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Sunday 24 April 2016

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)






















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