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Foolish Halloween Stock Ideas As Heard On CNBC

Halloween should not be a time to be scared witless. It is a time for fun and frivolity, even when investing. Yes, even when investing.

With that in mind, I was more delighted to share my fun Halloween-themed stock ideas with Oriel Morrison on CNBC’s Street Signs this Halloween morning.

Did you know that in some countries toffee apples rather than sweets are given at Halloween time? Nothing, in my opinion, quite beats the crunch of a well-made toffee apple, though my dentist might disagree. The Apple is also key to Epicentre Holdings Limited (SGX: 5MQ), which is an approved seller of Apple products.

Epicentre, which is listed on Catalist, is not a big company. It only has a market value of S$12m. However, its revenues over the last 12 months have been a whopping S$172m. That is almost double the sales the company generated in 2010.

Unfortunately, Epicentre has not been profitable in the last couple of years. It would appear that operating expenses have taken a big bite out of gross profits, which has left little in the way of bottom-line income for shareholders.

But if Epicentre can bring costs under control, its Price-to-Sales ratio of just 0.07 could suggest that a treat rather than a trick could be in store.

What would Halloween be without chocolates? The answer is a pretty miserable one. But fear not, Petra Foods (SGX: P34) is one of Singapore’s biggest confectionary makers. What’s more, boss John Chuang who reportedly walks around with chocolate bars to distribute to children, is known affectionately as the Willy Wonka of Singapore.

Currently, Petra is worth S$2.3b. But with Net Income of S$70.6m, that would value the chocolate maker at a scary 31 times historic earnings. The yield is nothing to scream about either. It is a paltry 1.3%

But fear not. The company boasts a Return on Equity of almost 20%. In fact, over the last five years, the returns have been between the mid-teens to high-teens. It implies that investors have enjoyed a decent return on the money they have invested in the business.

The “Ten Courts of Hell” is a reminder of the legacy of Haw Par Corporation (SGX: H02). The company, which began life as a maker of Traditional Chinese Medicine, is today a sprawling conglomerate with interests in property and investments too.

It still makes Chinese balms and ointments but that pales in comparison to property and investments that account for the lion’s share of the use of its assets.

Over the last ten years, Haw Par has delivered a total return of 13.6%. That is almost as soothing as its Tiger Balm analgesics, which are popular today as they were nearly 100 ago.

Have a Halloween Everyone!

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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.