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3 Shares That Beat the Market Today

With 19 out of its 30 constituents ending the trading session with losses and only eight others making gains, it’s perhaps no surprise to see the Straits Times Index (SGX: ^STI) dropping 0.2% to 3,297 points.

Let’s check out a few shares that had beaten the index today.

Telecommunication devices manufacturer and designer Longcheer Holdings (SGX: L28) is up 3.6% to S$0.285 after announcing yesterday that there are parties interested in acquiring some of its subsidiaries. “Discussion are on-ongoing” though the company also added that “there is no certainty whatsoever” that any deal would be made. So far, there’s no information on the acquirer and the acquisition targets.

Ossia International (SGX: O08) has gained 3.5% to S$0.295. The distributor and retailer of sporting goods and fashion apparel had just released its full-year earnings last Friday for the year ended 31 March 2014. The numbers weren’t pretty as revenue declined by 26% to S$55.5 million while its loss had widened from S$4.65 million a year ago to S$9.12 million.

The company attributed the decline in its top-line to “weakened retail sales” and a subsidiary which had ceased operation since September 2012. Expenses had grown across the board and led to the worsening bottom-line.

Ossia’s also in for a rough 12 months going forward, judging from the commentary it made in its latest earnings release. According to the company, “The retail climate conditions remain sluggish and competition intensified. Local market is negatively affected by the entry of globally established brands into the local market, dampening the overall fashion sale performance.”

Water and wastewater treatment outfit United Envirotech (SGX: U19) has put on 3.1% to end the day at S$1.34. Last Friday, the company too, had announced its latest full-year earnings. For the financial year ended 31 March 2014, United Envirotech’s revenue had gained 9.3% year-on-year to S$202 million. Unfortunately, its profit had shrunk by 32% to S$21 million.

The profit decline had been partly due to “minimal contributions from new engineering contracts” as well as larger interest expenses (the company’s total borrowings had increased from S$70.3 million a year ago to S$84.6 million), among other reasons.

But despite a lower profit, there were improvements elsewhere in the company’s business. For instance, United Envirotech’s recurring revenue stream from the provision of water treatment services had jumped by 54% year-on-year to S$62.6 million.

Going forward, the company “sees a growing demand for membrane-based water and wastewater treatment services, particularly in China.” This bodes well for the company as such services are its expertise. Meanwhile, United Envirotech’s acquisition of Memstar in April this year has made the company into a vertically integrated water treatment solutions provider. The company’s feeling positive about the transformation as “it will empower [United Envirotech] to expand its client base in and beyond China.”

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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.