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

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)

 

 

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)

 

 

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.

 

Cheers!