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Singapore’s World Cup Hopefuls

FootballSingapore might not be in the World Cup. But one day we will. We do, however, have a cracking line-up of companies that would not look amiss in any fantasy World Cup Football Team.

Goalkeepers need to have a safe pair of hands. So who better than Jardine Strategic Holdings (SGX: J37) to stand between the sticks. JSH, which has delivered an annual total return of around 25% since the turn of the Millennium, could help any portfolio keep a clean sheet.

If we are looking at a traditional 4-4-2 formation, then we need four solid defenders to hold the back line. What can be more defensive than telecoms and food? With that in mind SingTel (SGX: Z74), StarHub (SGX: CC3), Dairy Farm Holdings (SGX: D01) and Super Group (SGX: D10) look like automatic shoo-ins for the back four places.

Apart from its strong defensive attributes, Dairy Farm is not too bad at scoring a few goals up front either. Its shares have increased 23-fold over the last 14 years. On 1 January 2000, the shares were worth a split-adjusted price of just S$0.45. Today those same shares are changing hands at around S$10. That equates to an annual total return of 24%, which could put many stock-market star strikers to shame.

Mid-fielders are by nature creative creatures. Some might even describe them as being a tad mercurial. In stock market parlance, we call them cyclicals. They have their moments of brilliance when they can turn on a sixpence. At other times, though, they can’t even hit a barn door from six paces.

Here in Singapore, we have a crop of cyclicals that are quite unique to our Asian markets. While, the UK may have its oil drillers and oil explorers, and Australia its miners, we have our palm oil producers. Our mercurial four are Golden Agri-Resources (SGX: E5H), Olam International (SGX: O32), First Resources (SGX: EB5) and Indofood Agri Resources (SGX: 5JS).

Strikers are the star of the show. It is all very well keeping a clean sheet but if you don’t score goals, you don’t win games. Here in Singapore, we have two standout strikers that have delivered year-in, year-out. They are Keppel Corporation (SGX: BN4) and Jardine Cycle & Carriage (SGX: C07). An investment of $1,000 in each of those companies at the start of the Millennium would have turned into S$28,732 today.

If you are a football fan, I do hope you enjoy the next four weeks. If you don’t, there are always our Motley Fool Singapore articles to keep you Educated, Amused and Enriched. If you disagree with my team selection, do let me know on our Facebook page. Football just wouldn’t be football if you agree with every team selection.

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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 Director David Kuo doesn’t own shares in any companies mentioned.