3 Shares That Beat the Market Today

StockMarketBoardAlthough 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 a slight 0.1% gain, the Straits Times Index (SGX: ^STI) has closed at 3,262 points. There were 14 shares out of its 30 constituents that made some headway while 12 others suffered some losses.

Let’s take a look at some market beaters outside the index.

Sunningdale Tech (SGX: T35) jumped by 9.3% to S$0.199. The high-precision steel mould and plastic parts manufacturer revealed last Friday that it had sold 153 million shares in a private placement for S$0.1633 each. By way of comparison, the company had 765 million shares on the day of the announcement itself, so this placement would actually represent significant dilution for existing shareholders.

The investors in this placement exercise are Yarwood Engineering & Trading Limited and Sam Goi Seng Hui. The former’s a wholly-owned subsidiary of spirits and alcoholic beverage distributor Kong Siang Group Holdings Pte Ltd. while the latter’s a well-known local billionaire businessman. Both would be subscribing for equal amounts of Sunningdale Tech’s shares.

The company would bag S$25 million in gross proceeds from the exercise but there’s no specific aim for these funds yet as the company mentioned that the money “will be used as working capital to fund the growth and expansion of [its] business, and to increase [Sunningdale Tech’s] capacity for any acquisitions in the future.”

Water and wastewater treatment outfit United Envirotech (SGX: U19) has gained 3.8% to S$1.50 after announcing a contract win in Malaysia yesterday. The contract, which is worth RM45 million (around S$17.5 million) and would be completed by end 2015, is for the construction of a sewer network that includes a sewage pumping station, three kilometres of sewer pipeline, and a sewage treatment plant.

Interestingly, the contract was won by United Envirotech’s wholly-owned Malaysian subsidiary, Dataran Tenaga. Dataran was acquired in 2006 for just RM5 million and actually earned revenue of RM40 million in the financial year ended 31 March 2014. With such figures, it appears that the Dataran acquisition is a smart one made by United Envirotech.

Palm oil producer First Resources (SGX: EB5) rounds up the trio with its shares up 2.9% to S$2.45. Just last week, the company released its monthly production highlights for May 2014. Year-to-date, First Resources’ crude palm oil and palm kernel production has grown by 10.7% and 13.8% year-on-year respectively in terms of tonnage.

Between 2009 and 2013, First Resources has been a pretty remarkable palm oil producer for its ability to show sustained profit growth even as its peers faltered. And, it’s the company’s much faster pace of growth in CPO and PK production that have been important factors in setting it apart from the rest. As such, the change in the company’s production figures for CPO and PK would be an important metric for investors to watch.

With combined year-on-year growth of 11% for CPO and PK production for the first five months of 2014, it seems that First Resources does not have any intention of slowing down anytime soon.

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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.