STI chart as of 26 Feb 16

Ernest’s market outlook (26 Feb 16)

Dear readers, S&P500 closed higher for the 2nd week. It is around an important inflexion point around 1,950 (to be exact approximately 1,946 – 1,954) where a sustained break above it indicates a likely bullish double bottom formation. STI is also flirting around an important potential double bottom neckline approximately 2,645. It seems like markets are turning bullish finally a poor start of the year. Or are they?? Read on to find out more on their technical outlooks…   S&P500 Index Just to recap what I have mentioned on 12 Feb 2016 (read here), I wrote “As the overall trend […]

Riverstone chart as of 22 Feb 16

Riverstone has fallen 24% since 26 Jan 16! (22 Feb 16)

Dear all, Riverstone has fallen 24% since 26 Jan 16 to trade around $0.950 due in part to the following factors: a) Weakening of USD against MYR; b) Specific sell off in the Malaysian glove makers; c) Overall weak market sentiment; At the time of writing this, Riverstone is trading +0.015 to 0.950. Day range is $0.935 – 0.955. According to Bloomberg, its valuations remain attractive around 15x FY16F PE vis-a-vis its Malaysian counterparts of around 18x FY16F PE. Based on historical performance, Riverstone’s past quarters have been typically beating analysts’ expectations. 4Q results should be out on 24 Feb, […]

STI chart as of 12 Feb 16

Ernest’s market outlook 12 Feb 16

Dear readers, Happy Chinese New Year! Hope you have had a great and enjoyable CNY celebration! However, for our markets, it does not seem as joyous because Asian markets posted declines immediately after CNY. S&P500 plunged to touch a two-year low on 11 Feb 2016. Read on to find out more on their technical outlooks…   S&P500 Index Just to recap what I have mentioned on 22 Jan 2016 (read here), I wrote “As the overall trend is bearish in the medium term, any rebound is likely to be short lived and arrested around the near term resistance region of […]

Sapphire chart as of 5 Feb 16

Sapphire – proxy to infrastructure growth (5 Feb 2016)

Looking at Bloomberg’s classification, Sapphire is still classified in the “Metals & Mining” industry. However, Sapphire has completed its acquisition of China-based Engineering, Procurement and Construction (“EPC”) business, Ranken Infrastructure Limited (“Ranken”) on 1 Oct 2015. According to Sapphire’s press release, Ranken is China’s second largest privately-owned integrated rail transport infrastructure construction group and the only privately-owned operator in China which has obtained the prestigious full AAA-certification for design, construction and project consultation in the rail sector. Ranken’s clients are mostly state owned enterprises (“SOE”) and Fortune-500 companies in China. Going forward, Ranken will be Sapphire’s largest revenue contributor. It […]

Thoughts on Sino Grandness EGM (5 Feb 2016)

Dear all, Just to share what I have sent to my clients this morning (i.e. 5 Feb 2016), just a few minutes after market opens: Sino Grandness announced yesterday night that it is calling for an EGM to seek shareholders’ approval for the proposed disposal and / or the proposed material dilution of 20% or more of the company’s shareholding interest in Garden Fresh, pursuant to the proposed listing of Garden Fresh (its subsidiary) on an internationally recognised stock exchange. The EGM will be held on 23 Feb, 10am. Please see the link here for the notice of EGM.   […]

Guocoleisure chart as of 3 Feb 16

Guocoleisure – aggressive share purchase raises eye brows (3 Feb 2016)

GL, formerly known as Guocoleisure, looks interesting after the recent share price decline and the aggressive *6.4m share purchase between $0.830 – 0.858 done by Mr Quek Leng Chan in Jan 2016. It has traded within a range of $0.830 – 0.940 for the past 4 months. Based on Bloomberg, the average analyst target and estimated div yield are $1.260 and 2.7% respectively.   Some noteworthy points 1. FY16F likely to be stronger than FY15 FY16F is likely to be stronger vis-à-vis FY15 because a) Refurbished hotels such as Amba Hotel Charing Cross (239 rooms) and the Every Hotel Piccadilly […]