Friday, March 3, 2017

Counters In My Watchlist

Last weekend, I scouted the whole of SGX for counters to buy. But I eventually only bought 1 counter. In fact I fully sold 3 counters while some of the counters in my portfolio were partially sold.

As stated on my Facebook Page and IN, many of the counters that I came across did not react in the way I expected it to be.

One example was Rowsley Ltd - a Peter Lim company. It made significant HUGE LOSSES in its latest full year financial report. But the share price did not even move decrease. Another similar example was Yongnam Holdings Ltd.

As I always say, "Expect the Unexpected".

Nevertheless, I re-reviewed all the counters on SGX again and I came up with some counters that I intend to purchase. From my lists, these are the more certain targets.

1. Yongnam Holdings Ltd

Prior to its recent profit guidance announcement, I actually bought some of this counter. However, on that day of the profit guidance announcement, I managed to sell all of it for 10% profit due to the short sudden rise.

So now why am I looking at this counter again? The reasons are as follows:

- The share price did not fall drastically after the announcement of the full year results. If you look at the top 20 shareholders as per the annual report 2015, many of the shareholders do not have significant holdings. Thus, this may mean that many of the shareholders are retail investors at a much earlier stage of the company's listing. If they do not sell after so many years, I doubt they will be selling now.

- As per presentation provided by Yongnam, there are quite a few of its projects that will be completed within 2017. These should boosted the revenue for the quarterly reporting for the financial year 2017.

- As per the full year financials of 2016, the company is making gross losses. This meant that cost of goods sold is more than revenue. Since this has happened, it may occur to me that Yongnam already included all the overrun costs in the financial year 2016 and for financial year 2017, we maybe looking at a turnaround.

Decision: At the point of writing, I managed to grab a very small amount of Yongnam. Thus, I will add on more as if the price drops more significantly.

2. Singhaiyi Group Ltd

I have actually made significant gains on this counter at the start of the year. I bought this counter at 97 cents, and sold half at 118 cents and the other half at 135 cents.

However, if you happen to read about my posts on this counter, there are a few significant events that has yet to happen:

- Sold off TripleOne Sommerset Property and will have made significant gain. But this is not yet reported in the financials.

- The first right of refusal for the purchase of OKH Global Ltd will expire on 5th April 2017.

- Full year financials ending March 2017 will be reported in May 2017.

My view is that prior to April 2017, the company will announcement that they will have transfer the rights of OKH Global Ltd to Singhaiyi. The price of Singhaiyi is expected to fall due to this event being viewed as negative. However, price should rise again prior to or after the announcement of the full year financials due to the huge increase in net profit.

Decision: In view of the above, I will watch and see how the whole event unfolds. If the share price drops much more (and creates more buffer between share price and the NAV), I will enter.

3. Starhill Global REIT

Before you read this section, I must first explain that I am not a expert on REITs. But in my view, this is one of the most mis-priced REIT and it is not in the area of commercial spaces or hospitality sectors.

However, there is the pending announcement of the Fed meeting after 15 March. Thus, there is the potential risk of interest rate increment. If interest rate increases, REITs will normally drop in share price due to the debt it holds.

Decision: Will only enter after 15 March 2017 if price did not increase significantly away from 52 weeks low price.

So that is are just some of the counters in my watchlist that I am more certain about how the share price will moves in the short term. Nevertheless, I still have other counters in my watchlist (in fact, there are just too many.) that I did not stated out here as I am still quite unsure of how things may turn out.

Regardless, please do your own due diligence before you invest in any of the stated counter above. 

Do note the author is vested in Yongnam Holdings Ltd at the point of writing. 

For those interested in getting and understanding a bit more of the Super Scorecard, I will be having a short paid seminar on 25th of March. All participants of the seminar will be able to receive the Super Scorecard after that.

Oh... and do remember, please like our Facebook page (T.U.B Investing) and follow me on InvestingNote.

2 comments:

  1. Not vested in Starhill Global but REITs in general are getting a beating due to the incoming rate hikes. Though they would still be churning out good div yield, I would say wait till the dust has settled before entering. Then the new stabled pricing will be the new dividend yield after taking into account of the rate hikes.

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    1. Hi Scopion,

      Thanks for commenting and stopping by.

      I will rather say, after watching Starhill REIT for many years, its price has range 0.650 to 0.900. So I guess it is good to enter little by little.

      But that is just my view.

      Regards,
      TUB

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