A “watch list” can be easily understood as a list of things to watch for possible future action. In the case with investing, that list of ‘things’ would be shares. For anyone building a watch list of stocks, here are three companies you might want to consider for inclusion. 1. Jardine Cycle & Carriage Limited (SGX: C07) At present, Jardine Cycle & Carriage’s share price of around S$41.00 would put it out of reach for many retail investors given Singapore’s current lot size rule. But a decrease in the board lot size from 1,000 to 100 is set to…
A “watch list” can be easily understood as a list of things to watch for possible future action. In the case with investing, that list of ‘things’ would be shares.
For anyone building a watch list of stocks, here are three companies you might want to consider for inclusion.
1. Jardine Cycle & Carriage Limited (SGX: C07)
At present, Jardine Cycle & Carriage’s share price of around S$41.00 would put it out of reach for many retail investors given Singapore’s current lot size rule. But a decrease in the board lot size from 1,000 to 100 is set to come on 19 January 2015. When that happens, Jardine Cycle & Carriage will become a lot more affordable for retail investors.
But the impending change in its affordability is not why it’s here. Thing is, Jardine Cycle & Carriage is actually the majority owner of Indonesia-listed conglomerate Astra International Pt.
Astra, which provides the majority of Jardine Cycle & Carriage’s revenues and profits, also happens to be the largest automotive group in Indonesia. The country’s economy has been projected to grow quickly by bankers and economists over the next four decades and if that really comes to pass, then Jardine Cycle & Carriage might get to enjoy some strong tailwinds.
2. CapitaLand Limited (SGX: C31)
This real estate giant counts Singapore and China as its key markets. Judging from CapitaLand’s current price to book value of 0.9, it seems that investors aren’t too excited about its prospects and that’s no real wonder given that the residential property markets in both Singapore and China are weak. CapitaLand’s shares even took a 15% tumble from S$3.45 at the end of this July to less than S$3.00 in the middle of October; the real estate outfit’s shares have since recovered somewhat to S$3.27.
But in any case, the current negativity surrounding CapitaLand might actually be an opportunity in disguise. If the property markets in Singapore and China start recovering, CapitaLand, the largest real estate developer in South East Asia, might be set for growth again. Of course, the timing of the rebound in the property markets would be very tricky, but that’s no reason why the share can’t be kept in a watch list for further observation.
3. Global Logistic Properties Ltd (SGX: MC0)
Global Logistic Properties is a provider of modern warehouses and logistics facilities – a key service for the e-commerce industry – in China, Brazil, and Japan. Interestingly, the company also has the largest network of logistic facilities in the three countries.
With the growth of e-commerce, Global Logistic Properties’ assets and logistical services would likely become more and more sought after. But given the recent entry of huge government-backed organisations in the modern logistics facilities space in China (Global Logistic Properties’ most important geography), it’s unclear how the situation will play out and if Global Logistic Properties can still maintain its leadership position in the country. That said, the company’s still worthy of further observation in a watch list.
To be clear, all the above isn’t meant to be a call to do anything with the shares of Jardine Cycle & Carriage, CapitaLand, and Global Logistic Properties. Instead, I’m just sharing why the business developments of these companies might be worth investors’ time and effort to follow.
In any case, following a company over time will not only enable us to gain a better grasp of its business, but it will also teach us more about its industry and its competitors. As you expand your watch list and follow more and more companies, you will get a better sense of each industry and how the economy is doing as a whole. You might even start to see interesting links and connections between different industries. All told, this whole process would more likely than not make you a better investor.
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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 contributor Stanley Lim does not own shares in the companies mention above