Year-to-date, the Straits Times Index (SGX: ^STI) is down by around 4%. Even though the stock market has not been doing well, some stocks have soundly beaten the market.
Take, for example, Delong Holdings Limited (SGX: BQO). Since the start of 2018, Delong Holdings’ share price has surged by more than 160% to close at S$6.95 on Friday, 28 September. The steelmaker was in the news recently as its chief executive and executive chairman, Ding Liguo, has launched a privatisation bid with a voluntary conditional cash offer of S$7.00 per share.
Coincidentally, Delong was also featured as the second-best stock in my colleague Chong Ser Jing’s article, The 30 Best Stocks In Singapore For 2018. In his article, which was published in January 2018, Ser Jing shared 30 Singapore stocks that were found using the Magic Formula investing strategy popularised by Joel Greenblatt. The strategy was outlined in Greenblatt’s investing book, The Little Book That Beats The Market.
The basic premise of the Magic Formula is to find the 30 best shares in the market as ranked by their cheapness and their quality, and to hold the basket of 30 shares for a year before repeating the ranking process. For a deeper understanding of how the formula works, there’s an article explaining the strategy.
I wanted to use the Magic Formula to find out what could be some of the best stocks for October that could go on to do well. So, with the help of our data provider, S&P Global Market Intelligence, here are the top 15 stocks in Singapore’s market for October 2018:
1) Noble Group Limited (SGX:CGP)
2) Lung Kee (Bermuda) Holdings Limited (SGX:L09) (SEHK:255)
3) Delong Holdings Limited (SGX:BQO)
4) AEM Holdings Ltd (SGX:AWX)
5) China Sunsine Chemical Holdings Ltd (SGX:CH8)
6) Aspen (Group) Holdings Limited (SGX:1F3)
7) Sinostar PEC Holdings Limited (SGX:C9Q)
8) Golden Energy and Resources Ltd (SGX:AUE)
9) Challenger Technologies Limited (SGX:573)
10) Yangzijiang Shipbuilding Holdings Ltd (SGX:BS6)
11) Valuetronics Holdings Limited (SGX:BN2)
12) APAC Realty Limited (SGX:CLN)
13) PCI Limited (SGX:P19)
14) Geo Energy Resources Ltd (SGX:RE4)
15) Yanlord Land Group Limited (SGX:Z25)
This exercise aims to provide some stock ideas for investors who are looking to beat the market. See it as a stock screener where you screen for a specific set of criteria. My article is not a recommendation to buy any of the stocks mentioned above: Investors should carry out their research before purchasing any stock.
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The information provided is for general information purposes only and is not intended to be personalised investment or financial advice. The Motley Fool Singapore has recommended shares of AEM Holdings Ltd. Motley Fool Singapore contributor Sudhan P owns shares in APAC Realty Limited.