Sebastian Chong (pictured) posted the following on his website www.shareowl.com yesterday. Sebastian combines over 30 years of stock investing experience with equally long years in accounting practice and then in academia. He is a former associate professor at the National University of Singapore Business School. 

wall st bull 397Best World now $1.075. Forms 11.6% of portfolio value even after taking profit on half of my shares. About 45% return on capital since entering on 14 April.

Q&M Dental $0.785. Now 11.8% of portfolio value after taking profit on 20% of shares. Average cost 0.66. 

Sino Grandness $0.64. Now 16% of portfolio value. May take a little profit if it goes up to 0.80. 

Collectively, they form 39.4% of portfolio value. Somewhat risky but it looks they are still undervalued. Looking forward to take partial profit as they go up further. 

Timing is of the essence for such potential multibagger small cap stocks.

Timing in the sense that we need to spot when the short term situational and mid-term earnings growth versus risk fundamentals have just be transformed. 

Both Q&M and Sino Grandness haven submitted their applications for the listing of a subsidiary on the Third Board in Beijing and HKEx respectively.


It does not mean that one has already missed the boat on all three counters. Just that Best World has gone up a lot already. Q&M is still at an early stage of take-off and Sino Grandness should still have a long way to go but just bear in mind that this is an S chip.

-- Sebastian Chong

As for Best World, its application to the Zhejiang provincial government for a direct marketing license was a long drawn process but it looks like they might be able to receive it between late this year and middle next year.

In the meantime, the great news is the excellent set of results for FY2015 showing that the Taiwan segment (direct selling) did extremely well and the China segment (export sales from Singapore to the China distributor) showing a big jump in sales.

The 1Q results confirmed the continued strong showing of Taiwan, China and Indonesia as well. 

The other factor that helped is of course the bottoming out of the STI in February at around 2,520. 

Lastly, I decided to attend the AGMs in April for all the above three small caps. Also attended a small meeting with Best World at the Invest Asean road show by SGX-listed companies in mid-April. 

It is important to strike while the iron is hot to maximize or at least satisfy potential gains, especially for small caps. It does not mean that one has already missed the boat on all three counters.

Just that Best World has gone up a lot already. Q&M is still at an early stage of take-off and Sino Grandness should still have a long way to go but just bear in mind that this is an S-chip.

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Share Prices

Counter NameLastChange
AEM Holdings0.845-0.030
Alliance Mineral0.265-0.005
Anchor Resources0.023-
AusGroup0.033-0.001
Avi-Tech Electronics0.285-0.025
Best World Int.2.370-0.030
China Sunsine1.400-0.010
DISA Limited0.004-
Federal Int. (2000)0.270-
Food Empire0.530-
Geo Energy0.1690.001
Golden Energy0.2350.005
GSS Energy0.097-0.001
ISDN Holdings0.200-
ISOTeam0.205-0.025
KSH Holdings0.5200.010
Lian Beng Group0.475-
Miyoshi0.0420.001
Nordic Group0.385-
Oxley Holdings0.285-
REX International0.060-0.003
Riverstone1.170-0.030
Roxy-Pacific0.400-0.005
Sing Holdings0.390-
Sino Grandness0.126-0.002
Straco Corp.0.715-
Sunningdale Tech1.5000.040
Sunpower Group0.300-0.010
The Trendlines0.101-
Tiong Seng0.280-
Uni-Asia Group1.200-
XMH Holdings0.180-
Yangzijiang Shipbldg1.210-0.020

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