Monday, December 31, 2007

2008 Top performing large mid cap stock?

Singapore equity market had just ended for the year 2007. STI closed at 3482.3 point at the end of the year which was 15.47% higher of the opening at the start of the year 2007. Despite a volatile and roller coaster ride towards the end of the year, overall it was still a reasonable gain for our local market as well as most market in the region.

The marine and shipping industries had a good year in 2007. Stocks like Cosco, Ezra, STX PO, Labroy Marine, etc must have rewarded long term investors handsomely, who acquired these companies’ shares when they were at lower price. Now the question is can the same industries perform well for the year 2008? It is anyone’s guess.

Now at the start of New Year, investors must be busy searching for the next big performing stock for the year 2008. On the 7 July 2007, there was an article published in Business Times on how the author searched for super return stocks based on ROE and PTB. Here you can read more on her articles which are posted at sgfunds forum. Thanks to a forummer nick lioncity for sharing them.

Just out of curiosity, I decided to compile a list for all 80 combined constituents of STI large and mid cap based on ROE / PTB values. The stocks are ranked in descending order from highest to lowest ROE / PTB. But the next question is can any of these stocks be the biggest large or mid cap stock for the year 2008?

We shall see how these stocks perform at the end of the year. It might be worthwhile to look in greater detail on these stocks but please do not rely solely based on the ranking. However picking any stocks which form a small speculative portion of your portfolio is why not I would say. So may I wish good luck in your search.

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