There is a saying (which I hope I have captured it correctly) that when the tide is over, then it is clear who is swimming naked. In the current Singapore stocks markets, I see different sectors of stocks moving in different directions (though the broader market trend is still south) with the interest rate hike decision, Greece debt talks, performance of the different industry cycles and the different QE measures by different countries. I note that beside penny stocks, the low price of some “solid” stocks only fuel bargain hunting, which may turn to speculation when investors buy a stock down.
In this hard-to-gauge market environment, when the price of quite a number of stocks have gone down, it will be rewarding for investors to look at the fundamentals of the company of the stock they would like to invest in. For when the markets get tough, the tough get going and the fundamentally-so-so stock may head south even further price-wise. A fundamentally good stock will ride on a turning-around bottomed industry cycle to rise in its stock price.
As we know the current offshore and marine sector is not doing that good, one stock which is in this sector and which I like is Baker Technology stock as it offers the following good fundamentals:
a) P/B: 0.9
b) Dividend yields: 4.55%
c) P/E: 11.6
d) Debt: Nil
e) Cash flows: Positive
With such attractive fundamentals, and provided there are no changes to these, I believe some investors will pick up this stock at an appropriate time.
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