COULD THIS SINGAPORE STOCK BE YOUR BEST BUY NOW?

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Singapore Stocks
Dear readers, in yesterday’s post , I have highlighted four Singapore stocks, each with an attractive proposition for investors to look at, against the current lacklustre and somewhat uncertain markets backdrop. To recall, each of these four stocks:
a) pays a consistent dividend yield of at least 4 %;

b) is trading at no more than 5% from their 52-week stock price lows; and

c) is trading at no more than 0.5% debt-to-equity ratio

as revealed in yesterday’s post, the four stocks are:

a) Avi-Tech Electronics with a 7.8% dividend yield

b) Duty Free International with a 8.77% dividend yield

c) Dynamic Colours with a 8.05% dividend yield

d) Global Palm Resources with a 4.65% dividend yield

Further, I have shared that to the effect that if investors would like to have another additional metric to confirm the concept of value, then the following two stocks of the four shortlisted stocks above will stand out as they are currently undervalued (each having a Price-to-Book ratio of <1 br="">
a) Dynamic Colours : 0.906 Price-to-Book ratio

b) Global Palm Resources 0.662 Price-to-Book ratio

Aligned with the title of the post, in this post, I am going to extrapolate the above concept further, to see which of the aforementioned two posts: Dynamic Colours and Global Palm Resources could be a better stock for investors to consider. How would I do that? Well, by introducing another metric for investors to consider of course! And this metric would be to determine which of the two stocks offers a better Return-on-Equity (“ROE”).

We are going to look at the ROE for these two stocks for the Last-Twelve-Months ending 30 Jun 2018 and the following is the comparison.

a) Dynamic Colours : ROE: 8.21%

b) Global Palm Resources ROE: (negative) 0.445

There we have it, Dynamic Colour stock, one stock which provides investors with:

a) an annual dividend yield, with most recent one at 8.05% dividend yield

b) is trading with a 0.102 debt-to-equity ratio

c) is trading at no more than 5% from their 52-week stock price lows

d) is undervalued with a Price-to-Book ratio of 0.906

e) has a positive ROE of 8.21%

And the question for All is whether with the above metrics, Dynamic Colours would be the Best stock to own for investors right now? Join the emailing list to receive regular Financial and Singapore stocks newsletters too! Like" me on Singapore Stocks Investing Facebook page to receive all posts on your Facebook as well as read more articles. Follow me on Twitter too.

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