just bought 400000 Lian Beng share at 0.525 today. in my opinion, this counter is good for medium and long term investment - low PE, reasonable dividend yield, reasonable price/NAV ratio, low gearing (or maybe net cash), director purchase, huge order book, recommended by all analysts, CEO of the year 2012, one of the 4 listed co in singapore getting best Forbes 200 companies under 1 billion award, etc.
does anyone have any comment about this co, be it good or bad ? Thanks
eFacec58 – Wow, I am impressed that you whacked $200K on a counter as a first timer. Did you win a lottery or got a super golden handshake or what ( just joking lah) ? As a novice, picking a good S’pore company run by S’poreans is wise as I’d avoid those which are not ( eg S-Chips etc ) or speculative stocks.
I generally don’t follow construction or property companies hence can’t comment on your counter, though I think outlook for these sectors few yrs down the track will be tough. I think you should not whack anymore counters until you learn how to read P&L statements or balance sheet, which will take time.
I am curious why you want to buy stocks now? It’d be tough for a novice as making easy money is over now that SGX index is quite high and undergoing correction. In a Bull run, people will boast how much money they make, but they never tell how much money they lost the years before. Most retail investors I know lose money or can’t grow their portfolio by 5%/yr compound to keep up with inflation. Anyway, good luck.
The following user(s) said Thank You: Rich, novice
I used to own Lian Beng, and have recently use it as a peer comparison with chip eng seng. I think it is quite a sound company, as for if it is undervalued, I have no ideas as I didn't dig deep.
As of my last research a few months ago, lian beng strength and niche is in construction and can command better margin than CES, but only 10% of their revenue come from industrial property development, and I think they are expanding in that direction, industrial property is quite cyclical, and I think you need to track their sales, but by and large it is a good company, with sound financial and reasonable valuation.
With the amount of capital under you disposal, you can well afford to hire a wealth mangaer ot FA to give you professional advice on management of your money.
Thanks a lot for your comment and suggestion. I appreciate it very much.
I have seek advice from many people before i made this decision. Among others are my remiser, the CEO family member (who is close to mine), and others. so far, this is the best company i have studied. another good company is Delloyd (listed in msia), but the trading volume is so small that the exit price may not be good.
The bank interest rate is just too low now. i therefore intend to take out part of my fix-D saving and invest about 1 mil in stock market. I am eyeing on a few other counters like midas, noble, popular, osim, but i think it may not be the right time to go in now.
once again. thanks a lot. i like your comment very much. happy trading.