Chart 1_record order book as of 10 Aug 2018

ISOTeam trades near 4 year low despite record order books and bright outlook (10 Jan 19)

ISOTeam (“ISO”) caught my attention. Despite sitting on a record order book, ISO has tumbled approximately 44% from an intra-day high of $0.385 on 10 Apr 2018 to close near a four year low at around $0.215 on 10 Jan 2019. The share price decline was attributable in part to its 4QFY18 surprise loss announced in Aug 2018 (financial year ends in Jun). Nevertheless, my gut feel is that 4QFY18 should mark the trough in earnings and results should improve on a quarter on quarter basis in the next few quarters. As this company is a potential turnaround play, I […]

SIA Engineering analyst target 26 Dec 18

SIA Engineering trades at 9-year low price and 10-year low valuations (26 Dec 18)

SIA Engineering (“SIE”) catches my attention this week because 1) Share price has fallen to the lows last seen in May 2009 – 9 +year low with negative news, more or less well known. It last trades at $2.20 on 26 Dec 2018. Based on Maybank’s report out this month, SIE management has flagged out challenges in their industry approximately two years ago –> on lower maintenance frequency required by newer aircraft and fleet growth at low cost carriers (“LCC”) requiring SIE to think of new solutions to reduce aircraft downtime at hangars; 2) At $2.20, RSI last trades at […]

Sunningdale's peers 30 Apr 2018

Sunningdale trades at 8.3x FY18F PE; 0.66x P/BV and 5.5% FY18F div yield (30 Apr 18)

Sunningdale has plunged 46% in less than half a year, from an intraday high of $2.40 on 6 Nov 2017 to close $1.30 on 30 Apr 2018. What happened? Is Sunningdale a “goner”?   Some reasons for Sunningdale’s decline Sunningdale’s share price decline may be attributed to some of the reasons below: a) Sentiment on tech sector has soured Sentiment has soured on the tech sector primarily due to downbeat results or / and guidance from tech companies such as Taiwan Semiconductor Manufacturing Co. Ltd, SK Hynix. Secondly, there are rising fears of increasing regulation measures on the tech sector. […]

Venture anr 24 Apr 18

Venture approaches bear territory! Should we sell? (24 Apr 18)

Dear all, Venture has entered into bear territory after dropping 21% from an intraday high of $29.65 on 13 Apr 2018 to close $23.40 on 24 Apr 2018. What should we do? Let’s examine the chart and some noteworthy points on Venture.   Chart analysis Based on Chart 1 below, Venture’s chart seems to resemble a bearish double top formation. The break below its neckline $26.95 points to an eventual technical measured target $24.60 which is already attained today. 20D, 50D and 100D exponential moving averages (“EMA”) have started to turn lower amid the sharp drop. Venture closed below its […]

DBS analyst TP 26 Mar 18

DBS – potential trading idea going to XD (26 Mar 18)

Dear all, Based on a simple tracking of DBS’ share price performance from CD to XD, on average, DBS seems to move approximately 4-9% above its CD price, nearer to XD (translating to around S$27.86-29.13). See Table 1 below. DBS is going to XD $1.10 on 3 May. Table 1: DBS’ share price performance from CD to XD Source: Ernest’s compilations   What are the analysts saying? Based on Figure 1 below, average analyst target is around $31.15. At $27.21, this represents a potential capital upside of around 14.5%. Estimated div yield is around 4.1%. There are 17 buy; 6 […]

Table 1_Top five stocks with the highest estimated total potential returns 21 Mar 18

S&P500 – closed below its 200D EMA – a 1st since Nov 2016! (23 Mar 18)

Dear all, Previously, I mentioned in my write-up dated 21 Mar that I am avoiding the event risk of the U.S. tariff package against Chinese (click HERE). This proves timely as S&P500 fell 129 points, or 4.7% from 2,717 on 20 Mar to close 2,588 on 23 Mar. At 2,588, S&P500 has made its first close below its 200D exponential moving average (“EMA”) since Nov 2016. Why and how is this significant?  During the sharp 10% drop in the first part of Feb 2018, S&P500 has not closed below its 200D EMA. Furthermore, most technical analysts are watching this level […]

Table 1_Top five stocks with the highest estimated total potential returns 29 Sep 17

Ernest’s compilation of stocks sorted by estimated total potential return (29 Sep 17)

Dear all S&P500 hit another record last Fri! Some private banking clients have enquired on any interesting stocks to take a closer look with a horizon of 1-3 years. Therefore, I have compiled a list of stocks based on Bloomberg’s data as of 29 Sep 2017. Table 1 shows only the top five stocks with the highest estimated total potential return. Table 1: List of top 5 stocks with the highest estimated total potential return Source: Bloomberg as of 29 Sep 2017   Noteworthy points 1. This compilation is based on Bloomberg’s data sorted with my set of criteria namely, a) […]

Billion market cap stocks with 3% dividend 12 Jun 17

Billion market cap stocks with >=3% dividend yield (12 June 17)

Business Times has an interesting article published today “High-yielding billion-$ stocks go beyond STI”. However, I noticed in the article, it did not list all the stocks with market cap >=S$1 billion and dividend yields >=3%. Therefore, I have sourced data from Bloomberg and have compiled a list of Singapore listed stocks with the following criteria: a) Market capitalisation in SGD terms >= S$1 billion; b) Estimated dividend yields >= 3%. Furthermore, I have sorted the stocks with the above criteria, sorted by total potential return (i.e. Potential capital gain + estimated dividend yield). Table 1 lists the top 5 […]

Table 1_Top five stocks with the highest estimated total potential returns

Ernest’s market opinion (19 May 17)

Dear all Below is my personal opinion on the market. As previously mentioned to my clients, I aim to reduce my percentage invested in stocks (currently around 130% invested), especially the non-performing stocks, with no immediate near term catalysts. I am cautious on the market in the next 1-2 months because a) The large market run up year to date. STI has appreciated approximately 12% YTD and 22% for the past one year; b) June is likely to be a quiet month as most companies have reported results and some of the blue chips have already ex dividend. i.e. limited […]

banks-valuation-1-dec-16

DBS – hits 52-week high, all-time overbought since 1991! (1 Dec 16)

DBS hit another 52-week high today. It has surged 19% from an intraday low of $14.97 on 9 Nov 2016 to $17.82 on 1 Dec 2016. This has significantly outperformed the STI by a mile, as STI was only higher by 6.0% over the same period.   What has caused the sharp rally in DBS? Some of the possible reasons may be 1. Since Donald Trump’s victory, the market has repriced in faster inflation in the U.S. due to Mr Trump’s infrastructure pledge. This has caused a surge in US Dollar and bond yields, especially on longer-dated debt. This bodes […]