Alibaba trades at single digit forward PE; net cash with earnings growth. What gives?! (11 Oct 23)

Dear all Alibaba, since hitting a post-result intraday high of HKD97.95 on 11 Aug, it has slumped 14.9% to close HKD83.40 on 10 Oct. At HKD83.40, Alibaba trades at 9.3x FY24F and 8.5x FY25F PE. Its financial year ends in Mar. On 26 Sep, Alibaba submitted a spin-off proposal for its Cainiao (click HERE) to the Hong Kong Stock Exchange and the Hong Kong Stock Exchange has confirmed that the Company may proceed with the Proposed Spin-off. A spin-off listing application has been submitted to the Hong Kong Stock Exchange. All in, it looks pretty positive. Why is Alibaba trading […]

Boustead Singapore – chart poised for a bullish breakout! (23 Jun 23)

Dear all With reference to my write-up on Comfort Delgro dated 9 Jun 2023 (click HERE) where I pointed out that I am comfortable to accumulate Comfort Delgro for a trading play, Comfort Delgro closed at $1.03 on 9 Jun, the lowest close last since on 18 Mar 2004. Since my writeup, Comfort Delgro has fortunately appreciated nine out of ten trading days to close almost 15% higher at $1.18 today. This compares favourably with STI which moved up 0.2% over the same period. Another stock, Boustead Singapore has recently caught my attention due to its chart development. It closed […]

Comfort Delgro closed at $1.03, lowest last seen on 18 Mar 2004! (9 Jun 23)

Dear all Comfort Delgro (“CD”) closed at $1.03 today. Based on Bloomberg, this was the lowest close last seen on 18 Mar 2004. The main reason cited for this recent drop was that Citi has reduced its target price for CD from $1.63 (26 Feb 2023) to $1.32 (2 Jun 2023). Nevertheless, they maintained their buy call. Is it all doom and gloom? Should we throw in the towel and just give up on CD? Personally, I find CD interesting at current levels. Before I delve into it, just for record purpose, I have a previous article on CD published […]

Comfort Delgro sinks to 14-year low! Will it go lower? (19 Jan 2023)

Dear all On 11 Jan, Comfort (CD) closed at $1.21, the lowest close since 31 Oct 2008. The next day, to the horror of CD’s shareholders, it broke $1.21 with volume expansion and closed at $1.18. At the time of this write-up, CD closed today at $1.14, the lowest close last seen 29 Oct 2008. Will CD fall more? Or will this be a comfortable trade at current level? Let’s read on for more.   Possible reasons to be bullish A) Still a recovery play CD with its operations in Australia, China, Singapore, UK etc. should gradually benefit as economies […]

Nov has been a fantastic month for equities! What’s next? (3 Dec 22)

Dear all With reference to my writeup published on 25 Oct (click HERE), where markets seem to be plagued with various negative news, I pointed out that Dow may have formed a bullish double bottom formation. In the writeup, I also featured Hang Seng tracker ETF (2800.HK) and UOB. My clients would have noticed my almost daily writeups on the stocks to consider taking a closer look as they hit lows in Oct. Below are only some of the stocks which I have featured on my blog in Oct and their performance. Table 1: Featured writeups on my blog in […]

Dow seems to have formed a bullish double bottom formation (25 Oct 2022)

Dear all Talk to anyone and I guess at least 50% of them are shaking their heads. Some of their usual concerns are a) Anxieties on the economy and their jobs in 2023; b) Hit by inflationary pressures from rising costs ranging from food, fuel, electricity, cars and properties; c) Worries over their home mortgage as rates are soaring through the roof; d) Concerns on their portfolios whether there may be more losses ahead and etc… At the point of writing this article, Hang Seng closed -1,030 points lower, or -6.4% to close 15,181. Is it all doom and gloom? […]

Markets may continue to be volatile but also present valuable opportunities ahead (6 Mar 2022)

Dear all We are two months into 2022. How is your portfolio doing? With reference to my writeup (click HERE) published on 17 Feb 2022, I mentioned that STI is likely to face headwinds in the near-term and SG banks’ share prices are likely to peak around 7-18 Feb based on past observations.   Coincidentally a) STI peaked on 17 Feb. In fact, STI has tumbled 6.9%, or 239 pts from its intraday high 3,466 on 17 Feb to close 3,227on 4 Mar. Last Friday’s intraday low was 3,208. More about its chart below. b) Banks – DBS peaked on […]

2 interesting charts to take note: Comfort Delgro & Q&M Dental (22 Sep 2021)

Dear all With reference to my market outlook published on National Day (see HERE), markets have broadly declined, in line with my expectations, with STI and Hang Seng touching their highs on 10 Aug and 11 Aug respectively before dipping. Amid the recent weakness, two stock charts, namely Comfort Delgro and Q&M Dental catch my attention. Let’s take a look.   Comfort Delgro Based on Chart 1 below, Comfort Delgro has retreated to the low last seen in Nov 2020. It is currently at $1.51 and is testing an important support around $1.50-1.51 for the past three days (inclusive today). […]

S&P500 closed at record high! What should we do? Buy or sell? (9 Aug 2021)

Dear all S&P500 has clocked its sixth consecutive month of gains in July 2021. This is the longest stretch since 2018. Furthermore, S&P500 has touched a record high to close at 4,437 on 6 Aug 2021. In the next 3 months, are markets poised for higher highs? Or should we be prudent and take some profit off the table first? Let’s take a look.   Ernest’s personal market observations a) Lack of catalysts to push the market higher Since Covid last year, markets, especially U.S. markets, have been able to push higher due partly to the combination of ultra-easy monetary policies; […]

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

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), […]