The current Singapore stocks markets like others are waiting for the US Federal Reserves’ decision on interest rate hikes. My belief, like others is that the anticipation of a interest rate hike has been priced in by the stocks markets. While investors might be clueless on what to invest in this current stock markets, the good thing to do would be to treat investment as a long-term plan to grow one’s wealth. When one think long-term, one would think of what one would look out for in a stock.
1) It could be looking for a stock which trades no more than a 11 x Price-to-Book ratio
2) It could be a stock which decently rewards investors with good dividends to the tune of at least 5% dividend yield while the investors hold the stock
3) In addition, it is a bonus if the stock is undervalued; defined as having a Price-to-Book ratio of less than 1
4) And more importantly of all, it would be good that the company behind the stock has a good financial status, one of which is to have not too high a good Debt-to-Equity ratio. A decent Debt-to-Equity ratio is 0.50.
So having defined what one would look for in a long-term investment, an investor simply has to find out which stocks fit the criteria he has identified. With the array of stock screening tools on the internet, it is a cinch to do the above.
And these are the ten stocks on the Singapore Stock Exchange which meet the above four criteria:
1. BHG Retail REIT
2. Global Testing Corporation Limited
3. Hai Leck Holdings Limited
4. Hiap Seng Engineering Ltd
5. LHT Holdings Limited
6. Multi-Chem Limited
7. New Toyo International Holdings Ltd
8. Pan Hong Holdings Group Limited
9. PCI Limited
10. Tat Seng Packaging Group Ltd
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