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?

Cheers!

 

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.