Singapore Companies with high debt levels, SGX, Singapore

In its latest weekly publication on 25 April 2016, the Edge Singapore wrote a good Cover Story and highlighted a list of Singapore companies with high debt levels, declining earnings and operate in industries with weak outlooks.   It said that investors with high-risk appetites could consider these stocks:

Source: The Edge Singapore, April 25, 2016 (Bloomberg)

Having looked at the list above, I personally do not like any of the companies above expect for Tuan Sing Holdings, which I feel is a rather good company operating in a tough sector (Property Development & Investment) right now.   The company has other businesses - eg. it has been diversifying into Hotel Investments, it has an Industrial Services segment (SP Corp and Hypak) as well as Gultech (which was listed on SGX but privatised) as well as Pan-West (golf-related lifestyle products).

The other companies above are operating in touch sectors like Oil & Gas, Retail, Commodities/ Trading etc.

The Edge Singapore has rightly highlighted that investors invested in these companies will need to be patient and take a long-term view for fundamentals to improve and catch up with prices.


Also highlighted was a list of Singapore corporate bonds trading at stressed valuations, which I will not comment on as I don't invest in corporate bonds:

Source: The Edge Singapore, 25 April 2016 (Bloomberg)

Cityneon Holdings Limited (Cityneon) - SGX, Singapore

Company Background:

Cityneon is a leading service provider of creative solutions in the area of Interior Architecture, Events, Exhibitions and all manner of Experiential Environment to global multi-national conglomerates, brands, businesses and government agencies throughout Asia and the Middle East.

For company background, see company website:

http://cityneon.net/


Cityneon's share price has been on a sharp rise since 23 March 2016, prompting a SGX query on 16 April 2016.      A signficant positive development for the company is the launch of its Avengers S.T.A.T.I.O.N in Paris, Avengers STATION and Transformers Experience in Las Vegas as well as Transformers Experience in China.

Paris Press Release

Las Vegas Press Release

China Press Release


Cityneon's share price has doubled in a short space of a month from 23 March to 21 April 2016!   Historical PE now stands at about 148 times although various Research Houses expect this PE to drop substantially to teen levels by 2017 as a result of these positive developments above.


Market Action:

I normally do not sell a rising stock.  In fact my stop loss has been raised to 54 cents and this has not been broken.  However, I am making an expection in this case and taking profit as the gains are just too attractive to ignore.  

So, I am out of the stock as of today:

• 30 March 2016 - Bought Cityneon at 38 cents
• 19 April 2016 - Sold Cityneon at 59 cents
• ----->   Profit - 55% ($ XX,000)!

I sleep well tonight with a nice profit locked in.    Thank you, Cityneon.

Singapore Small-Cap Stocks to buy - RHB Research (The Straits Times, Wednesday, 20 April 2016

In a Straits Times article on Wed 20 April 2016, RHB has launched a handbook featuring 25 small -cap stocks with  earnings, strong cash reserves and growth potential that investors can consider buying.

The stocks are listed below:

     The Straits Times, Wed 20 April 2016

RHB Research hopes to unearth previously under-researched and undiscovered companies and push their hidden potential to be unleashed so that they turn from gems to glittering jewels.  

Microlink Solutions Berhad - Bursa, Malaysia

Company Background

Microlink Solutions Bhd (Microlink) is a company in Malaysia that provides banking solutions for its clients.   Established since 1994, it is an award-winning Multimedia Super Corridor (MSC) status company specialising in the provision of end-to-end banking solutions for both conventional and Islamic financial institutions.

 For company background, see below:
Microlink Solutions Bhd company website


Microlink was recently queried by Bursa with an UMA (Unusual Market Activity) due to a substantial fall in its share price.   The company replied that it was unaware of the reasons for the price drop.


Market Action:

Remarks:   HIGH-RISK TRADE!

The share price seems to be rebounding from its recent lows and broke a resistance level of RM1.10 today (Tuesday 19 Apr 2016).

• 19 Apr 2016 - Bought Microlink at RM1.10
• Updated on 28 April 2016 - Sold Microlink at RM1.00 (Loss incurred!)

I will trade on the up-side rebound of this stock.   Stop-loss set at 1.01 for downside risk limitation.

MFS Technology Ltd (MFS Tech), SGX Singapore

MFS Technology Ltd (MFS Tech) is principally engaged in the design, manufacture and distribution of flexible printed circuits (FPCs) and printed circuit boards (PCBs), and the provision of turnkey component assembly services for FPCs. As part of its provision of design services, it also provides value-added services like application engineering services in respect of FPCs to meet its customers' requirements. The Group aims to provide these services as a "one-stop" solution package to its customers in respect of their interconnect requirements.

See company website link below:
MFS Tech Website


The company has sold its core business and is in the process of voluntary liqudation.   Expected delisting date is 12 May 2016.

See delisting document:

https://drive.google.com/open?id=0B0mnNRZF77OZNEItaklOVUpxbWc

Market Action:

• Bought MFS Tech at 2.0 cents (11 Apr 2016, cum dividend)
• Sold MFS Tech at 1.9 cents (19 Apr 2016, ex dividend of 0.3 cents)
• Profit (excluding brokage costs) - 10% (S$1,000)

GL (Guocoleisure) - SGX Singapore

GL (formerly known as Guocoleisure) broke an important resistance level of $0.90 last Friday, 15 April 2016.

GL is an investment holding company with principal investments in hotel management & operations, gaming, oil & gas, property development and other areas in the leisure industry.   Notably, GL is the largest hotel owner operator in London with 5,000+ rooms, operating 17 hotels across 6 brands: Clermont Hotels & Residences, Amba Hotels, every hotels, Guoman Hotels, Thistle and Thistle Express.

The company receives 55.11% of a 2.5% overriding royalty from the Bass Strait  relating to all hydrocarbons produced in designated areas in the Bass Strait, Australia

Market Action

18 Apr 2016  -  Bought Guocoleisure at $0.905


Potential Catalysts:

• Previous talk of privatisation, which has yet to materialise.

Palette Multimedia Bhd (Bursa)

Company Profile

The Palette Group of companies was founded in 1997.   Company information can be found below:
Palette Multimedia company website

Palette is a leading solution provider of broadband, wireless and networking products and services. Palette is the leading technology provider of the latest generation of Network Access Control and Management (NACM) system for LAN and WLAN in the enterprise environment and the provider of Subscriber Management Systems to ISP, telco, and network operators in the public network environment.

The Professional Services and Consulting Unit of the Company provides technical services to our customers such as telco, ISP, broadband operators, hotel operators, property developers, enterprises and wireless hotspot operators with design, development, implementation, network management and business analysis of the technology and network.

More recently, the company has launched a new growth pillar in medical services. he company’s new growth pillar - a new revenue stream via its digital mobile healthcare system called the i-Medic system.   Palette has been investing in building this system since 2013, and the fruits are now showing; to be precise, it will contribute in the next quarter onwards.

This is mainly because the i-Medic system has its maiden contract valued at US$500,000 (RM2mil) from Griffin International Pte Ltd for its mobile healthcare business.  Under the deal, Griffin has the exclusive rights to market the subscription of the i-medicTM (which is Palette’s mobile healthcare system) to doctors, clinics and hospitals in Chengdu, China, and also to market the healthcare management packages to patients globally. the i-Medic

See press release:
Changes at Palette Multimedia (The Star 2 April 2016)


Trades last week (11 April 2016)
1.   Bought Palette at 6.5 sen (holding for more upside)
2.   Bought Palette at 7.5 sen (contra-ed off at 9.5 cents on 18 April 2016 - 26.6% return)

Acromec Limited - IPO Allocation Results

ACROMEC’S IPO ATTRACTS STRONG INVESTOR DEMAND

Acromec Limited's IPO of 27 million shares was 5.3 times subscribed.   See press release link below:

Acromec Press Release


See the following link for the allocation results:

Acromec IPO Balloting results


Acromec’s post-Invitation market capitalisation will be approximately S$26.5 million
based on the issue price of S$0.22.    

The listing and trading of Acromec’s shares are expected to commence on a “ready”
basis at 9.00 a.m. on 18 April 2016 under the stock code 1CH1.


I was lucky this time in the IPO - 9,000 shares were allocated to me.   Let's hope for a successful opening debut!   : )

[Update:   IPO shares were sold on the opening day at 24.5 cents.   Profit of about $200]

Acromec Limited IPO - PhillipCapital Recommendation

PhillipCapital recommends to subscribe to the Acromec IPO.

Attached link:

PhillipCapital Report Recommendation

Acromec IPO (Acromec Limited), Singapore

Acromec IPO Details:

Company Background

• A Singapore-based specialist engineering services provider with 20 years of experience in the field of controlled environments.  Expertise is in the design and construction of facilities requiring controlled environments such as laboratories, medical controlled environments such as laboratories, medical and sterile facilities and cleanrooms.
• Serves mainly the healthcare, biomedical, research and academia, and electronics sectors.  Customers comprise mainly hospitals and medical centres, government agencies, research and development companies or agencies, research and development units of multinational corporations, tertiary educational institutions, pharmaceutical companies, semiconductor manufacturing companies, and multinational engineering companies.

Shares on Offer:

Invitation in respect of 27,000,000 New Shares comprising:
(a) 1,500,000 Offer Shares at S$0.22 for each Offer Share by way of public offer; and

(b) 25,500,000 Placement Shares at S$0.22 for each Placement Share by way of placement, comprising:

(i) 22,500,000 Placement Shares at S$0.22 for each Placement Share; and
(ii) 3,000,000 Reserved Shares at S$0.22 for each Reserved Share reserved for subscription by Acromec Directors, employees, customers and suppliers who have contributed to the success of the Group.

Dates to note:

7 April 2016, 9.00 a.m.                Commencement of Offer
14 April 2016, 12.00 noon           Close of Application List
15 April 2016                                   Balloting of applications, if necessary
18 April 2016, 9.00 a.m.              Commence trading on a “ready” basis

IPO Prospectus:

See attached:

Acromec Limited IPO

Intention:

1. To Apply for the IPO with an intention to stag (ie. Sell off the shares if successful).   Limited shares on offer (only 1.5 million shares available to the public)
2.  Expected opening price range: 23 to 28 cents.

Introduction and Disclaimer

I am Green Ninja, a retail investor interested in the stock markets in South East Asia.

My investing style is geared towards growth rather than stability in terms of investing only in blue-chips and dividend stocks.   Hence, the investing style leans towards a more aggressive portfolio of stocks.

Disclaimer: 

The posts and views expressed by me are by no means a recommendation or a solicitation or expression of views to influence you to buy or sell any stocks. I am just sharing openly on what I am doing with my own investments.   You need to understand your own investment objective, risk appetite and the amount of loss you can afford to bear as all investments bear a certain degree of risk.   Stock market losses are as real and inevitable as profits can be.