Ernest Lim's investing blog

Unique insights into SGX small caps

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Hi-P – bearish engulfing candle forms after rising for 12 out of 15 days (29 Oct 2019)

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This week, Hi-P has caught my attention with its 33% surge from the intra-day low of $1.13 on 7 Oct 2019 to trade to an intra-day high of $1.50 on 29 Oct 2019. In addition, it has risen 12 out the past 15 trading days with RSI touching a recent high of 81.8 on 25 Oct 2019. Based on Hi-P’s chart, it seems to present a favourable risk to reward short trade. Please see the basis and more importantly, the risks.   Basis a) Hi-P trades above the higher analyst target price $1.32 Average analyst target price for Hi-P is […]

Eagle Hospitality Trust falls to all time low price amid all time low RSI (28 Oct 19)

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Dear all, S&P500 hit a near intra-day record high at 3,027 on 25 Oct 2019 (one-point shy of its intra-day record high 3,028 on 26 Jul 2019). However, such optimism and risk on sentiment cannot be felt on this SGX listed stock Eagle Hospitality Trust (“EHT”). It fell 16% last Friday to close $0.545. This is an all-time low price since its IPO (IPO offer price US$0.780) on 24 May 2019. Let’s take a look why this EHT has under-performed and why it has caught my attention this week.   Reasons why EHT has underperformed till date The below list […]

Chasen – a bullish double bottom making in the making? (23 Oct 19)

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Dear all, This week, Chasen catches my attention as it seems to be forming a bullish double bottom on its chart. I have appended my personal chart analysis, together with some potential positive and negative points on the company. Read on for more below.   Chasen’s chart analysis Based on my personal interpretation of Chasen’s chart, it seems to have tested its double bottom neckline around $0.070-0.072 for the past few days. For the past two days, it managed to close higher consecutively with above average volume. In fact, Chasen closed today with 7.3m shares changing hands, 3.8x above its […]

Nasdaq – potential bearish head and shoulders formation in the making? (29 Sep 19)

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With reference to my earlier write-up (click HERE) titled “S&P500 at 2,979 – limited potential upside (8 Sep 19)”, S&P500 touched intraday highs of 3,021 – 3,022 on 12 Sep 2019 and 19 Sep 2019 but it was still lower than the record intraday high of 3,028 on 26 July 2019. S&P500 closed at 2,962 on 27 Sep 2019. Hang Seng and STI touch one-month intraday highs on 13 Sep 2019 before profit taking sets in. October is likely a volatile month ahead given (just to cite a few examples) more news on trade talks (e.g. U.S vs China; U.S. […]

S&P500 at 2,979 – limited potential upside (8 Sep 19)

el15

With reference to my earlier write-up (click HERE) titled “Why am I cautious going into July…”, July was coincidentally the peak for S&P500. Hang Seng touched an intraday high of 29,008 on 4 Jul 2019 before slumping 4,108 points to an intraday low of 24,900 on 15 Aug 2019 (Hang Seng closed at 26,691 on 6 Sep 2019.) Personally, given the current market levels and information, I am not comfortable to raise my current percentage invested from 53% to significant levels (say >80%). Why am I cautious in the market? Do read on…   Factors supporting my cautious basis Above […]

HRNet – All time oversold levels amid lowest price since IPO! (29 Aug 19)

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Dear all Another exciting week! This week, HRNet caught my attention as it approaches all time oversold RSI level. In addition, it is trading at the lowest price $0.560 since its IPO price at $0.900. Given the basis below, my personal view is that HRNet may be presenting a favourable risk reward setup for a long trade. Do look at the basis and more importantly, the risks inherent in such trades.   My personal basis a) Average target price $0.93! Based on Figure 1 below, average analyst target is around $0.930, representing a potential capital upside 66%. Estimated div yield […]

Hong Fok hits 10-year overbought level and up 12 out of 13 trading days! (19 Mar 19)

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This week, Hong Fok catches my attention this week because a) It has risen approximately 33% in 12 out of the past 13 trading days from an intraday low of $0.685 on 28 Feb 2019 to close $0.910 today. It is noteworthy the 13th day is at an unchanged level. In other words, Hong Fok has not had a down day since 28 Feb 2019; b) At $0.910, this is near its 25 Oct 2015 high of around $0.91-0.920. The previous high which is higher than $0.920 occurred in Sep 2014. I.e. Hong Fok is trading near a four plus […]

Hi-P – Chart looks interesting with rising ADX, amid positively placed DI (21 Feb 19)

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This week, Hi-P caught my attention due to its chart. It last trades at $0.990. Day range 0.985 – 1.00. Let’s take a look. Basis below 1.Chart looks interesting with rising ADX, amid positively placed DI Hi-P has been trading in a tight range $0.885 – 0.960 since 8 Jan 2019 and broke out with strong volume on 11 Feb 2019. ADX has been rising to trade 31.6 amid positively placed DI, indicative of a trend. RSI last trades 57.9. Today is T+8 of 11 Feb upmove. There has been some price weakness on 15 & 18 Feb as I […]

Sing Medical – Chart seems to be strengthening (13 Feb 2019)

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This week, Sing Medical’s (“SMG”) caught my attention. At the time of writing this write-up, SMG is trading +0.005 to $0.430. Day range 0.425 – 0.430.   Some interesting observations on SMG a) Chart seems to be strengthening Based on Chart 1 below, SMG seems to have breached the near term downtrend line established since Mar 2018. Today is T+7 of the sharp upmove dated 31 Jan 2019 thus, I guess those contra players (who plan to contra and not hold the stock) have already exited. Indicators such as OBV, RSI and MACD are strengthening. ADX last trades 34.5 on […]

S&P500 has jumped 10.6% since 26 Dec! Should we chase the rally? (12 Jan 2019)

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Dear all Since my write-up on 23 Dec 2018 (see HERE), S&P500 has jumped approximately 7.5% since then. In fact, S&P500, after touching an intraday low of 2,347 on 26 Dec 2018, it has risen 249 points or 10.6% to close 2,596 on 11 Jan 2019. Is this the start of another upcycle in equities? Should we chase the rally? Below are some of the positive and negative points which readers can take into consideration before we can arrive to a well thought out answer.   Potential positive points supporting the continuous rally a) Fed may acknowledge rising risks to […]