Three Shares That Beat the Market Today

Singapore’s stock market benchmark, the Straits Times Index (SGX: ^STI), has continued yesterday’s slide with a 0.5% decline to 3,081 points today. Within the index, 19 out of its 30 constituents ended the trading session with losses while only eight had managed some gains.

Let’s take a look at some shares that had a field day today.

Eurosports Global (SGX: 5G1) moved up 6.8% to S$0.24. The company, which distributes luxury and ultra-luxury automobiles, is a pretty new face in the stock market; it got listed only on 17 Jan 2014.

While Eurosports Global had a nice day, its early investors are probably not doing too well as its shares have since declined by some 16% from its offering price of S$0.28. With the current experience of Eurosports Global, new listings can hardly be said to be a guaranteed winning bet.

The building construction services provider, Sysma Holdings (SGX: 5UO), jumped 6.8% to S$0.315. The company had revealed on Monday that it had managed to secure a S$6.8 million contract for the construction of a house at Sundridge Park Road, Singapore.

Given that Sysma Holdings had annual revenue of S$35.5 million for the 12 months ended 31 July 2013, even seemingly ‘tiny’ contracts such as the above can be important for its overall business.

Soup Restaurant Group (SGX: 5KI) rounds up the trio with its shares up 2% to S$0.25. The restaurant operator, which has a focus on Chinese cuisine, has been on a massive share buy-back spree since the start of the year. As of 12 March 2014, the company has bought back 2.184 million shares at a total cost of S$559,198. This gives Soup Restaurant an average buy-back price of S$0.256 per share.

In 2013 and 2012, the company only managed to generate S$2.3 million and S$1.8 million in operating cash flow respectively. As a result, the amount it had spent on the buybacks can be considered significant.

As to whether that’s money well spent, it would really depend on each investor’s assessment of the intrinsic value of Soup Restaurant’s shares. If the appraised value’s much higher than the average buy-back price, Soup Restaurant’s decision to buy back shares would be a good one from a capital allocation stand point. On the other hand, if Soup Restaurant’s shares are deemed to be grossly overvalued at S$0,256, the half a million it had spent on the buybacks would be essentially money down the drain.

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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 writer Chong Ser Jing doesn’t own shares in any companies mentioned.