Three Shares That Beat the Market Today


Singapore’s stock market benchmark, the Straits Times Index (SGX: ^STI) had a relatively good day as it gained 0.4% to 3,189 points.

18 shares out of the index’s 30 constituents had ended today’s trading session in the green while 10 others had made losses.

Let’s take a look at some shares that did better than the market today.

Energy exploration and production company Mirach Energy (SGX: C68) climbed 3.9% to S$0.187. Last Wednesday, the company had posted an update of its drilling operations at the Kampung Minyak Oil Field in South Sumatra, Indonesia.

In the update, Mirach mentioned that it had just spudded a new well, KM-602, at the oil field. It is the first of a batch of three new wells that were identified by the company’s drilling team and regulatory approvals for drilling were recently obtained.

Mirach Energy’s latest third quarter results, released on 11 Nov, indicated that its four production wells KM-601, KM-606, KM-610, and KM-611 were producing between 190 to 312 barrels of oil per day in total with the newer KM-607 well’s daily output standing at 184 to 230 barrels.

Tee International (SGX: M1Z) is up 1.7% to S$0.31. The mechanical and electrical engineering services provider had recently set up a S$350m multi-currency medium term note programme.

Under the programme, the company would be able to offer notes (i.e. debt) to investors to raise capital for capital expenditures; refinancing of existing loans; and funding of acquisitions, among others.

Tee International currently has around S$80m worth of cash on hand on its balance sheet with S$157m in total debt. The medium term note programme provides the company with an avenue to access capital in a more timely manner should such needs arise.

Finally, we have private dental clinic operator Q&M Dental Group (SGX: QC7). Its shares are up 1.6% to S$0.325 following an announcement this morning that it might be purchasing a 51% stake each in two dental practices that are both located in the Shandong province of China.

The acquisition targets are the dental hospital Rongcheng City Shidao Meichen Hospital and the dental polyclinic Rongcheng City Meichen Stomatology Polyclinic that are currently owned by Liu Yuguang and Wang Deping respectively.

There are a few hurdles that the proposed acquisition needs to clear and that includes, among others, gaining approval from Q&M’s shareholders as well as the company being satisfied with the overall health of the dental practices after conduct of due diligence.

The acquisition would cost Q&M around S$3.57m in total and would be paid for by issuing new shares of the company to Liu and Wang.

Interestingly, the shares issued to Liu and Wang cannot be sold for five years, and under the one of the hurdles, both individuals have agreed to provide a minimum profit guarantee annually starting from 2014 for a period of 12 years for a total amount of RMB36m (approximately S$7.56m) for the dental practices.

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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.