Friday, January 4, 2013

SGD 8,303 buy what stock? (updated)

After going through the various savings account that I have, I think I might have enough to make a final purchase for 2013.

My current shortlist includes:

Noble Group (existing holdings). I could load up a bit more on this stock. The outlook for hard commodities is firmer than the soft commodities. Noble Group however has got a succession issue.

Sheng Siong. I am thinking of buying this stock as a yield play. However, the company has got less than 5 years on the stock exchange. Moreover, when I think of how PSC did not make it, I think of Sheng Siong.

SingPost. Another yield play. The price has been lifted up mainly on the news that some of its property are going to be sold off. Core business has remained steadily declining due to the phasing out of traditional mail use.

 I am not too keen on S-Chips so ideas are welcomed!


I think Teh Hooi Ling must have heard me! In January 6, 2012 Sunday Times Money section, she wrote and posted a list of stocks screened for dividend yield and price-to-book. I leave it to you to read what she has written, but the summary is that undervalued stocks will appreciate eventually, so make sure you get dividends while waiting and that the stock is really  undervalued rather than it being a case of overstated assets.

With regards to her list, the large market cap stocks are mostly Reits, while the medium to small cap stocks are mostly manufacturing stocks that are very thinly traded. There are also some S-Chips, which is something I will avoid.

Investigate the list and prosper eventually.


  1. swiber, nam cheong, tuan sing, wing tai, golden agri, noble.

  2. swiber and nam cheong got weak outlook.

    will investigate tuan sing.

    wing tai has got exposure to property which is a downside.

    between GA and noble i will choose noble as i already have its shares. thanks for input!

  3. With this amount, one can consider Venture Mfg already, abt 6.5pct yield and some potential price upside? I see quite a number of houses are bullish on Nam Cheong and Swiber. Vicom is another very strong defensive stock.

    1. if i were to buy Venture, i should have kept TPV which is about same in term of exposure to the tech manufacturing sector. however there is a big difference in the size of each conpany with TPV being the smaller company.

  4. There's only 1 stock for u to buy - 2nd Chance. 9.5% yield at $0.40 currently. Beats all counters. Consistent growth for the past 4 years. With the recent peak at $0.44, it'll have potential to reach that level very soon making easily 10% profit.

    What you think?

  5. vanson,

    i have to go check 2nd chance out. it is a stocka whose upside depends on its properties, meaning an asset play...

  6. I blogged about 2nd Chance and my concern with its declining EPS recently. As investors, performance on a per share basis is important to us.

    1. i just read your post published dec 26, 2012.

      declining eps is an issue affecting share price appreciation but as mentioned, you could buy it as an asset play.

      thanks for pointing out your helpful post!