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. The Straits Times Index (SGX: ^STI) has inched up by a miniscule 0.02% as it ended the day at 3,297 points. Within the index’s 30 constituents, just 10 shares had managed to make some headway while 16 had clocked losses. With winners in relative scarcity among the blue chips, let’s step outside the STI for a closer look at two market beaters. Sarine Technologies Ltd (SGX: U77), which…
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.
The Straits Times Index (SGX: ^STI) has inched up by a miniscule 0.02% as it ended the day at 3,297 points. Within the index’s 30 constituents, just 10 shares had managed to make some headway while 16 had clocked losses.
With winners in relative scarcity among the blue chips, let’s step outside the STI for a closer look at two market beaters.
Sarine Technologies Ltd (SGX: U77), which develops and manufactures technologies used to help turn rough diamonds into polished gems, has climbed by 5.1% to S$2.89. Last week, the company announced that it will be presenting new technologies for its Sarine Loupe product at the Jewellery & Gem Fair in Hong Kong from 15 September to 18 September.
The Sarine Loupe is an imaging product which allows potential diamond buyers to view a virtual image of a diamond as though they were looking at the actual stone itself. It’s designed to help reduce friction in the trading of diamonds between wholesalers. The new technology to be produced in the product is called Real View, and it helps enhance the capabilities of the Sarine Loupe; more specifically, Real View “adds a clear, stunningly realistic perception of how the diamond looks.”
Sarine Loupe is one of the newer products Sarine Technologies has introduced over the past year to gain a presence in the market for the retail trading of diamonds. Previously, the company was focused almost solely on providing products and services to diamond manufacturers.
The foray into the retail trading part of the entire diamond industry value chain would be something new for Sarine Technologies. So, its progress on this front would be interesting for investors to follow.
Raffles Education Corp Ltd (SGX: NR7) is next in line with its shares up 3.0% to S$0.34. The company, the largest private education provider in the Asia Pacific region, revealed earlier this morning that it will be acquiring some real estate in Switzerland for a total of CHF29.12 million (around S$39.8 million).
The purchase marks Raffles Education’s first entry into Europe and is also in line with the company’s “progressive morphing” of its business. Raffles Education’s vision is for itself to have “three growth engines.” Besides its legacy business of being a premier private education provider, the company’s also building a business in the management of education assets and facilities. That’s in addition to its increasing involvement in the development and investment in education-related real estate.
The Swiss real estate consists of two buildings sitting on 12,000 square metres of land, a hotel, and seven commercial units. Raffles Education intends to establish a hospitality management school in the two buildings. According to the company, there seem to be interesting synergies between the three sets of properties. Raffles Education has plans to let students intern at the hotel; meanwhile, ownership of the commercial units “allows for the control of tenant mix to complement the Hotel’s operations, thereby enhancing the value of the overall assets.”
Raffles Education intends to rely on borrowings and its cash resources to fund the acquisition. As of 30 June 2014, the company had S$266 million in total borrowings and just S$59 million in cash. The purchase of the Swiss real estate would very likely weaken its balance sheet further; that’s something to keep in mind for investors.
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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.