Saturday, April 23, 2016

It has already been almost a year...

First of all, thank you once again for reading my blog.

It has been almost a year since I implemented criteria investing, which in November led to the creation of Triple S Scorecard

Many have requested the Triple S Scorecard from me and I hope they have benefited from this scorecard.

It has been a year since I implemented the criteria investing and about 5 months into Triple S scorecard - and I am looking to do some enhancement on the Triple S Scorecard template.

You may ask: "Why am I doing this? Are you being too impatient?"

There are 2 factors that encouraged this move:

1. Big Fat Purse and Invest OpenlyBefore I proceed, I like to clarify that I have nothing against Big Fat Purse method and I have never went for their course before. Therefore, after reading some posts in Invest Openly, who uses Big Fat Purse analysis on stock picking, I realize I like the simplicity of their method. Both of our method are trying to find similar stocks but theirs more user-friendly and easier to understand.

2. Stocks I bought based on the Triple S Scorecard has been performing relatively good but not fantastic. It didn't get affected much during the downturn this year,but it does not rise very fast either when the STI is in a bull run now (I know, I stated that we have to wait 2 to 3 years). Thus, I was wondering if some enhancement will be able to allow me to pick even better performing stock?

3. I intend to start a course soon. People will want something that is easier to understand, right?

So do you also have any other suggestion on how I can improve on the Triple S Scorecard?

Do comment below!

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Tuesday, April 19, 2016

Ellipsiz Ltd - The Sudden Rise

This will be a post on Ellipsiz Ltd. I believe I should highlight this stock to others as the price has been rising steadily.

Profile in Short

The company is a leading probe card and distribution and service solutions provider serving the semiconductor and electronics manufacturing industries (Google if you don't understand...That's what I did.). It provides innovative, engineering-focused solutions to the semiconductor and electronics manufacturing chain. Their customers include global semiconductor companies such as integrated design manufacturers and foundries, as well as the electronics contract manufacturers. Headquartered in Singapore, the company also has operations in China, France, India, Japan, Malaysia, Singapore, Taiwan R.O.C, Thailand, U.S.A and Vietnam.

Based on the Triple S Scorecard (Present Price of $0.370):

Based on the Triple S Scorecard (Past Price of $0.300):

Why So Good?

Low Price to Book -This stock caught my eye as I have been looking at deep-value stocks. As of 19 April 2016, it has a very low Price to Book Ratio of 0.465. 

Consecutive Net Profit with Dividend - The company has been consistently producing net profit and distributing dividend to shareholders for the last 5 years.

Below Net Current Asset Value Per Share (initially) - At that time when it was priced at 0.300, the stock is priced below its Net Current Asset Value of 0.322. This meant that whatever non-current asset that comes along with the purchase... it comes as Free of Charge!

Passed Triple S Scorecard (initially) - At that time it was priced at 0.300, the company passed the Triple S Scorecard beautifully.

Why So Bad?

Super High Intangibles - I have spotted this company a long time ago. But I hesitate to buy as it has a high intangibles amount. To me, intangibles are "nothing" and do not really has any physical value. It will be dangerous if companies just write them off suddenly.

What it really produce? - After googling, I stay cannot really identify what the company produce. I just know it is something that has to be in Electronics Applications. However, what are the uniqueness of this product that is produced by Ellipsiz, as compared to others?

Sunset Industry - The semiconductor industry is in a very uncertain period. Many companies are going through merger and acquisitions. Furthermore, with technology being ever-changing, will Ellipsiz continue to stay relevant? If it has to continue to stay relevant, then more money will need to be invested in Research and Development. Eventually, the super long term is grey and uncertain.

In Short

From the factors above, I bought this stock mainly based on the numbers and it passing my Triple S Scorecard. Nevertheless, even when the stock price is at 0.370 and has failed the Triple S Scorecard now, I will hold on to them and await their next result.

Right now, the stock's Price to Book is still very low with Net Asset Value per share at about 0.70+. If you are looking at Deep Value Stocks, this could be another good pick.

Current Price: 0.370 as of 19 April 2016.

Please do your own due diligence before you invest in this stock.

Do note the author is vested in this stock/company at 0.300.

Friday, April 8, 2016

The Value Portfolio - Recent Actions and Views - Post 8

Here is a short update on my portfolio.

The following stocks are in my portfolio:

1) Sin Ghee Huat Corporation Limited
2) PNE Industries Limited
3) Chuan Hup Holding Limited
4) LHT Holdings Limited
5) TTJ Holdings Limited
6) Accordia Golf Trust
7) Singapore Telecommunications Limited
8) Sapphire Corporation Limited
9) Suntec Real Estate Inv Trust
10) Oversea-Chinese Banking Corporation
11) CH Offshore Ltd
12) Maxi-Cash Financial Services Corp Ltd
13) ST Engineering Ltd
14) Bukit Sembawang Estates Ltd 
15) M1 Limited
16) Hock Lian Seng Holding Ltd
17) Ellipsiz Ltd
18) BBR Holding (S) Ltd
19) LTC Corporation Ltd
20) DeClout Limited
21) IPC Corporation Ltd
22) Vibrant Group Ltd
23) USP Group Ltd
24) Lafe Corporation Ltd

Sold ISDN Holding Ltd - Has been holding it for about 1 year. Sold this stock due to the recent rise in price as I felt there are better opportunities around.

Sold PSL Holding Ltd - This was a deep value stock that is in the process of changing its business to something related to marine. Thus, when the share price rise about 15%, I decided to sell it off to secure the gains in view that the future of marine industry maybe grey.

Sold Fu Yu Corporation Ltd - Sold this stock after it rises significantly towards 0.200. But end up I sold it at 0.194 and it announced the 0.01 dividend. I may have sold too early but the comforting news is that I have lock in my gains.

Sold Fischer Tech  Ltd - Yup. I sold my 200 shares. It's a good stock, a good company. But I don't see a point holding on to it when I only have 200 stocks.

Sold PSL Holding Ltd - This was a deep value stock that is in the process of changing its business to something related to marine. Thus, when the share price rise about 15%, I decided to sell it off to secure the gains in view that the future of marine industry maybe grey.

Bought Vibrant Group Ltd - This is an interesting company. Hopefully I have the time to write out why I bought this stock.

Bought USP Group Ltd - Please read my write up. Bought due to the potential rise in Net Asset Value.

Bought Lafe Corporation Ltd - This is another deep value stock. However, it was purchased due to some impulse. Currently considering my next step.

On my previous write ups:
Previous Post: The Value Portfolio - Recent Actions and Views - Post 7
Previous Post: The Value Portfolio - Recent Actions and Views - Post 6
Previous Post: The Value Portfolio - Recent Actions and Views - Post 5
Previous Post: The Value Portfolio - Recent Actions and Views - Post 4
Previous Post: The Value Portfolio - Recent Actions and Views - Post 3
Previous Post: The Value Portfolio - Recent Actions and Views - Post 2
Previous Post: The Value Portfolio - Recent Actions and Views

So if you are interested in my Triple S Scorecard, contact me through my blog or message me on my T.U.B Investing Facebook Page

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Monday, April 4, 2016

Fischer Tech Ltd - Misses Happened

It has been some time since I put up a stock that passes Triple S Scorecard.

So here is a stock that pass the Triple S Scorecard and one that I have watch-listed since it was at 0.850 per share during last September 2015.

In the end, I am only able to get 200 shares at 0.905 per share. Thus, to me, I deem that I have missed out on this stock as it has now rise to 1.005 per share.

Profile in Short

Fischer Tech Ltd manufactures and sells precision engineering plastic components for electronic products in China, Singapore, Thailand, and Malaysia. It operates through two segments, High Precision Plastic Injection and Mould Design and Fabrication. The company offers precision plastic injection molds, high precision injection molding, laser marking, and decorative finishing for engineering components of automotive, computer peripherals, healthcare, and consumer product industries. It also develops 2-shot injection molding, thin-wall injection molding, Neo dynium-yitrium aluminum garnet laser marking, in-mold labeling, and cosmetic molding technologies. Fischer Tech Ltd was founded in 1994 and is based in Singapore. Fischer Tech Ltd is a subsidiary of Harmony (S) Holdings Pte Ltd.

Based on the Triple S Scorecard:


Why So Good?

Plastic Component - I believe oil is part of the raw materials required for plastic. As oil has fall to below $40 per barrel, I believe this will reduced the cost of goods sold for this company. Thus, in the next 2 years, I believe the net profit will rise in view that the cost of goods sold has reduced.

Automotive segmentation - Automotive segment contribution to revenue has increased to 81.5% for the 2Q 2015. Fischer Tech Ltd seem to be the "go to company" for Automotive plastic component. We know that Singapore will be scraping about 500k of cars by 2017 due to the end of the 10 year COE period. Singapore, being the car crazy country, will definitely boost the revenue of car companies in 2016 and 2017. Therefore, this may indirectly result in a significant increase in revenue from 2016 to 2018 for the company.

Very Little Debt and Pass Triple S Scorecard - Yes. This stock pass the Triple S Scorecard with 11 points.

Turnaround since 2013 - If you look at the Triple S Scorecard, you will realised the company only has a 0.01% of net profit margin in 2011 and negative 8+% of margin losses in 2012. However, after 2013, the company started to achieve significant net profit of above 3.5% since 2013. Thus, something must have gone right there, right? If the company continue to perform similarly, the net profit should continue to rise. Thus, the asset value will rise and then the possibility of increased dividend.

Why So Bad?

Sunset Business - The company is in precision engineering of plastic. This is a business that is very easily replaced by others unless you have signed long term contracts with your customers. Furthermore, manufacturing sector has been performing badly within the Singapore economy. Thus, this is a question investor need to ask themselves when they intend to purchase the stock - How long can they hold the shares?

Rise in Stock Price - I have seen the stock rise from 0.850 per share to 1.005 per share and I think that is too fast and furious. I am unable to convince myself if there are better opportunities out there as there will definitely be more volatility ahead.

Loss in 2012 - Furthermore, I am unable to acertain why the stock did not make any money in 2012 and what happen after that. Thus, I decided against investing in this stock.

In Short

My conclusion is that I hate SGX for changing the number of shares per lot from 1000 shares to 100 shares. If only I have at least 1000 shares, I will be making a small gain now, rather than a loss due to TRANSACTION FEE,

Anyway as stated, I believe the rise in the stock price is too fast and I will not be adding any of this stock in the meantime.

Current Price: 1.005 as of 4 April 2016.

Please do your own due diligence before you invest in this stock.

Do note the author is vested in this stock/company at 0.905 for only 200 shares.