My other stock picks

Apart from Hiap Hoe and Q&M which I thought could do well this year (earlier posting on stock picks 2010), here are 2 other counters I like:

1. Hiap Seng - company will report 9M results next month (last year: 12 Feb). 1H profit already up 279% to $15.5m, EPS: 5.11ct. 9M results should therefore be up in the range of 300-400%, especially because 9M 2009 was a low $4.8m.

EPS 9M should come to about 7.5cts, and full year shd top 10cts, giving stock a reasonable PE of abt 7X at current price. Chart also looks nice. DBS Securities also likes the co, as reiterated in yesterday's report, which says target is 90cts.

2. Design Studio - company will report FY09 results next month (last year: 24 Feb). 9M profit was already $18.6m. Full year should come to abt $25m, up about 100% from last year. EPS should hit abt10cts, giving stock a PE of abt 6.5X at current price. This stock is covered by Kim Eng, and on 10 Dec, they had a buy call with target set at $1. Kim Eng expects FY09 EPS to be 10.6 cts.

Chart also looks rather nice, and if the 67cts level is convincingly broken, stock price will be heading into uncharted territory in other words, all time high. Very few stocks have managed to reach all time high at this moment in time (eg ST index is still 1000 points below its 2007 peak), and it reflects the good fundamentals of the company.

But what are these companies doing? What are their plans and what is their capital structure like? I prefer to concentrate on Balance Sheet and Cash Flow Statement. Income Statement only tells part of the story but analysts love to use it for their reports; and they generally ignore the other two.

Hi musicwhiz, My note is a quick summary. For the details, you can google for the brokers\' reports on the 2 companies. Also, you can go to SGX website for all the quarterly and full year results. I look at all annual reports, SGX announcements, etc to arrive at my analyses and decisions, usually before major movements in the stock prices. Then when the stocks get covered by broking houses, they tend to get a bigger following and greater price movements.

Hi sumer, Appreciate your reply and posting. I know where to find the information, and of course SGX has it. But I was thinking that to make an informed decision, at least basic info on what the company is doing and its plans should be displayed in this forum and on this thread. I believe you are a person who does his homework, as you say you read Annual Reports. Could you make some simple comments on the Balance Sheets and Cash Flows of these 2 companies? Nothing detailed, just want a quick summary so that if it sounds interesting, I can do my own homework. Thanks in advance.

Hi, what does everyone think of Hotung? It is creeping up surely. I see it is trading at a very deep discount to its NAV and with the equity markets rallying, I am sure its investments will go up further. Traded in US$ though. Vested!

sumer, your star pick Design Studio touched 70 cents today! The stars are aligned! Hope they give good dividend too, since their profits will be so huge for 2009.:laugh: :laugh: :laugh: