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SGX Smallcaps 2013 – Killing it in January

Back at the tail end of 2012, I started a portfolio of 20 Singapore small caps that I find interesting and track them throughout the year. These posts are updates of the results.

You can actively view this portfolio at a live Google spreadsheet here.

The first month was out of this world. Quantitative statistics have shown that if January ends higher, there is a large probability the year will end higher.

The STI ETF rose 3.1% during this period. My selection of small cap outperformed at 9.5% during the same period.

The carries of the portfolio for the month have been Tai Sin, Sheng Siong, CMPacific, Parkson, Lee Metal, Nam Lee and Boustead.

Due to work I wasn’t able to move in. Any I feel I missed badly? Probably Parkson and Neratel.

Essentially out of all of these, Parkson, Sheng Siong are the ones whose value now has factor in much much growth. They will be considered overvalued unless they grow at a high tenth multiple. If you think they have the capability to grow their cash flow so much consistently then it’s a buy now. Else we want to see more evidence of better cash flow and earnings.

Straco and Silverlake are the very high ROA/ROE companies that you buy after evaluating they are undervalued due to some crazy moat. In Straco’s case, barrier to competition and link to state-own enterprises. Silverlake operates in an industry where switching costs are high away from maintenance.

NeraTel is a miss and should have gotten at 40 cents. But would really like to see if their business earnings profile have changed so much.

The so call value now is the down and out semi conductor plays UMS and Micro Mech yielding at 11% and 6.9% respectively. These are really “if they can survive with a decent yield in bad times, how will they be during good times” stocks.

I run a free Singapore Dividend Stock Tracker available for everyone’s perusal. Do follow my Dividend Stock Tracker which is updated nightly  here.

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Phileas

Monday 4th of February 2013

Just my own opinion, the outcome can be different when use real fund to invest in the market. SGX small caps pool is not big.

Drizzt

Tuesday 5th of February 2013

hi Phileas, not sure what you mean a fund of 10k per stock is rather insignificant!

SnOOpy168

Saturday 2nd of February 2013

Impressive. Thanks for sharing.

Drizzt

Saturday 2nd of February 2013

Welcome back Snoopy. Long time no see.

James

Saturday 2nd of February 2013

The PE, PB and dividend yield ratios of UMS look attractive, but I think the semi-con industry in Singapore is slowly dying off.

Any thoughts on UMS?

Bluekelah

Saturday 15th of June 2013

James : UMS DOES NOT PRODUCE WAFERS, it makes the machines/components that produces wafers...

Actual wafer fabs are just moving overseas...

Drizzt

Saturday 2nd of February 2013

Yes UMS looks attractive and is a semi con. but sometimes lets look at the background story of it. UMS is a play towards Applied Materials, a US provider to TSMC, Samsung and Intel with a sturdy moat.

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