Saturday, November 20, 2010

Looking For Investing Ideas Between S$2,000 - S$3,000

About $500 worth of dividends over the past and coming few days. While I am about $1,500 short before reaching the $20,000 mark of capital invested (money from my salary, not from gains and dividends). If I were to divest some of my smaller loss-making positions, namely Asiatic Group (break even) and Stratech, (down 2 cents from purchase price) it will top the amount to $3,000.

A slight deviation. I have been holding on to Asiatic and Stratech since the middle of last year. Although the power making Asiatic has seen a run up in share price, it was all down hill for motion sensor company Stratech. After a brief turnaround, which saw it being taken out of the SGX Watchlist, Stratech slumped back into the red with a loss-making 6 months.

What will I do with the $2,000 - $3,000? Since the end of the month is coming, I am feeling trigger happy but there a lack of good investing ideas. I flipped through my dad's past edition of Shares Investment and struggled to find any leads. I would like to average up on my existing holdings, namely Etika International or C&O Pharmaceutical but it would dilute any sense of "multi-bagger-ness". I did also consider China Animal Healthcare, but the stock has had its dual-listing almost priced in. I can of course keep the money as a cash buffer in my portfolio.

Here is a list of companies other than I am holding that I may research and take action on, if you have other good SGX-listed investing ideas, do post your comments!

1. Del Monte Holdings. Very illiquid stock doing FMCG which is an industry I love most.
2. Ezra Holdings. Very geared company but it is making its move to cement its market share through latest acquisition of Akers. But I can only buy one lot.
3. AusGroup. Exposure to the Australian mining sector but as a contractor, it is prone to margin pressures as well as competition from outside Australia.


  1. Perhaps, as a suggestion, holding cash now would be the wisest choice? :)

  2. Perhaps, you should go for value hunting for good company. Buy a good stock at a cheap/reasonable price and not a good company at an expensive price.

    Worse strategy is to buy terrible company at a cheap price!


  3. MusicWhiz,

    holding cash is a possibility. But I do want to hit the 20k mark in equities.. afterwhich i can start saving for my future (wedding and house namely). My journey for the latter two has not even begun, compared to Wealthbuch's. lol.


    In my opinion most of the stocks are reasonably priced at current year's earnings levels. Anyway my investing style is more of whether the broader market has got legs. The good times to pick up cheap and good or cheap and terrible, an still make money is over. I think its getting quality right now.

  4. Look harder, there are still some blue chips that are still undervalue in S'pore. You have to do your homework, read into their balance sheet, historical value and its industry.

    I am still topping up on my holdings in these companies for the past 1 year plus.

    Remember, as long as the bull are intact, good blue chip companies share prices will still climb on average + issue of dividend. Patient to hold is the key.

    Well, I can only say go for good company at cheap/reasonable price if not better don't throw your money away unless you are very sure.


  5. Anony,

    When you say undervalue, how would you define it? Do you men undervalued compared to FY10 or FYE11-FYE12 earnings?

    I do not disagree with your opinion that there may be companies that are still undervalued. But again, I tend to view that good or bad stocks are in demand if there are catalysts. At the moment, I would agree with you that the bulls are still intact at least for the next 1-2 years.

    even if there were to be a flat year, at least for you, you will be sitting on a good yield from your blue chip companies that you have been building your position.

    Cheers to the weekend.

  6. Hi, you are good in picking shares.. :D

    I think you can concentrate on increase the holding on those you had bought.

    Just my POV

  7. Hi dude,

    I think you shouldnt be too impatient to invest your money just to reach target investment of 20000.


  8. Ausgp is a very bad choice.

  9. Well, you can have a look at Fuxing, grossly undervalued stock on SGX, not noticed much as covered only by NRA Capital. Hovering about $0.165-0.17 (NAV= 0.26 approx based on RMB1.35)
    Huge nett cash position, has paid dividends yearly, good profit margins (>20%)

  10. Dear All,

    based on the feedback and comments that i have recieved, i think i might do a look at Cogent Holdings.


    why is AusGroup a bad choice?


    i am not looking at another S chip in my portfolio. also, i am not very positive on fuxing due to the nature of its business.

    cheers on a saturday