Ernest Lim's investing blog

Unique insights into SGX small caps

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Sasseur Reit – Three analyst initiations in less than 2 months! What gives (25 Jul 23)

el15

Dear all Two weeks ago, I mentioned that some reits’ charts (click HERE) have caught my attention. On a fundamental basis, besides Lendlease Reit (Click HERE for my key takeaway from my 1-1 meeting with Lendlease Reit Manager CEO), Sasseur Reit has caught my particular attention. What first caught my attention was that Sasseur Reit has seen three analyst initiations in less than two months! There are now six research houses actively covering Sasseur Reit. This is quite a feat for a China reit to attract such wide analyst coverage on a relative basis, as it is common knowledge that […]

Lendlease Reit – Under-appreciated reit; yields >7% per annum! (3 Jul 23)

el15

Dear all Lendlease Reit (“Lendlease”) caught my attention as according to consensus, it offers a potential dividend yield of around 7.1% in each of FY23F and FY24F (financial year ends in June). Furthermore, 7 analysts have rated Lendlease a buy with average analyst target price $0.85, representing a potential capital appreciation of around 28.8%. Lendlease closed at $0.660 on 30 Jun 2023. For a reit, such returns, if they indeed materialise, are rather substantial. As such, this leads me to dig deeper into the reit. Last month, I am fortunate to meet Mr Kelvin Chow, CEO of Lendlease Global Commercial […]

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

el15

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)

el15

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? […]

Alert! Comfort Delgro – Multi-month base building & challenges key resistance – Looks bullish (6 Aug 22)

el15

Dear Readers, As you are aware, I usually will do a stock screening using Bloomberg at the start of each month. In the screening, Comfort Delgro (“CD”) pops out on attractive valuations via my metrics. This is not the first time that CD pops out in my screening. However, coupled with some of the points below, it may arguably be a good time to take a closer look in CD. Due to time constraints, this write-up will be brief and I will just raise some pertinent points and risks. For a more complete picture, it is advisable to refer to […]

Markets – market opportunities may materialise in the next few weeks (3 Jul 2022)

el15

Dear all, I have been extremely busy with work. In my line of work (i.e., stock broking), we may have numerous trading ideas but we always face severe time constraints every day. My clients can attest to the numerous messages and information which I send out daily (Nevertheless, I do remind clients to exercise their due diligence on such information which I send as they are general in nature and may not be suitable to one’s specific risk profile etc.) For my readers, thanks for the patience and for viewing my blog which unfortunately, is not updated as frequently as […]

Markets – possible technical rebound in the near term but likely short lived (26 May 2022)

el15

Dear all I have been extremely busy with work, hence the dearth of articles on my blog. Dow has closed lower for the eighth consecutive week. This marks the longest period of consecutive weekly losses since 1923! S&P500 has registered a seventh week of losses, its longest weekly losing streak since March 2001. Are the markets going to drop into an abyss? Or has the bottom been reached? Before we delve into this, let’s recap on my earlier market outlook article dated 4 Apr 22 (click HERE). Previously, I wrote that I am more inclined towards the bearish / prudent […]

AEM enters bear market despite analysts’ positive calls. What gives? (20 Feb 22)

el15

Dear all AEM has fallen 21% from an intraday high of $5.37 on 14 Dec 2021 to close $4.25 on 18 Feb 2022. What has happened in the last two months to warrant such falls? Based on Bloomberg, average analyst target price is around $6.72, representing a potential capital upside of around 58%. Is this the bottom for AEM, or will it fall further? Personally, I think AEM is worth a closer look at $4.20 – 4.30 region. Let’s take a look at its investment merits and risks.   First things first, what does AEM do? According to its company […]

Riverstone – Is the recent 32% decline justified? (12 Sep 2020)

el15

Riverstone recently caught my attention. It has tumbled approximately 32% from an intraday high of $4.90 on 7 Aug 2020 to close $3.33 on 11 Sep 2020. One client even thought that Riverstone has already undergone a bonus issue! The recent weakness is likely attributed to its co-founder selling 15.5m shares at $3.95 (Bloomberg cites a 90-day lockup on seller); the possibility of a vaccine resulting in demand for gloves and consequently their average selling price (“ASP”) falling off the cliff and some Malaysia investors selling shares to raise cash, as their moratorium on loan repayment ends (click HERE for […]

STI notched a ten year high on 2 May – is it a screaming buy for all SG stocks (11 May 18)

el15

Dear all, Dow has logged a seventh consecutive rise and small caps as measured by S&P600 index have just closed at a record high as of 11 May 2018. Our Singapore market has also done us proud too by becoming Asia’s best performing equity market on 2 May 2018. In view of the above, is it a screaming buy for our Singapore market, especially our small caps which have under-performed? Let’s take a closer look at the charts and my personal action plan.   S&P500 closed 2,728. Day range 2,717 – 2,733 Based on Chart 1 below, S&P500 seems to […]