5 SGX Stocks That Only “Uncles” And “Aunties” In Their 50s Would Be Familiar With
Incorporated in 1973, the Singapore Exchange (SGX) has been around for a really long time.
Through the years, many companies have come and go. In recent years, well known companies such as OSIM, SMRT and NOL have opted to delist themselves for their own reasons.
And while some of these popular companies are no longer on the exchange due to their own strategic decisions, there are other once-popular companies that have faded into obscurity since their glory days among retail investors.
For those of you who are old enough, you may remember searching for the prices of these stocks on the teletext (another relic by itself), or hearing your parents talk about them over the phone with their brokers.
#1 Goldtron Limited (Renamed in 2012 ICP Ltd)
Current Share Price – $0.01, Market Capitalisation – $21.2 million
Electronic manufacturer Goldtron Limited was once a darling among retail investors in Singapore. Back in 1994, it was trading at more than $2 per share. Since the early 2000s, share price have consistently been falling year after year.
In its last annual report in 2012 before the company was renamed, the future did not look bright. Revenue for the company has dropped from $8.7 million in 2010 to $7.5 million in 2011, and subsequently $5 million in 2012. Thousands of privately own SMEs in Singapore can generate much more revenue than that.
Net loss for the company stood at $13.7 million and $4.6 million respectively in 2011 and 2012. Not surprisingly, the company is no longer relevant on the exchange.
#2 Creative Technology
Current Share Price – $0.98, Market Capitalisation – $73.9 million
Creative Technology was once a world leader in the technology space. At its peak in 2000, the company share price was more than $58 per share, the highest on SGX.
However, the early 2000s saw tight competition for Creative Technology arising from the likes of Apple. Even then, the company had the 2nd biggest market share in the music player industry, behind Apple.
Since then, Creative have failed to keep up with technologic advancement while concurrently being caught up with lawsuit, the most famous of which when it successfully sued and got a $100 million settlement with Apple for patent infringement. However, this lawsuit win failed to turn around the company’s fortune.
With the stock currently trading at less than $1, investors who bought it at its peak would have lost more than 98% of their original investment.
The company is still around and even managed to make a profit of $2.7 million in 2016, a reversal from a loss of $33.4 million in 2015. It is still relevant in the local space with its product featured by tech websites such as TechInAsia. That said, it’s unlikely to ever rediscover its glory days in the late 90s.
#3 NatSteel (Now known as NSL)
Current Share Price – $1.45, Market Capitalisation – $538 million
As its name suggests, NatSteel is one of the largest steel company in the Asia Pacific region. Since its incorporation in the early 1960s, NatSteel has been instrumental in supporting Singapore nation building efforts, supplying key materials such as steel and other construction materials and services to build Singapore’s infrastructure and residential development.
In August 2003, NatSteel shares were trading at about $3.20. It was the subject of a possible takeover by major players. Today, it’s trading at less than 50% of that.
Unlike the other two companies mentioned above, NatSteel is a consistently profitable company, with a net profit of $27.7 million in 2015. The company also gives out the bulk of its profits in dividends, rewarding its shareholders with a yield of about 5.5% per annum.
All in all, while no longer a hot favourite among retail investors, it’s still a profitable investment company.
#4 Second Chance Properties Ltd
Current Share Price – $0.26, Market Capitalisation – $190 million
Listed on the mainboard since 2004, older Singaporeans may be familiar with the company because it used to be a well-known apparel brand in Singapore.
These days however, it’s the property segment of the company people actually care about. Second Chance owns an extensive list of properties in Singapore. Unlike REITS however, they own individual units within malls rather than entire buildings. Some of these are retail and commercial space in old malls such as City Plaza, Far East Plaza and Sim Lim Square.
The company continues to remain relevant because it owns sufficient properties in Singapore.
Current Share Price – $0.44, Market Capitalisation – $37.9 million
Since it was listed on SGX in 1993, IPC have been a mainstay on the exchange. Strangely enough, the company actually started off in the PC business in the 90s before seeing its share price dropped drastically during the dotcom bubble burst. Somehow, it managed to transform itself into a property developer with the bulk of its portfolio held currently in China.
Between 2005 and 2006, the company saw its share price trading at above the $2 level. Share price have since decline to about $0.44 today with the company market capitalisation standing at just about $38 million.
However the long history of the company on the SGX and its remarkable ability to turnaround the business after the dotcom burst would have won it some fans among the older generation of investors who may have made good profits during the good old times.
What are some other companies on SGX that deserve to be on our list? Let us know on Facebook so that we can share in those nostalgic memories with you.
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