*Drum Roll* Gem Stock. United Overseas Australia ($0.345)

I know...its about time I revealed the stock I have been speaking of so fondly. I do apologise to all that I have kept this to myself for so long. Trust me, it is really difficult to buy this stock, JUST TRY!! I dare you! To be honest, I have not been able to buy much of it so far and I did buy it at a price that is higher than the current $0.345. No choice, as I had to pay a premium to get a large enough stake. I have not been able to collect as much of it as I would have liked but I am fine at this stage.

So what is so special about this stock? Do not be deceived by the name of the stock, it has absolutely no interest in Australia. The only thing is, it is currently dual listed in Singapore and Australia, with the Aussie listing as the primary one. The company listed in 2007 in the midst of all the fear in the market as investors sold down stocks as if they were stained with leprosy. The ipo offer price at the time was $0.38 and it had a net asset value of $0.33 so it was priced at a modest premium to its NAV. Notice that the currency I am speaking of here is in SGD.

What does the company do? You may ask. Ok it is basically a property developer and a reit manager. It currently manages a very very good reit in Malaysia called UOA Reit. It also owns approximately 46% of the Reit. The company is very specialised, owning mainly prime land in KL which personally, I feel is extremely undervalued compared to other cosmo cities in Asia. I am not going to list out all the land holdings they have but I assure you, they are all very well located in prime locations (Bangsar).

But owning land and managing a Reit does not mean its a good company right? I like the fact that they are managing a Reit, which means they have a ready buyer for their property developments in the commercial and retail sector. Secondly, I like the track record of the company. In their latest profit guidance, the company stated that they will be reporting profits in the region of AUD$110 million. Which means that it is currently trading at 2.3 times current year p/e. Crazy? Hahaha I think not. The company is going to rake in profits of SGD$138 million when their market cap is no more than SGD$320 million.

Some may wonder, why did I start this posting by stating the nav during the ipo period. Ok, now comes the good part. The current nav is $0.59, so that means the company has managed to grow its assets through the past 2 years of financial crisis by almost 80%. That is just taken from the interim report and not the full year report. I fully expect it to rise to $0.63 nav by the time the full year report is released in Feb or March.

The interim dividend was declared at $0.005 cents and there will be a full year dividend which I am going out of my way to say should not be less than $0.015. Which will bring the full year dividend yield to 5.7% at current prices. So if you still need a more convincing story, I really think you should stick keeping your money in the cookie can and stick it under your mattress.

Currently, I am holding almost 50% cash and looking to deploy it. I have sustained some losses during this market but I am still buying this beautiful company. Those people who know me will know that I will always have new stocks to recommend. So as a preview to all, I will say that I am currently looking abroad for opportunities and have identified a possible 4 bagger.

Ok thats enough preview for one day. To reiterate my current top picks, Auric and UOA, buy with confidence, buy with conviction. Trump Dragon has been my favourite for some time, but I have taken my profits off the table for this one, however that does not mean I will not get back into it.

Have to go to bed now, my mum is complaining about my blood pressure....considering my age, that is just a disgrace. But thanks mum!

Best,

SVI