Growth Spurts

Good things come to those who are patient and they often come in spurts. I noticed that some of the stocks in my portfolio have experienced some ‘growth spurt’ in their stock prices in recent days.

Although I am happy but I do understand that short term volatility does not really mean much. Not sure if the stock prices will remain at the higher level for long term though. Am not really a trader…
Ultimately it is their earning growth and fundamentals.

Nevertheless, let’s take a look at them. Enjoy the good times while it last. :p

SMRT
One of them is SMRT. After the announcement of the buyout offer by Temasek, shares of SMRT Corp rose sharply after they resumed trading on the Singapore Exchange on 21 July 2016.

The stock was trading at $1.495 on 8 July 2016, and on 12 Aug 2016, it was trading at $1.625. This represents an almost 9% jump in approx. 1 month.

Nirvana Asia
Another candidate for privatization. Private-equity firm CVC Capital Partners announced on 8 July 2016 that it agreed to pay $1.1 billion to buy out Nirvana Asia Ltd., Asia’s largest funeral services provider by revenue.

The stock was trading at HKD 2.12 on 14 June 2016, and on 12 Aug 2016, it was trading at HKD 2.86. This represents an almost 64% jump in approx. 2 months!

ISOTeam
On 5 August 2016, ISOTeam announced that it has clinched 13 new private and public sector contracts worth $20.11 million. SG Wealth Builder did a good post on the company and its recent development (read here).

With the possible strong growth moving forward, the share price of this counter has also increased exponentially.

The stock was trading at $0.30 on 12 July 2016, and on 12 Aug 2016, it was trading at $0.40. This represents an almost 33% jump in approx. 1 month.

Colex Holdings Ltd
A thinly traded stock (which partly explains the lumpy stock price movement). Nevertheless, it is a consistent over achiever when it comes to earnings.
On 2 August 2016, the company announced that profit before tax in HY2016 was S$4.358 million, an increase of S$0.859 million or 24.5% from S$3.499 million in HY2015.
However, I am really surprised by the almost 18% increase in stock price on 12 August 2016. Well, since it is a thinly traded stock (at any given day, only a few trades are done by a few investors), I won’t be surprised if the stock price drop just as fast over the next couple of days.

The stock was trading at $0.40 on 27 July 2016, and on 12 Aug 2016 it was trading at $0.54. This represents a almost 35% jump in approx. 2 weeks!

Sun Hung Kai Properties Limited
I am not really sure what caused the sudden rise in stock price. I am aware that on 12 July 2016, the former co-chairman of Sun Hung Kai Properties, Thomas Kwok, who had been jailed for corruption in December 2014, was released on bail.

However, in recent times, the developer only managed to beat its residential sales target for the first half of the year by sacrificing profit margins as it offered sweeteners to entice buyers. In fact, Sun Hung Kai’s strong sales came at the expense of lower margins. The company has been offering discounts and promotions, reducing costs to buyers by as much as 20 percent, to compete for sales as overall volumes declined 35 percent in the six months ended June from a year earlier. (read here)

The stock was trading at HKD 88.05 on 28 June 2016, and on 12 Aug 2016 it was trading at HKD 111.30. This represents a almost 26% jump in approx. 1.5 months.

Well, there are also stocks in my portfolio that have under-performed.
Been looking at some US stocks which I feel is undervalued (but not undervalued enough :p).