Company writeup: ISOTeam reported record results [29 Aug 2015]

ISOTeam reported its FY15 results on 28 Aug 2015 before market. FY15 revenue and net profit surged 17% and 34% respectively to S$81.7m and S$8.1m respectively. Please see Table 1 for a summary of its results for the past five financial years. Table 1: ISOTeam’s past five financial year performance Source: Company Highlights of FY15 results 1. Once off expenses amounting to a total of S$1.8m In FY15, ISOTeam recorded some once off depreciation expenses amounting to S$1.5m. In addition, it also incurred professional fees due to legal costs and acquisitions of new subsidiaries amounting to S$0.3m. These S$1.8m expenses […]

Ernest’s market outlook 31 Aug 15

Dear all, Last week was a tumultuous week where STI fell to a three year low of 2,808 on 25 Aug, Tues before it recovered 148 points to close at 2956 on 28 Aug, Fri. As per my market update written on 23 Aug, Sun and subsequent emails to my clients on 24 Aug, Mon afternoon and 25 Aug early morning, STI was all time oversold and there were trading (long) opportunities for the nimble traders. All the stocks in my *list of extremely oversold stocks generated positive returns with Ezion, Croesus and Innovalues which posted between 15% – 45% […]

Ernest’s market outlook 24 Aug 15

Dear all, Global stocks slumped last week. Stocks look to open sharply lower with the U.S. markets tumbling 3% overnight. Based on the charts’ analyses below, Hang Seng, STI and FSTS may see some technical rebound in the near term. Nevertheless, all three indices are still entrenched in a strong downtrend. The potential near term technical rebound may yield opportunities for nimble traders who are looking at small potential profits as we are still in a downtrend. I have compiled a list of stocks which are trading at or near all time oversold levels with other key data such as […]

Hi-P 2QFY15 follow up

Dear all Pursuant to my writeup see here, Hi-P managed to narrow its 2QFY15 losses to S$8m vs 1QFY15 -13.8m losses. Interestingly, Hi-P also stated the following guidance in its 2Q results release as follows -Hi-P expects higher revenue and profit in 3QFY15F vs 3QFY14; -Hi-P expects higher revenue and profit in 2HFY15F vs 2HFY14; -Hi-P expects higher revenue and profit in FY15F vs FY14. DMG has raised its target price from $0.43 to $0.56, citing that the worst may be over. However, UOB Kayhian has reduced its target price from $0.73 to $0.625 pegged to a lower price to book ratio. […]

Ernest’s market outlook (11 Aug 15)

Dear all, Asian stocks have seen some pressure for the past two weeks on worries over rate hike in the U.S., weakness in the commodities markets and the slowing growth in China. Here are the technical analyses on the charts. S&P500 chart Two weeks ago, I mentioned that S&P500 may test the recent high of 2,135. It tested 2,133 before profit taking set in. S&P500 closed at 2,078 last Fri. Since 5 Feb 2015, S&P500 has traded within a tight range of 2,040 – 2,135. Based on Chart 1 below, S&P500 seems to be reaching the lower end of the […]

Hi-P has tumbled 42% since 2015 high. What gives?

Hi-P has tumbled 42% since the high of $0.790 on 29 Jan 2015 to close $0.460 today. This underperformance is even more appalling if we compare it against the 7.1% drop in FTSE ST All Share Index over the same period. What has happened to Hi-P and whether this stock will continue to languish in the doldrums? 4QFY14 and 1QFY15 results have disappointed the market Hi-P’s results in the previous two quarters, namely 4QFY14 and 1QFY15 have disappointed the market. After the release of 4QFY14 results, both DMG and UOB Kayhian have reduced their target prices from $0.870 and $0.850 […]

Kep Corp nears all time oversold

Kep Corp has slid 23.3% from $9.53 on 14 Apr 2015 to $7.31 today. RSI touches 10.9 today. This is near its 15 year low oversold level of 9.2 since 2000. Based on Chart 1 below, it is apparent that Kep Corp is in a strong downtrend. However, there is likely to be a technical rebound due to extreme oversold pressures. Near term supports: $7.30 – 7.31 / 7.24 – 7.26 Near term resistances: $7.50 / 7.71 – 7.80 Chart 1: Kep Corp entrenched in a strong down trend Source: CIMB chart as of 3 Aug 2015 Shares likely supported […]