Shares that I have bought since 2011

Was just doing a count of the counters that I bought over the last 2+ years, and came out with this long list of 47 counters. Some good some bad. More importantly, with each counter I buy, I come away with a lesson learnt.

Currently I have 10, which I think is a manageable number.

1. F & N

2. M1

3. Sp Land

4. GLOBAL LOGISTIC P

5. MAPLETREE COMMERC

6. ManOri US$

7. UOB-KayH

8. Cerebos Pacific

9. NOL

10. Keppel Land

11. Sri Trang

12. 2ndChance

13. Boustead Sp

14. First REIT

15. SGX

16. ECS

17. Ezra

18. SP Corp

19. IndoAgri

20. SunVic

21. Sakari

22. CDL HTrust

23. SembMar

24. Cambridge

25. Frasers Comm

26. SinoGrandnes

27. AusGroup

28. Noble Grp

29. MEWAH

30. StarHub

31. Biosensors

32. CHINA MINZHONG FOOD

33. STX OSV HLDGS LTD

34. Sabana REIT

35. LippoMalls

36. GP HOTELS

37. SingTel

38. Swiber

39. FoodEmpire

40. Marco Polo

41. KSH Hldg

42. VizBranz

43. SaizenREIT

44. Lum Chang

45. Tat Hong
46. SPH Reit
47. MGCCT

Disclaimer: The ideas expressed in this blog should not be construed as an enticement to buy or sell the securities, commodities or assets mentioned. The accuracy or completeness of the information provided cannot be guaranteed. Readers should carry out independent verification of information provided. No warranty whatsoever is given and no liability whatsoever is accepted for any loss howsoever arising whether directly or indirectly as a result of actions taken based on ideas and information found in this blog.

Tat Hong Holdings

Established History
Tat Hong has history from the 70s, set up in Singapore as a supplier of cranes and heavy equipment.

Market Dominance
Today, it has become the largest crawler crane company in the world, with operations in Malaysia, Thailand, Indonesia, Hong Kong, China, Vietnam, Dubai and Australia.

Growth and Future Plans
Recently, it has set up two Joint Venture companies:

1. Tat Hong has on 28 August 2013 entered into a joint venture agreement with Intraco and Mr Aung Moe Kyaw, and that the parties have incorporated a joint venture company, Tat Hong Intraco Pte Ltd, in Singapore. The company will carry out the business of distribution of cranes and excavators in Myanmar.

2. Announced on 26 October 2013, Tat Hong Holdings, Boustead Singapore and CSC Holdings (three local firms) have set up a joint venture with AME Group (Johor based) to develop land in Iskandar Malaysia. The joint venture will jointly undertake mixed property development in Iskandar Malaysia.

Financial Ratios

Some financial ratios:

P/E ratio: 8.5

P/B ratio: 0.9

Dividend payout since 2006. Past year yield: 4.2%

Valuations seem reasonable now since price drop from 1Q performance disappointment. Factoring in potential growth from Myanmar and Iskandar, I have taken up a position with this company.

Disclaimer: The ideas expressed in this blog should not be construed as an enticement to buy or sell the securities, commodities or assets mentioned. The accuracy or completeness of the information provided cannot be guaranteed. Readers should carry out independent verification of information provided. No warranty whatsoever is given and no liability whatsoever is accepted for any loss howsoever arising whether directly or indirectly as a result of actions taken based on ideas and information found in this blog.

SPH Reit IPO - successful!

I tried for SPH Reit IPO lots and got some successfully :) Should be holding it long term for dividend, like the rest of my REITs :)

List of my REITS:
1. Mapletree Commercial Trust (IPO + open market)
2. Sabana (open market)
3. Saizen (open market)
4. MGCCT (IPO)
5. SPH Reit (IPO)


Disclaimer: The ideas expressed in this blog should not be construed as an enticement to buy or sell the securities, commodities or assets mentioned. The accuracy or completeness of the information provided cannot be guaranteed. Readers should carry out independent verification of information provided. No warranty whatsoever is given and no liability whatsoever is accepted for any loss howsoever arising whether directly or indirectly as a result of actions taken based on ideas and information found in this blog.

Picked up some Sabana REIT today in the sea of red

The eve before Vesak Day was not peaceful at all. Well, I was expecting some kind of flat or slight negative market as it so often happens before a long weekend. However, today was kind of "bloody" in the sense that there was a sea of red in the stock market...

I was mindful of a possible correction due to the "up up and away" stock market the past few weeks. Therefore, I had taken profit on a few occasions, like selling off my Global Premium Hotel and Marco Polo after their results release recently. Therefore, I had a small war chest ready for deployment when needed.

I bought some lots of Sabana REIT today when it dipped >5% from yesterday's closing price. The price was hovering at about 1.25 - 1.285. Yield at this price range was > 7%, which still rank one of the highest amongst the REITS and a decent number at that.

I feel that Sabana's performance has been good the past few quarters. Even though there is an overhanging cloud regarding some of the master leases expiring this year, talks are underway to renew these leases. Should that happen, the stock price is very likely to increase further from the 20+ % it has increased the past year.

With this potential upside, the above yield % and REITs being a defensive stock in mind, I took the chance to get a few more lots today. I also took profit on Lum Chang, thereby filling up my war chest again ready for another deployment if so required.

Disclaimer: The ideas expressed in this blog should not be construed as an enticement to buy or sell the securities, commodities or assets mentioned. The accuracy or completeness of the information provided cannot be guaranteed. Readers should carry out independent verification of information provided. No warranty whatsoever is given and no liability whatsoever is accepted for any loss howsoever arising whether directly or indirectly as a result of actions taken based on ideas and information found in this blog.

Analyst Report on Food Empire - 21 May 2013

Share price of Food Empire increased from S$0.685 to S$0.725 today, a rise of almost 6 % in a day. Volume is high too, at about 10 x higher volume than average. Naturally, I was happy since I feel that the stock has good prospects and I am vested.

I tried to search online to see if there are any news, and came across an analyst coverage in the NextInsight that came out today. Coincidentally, I wrote about Food Empire a few days ago.

Link here: The NextInsight

Excerpt of the report below:

OSK-DMG maintains 'BUY" with 84 cents target for Food Empire.

Food Empire reported an 11% growth in 1Q13 earnings of USD5.6m. Results are in-line with expectations, accounting for 25% of our full year estimates. 

Sales in Russia grew at a stronger pace of 18% y-o-y vs our forecast of 15% due to a change in business model.

...

Sales for the quarter were also boosted by a raising of average selling prices (ASPs) for products last year. We also note an expansion in gross margins by 5ppt for the quarter. 

We maintain our estimates and BUY call with TP of SGD0.84, pegged to 16x FY13F P/E. 

Food Empire trades at a sharply lower valuation than Super Group (PE ratio of 13.9 for Food Empire vs 32 for Super Group).


If you are reading this, you may also be interested in this:-

• Food Empire posts 11.3% rise in net profit to $7mil in Q1-FY2013

Disclaimer: The ideas expressed in this blog should not be construed as an enticement to buy or sell the securities, commodities or assets mentioned. The accuracy or completeness of the information provided cannot be guaranteed. Readers should carry out independent verification of information provided. No warranty whatsoever is given and no liability whatsoever is accepted for any loss howsoever arising whether directly or indirectly as a result of actions taken based on ideas and information found in this blog.

Food Empire Holdings - 11.3% rise in net profit to $7mil in Q1-FY2013

Having bought and sold Food Empire a few times since October 2012 when it was still S$0.45, to take profit (amidst uncertainty in the global economy), I have again taken a position on Food Empire in April this year. After its XD date, it was trading at about 0.655-0.67 range. As of last Friday 17 May 2013, it was trading at S$0.685.

Since my last post in January 2013, prices of commodities such as sugar, crude palm oil (where it is used to make non-dairy creamer of 3-in-1 beverages) and coffee, are in a downward trend or are depressed. Being a direct user of these commodities to make the 3-in-1 beverages, this surely means good news for Food Empire since raw material costs are lower.

Sugar Prices (source: http://www.indexmundi.com/)

Crude palm oil prices (Source: palmoilhq.com)

Coffee prices (source: nasdaq.com)

Furthermore, group revenue grew by 13.5% from last year due to strong revenue growth in Russia, Eastern Europe and Central Asia (Russia and Eastern Europe being their largest market).

This is definitely one stock that I will continue to keep in my portfolio.

If you are reading this, you may be interested in:-

• Food Empire Holdings Ltd
• Analyst report on Food Empire on 21 May 2013

Disclaimer: The ideas expressed in this blog should not be construed as an enticement to buy or sell the securities, commodities or assets mentioned. The accuracy or completeness of the information provided cannot be guaranteed. Readers should carry out independent verification of information provided. No warranty whatsoever is given and no liability whatsoever is accepted for any loss howsoever arising whether directly or indirectly as a result of actions taken based on ideas and information found in this blog.

My holdings - as of 19 May 2013

Here's a snap shot of my current portfolio. My portfolio is rather REIT heavy, with almost 50% of my holdings in REITs.

No.	Name	Purchase Date	Purchase Px	Current Px	Gain/Loss
1	MCT	Apr 27, 2011	0.890	1.465	64.61%
2	Biosensors	Mar 16, 2012	1.450	1.215	-16.21%
3	Sabana REIT	Jul 26, 2012	1.000	1.355	35.50%
4	2nd Chance	Nov 22, 2012	0.417	0.435	4.27%
5	MGCCT	Mar 7, 2013	0.93	1.13	21.51%
6	Lum Chang	Tue, Mar 26, 13	0.34	0.350	2.94%
7	Food Empire	Tue, Apr 9, 13	0.68	0.685	0.74%
8	Saizen	Tue, Apr 23, 13	0.198	0.190	-4.15%

Disclaimer: The ideas expressed in this blog should not be construed as an enticement to buy or sell the securities, commodities or assets mentioned. The accuracy or completeness of the information provided cannot be guaranteed. Readers should carry out independent verification of information provided. No warranty whatsoever is given and no liability whatsoever is accepted for any loss howsoever arising whether directly or indirectly as a result of actions taken based on ideas and information found in this blog.

Bought more Saizen REIT today after its 3Q2013 results release

Saizen REIT must be the one of the least favored REITS listed on SGX. And it is hard to blame anyone for not favoring this REIT, given its rather turbulent history:-

• Listed in Nov 2007 @ IPO price of $1 (discount to its NAV of $1.05)
• Seems like the REIT has trouble servicing its loans (which are all commercial mortgage backed securities (CMBS) loans (read What is a CMBS loan and More on CMBS financing), and the market for such loans have more or less died during financial crisis in 2008) + Japan recession = no income distribution to unit holders in 2009-2010. And Saizen is allowed to do that, reason being it is not mandated by Singapore law to pay out dividends as all of its properties are in Japan.
• To add salt to this, there was the March 2011 massive earthquake. It has 22 of its 146 properties in Sendai, the hardest hit area.
• Things for this REIT started to take a turn in end 2012, after it made a series of attempts to repay its loan and made some good property buys.
• Current price is at $0.20 vs its NAV of $0.2716. 
• Yield is about 5.1 % based on current price. Income distribution for this REIT resumed in 2H2010. It has been in an increasing trend since, as shown below:-

There were some sell down activities these few days following its 3Q2013 results. Seems like there was a 70.5% decline in quarterly net income from operations - which was largely due to one off expenses as a result of early termination of loans and refinancing activities. Furthermore, due to recent depreciation in yen, there is worry that DPU will be affected.

Well, for me, I think that based on past performance, Saizen has taken positive steps to get itself out of the woods. And this shows a lot for the tenacity of the management. The fact that income distribution has resumed in 2010 and shows an increasing trend over the years gives me confidence that the REIT is in good hands.

Even though there was a decline in quarterly income for 3Q2013, this is due to a one off payment for refinancing of loans. The more favorable refinanced loan terms at lower interests means that benefits will be felt in later quarters. Furthermore, the REIT is now given more time to repay its loan, and in the meantime, is able to secure more loans to fund its future acquisitions.

As for the depreciation in yen affecting DPU, this is something that probably comes off as a tradeoff to  reviving the Japanese economy. From my impressions, the current Japan PM and his cabinet are taking big steps to shake Japan out of its decades of recession slumber. With a better economy comes a more vibrant real estate market in Japan, as more people work or invest in Japan, resulting in increase in demand for houses, and hopefully that means prices of Saizen assets appreciate in time. I'm sure this formed some of the considerations by investors when they participated in the recent Croesus Retail IPO.

Therefore, it was based on the above analysis that, instead of selling off my Saizen REIT when prices went down to S$0.189 on bad news, I loaded more on Saizen REIT today.

If you are reading this, you may also be interested in:-

• Analyst report on Saizen REIT

Disclaimer: The ideas expressed in this blog should not be construed as an enticement to buy or sell the securities, commodities or assets mentioned. The accuracy or completeness of the information provided cannot be guaranteed. Readers should carry out independent verification of information provided. No warranty whatsoever is given and no liability whatsoever is accepted for any loss howsoever arising whether directly or indirectly as a result of actions taken based on ideas and information found in this blog.

Lum Chang - Analyst Coverage

After I blogged about Lum Chang a few days ago, there is analyst coverage of the same by UOB KH. Great minds think alike??

Here is an excerpt from their analyst report:-

Lum Chang Holdings (LCH) is trading at 4.9x FY12 PE and 0.8x P/B.

Potential share price catalysts include new contract wins and an attractive forecast dividend yield of 6% in FY13. 

Investment Highlights
Good track record.  
As a  BCA grade ranked A1 contractor,  Lum Chang Holdings has an impressive portfolio of past projects, which included Changi Water Reclamation Plant, UOB Plaza I and National University of Singapore. LCH’s established record in civil engineering projects is also evident, being the only local contractor to clinch a MRT Downtown Line project (contract 912 worth over S$450m) on its own. LCH’s recognised construction quality and established track record make it a serious contender for upcoming public construction projects, such as the MRT Thomson Line.

Consistently attractive dividend yield.  
LCH has been paying a consistent dividend of 2 cents for the past three years, which translates to an attractive dividend yield of 6.0%. The dividend of 2 cents equates to a payout of 35.6% in FY12. In FY12, LCH generated a free cash flow (FCF)/share of 2.4 cents and a FCF yield of 7.3%.

Steady rental income.
LCH’s recent acquisition of a  freehold mixed-use property at 42-60 Kensington High Street in London  provides a steady recurring income for the group. Kensington High Street is identified in the London Plan as one of the 35 major centres in London. The prime location of the property allows it to enjoy a 100% occupancy rate and an annual rental income of £1.8m (S$3.4m), that translates to a rental yield of 4.5%. The S$3.4m rental income is about 15% of its FY12 net profit.

Strong balance sheet.
Trading at  0.8x P/B, valuation looks reasonable when compared with peers’ average of 1x P/B. Since FY10, LCH has maintained a net cash position. Its stock price is underpinned by cash reserves of S$77m (as at 31 Dec 12) that represents 62% of its market cap.

Future plans.  
With a  strong construction orderbook of S$600m  and its new executive condominium project at Woodlands (a JV with Fraser Centrepoint) to be launched in Apr 13, LCH’s construction arm is likely to be kept busy till 2016. For its property development business, LCH is looking forward to continue developing its two residential projects in Malaysia where only 50% has been launched todate. LCH is also on the lookout for promising property investment in Asia and London to create additional steady recurring income. Associate LC Development’s hotel operation in London is likely to help LCH in optimising its selection of property investment in the London market.


If you are reading this, you may also be interested in:-

• Lum Chang coverage in The Edge Singapore on 29 April 2013
• Lum Chang - A Hidden Gem?

Disclaimer: The ideas expressed in this blog should not be construed as an enticement to buy or sell the securities, commodities or assets mentioned. The accuracy or completeness of the information provided cannot be guaranteed. Readers should carry out independent verification of information provided. No warranty whatsoever is given and no liability whatsoever is accepted for any loss howsoever arising whether directly or indirectly as a result of actions taken based on ideas and information found in this blog.

Lum Chang - a hidden gem?

Vested with a few lots of Lum Chang today.... after discovering it yesterday night.

Lum Chang's construction portfolio dates back to the 70s, and include buildings like National Library, Circle Line Stage 1, AMK Hub, Causeway Point, Paragon, Audi Terminal etc etc. It has branched into property development and investment, and holds buildings in Singapore and Malaysia for rents.

Tried to do some research on the stock, but apparently it is like a submarine stock.. hardly any news may be found for it. Which is a good thing for me, cos this means that I get to buy it at a good price without all the hype!

Here are the things I found...

1. At its last closing price of $0.34, it is trading at about 22% discount to its NAV of $0.4368.

2. It has been consistently giving dividends for the past years (my records date back to 2006).

3. Yield for last 3 years about 6% (based on $0.34).

4. Compared to its peers, Swee Hong (PB ratio 1.87 and PE ratio 18.7) and Yongnam (PB ratio 1.15 and PE ratio 8.7), its ratios of PB ratio 0.78 and PE ratio 6.0 seem much more attractive.

Hence the reason I bought today.


If you are reading this, you may also be interested in:-

• Lum Chang - Analyst coverage April 2013
• Lum Chang coverage in The Edge Singapore on 29 April 2013

Disclaimer: The ideas expressed in this blog should not be construed as an enticement to buy or sell the securities, commodities or assets mentioned. The accuracy or completeness of the information provided cannot be guaranteed. Readers should carry out independent verification of information provided. No warranty whatsoever is given and no liability whatsoever is accepted for any loss howsoever arising whether directly or indirectly as a result of actions taken based on ideas and information found in this blog.

My latest portfolio (as of 12 February 2013)

I started trading on Mar 27, 2011. The first stock I bought was F&N, and sold it for a 6.4% gain after 3 days :). Since then, I have made a number of purchases.. some good and some not so good. All in all, it has been a good learning experience.

This is latest snapshot of my portfolio.

No.	Name	Purchase Date	Purchase Px	Current Px	Gain/Loss
1	MCT	Apr 27, 2011	0.890	1.355	52.25%
2	Biosensors	Mar 16, 2012	1.450	1.330	-8.28%
3	Sabana REIT	Jul 26, 2012	1.000	1.225	22.50%
4	GP Hotels	Sep 3, 2012	0.242	0.275	13.67%
5	2nd Chance	Nov 22, 2012	0.417	0.410	-1.72%
6	Food Empire	Jan 2, 2013	0.580	0.685	18.10%
7	KSH Holdings	Jan 25, 2013	0.380	0.440	15.79%
8	Vizbranz	Jan 29, 2013	0.703	0.690	-1.85%
9	Saizen REIT	Feb 5, 2013	0.188	0.190	1.06%

Disclaimer: The ideas expressed in this blog should not be construed as an enticement to buy or sell the securities, commodities or assets mentioned. The accuracy or completeness of the information provided cannot be guaranteed. Readers should carry out independent verification of information provided. No warranty whatsoever is given and no liability whatsoever is accepted for any loss howsoever arising whether directly or indirectly as a result of actions taken based on ideas and information found in this blog.

KSH Holdings - my reasons for buying this stock

KSH Holdings first caught my attention after I read that it had obtained a Letter of Acceptance (LOA) for Qbay. Its order book now stands at more than $460 million, so there is visibility on its performance for the next 1-2 years. It has also been constantly paying dividends over the years to shareholders, with yield of 3.4% at closing price of S$0.44. PE ratio is relatively low at 8.5, which means that the stock is not overpriced. I also noted that its earnings over the years have been pretty consistent.

Initially, I was a little skeptical of construction stocks, as I feared that construction activities in Singapore is getting rather saturated due to boom in construction activities in recent years, and I had the impression that population growth in Singapore was going to be carefully controlled/curbed due to public sentiments post-General Elections. However, that changed after the White Paper came out, which projected that Singapore would have a population of 6.9 million in 2030. My feelings on this aside, I saw this information as an indicator that construction in Singapore is going to flourish for some years.

My entry price was S$0.38, which was still below its NAV of S$0.39. It's last closing price is S$0.44, which means a gain of 15% in less than a month.

There's a buy call from OCBC, revising its TP from S$0.50 to S$0.62.

Excerpt here (from http://sgx.i3investor.com/servlets/ptres/3848.jsp):

KSH Holdings: Another quarter of strong growth

KSH reported 3Q FY13 PATMI of S$8.1m, which surged 179% YoY mostly due to contributions from its property development segment as the group recognized earnings from The Boutiq, Cityscape@Farrer Park and Rezi 26. 9M FY13 earnings now cumulate to S$22.3m, up 108.3% YoY and forming 73% of our FY13 forecast. The group has sold a significant portion of launched projects, and we expect progress billings from already sold projects to underpin earnings growth ahead. Maintain BUYwith an increased fair value estimate of S$0.62, versus S$0.50 previously, as we lower the RNAV discount for its property segment from 50% to 40% to reflect a lower risk profile given a larger percentage of projects sold, and raise our PE multiple for its construction segment from 3.0x to 4.0x - a level closer in line with that of its peers. (Eli Lee)

The full report can be obtained from here: http://kshholdings.listedcompany.com/misc/KSH-130208-OIR.pdf

Disclaimer: The ideas expressed in this blog should not be construed as an enticement to buy or sell the securities, commodities or assets mentioned. The accuracy or completeness of the information provided cannot be guaranteed. Readers should carry out independent verification of information provided. No warranty whatsoever is given and no liability whatsoever is accepted for any loss howsoever arising whether directly or indirectly as a result of actions taken based on ideas and information found in this blog.

KSH Holdings - EARNINGS SURGE OVER 179.0%

KSH HOLDINGS’ EARNINGS SURGE OVER 179.0% TO HIT S$8.1 MILLION IN 3QFY2013 AND 108.3% TO HIT S$22.3 MILLION IN 9MFY2013

- Property Development division continues to achieve third consecutive quarter of strong growth, boosting bottomline 

- Strong construction order book of approximately S$461.0 million as at January 31, 2013

- Low gearing of 0.23x and healthy fixed deposits, cash and cash equivalents of S$66.7 million

Good set of results. Stocks may fly off the shelf tomorrow :) 

Disclaimer: The ideas expressed in this blog should not be construed as an enticement to buy or sell the securities, commodities or assets mentioned. The accuracy or completeness of the information provided cannot be guaranteed. Readers should carry out independent verification of information provided. No warranty whatsoever is given and no liability whatsoever is accepted for any loss howsoever arising whether directly or indirectly as a result of actions taken based on ideas and information found in this blog.

Global Premium Hotels - 2012 DPU S$0.0141

Since my last post on Global Premium Hotels, it has announced its third dividend payout of S$0.0101. Coupled with the $0.002 cents for the last two payouts, total payout for FY2012 is S$0.0141. This translates into a dividend yield of 5.2 % (80% payout ratio of net profit after tax).

With my 52,000 shares, the DPU of S$0.0101 amounts to a nice final payout of S$525.20. XD on 17 April 2013.

Given the low price at which I bought the shares, there is greater potential for the shares to go upside than down, further in view that the share is still trading at a discount to its NAV of S$0.31. I will be holding on to the shares for a long while :)

Disclaimer: The ideas expressed in this blog should not be construed as an enticement to buy or sell the securities, commodities or assets mentioned. The accuracy or completeness of the information provided cannot be guaranteed. Readers should carry out independent verification of information provided. No warranty whatsoever is given and no liability whatsoever is accepted for any loss howsoever arising whether directly or indirectly as a result of actions taken based on ideas and information found in this blog.

China Minzhong - Finally rid of it

Finally sold my China Minzhong today, after holding on to it for almost 8 months.

Yes, I am one of the unlucky few who bought the shares before the big fall in May 2011. And yes, I was (maybe) one of the few who held onto the shares and not cut loss when I should have. Well, that was because I was overseas during that period of time. I only remembered checking it one day (after a couple of days not being able to login), and saw that it had plummeted to a penny stock (about $0.60) from its normal price of S$1+. Right now, I am still not sure what had happened.

The stock had rallied the past few weeks, and I was hoping that it will go back to about $1. However, given the red signals of the market this week, I decided to get rid of this stock once and for all. On hindsight, I should have averaged down when the stock was $0.60. However, according to the books I have read, this is a big no-no. Who knows if the price will keep getting lower and lower... like Cosco?

On paper, the stock looks great... the company is profitable, low PE and PB ratio, reports saying that there is worldwide food shortage, Temasek backed...it looked like a safe buy for me. Unfortunately, that was not the case. I have since vowed not to buy any more S-chips. Too risky!


Disclaimer: The ideas expressed in this blog should not be construed as an enticement to buy or sell the securities, commodities or assets mentioned. The accuracy or completeness of the information provided cannot be guaranteed. Readers should carry out independent verification of information provided. No warranty whatsoever is given and no liability whatsoever is accepted for any loss howsoever arising whether directly or indirectly as a result of actions taken based on ideas and information found in this blog.

Food Empire Holdings Limited

Food related stock counters have been the new darlings of the Singapore Stock Exchange due to the F&N saga. Food Empire is one of the food related stock counters that have been in the news limelight in recent months.

It is currently trading at S$0.60, with PE ratio at 17.5 and NAV of S$0.364.

The reasons I find this counter attractive is different from those of Global Premium Hotels, which I believe is trading at an attractive price and a substantial discount to its NAV.

Food Empire is a food and beverage company, which manufactures and sells instant beverage products (e.g. instant coffee beverages), frozen convenience food (e.g. tail-on shrimp dumplings, butterfly seafood wantons), and snack food (e.g. potato crisps). Its main markets are in Russia, followed by Eastern Europe and Central Asia. 

12 December 2012: OSK-DMG says Food Empire is the cheapest Singapore-listed 3-in-1 beverage player at 14X P/E vs Super (S10.SG) at 21X and Viz Branz (L5J.SG) at 15X. 

More importantly, Food Empire is setting its eyes on the Chinese and India market which, historically, have always been tea drinkers. However, in recent years, there has been an increase in coffee drinkers in these big markets. So much so that Starbucks has also jumped on the bandwagon and set up operations in these countries.   

Starbucks established cafes in the region have maintained double-digit sales growth over the past couple of months (report in Wall Street Journal on 6 December 2012)

Starbucks opened its first cafe in India in October 2012 (report in Wall Street Journal in October 2012)

Food Empire has incorporated subsidiaries in China and India to bring its products into China and to manufacture instant coffee in India.

I am really excited by these news, and believe that there is tremendous growth opportunities for this company. And, of course I am vested :)

If you are reading this, you may be interested in:-

• Food Empire Holdings post 11.3% rise in net profit in Q1 FY 2013

Disclaimer: The ideas expressed in this blog should not be construed as an enticement to buy or sell the securities, commodities or assets mentioned. The accuracy or completeness of the information provided cannot be guaranteed. Readers should carry out independent verification of information provided. No warranty whatsoever is given and no liability whatsoever is accepted for any loss howsoever arising whether directly or indirectly as a result of actions taken based on ideas and information found in this blog.

Global Premium Hotels

Global Premium Hotels IPOed on 26th April 2012, which is a "spin-off" by its parent the Fragrance Group.

I am vested in this counter having bought some at its low point of 0.24. I hold a long term positive outlook on the shares.

Some of the reasons which I deem it an attractive buy:-
1. Current price at S$0.26 (which is also its IPO price) trading at about 20% discount to its NAV of S$0.3112.
2. Price-Earning ratio is low at 11.3.
3. Distribution of at least 80 % of net profit after tax for FY2012, estimated to be about 6% yield.

Furthermore, it has received good reviews and buy calls from various brokerages and media.

2 July 2012: 
Koh brothers increase stakes in Aspial Corp, Global Premium Hotels http://www.theedgesingapore.com/component/content/38325.html?task=view

5 December 2012: 
This is where Global Premium Hotels juices its lucky charm 
http://sbr.com.sg/hotels-tourism/more-news/where-global-premium-hotels-juices-its-lucky-charm

Buy call by OCBC
http://www.remisiers.org/cms_images/research/Dec03-Dec07_2012/GPH-121205-OIR.pdf

14 December 2012: 
http://www.theedgemalaysia.com/property/226653-global-premium-hotels-upgrades-hotels-and-opens-new-ones-away-from-geylang.html

20 December 2012:
Non-Executive Chairman Koh Wee Meng is once again accumulating Global Premium Hotels shares.
http://www.nextinsight.net/index.php/story-archive-mainmenu-60/916-2012/6236-armarda-global-premium-hotels-ezion-latest-happenings




Disclaimer: The ideas expressed in this blog should not be construed as an enticement to buy or sell the securities, commodities or assets mentioned. The accuracy or completeness of the information provided cannot be guaranteed. Readers should carry out independent verification of information provided. No warranty whatsoever is given and no liability whatsoever is accepted for any loss howsoever arising whether directly or indirectly as a result of actions taken based on ideas and information found in this blog.

My holdings - December 2012

I hold a few REITs such as Mapletree Commercial Trust (MCT) (IPO lots) and Sabana, both of which are bought (luckily) before the awareness for REITs set in a few months ago. I feel that the prices are rather on the high side at the moment, especially for MCT, therefore, even though they have been providing me with good dividends every quarter, I am hesitant to add on to my position at this moment in time.

Recently, I acquired a few lots of Singtel when Temasek went on a selling frenzy. I thought myself lucky at that time as I had queued to buy at $3.19, and got them for $3.16. Haven't quite figured out how that came about. Anyhow, prices were hovering about $3.19 - $3.23, and dropped to $3.12 at one point since I bought them. A couple of days ago, it suddenly went up and is now at $3.31. I intend to hold on to the stocks, in view of the dividend payout end of December at 6.8 cents and Singtel being a blue-chip company.

I also hold a few small and mid-cap companies, reason being they are relatively low priced thus allowing me to buy more lots with my limited resources, and have greater potential to scale greater heights. I bought some Second Chance recently, in view of the attractive dividend payout of 3.8 cents, making it a dividend yield of 8.9% at its last done price of $0.425. In fact, I had sold the stock for a small profit after the results were released recently, when prices reached $0.45 at one point. I was looking for an opportunity to pick up the shares again, and was happy to do so when prices went down to pre-result release levels.

Another stock that I am holding is Global Premium Hotels, the hotel/hospitality arm of Fragrance, although that stock is not doing as well as I had expected and hoped. It is currently hovering around $0.235-0.245, which is lower than its IPO price of $0.26. A few reasons why I bought the stock:

a) it is selling at a premium compared to its IPO price. In fact, it is (I read somewhere) selling at a premium compared to the price at which Fragrance acquired it for $0.25.
b) Tourism in Singapore is (and still is) booming. Although there are uncertainties going on in the global financial markets, demand for economy hotels should still be there.
c) The management explained the decrease in profits during the previous quarters due to one time fees incurred as a result of IPO listing. Hence, it is reasonable to expect that profits should improve in the subsequent quarter(s).
d) Maintaining dividend payouts for 2012. So far, it has been $0.002 per quarter. That works out to 1.7% yield for half a year or 3.4% annual yield based on its last done price of $0.235.

I will watch and see if their results improve in the next quarter before deciding whether or not to divest in this stock.



Disclaimer: The ideas expressed in this blog should not be construed as an enticement to buy or sell the securities, commodities or assets mentioned. The accuracy or completeness of the information provided cannot be guaranteed. Readers should carry out independent verification of information provided. No warranty whatsoever is given and no liability whatsoever is accepted for any loss howsoever arising whether directly or indirectly as a result of actions taken based on ideas and information found in this blog.