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 […]

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, […]

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 […]

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 […]

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 […]