Ernest Lim's investing blog

Unique insights into SGX small caps

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First Reit – 1st healthcare reit listed on SGX (11 Nov 24)

el15

Dear all I am sure everybody here is familiar with Parkway Life Reit. It owns 64 properties located in the Asia Pacific region, with a total portfolio size of approximately S$2.25b as at 30 Sep 2024. Most of the us here would have conveniently thought that Parkway Life Reit is the first healthcare reit listed on SGX. However, this is not the case. It may come as a surprise to many of us, including myself that First Reit is actually the first healthcare reit listed on SGX on 11 Dec 2006 whereas Parkway Life Reit was listed on SGX on […]

Frasers Property Limited – large market cap stock trading at rock bottom valuations! (16 Jun 24)

el15

Dear all The past few weeks have been extremely busy from MSCI index rebalancing (where there are lots of opportunities to capitalise on); to 1-1 meetings and a site visit in Myanmar. This is why I have not been posting posts on my Linkedin (click HERE for my Linkedin) and only one article on my blog since 6 May 2024.  While doing my usual stock screening of SGX listed stocks, I found out that Frasers Property Limited (FPL) has the lowest valuation at 0.3x P/BV, while being one of the largest market capitalisation stocks listed on SGX. FPL closed at […]

CDL Hospitality trades at multi-month low levels $1.03 despite strong 2H outlook! (3 Sep 23)

el15

Dear all CDL Hospitality Trust (CDREIT) has caught my attention after slumping from $1.19 on 31 Jul to close $1.03 on 31 Aug. After taking into account of $0.0251 dividend per share ex on 4 Aug, it is still down 11.6% for the month, notching a multi-month low despite a likely buoyant 2HFY23F. Let’s take a closer look on why CDREIT has caught my attention.   Firstly, why did it drop 12% in Aug? The drop in CDREIT’s share price may be attributed to three main reasons, viz. a) 1HFY23 results missed some analysts’ estimates 1HFY23 results released on 28 […]

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 […]

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

el15

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 […]

U.S & European stocks logged their largest weekly falls for 2023. What’s next for the equity markets? (26 Feb 23)

el15

Dear all With reference to my writeup published on 30 Jan 2023 (click HERE), where I mentioned I would be cautious in the overall markets, especially after a sharp run up, US stocks have dropped consecutively for the in the past three weeks. Dow has fallen consecutively for the past three weeks and logged its sharpest 1,010 points or 3.0% last week.   So, what is next for our markets? Do we buy, hold or sell? Just to highlight, the below is a sample of a brief stock alert or / and observation which I typically send to my clients […]

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

el15

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)

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? […]