Saturday, June 27, 2015

Will you invest in this “mushroom stock” or “rojak stock”?

This stocks seems to have the makings of a good fundamentals stock, first it gives a decent dividends yields of 2.41%, at least for year 2013 and year 2014. The stock seems cheap, trading at just 0.317 Price-to-Book and just 3.313 Price-to-Earnings. The stock’s debt to equity ratio is at a respectable low of 0.101 and the company behind the stock has positive cash flows. The stock is also currently trading at a low price which may gives investors an attractive point of entry into this stock.

So what is this stock? Well, it is none other than Yamada Green Resources stock, a stock into bamboo shoots and mushrooms. This stock seems not widely covered or in the radars of most retail investors and I think one possible reason is that the stock is a S-chip stock. There are currently many S-chip stocks here in Singapore, which I believe are not well-appreciated by Singapore investors, but I mean retail investors here in Singapore have generally reasons to do so: due to the corporate scandals involving S-chip companies here many years back.

I believe investors who are interested in Yamada Green Resources but who may not be too happy about it being a S-chip stock may want to invest in Global Yellow Pages Limited stock instead as Global Yellow Pages is a controlling shareholder of Yamada Green Resources with a 20% stake in Yamada Green Resources.

However if investors are looking for dividends, do take note that Global Yellow Pages stock currently does not have a fixed dividends policy. Global Yellow Pages is really such a diversified stock that I heard some people say that the stock is just like a “rojak” stock with businesses in directories & advertising (its core business), river taxi, Yamada and Wendy’s (food businesses) and property businesses in New Zealand (which to me will be the “game changer” for the stock). I love this rojak stock and have increased my stake in Global Yellow Pages stock but it is with a longer-term perspective as I have detailed in down in quite a number of posts related to Global Yellow Pages stock (be sure to click this link to read more if interested), so I will not explain more about it here.

While some investors may ask why should Global Yellow Pages invest in New Zealand’s shopping malls (not a popular investment destination as comparied to the “sexier” China, or upcoming economies like Myanmar), I believe there is potential in New Zealand’s shopping malls as even GIC has invested in New Zealand’s shopping malls (reference) .

Please note that this post is not to give advice about investing in Yamada Green Resources stock or Global Yellow Pages stock as I have received emails or messages from readers about the stocks I buy or invest in, so just sharing it here. I have strategies for trading and investments for longer-term profits, just to let readers know.
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