Banyan Tree chart as of 17 Apr 17

Banyan Tree – collaborations with AccorHotels and Vanke may spark re-rating (17 Apr 17)

Banyan Tree recently clinched two noteworthy strategic partnership with AccorHotels and Vanke on 8 Dec 2016 and 23 Jan 2017 respectively. Since 23 Jan 2017, Banyan has largely traded between $0.465 – 0.530. It closed at $0.510 on 17 Apr 2017. If a company can catch the eyes of China’s largest property player Vanke and Europe’s largest hotel group / the world’s fifth largest hotel group AccorHotels, there must be some merit to it. I have managed to fix an exclusive 1-1 meeting with Mr Eddy See, Group MD and Mr Clement Ong, Head of Strategic Planning & Investment (“Management”) […]

Midas chart as of 7 Apr 17

6 concerns investors have with Midas (7 Apr 17)

Midas has slumped 14% post a 76% growth in its FY16 results. It closed at $0.225 on 7 Apr 2017 which was near the all-time closing low of $0.210. Some of my high net worth clients have told me their concerns on Midas. I have since met Mr Patrick Chew, CEO of Midas and Mr Liaw Kok Feng, CFO Midas for a 1-1 discussion. Here are my key takeaways.   Key takeaways from my concerns posed to the management Concern 1: Orders momentum have slowed for its aluminium extrusion segment According to management, they remain positive for their aluminium extrusion […]

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Laggard stocks: Chart outlook for ISOTeam, Midas and Sapphire (17 Mar 17)

Notwithstanding the rally in the equity market, there are some stocks which continue to be laggards and are consolidating around their key support areas. If the market continues to stay buoyant, it may be a matter of time before funds rotate to the following laggard stocks, namely ISOTeam, Midas and Sapphire.   1.ISOTeam closed unchanged $0.390. Day range $0.390 – 0.395. Ave analyst: $0.600 ISOTeam has been testing the support area of around $0.375 – 0.390 for the past four days. Short term exponential moving averages (“EMA”) are moving lower with 20D EMA crossing below 50D EMA. It is fortunate […]

Midas chart as of 24 Feb 17

Midas issued positive profit alert! (24 Feb 17)

Dear all, Midas issued a positive profit alert yesterday. It cited “…based on the Board’s preliminary review of the unaudited management accounts of the Group for the year ended 31 December 2016, the Group expects to record a substantial increase by over 70% in its profit attributable to owners of the Company for the year ended 31 December 2016 as compared to the same period of previous year. Such increase was mainly attributable to the contribution from our Aluminium Stretched Plates Division which we completed the acquisition on 27 July 2016.” What does this mean?   My personal take on […]

Sunpower chart as of 8 Feb 17

Chart highlights on Midas, Sapphire, Sunpower, Terratech (9 Feb 17)

Dear readers, The animal spirits seem to have finally descended on our Singapore market! Our STI is one of the best performing indices with a blistering 6.4% year to date return. Our FSTS ST Small Cap Index has returned 3.8% year to date. I have highlighted four charts which (I feel) deserve attention. Do note the caveats below.   Midas With reference to my write-up on Midas dated 3 Feb 17 (click HERE), Midas’ inverse head and shoulders pattern seems to be confirmed with the decisive upside break above its 200D exponential moving average (“EMA”) and neckline of around $0.230 […]

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ISOTeam on the verge of a potential bullish chart breakout (9 Jan 2017)

ISOTeam recently caught my attention with a surge in price, accompanied with volume. Based on Chart 1 below, ISOTeam has been trading in a tight range of $0.375 – 0.405 since 30 Aug 2016. ISOTeam closed unchanged at $0.395 on 9 Jan 2017. All the exponential moving averages (“EMAs”) are turning higher with 20D EMA on the verge of forming a golden cross with 50D EMA. Amid positive placed DIs, ADX has turned higher from 17 on 27 Dec 2016 to 30 on 9 Jan 2017, indicative of a trend. OBV has strengthened, together with other indicators such as RSI […]

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Sapphire – disposal of Mancala, implications and updates (30 Dec 16)

On the last trading day of the year, Sapphire Corp announced that it has entered into conditional sale and purchase agreements (collectively, the “SPAs”) with each of China Vanadium Titano-Magnetite Mining Company Limited (“CVT”) and Toe Teow Heng (“TTH”) relating to its mining services business, Mancala. Is this a positive or negative development? What are the implications? Let’s take a closer look.   Disposal of Mancala and its implications Subject to the terms and conditions of the SPAs, CVT and TTH have agreed to acquire 49% and 32% of the issued and paid up capital of Mancala Holdings for a […]

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Ernest’s market outlook (14 Oct 16)

Dear readers, Although my market outlook is a biweekly issue, the technical outlook for some technical indices has deteriorated and I view it timely to update my clients. See below.   S&P500 Index Just to recap what I have mentioned on 7 Oct 2016 (see HERE), I wrote “all the exponential moving averages (“EMAs) are converging and trending higher. ADX has slipped from 22 on 23 Sep 2016 to 20 on 7 Oct 2016, indicative of a lack of trend. Indicators are neutral and stuck in a range. Although the trend continues to be an uptrend until proven otherwise, my […]

GKE chart as of 17 Jun 16

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

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 […]

S&P500 chart as of 10 Jun 16

Ernest’s market outlook (10 Jun 16)

Dear readers, Two weeks ago, I mentioned that I have increased my stock holding from 36% to 80% by accumulating on one stock on weakness. I have since taken profit on this single largest stock holding and have pared my stake in another stock. Besides the stock sales, I have increased my stake in another stock on weakness. All in, my percentage invested was reduced from 80% to approximately 31%. I am unlikely to exceed 50% invested in the next two weeks, unless I spot some extremely attractive opportunities as I remain cautious on the general market. Read on to […]