Author: The Little Snowball

Koda (BJZ): Building a Commune-ty |Current: $0.70|Target: $0.99|Upside: 41%|

Introduction After close to 10 years of lacklustre performance, Koda is on the cusp of a multi-year growth trajectory mainly driven by the 3rd-generation of the Koh family who turned the company around by streamlining operations and divesting non-core assets. At S$0.70, Koda is valued at S$57.6m. With a trailing P/E of 8x, I believe this company is undervalued given its robust balance sheet and clear growth catalysts. The Business Koda was founded in 1972 by Koh Teng Kwee and was listed in 2002. The group specializes in household furniture as an original equipment manufacturer (OEM) and original design manufacturer...

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Avarga Limited (U09): 1Q18 Results Review, Hidden Asset

Introduction It has been more than 2 weeks since Paper, Power, Taiga was written. Since then, both Taiga and Avarga released their 1Q18 results. I thought it would be good to review their results and consolidate new developments into this article. Taiga’s share price has since risen 16.7% from C$1.37 to C$1.60. On the other hand, Avarga has remained unchanged at $0.25. If we include the recent dividend of $0.005, the gain would be 2%. 1Q18 Results Review Taiga  1Q18 Results Taiga’s 1Q18 results exceeded my expectations, I was previously forecasting 10% sales growth with 8.4% gross margin. Actual sales growth...

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Avarga Limited (U09): Paper, Power, Taiga |Current: $0.25| Target: $0.42 |Upside:+69%|

Introduction  Avarga is an investment holding company focused on creating value through strategic investments. The Group has businesses in paper manufacturing (paper), power generation (power), distribution of building materials (Taiga) and property investment holding. Founded in 1967, the Group is headquartered in Singapore, with business operations and assets in Malaysia, Myanmar, Singapore, Canada and the USA. At S$0.25 per share, Avarga is valued at S$219m. With a trailing P/E of 13.3x*, I believe this company is undervalued and has substantial upside potential. *due to the note restructuring on 17 Nov 2017, for accounting purposes, one-off non-cash extraordinary items were expensed off (AR17,...

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My Insights on Riverstone Holdings (AP4)

Riverstone Holdings (AP4) to-date is still by far one of the best companies I have encountered on SGX. This article serves as a follow-up and a deeper analysis into Riverstone Holding. Feel free to read My S.W.O.T Analysis For Riverstone Holdings (AP4) before proceeding with this article to gain an understanding of Riverstone Holdings. Recent Updates & Insights Extended Expansion Plans Till 2019 Spike and recovery of Butadiene prices 1Q to lead the charge Extended Expansion Plans Till 2019 The recent move to ramp up productions even faster (From 1b per year to 1.4b per year), and extending it by...

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My Bull Case For Sitra Holdings (5LE)

Introduction After many years of running losses, Sitra is finally showing signs of a turnaround. In FY16, Sitra turned profitable with positive operating and free cash flow. This is expected to continue in FY17. At S$0.016 per share, Sitra is valued at S$12m (751.2m shares outstanding).  I believe this company at current valuations provide significant upside with minimal downside. Sitra could potentially be worth S$0.031 per share if management successfully unlocks the value of its two major non-core assets: Sawmill Factory in Surabaya, Indonesia  – worth S$13.8m ($0.018 per share) 10% Stake in World Furnishing Hub (WFH) – worth S$9.5m (S$0.013...

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My S.W.O.T Analysis for Hanwell Holdings (DM0)

Introduction It’s the Great Singapore Sale, a lot of selling down of penny stocks in the market, but it also represents an opportunity to catch some stocks on fire sale. Sometimes things in a business change so fast that its share price doesn’t do it justice. For starters, Hanwell’s Cash per Share is $0.3069 and current share price stands at $0.2800. How could I not look into this company when it’s practically free? Strengths Stable Business Strategic Investment Paying Off Stable Business Basically, Hanwell is into two businesses, Consumer Essentials and Strategic Investments. Under Consumer Essentials, there are popular brands like Beautex...

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AEM Holdings (AWX) Revisited Again

Introduction AEM rose another 76% over 3 trading days since “AEM Holdings (AWX) Revisited” was published last weekend. In aggregate, AEM has risen 364% in 4 months since the first article, “My Bull Case For AEM Holdings (AWX)“, was posted. At S$2.57 per share, AEM has a market cap S$167m. With a ttm P/E of 19.5x, does AEM have further upside? Let’s find out…   What has transpired this week? Q1FY17 results released and exceeded my expectations Management provided a revenue and profit before tax (PBT) guidance for 9M17 of S$142m and S$17.5m respectively. Maybank Kim Eng wrote a non-rated report CIMB raised target price...

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AEM Holdings (AWX) Revisited

Introduction AEM has risen 164% in less than 4 months since “My Bull Case For AEM Holdings (AWX)” was published. I have to admit that the rate and extent of the rally exceeded my expectations; which nonetheless is a good thing. I was fortunate in the sense that the general market (STI) started to rally strongly at the start of the year till early April and that the semiconductor industry industry as a whole grew much stronger than many had expected. At S$1.495 per share, AEM has a market cap S$97.2m. With a ttm P/E of 20.9x, does AEM have further upside? That’s...

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My S.W.O.T Analysis for Chasen Holdings (5NV)

Introduction It is not common for me to be writing on penny stocks like Chasen, but it caught my attention with its spike. I got curious and started looking for more information regarding it and found some interesting facts. Coincidentally, one of our readers dropped us an e-mail and requested for a write-up on Chasen! For starters, Chasen is trading at a price-to-book ratio of 0.2198. The threat of a value-trap is real, but its recent spike from 0.027 to 0.041 gives us some possible indication of interest and revival of the stock. Strengths -Nil- Weaknesses Poor Net Profit...

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Simplify Your Research With 3R

Researching for your next stock? I always had the habit of researching into a stock, buy it and once I’ve profited from it, forget about it. I wonder how many of you do this as well. It’s as though the research material was one-use. Maybe it’s time to re-look at your old research! I thought it would be interesting to share with you on my thoughts about the famous 3Rs (Reduce, Re-use, Recycle) that can be used to finding your next stock to profit from! Reduce: Reduce variety. Would you rather be the Jack of All Trades or Master...

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My Bull Case For AEM Holdings (AWX)

Introduction When the new management (Lok Wai San & Albert Ng)  took over in 2011, they began a multi-year corporate restructuring process and invested heavily in R&D at the expense of short term pain (FY12,13,14 net loss was -S$1.38m, -S$4.07m, and -S$34.6m respectively). In light of recent events, it seems that the efforts of management has paid off and AEM is ready to rise from the ashes. The company turned in a profit of S$5.7m for FY15 and now possess tremendous growth opportunities over the next 10 years. This is due to its new flagship product (from years of R&D) known as the “high-density...

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Passive Income Is Overrated – Here’s Why

Passive income is overrated. Everybody is talking about passive income, and it is quite silly of me to swim against the current. But I feel that this is a topic that deserves more attention from the other standpoint. To put it out there, I’m not against passive income. But rather, something bigger, and something more important. I found that many supporters of passive income are supporting it just because the idea of passive income sounds good. Yet, the idea that I want to challenge is not whether passive income is good or bad, but rather, “Is it suitable for...

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Want To Be A Great Investor?

Everybody wants to be a great investor. I mean, who doesn’t, right? Living the high life, enjoying good food, travelling around the world. It’s so easy to sell the dream that investing is the way to go if you want to achieve those things. We all know the importance of investing, but question is, how do you begin investing if you don’t have any money to begin with? Investing is a lot about money making money. If you don’t have any to begin with, don’t even think about investing. Before you become a great investor, think about how you...

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Musings of a Young Investor: Lessons from Losses

“I have always found it profitable to study my mistakes” – from Reminiscences of a Stock Operator “Those who do not learn from history are doomed to repeat it” – George Santayana With that in mind, I decided that it would be a good opportunity to review my losses after investing in Singapore stocks for 3 years. Since tuition fees have already been paid, it would be wise to learn the lessons and avoid making the same mistakes. 1) Lippomalls [Loss: -3.50%] My first Singapore stock. Classic value trap. Picked this counter because it was providing one of the highest...

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Musings of a Young Investor: What is the Price of YOUR Financial Freedom?

Financial Freedom is the endgame of most if not all investors, including myself. To be able to live the lifestyle that you so desire on the passive income of your investment portfolio and never having to work again is indeed an attractive proposition. Financial Freedom allows us to be the masters of our destiny and designer of our own lives. However, there is a misconception amongst most young investors that one would require huge amounts of capital (i.e. above a million) to be able to live comfortably on the passive income the capital provides. Hence, I would like to shed some...

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