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Why 3 Growth Stocks Are Near Their 52 Weeks High (Guest Post)

Why 3 Growth Stocks Are Near Their 52 Weeks High (Guest Post)

Financial publications and Web sites, such as Yahoo! Finance,publish a list of stocks every day that hit their 52-week high prices and another list of those that sink to a 52-week low.

Given the choice, would you be better offbuying a stockfrom the 52-week high list or the 52-week low list?

The Theory Behind 52-Week High and/or Low

Yes, as you would guessed it, history has shown that many growth companies often have to surpass their 52-week highs multiple times in order to reach where they are today.

Think about the recent multi-bagger stocks like FacebookAppleAEM HoldingsRiverstone and more…

In contrary, companies with bad fundamentals like Noble Group and Singapore Press Holdings (SPH) can reach 52-low and keep drowning to even multi-year low or even go bankrupt.

As such, stocks trading near their 52 weeks high may actually serve as a good technical indicator for winning stocks with great fundamentals and they can often ride to greater heights.

With that, here are 3 small cap stocks listed on SGX that are trading at their 52 weeks high.

#1 Starburst Holding Limited

This post was originally posted here. The writer, James Yeo is a veteran community member and blogger on InvestingNote, with username known as Smallcapasia and has 864 followers.

Starburst is an engineering group that specializes in the design and engineering of firearms-training
facilities. It is headquartered in Singapore, and its customers span across law enforcement, military, security agency, and civil authorities. It has presence in Singapore, Malaysia and the Middle-east.

As of the latest annual report, Starburst’s revenue increased by 29.3% to $9.2 million. Its net loss narrowed to negative $2.4 million from $4.4 million. Free cash flow came in at a negative 1.4 million.

The negative cash flow is due to the increase of trade receivables. It could be that Starburst acquired more clients or provided more services to its existing clients through giving them certain credits. Cash balance of the company was at a healthy level $5 million.

In recent geopolitical tension between several world superpowers, global defence spending is expected to increase. Starburst which is one of the strong players in this niche industry and is poised to leverage on the increased in spending to grow itself. Investors who comprehend this have piled into Starburst for its future growth.

Starburst last closed at $0.42 which is near its 52 weeks high and historic high of $0.44. It currently offers a dividend yield of 5.9% and has no P/E ratio due to its losses.

#2 GKE Corporation Limited

GKE Corporation Limited is an integrated warehousing and logistics solutions provider of solutions for supply chain management. The business activities of GKE can be classified into two broad categories: (i) warehousing & logistics, and (ii) strategic investments. It has presence in both China and Singapore.

As of the latest annual report, GKE’s revenue increased commendably by 21.6% to $107.3 million. Its net profit turned positive to $4.8 million. Free cash flow was at a high of $20.4 million. As a result, cash balance of the company doubled to a solid level of $20.7 million.

Its business has recently turned a corner and investors are scouring for more information about it again. Logistics is one of the shining industries that has showed its resilience and necessity throughout this pandemic.

With E-commerce becoming even more commonplace as buyers are staying at home, logistics as a downstream industry is set to benefit greatly. Investors are catching on this point and have looked towards GKE for signs of growth prospects.

GKE last closed at $0.084 at its 52-week high, which values it at a P/E of 47.1. The company did not announce any dividend for the year 2019.

#3 Frencken Group Limited

Frencken provides comprehensive Original Design, Original Equipment and Diversified Integrated Manufacturing solutions for companies in the automotive, healthcare, industrial, analytical & life sciences and semiconductor industries.

Frencken operations stretch from product conceptualisation, integrated design, prototyping and new product introductions, to supply chain design and management, state-of-the-art value and volume manufacturing and logistics services. It has presence across Asia, Europe and the USA.

As of the latest annual report, Frencken’s revenue increased by 5.3% to $659.2 million. Net profit increased substantially by 41.1% to $ 42.3 million. Free cash flow improved drastically from 2018’s $0.8 million to $79.6 million. As a result, cash balance jumped to $122.4 million

The semi-conductor industry has taken advantage of the strong demand for mobile phones, wearables such as smart watches, etc. The trend is expected to continue and semi-conductors’ manufacturers such as Frencken are expected to benefit from this.

Frencken last closed at $1.17, around its 52 weeks high. This values the firm at a P/E ratio of 11.83 and dividend yield of 2.54%.

Once again, this article is a guest post and was originally posted on Smallcapasias profile on InvestingNote. 

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How to Get Rich (Realistically) and Stay Wealthy (Guest Post)

How to Get Rich (Realistically) and Stay Wealthy (Guest Post)

The majority of the rich who got really wealthy took calculated risks. They also had the foresight to see things that a lot of us would not be able to see.

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This post was originally posted here. The writer, Kyith is a veteran community member and blogger on InvestingNote, with username known as Kyith and 800+ followers.

Rich people surround themselves with people more competent then them in areas they are not good at.

Most of the time, the wealthy was also able to execute their plans very well. You will also find them having the ability listen to others when it is time to listen. But be steadfast when they needed to.

I got very little of these traits.

And maybe that is why I am not rich (by today’s much higher standards). I worked in a firm where we steward our client’s wealth carefully, so I know where I stand in the spectrum of people who are rich and poor.

But I do think that I have enough wealth for myself though. Enough for me to have a conversation with you on this topic.

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3 Dirt Cheap Companies With High Dividends

3 Dirt Cheap Companies With High Dividends

Everyone loves to shop for cheap stocks but wouldn’t it be fantastic that you buy dirt cheap stocks and yet still enjoy high dividends while waiting for your capital gains to come?

 

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We happen to find 3 stocks with such characteristics; check them out below:

This post was originally posted here. The writer is a veteran community member and blogger on InvestingNote, with username known as Smallcapasia, with more than 500 followers.

#1 Willas-Array Electronics Holdings Ltd (SGX: BDR)

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.

Year 2015 2016 2017 2018
Dividend Yield 6.43% 5.34% 12.05%

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.

#2 Ossia International Ltd (SGX: 008)

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.

Year 2015 2016 2017 2018
Dividend Yield 10%

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.

#3 Serial System Ltd (S69)

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.

Year 2015 2016 2017 2018
Dividend Yield 8.09% 4.76% 2.80% 10.12%

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.

Other than just stock discussions, we also have other channels like FX, Personal Finance discussions as we mentioned here.

Become a part of our community and also see what other investors are saying about the current market right now: (click on the view now button)

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ISOTeam trades near 4 year low despite record order books and bright outlook (10 Jan 19) (Guest Post)

ISOTeam trades near 4 year low despite record order books and bright outlook (10 Jan 19) (Guest Post)

ISOTeam (“ISO”) caught my attention. Despite sitting on a record order book, ISO has tumbled approximately 44% from an intra-day high of $0.385 on 10 Apr 2018 to close near a four year low at around $0.215 on 10 Jan 2019. The share price decline was attributable in part to its 4QFY18 surprise loss announced in Aug 2018 (financial year ends in Jun). Nevertheless, my gut feel is that 4QFY18 should mark the trough in earnings and results should improve on a quarter on quarter basis in the next few quarters.

Image result for isoteam

This post was originally posted here. The writer is a veteran community member and blogger on InvestingNote, with username known as el15, with more than 200+ followers.

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

Source: Company

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:

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Is Investing In Growth Always A Good Thing? (Guest Post)

Is Investing In Growth Always A Good Thing? (Guest Post)

This post was originally posted here. The writer is a veteran community member and blogger on InvestingNote, with username known as 3Fs.

When investors like us invest in the stock market, the goal is always trying to grow our wealth over time.

Image result for coin stack

Investors are generally thrilled by the prospect of growth in general, whether they are referring to their income, savings or even the companies that they invest in.

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3 Amazing Growth Stocks Flying Under The Radar (Guest Post)

3 Amazing Growth Stocks Flying Under The Radar (Guest Post)

This post was originally posted here. The writer is a veteran community member and blogger on InvestingNote, with username known as SmallCapAsia.

 

With a higher than average tolerance for risk, I’m a big fan of growth shares and you’ll find a number in my portfolio.

I’m looking at adding a couple more to my portfolio in the near future and three that I’m considering are listed below.

#1 United Global Limited (SGX: 43P)

United Global Limited is an independent lubricant manufacturer and trader providing a wide range of high quality and well-engineered lubricants.

The company produce their own in-house lubricant brands such as “United Oil”, “U Star Lube”, “Bell 1”, “HydroPure” and “Ichiro” as well as manufacturing lubricants for third-party principals’ brands.

United Global Limited serves clients mainly from the automotive, industrial, and marine industries. To date, the company has a wide distribution network covering over 30 countries.

Source: United Global Limited Annual Report 2017

United Global Limited revenue has been moving in sideways in the past 5 years. Despite that, its bottom line growth has delivered spectacular results. From FY2013 to FY2017, the company’s revenue was hovering around USD 100 million.

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Workshop: Build your DIY investing portfolio with 10 Simple Steps

Workshop: Build your DIY investing portfolio with 10 Simple Steps

This latest workshop in our series, is all about helping retail investors focus on key criteria in the stock selection and portfolio allocation process by using a solid checklist.

Serious investing requires the investor to do his homework.

Every piece of homework done needs to follow a structure. Like the great Benjamin Graham and Warren Buffet, great investors always have a plan.

Like the saying goes…”Failing to plan, is planning to fail.”

This is the workshop that teaches you how to plan your portfolio, by first creating the most crucial part of the plan: the checklist.

Whether you’re a totally newbie or an experienced investor, having a solid investing checklist is necessary because it will set the criteria, tone and structure to pick the best stocks and also manage the worse threat faced by investors when it happens – Fear.

In this session, we will share with you how you should build your own portfolio using this 10-step checklist.

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More Than $1 Million In Profit From An SGX-Listed Stock

More Than $1 Million In Profit From An SGX-Listed Stock

We couldn’t help but notice that one of our community members made more than $1 million in profit since buying one of top performing stocks in SGX!

screen-shot-2018-02-21-at-11-59-14-am

In one of our previous articles, we mentioned that this stock gave close to 500% return last year.

It’s AEM Holdings!

MEGA HUAT to all those vested!

If you like this article, we’ve got more. Here’s an invitation to join our community and network of investors who’re actively sharing. It’s free and most importantly, these investors are out to help one another to get better investing outcomes.

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InvestingNote Workshop Series: Growth Investing Workshop

InvestingNote Workshop Series: Growth Investing Workshop

InvestingNote Workshop Series: Growth Investing Workshop

Hi everyone, the next installation of our monthly workshop series is happening on the 28th February, Wednesday.

a-gathering-seminar-series-5-copy

This time, it’s all about Fundamental Analysis: G.A.R.P Strategy.

In Fundamental Analysis, there’s 2 camps: Value and Growth Investing.

While the former looks at stocks trading below their intrinsic value, the latter focus more on the future potential of a company.

What if you can combine tenets of both growth investing and value investing to find Undervalued stocks with sustainable growth potential?

That’s where great investors use the Growth At A Reasonable Price (GARP) Strategy.

This is the workshop which you will learn how to use the GARP strategy to maximise your stock investments.

Conducted by James from SmallCapAsia @Smallcapasia will teach you:

✔ What is GARP Investing
✔ Who are the proponents of GARP approach
✔ Characteristics of GARP stocks
✔ 1 Quick Way to value a GARP stock
✔ How to Value-add with 2 Important Indicators
✔ 3 Case Studies using GARP strategy

**Early-bird discount: GET $10 OFF**

Use code: EB100

Register Now, Come Later!

We’d see you there!

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