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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The Week Ahead: How The Budget Could Affect You
- Original Post from The Motley Fool Sg

No more speculation. No more rumours. No more testing of the waters. On Monday at 3:30pm we will find out how the Singapore government plans to reconcile its expenditure with revenues. Yes, it’s annual Budget time….
…. So how will revenues be raised to cover increased spending. Will it be income tax? GST? Capital gains tax? Inheritance tax? We will find out soon enough.
Meanwhile, life goes on in the corporate world. Sembcorp Industries (SGX: U96) will report full-year numbers on Thursday. In November, the industrial conglomerate said net profit slumped 37% on lower revenues, a write-down at its utilities business and higher financing costs.
Wilmar International (SGX: F34) said a good performance in oilseeds and grains was undone by weakness in tropical oils and sugar in the third quarter. Profits at the integrated farmer slipped 6%, while revenues ticked up o.4%. The company said it is optimistic about the future of Asia.
Defence contractor, Singapore Technologies Engineering (SGX: S63), posted a 67% jump in third-quarter earnings in November. Revenues were unchanged. The bottom line was boosted by lower expenses and the absence of an exceptional impairment charge.
Genting Singapore (SGX: G13) said stronger VIP and premium mass business volume boosted revenues 8% in the third quarter. That together with a drop in the cost of sales helped to bolster operating profit by 24%.
On the economic front, Japan will report January inflation numbers. In December consumer prices rose 1%, which was the highest inflation rate since March 2015. Prices were driven up by a jump in the cost of food.
Singapore will report inflation numbers too. The January headline inflation rate could show an uptick from 0.4% to 0.6%. December inflation was lower than expected because food and transport went up at a slower pace. There was also a fall in the cost of housing and utilities.
$Wilmar Intl(F34.SI) $Genting Sing(G13.SI) $ST Engineering(S63.SI) $Sembcorp Ind(U96.SI)

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Yeo Hiap Seng Ltd’s Stock Is Down By 15% In The Last 12 Months: Is It A Bargain Now?
- Original Post from The Motley Fool Sg

Yeo Hiap Seng Ltd (SGX: Y03) is a food & beverage manufacturer. Some of its popular beverage brands are Yeo’s, H-TWO-O, and Pink Dolphin.
Over the last 12 months, Yeo Hiap Seng has seen its stock price decline by 15% to S$1.20 currently. This may raise a question among investors: Is Yeo Hiap Seng a bargain now?
Unfortunately, there is no easy answer. But, we can still get some insight by comparing Yeo Hiap Seng’s current valuations with the market’s. The three valuation metrics I will focus on are the price-to-book (PB) ratio, price-to-earnings (PE) ratio, and dividend yield.
I will be using the SPDR STI ETF (SGX: ES3) as a proxy for the market; the SPDR STI ETF is an exchange-traded fund that tracks the fundamentals of Singapore’s stock market benchmark, the Straits Times Index (SGX: ^STI).
Yeo Hiap Seng currently has a PB ratio of 1.09, which is lower than the SPDR STI ETF’s PB ratio of 1.3. In addition, Yeo Hiap Seng’s PE ratio is significantly lower than that of the SPDR STI ETF’s (3.8 vs 11.4).
Coming to the dividend yield, this is where Yeo Hiap Seng loses its lustre. The company has a yield of 1.6% compared to the market’s yield of 2.9%. The lower a stock’s yield is, the higher is its valuation.
Putting all together, we can argue that Yeo Hiap Seng is probably trading at a marginal discount to the market. The company has lower PB and PE ratios, but a lower dividend yield.
But, investors may also want to note that Yeo Hiap Seng’s earnings per share numbers are inflated by one-time gains from the sale of investments and certain assets. All-told, in the 12 months ended 30 September 2017, the company logged net income of S$156.4 million, and one-time gains of S$163.1 million.
$STI(^STI.IN) $STI ETF(ES3.SI) $Yeo Hiap Seng(Y03.SI)

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

Walter Schloss, dubbed a Superinvestor by Warren Buffett, was a deep value investor. He was very keen on stocks that were selling at 52-week low prices.
In Singapore, even among the blue-chip companies of the Straits Times Index (SGX: ^STI), there are a few stocks that are at or near their respective 52-week low prices.
Let’s look at three of them – Jardine Cycle & Carriage Ltd (SGX: C07), Wilmar International Limited (SGX: F34) and Singapore Telecommunications Limited (SGX: Z74) – starting with the stock that is closest to its 52-week low price in terms of percentage.
Source: Google Finance and SGX StockFacts
Jardine Cycle & Carriage announced in December last year that it had increased its stake in Vietnam-listed Refrigeration Electrical Engineering Corporation from 23.6% to 23.9%. It forked out close to US$2 million for the purchase.
The acquisition came after another investment in the country. In November that year, the conglomerate invested US$1.2 billion for a 10% stake in Vietnam Dairy Products Joint Stock Company (Vinamilk), a leading dairy producer in Vietnam with a market share of approximately 58%. Vinamilk is still majority-owned by a Vietnamese state shareholder.
According to a recent article in The Business Times, a large number of the country’s state-owned enterprises are on a privatisation effort, allowing both foreign and domestic investors to have a stake in the firms. This would in turn “boost the national coffers and grow the private sector”.
Agribusiness group, Wilmar International, saw its revenue for the third quarter ended 30 September 2017 increase 0.4% year-on-year to US$11.13 billion. The rise was on the back of higher sales from oilseeds and grains. However, the firm’s net profit and core net profit dropped 5.7% and 15.9% respectively.
Looking ahead, chairman and chief executive of Wilmar, Kuok Khoon Hong, said:
“We expect the good performance in the Oilseeds & Grains segment to continue into the fourth quarter, with crush margins and volume anticipated to remain positive. Performance of the other major business segments is expected to be satisfactory. With good economic performance in key Asian countries, we remain optimistic about the future of Asia. We will continue with our expansion plans, especially in Oilseeds and Grains including Consumer Products.”
Investors would know for sure how the company performed for the fourth quarter and full year ended 31 December 2017 when it announces its financial results on 22 February 2018.
Singapore Telecommunications, or Singtel for short, announced its financial results for the third quarter ended 31 December 2017 this morning.
For the quarter, revenue and EBITDA (Earnings Before Interest, Taxes, Depreciation and Amortisation) grew 4% and 6% to S$4.6 billion and S$1.3 billion, respectively. The improvement came on the back of robust contributions from its core and digital businesses. However, net profit was affected by falling voice revenues and higher infrastructure investments. This led to a 9% year-on-year drop in earnings to S$890 million.
Singtel’s chief executive, Chua Sock Koong, said:
“We see our investments in network infrastructure and spectrum as critical to our future growth and longer term returns in this digital world. Already, our transformation strategy is delivering with digital and ICT [Information and Communication Technology] services accounting for 23% of our revenue this quarter. In our core business, the digitalisation of our services across the Group has enabled us to deliver better customer experience and manage costs. The Australia business, particularly mobile, drove profitable growth. We will strive to provide more value to our customers by anticipating their needs and staying ahead of the competition.”
With the blue-chips selling near their respective 52-week lows, are they a bargain?
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 at 7 February 2018, the STI ETF has a PE ratio of close to 11 and a dividend yield of around 3%. This could suggest that Singtel is worth a second look with its PE ratio lower than the market and dividend yield higher than the market. Jardine Cycle & Carriage and Wilmar International do not look undervalued, despite their tumbling stock prices.
$Jardine C&C(C07.SI) $Wilmar Intl(F34.SI)

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3 Things You Need to Know About the Singapore Stock Market Today
- Original Post from The Motley Fool Sg

Here are three things about the local stock market and investing in general that you might be interested in today.
1. The Straits Times Index (SGX: ^STI), ended the day at 3,521.3 points, down 20.6 points or 0.6%.
Among the 30 index constituents, 19 were in the red, with the largest loser being Wilmar International Limited (SGX: F34). The agribusiness group’s shares slumped 2.2% to S$3.17.
Venture Corporation Ltd (SGX: V03) emerged as the leader in the winners’ camp, adding 1.5% to S$23.15. Other than the electronics manufacturing services outfit, seven other blue-chip companies ended Thursday in the green. The remaining index components were unchanged for the day.
2. The earnings season is here so do check out some of the latest earnings coverage below:
a) Soilbuild Business Space REIT (SGX: SV3U) – click here
b) First Real Estate Investment Trust (SGX: AW9U) – click here
3. In 2017, shares of the three Singapore-listed banks rose more than 29% each. With dividends added to the mix, each bank stock produced an average return of close to 42%.
My Foolish colleague, Jeremy Chia, is positive that the good showing can continue this year. You can find out why by heading here.
$First Reit(AW9U.SI) $Wilmar Intl(F34.SI) $SoilbuildBizReit(SV3U.SI) $Venture(V03.SI)

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Here Are 3 Blue-Chip Stocks Near their 52-Week Lows: Are They a Bargain?
- Original Post from The Motley Fool Sg

Walter Schloss, dubbed a Superinvestor by Warren Buffett, was a deep value investor. He was very keen on stocks that were selling at 52-week low prices.
In Singapore, even among the blue-chip companies of the Straits Times Index (SGX: ^STI), there are a few stocks that are at or near their respective 52-week low prices right now.
Let’s look at three of them – Singapore Telecommunications Limited (SGX: Z74), Jardine Cycle & Carriage Ltd (SGX: C07), and Wilmar International Limited (SGX: F34) – starting with the stock that is closest to its 52-week low price.Source: Google Finance and SGX StockFacts
Singtel announced earlier in the month that it had sold 150,000 shares in ACPL Marine Pte Ltd (AMPL) to ASEAN Cableship Pte Ltd for S$15 million. With the sale, Singtel’s stake in AMPL is reduced to around 16.7% from 41.7%. According to the regulatory filing by the telecommunications outfit, “AMPL owns and charters maintenance-cum-laying cableships.”
For the three months ended 30 September 2017, Singtel’s net profit almost trebled to a record of S$2.89 billion, mainly due to a one-off gain from the divestment of its stake in NetLink NBN Trust (SGX: CJLU) through an initial public offering (IPO) held in July 2017. Underlying net profit, which is net profit before exceptional items, fell 4.1% year-on-year to S$929 million, on the back of lower contributions from associates. Revenue for the quarter increased by 6.9% year-on-year to S$4.37 billion as all business segments performed well.
Jardine Cycle & Carriage announced last month that it had upped its stake in Vietnam-listed Refrigeration Electrical Engineering Corporation (REE) from about 23.6% to 23.9%. It paid around US$2 million for the purchase.
The acquisition came hot on the heels of another investment in the country. In November, Jardine Cycle & Carriage invested US$1.2 billion for a 10% stake in Vietnam Dairy Products Joint Stock Company (Vinamilk), a leading dairy producer in Vietnam with a market share of approximately 58%.
Jardine Cycle & Carriage is the second largest overseas investor in Vinamilk after Fraser and Neave Limited (SGX: F99), which has a 19.2% stake. According to VietNamNet, REE and Vinamilk are among the most prestigious listed companies in Vietnam in 2017.
Agribusiness group, Wilmar International, saw its top line in 2017’s third quarter inch up by 0.4% year-on-year to US$11.13 billion. However, its net profit and core net profit dropped by 5.7% and 15.9%, respectively. Revenue rose due to higher sales from its Oilseeds and Grains business segment. Investors would know how the company performed for the whole of 2017 when it announces its 2017 fourth quarter results on 22 February 2018.
With the three aforementioned blue-chip stocks trading near their respective 52-week lows, are they a bargain?
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 respective valuations of the trio.
Currently, the SPDR STI ETF has a PE ratio of close to 12, and a dividend yield of around 3%. This could suggest that Singtel is worth a second look with its PE ratio being two points lower than the market, and its dividend yield being higher than the market. Jardine Cycle & Carriage and Wilmar International do not look that cheap, despite them being near 52-week lows.
$Jardine C&C(C07.SI) $NetLink NBN Tr(CJLU.SI) $Wilmar Intl(F34.SI) $SingTel(Z74.SI)

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