Ernest’s market outlook 28 Sep 15

Dear readers, The past two weeks have been eventful with the conclusion of the FOMC meeting on 18 Sep with no rate hike, amid concerns on an uncertain outlook for global growth, recent financial-market turmoil and low inflation. However, during Fed Chair Yellen’s speech at the University of Massachusetts at Amherst on 25 Sep morning (Singapore time), she said that the Fed is on track to raise interest rates in 2015, barring unforeseen economic surprises. Markets have whipsawed as they try to determine the timing of the rate hike (the first in almost a decade) and its impact on the […]

Ernest’s personal compilation of stocks via the following classifications

Markets have been especially volatile for the past one week. I have taken some time to generate stocks listed on the STI via the following four classifications. I have sent the complete lists to my clients and will be sending the lists to the readers on my email loop. I have only appended the top ten stocks of each classification below for your general reference. For those who wish to get the complete list, you can consider to opt in to my email loop. 1. Lowest PE Criteria Sort by lowest estimated FY15F PE FY15F PE <=12 x Adj market cap in […]

DBS’s ASEAN Small Mid-Caps Radar highlights Cheung Woh Tech

According to DBS, Cheung Woh (“CW”) has turned profitable from losses of S$1.5m in FY13 to net profit of S$12.6m in FY15. DBS also wrote that CW has at least one new HDD component pending introduction to the market in 2016. DBS also cited CW’s valuations are attractive at 6% dividend yield and 5x FY15 PE based on the premise that CW can sustain its earnings. For more info on CW, pls refer to my earlier writeup here. Disclaimer Please refer to the disclaimer here .

Ying Li’s current share price is lower than GFC!

Amid the backdrop of the recent market weakness, I have done my personal compilation of stocks whose past year Price to Book Value (“P/BV”) are lower than their average five year P/BV (see my for more information.) I noticed that Ying Li International Real Estate Limited (“Ying Li”) past year P/BV is only 0.38 and is significantly below its average five year price to book of around 1.19. However, as there is no recent rated coverage on Ying Li, I have left out Ying Li in my personal compilation of stocks above. Notwithstanding this, Ying Li looks interesting and […]

Ernest’s market outlook 14 Sep 2015

Dear all, I have been doing my regular market analysis (homework) and after reading many pessimistic or “not so good” reports, I decided it is an opportune time to do a short write-up on our Singapore market. Recent sell off in the equity markets due to The recent sell off may be attributable to the following reasons a) Exodus of funds from equity markets Based on Figure 1 below, U.S. funds saw the largest weekly outflows amounting to US$12.3b, the largest since 2000. The Asia funds suffered US$4.9b of weekly outflows. Figure 1: Exodus of funds b) Technical breakdown in the […]