Three Shares That Beat The Market Today


Last Friday, the S&P 500 Index in the USA gained 1.3% after the market seemed to cheer news that the American economy added 204,000 jobs in October. The Dow Jones Industrial Average, another widely followed US stock market index, went up by 1.1% as well.

The Straits Times Index (SGX: ^STI) seemed to followed in the footsteps of its American counterparts as it put on 0.3% to 3,187 points today. Within the index’s 30 constituents, 17 shares closed the trading session with gains while 11 shares ended in the red.

Let’s see some of the shares that did better than the index.

Figtree Holdings (SGX: 5F4), which specialises in the design and building of commercial and industrial facilities, got its debut on the Catalist stock exchange today at a listing price of S$0.22. It went on to surge 105% to S$0.45 when the markets closed, giving it one of the best opening-day performance among newly-listed shares this year.

So while the company has had one great day in terms of share price returns so far, investors shouldn’t forget that a share’s long-term outlook will be tethered to its corporate results (as old-fashioned as it sounds). And, to have a better idea of how the latter would develop, investors would have to dig into Figtree’s IPO prospectus to learn more about its business and its financials.

For starters, its shares were valued at 12 times trailing earnings at its listing price based on its pre-IPO share count of 223m. As the company sold 54.55m new shares to the public in the listing – bringing its total share count to 277.55m – a back of the envelope estimation of its new Price-Earnings ratio based on its listing price would end up at 15.

That’s not too far from the general’s market’s valuation, where the STI is selling for around 13 times trailing earnings. But, factor in today’s doubling in price for Figtree, and the company’s now selling at a much higher PE ratio of around 30.

Agriculture business group Wilmar (SGX: F34) gained 2.1% to S$3.45 today. It released its third quarter results last Thursday evening where quarterly revenue slipped 4.2% year-on-year to US$11.8b while profits inched up 2.5% to US$416m.

The market wasn’t too happy initially, as its share price dropped 2% to S$3.38 last Friday before rebounding today to the same price it was at prior to its earnings release.

Wilmar cited “strong volume growth across most key segments” as the main driver for its slight profit increase.

Boardroom Limited (SGX: B10) climbed 3.3% to S$0.62 after reporting its first quarter results last Thursday. The company provides corporate secretarial, shareholder, and accounting services.

For the quarter ended 30 Sep 2013, Boardroom’s revenues came in 0.3% lighter at S$14.4m compared to a year ago. Profits, meanwhile, dropped 15% to S$1m.

The weakening Australian dollar was one of the culprits for the company’s slight dip in revenue. Increase in staff costs and unrealised foreign exchange losses were the main reasons for the decrease in the company’s bottom-line.

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The information provided is for general information purposes only and is not intended to be personalised investment or financial advice. Motley Fool Singapore contributor Chong Ser Jing doesn’t own shares in any companies mentioned.