Wednesday, February 29, 2012

Results out: Noble, China Animal and Auric

Full year results for Noble Group, China Animal Healthcare and Auric Pacific were out on February 28. Noble posted 42% increase in revenue but profit fell 28% due to "transitory events" that occurred in the third quarter. Noble announced a US 1.65 cents dividend for the full year.

China Animal Healthcare revenue up 30% but profits surged 84% due to better margins for its products. China Animal announced a RMB 3 cents dividend.

Auric Pacific's revenue increased only 0.4% but earnings grew 36% due to low-base as well as investment related gains. Auric declared dividends of SGD 3 cents.

Wednesday, February 22, 2012

GMG Global makes big acquisition

GMG Global recently announced its full year results and a big acquisition. The acquisition of a Belgian company already in Africa, Siat,  is is expected to cost GMG Global SGD 230 million in cash. I will try to provide an extended analysis much later but for the moment, this acquisition represents an exciting development due to its scale. According to the announcement, Siat has total natural rubber concession of approximately 51,500 hectares. Since the takeover by SinoChem, GMG has embarked on mega deals, consolidating its position and adding capacity. But is this sustainable?

Thursday, February 16, 2012

Sarin Technologies

Here are some charts and articles on Sarin Technologies. The company makes machines that cuts diamonds. It has doubled in terms of share price five years ago, and at its lowest in 2008/9 financial crisis, increased 10 times in terms of share price. Interestingly, this stock has been covered by donmihaihai.

The chart that I have generated above shows quarterly revenue and earnings, as well as the 4 period simple moving average of earnings and trailing twelve months earnings.  Had you bought it the time it announced its first quarterly loss for FY2008 which was announced in February 2009, held it till today, you would be sitting on a very good dividend yield and capital appreciation!

Tuesday, February 14, 2012

Earnings Brief: Capitaland, Sarin and Elite KSB

Capitaland announced that its earnings for FY2011 fell 10.8 per cent to SGD 3.01 billion. Profit after tax and minority interest fell 25.8 per cent to SGD 1.06 billion. The company has proposed a 6 cents ordinary dividend along with a 2 cents special dividend.

Maker of diamond cutting machines Sarin Technologies announced FY2011 revenue of USD 57.8 million, along with earnings of USD 17.4 million. US 1 cent ordinary dividend was declared.

Elite KSB HY2012 revenue edged 4.3 per cent higher to SGD 46.9 million, with PATMI of SGD 3.7 million. To most people's disappointment, there was no dividend declared although it has declared a sale of property.

Sunday, February 12, 2012

Stuff I am thinking about : China Animal, Neratel and others

I had a quiet weekend spending money, buying stuff for my weekend football games. Unsurprisingly, I went to Queensway Shopping Centre to get my new pair of boots as well as some footballs.

But before I went there, I read a few posts online regarding China Animal Healthcare and its interesting sell queues. I spent a little time vexing over this issue because while the writer had put a positive spin on it, most of us cynics would try to understand the underlying reason as to why a substantial shareholder wishes to pare down its stake in the company. It is worrying because against the backdrop of a broader penny stock rally China Animal Healthcare's share price has been stuck at 24-26 cents. Furthermore, this selling is ahead of the company's announcement of its results. The truth will out.

The other thing that I was thinking about is ST Engineering's acquisition of Nera Telecommunications. The stock has not moved much in terms of share price, but it has rewarded those who hold it for its dividends with a decent yield. For some, it will be a pity. However, it is almost inevitable when a company that is consistently generating cash but not able to grow in size, to be swallowed up by a bigger entity. The alternative would be for the company to be taken private. In this case, I guess the offer by ST Engineering is too good to resist and maybe most of its senior management wants to take a break.

We are already into the second month of trading and things have started looking shaky as one head of equity research put it. I will hold my breath.

Friday, February 10, 2012

Etika shows recovery for FY 1Q2012/13

Revenue increased 19.6% to RM 246.7 million for the three months ended December 31, 2011. Profit after tax, minority interest grew 35.8% to RM 5.4 million. Margins have improved slightly due to stabilising of raw material costs. These numbers are not impressive but point towards a recovery as the company gains momentum in its effort to reap the synergies from its earlier acquisition. More here.

Sunday, February 5, 2012

My Holdings As Of February

The chart above shows my holding based on their current market value. It shows clearly how concentrated I am to just a few stocks, although there are 12 names on that list. The top three holdings - Etika, GMG and Elite KSB - make up slightly more than half my portfolio value. Overall, I have a good mix of cyclical and defensive stocks.

Stocks that I would dispose of would be the three smallest holdings - China Animal Healthcare, TPV and Stratech - because it is not effective holding on to them. That is unless I average up and the prime candidate would be TPV. I am getting jittery over China Animal because its share price does not seem to move in line with the broader penny rally.

The column chart above shows the profit per share in absolute terms as well as in percentage terms. Biosensors is the only "multi-bagger" with slightly more than 200% gains and there are four stocks that are in the red. I will probably overlay and updated chart with this to form my next commentary. This second chart shows just how average I am, but I have managed to avoid big losses.

Saturday, February 4, 2012

Calling for stock ideas (SGX-listed)

Hey Guys,

I am looking to invest in SGD 5,000 for at least two years. If you have good ideas, post them in the comments section. Many thanks!

Don't trust people with your money too easily

This is a great read from which tells us not to trust the various experts in the market. The article struck a cord with me because I was reading some forecasts which incidentally were grounded on Technical Analysis. Some of the Technical Analysis are too fuzzy, often requiring the retesting or confirmation of multiple levels in between. Upon careful reading, they often seem to say "if the stock does not go up, it might go down or stay the same".