Wednesday, April 2, 2014

Straco Corporation (S85) - My Very First Stock And Why I Choose It?

Straco Corporation Limited
As per my earlier post (click here to read more), I've shortlisted two stocks as my maiden investment and I am pleased to share that I've successfully secured one of it - Straco Corporation (S85).
Bearing in mind that I am considered newbie to investment, I am starting small and to some of you this might not even consider a portfolio ;-) In any case, we all need to start somewhere, some how.
So what I have bought and why I identified this stock as one of my value stock?

What I have bought?

Share Price : SGD0.85
Number of lots : 2
Total Investment : SGD1,160 (excluding commission and other charges)
Straco Corporation Limited

Why I invest it?

Following are the key reasons that I bought the stock (basing on the FY2013 figures):
a. Industry : Tourism factor in China (administered 2 aquariums in China)
b. Strong revenue and profit growth (32% and 73% respectively in 2013)
c. Strong Cash flow and profit margin (46.81%) 
d. Steady improvement of Earning Per Share (EPS) (73% in 2013)
e. ZERO debt (Conservative debt)
f. Return Of Equity (ROE) of 23.75% (above good investment range of 12% to 15%)
g. Return of Asset (ROA) of 16.81% (above good investment range of > 7%)
h. Price-Earning (PE) Ratio of 12 (fairly priced)
i. Declared 2 cents per share of Dividend (Dividend Expiry Date : 6th May 2014)
Straco Corporation Limited
What is your take? I am sure there are many shares investing gurus out there, if you chanced upon this post, do share your view on the stock.

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