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Showing posts from February, 2018

Watchlist for March 2018 [Update]

Due to the nature of my investment strategy, earnings release would usually cause movements in what it deems as an attractive stock (Above average business at below average prices).

I will be zooming into these 2 stocks for my purchase in 2Q18. My plan is to put SGD 11,250 in each of these 2 counters and hold it for at least a year before reviewing them again.

The first of which was mentioned in my previous post:

VICOM Limited (SGX: V01)

Current Strategy Statistics as of 26th Feb 2018
Market Cap: SGD 534mn
EBIT/Enterprise Value: 7.1% (Ranked 13th)
EBIT/(Net working capital + Net Fixed Assets): 94.7% (Ranked 3rd)

Almost every driver/rider on the road knows VICOM, including myself. It is majority owned by ComfortDelGro, you know, the taxi company. Revenues dipped 4.15% YoY in FY17, which indicates that motorists may be taking their vehicles to other inspection centres.

A quick search on Google shows that there are 3 main vehicle inspection centres in Singapore, namely VICOM, STA, and JIC.…

Watchlist for March 2018

Recent Updates: I have liquidated my holdings in Starhub for a loss. I am forcing myself to be disciplined by closing out my positions from my legacy portfolio and investing them in stocks that I see potential based on my new found approach to investing.

Below are the stocks that I will be considering for my purchase in March. I will be looking to acquire 2 stocks. The ranking below is based on a total of 42 stocks that fit my criteria as of writing this post.

Delong Holdings Limited (SGX:BQO)

Market Cap: SGD 425mn
EBIT/Enterprise Value: 105.3% (Ranked 1st)
EBIT/(Net working capital + Net Fixed Assets): 51.7% (Ranked 7th)
Business Description: Delong Holdings Limited is an investment holding company. The Company is principally engaged in the manufacture and sale of hot-rolled steel coil (HRC), with the People's Republic of China as its principal market. The Company operates through manufacture and sale of hot-rolled steel coils and billets segment. The Company's other operations i…

Buy? Hold? Sell?

The recent decline in equity prices has gotten everyone a little jittery. Many questions start to surface: "Is this it? The crash that some have foretold? Should I add more, or should I wait a little more to see how things develop?" These are perfectly reasonable questions and I am going to share my view in this post today.

Personally, I see no fundamental change which warrants such a large decrease in equity prices. The bears might argue that valuations are overheated, but I believe that companies are set for a healthy round of earnings in 2018 due to the US tax overhaul. (Source)

Some are also pointing to the fact that the Fed might increase the pace of rate hikes, which will increase the borrowing costs for corporations, and slow down growth. But one has to remember that the Fed will want to increase interest rates when there is inflation, and inflation is a sign of growth.

My personal take is to buy the dip. I entered an order for UMS holdings yesterday when prices decl…

Straco Corporation Limited (SGX: S85)

Recently, my screener (find out more via the tabs above) identified Straco Corporation Limited ("Straco") as a potential investment. The screener considers this company as one that has the promising combination of being cheap and possessing a good ability to generate returns on its invested capital.

Straco is currently ranked 3rd on my list. It has an earnings yield of 11.1%, and a return on invested capital of  61% as of 3rd Feb 2018.

Business Description: Straco Corporation Limited ("SCL") was listed on the Mainboard of the Singapore Exchange on 20 February 2004. Since then, the Group has been one of the first few foreign companies that have managed to build up significant presence and influence in the tourism industry in China. The Group showcases high-quality tourism-related projects, incorporating entertainment, education and culture to create a unique experience for visitors and audiences. These projects include giant observation wheels, large-scale public aq…