Boustead share price (SGX: F9D) lost its way

The last time that I covered Boustead share price was in November 2016. Back then, the company was still struggling from the fallout due to the oil slump. Recently, a member of SG Wealth Builder requested for a coverage of Boustead share price, which I would duly oblige to do so.

Ten years ago, this counter had been on my watchlist as Boustead share price rose from $0.80 in January 2012 to an incredible high of $1.90 in April 2014. Back then, investors must have felt so surreal. By the time of my last coverage in November 2016, the bubble has burst for Boustead share price as the stock collapsed to the $0.80 bandwidth. The collapse of Boustead share price was largely due to the ailing oil and gas industry from 2014 to 2019.

Boustead share price

During the initial onset of the pandemic in 2020, Boustead share price came under further pressure as the counter plummeted to a low of $0.60 in April 2020. That was the period when crude oil prices were being traded at negative levels. Fast forward to 2022, as we approached endemic, Boustead share price has somewhat recovered to $0.90. Having said that, retail investors’ interest in Boustead share price has cooled considerably. In fact, the average 3-month trading volume amounted to just 1.4 million shares! This suggested an extremely poor liquidity for this stock.

To be fair to the management, the lack of retail investors’ interest in Boustead share price is not entirely due to the business fundamentals of the company. In my opinion, the issue faced by Boustead share price is prevailing among many SGX-listed companies. In the past decade, many Singapore investors had shifted interest to US and Chinese stocks due to the perceived higher returns. Hong Kong Stock Exchange has also emerged to become a strong competitor of SGX as many Chinese technology companies chose to list there.

The dearth of IPOs and the horrifying valuations of listed companies in Singapore led to a slew of delisting in SGX in recent years. Perhaps, investors’ confidence of SGX-listed companies was rattled after a series of S-chip scandals and the devastating $8 billion penny stock crash of 2013. Due to the prevailing poor valuations among SGX-listed companies, Boustead share price got affected as well. Based on the 1HFY2022 financial report, Boustead share price is currently being traded at just 1.07 times of its net asset value.

Given that crude oil prices are being traded at multi-years high now, what could be the outlook for Boustead share price? In this article, I will share my insights on Boustead share price outlook in FY2022.

Investment Outlook for Boustead Singapore

Note that this is an opinion article and not meant to be a financial advice. Please do your due diligence or engage financial advisors before investing in the stock market. Furthermore, I am not vested and have never invested in Boustead before. Whether Boustead share price will surge or collapse has no impact on me. Thus, this article is not meant to induce readers to make any form of investment decisions.

Boustead share price in calamity

Perhaps, the biggest shock for investors came on 4 August 2021 when [This is a premium article. The rest of the content is blocked and can be accessible by SG Wealth Builder Members only. To read the full content, please sign up as member.]

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Updated: March 22, 2022 — 8:08 am

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