The 4 stocks in my radar during the recent market sell-off:
In term of yield, valuation & PE OCBC Bank looks attractive. It seem that banks are facing headwind worldwild I'm now cautious on bank stocks. The tougher operating enviroment also saw OCBC Bank set aside higher allowances for bad loans and other assets. Cautious on OCBC Bank for the time been.
Valuetronics strong cash generative business and solid balance sheet with cash of HK$682 million (S32.5 cents) and debt free. Valuetronics is definately a great bargain. Dividend last year is HK20 cents and trading below 10x PE. (Ex cash 1.0x PE)
The fall in the CE segment is the main concern of this stock. Since Valuetronics had already exit the CE segment and the ICE segment had been growing by double digit will soon make-up for the lost in revenue. The latest in Q3 result ICE contributed 67.5% of the total revenue. As market does not like uncertainty and since Valuetronics BOTTOM IS IN SIGHT without CE contribution. The sebsequence growth in ICE segment and the improve margin will propel the growth of Valuetronics future business.
Valuetronics strong cash generative business and solid balance sheet, Valuetronics is an attractive target for M & A.
I am buying up Valuetronics at this depressed price few months ahead of its profit turnaround. At this level the down-side is limited. Yield is above 7%.
M1 share price had fall from high of $3.96 in Febuary 2015 to as low as $2.24 due to fear of entry of 4th telco company. M1 is the most attractive among the 3 telco stocks in term of yield and valuation. I will go slow on M1 and only buy below $2.50. M1 yield @ $2.54; 6.5% and 13x PE.
Trendlines is one of 18 licensed incubators which the Israeli government hands out grants to their qualifying start-ups.
Focusing on the medical and agricultural industries in order to "improve the human condition,"
From evaluating about 500 possibilities a year, and doing due diligence on a shortlist, currently Trendlines is incubating 48 start-ups.
They have qualified for cash grants from the Israeli government of, typically, about US$543,000 for agri-tech start-ups, and US$652,000 each for medical start-ups.
Trendlines, for its part, injects about US$96,000 and US$115,000 cash, respectively, into the start-ups.
The start-ups -- typically 50-50 owned by the entrepreneur and Trendlines -- are ready for the first round of funding in Year 2 and Trendlines will be on the way to an exit anytime after that.
To investors of Trendlines, a key catalyst for the stock price would be exits and the resulting dividend payouts. Exits will pick up pace given that within Trendlines' expanding portfolio of companies, more start-ups will reach higher levels of business development.
Currently, 17 of the start-ups are generating revenue -- which raises the odds of them being acquired by third parties.
Trendlines, in fact, has announced that three of them (including Tel Aviv-listed ET View) have signed engagement letters with investment banks for possible M&A actions.
Some potential incubating start-up:
1. Stimatix was awarded "Best Start-Up 2011" by Israel’s Office of the Chief Scientist of the Ministry of Economy. Stimatix has developed a "cap" that sits over the opening in the abdominal wall. "If you see someone wearing it, you'd think it's a bandage as it's skin color and flat." With CE and FDA approval already secured, the device can now be sold in Europe and the US. This year, Stimatix will build up its capability for mass-production and targets to deliver the device to the market in early 2017.
2. ApiFix, which was named “Best Start-Up 2012” by the Office of the Chief Scientist in Israel. ApiFix has developed a game-changer solution for remedying idiopathic scoliosis, a condition where the spine is severely curved. It mainly afflicts adolescent girls.
3. IonMed in Israel has developed a technique for closing wounds that has been proven to be superior to suturing and stapling.
4. TTGL is considered the best incubator in the Medtech space and is the only government franchised incubator in Agtech space
5. Tandem Technologies, which is in the gastroenterology space, is developing a device for more efficient removal and retrieval of polyps in the colon, with the goal of a near 100% retrieval rate.
6. Zeev Implants, which is in the dental market, is developing a modular dental implant to solve the most common sources of dental implant problems and diseases, including peri-implant disease, without the need to remove or replace the implant.
I had bought Trendlines share below 20 cents.