped over 20% to US$78+. This is more than doubled my initial purchase price. So Did I Sell? NOPE. In fact I bought a bit more. Why? This is because from the earnings call , the CEO had said lots of good stuff.  Here is my summary of positive points where  Digital Turbine  is expected to grow in the future: 1. International expansion is increasing at a significant pace and it should continue to grow! The company have just expanded in Latin America and Europe recently. The company is a