Monday, June 9, 2014

Some Interesting Finds

I haven't been looking at SGX stocks lately, mainly due to me not being free whilst I was studying for my CFA exam, but also because the SGX has been on a rip lately.

Just going to list out a few names in my sights for now.

Hock Lian Seng is looking rather juicy. It just went ex-divided at around 6.3% early last month. Today it closed quite low, pushing it's expected dividend yield up to 6.9%! On top of that, it is 8% undervalued compared to book value. An engineering and construction businesses, seems quite traditional.

Low Keng Huat doesn't seem to be there yet. Looking as seasonal factors, there is still room for share price to drop over the next few weeks, where people unload their shares after collecting their dividends. Yield looks rather decent at 4.4%, but I am expecting it to push lower before I would consider picking some up. Yield still looks okay, though I wish it would be better, considering the business. I suppose their construction side evens out with their other businesses, making it half defensive, half cyclical.

Super Group, of course, is looking very tempting. I feel very tempted to try and catch this falling knife, but I think I shall reserve my purchase when things looks better. It's giving out 4% dividends now, which is rather generous, considering it's defensive nature. (it sells addictive drugs - namely caffeine, haha). I think

I am looking to buy at these price targets:
Hock Lian Seng: $0.26
Low Keng Huat: $0.63
Super Group: $1.30

I think I am probably one of the few crazy people looking at horrible stocks now, haha! Many of the other stocks that I have short listed are looking a bit... extended, even from a short term basis, not even talking about longer term. For now, I've placed an order for HLS for tomorrow's open, let's see how it goes!

*Still waiting on OUE Comm to hit $0.79 and Lippo Malls to hit $0.40. I believe that these 2 trusts are the last 2 trusts of all the listed trust on the SGX that offer good relative value. If things go bad for the sector, these guys will probably not get hit as hard as the rest.

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