Interesting Singapore Stocks to lookout for 2017

Credit to: SSI

There are currently 26 stocks on SGX which currently trades at 5% and more dividends yields; are undervalued (having a Price-to-Book ratio of less than one), without being too leveraged (debt to equity of less than 50%), What are these stocks? Well, these stocks are:

1) Broadway Industrial Group Limited
2) Global Testing Corporation Limited
3) Karin Technology Holdings Limited
4) Global Investments Limited
5) Hutchison Port Holdings Trust
6) Fu Yu Corporation Limited
7) AF Global Limited
8) Advanced Holdings Ltd.
9) LHT Holdings Limited
10) BHG Retail REIT
11) Keong Hong Holdings Limited
12) Lee Metal Group Limited
13) Hiap Seng Engineering Ltd
14) Vicplas International Ltd
15) New Toyo International Holdings Ltd
16) Far East Hospitality Trust
17) Lung Kee (Bermuda) Holdings Limited
18) Miyoshi Limited
19) Multi-Chem Limited
20) CapitaLand Commercial Trust
21) Sinwa Limited
22) Fortune Real Estate Investment Trust
23) Pan Hong Holdings Group Limited
24) Parkson Retail Asia Limited
25) Plastoform Holdings Limited
26) United Overseas Australia Limited

Of the list above, which one should investors pick? Typically, an investor should prefer a high dividends stock where the stock is undervalued. Put the above criteria in a mathematical formula, it means that investors are looking for stocks where the Dividends over (Price-to-book ratio) is high. So which stocks in the above list has the highest Dividends/ (Price-to-book)? The answer is, in terms of highest to lowest are:

1) Broadway Industrial Group Limited
2) Karin Technology Holdings Limited
3) Global Testing Corporation Limited
4) Pan Hong Holdings Group Limited
5) Global Investments Limited
6) Advanced Holdings Ltd.
7) Hutchison Port Holdings Trust
8) Plastoform Holdings Limited
9) AF Global Limited
10) Parkson Retail Asia Limited

But the above has not accounted for the debt-to-equity ratio. Typically, investors prefer low debt-to-equity ratio. So, investors should prefer as high as possible to this forumula (which accrues to the above formula): [Dividends/ (Price-to-book)] / Debt-to Equity ratio. So if we apply this formula to the original list of 26 stocks, what stocks will be ranked first? We have this list:

1) Parkson Retail Asia Limited
2) Fu Yu Corporation Limited
3) Global Testing Corporation Limited
4) Broadway Industrial Group Limited
5) Plastoform Holdings Limited
6) Global Investments Limited
7) Lung Kee (Bermuda) Holdings Limited
8) Vicplas International Ltd
9) LHT Holdings Limited
10) Karin Technology Holdings Limited

 

 

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