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Terence said while waiting for a potential takeover offer, he is happy to collect dividends from Fu Yu, a plastic injection moulder. The company has paid a total of 0.5 cents as interim dividends and has proposed a 1-c final dividend for FY2016.
Terence thinks the counter has another 15 to 20 per cent to go from current levels.
|
Azure’s stock picks |
7 Apr 2017 stock price |
Year-to-date gain |
|
Avi-Tech Electronics |
44.5 c |
59% |
|
Fu Yu Corp |
24.5 c |
30% |
|
Global Logistics Properties |
$2.80 |
27% |
|
KSH Holdings |
73.5 c |
36% |
|
Sing Holdings |
36 c |
16% |
|
Spackman Entertainment |
17.7 c |
- 8% |
Avi-Tech Electronics, a "burn-in" testing services provider, can rally a little bit more than that (15-20%), he said.
For more on the company, which is expected to see steady growth from the increasing use of electronics in cars and the advent of driverless vehicles, see: AVI-TECH ELECTRONICS: Insights into its operations
From the beaten-down oil & gas industry, Terence has found a stock to own -- PEC, which provides engineering, construction and maintenance services for oil and gas players. It is run efficiently, and order enquiries have been strong, Mr Wong said.
Notably, it had a large net cash balance of $148 million as at end-Dec 2016, compared to its market cap of $181 million based on a recent stock price of 71 cents.
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"I would say 60 to 70 per cent of the market is made up of privatisation plays, turnaround plays and ignored, unloved stocks." |
From another beleagured industry, there is boutique property developer Sing Holdings which Terence pointed out trades at under 0.6 times book value.
It has proposed a 1-c final dividend and 0.375-c special dividend for FY2016. The stock recently traded at 36 cents.
He also highlighted Spackman Entertainment Group, a loss-making movie production house which he thinks will turn profitable in 1Q17.