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Here Are Some of the Cheapest Stocks in Singapore’s Stock Market Currently

In a recent article here, we saw that there were 112 net-net stocks, as of 15 January 2019. To understand what a net-net stock is, you can head here.

In this article, let’s look at 20 of those cheapest stocks sorted out according to the following two lists:

1) The 10 net-net stocks with the largest market capitalisations; and

2) The 10 largest net-net stocks that have positive net income over the last 12 months, as well as more cash than debt on their balance sheets.

Here are the 10 stocks on the first list: UOB-Kay Hian Holdings Limited (SGX: U10), Hong Leong Asia Ltd (SGX: H22), Kingboard Copper Foil Holdings Limited (SGX: K14), Cortina Holdings Limited (SGX: C41), SLB Development Ltd (SGX: 1J0), Tiong Seng Holdings Limited (SGX: BFI), Hanwell Holdings Ltd (SGX: DM0), YHI International Ltd (SGX: BPF), Sino Grandness Food Industry Group Ltd (SGX: T4B) and Goodland Group Ltd (SGX: 5PC).

Source: S&P Global Market Intelligence

The following are the stocks on the second list: Kingboard Copper Foil Holdings Limited, Cortina Holdings Limited, Hanwell Holdings Ltd, Dutech Holdings Ltd (SGX: CZ4), ISDN Holdings Ltd (SGX: I07), Multi-Chem Ltd (SGX: AWZ), Datapulse Technology Limited (SGX: BKW), Asia Enterprises Holdings Limited (SGX: A55), Sin Ghee Huat Corporation Ltd (SGX: B7K) and Sunright Limited (SGX: S71).

Source: S&P Global Market Intelligence

To learn how to calculate a company’s net current asset value, let’s use Cortina, a luxury watch retailer, as an example.

As of 30 September 2018, Cortina had total current assets of S$229.98 million and total liabilities of S$70.32 million. This gives a net current asset value of S$159.66 million.

Cortina’s share price last closed at S$0.95, giving a market capitalisation of S$157.3 million. Therefore, the ratio of its market-capitalisation-to-net-current-asset-value was around 0.985. This also means that Cortina was selling at a 1.5% discount to its net current asset value.

The Foolish bottom line

Net-net stocks are usually companies that are in serious trouble and/or have poor business fundamentals. That is why diversification is important when investing in such stocks.

The two lists of cheap stocks seen earlier are not a recommendation to buy or sell any of those stocks. The aim here is to simply share some of the undervalued stocks in Singapore’s stock market right now for your own further research.

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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 Sudhan P doesn’t own shares in any companies mentioned.