3 Shares That Beat the Market Today


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.

Despite having 16 out of its 30 constituents make gains during the trading session while having only 10 other shares clock losses, the Straits Times Index (SGX: ^STI) has managed to make only a small gain of 0.1% to 3,307 points.

Let’s take a closer look at some market beaters.

Land transport outfit ComfortDelGro Corporation (SGX: C52) is up 1.6% to S$2.60. The share has had a great year so far; since the start of 2014, ComfortDelGro has gone up by 29% even as the Straits Times Index has gained just 4%.

The company’s share price gain in that period has come alongside steady growth in its business. For the first quarter of 2014, revenue and profit had increased by 9.2% and 9.7%, respectively, compared to a year ago. With ComfortDelGro pencilled in for a second quarter earnings release on 13 August 2014, investors would know if the company had managed to continue growing at a healthy clip.

Worker dormitory operator Centurion Corporation (SGX: OU8) has jumped by 5.0% to S$0.73 after revealing yesterday that it’s going to acquire four student accommodation assets in the United Kingdom for a sum of £77 million (around S$164.5 million).

Three of the properties are located in Manchester and have freehold leases. The other property, located in Liverpool, has a very long lease with 243 years remaining. The acquisition would be earnings accretive for Centurion upon completion as the four pieces of real estate are already fully operational. Based on the company’s number crunching, its profit in 2013 could have been up to 11% higher under the assumption that the properties were fully acquired at the start of that year.

Although the earnings-accretive nature of the acquisition seems great, investors should also keep an eye out on Centurion’s balance sheet. As of 31 March 2014, the company had total borrowings worth S$257 million while having only S$71 million in cash. The acquisition would likely require Centurion to raise capital (by either borrowing or issuing new shares) and might increase its leverage. If more borrowings are taken up, investors need to determine if they are comfortable with that.

CSE Global (SGX: 544) has gained 2.2% to S$0.69. The technology company, which provides integrated solutions to industries in the Automation, Telecommunications, and Environmental sectors, had recently received a mark of approval for the quality of its leadership.

CSE Global had won the Best Managed Board award (Gold) for companies with market capitalisations of between S$300 million and S$1 billion at the Singapore Corporate Awards 2014. The event is organised by the Institute of Singapore Chartered Accountants, Singapore Institute of Directors, and The Business Times.

The award is “one of Singapore’s most prestigious awards and celebrates excellence in corporate governance and board practices.”

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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.