As 2013 ended and after receiving my end of year bonuses, I guess it's quite unusual for a lady like myself to spend on undervalued shares than on branded goods as a form of reward. I find a truck lot of satisfaction knowing I'm putting my money to work & that I'm a tad bit closer to achieving my dream of traveling the world. I never fail to smile whenever a close friend of mine drops me a text giving positive feedback about my blog. It re-assures me of what I'm doing though somewhat unconventional and a little nerdy. In any case, I hope that my blog inspires and motivates my readers to also pursue their own dream no matter how far off it may appear to be.
Added positions to Tat Hong, Neratelecommunications and Popular.
Tat Hong is a supplier of cranes and heavy equipment and boasts to be one of the largest crawler crane company in the world, supplying cranes and heavy equipment to various industries. Operations in our own homeland and countries such as Malaysia, Thailand, Indonesia, Hong Kong, China, Vietnam, Dubai and Australia. As the world progresses onwards, there will always be a need for more buildings and also upgrading works to be done. No doubt that it might be cyclical but demand for cranes and heavy machineries will always be there.
Neratelecommunications is a solutions provider with the technological expertise. Range of products and services include satellite communications, microwave radio transmission, to information
technology, networking infrastructure and high-end electronics contract
manufacturing. Its headquarter is in Singapore and they have markets in Malaysia, Thailand, Indonesia,
Philippines, Vietnam, Brunei, Laos, Cambodia, Myanmar, Taiwan and Korea. In a much simpler way, every time you pay something with NETS or Credit Card, that whole network of electronic system pretty much involves Neratel so I guess you can say it's an essential business unless of course one day a better & more cost-competitive company takes over and Neratel is doomed. Neratel has been known to have a clean balance sheet and financing almost zero debt.
Popular is probably a household name that everyone of us has at least heard of. It retails and distributes books, stationery, CD-ROMs, audio products,
and magazines; and operates as a publisher, wholesaler, and dealer of
books which most of us are familiar with. However, they are also involved in software development, property development, and real
estate investment activities which few of us are unaware of. Operations in countries such as Canada, China, HK, Taiwan and Malaysia. I believe that despite the rise of e-books & how the world is progressing towards a paperless globe, in the next decade or two, I still think that physical books are important especially educational ones and Singapore will definitely continue to put a huge stress on education and personal upgrading.That aside, I guess it's also good to know that the company has business in the real estate industry (of which I'm bias towards).
If you quickly make an assessment on these 3 stocks, you can probably come up with a few common traits among these 3 and why I have picked them over the hundred over counters in SGX. I believe that these businesses are essential and I can foresee them thriving in at least the next decade and hopefully beyond. They pay dividends to their shareholders though their yield arent as high as REITs (except for Neratel) but I do not buy them for dividends purposes but instead, mainly for capital price appreciation. I bought all 3 of them on weakness, hence there'll be more room for price appreciation in future. Tat Hong yields about 3-4%, Neratel >8% and Popular about 5-6%. If ever any of these stocks are overvalued, I will be divesting to earn the positive gains & move on to other stocks. Also, I'm staying away from REITs for now as I'm sure price correction will be done as the Fed continues to taper more as the US economy slowly throttle onwards out of their sluggishness. As of right now, we can see that REITs are slowly falling out of favour with most investors as investors are moving away from dividend play which is a good thing for me in the near future as it means I can accumulate my REITs at a more valuable price.
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