(07-02-2014, 11:29 AM)Wildreamz Wrote: [ -> ]Common sense, SWOT analysis:
1. Strengths: characteristics of the business or project that give it an advantage over others.
2. Weaknesses: characteristics that place the business or project at a disadvantage relative to others
3. Opportunities: elements that the project could exploit to its advantage
4. Threats: elements in the environment that could cause trouble for the business or project
i always wanted to try SWOT analysis when buying stock but given up because its usually highly subjective analysis.
Take BRC Asia and LeeMetal, i seriously do not know how to drill down to their businesses to conduct a SWOT analysis that can give me valuable insights. I ended up relying solely on their financials alone and discard the rest.
I think porter's 5 forces is a better framework.
If anyone could provide some detail advise on this area where to start, it would be good
BRC ASIA
Company Background
The BRC Group's principal activity is the designing, manufacturing and marketing of steel mesh which is sold under the "BRC" brand name. Currently, the Group has operations in Singapore, Hong Kong and Shanghai. The Company was one of the first companies to pioneer the use of prefabricated steel mesh in the local construction industry and was granted pioneer status by the Singapore government in 1963. It has since denominated the wire mesh market with a 45 percent market share in Singapore
The Company was incorporated in Singapore in 1938 as the Malayan Wire Mesh & Fencing Co Ltd. In 1960, the Company introduced standard mesh and since then, it has extended its product line to include non-standard and customised mesh, which is used mainly in the reinforcement of floors and walls. In the 1990s, the Company developed a wide range of prefabricated products including beam and column cages, completely prefabricated beam and column reinforcement, staggered mesh, twin-wire mesh and pile cap cages.
The Company's holding company is Hall AG, incorporated in Switzerland, while the ultimate holding company is Acertec Holdings Ltd, incorporated in the UK.
Lee Metal
Company Background
Lee Metal Pte Ltd was incorporated in Singapore on 27 December 1982. The name was changed to Lee Metal Group Ltd on 4 April 2000 when it adopted public status.
The Company is an integrated one-stop shop supplying reinforcement steel products without making heavy capital investments in steel mills. Instead it works with a network of steel mills. The Company also has a complementary steel recycling materials (SRM) division which supports its main business as well as land and marine logistics capabilities for the transportation of these products to local and overseas customers.
The Company sources its steel products from various countries including Turkey, Indonesia, Thailand, Mexico, Malaysia, Romania, China and Ukraine. It has a domestic network of suppliers from whom it substantially sources for its SRM. The reinforcement steel products are sold principally to local contractors for use in the domestic construction and infrastructure industry and SRM is exported to regional steel mills for recycling. The Group has an L6 registration status with the Building and Construction Authority (BCA) which allows it to bid for public sector projects of unlimited value and HDB approved supplier status which allows it to bid for bulk contracts for the supply of cut-and-bend reinforcement steel bars to HDB projects.
In 1999, the Group expanded its business activities to include manufacturing of steel welded mesh and has obtained approval from HDB to supply steel welded mesh for HDB projects.
In February 2000, the Company secured land from the PSA for the development of a seafront integrated steel merchandising and cut-and-bend centre at Sembawang Port.
To derive benefits in terms of better operational efficiencies and cost savings in itsSRM operations through economics of scale and synergy, on July 2001, the Company merge its SRM operations with Natsteel Ltd's subsidiary, Materials Recycling Pte Ltd, to form Natferrous Pte Ltd. As a result of the merger, the Group currently owns 20 percent of NatFerrous Pte Ltd. To cement the collaboration, the Company has issued 60m shares of $0.05 each to Natsteel Ltd, representing 16.7 percent of the enlarged share capital after the alloment.