Stock Picks Explained

Current  Stocks

Colex Holdings

Strong earnings growth and a pure Singapore play makes this illiquid stock look attractive. 

F&N

This stock will replace exposure to the dairy sector that Etika now no longer has. Still has strong brands that can offer inflation adjusted growth.

GMG Global

this is my cyclical story. i like it for the fact that it has presence in Africa. it has had a rights issue and its share price seems to be stuck at $0.105-0.110 range. My guess is that it is a stock that will have many cycles and hence opportunities to get in and out.

Hong Leong Finance

One of the cheapest bank I can buy and will give me access to upside resulting from higher interest rates.

Krisenergy
Firstly, writing in Mach 2015, I think crude oil (Brent) prices have reached a floor and a rebound is inevitable. The full effects of the current low oil price on earnings will be seen by the second quarter of 2015 but lower earnings should have been priced in. I will now just have to patiently wait and stay solvent to reap the fruits. Secondly, there is are many big hands holding on to this stock at a much higher price, and this will limit the downside of a stock that has fallen by half since listing on the stock exchange. Lastly, it has been 18 months since the listing of KrisEnergy and it is safe to assume that the lock-up period is over and anyone who got the shares cheap (management, IB, underwriters, etc) have cashed out , further limiting downside.

Petra Foods
It was between this or Wilmar. I like stocks that are in the non cyclical consumer staple segments although there is this risk of over exposure. Eventually, once Elite KSB pays out its dividend, my exposure to the sector will be re-balanced.

Super Group
I have to admit that I bought this because the price dipped to a attractive level. In terms of metrics, the stock is priced above average in terms of PE despite a very weak back drop. The sell trigger for this stock will be the SGD 5 dollar mark.

Sold/De-listed

Action Asia

Undervalued relative to its earnings. However, bulk of its earnings comes from Philips. That said the company will ride on the wave on increasing auto ownership in China, an opportunity to install more of its sets there.

Asiatic Group

I love the idea that it is generating electricity in Cambodia. It will take some time to figure out the real contribution of power generation to its top and bottom line. Financing is also an issue. Nonetheless, it has secured good partnership and it is a stock worth one year's wait to see if its potential is revealed.

Auric Pacific

Undervalued relative to its earnings and book value. Will turnaround in FY10 and hopefully its venture into the real estate investment business will not falter.

Biosensor's

One of my speculative stocks. I think it is the only bio tech stock in Singapore. i am not certain that it is worth investing. my judgment tells me that its presence in china and its superior trial data makes it a good bet, till at least when there is a better drug eluting stent to siphon earnings from its cash machine. please note that it has bonds due to refinance in November.

C&O Pharmaceutical Tech Group

Although it is not cheap in terms of valuations (12 times trailing earnings but 3 times book), the company has been steady in terms of revenue growth as well as dividend payout. my theory is that there is a possibility it will turnout to be a Sihuan Pharm - overlooked and will eventually de-list at a premium (fingers crossed).

China Animal Healthcare

Thought i managed to get a bargain buying in at 26.5 cents. Turns out the bottom is even lower, closer to 22.5 cents that is despite an earlier runup to 30 cents. I dont think this is a bad stock. will have to see how the proposed qualifications to its manufacturing facilities will pan out. hope this S-Chip wont burn me.

ChinaMilk Products
Very good margins and undervalued by most measures. In a very unique industry which is not commoditized.

Elite KSB

Very thinly traded stock. I like it because it is one of those boring stocks. heck, it is the only listed chicken processor that i know off. nonetheless, i know that the upside might be very limited. i see 26cents as the upper threshold. good management with clever acquisition.

Etika international

Should have seen it earlier. took notice when i realised that Wilmar linked PPB group has a 5% stake in the company. thinly traded is also an issue but its revenue and bottom line look to grow exponentially as it tries to enter new markets.

FJ Benjamin

I borrowed $500 from my friend to buy 4 lots. I bought it blindly to follow Jim Cramer's advice of getting a retailer. in my opinion, its fortune traces the general stock market. i wish i had bought more of it but what it has done for me is sufficient.

Genting Singapore
The only one of two casino operators.

Noble Group

Opportunistic play. I am buying because I think it is a good company with a good story. The missing ingredient is its lack of management succession. Once the company sorts this out, it is on track to continue its growth, riding on the secular commodities trend.

Singapore Petroleum Company
I needed exposure to the oil and gas industry after reading Jim Cramer's book Mad Money.

Stratech

Another speculative stock. It is less cyclical now and has that certain vibe around it. this recent acquisition will be held on for a year as well. its technology is good. it might not be the best but due to the fact that defence agencies do not like to change the platforms, should mean repeat customers for its intelligent vision technologies.

TPV Tech

manufacturing LCD monitor and television. I hope it does not become another RCA. will have to watch and monitor the trends in television sales. the challenge from plasma is not there but LED becoming cheaper might give it a run for its money.

UOB-KH

I had only the money to buy this financial. I think im going to keep it for a while for its attractive dividend yield.