Ernest Lim's investing blog

Unique insights into SGX small caps

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STI – having closed at a record YTD high, will it continue higher? (7 Nov 2021)

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Dear all With reference to my market outlook published on 3 Oct (see HERE) citing opportunities in our Singapore market, STI has soared 191 points, or 6.3% from 3,051 on 1 Oct to close at a year to date high 3,242 on 5 Nov. Will STI continue to march higher, or will there be some profit taking?   Very briefly, my personal view is It is likely that STI may face some profit taking in the near term, attributable in part to the following factors: a) With reference to Figure 1 below, MSCI Singapore index will undergo a rebalancing in […]

Markets are “bubblish”, or aren’t they? (5 Apr 2021)

el15

Dear all Markets have been on a tear for the past five months. Since my write-up published on 1 Nov 2020, citing opportunities in our Singapore market (click HERE for the write-up), STI has soared 786 points, or 32.4% from 2,424 on 30 Oct 2020 to close 3,210 on 5 Apr 2021 (intra-day high today was 3,212). At the time of writing this, S&P500 futures are trading at 4,040, translating to around 24% gain over the same period. In fact, STI is the 2nd best performing market for 1Q2021 amongst 18 global benchmarks. Are markets in the midst of a […]

Thai Bev may be ripe for a bounce; BeerCo IPO potential near term catalyst (29 Mar 21)

el15

Thai Bev has slumped 14% from an intraday high of $0.850 on 8 Feb to close $0.735 on 29 Mar 21. It is looking interesting again as it hovers around its strong confluence of supports from $0.715 – 0.725. Personally, it seems ripe for a technical bounce. Besides the technical outlook, Thai Bev has the highest potential upside among the STI component stocks with a potential capital upside of around 21%! What else is interesting about Thai Bev? Read on for more.   Interesting points on Thai Bev a) Highest potential capital upside for STI component stock With reference to […]

Tianneng Power trades at only 1/3 the value of its listed subsidiary Tianneng Battery! (8 Mar 2021)

el15

Dear all Tianneng Power (00819.HK) (“TP”) caught my attention recently. It has slumped 40.5% from an intraday high of HKD22.55 on 13 Jan 2021 to close HKD13.42 on 8 Mar 2021. At HKD13.42, it trades at only 1/3 the value of its listed subsidiary Tianneng Battery! Besides this sharp plunge and significant valuation gap, what else does TP have to catch my attention? Read on for more.   First up, a description of TP Quoting from its 1HFY20 results, TP was founded in 1986 and was listed Main Board of The Stock Exchange of Hong Kong Limited as the “First China […]

Yangzijiang looks interesting; tests support $0.940 – 0.980 (8 Feb 21)

el15

Yangzijiang (“YZJ”) has weakened approximately 13% from $1.11 on 13 Jan 2021 to close $0.970 on 5 Feb 2021. It has significantly underperformed STI (STI only dropped around 3% over the same period) and is the top STI constituent stocks with the highest potential return (see HERE). Why is it interesting? Read on for more…   Interesting points on YZJ a) Orders are likely to improve in FY21F Based on DBS Research 3 Dec 2020 report, the surge in China (Export) Containerized Freight Index (highest since Mar 2015) and the tripling of the Baltic Dry Index may prompt ship owners […]

Jiutian – still on an uptrend, tests resistance $0.101 (2 Feb 21)

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Dear all With reference to my write-up on Jiutian posted on my blog on 2 Dec 2020 (click HERE), Jiutian touched an intraday low of $0.066 on 14 Dec 2020 before touching an intraday high of $0.116 on 25 & 26 Jan 2021. At the time of this write-up, Jiutian is trading at $0.101 and is on track to test an important resistance $0.101. At current levels, Jiutian seems interesting on the following basis: A) Average selling prices (“ASP”) have improved from the recent low seen in Dec Based on the DMF price as shown on this website (click HERE), […]

My thoughts on Sing Medical Group’s possible share transaction (29 Dec 20)

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Dear all Sing Medical Group (“SMG”) announced on 18 Dec 20 that the Company is currently in discussions with a third party regarding a possible transaction involving the Company’s shares. The discussions are preliminary and there is no certainty or assurance that such discussions will progress beyond the current stage or that any transaction will materialise as a result of such discussions.   Why am I interested in SMG? My personal view is that at $0.315, given a potential share transaction scenario, the risk reward seems favourable. Please refer to my basis and the risks as highlighted below: 1) Past […]

Jiutian – proxy to economic recovery and exposure to EV sector (2 Dec 20)

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Dear all Since my write-up “Singapore – Asia’s worst equity market YTD, any opportunities ahead?” posted on my blog on 1 Nov 2020 (click HERE) citing opportunities in our Singapore market, Singapore market (as represented by STI) has clocked in its best monthly return in Nov 2020 since May 2009, up 15.8%! In the U.S., the strong market sentiment is filtering to its small mid cap space with Russell 2000 hitting record high last week. For those readers who are looking for Singapore small caps which are overlooked by the market, Jiutian Chemical (“Jiutian”) may be an interesting company to […]

City Dev falls nine out of ten sessions; near Mar 2020 low amid oversold RSI (2 Nov 2020)

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Dear all, Since 19 Oct 2020, City Dev has fallen nine out of ten sessions with a cumulative drop of 20%. City Dev closed at $6.20. Let’s take a look why this City Dev has slumped and why it has caught my attention.   Reasons why City Dev has underperformed The below list of likely reasons is not exhaustive. It is just based on my personal view what may have caused City Dev’s underperformance. 1) Concerns over how much support is required by Sincere Property Group Concerns over how much support is required by Sincere Property Group (“Sincere”) flare up […]

Singapore – Asia’s worst equity market YTD, any opportunities ahead? (29 Oct 20)

el15

Dear all It is less than a week from the U.S. election. U.S. markets are understandably jittery. S&P500 has fallen 316 points, or 8.9% from its intraday high of 3,550 on 12 Oct 2020 to touch an intraday low 3,234 on 30 Oct 20. In fact, S&P500 has tumbled 195 points or 5.6% this week. S&P500 closed at 3,270 on 30 Oct. The media has written extensively on the risks surrounding U.S. election since months ago hence the election event risk is hardly a new one. Examples of risks which media has written about is the possibility on contested election […]