We’re having an upcoming workshop next week on How to Find and Evaluate Value-Growth Stocks.
Given that it is a penny stock, the queue in the buy column at that time was very low at 10,000 to 20,000 shares. So, it meant that you could key to buy at a few bits lower than the trading price and, still, somebody was willing to sell the stock to you. However, when one were to look at the the transaction volume, it was another story. It was comparatively huge, perhaps 1 to 2 million shares showing the market was full of spot sellers willing to short the stock for any ready buyer. For the past one year, the share price has been beaten down and was close to 5% of the peak value by end March/early April. This could be one of the best chance to buy the stock at fire-sale price. It can only happen when the market thinks that the company is on the brink of bankruptcy or is widely expecting a rights issue. The company was listed on the stock exchange fairly recently, of less than 2 years and the stock price has been affected by the fallen crypto-currency joint venture and the accounting fiasco that it experienced last year.
With the quantity of shares issued at 200 million, it is possible to buy 0.1% of the company with only $8,000 at the share price of 4 cents. (The pre-IPO share quantity was 35 million from which about $7m was raised.) It means that at 4 cents, it is below the pre-IPO price valued at 5 cents. In effect, it is worth the risk to take the plunge. At most, if the company did go bust (touch wood), I would lost a few thousand dollars. The potential upside should be higher than the downside. …
The Straits Times Index (STI) has rallied close to 10% since January this year.
So what should investors be doing right now? Hold cash? Buy more? Or wait for it to bottom?
The Ministry of Trade and Industry said that the $9 billion investment is almost two-thirds of the IRs’ initial investment of about $15 billion in 2006.
According to the Straits Times, MBS and Resorts World Sentosa (RWS) will be allowed to expand their casino operations, with their exclusive rights to run a casino here extended until the end of 2030.
However, their gambling revenue will be further taxed by the Government. This means that casino levies on Singapore residents will be increased. The daily levy will go up from $100 to $150 from Thursday (April 4), while the annual levy is being increased from $2,000 to $3,000.
Genting Singapore, which has its key business vested in RWS, has inadvertently been drawn into the limelight.
Genting Singapore has announced the plans to invest $4.5 billion to renew and refresh Resorts World Sentosa (RWS).
In view of this investment, the government has agreed to extend the exclusivity period for the two casinos at RWS and Marina Bay Sands (MBS) to end-2030. MBS, on the other hand, also committed to a $4.5 billion investment to expand its property. …
There was also a protest by disgruntled Hyflux investors at Hong Lim Park over the weekend.
I chanced upon the article on Hyflux story so far in BT Weekend, 23-24 March 2019. Given that it had listed the debts raised in the past years, I decided to compile them into a timeline in hope to have a better picture of Hyflux’s current predicament. What really puzzled me was the perpetual raised in 2016. It was stated that the perpetual of $500m was raised to redeem the two tranches of perpetuals raised for institutional and accredited investors. The first was $300m perpetual @5.75% raised in January 2014 and the second was $175m perpetual @4.8% raised in July 2014.
Just purely from a financial management point of view, why is Hyflux willing to raise perpetual at 6% to redeem perpetuals at lower coupon rates. After all, the 4.8% and the 5.75% perpetuals were hardly 2-year old 3-year old respectively when they were redeemed. Why was Hyflux so anxious to redeem those perpetual bonds when the perpetuals are still so recent by any standards.
We happen to find 3 stocks with such characteristics; check them out below:
Willas-Array with major markets in China, Hong Kong and Taiwan is principally engaged in the distribution of electronic components for use in various industries as well as the provision of engineering solutions.
It also has long standing relationships with 20 internationally reputable principle suppliers and carries a wide product mix over 10,000 product items and cater to over 3,000 customers.
The company has declared a final dividend of HK$0.42 on 30 May 2018 for the financial year of 2017. The dividend yield based on the price of SGD$0.595 equates to whopping 12%. The company has been distributing out dividends from 2015 to 2018 with an exception of 2016.
From a valuation stand point, the company is cheap valuing at P/E 5.04x and Price to Book Value of 0.44x.
That said, the high dividend might not be sustainable given the cashflow used in operating activities for the past 2 years (2017 & 2018) have been negative. Furthermore, the debt to equity ratio for the company is 2.11 and on the high side.
Ossia has started as a footwear manufacturer but has grown into a regional distributor and retailer of lifestyle products in the Asia Pacific region.
The company has exclusive distribution, license and franchise rights for the Fashion apparels e.g. Elle, Bags/accessories e.g. Tumi, Hedgren etc and Sports apparels e.g. Columbia. The company also has a 19.8% stake in Pertama Holdings Pte Ltd which owns the Harvey Norman retails stores in Singapore and Malaysia.
The company has declared dividend of 4 cents on 31 July and 6 cents on 5th December 2018. Based on the current share price of $0.10, the dividend yield is a high 10%. The company has not distributed any dividends from 2015 to 2017 as net income is negative during this period.
The company is cheap valuing at P/E ratio of 4.72x and having a Price to Book ratio of 0.64x.
The company has no track record distributing dividend consistently and 2019 results has not been good so far. However, with the closure of under performing brands and disposal of properties, there might be a chance for the company to dish out yet another fat dividend.
Serial System is involved in the distribution of electronic and electrical components, and trading and distribution of fast-moving consumer goods, photographic and timepiece products.
The company has been consistently distributing cash dividends from 2015 to 2018 and the dividend yield ranges from 8.09% to 10.12% for the previous financial year.
The company’s valuation is cheap with P/E ratio of 3.39x and a Price to Book ratio of 0.42x.
The cashflow from operating activities has been mixed for the past the few years. Moving forward, we are cautiously optimistic that the company will continue the dividend distributions but the dividend yield will vary depending on the company profit and free cashflow.
Once again, this article is a guest post and was originally posted on Smallcapasia‘s profile on InvestingNote.
He also does premium analysis on a monthly basis, so check it out here.
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Since my last post, I’ve received some queries asking about my specific positions. With the CNY break around the corner, I’ve some time to put all this up. Some have asked me why I’m no longer putting up my extensive writeups on stuff that I’ve done DD on. Well, that’s cos I’m mostly working on global equities, particularly US ones, and I don’t think there’s much appetite for that here.
And anyway, I did put up in fact:
OK, I can’t find the one on DIS right now, but I’m sure it’s somewhere around.
This post is specifically on the US portion of my portfolio, excluding the SG and the bond portions.
Since my last post (1st Post Of 2019.), things have gotten… even better. MUCH better.
I’d have taken a 22.11% return and ended 2019 right there and then. Yet, TTI’s US portfolio continued outperforming S&P and other index benchmarks massively.
As of end Jan 2019, the ROI shot up to 28.36%.
NAV rose from USD 441,055.43 to USD 550,988.57, and that’s after a withdrawal of USD 14,716.20 made.
Net quantum gain in Jan 2019 alone was thus USD 124,649.34.
The best 1 day return was on the 04th Jan 2019, when the portfolio gained 7.32% in a single day, while the worst was on the 03rd Jan 2019, when the portfolio fell 4.45% in a single day. …
As this company is a potential turnaround play, I have arranged a 1-1 meeting with Mr Anthony Koh, Executive Director and Chief Executive Officer and Mr Richard Chan, General Manager (collectively, “Management”) last month. First, a description of ISO…
Description of ISO
ISO has grown from a company doing repairs and redecoration (“R&R”) & addition and alteration (“A&A”) projects in 2014 (when I first met them) to a multi-disciplinary company which provides complete solutions to the built environment. See Figure 1 below for its business segments.
Fig 1: ISO complete solutions provider
Key takeaways from the meet-up
1.4QFY18 loss was due to several factors, some of which are unlikely to be repeated
ISO reported a 4QFY18 net loss of S$2.0m in Aug 2018. Overall, FY18 net profit dropped 71% from S$6.4m in FY17 to S$1.9m in FY18. This drop was mainly attributable to the following factors, some of which are likely to be one off: …
With the introduction of the new cooling measures, which coincides along with the increase in tandem in interest rates, it brings the share price of City Development (CDL) down from the 52 week high of $13.6 to the last closing price of $8.08. (Jan 4th 2019)
That is a very sharp decline and if you are an investor who buys at the peak and it can get very painful to see your portfolio colored in a patriotic sea of red.
But is there value now in the company after such a steep decline?
Cooling Measures In This Decade
For years since post gfc days when the first cooling measures was introduced in 2011, the demand for private property and residential has been pretty stable and moving. It never for once dent the expectations of the public that property prices are going to come down because of the measures put in place.
The recent 40+% sell-down of Sunpower caught my attention as it has always been on my watchlist due to its strategic positioning in the “Green” China economy. Upon further research, it seems that the event-driven selldown had nothing to do with the fundamentals of the company, which in fact were improving (increasing order book size, earnings, and operating cash flows). In order to keep this post brief, I have attached useful sources below that goes into detail the long-term investment merits of Sunpower as well as the recent events that transpired.
The Event – America 2030 Capital
In summary, Guo Hongxin (Founder & Executive Chairman) and Ma Ming (Executive Director), made personal loans by collateralizing their Sunpower shares (approx 1.89% of Sunpower’s total issued shares). The lender is America 2030 Capital. However, the collateral was allegedly forfeited as they had breached terms in the loan contract (this is currently being disputed between borrower and lender). Hence, America 2030 Capital took control of the collateralized Sunpower shares and supposedly sold in the open market, which caused the sell down.
Guo and Ma then obtained an interim injunction to prevent America 2030 “from selling or otherwise dealing in company shares which were used as collateral for personal loans”. They also “lodged a report with the Commercial Affairs Department of the Singapore Police Force over the loan agreement with America 2030”. …