Bought the following 2 stocks on 3-01-2012 in anticipation of a small New Year Rally, and expectation of their good results & dividends in February 2012 reporting season (if no new year rally).
STXOSV ($1.165) - closed at $1.305 on 13-01-2012 [+ 12%]
Yangzijiang (93 cts) – closed at 99 cts on 13-01-2012 [+ 6.4%]
I have what you can call an inverse stock idea. CityDev is going to take a beating and when that happens it might overshoot on the downside. I think it could become a compelling buy for holding until a rebound in 2H. Just my 2 cents, based on a lot of analysts' top sell being CityDev.
Deutsche Bank has just put out a report with its top Sell being City Developments & target price of S$8.50).
Current price is $9.27 down 5 cents. Valuations are expensive, at the tightest discount to NAV in the property developer sector, at 18%.
City Dev is the most vulnerable to a weakening residential market, with Singapore residential accounting for 41% of NAV and every 10% decline in residential values resulting in a 3.6% drop in NAV.
Its unsold high-end residential inventory has been growing, with the risk of a further delay in planned luxury launches.
Its balance sheet position, however, remains strong, with net gearing at 22%, which should position it favourably for acquisitions, while locked-in residential pre-sales should sustain near-term earnings visibility.
Qingmei- bought at 0.144. now at 0.161. 19% increase ARA- bought at $1.15. Now- 1.41. 22% increase Yangzijiang- bought at $96cents. now $1.165. 21% increase
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