SG Investor Hub Blog

Stocks to watch

Hi all,

as mentioned, my take is that noble is a share for trading only. yesterday’s rally is due to updates on its secure lines, and for a company to turn around, it takes time and other factors to be in line for the desired outcome to be successful.

currently, i am looking at :

Sembcorp marine
mermaid Maritime

For US stocks, dividend counters such as AGNC had a very good run from 20.50 to the current high of 22.10+. The most attractive part is its monthly dividends, and at the price 22.00 and below, the dividend yield is about 10%. Yet, pls note that there is a 30% dividend tax for US counters. Thus that comes up to about 7% pa, which is paid monthly. Still a good bargain IMO.

lastly, I am available daily till 12am midnight. Feel free to text me your trade orders, and call me if i do not respond in time.

– Local shares could push higher after the Dow, S&P 500 and DAX rallied to record highs as large tech stocks reversed a spate of weakness.
– Play in tech manufacturers could return; proxies include Venture (Buy, TP: $13.35), AEM, UMS and Micro-Mechanics.
– Technically, the STI held its ground above the 20 and 50-dmas and appears to be forming a pennant pattern. A breakout of the topside resistance at 3,268 could signal the resumption of its uptrend. Immediate support lies at 3,228.

*Noble Group
– Updated that the senior secured revolving credit facility at Noble Americas Corp will be extended by 120 days from 20 Jun 2017.
– Continues to be in talks with potential investors concerning the sale of an interest in the group or parts of its business.
– Discussions with bankers are continuing in relation to its revolving credit facility due May 2018. Deferred the coupon payment of its US$400m perpetual capital securities due on 26 Jun 2017.
– Expects to complete its strategic review once discussions with banks and potential investors become clearer, with results likely to include an asset realisation programme and further reduction in overhead expenses.

*SIA Engineering
– 49:51 JV with Pratt & Whitney, Eagle Services Asia, has been designated as an MRO facility in Singapore for one of two engines that power the Airbus A320neo aircraft.
– ESA will invest US$85m to equip the facility and services are expected to commence in 2019 to tap on growth opportunities arising from large orders of A320neos in the region.
– Trading at 24.1x FY3/18 consensus P/E with indicative dividend yield of 3.1%.

*Manulife US REIT
– Proposed private placement of 73.6m new units (11.7% of unit base) to institutional and other investors at US$0.817-0.842/unit.
– Bulk of the gross proceeds of up to US$80.5m (including 24.9m upsize option) is intended to part fund the US$115m acquisition of an 11-storey prime office building in New Jersey, US.
– The property will increase its total NLA by 25.9% to 2.25m sf and is underpinned by a long WALE of 9.2 years with built-in rental escalation and high occupancy of 98.9%.
– Post-deal, pro forma FY16 DPU will rise 2.3% to US$0.0363.

– Clinched two contracts from new customers worth a total provisional sum of $30m.
– First was awarded by Schlumberger for fabrication of a MEG reclamation unit, expected to be completed by 3Q18.
– Second is fabrication of a skid package for Papua New Guinea, expected to be completed by 2Q18.
– Group is loss-making and trades at 0.95x P/B.

*Sarine Tech
– Launched Advisor 7.0, the latest version of its industry-leading rough planning software tool.
– Updated software includes many new features that further revolutionise rough planning, helping diamond manufacturers to further streamline the planning process and optimise the polished yield.
– Trading at 24.3x trailing P/E and 5.1x P/B.

*Ley Choon
– Bagged five new contracts worth $51.4m for underground utility infrastructure and construction works.
– The contracts lift order book to $172.3m.

*Wong Fong Industries
– Collaborating with two European principals Bucher Industries and Europress to supply a range of waste management products and solutions in Singapore and Myanmar.
– Under the agreement, it will be the exclusive distributor for Bucher’s sweeper vehicles for two years till May ’19.
– The group was also appointed to develop and market waste compactors for Europress, with the first shipment to be delivered for field testing in Jul ’17.

*China Flex Packaging
– Voluntary unconditional management buyout at $1.25/share or 0.53x P/B.
– Offeror and concert parties currently own 58.4% of the loss-making plastic film manufacturer.

*Nobel Design
– Extended the offer period of its mandatory unconditional offer at $0.51/share to 20 Jun.
– As at 19 Jun, offeror Gland Slam RF18 Investments has garnered 82.51% control.

*Eurosports Global
– 51:49 JV with S Agata to distribute automobiles, parts and related accessories in Indonesia.
– S Agata is owned by a third party with business interest in the property and services sector in Indonesia.
– The group is currently loss-making and trades at 5.2x P/B.

– Updated that discussions on the potential share sale and change of control are still on-going.
– Trading at 13.5x trailing P/E and 1.03x P/B.

– Issuing 156.3m new shares at $0.02 apiece, for settlement of $3.1m in trade payables.
– This will result in NAV/share falling to US4.07¢ from US4.17¢
– Implied P/B valuation of 0.3x.

Singapore Stocks to Watch

* Singapore Premier Lee to address family feud in July 3 speech
Harmony Gowell (CFLX SP): Makes S$1.25/Shr cash offer for China flexible
Ley Choon (LEY SP): Award of contracts worth about s$51.4m
Manulife US REIT (MUST SP): Makes $115m purchase in New Jersey
Noble (NOBL SP): One of Singapore’s wildest stocks outdoes itself: Chart
Vallianz (VALZ SP): Reports subscription of 156.3m new shares

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