Using their software to sieve out stocks. These are the 2 stocks that I chanced upon.
1. United Engineers :
They are a construction firm that also provides other value added services to the construction job. One of their sample project is the Park Central at Ang Mo Kio. I am looking at this due to its gross undervalued share price. And the potential of more HDB housings popping up at Punggol and Seng Kang!
These are some ratio that I took note of based on their price of $1.74 :
- Market Capitalization : SGD 400.9 million
- Gross Profit Margin: 22.6%
- Price to Book ratio: 0.5
- Price of 1 stock / Amount of cash company is currently holding per share: 0.5
- Dividend : 3.46%
Its a shipping firm in essence. I am looking at this, because the Baltic Dry Index has been on the rise recently, but there has been no movement in shipping stocks. The Baltic Dry Index is actually a leading indicator of economy activity, as it measure international shipping prices of various dry bulk cargo daily!
SOO..if its increasing, it means economic activity should be picking up. With greater demand for ships, and the fact that you cannot build more ships overnight, the shipping industry will make more $$. On the other hand, if the economy does not pick up, it will mean that they will suffer great losses. Moreover, Rickmes Maritime is having a ship's contract due in the next 4 years, though most of its other ships have long term contracts ( A key risk in my opinion)
These are some ratio that I took note of based on their price of $0.385:
- Market Capitalization : SGD 158 million
- Price to Book ratio: 0.33
- Price of 1 stock / Amount of cash company is currently holding per share: 0.1
- Dividend : 27.88%