In June 2018, we featured Cityneon Holdings (Cityneon) for its attractive valuations as its shares were changing hands at just below a dollar. Four months later, West Knighton, a special purpose vehicle indirectly owned by Cityneon’s chief executive officer Ron Tan and Hong Kong entrepreneur and investor Johnson Ko, launched a privatisation offer for Cityneon at $1.30 per share.
It is estimated that there were less than one billion humans living on Earth two centuries ago. Today, the world population is estimated to be around 7.6 billion, mainly boosted by rising standards of living which had led to an increasing growth rate. However, the period of strong growth is over as growth rate has declined to around 1.2 percent between 2010 and 2015 and is expected to decline further towards the end of the century.
Despite a showing strong performance from late-2016 to the first quarter of 2018, the Straits Times Index (STI) has recently turned south, shedding off most of the gains in just six months. This is an example of the natural fluctuations often seen in the economy, known as an economic cycle.
The outlook is turning positive for ComfortDelGro Corporation (CDG) as pressures from private-hire car services have eased significantly following the merger between Uber and Grab in March 2018. On the ground, private-hire drivers complained of lower earnings mainly as a result of reduced incentives and many, who were formerly taxi drivers, have returned to their previous trade.
PropNex is Singapore's largest listed real estate brokerage with over 7,000 sales professionals. As an integrated real estate services group, PropNex operates four main business segments – Real Estate Brokerage, Training, Property Management and Real Estate Consultancy. The group is the second real estate brokerage to make its SGX Mainboard debut on 2 July 2018 at $0.65 per share, after APAC Realty in September 2017.
n February this year, Shares Investment featured JB Foods as a strong business that would remain unfazed in the age of technological disruptions. JB Foods’ shares were then trading at around $0.53, after applying the adjustment factor for the rights issue. The group’s shares have since steadily advanced over 10 percent to $0.585 as at 17 September 2018. Shareholders that remained steadfast for the past year have more reason to celebrate as their total returns more than doubled. However, as many investors tend to be wary about stocks that have registered a significant increase in price, this is the point where the upward momentum stalls. Conversely, we believe that run is not quite over for JB Foods.
Although technological advancement has affected many businesses over the past decade leading to the rise and fall of many companies, the business of moving large amounts of goods from one location to another has remained relatively unchanged. Despite the availability of air freight, over 90 percent of world trade continues to be carried by sea due to the lower freight costs. While the shipping industry is a resilient one, it is in itself a highly competitive industry. With over 50,000 merchant ships trading internationally, shipping companies are often embroiled in price wars and they fight for a greater market share.
A one-stop specialist offering complete service in the designing, manufacturing and supplying of metal products and solutions, Nam Lee Pressed Metal Industries (Nam Lee) is one of Singapore’s leading providers of fabricated metal products and cutting-edge metal solutions. Since our previous coverage on Nam Lee in April 2016, the group’s shares have advanced around $0.10, or approximately 34 percent, to $0.375 as at 16 August 2018. During these two years, Nam Lee’s shareholders were also rewarded with a total dividend payout of $0.04. The capital gain and dividend income translates into a total gain of almost 50 percent.
In the hunt for investment worthy stocks, investors tend to make use of several common valuation indicators such as price-to-earnings (P/E) ratio, price-to-book value (P/B) ratio and dividend yield. Naturally, each of these indicators should not be used individually as a clearer picture will only be shown after delving deeper.
Real estate investment trusts (REITs) fell behind property developers in the first half of the year. However, UBS expects a reversal in this trend in the second half of the year, following the implementation of a fresh round of property cooling measures effective 6 July 2018.