Ernest Lim's investing blog

Unique insights into SGX small caps

Key takeaways from Sapphire’s 2QFY16 results briefing (12 Aug 16)

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Sapphire Corp just announced a sterling set of 2QFY16 results last Wed. However, its share price barely budged. Is this a case of Mr Market being unaware of this stock, or is Mr Market still bogged down by Sapphire’s chequered past?[1] To know more about the company and its upcoming developments, I attended Sapphire’s 2QFY16 results briefing last Thurs, hosted at Peach Gardens. The meeting was hosted by Mr Teh Wing Kwan, Sapphire’s Managing Director and Group CEO and Mr Ng Hoi-Gee, Kit, Sapphire’s CFO, collectively known as (“Management”). Picture 1: Management meetup with analysts, funds and remisiers Source: Company […]

Ernest’s market outlook (5 Aug 16)

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Dear readers, S&P500 has registered another high whereas our STI plunged 117 points, or 4.0% over the past two weeks. How will the markets move from here ? Read on for more.   S&P500 Index Just to recap what I have mentioned on 22 Jul 2016 (see HERE), I wrote “it is good to see that all its exponential moving averages for the S&P500 (“EMAs”) are moving higher with a good degree of separation. However, I am worried by the low ADX and the bearish divergences exhibited by the indicators such as MACD, MFI and RSI. Nevertheless, the break above […]

Ernest’s market outlook (22 Jul 16)

el15

Dear readers, Markets have continued to rally with the U.S indices clocking in a fourth consecutive weekly gain. Will the markets continue to defy gravity to reach new highs? Read on for more.   S&P500 Index Just to recap what I have mentioned on 8 Jul 2016 (see HERE), I wrote “Given the low ADX, bearish divergences between price and OBV, MACD and RSI, it is unlikely that S&P500 may stage a sustainable rally above an intraday all time high of 2,135 on 20 May 2015.” –> On the contrary, S&P500 breached 2,135 and stayed above the level for the […]

Sapphire’s order book hits a record high (15 Jul 16)

el15

Sapphire’s order book hits a record high with RMB873m of worth of infrastructure contracts won on 14 Jul 2016. It seems to be evolving into a serious infrastructure play. However, it is still an under researched, under noticed stock judging from the lack of liquidity and zero analyst coverage.   Noteworthy points on the contracts won On 14 Jul 2016, Sapphire announced that it has clinched RMB873m worth of infrastructure contracts through its engineering, procurement and construction subsidiary, Ranken Infrastructure Limited. There are some noteworthy points in this announcement. a) RMB 300m Jian Cao Ping flyover & RMB 313m to […]

Ernest’s market outlook (8 Jul 16)

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Dear readers, What a difference the past two weeks make! Have you benefited from the sharp rally in the equity markets? Or did u cut loss on your long positions and initiated shorts after the Brexit and cut loss on your shorts due to the sharp rally? Two weeks ago, I said that I might raise my percentage invested from 71% to 150 – 200% on sharp market selloffs (see HERE). I also mentioned that I have told my clients who are mostly in cash to accumulate some stocks on dips. Indices such as S&P500 and STI have soared above […]

Profit from the Panic – Developers’ Deadlines? BREXIT? (30 Jun 2016)

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Profit from the Panic – Developers’ Deadlines? BREXIT? (Guest post) – Developer’s deadlines to sell units are reaching – Where are the opportunities? – Is the Singapore Property Market bottoming out? – If ABSD is removed who will benefit the most? – Does BREXIT pose risks to Singapore Property Markets? What are the other risks?   Developers’ deadlines to sell units are reaching – Where are the opportunities? With many developers hitting their deadlines for Qualifying Certificate (QC) – which need to sell within 5 years of construction else fined 8/16/24% for 1st/2nd/3rd year OR ABSD (developers to pay 15% […]

My interview on Mediacorp Ch 8, 9am, Morning Express 晨光第一线 (24 Jun 2016)

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Dear all, I am pleased to say that I have appeared on Mediacorp Ch 8, 9am, Morning Express 晨光第一线 on 24 Jun 2016. Readers who wish to know my market outlook on Morning Express 晨光第一线 can click the link indicated below. Please scroll the time bar to 14:00 to view it. http://video.toggle.sg/en/tv-show/news/may-2016-morning-express/fri-27-may-2016/407281

Ernest’s market outlook (24 Jun 16)

el15

Dear readers, Are you burnt in the aftermath of THE BREXIT? What should you do now? To cut loss, hold or buy more? Before you make the decision, it is good to consider the various markets and how they are likely to fare in the next two weeks.   S&P500 Index Just to recap what I have mentioned on 10 Jun 2016 (see HERE), I wrote “Given the low ADX, S&P500 may trade between 2,034 – 2,106 (barring Brexit on 23 Jun 2016).” –> Although Brexit happens, S&P500 reached an intraday low of 2,033 on last Fri, just 1 point […]

GKE Corp – A possible turnaround story unfolds (17 Jun 16)

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On 16 Oct 2015, after seeing GKE Corp garnering significant media attention upon entering into a sales and leaseback agreement with Viva Industrial Trust for GKE’s existing headquarters cum warehouse property located at 30 Pioneer Road, I wrote a write-up on GKE. (See here for my previous write-up) Most of the updates outlined in my previous write-up have occurred, thus it is apt to provide an update on GKE’s upcoming developments in 4QFY16F (Financial year ends in May) and FY17F and beyond.   Gain of S$12m to be recognized in 4QFY16F According to GKE’s announcement, the disposal of 30 Pioneer […]

STI dives 130 pts in 1 week! Time to buy in? (16 Jun 16)

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STI has tumbled 130 points, or 4.5% from an intraday high of 2,882 on 9 Jun 2016 to close 2,752 on 16 Jun 2016. The recent rapid sell off seems to reveal some interesting opportunities especially for those readers who have taken profit and moved to mostly cash (similar to me) since last week. Like most people, I am not clairvoyant and am not always able to catch the lowest level to buy into stocks.   Also, I will not know for sure whether: 1. Brexit will occur; 2. What is the exact impact (short term, medium term, long term […]