Ernest Lim's investing blog

Unique insights into SGX small caps

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

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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 […]

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

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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 […]

Ernest’s market outlook (14 Oct 16)

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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 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 […]

Ernest’s market outlook (10 Jun 16)

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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 […]

Innovalues’ potential bullish break in the making? (3 Jun 16)

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On 17 May 2016, I wrote that Innovalues’ profit taking may be over soon (see here) and a break above $0.925 – 0.935 on a sustained basis should negate the bearish tinge in its chart. It was coincidental that Innovalues surged 6.5% or $0.060 to close $0.985 on the following day (18 May 2016) on strong volumes and has not traded below $0.925 since then. What’s next for Innovalues? Read on for more.   Chart analysis After hitting an intraday high of $1.015 on 23 May 2016, Innovalues has been consolidating its gain. Based on Chart 1 below, it seems […]