Although we don’t believe in timing the market or panicking over market movements, we do like to keep an eye on changes — just in case they’re material to our investing thesis. With 27 out of its 30 constituents ending the day with gains (and with only two making losses), it’s perhaps no surprise to find the Straits Times Index (SGX: ^STI) packing on 0.9% to close at 3,300 points. Although it’s been a good day for Singapore’s blue chips, there were more than a handful of shares outside the index that had done even better. Let’s take…
Although we don’t believe in timing the market or panicking over market movements, we do like to keep an eye on changes — just in case they’re material to our investing thesis.
With 27 out of its 30 constituents ending the day with gains (and with only two making losses), it’s perhaps no surprise to find the Straits Times Index (SGX: ^STI) packing on 0.9% to close at 3,300 points.
Although it’s been a good day for Singapore’s blue chips, there were more than a handful of shares outside the index that had done even better. Let’s take a look at some of today’s market beaters.
Singapore Post (SGX: S08) has jumped by 8.4% to S$1.68 after announcing yesterday evening that China-based e-commerce giant Alibaba Group had invested S$312.5 million in the company. Alibaba would end up holding 220 million shares in the postal service provider and become a substantial shareholder with a 10.4% stake.
In relation to the deal, both parties had also signed a memorandum of understanding that will see them discuss a possible joint venture to set up an international e-commerce logistics business.
According to SingPost, “this strategic business cooperation will also tap into other e-commerce opportunities in Southeast Asia and beyond by providing amongst other things, greater access to SingPost’s international logistics capabilities, infrastructure and delivery networks, and as well as end-to-end solutions to Alibaba Group customers and merchants.”
SingPost is a “leading provider of e-commerce logistics solutions and trusted communications in the region.” But, over the past five years the company has found it hard to grow. Despite revenue increasing by two-thirds from S$515 million in FY2009 (the financial year ended 31 March 2009) to S$866 million in FY2013, its profit had actually declined slightly from S$149 million to S$143 million.
Alibaba is the largest e-commerce entity in China. Shareholders of SingPost must be hoping that this new strategic partnership with Alibaba might just be what SingPost needs to jumpstart its growth.
Sky One Holdings (SGX: 5MM) has gained 12.2% to S$0.12 despite seeing some less than favourable figures on Monday when its full-year earnings for the financial year ended 31 March 2014 (FY2014) was released. The company, which has business interests in land transport, airfreight, and coal logistics, saw revenue climb 8.2% to HK$184 million. But unfortunately, its loss had almost doubled from HK$58 million a year ago to HK$114 million.
The biggest contributor to the company’s loss was a huge impairment of its intangible assets – that particular expense went up three-fold from HK$34 million to HK$103 million. The bulk of that impairment cost came from a write-down of some of the company’s contracts that are related to its coal logistics business. For FY2014, coal logistics accounted for 7% of the company’s total revenue.
Although shareholders of the company might rejoice a little following the double-digit gains today, longer-term owners of the company would still have nothing much to cheer about. Last year, the company had fallen by close to 80% in the space of four trading days to end up at a price of S$0.10 on 1 November. Investors who had held on to Sky One’s shares prior to its massive decline would still be staring into a red abyss even after today’s climb.
Sarine Technologies’ (SGX: U77) shares are up 3.9% to S$2.67. The company’s main suite of technological products basically helps diamond and gemstone manufacturers plan, process, measure, and grade their final product. Yesterday, Sarine Technologies announced that Rapaport’s RapNet® Diamond Trading Network would begin providing Sarine LoupeTM imagery for polished for-sale diamonds on its “industry standard website.” The Sarine LoupeTM is an imaging product that allows potential diamond buyers to view a virtual image of a diamond as though they were looking at the actual diamond. The product’s meant to remove friction in the trading of diamonds between wholesalers.
Last week, Sarine Technologies announced that another of its product, Sarine LoupeTM, had received its first orders in the United States and Taiwan. Sarine Light’sTM main purpose is to measure a polished diamond’s light performance based on four parameters: Brilliance; Sparkle; Fire; and Light Symmetry. These parameters often affect how attractive a particular diamond would be for retail customers in general.
The two products, Sarine LoupeTM and Sarine LightTM, are relatively new additions to Sarine Technologies’ family of products. They also form one of the pillars of growth which the Sarine Technologies’ management is leaning on to continue driving the company forward. As such, news of commercial-acceptance and increased demand for those two products would be a positive for the company.
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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 owns shares in Sarine Technologies.