Friday, August 16, 2013

OSK-DMG'S Selection Of Small Cap Jewels For 2013

OSK-DMG'S Selection Of Small Cap Jewels For 2013
Friday, 16 August 2013 07:00

"The 2012 edition of our Small Cap Jewels made quite a splash. Over 70% of the stocks we picked made money, with the biggest companies making the most. Based on value-weighted averge, the returns were well over 60%."  -- Terence Wong, CFA, head of research, DMG & Partners.


osk_listjewels
OSK-DMG has recently released its 2013 edition for institutional clients (and it's not for sale).


Here are excerpts for 5 of the recommended stocks, the full list of which is in the table on the right:

> King Wan Corp: With its 9.4% expected yield, KWAN compares favourably against REITS' forward 6% yield. Furthermore, KWAN has a strong net cash position and no interest-rate risk. Our SGD0.43 TP is based on a 6.5% dividend yield, in line with Singapore-listed business trusts. -- Lee Yue Jer

> Food Empire Holdings (FEH):  FEH's main raw materials are coffee powder, sugar and non-diary creamer. Prices of Robusta coffee beans and sugar have tapered off from their highs. Drop in key raw material prices and a change in its Russian business model assisted the company in expanding gross margin from 45.4% in 1Q12 to 51.2% in 1Q13.

arabicaFollowing the footsteps of Super Group, FEH is building its own non-dairy creamer plant. The plant, located in Johor, will have an annual production capacity of 30k tonnes. Our channel checks reveal that a tonne could fetch ~USD1,500 in the market. Our projections take into account capacity utilisation of 70% ie 24.5k tonnes in 2014 with 30% of it earmarked for internal use. The remaining 70%, or 17k tonnes, can be sold at an average selling price of USD1,500 and generate ~USD26m in sales. -- Melissa Yeap

> MTQ Corp: MTQ has a low P/E, high growth, attractive dividends and strong cash generation ability. We value the stock at SGD2.20 based on 10x FY14F EPS. To account for its low liquidity, our target P/E is in the middle of 8x-12x range we typically use for small-cap stocks. Except for liquidity concerns, we believe MTQ deserves a higher valuation for its 28% earnings growth. For the long-term investor unconcerned about short-term liquidity, MTQ is a rare gem that checks all the boxes on fundamental strength. -- Lee Yue Jer

> GuocoLeisure: We value GLL using a sum-of-parts methodology to best capture the disparate nature of its various investments. Our valuation yields a SOTP of S$1.79. We apply a 30% holding company discount to derive a TP of S$1.25. In our view, GLL offers a compelling asset play with imminent catalysts from restructuring within the group and greater transparency on its hotel assets. -- Goh Han Peng

> Hi-P International: Buy on HIP's recovery story. We believe the worst is behind us now. We expect HIP's new organisation structure and more diversified customer base will boost the Group's order outlook. Reiterate Buy, with a SGD0.96 TP, based on a blended 13.5x FY13-14 P/E (-1 SD to its three-year historical forward P/E). -- Edison Chen


Source/Extract/Excerpts/来源/转贴/摘录: http://www.nextinsight.net/
Publish date: 16/08/13

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Warren E. Buffett(沃伦•巴菲特)
Be fearful when others are greedy, and be greedy when others are fearful
别人贪婪时我恐惧, 别人恐惧时我贪婪
投资只需学好两门课: 一,是如何给企业估值,二,是如何看待股市波动
吉姆·罗杰斯(Jim Rogers)
“错过时机”胜于“搞错对象”:不会全军覆没!”
做自己熟悉的事,等到发现大好机会才投钱下去

乔治·索罗斯(George Soros)

“犯错误并没有什么好羞耻的,只有知错不改才是耻辱。”

如果操作过量,即使对市场判断正确,仍会一败涂地。

李驰(中国巴菲特)
高估期间, 卖对, 不卖也对, 买是错的。
低估期间, 买对, 不买也是对, 卖是错的。

Tan Teng Boo


There’s no such thing as defensive stocks.Every stock can be defensive depending on what price you pay for it and what value you get,
冷眼(冯时能)投资概念
“买股票就是买公司的股份,买股份就是与陌生人合股做生意”。
合股做生意,则公司股份的业绩高于一切,而股票的价值决定于盈利。
价值是本,价格是末,故公司比股市重要百倍。
曹仁超-香港股神/港股明灯
1.有智慧,不如趁势
2.止损不止盈
成功者所以成功,是因为不怕失败!失败者所以失败,是失败后不再尝试!
曾淵滄-散户明灯
每逢灾难就是机会,而是在灾难发生时贱价买股票,然后放在一边,耐性地等灾难结束
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