Stock screening: 3Cenergy, 800 Super, 8 Telecom, A-Sonic, AA Group

3CEnergy – RTO in May 2013 and changed its business into a one-stop service provider in the property industry.  NAV of 2.6 cents and loss of -3.1 cents for 1H14 but share trading at 33.0 cents.  This is totally unattractive to me. (Review done on 20 November 2014)

800 Super – One of the four public waste collectors appointed by the National Environment Agency to provide waste collection services to domestic and trade premises. It currently provides waste collection service in the Ang Mo Kio - Toa Payoh sector in Singapore. IPO on 22July 2011 at 22.0 cents.  Stock price has more than double after a strong set of FY14 results was announced on 22 August 2014.  At the last closing price of 50.0 cents, it is trading at PER of 100, P/B of 2.2 with a dividend yield of 2.5% and market capitalization of $89.4m.  Cash on hand is 3.0 cents per share and net debt to equity is 0.71.  The valuation is high for a small cap stock but it is an interesting company to keep in the watch list as the Group is exploring new opportunities for growth in the region. (Review done on 20 November 2014)

8 Telecom – It is principally involved in the manufacturing and supplying of telecommunications pipes, telecommunications and other towers as well as provision of telecommunications engineering services in China. 8Telecom has also made a strategic move to include property development as one of its core businesses. This is following the Group’s successful development and sales of its high-end commercial property in Linping District, Hangzhou City, Zhejiang Province as well as the acquisition of another larger-scale raw land located in Wuchang District, Hangzhou City, Zhejiang Province. Interestingly independent director Cartel Yeo See Meng has spent about $200K to raise his stake from 12,175 lots on 2 October 2012 to 13,780 lots on 23 June 2014.  His stake is worth about $1.65m at the last closing price of 12.1 cents.  8 Telecom has been paying dividend every year since its IPO in 2004.  Cartel Yeo is currently a Vice President in the equity sales department of DMG & Partners Securities Pte Ltd. Dividend for FY13 was 0.12 cents, which translates to yield of 1.0%.  Cash on hand is 3.0 cents per share.  P/B is 0.51 while rolling PER is 19.5.  8 Telecom is not appealing to me and I will give it a miss. (Review done on 20 November 2014)

A-Sonic Aerospace – The Group is engaged in two core areas of businesses; aerospace engineering business and logistic solutions business. It is still struggling to make profit.  It incurs a net loss of $991k for 9M15 and a net loss of $127k for 3Q14.  It is presently trading at P/B of 1.0 at the last transacted price of 7.1 cents.  It is not an attractive counter. (Review done on 20 November 2014)

AA Group – The Group is principally engaged in the manufacture and supply of high-precision cold forged loudspeaker parts, namely T-yokes, U-yokes and washers. The Group's customers are manufacturers of automotive and commercial audio devices, home audio-visual products and other consumer electronics products. Its customers include global names in sound systems such as Blaupunkt, Bose Corporation and Pioneer Corporation.  This is a very illiquid stock which is trading a P/B of 0.29.  It has not paid any dividend since 2010. It has low cash and high debt.  It current asset is about equal to current liabilities and is at risk of running into cash flow problem.  This is a company with a very weak balance sheet and should be avoided. (Review done on 20 November 2014)