Shares & Derivatives
Changes to my stock pick / portfolio stocks….following a company visit yesterday
By Kevin Scully-Financial Blog  •  September 27, 2009
I visited AEI Corporation yesterday.  The meeting confirmed that the stock is clearly undervalued with its current market capitalisation almost totally backed by cash.  FY2009 half year profit of S$3.2mn means its back on the profit trail after a S$5.7mn loss in FY2008.  The latter from a write-off of one of its investments and also a marking to fair value of its aluminium stock to market.  Its not a strong growth play but you can expect annual organic growth of 10% per year until they do some acquisition.  The historic dividend yield of 1 cent is likely to be restored (they paid 0.75 cent in FY2008 when they made a loss) which gives a running yield of 7.7% at 13 cents.  The only problem is its small size and low liquidity.  But the current discount to NTA which is mainly cash is not reasonable.  For more on the reasons and my price target check my stock pick section. Because I am adding AEI Corp, I am also removing ST Engineering from the stock-pick list today. Read more...
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By Kevin Scully-Financial Blog
Kevin began his working life in the regional and economics division of the Ministry of Foreign Affairs. He then moved to the private sector analyzing equities before venturing out to start NRA Capital. After 25 years of watching stocks and living through financial disarray during the Pan Electric Crisis, the 1987 Crash, the Barings debacle, the Gulf War, Asian financial crisis - what can sub-prime do but add another scar to already bruised wounds. Ever since starting his blog, Kevin has been enthusiastically giving his personal views on the market. He discusses about equities, the market turmoil, and the broad economy.
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