Darrenocl's Finance Blog

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 VIC...

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...

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...

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 p...

Ever since I got the green light from my father to manage a portion of the family's fund, I have been thinking non-stop about how I would like to allocate it. I am not talking about splitting it between bonds and stocks. Instead, I find myself asking "How many counters should I have in my portfolio?"  I don't know why, but instinctively I came up with the idea that I should not hold more than 10 counters (+/- 2). I am planning to divide the total amount of capital up equally and buy 2 counters every quarter so that I will have a total of 8 shares by the end of one year. Going forward, I would relook into those shares that I've held for at least a year and access whether or not the shares continue to fit my investment criteria . If not, I would simply sell them away regardless of the profit/loss and buy the next 2 counters which I like. I feel that having too many stocks on one's portfolio makes it very cluttered and you might as well buy an ETF instead....

Chart from InvestingNote Current Price: $1.06 Target Price: $1.20 Upside: 13.2% Business Description UMS Holdings Limited is a Singapore-based investment holding company. The Company provides equipment manufacturing and engineering services to original equipment manufacturers (OEMs) of semiconductors and related products. The semiconductor segment provides precision machining components and equipment modules for semiconductor equipment manufacturers. The others segment is the supplier of base components to oil and gas OEMs. It also provides professional water and chemical engineering solution for the Oil & Gas industries, Power Generation industries and Chemical Industries. It operates in three main geographical areas, such as Singapore, Malaysia and the United States. It also has operations in other geographical areas, such as People's Republic of China, Poland, Taiwan and South Korea. Investment Thesis With the recent stake in JEP Holdings of 29.5%, ...

This is my first post on my blog and I would like to share with you a counter that have recently invested in, China Sunsine (SGX: CH8) Current Price: $1.04 (Invested at $0.88 before starting this blog, check out my current portfolio by clicking the tab above) Target Price: $1.15 - $1 .20 Upside: 13% Business Description China Sunsine Chemical Holdings Ltd., an investment holding company, engages in the manufacture and sale of rubber chemical products in the People's Republic of China, rest of Asia, the United States, Europe, and internationally. The company offers rubber accelerators, anti-oxidant agents, vulcanizing agents, anti-scorching agents, and insoluble Sulphur used for the production of tires and other rubber-related products. The company was incorporated in 2006 and is based in Singapore, with tire companies being its main clients. China Sunsine Chemical Holdings Ltd. is a subsidiary of Success More Group Limited Key Points and Catalyst The global tire market i...