Thursday, February 26, 2015

2015 Stock Picks by The Edge Singapore - What Do You Think?

I am not an hardcore reader of The Edge Singapore but 2 days ago I grab the latest copy of the weekly magazine because its Cover Story, "10 Stocks for the year of goat" caught my eyes (and the cartoon too). Of course, I am not saying that we should follow blindly on the recommendation and chiong, but I will use this as a source to dig further. 

The Edge Singapore did the similar recommendation last year (2014) and out of the 10 recommended stocks, 8 of them have positive changes (with the exception of Lyxor UCITS ETF MSCI Europe and ST Engineering). Their average return (with dividends reinvested) is 24.1% (higher than the ST Index of 15.1%).

Here is the Top 10 Stocks In 2015 from The Edge Singapore, I've re-produced the key indicators as well as the reason why they like it and the potential risks:
1. Ascendas India Trust (CY6U.SI) :
Estimated PB Ratio : 1.5 
Dividend Yield (%) : 5.5
Last Traded Price : $0.935
Industry : REIT - Diversified
Why The Edge Like It : India is reforming, rupee is stabilising
Potential Risks : Risk-free rates might rise
2. China Aviation Oil Singapore Corp (G92.SI) :
Estimated PE Ratio : 7.8 
Dividend Yield (%) : 2.8
Last Traded Price : $0.74
Industry : Oil And Gas
Why The Edge Like It :International growth, low expectations
Potential Risks : Chinese policy changes, corporate governance

3. Guocoleisure (B16.SI) :
Estimated PE Ratio : 19.4
Dividend Yield (%) : 2.2
Last Traded Price : $0.95
Industry : Lodging
Why The Edge Like It :Rejuvenation and expansion plan could boost earnings
Potential Risks : Need to execute well

4. Mapletree Logistics Trust (M44U.SI) :
Estimated PB Ratio : 1.3
Dividend Yield (%) : 6.1
Last Traded Price : $1.23
Industry : REIT - Industrial
Why The Edge Like It :Play on global trade upcycle
Potential Risks : Risk-free rates might rise

5. Sembcorp Industries (U86.SI) :
Estimated PE Ratio : 9.8 
Dividend Yield (%) : 1.2
Last Traded Price : $4.24
Industry : Conglomerates
Why The Edge Like It : Play on oil price recovery, continued regional investment
Potential Risks : Oil prices could fall further

6. Sheng Siong Group (OV8.SI) :
Estimated PE Ratio : 22.7
Dividend Yield (%) : 4.0
Last Traded Price : $0.74
Industry : Grocery Stores
Why The Edge Like It : Boost from 24-hour operations, new stores
Potential Risks : Stock isn't cheap

7. SIA Engineering Co (S59.SI) :
Estimated PE Ratio : 24.6
Dividend Yield (%) : 4.5
Last Traded Price : $4.23
Industry : Air Service - Other
Why The Edge Like It : Potential rebound from depressed levels on travel and trade
Potential Risks : Structural issues from efficient planes and engines

8. Singapore Exchange (S68.SI) :
Estimated PE Ratio : 25.7
Dividend Yield (%) : 3.4
Last Traded Price : $8.20
Industry : Asset Management
Why The Edge Like It : Play on market volatility
Potential Risks : Stock isn't cheap

9. Singapore Telecommunications (Z74.SI) :
Estimated PE Ratio : 17.4
Dividend Yield (%) : 4.1
Last Traded Price : $4.30
Industry : Infocomm Technology
Why The Edge Like It : Regional associates doing well
Potential Risks : Tough to outperform because of weight in the index

10. Starburst Holdings (40D.SI) :
Estimated PE Ratio : 10.41
Dividend Yield (%) : NA
Last Traded Price : $0.585
Industry : NA
Why The Edge Like It : Higher defence spending in the region
Potential Risks : Stock has already risen strongly

Personally, I will be focusing on REITS and dividend income, hence, will dig further on counter #1, #3, #9 and #10. As for the rest, I am of the view that they are either too expensive now or too low in their dividend yields.

I believed many of your are vested in some of the above stock(s), what do you think about their recommendation?

Disclaimer : This post is just for sharing and not should not be view as recommendation to buy or sell any of the above-mentioned stocks. Always DYODD.


  1. Hi Richard

    Just curious, why are you focusing on Reits starting this year ah?

    1. B : actually I started to learn more about REITS last year and thought it would be a good source for dividend income source, hence thought of starting it this year, the first REITS in my watch list is Lippo.. I am aware of the potential increase of interest rate in the mid year by affect the REITS hardest but there are so many other factors can affect any other business ;-)

  2. Replies
    1. CW8888 : Finally, you are back in giving ur valuable comment on my post ;-) Errrr... the Dividend Yield is kind of low for Semb Corp lol

    2. CW8888 : Just saw your post on the similar topic... now I know why liao... lol

  3. Hi Richard,

    I'm vested in 2 out of the 10. Very interested in Sheng Siong, but feel that is it overvalue to my valuation.

    1. David : good for you.. Ya, I also think that SS is already quite expensive now

    2. Uncle rich and David, SS still got room to rise , ceiling is possibly .90 above analysts expectations provided the china expansion goes smoothly and that the FW dorms biz is earning more and more ;)

    3. Ken :I know u jeep this counter at much lower price.. Hope u got ur multi-nagger soon ;-

    4. Just my 2cents....

      China is not an easy market for supermarket/hypermarket. I think Walmart and Carrefour are not doing fantastic there. I visit China very often and I visit their supermarkets. Comparing their local chains, and these 2 giants, the crowds and long q at the cashiers are so much more. I'm waiting for them to report their result from China to determine my position. Of course, by then, I will not have my multi-bagger. Time is not on my side, I prefer to be safe than sorry.

      Wish you all the best!

    5. David : Thanks for providing your "real life experience" kind of insights..

  4. Thanks for the marvelous posting! I certainly enjoyed reading it, you may be a great author. I will be sure to bookmark your blog and will come back sometime soon. I want to encourage you to continue your great writing, have a nice evening!

    1. Stock market trend : thanks for dropping by and kind words! Appreciated that..


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