It is official! Fiscal Cliff averted!

Mr. Market is in a good mood! The Fiscal Cliff has been averted!

As global stock markets made their 2013 debut, the House of Representatives passed a deal between the White House and Senate Republicans to raise taxes on the rich and put off automatic $109 billion budget cuts for two months.

The deal passed the Senate early on Tuesday, but its fate hung in the balance for hours as House conservatives sought to amend it to include big spending cuts, which would likely have killed it.

In the end, the House voted 257 votes to 167 to pass the original bill with minority Democrats joining a smaller number of majority Republicans to pass the legislation after a bitterly contested and unusual session on New Year's Day.

President Barack Obama planned to make brief remarks at the White House within minutes of passage of the deal, which relieved investors who feared that continued logjam could have sent global stock markets spinning.

Read full article: here.

What a fantastic start to the new year! Happy New Year!

Related post:
President Obama wins! What next?

Marco Polo Marine: A neglected gem.

I have revealed how I diverted some resources away from S-REITs to invest in certain stocks which I feel are undervalued and have the potential for some meaningful capital gains in subsequent months.

DBS Vickers thinks that mid cap offshore plays could catch up with the large caps as risk appetite improves and the industry fundamentals remain strong. I share those sentiments.

Their top picks are Ezion, ASL Marine Holdings and Ezra Holdings.

My pick? Marco Polo Marine.

Persistent insider buying in Marco Polo Marine caught my eyes six months ago. When insiders increase their shares in large quantities, we must suspect that something good is brewing.

UOB is of the opinion that a new upcycle has begun for the OSV sector. This is supported by OCBC which revealed that the OSV to rig ratio will start falling in 2013 and this will favour vessel owners.

Marco Polo Marine together with its 49% owned Indonesian subsidiary ventured into the OSV sector in 2010 and currently own seven OSVs. Net profit received a leg up from their Indonesian subsidiary and doubled QoQ recently.

The scheduled listing of its Indonesian subsidiary on Indonesia Stock Exchange this month is likely to add some 30% to the NAV of Marco Polo Marine, according to Maybank KimEng.

Now, what does all this mean for Marco Polo Marine's current share price? It is too cheap.

ASL Marine Holdings last traded at 67.5c a share and its PER is about 8.9x. For Marco Polo Marine to trade at a PER of about 8.0x, its share price has to be about 50.5c. This is, in fact, conservative because EPS in 2013 is likely to be higher which means a PER of 8.0x will translate into a higher share price. Marco Polo Marine last traded at 38.5c a share.

This is just the beginning. If we believe that a new upcycle has just begun, then, the sector will continue to be upgraded. Indeed, analysts at DBS Vickers have a 12 months price target of 90c for ASL Marine Holdings.

Where would we see Marco Polo Marine's share price then? I wonder.

Related posts:
1. Marco Polo Marine: Persistent insider buying.
2. Marco Polo Marine: Patience will be rewarded.

See: Marco Polo Marine's insider trades here.

Adam and Conrad actually provide the blueprints – and the details – on how to make investing work.

One of the key skills you learn in this book: How to evaluate a business and the potential of its stock – in great depth! Worksheets are provided.

Now: Find out how!