3 Top Stocks I May Be Buying This Christmas Season

With everyone rushing to do some last minute Christmas shopping, I thought I should join in the fun as well. Here is my list of the top three stocks I am considering for purchase this holiday season.

The toll booth of the Singapore stock market

Technological platforms such as Facebook Inc (a platform to connect people) or Alibaba Group Holdings (an online marketplace to connect buyers and sellers) are increasingly showing the world how valuable they can be.

But, what I think many investors tend to overlook is the idea that a valuable platform need not come from just high-flying social media or e-commerce companies. In fact, a stock exchange is also a platform, one which links up companies with investors. In Singapore, Singapore Exchange Limited (SGX: S68) is effectively the sole stock market operator.

The company takes a profit from nearly all the activities that is happening in the stock market. As such, it can be seen as the ‘toll booth’ of the local bourse. Now with Singapore Exchange aggressively creating other platforms catering to other financial products such as exchange-traded funds, bonds, currencies, and other financial derivatives, Singapore Exchange is a company I’m keeping a close eye on.

Putting a price on health

The irony of life is that we spend our time building up our wealth, often at the expense of our health. As a result, in the later stages of our lives, we spend the wealth we have accumulated for our health.

Singapore is ranked the best in Asia by the World Health Organisation for healthcare infrastructure. This shows that Singapore is well-positioned to be a key medical tourism hub.

Amongst the listed healthcare providers in Singapore’s stock market, Raffles Medical Group Ltd (SGX: R01) stands out with its consistent business performance and great balance sheet.

The company is also growing its reach at the moment with a new medical/retail centre in Holland Village in Singapore; the on-going expansion of its flagship Raffles Hospital along North Bridge Road; and the development of a new hospital in Shanghai, China. The best may have yet to come for this healthcare services provider.

The hidden gem

With the market having a bad year, bargains are appearing. One possible bargain, in my opinion, may be Kingsmen Creatives Ltd (SGX: 5MZ). The corporate marketing and interiors-outfitting firm has seen its share price fall by close to 30% this year due to weakening profits.

Yet, the company continues to churn out positive operating cash flow and has a stellar balance sheet with a net cash of more than S$54.0 million as at 30 September 2015. After backing out its cash, the company is only trading at 6.6 times trailing earnings at its current price of S$0.67.

Foolish Summary

What you have seen above shouldn’t be taken to be a buy-or-sell call on any of the stocks mentioned. Each individual investor will have different risk profiles and thus different stocks that are right for them. What I’ve shared are the strong points that I see in the three stocks that I am considering at the moment.

What do you think about them? Would the three stocks above make for a suitable Christmas present for your loved ones? Let me know in the comments section below!

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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 Stanley Lim doesn’t own shares in any companies mentioned.