Happy New Year to all! Finally found some time to write a little on my blog. Since my last post, I have seen a couple more new followers and I wish to thank you for your support. Lets see if this blog can go for one more year. I like to set short term targets because Keynes once said, "in the longer term, we are all dead."
Hopefully, all of you had a great start to the new year. The year is starting off like how it ended 2010. Very bullishly. Santa Claus delivered the presents for Christmas and stayed till January. The Capricorn effect is starting, but the question is, is it sustainable? In December, the Dow only had 4 days of negative returns. Even though gains were only trickling in but it was sustained over long periods and weekly gains were registered for the whole month.
The purpose of this post is for me to write on my top picks for this year. I have so many ideas in my mind and that is really a curse rather than a blessing because you will have to choose between them.
1) KS Energy ($1.09): This is the laggard in the oil and gas services sector and I believe this year could be the pivotal reversal for this counter. It is the only true blue full provider for offshore services.
2) Singland ($7.53): This is a strong privatisation candidate. I think the struggle to gain control for UIC will probably end this year. Once that happens, Singland's future will be a lot clearer.
3) UIC ($2.55): The bidding war has just begun. Its 70 odd percent holding in Singland is something worth fighting for. We are talking about the largest landlord in the Suntec area. So it is worth looking at.
4) STX OSV ($1.15): Buy this. Finance costs have fallen dramatically. It is a market leader in its own field and I believe contracts will flow more freely this year.
5) Auric Pacific ($0.675): This is a company that will go through a transformation this year with its formation of a property investment arm. Lots of value here.
6) SGX ($8.52): I have said it so many times to my clients and I will reiterate. If the ASX deal falls through, it will be up due to more certainty of its ability to pay out its 4% dividend yield. If it goes through, it will be a bigger company with control of the largest commodity equity stock exchange in the world....what else needs to be said?
7) Citigroup: (US$4.90): Called for it last month and its already registering good gains. Its just the beginning. For those looking to pay for their kid's education, buy this one. No more share overhang, a great franchise in Asia and Latin America, trading below book. Nuff said!
8) APAC Resources (HKD$0.50): Do your maths. The sum of parts for this resource investment holding company is more than HKD$1 and they own a good stake in the largest tin miner in Australia. Way undervalued because Hongkies (did I spell it right?) are not into resource plays.
9) People's Food: I know! You must be wondering why I would keep calling for this stock when it has only risen 10% since my call. Well its because value will eventually shine through and when better than a time where food inflation is on the rise? I love this counter and the 2 billion RMB sitting in their books makes them very very attractive to me. Let me just share a quote with you. " Cash is a fact, profit is just an opinion."
10) Hotel Properties Ltd ($2.89): I really like this stock because I feel the stock price does not reflect its underlying properties value. I believe this is a bargain for this stock and with hotel room rates rising due to record tourist arrivals.
That rounds up my top ten picks as of the beginning of the year. Lets have a great 2011!
Best,
SVI
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