Showing posts with label Keppel. Show all posts
Showing posts with label Keppel. Show all posts

Sunday, May 12, 2013

SG Stocks Investing Strategy: UOB Kay Hian

This post is on SG stocks investing strategy recommended by UOB Kay Hian which might provide some investment ideas for those of you reading the post


For 2013's remainder, UOB KayHian tips being selective on blue-chips and seeking alpha in undervalued mid-caps. With the top-15 STI stocks at an only 3.3% average discount to long-term P/B means, stocks with capitalisations below $1.5 billion may offer deeper value, it says, with its top-five segment picks Silverlake (5CP.SG), Kreuz(5RK.SG), Triyards (RC5.SG), Ying Li (5DM.SG) and Sino Grandness (JS5.SG).
Its large-cap buy list includes DBS (D05.SG), M1 (B2F.SG), Keppel (BN4.SG), OUE(LJ3.SG) and SIA Engineering (S59.SG). Singapore's overall market valuation is inexpensive at 15.1x 2013 P/E, a 7.5% discount to long-term means, it says; "The next one to two quarters could see a mixed performance given uninspiring macro data points such as a weak 1Q13 GDP and uncertainties in the eurozone. Nevertheless, we see the recovery picking up momentum in 2H13 and for the market to head towards our 3500 year-end (STI) target."
 It tips several potential themes for outperformance, including rotation within S-REITs to office and hospitality segments, strong cash generators such as SIA Engineering,Super Group (S10.SG) and Silverlake, deep-value stocks with potential catalysts, such as Ying Li and Guocoleisure (B16.SG), and mid-cap consumer and oil-services companies.

Tuesday, April 23, 2013

Invest like Benjamin Graham in Singapore stocks

Benjamin Graham is the father of  investing and his way of value investing was to search for net-net stocks where he will construct a basket of stocks as his portfolio. His method of value investing is still being widely practiced by value investors such as Seth Klarman, Third Avenue Management etc. In this blog post, I would like to refer to an article by CLSA to explore the idea of investing in Graham-like stocks in the Singapore stock market.

This is a reprint of an article from brokerage research house, CLSA. In this article, they construct a stock screen that incorporates the attributes that Ben Graham looks for in a undervalued stock and run the stock screen through all the SGX stocks to find stocks that fulfill it. The end result of this stock screen is the Ben Graham Number.

What is the Ben Graham Number?
Graham Number is a concept based on Ben Graham's conservative valuation of companies. Graham Number is calculated as follows:

Graham Number = SquareRoot of (22.5 * Tangible Book Value per Share * Earnings per Share)
= SquareRoot of (22.5 * Net Income * Total Equity) / Total Shares Outstanding

Which Singapore stocks passes the Ben Graham Screener?
The following list of stocks passes:
F&N
City Dev
Keppel Land
Ezion
Parkinson Retail Asia
Keppel
Genting
Capitaland
Singapore Airlines
ST Eng
Semb Marine
Golden Agri
YangZiJiang
SATS
Singapore Post

CLSA article below:



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