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4 Stocks This Week

4 Stocks This Week [20 Mar 17]: Ezra; Kimly; QT Vascular; Wee Hur

An oil and gas company files for bankruptcy while a coffeeshop operator sees strong gains in this week edition of 4 stocks this week.

 

We look at Ezra Holdings, Kimly Limited, QT Vascular and Wee Hur in this week’s edition of our 4 Stocks This Week Column.

They are in this list for various reasons, with Ezra Holdings freshly filing for bankruptcy, Kimly, at the other end of the spectrum, continuing its strong performance since its recent Initial Public Offering (IPO). One of our readers brought QT Vascular into our view, and Wee Hur Holdings after clinching a notable contract from PUB (Public Utilities Board).

We always welcome our readers to bring more interesting stocks to our attention by reaching out to us via our Facebook page or email.

Market Sentiments

As usual, we check on the health of the global economy by looking at the performance of the Morgan Stanley Capital International (MSCI) All Country World Index (AWCI). This week, it took a breather, falling 0.7% from its all-time highs from last week.

In Singapore, the Straits Times Index (STI) saw a similar marginal drop of 0.7% to $3.1429 on Friday (24 March 2017) from $3.1657 on Monday (20 March 2017). Despite this, the STI has still put in solid numbers, with 14.9% and 9.1% growth in the past 52-weeks and since the start of the year respectively.

# 1 Ezra Holdings Limited

On Sunday (19 March 2017), persistently weak oil & gas prices claimed another victim, with Ezra filing for bankruptcy in the US. On Monday (20 March 2017), the company halted its trading on the stock exchange.

The group has two other listed entities, Emas Offshore, which has been suspending since 3 March 2017, and Triyards Holdings, which has also called for a trading halt on Monday (20 March 2017) but has lifted it since Wednesday (22 March 2017).

This bankruptcy will impact two Singapore banks heaviest. DBS and Oversea Chinese Banking Corporation (OCBC) are the company’s largest creditors, with UOB having a much smaller exposure to the company. Bondholders too will likely have to take a significant haircut.

Since the decline of the oil & gas sector close to three years ago, Ezra has lost close to 98% of its value. This year alone, Ezra has lost close to 77.6% of its value. The company did not trade this week, however its related entity, Triyards Holdings, has lost close to 15.8% at the end of trading this week compared to the last trading day before its halt on Friday (17 March 2017).

# 2 Kimly Limited

Since its stellar opening on its IPO on Monday (20 March 2017), Kimly has continued its good performance. The operator of 64 food courts and 121 food stalls saw its share price soar at the opening bell of its IPO to $0.55, 120% more than its listing price of $0.25, before closing at $0.44 on the day.

Likely many of its food & beverage peers listed on the exchange, there was strong interest in the company. Kimly has a strong track record for its operations of coffee shops, and its IPO will only pave the way for more such opportunities. The proceeds from the IPO will also give it a shot in the arm to expand its business.

Since its IPO, it has continued to perform well, closing at $0.49 on Friday (24 March 2017), 11.4% higher than its first day closing price of $0.44 on Monday (20 March 2017).

Kimly share price chart (1-week)

Source: Yahoo! Finance/ Google Finance

# 3 QT Vascular Ltd

This medical technology company was another that halted the trading of its shares this week, on Tuesday (21 March 2017). It also announced that it had secured up to $20 million in capital commitment from fund, Gem Global.

In this statement to the Singapore exchange, it said it would be using $9.725 million of the first $10 million for repaying loans and general working capital. It has six months to decide if it wishes to borrow the remaining $10 million.

In February 2017, the company released its results for 2016, narrowing its losses to $12 million from $53.1 million a year ago. However, revenue slid 14.4% for the year.

On a weekly basis, the company’s share price slid 4.4% to $0.044 on Friday (24 March 2017) from $0.046 on Monday (20 March 2017). Since the start of the year, its shares has lost close to 45.0% of its value, and in the last 52 weeks, it has weakened 58.9%.

QT Vascular share price chart (1-week)

Source: Yahoo! Finance/ Google Finance

# 4 Wee Hur Holdings Ltd

Involved in construction, property development and dormitory projects in Singapore and Australia, Wee Hur has been seeing stable progress in its business.

On Thursday (23 March 2017), Wee Hur announced that it had secured a redevelopment project worth $22.8 million for PUB. This was a well-received piece of news for the company after it had announced, on 24 February 2017, a 60% decrease in revenue for 2016, which was primarily due to the completion of a property development project.

With an order book of $199 million, this additional project win will add to its revenue and confidence going into the new financial year.

In the past week, Wee Hur’s share price has rose nearly 2.1% from $0.24 on Monday (20 March 2017) to $0.245 on Friday (24 March 2017). Looking further back, the company has delivered an 8.9% increase in share price value since the start of the year. However, in the past 52 weeks, it has decreased by close to 7.3%.

Wee Hur share price chart (1-week)

Source: Yahoo! Finance/ Google Finance

4 Stocks This Week is not a recommendation from us to buy or sell any of these stocks. For investors who are keen to find out more, you should continue researching about them before making your investment decisions. 

Read Also: 4 Stocks This Week [13 Mar 17] M1; Noble; Hock Lian Seng; SIA


 
 

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