Analyst 21 Sep 20

China Railway Construction (01186.HK) – Bargain buy, or value trap? (22 Sep 2020)

China Railway Construction (“CRCC”) recently caught my attention as it has tumbled approximately 44% from an intraday high of $9.99 on 5 Mar 2020 to close HKD5.64 on 21 Sep 2020. Is this a bargain buy, or a value trap? Let’s take a look.   First up, a description of CRCC Quoting from its 1HFY20 results, CRCC’s businesses cover a variety of construction, survey, design and consultation, manufacturing, real estate development, logistics and materials trading and other business with refined industry chain covering scientific research, planning, survey, design, construction, supervision and management, maintenance, operation, investment and financing, etc.   Six […]

Starburst chart as of 23 Aug 20

Starburst – building order books; bright outlook (24 Aug 2020)

In May 2019, I met Starburst’s Managing and Executive Director Mr Yap Tin Foo. Since Mar 2020, Starburst has been on a roll in winning contracts and I believe it is an opportune time to meet Mr Yap again. Despite Mr Yap’s busy schedule, he agrees to meet me on 1-1 basis to share his company’s business operations and prospects. Below are some of my takeaways from my discussion with him and from its recent results briefing.   Company description Quoting from Starburst’s press release, it is an engineering specialist in a niche industry, and designs, fabricates, installs and maintains […]

Analyst 30 Jul 20

China Everbright Water and NetDragon look interesting… (30 Jul 2020)

This week, notwithstanding the continuous interest in glove companies, pharmaceutical companies etc, there are some companies which seem to have some steady inflows, based on chart observations. Two companies come to my mind, namely NetDragon and China Everbright Water Limited (“CEWL”). What is so interesting about the above companies? Let’s take a closer look at its chart and other noteworthy points. 1. NetDragon – on an uptrend, with all 13 analysts calling it a BUY Company description – before I delve into the chart… Some readers may not be familiar with NetDragon (HKSE: 0777). According to NetDragon company description, it […]

Analyst 8 Jun 20

China Everbright Water – bullish break above trading range (10 Jun 2020)

This week, China Everbright Water Limited (“CEWL”) catches my attention this week. Since 17 Mar 2020, CEWL has been trading sideways from $0.200 – 0.230. Based on chart, CEWL seems to be on the verge of a breakout. It last trades at $0.235. What is so interesting about CEWL? Let’s take a closer look at its chart and other noteworthy points.   CEWL – Broke out of 2+ month trading range with volume expansion Bullish chart underpinned by rising EMAs and volume Based on Chart 1 below, since 17 Mar 2020, CEWL has been trading sideways from $0.200 – 0.230. […]

analyst 2 Mar 20

Singpost – grossly oversold; closes at prices last seen in May 2009! (2 Mar 2020)

Dear all, It has been an extremely busy and hectic period with the U.S. indices clocking in their largest record weekly percentage drop last week. This week, Singpost caught my attention. Singpost has fallen 17.4% from its intraday high of $0.950 on 3 Jan 2020 to close at $0.785 today which is the lowest close since 5 May 2009. RSI closes at a grossly oversold level 10.7, almost at an all-time low last seen in June 2003. Why does it attract my attention? Read on for more.   Chart – Seems to indicate selling pressures may ease in the near […]

Analyst target 3 Jan 20

China Aviation – chart looks bullish amid analyst buy calls; below average valuations, supported with 3.6% dividend yield (3 Jan 2020)

Dear readers, Happy New Year! Hope your new year has been great. Market has been extremely interesting for the past couple of months. Recently, China Aviation (“CAO”) caught my attention with its bullish chart and looks interesting on a risk to reward aspect. CAO closed at $1.30 last Fri. Day range was $1.29-1.32. Read on for more.   Why did CAO catch my attention? a) Average analyst target price $1.70 With reference to Figure 1 below, average analyst target is around $1.70. Together with an estimated dividend yield of around 3.6%, CAO offers a total potential return of around 34%. […]

Table 1_Stock price performance for some tech stocks

Frencken nears 14Y overbought RSI level amid 10Y high prices (19 Nov 2019)

This week, Frencken has caught my attention with its 34% surge from $0.690 on 31 Oct 2019. It closed $0.925 on 19 Nov 2019. At $0.925, this is very near to its 10-year high closing price $0.930 set on 18 Nov 2019. Since 31 Oct 2019, it has risen 10 out of the past 13 trading days with two days having closed unchanged. RSI closed at 88.1 on 19 Nov 2019, which is near a 14 year overbought level. Based on Frencken’s chart, it seems to present a favourable risk to reward short trade. Please see the basis and more […]

Analyst target 12 Nov 19

Yangzijiang – may be ripe for a bounce (12 Nov 2019)

This week, besides Food Empire which caught my attention (click HERE), Yangzijiang (“YZJ”) also caught my attention for being a laggard. It has given up all the gains since its large 7% jump on 5 Nov 2019. Notwithstanding the recent mild profit taking, it seems to be holding up well above its uptrend line. Given that its results are just around the corner, it may be an opportune time to take a look at YZJ. Do take a look at the basis, and more importantly, the risks.   Basis A) Chart analysis – a breakout / breakdown seems to be […]

Table 2_Food Empire's peers

Food Empire – potential bullish chart development amid volume expansion (11 Nov 2019)

This week, Food Empire caught my attention with their potential bullish chart developments amid volume expansion. This may be an opportune time to take a look at Food Empire on the back of its potential bullish chart and strong results released this evening. Do take a look at the basis and more importantly, the risks.   Basis A) Chart looks positive with strengthening indicators and volume Based on Chart 1 below, Food Empire has been trading in six-month trading range $0.490 – 0.550 and is now on the verge of challenging its key resistance around $0.550 with increasing volume. It […]

Sunpower chart 5 Nov 2019

Two stocks, ISOTeam and Sunpower with potential bullish stock charts (5 Nov 2019)

This week, two stocks, namely ISOTeam and Sunpower caught my attention with their potential bullish chart developments amid volume expansion.   1. ISOTeam Chart looks positive with strengthening indicators and volume Based on Chart 1 below, ISOTeam has been trading in a range $0.225 – 0.245 since 2 Aug 2019. ADX is starting to rise (closes at 18.7) amid positively placed DIs. In addition, indicators such as MACD, OBV and RSI are strengthening. MACD has done a bullish MACD line crossover and centerline crossover. A sustained breach above $0.245 with volume expansion is positive for the chart with an eventual […]