SARINE
13/4/2009 = 11 cts
12/4/2014 = $2.56
PE Ratio = 29.8 (Share Price @ $2.56)
Dividend Yield = 3.125%
Revenue increased over 2012 = 19.8%
Net Profit increased over 2012 = 15.1%
Over 5 years increased by 2,327%
STRACO
13/4/2009 = 10.5 cts
12/4/2014 = 59 cts
PE Ratio = 14.75 (Share Price @ 59 cts)
Dividend Yield = 3.39%
Revenue increased over 2012 = 31.9%
Net Profit increased over 2012 = 72.7%
Over 5 years increased by 562%
VICOM
13/4/2009 = $1.62
12/4/2014 = $5.90
PE Ratio = 18.35 (Share Price @ $5.90)
Dividend Yield = 3.39%
Revenue increased over 2012 = 8.1%
Net Profit increased over 2012 = 8.0%
Over 5 years increased by 364%
Over 5 years Sarine is the top performance increased by over 2000%.
Straco is the cheapest trading at lowest PE & highest dividend yield. Straco has the best profit margin. Straco FY 2013 revenue increased by 31.9% and profit increased by 72.7%.
Hey Yeng, I don't own any S-Chips.
Previously I had bought into Qingmei and made 2 to 3k only to lost back over 4k. For Qingmei it was because of high dividend payment that I was attracted. (See my earlier SRS article)
Qingmei indicated their factory was running at full capacity and with the IPO money raised they are increased their capacity but their performance go down hill. That is why I had alert others on S-Chip. You may make some money in 2 to 3 rounds only to lost back more in 1 round. First, do you still trust S-Chip. Second, the BB are behind all the games of up and down.
So take Care.
There are plenty of outright scammers in the marketplace. Often referred to as a "pump and dump," a penny stock scam is when the insiders talk the stock up on one hand while bailing out like there's no tomorrow on the other.
That's usually because despite the great story - and make no mistake, the stories are fabulous - the company's business prospects are usually nil.
But penny stock promoters want you to trust them, to believe in the hot tip and ensuing fortune to be made. If you're going to evaluate a penny stock, here's how they'd like you to do it:
By the multi-billion-dollar market they intend to operate in.
By the enormous profits they'll generate when their technology is finally commercialized.
By the proven reserves of the mining company operating next door.
By the results of their Phase 1 trials.
By any criterion you can think of besides what the company is actually doing right now. Because what the company is doing right now is... usually nothing. If you insist on examining these stocks, at least take a few basic precautions.
HOW TO SIZE UP A PENNY STOCK
Start by reading the company's most recent quarterly or annual report.
Does it have sales or earnings?
What kind of debt is it carrying?
How long has the company been in business?
Who are the people behind it?
In other words, if you're going to roll the dice, make sure it's a genuine speculation, not just a mindless crapshoot... or worse.
Also, take a look at what the insiders are doing. If the insiders - the ones who can hardly contain their enthusiasm for the company's business prospects - are dumping the stock en masse, you know all you need to know. RUN.
Over the last 20 years, the Straits Times Index has delivered a total return of around 5%, which is better than the rate of inflation. An investment of say,$10,000 in a portfolio of shares that mimicked the Singapore benchmark index would have turned into over $26,000 after two decades.
But more discerning investors could have done better by targeting higher-quality shares. For instance, a similar investment in Oversea-Chinese Banking Corporation in 1994 would have grown to nearly $45,000. Meanwhile, an investment in Keppel Corporation would have turned into $68,000.
Away from the benchmark index, $10,000 invested in Singapore's second-oldest company, Boustead Singapore, in 1994, would have ballooned into over $190,000. Some examples of stocks that performing well over the years are: Fragrance Groups, Vicom, Thomson Medical, Raffles Medical, Osim, Roxy Pacific, Chip Eng Seng, Hiap Hoe, SuperBowl and more recently Sarine, Bread Talk, Cordlife, Oxley and Straco.
"Price is what you pay, value is what you get" Just lookout for market-beating investments. Thing is, you don't need to have too many of them in your portfolio. You need just enough to build a diversified portfolio that could, over time, generate returns that are better than the market. And once you have identified the best shares for your portfolio - keep adding dollops of money to it, whenever the opportunity presents itself.
The clue to underperformance is fees. Regularly buying and selling shares will add to your cost of investing. Whilst the cost of investing is unavoidable, it can be controlled if we just buy and sell less often.
For me, that has always been the key to outperforming the market. Simply look for good companies that you can buy to hold for the long term.
Since the turn of the Millennium, the Straits Times Index has delivered an annual total return of around 4.2%. That's not too bad. But companies such as Keppel Corporation, Sembcorp Industries and Jardine Matheson have delivered returns that are around three times higher.
So, it has been possible to beat the market. But that is provided you choose shares that have solid business models and sound management behind them. Additionally, resist the temptation of dipping in and out of the market.
Timing the market will inevitably increase your investing cost. But time in the market should increase your investing returns.
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