4 Stock Plays for the Iran-USA conflict
- Original Post from Smallcapasia

Unless you have been hiding under a rock, you would have heard about the quick escalation of the Iran-USA conflict.


Anyway, here’s a quick summary and follow-up on what happened:


On 2 January 2020, USA launched an airstrike in Baghdad. It caused the deaths of 2 generals, 1 from Iran and 1 from Iraq. The Iran general named Qasem Soleimani was well-loved by the nation and hordes of people turned up for his funeral.


This action sparked a major uproar as Iran reacted furiously against this attack – calling the US “Terrorists” and also strike back with missiles to the US airbase in Iraq.


This tensed conflict caused crude oil prices to surge close to $3 and closed at $68.60 on 3 January after the attack. In addition, investors are also putting their money in a safe haven – gold.


Below, we will highlight 4 stock plays of which are good proxies or hedging counters to the ongoing conflict.


1. $CSE Global(544.SI)



CSE Global is a global technologies company listed on SGX. It has international presence spanning Americas, Asia Pacific, Europe, Middle East and Africa. CSE is a systems integrator, focusing on the provision and installation of a variety of control systems, turnkey telecommunications, and security solutions for the oil and gas sector.


As of the 2019 third-quarter report, revenue increased by an impressive 21.9% to $111 million. Net profit increased by 17.8% to $5.72 million. It also registered a free cash flow of $5.55 million.


With the increase in oil prices, oil and gas sector will recover and flourish much faster than expected. This will allow CSE to lock more order books, which will boost its finances.


CSE Global last closed at $0.555, which values it at a P/E of 13.88x and a dividend yield of 4.46%.


2. $Rex Intl(5WH.SI)



Rex International Holding Limitedis an oil exploration and production company listed on Singapore Exchange Securities Trading Limited’s Catalist Board. Since the Company’s listing in July 2013, the Group has achieved two offshore discoveries, one each in Oman and Norway.


As of the 2019 third-quarter report, revenue decreased by 57% to $135,000. However, a noteworthy point is that net profit increased to $25.9 million from a negative position in 2018. This was due to the sales of interest in licenses and gain in the fair value of quoted investment.


The increase in oil prices is a direct boon for Rex International as it is now proceeding to drill the Oman wells for oil. Either that or it can sell its licenses at a much higher price to lock in fat capital gains.


Rex International last closed at $0.205, which values it at a P/B ratio of 1.3x. It does not pay out any dividends.


Next up, lets zoom into 2 gold plays below…


3. $CNMC Goldmine(5TP.SI)



CNMC together with its subsidiaries are principally engaged in the business of exploration, mining of gold and the processing of mined ore into gold dores. The Group is currently focusing on the development of its flagship project – the Sokor Gold Field Project which is located in the State of Kelantan, Malaysia.


As of the 2019 third-quarter report, the company’s revenue increased by 16.9% to $31.5 million. Net profit improved by an astounding 384% to $5.2 million. The increase in net profit is due to costs staying relatively unchanged, while revenue increased greatly.


With gold prices rallying to new heights, the company can price its gold at higher prices while keeping the costs the same as mining operations stay the same. This will increase the profits further as gold prices are elevated.


CNMC Goldmine last closed at $0.2850 and is valued at P/E ratio of 21.92 with a dividend yield of 1.51%.


4. $GLD



Investors could also look into investing in SPDR Gold ETF (SGX: O87). SPDR Gold Shares offer investors an innovative, relatively cost efficient and secure way to access the gold market.


SPDR Gold Shares are intended to offer investors a means of participating in the gold bullion market without the necessity of taking physical delivery of gold, and to buy and sell that interest through the trading of a security on a regulated stock exchange


The Gold ETF has went up 24% in a year and 7.1% since the attack on 2 January. It was only listed in year 2017 and is now at its all time high.


Looking for more interesting stock ideas? Check out our Top Stocks 2020 bundle here for more explosive stock picks.

Read more
4 likes

Recommended & Related Posts

Smallcapasia started a poll
2.67 M


Discover SG & HK stock ideas from from our Stocks' Database @
http://bit.ly/InvestorsExchange


*We (@CS_Jacky and @Smallcapasia) are back (again) after a long break and going to take this slow and steady in future. We implemented the following improvements to serve you better:


  • Stock Rating based on our own opinion (on a scale of 1 to 5 stars)
  • Write-up URL Links (want to read analyst report or blogger write-ups on a particular company? Now you can!)
  • Up-and-coming Addition of HK stocks (HKEX is gunning for all the big names like Xiaomi, HaidiLao and we don't want to be left out.)


At the same time, here are the stocks (and adding):

$SingTel(Z74.SI) $Old Chang Kee(5ML.SI) $800 Super(5TG.SI) $StarHub(CC3.SI) $CapitaMall Trust(C38U.SI) $ComfortDelGro(C52.SI) $CSE Global(544.SI) $Sasseur Reit(CRPU.SI) $Tuan Sing(T24.SI) $CapitaLand(C31.SI)$Ascendas-hTrust(Q1P.SI)$VS(6963.MY)$COSMO LADY(2298.HK)$KAWAN(7216.MY)$AJI(2658.MY)$Jumbo(42R.SI)$Genting Sing(G13.SI)$MENGNIU DAIRY(2319.HK)$Sunpower(5GD.SI)$Nordic(MR7.SI)$Valuetronics(BN2.SI)$Trendlines(42T.SI)$Haw Par(H02.SI)$Jackspeed^(J17.SI)$ISDN(I07.SI)$Duty Free Intl(5SO.SI)$Far East Orchard(O10.SI)$ChinaSunsine(QES.SI)$Japfa(UD2.SI)$ST Engineering(S63.SI)$Food Empire(F03.SI)$Cityneon(5HJ.SI)$HMI(588.SI)$CHINA EDU GROUP(839.HK)$CONSUN PHARMA(1681.HK)$Chip Eng Seng(C29.SI)$Banyan Tree(B58.SI)$TUNEPRO(5230.MY)$Khong Guan Flour(K03.SI)$TGUAN(7034.MY)$YZJ Shipbldg SGD(BS6.SI)$Cosco(F83.SI) $SCIENTX(4731.MY)$PING AN(2318.HK)$BOL(BOL.BK)$Lippo Malls Tr(D5IU.SI) $UMS(558.SI) $Golden Agri-Res(E5H.SI) $Silverlake Axis(5CP.SI)$Kimly(1D0.SI)$OCBC Bank(O39.SI)$Wilmar Intl(F34.SI)$Olam Intl(O32.SI) $Fu Yu(F13.SI) $SATS(S58.SI) $Japan Foods(5OI.SI) $SingPost(S08.SI) $Shopper360(1F0.SI) $Cosco(F83.SI) $QAF(Q01.SI) $SBS Transit(S61.SI) $PENTA(7160.MY) $HEC PHARM(1558.HK) 

Read more

Hi All!

Unfortunately, due to a technical glitch, the previous stocks' database is gone.

But nevertheless, @CS_Jacky and @Smallcapasia have been working tirelessly to come up with another one. Without further ado, check it out here - http://bit.ly/InvestorsExchange

We will continue to add on each stock analysis along the way... so do let us know what you want us to cover so that we are able to prioritize your requests!

Meantime, here are some of the stocks in the database (will update shortly!):

$SingTel(Z74.SI) $Old Chang Kee(5ML.SI) $800 Super(5TG.SI) $StarHub(CC3.SI) $CapitaMall Trust(C38U.SI) $ComfortDelGro(C52.SI) $CSE Global(544.SI) $Sasseur Reit(CRPU.SI) $Tuan Sing(T24.SI)

Read more
Smallcapasia Smallcapasia 's post

Hi All!


Unfortunately, due to a technical glitch, the previous stocks' database is gone.


But nevertheless, @CS_Jacky and @Smallcapasia have been working tirelessly to come up with another one. Without further ado, check it out here - http://bit.ly/InvestorsExchange


We will continue to add on each stock analysis along the way... so do let us know what you want us to cover so that we are able to prioritize your requests!


Meantime, here are some of the stocks in the database (will update shortly!):

$SingTel(Z74.SI) $Old Chang Kee(5ML.SI) $800 Super(5TG.SI) $StarHub(CC3.SI) $CapitaMall Trust(C38U.SI) $ComfortDelGro(C52.SI) $CSE Global(544.SI) $Sasseur Reit(CRPU.SI) $Tuan Sing(T24.SI)

Read more
Attachment(s):

Hi All!


Unfortunately, due to a technical glitch, the previous stocks' database is gone.


But nevertheless, @CS_Jacky and @Smallcapasia have been working tirelessly to come up with another one. Without further ado, check it out here - http://bit.ly/InvestorsExchange


We will continue to add on each stock analysis along the way... so do let us know what you want us to cover so that we are able to prioritize your requests!


Meantime, here are some of the stocks in the database (will update shortly!):

$SingTel(Z74.SI) $Old Chang Kee(5ML.SI) $800 Super(5TG.SI) $StarHub(CC3.SI) $CapitaMall Trust(C38U.SI) $ComfortDelGro(C52.SI) $CSE Global(544.SI) $Sasseur Reit(CRPU.SI) $Tuan Sing(T24.SI)

Read more
These 3 Companies have been Buying Back Their Shares
- Original Post from Smallcapasia

Warren Buffett is a huge advocate of share buybacks as he believes that itcan often be the best use of corporate capital.


In fact, that is the main reason why Berkshire Hathaway Inc.’s share price can reach a staggering US$315,800 per share (at time of writing)!


He also thinks that share buybacks can reveal a thing or two about the management team.


A particular excerpt from Warren Buffett in this article stood out:


“Many management are just deciding they’re gonna buy X billions over X months. That’s no way to buy things. You buy when selling for less than they are worth. … It’s not a complicated equation to figure out whether it is beneficial or not to repurchase shares.”


In other words, he thinks that good management are those who embarked on a buyback spree when the companies are undervalued.


With that, let’s check out 3 companies which have repurchased their shares recently.


1.$AEM(AWX.SI)


AEM provides handling and test solutions to the most advanced manufacturers in the world namely Intel. AEM help our customers deliver many of the most successful products in the 5G economy including microprocessors, high speed communications, IOT devices, and solar cells.


The past 5 months have not been kind to AEM as its share price drops from a high of $1.94 (post-split) to around $0.64, before recovering to $0.825 at the time of writing.


The plunge in share price is probably due to the sharp U-turn from CIMB analyst report where it slashed the target price to $0.69, citing low visibility into year 2019.



A share buyback spree is initiated after the report was released on 31st July 2018. AEM has been repurchasing 100,000 to 200,000 shares steadily each time, at a price range between S$0.655 and S$0.755 a piece.


Shares of AEM holdings is going at S$0.825 now, giving a P/E ratio of 7 and a dividend yield of 3.5%.


2. $HRnetGroup(CHZ.SI) 


HRnetGroup is a Singapore-based recruitment agency and operates 2 main segments from the following brands:



  • Professional recruitment services – HRnet One, PeopleSearch, PeopleFirst and SearchAsia brands

  • Flexible staffing solutions – Recruit Express and RecruitFirst brands.


I can still remember vividly my younger days where i was working part-time under Recruit Express last time. My boss that time told me that he is paying Recruit Express $9/hr when I only got a $6/hr salary!


Imagine getting 50% of my pay just for the job referring — such fat profit margins!



Anyway, HRnetGroup is pretty confident about its own company’s prospects. Share buybacks are done with around 200,000 shares repurchased each time at a price range of S$0.85 to S$0.90.


HrnetGroup’s shares of the company are now priced at S$0.885, giving a trailing PE ratio of close to 17.1 and a dividend yield of 2.6%.


3. $CSE Global(544.SI)


CSE Global Limited (CSE) offers total integrated solutions to industries in the automation, telecommunications and O&G industries.


You can also check out more about its services here.



CSE Global has embarked on a share buyback spree after its 2Q 2018 results on 13 Aug 2018. It spent around S$1.87 million on 4.177 mil shares, averaging S$0.45 per share.


CSE Global does not have a P/E ratio as it is making losses for the past year due to the oil price slump. However, it has turned around sharply and its latest 1H FY2018 core profits surged 43.9% from the previous year.


It has also committed to total dividends of $0.0275 for FY18, giving it a 6.25% dividend yield based on its current share price of S$0.445.


CSE Global is also one of our top picks in our Valuation Momentum membership. To get a deeper analysis report on CSE global OR find out more hidden gems, feel free to check out our subscription here.




That aside, do you know that Master Investors like Warren Buffett has his own Unique Investing System which you can emulate yourself? We have distilled it into a simple 10-Step Checklist for you to decide how or when to buy/sell your stocks.


Simply click here to receive your copy today!

Read more

Update: 
Added 

- $Ascendas-hTrust(Q1P.SI) , $VS(6963.MY) , $2298
$CapitaLand(C31.SI) $Tuan Sing(T24.SI) 
$Sasseur Reit(CRPU.SI) $CSE Global(544.SI) $ComfortDelGro(C52.SI)

Completed the Pros and Cons of the above stocks in the spreadsheet: 
https://docs.google.com/spreadsheets/d/1Ql...

Let me know if you have any stocks you want me to go through in priority... Feel free to shoot any questions in the comments too!

Read more
About Contact Privacy Terms Widgets Store

There are more for you ...

View more and participate in our discussion now. It's FREE.

Creating an account means you’re okay with InvestingNote's Terms and Conditions