$FRENCKEN GROUP LIMITED(E28.SI)$the tide has turned and the semiconductor stocks on SGX is currently on an uptrend. Is it time to buy before it rallies??
As most of you know the semi-conductor stocks have been oversold and its valuation is near its 52-weeks low. $FRENCKEN GROUP LIMITED(E28.SI)$is one of the most oversold semiconductor stocks on SGX, it has dropped >50% from its peak in Sep 2021. It's currently near its 52-week low and you can see that its PE ratio of 8.67 is relatively lower than its peers. If you look at the quareterly revenues and net profits, u would see that it's still increasing yoy. Is the market over-reacting and have we reached the bottom already? No one knows, but I'm sure it's relatively cheap now.
As most of you know the semi-conductor section has been under huge pressure recently, partially affected by the sell-down in technology stocks. However, with the different good news coming from US semiconductor sectors such as the CHIPS Act etc, will it also help to rally the semiconductor stocks in SGX? Haha I would say it's a yes, SGX market basically follows the US market movement.
Is it a right time to enter now? For me, it's a yes because I'm able to hold long-term and collect 3+% dividend while I wait for $FRENCKEN GROUP LIMITED(E28.SI)$to reach its fair valuation. The market is a voting machine in short-term but weighing machine in long term.
I know most people would say it might drop further, its current share price has crossed the MA50 and we are witnessing a surge in price movement. Currently, it is the most undervalued semi-conductor stocks in SGX as compared to peers like $AEM HOLDINGS LTD(AWX.SI)$, $UMS HOLDINGS LIMITED(558.SI)$etc. Will you add this to your portfolio? I'm buying before it rallies further more, what about you? Do let me know your opinion!
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Finally :)