These 3 Companies Are Trading Close To Their 52-Week Low Prices
- Original Post from The Motley Fool Sg

As an investor, one of the methods that I use to search for investment ideas is stock screening.
One of my personal favourite screens is the 52-week low list. This screen, which is usually performed weekly, will give me a list of companies that are trading at their 12-month low.
Why do I like this screen? As a value investor, I like to search for companies that are trading at good value. The 52-week low could be a good place to start, since these companies might have been ignore by the investment community for various reasons. Some deserve to be.
Occasionally, however, the market might have been overly negative. These companies could have good long-term prospects, despite some short-term headwinds. My job, then, is to try to separate the wheat from the chaff.
So what are the companies that have shown up on this week’s list? Here are three of them:
The first on the list is Sarine Technologies Ltd (SGX: U77).
Sarine Technologies is an Israel-based company engaged in developing, manufacturing, marketing and selling precision technology products for processing of diamonds and gemstones.
Recently, Sarine issued a profitability guidance, estimating that its third-quarter revenue would just exceed US$11 million and that it would record a minimal operating loss of several hundred thousand dollars. Comparatively, last year’s third quarter revenue and net profit were US$17.3 million and US$4 million respectively.
The company stated that the buildup of surplus inventories of polished diamonds in the mid-stream, ongoing illicit operations infringing on its intellectual properties and uncertainties stemming from litigations pertaining to these issues impacted equipment sales in the third quarter.
At the current price of $0.925, Sarine Technologies is trading at a price to earnings ratio (P/E) of 16.3 times.
The next company on the list is Yeo Hiap Seng Ltd (SGX: Y03).
The company operates through two divisions, namely Food and Beverage, and Property. Example of brands distributed by the company includes Yeo’s, H-TWO-O, Pink Dolphin and Justea.
In its last quarterly result announcement, it stated that revenue was down by 23% year-on-year to S$87.2 million. Similarly, profit attributable to shareholders was down by 35% year-on-year to S$5.3 million. The weaker financial performance was due to the transition to new distributors in Cambodia, competitive pricing and general market weakness.
The challenging operating environment is expected to continue due to soft economic conditions, weak outlook for its key markets, competitive selling prices, and uncertainty in raw material prices.
At the current price of $1.27, Yeo Hiap Seng is trading at a P/E ratio of 4.61 times.
The last company on the list today is Indofood Agri Resources Ltd (SGX: 5JS).
Indofood Agri is a vertically integrated agribusiness with principal activities that span the entire palm oil supply chain. The group also engages in the cultivation of rubber, sugar cane and other crops. Though Indofood Agri is widely diversified, plantations segment is by far the biggest profit contributor to the group.
Indofood Agri’s share price has been declining for the last five years. Cumulatively, the decline wrote off about 65% of its market capitalisation during the period.
At the current price of $0.45, Indofood Agri is trading at a P/E ratio of 9.6 times.
A Foolish conclusion
It’s worth noting that not every company with a stock price near a 52-week low is a legitimate bargain. A declining stock price can decline yet further if the underlying business performance continues to weaken.
Nothing we’ve seen about the companies above should be taken as the final word on their investing merits. The information presented in this piece should be viewed only as a useful starting point for further research.
$Indofood Agri(5JS.SI) $Wilmar Intl(F34.SI) $Sarine Tech(U77.SI) $Yeo Hiap Seng(Y03.SI)

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Singapore’s Home-Grown Billionaire Investor Has 4 Strategies That Everyone Can Follow
- Original Post from The Motley Fool Sg

Peter Lim, who is among the wealthiest people in Singapore, is a self-made billionaire who made his riches through investments in Wilmar International Limited (SGX: F34), properties, healthcare businesses and sports.

According to Forbes Singapore’s 50 Richest list, Lim had a net worth of S$2.5 billion (as of 25 July 2018), having cashed out on Wilmar eight years ago.

In 2007, the billionaire gave two separate interviews to The Business Times and The New Paper. From those interviews, I picked out some interesting pointers that investors should keep in mind when it comes to investing in stocks.

Keep emotions in check

The stock market can be extremely volatile.

For instance, last Friday, Singapore’sStraits Times Index (SGX: ^STI) rose around 30 points. Yesterday, the index was down 20 points, erasing much of the gains made last Friday. The same goes for stocks we own. One day, our shares may be down 1%, and the next day, they can rise 2%. We should neither be sad nor happy when such things happen, according to Lim:

“I used to say to my friends, ‘When you are holding stocks, if it goes up, don’t be too happy; when it goes down, don’t be too sad’.

‘Otherwise, how? Your life will also be fluctuating and you’ll die of a heart attack. If you really lose sleep over it, maybe the best way is to keep the money in the bank.’”

An excellent way to keep emotions out of investing is to write down the reasons for buying a stock. If the fundamentals of the company have not changed, but the stock price is coming down for reasons not related to the business, it could be an opportunity to buy more of the company.

Lim also does not track the daily ups and downs of the stocks that he owns. Such “inaction” can also help us shift our focus to the business — and not the stock price.

Assess the management

Lim likes to look at the person running the company when investing. To assess the management of a firm, one has to look at whether the person is honest, and if he or she is an expert in their trade. Lim commented:

“It works. It’s a tested method of assessing companies.”

Warren Buffett, one of the world’s best investors, also likes to access the management of a company before investing in it. The Oracle of Omaha favours company leaders who are honest and competent.

Ride the trend

Lim’s secret to successful investing is “prospect” – he takes a top-down approach and invests in sectors if they have good prospects. He mentioned:

“Like if I think solar is good, I go into solar; if I think palm oil is good, then palm oil.

Share prices go up because the sector grows. So if I think this sector is going to be good in the next 10 years, then I’ll just invest in it.”

It is much easier to ride the wave than go against it.

Have patience

A key ingredient to Lim’s success is patience. He does not like to trade – which is to buy one day and sell the next to lock in profits. He said that “people who get rich are those who buy a company, build it, run it”.

In The New Paper interview, he had advice for young investors (which could also apply to all):

“You have to invest with a longer-term mindset. You buy a good stock, leave it there for 10 years. Come 10 years, this dollar can be many, many multiples.

I think the trick is really to think long-term.

You may not have a lot of money, but you have a lot of time.

The minimum length of my investments are five to six years, if not 10 to 12 years.”

It takes time for businesses to grow; they certainly do not flourish overnight. Warren Buffett once remarked that we should only buy something that we would be perfectly happy to hold if the stock market was shut down for the next 10 years.

The Foolish takeaway

Peter Lim made his wealth through patient, long-term investing. He did not worry about the short-term fluctuations of the stock market. In fact, a week before the interview with The New Paper, Singapore’s stock market took a sharp dive, wiping out more than $100 million of his stock’s value. However, Lim was unruffled. Having been through many crashes and financial crises, he knew that things would turn out fine after all, and it did.

During our investing journey, we, too, would be hit by many stock market ups and downs. However, if we focus on the right things, we would do just fine as well.

$Wilmar Intl(F34.SI)

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The Week Ahead: Thai Beverage, Wilmar and Golden Agri-Resources
- Original Post from The Motley Fool Sg

The curtain will come down on the Straits Times Index (SGX: ^STI) earnings season for the second quarter next week. There are just three laggards left to report.
It wasn’t the best of quarters when Thai Beverage Public Company (SGX: Y92) reported in May. Earnings for the second three months fell 3.2% because of a decrease in profits at its beer business and a one-off expense for its acquisition of Havi Logistics. The brewer and distiller said that Thailand’s 2% excise tax on liquor was marginal, though.
Wilmar International (SGX: F34) was also on the ropes in May. First-quarter profits slumped 40% because of difficulties in Tropical Oils and Sugar. However, Oilseeds and Grains fared better. The farmer said a prolonged standoff between the US and China could affect the utilisation of its oilseed crushing plants.
Things were not that much better at Gold Agri-Resources (SGX: E5H), where first-quarter profits fell 68%. The company said revenuedropped 11% because of decreases in palm production and crude palm oil prices.
On the economic front, unit labour cost in the US is expected to show another increase on the previous quarter. In the first three months of 2018, it rose 2.9% from the previous three months, and 1.3% from a year ago.
China will report retail sales for July. In June, they increased 9% from a year earlier, with garments, cosmetics, jewellery and personal care performing strongly. The July growth rate is expected to remain robust at 8.6%.
Inflation in the UK is expected to have remained subdued in July. In April, May and June, the headline rate of inflation was 2.4%, which is the lowest level since March 2017. The inflation rate for July could have inched up to 2.5%.
India has inflation numbers too. Itis expected to come in above the central banks target of 4%. In June, consumer prices rose to 5% from 4.8% in May. The rate of inflation in July could be 4.9%.
And the central bank of Indonesia will announce its latest interest-rate decision. After three consecutive rate hikes between April and June, it left interest rates unchanged at 5.25% in July. It is expected to sit on its hands again in August.
$ThaiBev(Y92.SI) $Wilmar Intl(F34.SI) $Golden Agri-Res(E5H.SI) $Resources Prima(5MM.SI) $Golden Agri-Res(E5H.SI) $Wilmar Intl(F34.SI) $ThaiBev(Y92.SI)

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These 3 Blue-Chip Stocks Are Near Their 52-Week Lows: Are They Cheap?
- Original Post from The Motley Fool Sg

Stocks selling near their 52-week low prices might prove to be good bargains for investors. Even among the blue-chip companies of the Straits Times Index (SGX: ^STI), several stocks are trading near their respective 52-week low prices.
Let’s look at three of them which are trading close to their 52-week low prices. They are Hutchison Port Hldg Trust (SGX: NS8U), Wilmar International Limited (SGX: F34) and Sembcorp Industries Limited (SGX: U96).Source: Google Finance and SGX StockFacts (data as of 24 July 2018)
Hutchison Port announced its financial results for the second quarter ended 30 June 2018 on Monday this week.
For the latest period, revenue and other income dipped 3.6% year-on-year to HK$2.79 billion while net profit plunged 36.8% to HK$170 million. The bottom line was hit by lower container throughput at its ports in Hong Kong and Shenzhen.
Combined container throughput at its Kwai Tsing terminals declined by 7.2% year-on-year, mainly due to a decline in transhipment cargoes. The Shenzhen port’s container throughput fell by 4.1% largely on the back of a drop in empty cargoes, but this was partially offset by an increase in the US and transhipment cargoes.
Going forward, the trust provided the following cautionary statement:
“The level of uncertainty in political and economic relations as it pertains to trade has increased significantly over the course of the year to date and shows little sign of abating. The impact of measures which may arise out of the trade disputes, especially those between the United States and China, on the performance of HPH Trust for the remainder of the year cannot readily be quantified given the level of uncertainty that currently prevails as to both the specific nature; extent; and timing of such measures and the consequent precise impact they may have on local and global trade flows and, as such, HPH Trust’s business.”
Asia’s leading agribusiness group, Wilmar, will be announcing its 2018 second-quarter results on 13 August.
For the first quarter, revenue rose 5.7% to US$11.17 billion, but net profit tumbled 40.6% to US$203.3 million. The company said that the “lower profit reflected the difficult operating environment for Tropical Oils and seasonal Sugar losses during the quarter”.
Wilmar saw strong sales growth in Oilseeds & Grains due to higher crushed volume and the later Chinese Spring Festival in 2018. This, coupled with higher commodity prices, helped to prop up the top line.
Kuok Khoon Hong, chairman and chief executive of the group, commented on how the US-China trade war would affect his business in the near-term:
“The prospect of China imposing import tariffs on US soybeans will result in soybean prices staying volatile for the coming quarters. Even though performance of our Oilseed Crushing business will not be affected in the short term, a prolonged standoff between China and the US would affect the utilization of our crushing plants. Nevertheless, we foresee that any negative effect will be partially mitigated by better performances from both our flour and rice businesses. In addition, with the improvements in production yields and better margins from downstream operations, the Tropical Oils segment will likely perform better in the subsequent quarters.
Sembcorp Industries’ 61%-owned subsidiary, Sembcorp Marine Ltd (SGX: S51), went into a net loss of S$55.6 million for the 2018 second-quarter, reversing a net profit of S$5.1 million seen a year ago.
The loss came on the back of a revenue surge of 150.8% to S$1.63 billion. The massive increase in revenue was mostly due to higher revenue recognition for rigs and floaters upon the delivery of two jack-up rigs to Borr Drilling and the sale of a semi-submersible rig. Excluding these, revenue would have declined by 12% to S$572 million.
The loss of S$55.6 million for the quarter was largely due to “loss upon the sale of a semi-submersible, lower overall business volume, especially in rigs & floaters and offshore platforms, which impacted the absorption of overhead costs, offset by margin recognition upon delivery of rigs”.
Sembcorp Industries will release its second quarter financial results on 3 August 2018.
With the blue-chips selling near their respective 52-week lows, are they cheap?
To get a quick answer, we can compare the valuation of the SPDR STI ETF (SGX: ES3), an exchange-traded fund which tracks the fundamentals of the Straits Times Index, to the valuation of the respective companies.
As of 24 July 2018, the SPDR STI ETF had a PE ratio of close to 11, a PB ratio of 1.1 and a dividend yield of around 3%. Thiscould suggest that Hutchison Port is worth a second look at its current price due to its better PB and dividend yield as compared to the market average. However, potential investors should also be aware of the risks associated with Hutchison Port. The trust could be selling at a low price for a reason.
$Wilmar Intl(F34.SI) $HPH Trust USD(NS8U.SI) $Sembcorp Ind(U96.SI)

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Looking To Invest in Small-Cap Companies? Here’s 4 Things To Know About The FTSE Small Cap Index
- Original Post from The Motley Fool Sg

Investing in small-cap companies may have underlying advantages over investing in big companies. For one, small-cap companies may lack visibility from the broad investing community, creating a price-value mismatch. This provides investors the chance to pounce on good investments at discounted prices. Small cap companies could also be at their initial growth stage and have a much longer runway for growth.
In Singapore, the FTSE Small Cap Index represents the companies that have a market cap of between S$103 million to S$2.6 billion. There are 65 constituents in the index and another 200 companies listed in Singapore that fall within this range. Here are four things investors should know about this index.
The five best-performing index constituents
As highlighted in a recent report by the Singapore Exchange (SGX), the five best-performing index constituents were China Sunsine Chemical Holdings Ltd (SGX:CH8), BreadTalk Group Limited (SGX: CTN), Japfa Ltd (SGX: UD2), Tianjin Zhong Xin Pharmaceutical Group Ltd (SGX: T14) and Hrnetgroup Ltd (SGX: CHZ).
As of 12 July, they had year-to-date returns of 69.4%, 40.9%, 27.8%, 20.1% and 19.1% respectively. The five stocks averaged a 28.6% return over the period.
The five worst-performing index constituents
The SGX report also highlighted the five worst performers over the same period. They were Indofood Agri Resources Ltd (SGX: 5JS) (-42.3%), Thomson Medical Group Ltd (SGX: A50) (-39.5%), Courts Asia Ltd (SGX: RE2) (-36.9%), Hi-P International Ltd (SGX: H17) (-36.2%) and Yoma Strategic Holdings Ltd (SGX: Z59) (-33.3%). These five stocks averaged a negative 37.7% return over the period.
Index heavily weighted to real estate
Real estate stocks or real estate investment trusts (REITs) heavily represent the 10 stocks that make up the largest weight of the index. Nine of the ten are REITs, while one is a property developer. Together, they make up nearly 40% of the total index weight. Because of the heavy weighting on real estate investment trusts, the index boasts a relatively high trailing dividend yield of 3.8%.
Year-to-date return of the index
At the time of writing, the index was trading at 370.5 points. This represents a 40.2 point or 9.7% decline from the start of the year. The bulk of the decline is mostly due to poor performance by REITs over the last six months as a result of interest rate hike fears.
The Foolish bottom line
Investing in small-cap companies can be rewarding if we can find undervalued, unearthed gems that the broader market has not spotted.
However, there are also risks involved when investing in small-cap stocks. For one, the lack of visibility may be a double-edged sword as finding information about them may be difficult. Secondly, small-cap companies may also face higher cost of funding. Despite their obvious potential, investors should tread cautiously when dealing with small-cap companies.
$Indofood Agri(5JS.SI) $China Sunsine(CH8.SI) $HRnetGroup(CHZ.SI) $Hi-P(H17.SI) $Courts Asia(RE2.SI) $Tianjin ZX USD(T14.SI) $Japfa(UD2.SI) $Yoma Strategic(Z59.SI)

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Why Has Wilmar International Limited’s Stock Price Fallen By 13% Over The Past Year?
- Original Post from The Motley Fool Sg

Wilmar International Limited (SGX: F34) is an agricultural company that operates through four main segments: Tropical Oils; Oilseeds and Grains; Sugar; and Others.
Over the last 12 months, the company’s stock price has fallen by 13% to S$3.05. What may have caused this?
Reasons for a decline
There can be many reasons behind a stock’s price decline. But, the reasons can generally be classified as business-performance-related, or investor-sentiment-related.
The former deals with how a stock’s business has performed or is expected to perform. And in terms of business performance, one of the really important numbers would be the stock’s profits.
Meanwhile, the latter is about the overall mood of market participants – are investors more greedy than fearful, more pessimistic than optimistic et cetera? In general, negative emotions (fear and pessimism) tend to drag down the prices of stocks while positive emotions (greed and optimism) tend to push up stock prices.
The case with Wilmar
In Wilmar’s case, I believe both factors were at work. Here’s a table showing a condensed income statement for the agricultural giant for 2018’s first quarter:

Source: Wilmar International earnings update
We can see that Wilmar’s net profit and core net profit were both down hard despite a near-6% increase in revenue. The main culprits for the big fall in profit were the Tropical Oils and Sugar segments. In the first quarter of 2018, the Tropical Oils segment saw its pre-tax profit fall by 34% year-on-year to US$101.7 million; for the same period, the Sugar segment’s pre-tax loss widened from US$34.5 million to US$39.0 million. So, it’s clear that Wilmar’s latest business performance has been less than ideal.
In addition, I think that investors’ sentiment towards Wilmar is negatively impacted by the ongoing trade-tensions between China and the US. In Wilmar’s latest earnings update, its CEO, Kuok Khoon Hong, shared comments that highlighted how Wilmar’s business may be affected by a trade war between the two economic powerhouses (emphasis is mine):
“The prospect of China imposing import tariffs on US soybeans will result in soybean prices staying volatile for the coming quarters. Even though performance of our Oilseed Crushing business will not be affected in the short term, a prolonged standoff between China and the US would affect the utilization of our crushing plants.
Nevertheless, we foresee that any negative effect will be partially mitigated by better performances from both our flour and rice businesses. In addition, with the improvements in production yields and better margins from downstream operations, the Tropical Oils segment will likely perform better in the subsequent quarters.”
With so much trade-war-related news floating in the media, I think it’s likely that investors may have developed a negative view on companies such as Wilmar that has significant exposure to cross-border import-export activities.
$Wilmar Intl(F34.SI)

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