Hey brother, what are your best stock ideas?

Details: The NextInsight Team; 25 December 2011

THE EUROZONE crisis is far from being hammered into submission, no thanks to the divisive politics there. The US economy, however, is looking up. So is the US stock market.

Let's imagine: If you received a hongbao for $50,000 today, what stock(s) would you buy? Let's go one step further: Imagine that it's a riskless bet: If the stock goes down, you don't suffer any loss.

So, you have all the upside to keep but nothing to lose on the downside. In this fantasy land, what stocks would you buy?

Why this mental game? The key thing is it enables us to overcome our risk aversion and focus on hunting for bashed-down stocks that have sound fundamentals and a good story in terms of its potential for capital appreciation. Game? Share your stock picks below......

You may also be interested in:

YANGZIJIANG SHIPBUILDING: Orderbook is great, profit is great, stock price too. Hey, how about giving great dividends?

CHINA SUNSINE: Wins Most Transparent Company award and, hey, 75% of market cap is cash

UNI-ASIA: Charter rates surprisingly strong in 3Q. Why? Will they stay that way?

Glove stocks have soared. They are about to get another boost?

STRACO: Why I bought shares when they fell recently

Hong Kong: 5.8 m tourists a month, where will they go now? S'pore?

Comments

#19 Falken 2012-01-18 08:46

TREK 2000 -- The Wi-Fi enabled card that Trek invented is being re-packaged as Toshiba's FlashAir, a new must-have for cameras. Perhaps 1H2012 target price is 45 cents which is nearly 38% upside. Just my 2 cents' worth

#18 joseph 2012-01-06 07:18

AEM ... reasons:
1.nav 11.3, current price 5.5
2.forward pe 3(estm)
3.absolute low price.
4.major shareholder been buying at 6cts
5.certainty of exit from watch list barring
unforseen circumstances.
6.current shareholder very positive about
result for year end dec 2011 result.
7.clearly a turn around company
8. its back-up by 5cts cash per share.

#17 June 2012-01-02 06:25

Jason: I agree that on FA, Metro (67 cents currently) is a very juicy fruit to pluck. Trouble is, as a stock, it has been a disappointment year in, year out for long-term investors who in the end can only count the dividends as their measly reward. It takes a lot of patience to continue holding Metro.

#16 jason 2012-01-01 06:16

I will buy Metro...high NAV and high cash/share...

Cash/share might be higher than current share price...please check, I think around there...

Rental from retail will not be affected much compared to residential in china...

#15 hk 2011-12-30 06:29

i will buy suntecReit, with current price of 1.08 the dividend is about 9%

#14 joseph 2011-12-28 19:35

Ocean Sky ...
reasons 1) current pe 4.3 forward pe 3.1
2) nta 22.16
3) dividend yield 14.5
4) a singapore based company
5) cash backing per share 8cts
6) 52 weeks high 22cts, low 10cts,
therefore low risk
7) company been around since 2003

#13 Gin 2011-12-28 08:16

Hi CK
btw, Jasper is still making losses :sad:....but I think losses narrowing. Also, Morton Bay's loan to Jasper is re-paid by issuing of shares back to Morton Bay at about 10 cents per share. So at 6 cents, I think this stock is worth a try.

#12 Gin 2011-12-28 07:53

Hi CK
Jasper, formally econ international, is just for fun cos is cheap. 6 cents. Major shareholder is Morton Bay (holding) Pte Ltd, holds about 85%. Recently, place out to 15m shares to hygrove investment at 9.6 cents. Price now is abt 37% lower than what hygrove has paid for, so why not?
As for United Env, I believe market in China for water treatment is still in the infant stage, should have high potential unless....scand als again. There are also quite a number of articles in nextinsight featuring this company.

#11 dzwm87 2011-12-28 06:43

Since it's fantasy and there is no downside risk, isn't it obvious to go for penny stock at $0.001? Any upside will inevitably doubles the money..

flaw of the question as fantasy of nil downside isn't going to exist. with such assumptions, no point looking for undervaluation or technical/funda mental analysis

// thevaluethought .wordpress.com

#10 swiftlet 2011-12-28 05:19

aspial and fragrance are related ..... they will rise when market turn up.....

#9 Tweetie 2011-12-28 04:43

I would buy Yangzijiang Shipbuilding (93 cents) for its dividend. AmFraser, which has been covering the stock very closely, expects 6 cents final dividend. It's higher than the 4.5 cents last year. Let's say it's 6 cents. The yield is 6.5%. Enough to satisfy -- while waiting for capital appreciation, which however may not come so soon. For some reason, the market is worried about YZJ's European customers.

#8 CK 2011-12-28 02:05

Hello Gin, why Jasper and United Envirotech? I am also looking at Utd Enviro (and Hyflux)

#7 Tango 2011-12-27 13:36

Foreland, Noble and UMS

#6 zen 2011-12-27 13:31

MIDAS and HYFLUX . Simply too cheap and undervalued to ignore now

#5 Gin 2011-12-27 11:42

Yoma. Myammar opening up its market, potential gain in property and influx of tourist will make the stock attractive since it is also in the hotel business. Buy 10 lots play play

Other guess: Jasper and United Env

#4 Jared Seah 2011-12-27 10:42

Since it's fantasy trade with no loss, I would DREAM BIG! I'll buy the SIMSCI with 10 to 1 leverage with the $50,000 - around $500,000 worth of futures position. How's that for a conviction trade?
Why?

1) I am a lousy stock picker.
2) I believe in Singapore.

Disclaimer: I vested interest since I am a Singaporean

#3 Red Bull 2011-12-27 09:41

I will buy WORLD PRECISION MACHINERY. The fact that it pays a big chunk of its earnings assures me that the business is real, the cash is real. In its 9m result, its earnings went up 46%. I hope the dividend will go up 40% -- to 16.6 rmb cents = 3.2 SG cents = 7.2% yield on current stock price of 44 cents. Since my purchase price was in the 20s during the Global Financial Crisis, you can imagine my sweet return is double-digit. Apart from dividend, a strong growth will sooner or later lead to more capital gain on the stock.

#2 Max 2011-12-27 09:31

I will buy:
1) Wing Tai, NAV @ $2.49, price is $0.96 huge discount. Pays annual 3 cents dividend with special dividend from 1 to 4 cents. i.e(4% to 7.3%). I look favourably at its Retail sector with brand names like Adidas, Top Shop, Top Man, G2000, Uniqlo, Dorothy Perkins etc. With tourists and population set to grow, Shoppers will set to increase.

#1 Simple Guy 2011-12-27 07:19

I will buy MIDAS at between 0.26 ~0.32. This is well run company. Simple logic, the market is now too pessimistic on China train.The stock is totally sell down. It had existing contracts hence it is still profitable for the next 2 or three years for dividend payout even without new contracts. You get paid while you wait. In my opinion, the industry will resume it expansion sooner or later. This is because the rail system is the backbone of china economy.

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