Buy: Hiap Seng
Before I start, here is the prove ("God!").
And so, a little background, Hiap Seng is a company involved in local oil & gas fabrication. With the impending completion of reclaimation projects in Jurong Island, coupled with the $3b investment from Shell on a plant, and seeing the number of plants on Jurong Island double over the next few years, there is room for growth for Hiap Seng, and of course, Hiap Seng's shares. In fact, Technics Oil & Gas is a direct competitor to Hiap Seng.
Analyst reports indicate that Hiap Seng's order books are fully booked for the next 3 years, but they have recently completed a capacity expansion project.
HY2006 Results show an increase in profits attributable to equity holders of 237.9%. The EPS growth is pretty close as well.
Likewise for their FY statements and forcasts, 2007 F looks at a 169% growth in EPS, and supported by increase in sales and profits.
"EPS EPS EPS. It shows the profit growth vs shares in the market. Follows the ancient supply and demand rule"
With the recent sudden surge in interest, it might be a good time to jump into the wagon. And on top of that, with such an upside to Hiap Seng's shares, we are looking at a possible $1 stock right now.
"Sustained interest is important"
The only downside to Hiap Seng's shares? Its listed in the Sesdaq, and my other share that is listed in Sesdaq (Techics Oil & Gas) isn't doing too good.On top fo that, both shares are in the smae industry. I'm also unable to find % shares held by institutional investors.
"Institutional investors are important for the good of the share. They control the number of floating shares as institutional investors don't engage in daily trade"
If Hiap Seng doesn't do well, I'm out of Sesdaq for life.
Buy, with target of $1.00.
Vested $0.785 at 1 Feb 07, 0910hrs
9 comments:
Hi there,
Been reading some of your posts with interest. Just curious, how do you identify which companies to invest in and how much fact-finding do you engage in before you finally make the purchase ? From your blog posts it seems to be mainly from analysts' reports.
Thanks !
hello, with the help of analyst reports, i see if the forcasts (and historical) earnings fit my model. i also dig up quarterly and yearly reports from SGX.com and information from their website.
In a nut shell, I basically am inclined to earning and EPS growths of 30% or more per quarter (qoq), improving assets vs liablity, institutional investor support just to name a few.
in case you were wondering i'm just echoing the analysts, i'm not. Analysts use P/E ratio most of time time. I don't use it that extensively. I use EPS growth. Its just a model i adopted. And has served me well.
One example is MMI. I dont recommend investing in it. It doesn't have growth. But analyst call it cheap. cause of the P/E ratio.
Thanks for recommending a more affordable stock! Haha..I only trade cash, and not margin. Congrats to all your gains..and you shouldnt be bothered with others who challenge. Your track record (albeit a minor hiccup in TechOil) speaks for itself.
In general, what's your time horizon?
Cheers!
haha thanks for all your support.
in general my time horizon is supposed to be 1 year.
however, i've got to say i've been lucky to find these shares at the right time.
time horizon as in the time you invest to the time u draw urself out of the stock?
Hi There
I came across your blog from the market talk.. I bought Hiap Seng too but am frustrated that its dropping, bought it at 0.795, whats your sincere advise...?
my sincere advise.
I'm gradually moving towards the fundamental long term investment model. After reading several stats and articles, maybe i shouldn't trade that much after all. will share my thoughts after i sort out my thoughts.
Hiap Seng is a good stock to hold. however, a -7% limit should be set to save your ass. Its not yet reached -7%. Hold it till it does.
the problem with most people is to want profit too fast. Relax. Fundamentally strong companies wil do well in a medium term.
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Essential blog post for the traders of market...,whom so ever wants to buy the shares of Hiap Seng and, therefore gets Best SGX stock picks for beneficial investment.
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