The Motley Fool

30 Best Shares in September 2019 and Beyond: A Behind-The-Scenes Look

Recently, we looked at 30 shares that could outperform the Singapore stock market in September 2019 and beyond. The stocks were selected using the Magic Formula investing strategy made famous by investor and author, Joel Greenblatt.

The top five shares shown in that article were:

1)      Noble Group Limited (SGX:CGP)
2)      Valuetronics Holdings Limited (SGX:BN2)
3)      China Sunsine Chemical Holdings Ltd (SGX:CH8)
4)      Best World International Limited (SGX:CGN)
5)      Delong Holdings Limited (SGX:BQO)

The strategy behind the Magic Formula is to pick the stocks with the highest quality (the ones with the highest returns on invested capital) at the lowest price (the ones with the highest earnings yield). For an in-depth discussion on what goes into the Magic Formula, you can check out my colleague Chong Ser Jing’s article here.

The following table shows the share price, earnings yield, and return on invested capital (ROIC) — as of 30 August 2019 — for each of the 30 companies:

Company Share Price (S$) Earnings yield  ROIC
Noble Group Limited 0.081 58.44% 94.28%
Valuetronics Holdings Limited 0.615 41.04% 119.11%
China Sunsine Chemical Holdings Ltd 1.03 42.72% 46.49%
Best World International Limited 1.36 21.80% 5987.30%
Delong Holdings Limited 7 51.35% 27.78%
AEM Holdings Ltd 1.06 21.01% 93.00%
HRnetGroup Limited 0.565 20.75% 104.68%
Yangzijiang Shipbuilding (Holdings) Ltd 0.91 74.69% 21.94%
Spindex Industries Limited 0.955 26.32% 23.30%
Meghmani Organics Limited 0.883 23.35% 24.56%
Challenger Technologies Limited 0.54 15.70% 48.41%
Kimly Limited 0.225 12.74% 1142.01%
Cortina Holdings Limited 1.31 20.37% 21.21%
Hi-P International Limited 1.11 15.82% 28.10%
Straco Corporation Limited 0.715 12.77% 40.28%
Hock Lian Seng Holdings Limited 0.315 23.53% 14.93%
Fortress Minerals Limited 0.23 11.77% 40.92%
TPV Technology Limited 0.646 21.10% 15.25%
Fu Yu Corporation Limited 0.215 16.92% 17.92%
Penguin International Limited 0.515 23.11% 14.02%
The Hour Glass Limited 0.79 18.02% 15.97%
Frencken Group Limited 0.64 16.74% 16.48%
Venture Corporation Limited 15.18 11.55% 25.63%
International Cement Group Ltd 0.025 17.94% 13.80%
Sinopec Shanghai Petrochemical Company Limited 0.806 10.73% 33.00%
JB Foods Limited 0.615 14.78% 15.21%
CNMC Goldmine Holdings Limited 0.295 10.89% 24.24%
Genting Singapore Limited 0.89 11.61% 18.70%
Golden Energy and Resources Limited 0.181 14.82% 13.60%
Duty Free International Limited 0.156 13.09% 13.46%

Source: S&P Global Market Intelligence

Using the above table, investors can (if they wish to) add additional figures such as the free cash flow yield and dividend yield to screen the 30 shares further to find ideas that suit their individual investing preferences.

Want to better understand how to benefit from the investing landscape here in Singapore? Click here now for your FREE subscription to The Motley Fool’s investing newsletter. 'Take Stock' lets you know exactly what’s happening in today’s markets, and shows how you can GROW your wealth in the years ahead here

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, HRnetGroup Ltd, Spindex, and Straco. Motley Fool Singapore contributor Sudhan P owns shares in HRnetGroup and Straco.