YEAR TO DATE, our Readers’ Portfolio continues to do exceedingly well relative to the market benchmark, the Straits Times Index (STI).  

Despite the heavy storm of correction in recent weeks, the portfolio (in which all stocks are given equal weightage) is down only 0.8% - while the STI is down 4.8%.

The NextInsight Readers’ Portfolio is made up of 28 stocks highlighted by readers in our forum thread Stock PIcks for 2010 towards the end of last year.

These are mostly small- and medium-cap stocks, some of which look either undervalued or are poised for strong earnings growth.

The portfolio experienced the sharpest downward pull from two stocks: Sinotel (-25%) and Oceanus (-23%).
 
The three top stocks:

* TECHCOMP HOLDINGS: This stock has gone up 30%, and its full-year results will be announced in two weeks' time.

Richard Lo, President, Techcomp.

To recap, the stock had a record US$39.8 m revenue and record US$1.4 m profit in the first half of 2009.

Its second half typically contributes more revenue and profit (the latter, 80% of the full-year's).

Techcomp is one of a kind on the Singapore Exchange. It manufactures and distributes scientific equipment, mainly for the China market.


* BROADWAY: Up 27.2%.

In recent months, it has attracted a sharp jump in market interest. The stock is a play on the HDD sector recovery. Standard & Poor’s initiated coverage of the stock last week, after Broadway joined a scheme where it pays $12,000 a year for S&P analyst coverage.

S&P estimated Broadway would register a net profit of SGD32.5 m (+9.6% YoY) in 2010, reflecting the strong demand for HDDs amid the uptrend in PC sales.

S&P figured that Broadway's shares (77.5c) are trading at around 5.4X current-year earnings, which is lower than its peers.

* HIAP HOE: Up 15.5%.

This niche property developer (projects include Cuscaden Royale and Oxford Suites) last week reported a 319.5% jump in net profit to a record $34.3 million for 2009.

It proposed a first and final cash dividend of 0.25 cent per ordinary share – which is a paltry 0.42% dividend yield based on the recent stock price of 59.5 cents.

NextInsight reader 'sumer' (obviously someone who does his homework) started a thread on Hiap Hoe.