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ComfortDelGro(C52.SI): Grow or No Grow?

ComfortDelGro(C52.SI): Grow or No Grow?

ComfortDelgro will be announcing its 2Q result tomorrow on 11th August.

This column is written by @j_chou from InvestingNote.com.
@J_chou has an interest in global macro trends, financial markets and equity research and enjoys applying a combination of the three in his investments. His eventual investing goal is to manage a risk parity portfolio and achieve true financial freedom.

A component of the STI, Comfort Delgro was once championed as a stable dividend paying stock with a strong economic moat. Recent disruptions in the taxi industry have since changed that view, causing the stock to tumble to its 52-week low despite a relatively muted 1Q17 earnings report. Investors were likely concerned with the falling revenue and operating profits, mostly attributed to the decline from the taxi segment. The share price has since recovered slightly from its 52-week low to $2.310, but there is still an opportunity to capitalize on the negative sentiments towards the company. In this article I will look to determine whether Comfort Delgro is ripe for a contrarian play by assessing its long-term prospects from a bullish, neutral and bearish perspective for the next 5-10 years.

Comfort Delgro: Much more than just a taxi company

The distinct blue and yellow taxis that peppers the streets of Singapore may cause investors to mistake Comfort Delgro as primarily a taxi company.

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Contrarian Investing Part 2: Lessons from Templeton

Contrarian Investing Part 2: Lessons from Templeton

Stock Picking Strategy Series: Contrarian Investing Part 2: Lessons from Templeton

If you like this column on contrarian investing and applying to stock analysis, please start voting which stocks you would like them to write on in their next article! This is your chance to interact with them and they will write on the most voted stock of your choice!

How to vote: Comment any of the 4 listed stocks of your choice mentioned in the article (M1, Comfort Delgro, SPH, SIA Engineering). The most number of likes/comments by Monday morning will be chosen. It’s that simple!

Voting starts now and ends on Monday (31st July) when market opens (9am)!

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Disclaimer: this article simply provided analysis on stocks from the fundamental perspective, it does not represent any buy/sell recommendation from Investingnote. *All the dollar unit ($) in this article refer to SGD.

This column is written by @j_chou.
–Jay has an interest in global macro trends, financial markets and equity research and enjoys applying a combination of the three in his investments. His eventual investing goal is to manage a risk parity portfolio and achieve true financial freedom.


With S&P 500 and NASDAQ closing at record highs today and VIX Index at a 23-year low, the timing seems ripe to revisit the contrarian approach!

Besides Dremen, another famous investor whom we can learn the contrarian approach from is Sir John Templeton.

Known for his acumen in global stock-picking, Templeton’s principles of purchasing at “maximum pessimism” pushed him towards stocks that had been entirely neglected. His story of profiting off the Great Depression is legendary: in 1939, he purchased $100 worth of every stock which was trading below $1 per share on the New York and American stock exchanges. This totalled about 104 different companies, a whopping 34 of which were bankrupt, and Templeton’s initial investment was $10,400. After four years, he managed to sell those shares for nearly four times the money he had initially invested. His genius proved to be timeless, as yet again in 1999 during the dot com bubble he famously predicted that 90% of the new Internet companies would be bankrupt within five years, and he very publicly shorted the U.S. tech sector.

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What you need to know about Union Gas IPO

What you need to know about Union Gas IPO

Union Gas Holdings is an established provider of fuel products in Singapore with over 40 years of operating track record, is offering (IPO) 60M shares at $0.25 per share on the Catalist board, which will value the company at around 50M.

1.28M shares will be available for the public with the rest via placement. It will start trading on 21st July, 9am.

ipo

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Contrarian Investing: Dreman’s Philosophy & Strategy

Contrarian Investing: Dreman’s Philosophy & Strategy

Dreman’s Contrarianism: Investment Philosophy and Strategy Part 1

David Dreman is the chairman of Dreman Value Management Inc. and his Dreman’s High Return Fund is one of the all-time highest returning mutual funds in the USA since its introduction in 1988. He is widely knowns for his iconic contrarian investment strategy and has authored a few books that revolves around this theme, including the investing classic and bestseller “Contrarian Investment Strategy: The Psychology of Stock Market Success(1980)”.

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Hengxin Tech: evaluating it as a Net-Net Play

Hengxin Tech: evaluating it as a Net-Net Play

Company Overview

Hengxin Technology Limited ($Hengxin Tech(I85.SI)) is an investment holding company principally engaged in the production of radio frequency coaxial cables for mobile communications.
The Company is also engaged in the research, design, development and manufacture of telecommunications and technological products, mobile communications systems exchange equipment, as well as antennas and high temperature resistant cables.Given that the focus is on net-net strategy, in this article I will approach the valuation of Hengxin Technology on the basis of its assets e.g. should the stock be trading at a discount to its asset value? Should the company be selling for less than its liquidation value? Hence, note that in this instance the conventional method of cash flow generation; analysing the company’s operations and business value is not as important.


This column is written by @j_chou.
@J_chou has an interest in global macro trends, financial markets and equity research and enjoys applying a combination of the three in his investments. His eventual investing goal is to manage a risk parity portfolio and achieve true financial freedom. 

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More you need to know about Netlink Trust IPO

More you need to know about Netlink Trust IPO

Netlink Trust IPO #ipo..capturing news as it happens. One of the better prospectus written compare with Hrnet/WorldClass. Absolute must jeep due to the multiple growth story. 5 LEMONS!!! $NetLink NBN Tr(CJLU.SI)

—This post was solely written and contributed by our community member, @GrandpaLemon, in the InvestingNote platform and reposted on our blog.  This article was first posted here.

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Price: S$0.81 (https://www.reuters.com/article/us-netlink…)
NAV: S$0.8635 (3,336,639,000 / 2,898,000,001 Units) page 77
P/B: 0.93
DPU: 0.044
Yield: 5.43%
PE: 39.3
Market Cap: S$3.13 billion
Distributions: Semi (March and September)

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Comparison of Yields:
Netlink Trust 0.044/0.81 = 5.43%
Keppel DC Reit(AJBU) 0.0614/1.265 = 4.85%
AusNetServices(AZI) 0.0860/1.765 = 4.87%
ParkwayLife Reit(C2PU) 0.1212/2.620 = 4.63%

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Stock Picking Strategy Series: Benjamin Graham’s Net-Net Stocks

Stock Picking Strategy Series: Benjamin Graham’s Net-Net Stocks

If you like this column, please start voting which stocks you would like them to write on in their next article! This is your chance to interact with them and they will write on the most voted stock of your choice!

How to vote: Comment on only one Logistic listed stock of your choice mentioned in the article. The most number of likes/comments by tomorrow morning will be chosen. It’s that simple!

Voting starts now and ends at tomorrow (12 July) when market opens (9am)!

Disclaimer: this article simply provided analysis on stocks from the fundamental perspective, it does not represent any buy/sell recommendation from Investingnote. *All the dollar unit ($) in this article refer to SGD.

Benjamin Graham is widely considered as the father of value investing, with disciples including Walter Schloss, Charles Brandes, Irving Kahn and most notably Warren Buffet. Graham is perhaps more famously known for penning two of the most influential and acclaimed investing classics: Security Analysis and The Intelligent Investor, the latter which Warren Buffet described as “the best book about investing ever written”.

Today I will be looking at one of Graham’s famous proven stock picking strategies, which is the Net-Net Strategy. Essentially the strategy is derived from a valuation technique that determines the value of a company in the event that it has to liquidate and sell off all of its assets. The practicality in looking at liquidating value comes from the logic that if the price of a stock sells persistently below its liquidating value, then either 1) the price is too low or 2) the company should be liquidated. As succinctly put by Graham:

“Very few companies turn out to have an ultimate value less than the working capital alone, although scattered instances may be found.”

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SingPost(S08.SI): From snail mail to eCommerce

SingPost(S08.SI): From snail mail to eCommerce

This column is written by @j_chou

Jay has an interest in global macro trends, financial markets and equity research and enjoys applying a combination of the three in his investments. His eventual investing goal is to manage a risk parity portfolio and achieve true financial freedom.

Company Overview

Singapore Post Limited is the national postal service provider in Singapore. Besides providing domestic and international postal and courier services, the company also offers end-to-end e-commerce logistics solutions.

Key Highlights

-Decline in 4Q17 logistics revenue

Logistics revenue of S$154.7m in 4Q17 was down 7% quarter to quarter after enjoying continued growth seen in previous quarters. Operating margin in the logistics segment decreased from 6.2% in FY16 to 3.7% in FY17. This could be likely due to Quantium Holdings and Famous Holdings being affected by depressed freight rates and volumes across the freight forwarding industry.

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Making it to the big screen: A primer before its upcoming EGM on 27th July: MM2 Asia(1B0.SI)

Making it to the big screen: A primer before its upcoming EGM on 27th July: MM2 Asia(1B0.SI)

Company overview:
mm2 Asia is a leading producer of films and TV/online content in Asia. As a producer, mm2 provides services over the entire film-making process – from financing and production to marketing and distribution. mm2 also owns entertainment company, UnUsUal, and cinemas in Malaysia. Recently, it was announced that mm2 Asia has expanded its scope of its Singapore business horizontally by purchasing a 50% stake in Golden Village stake.

The Core business segment is engaged in production and distribution of motion picture, video and television program and sponsorship, and. The Cinema operation segment includes sales of cinema ticket and concession, hall renting and screen advertising.

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Will Vallianz(545.SI) be the next Swiber? A primer before its upcoming AGM on 7th July

Will Vallianz(545.SI) be the next Swiber? A primer before its upcoming AGM on 7th July

This column is written by @j_chou

Jay has an interest in global macro trends, financial markets and equity research and enjoys applying a combination of the three in his investments. His eventual investing goal is to manage a risk parity portfolio and achieve true financial freedom.

Vallianz Holdings Limited is an established provider of offshore support vessels (“OSVs“) and integrated offshore marine solutions to the oil and gas industry. Headquartered in Singapore, Vallianz serves oil majors and national oil companies worldwide, and focuses on supporting customers’ offshore oil and gas exploration and production operations. Today, the Group owns and operates a young fleet of 55 OSVs while its associate owns and operates another 20 OSVs. Vallianz covers markets in the Middle East, Central Asia and Southeast Asia.

Investment Thesis

Vallianz was not spared from the downturn in the oil and gas industry as it struggles to keep its finances under control in order to stay afloat. Despite positive news in the form of numerous contracts from the Middle East revenue has been decreasing year on year from FY15 as the company continues to weather the brunt of the negative impact from decreased capital expenditures and offshore drillings from the international and national oil companies.
Management has been active in restructuring the company’s finances to ensure short-term liquidity but it is at best a temporary measure; in the current climate of low oil prices Vallianz is not in control of its own destiny. Given a rising interest rate environment if the situation persists there is a higher probability of the company defaulting then to expect a reversal of fortunes.

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