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.

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Eat Right 4 Your Type for a Healthy New Year!

I suggested to a friend who has been feeling lethargic of late to try eating right for his blood type. This is something I started doing a couple of years ago. Although it is hard to say if it is psychological, I always feel better when I eat what I am supposed to based on my blood type.

Better? Yes, I would feel less bloated. My nose would also stay clear instead of mucousy. The back of my throat would not itch. There is a general sense of well-being when I follow the blood type diet.

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There are connections among blood type, food, and disease.

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See:
Eat Right 4 Your Type Complete Blood Type Encyclopedia: The A-Z Reference Guide for the Blood Type Connection to Symptoms, Disease

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