Ernest Lim's investing blog

Unique insights into SGX small caps

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China Everbright Water and NetDragon look interesting… (30 Jul 2020)

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This week, notwithstanding the continuous interest in glove companies, pharmaceutical companies etc, there are some companies which seem to have some steady inflows, based on chart observations. Two companies come to my mind, namely NetDragon and China Everbright Water Limited (“CEWL”). What is so interesting about the above companies? Let’s take a closer look at its chart and other noteworthy points. 1. NetDragon – on an uptrend, with all 13 analysts calling it a BUY Company description – before I delve into the chart… Some readers may not be familiar with NetDragon (HKSE: 0777). According to NetDragon company description, it […]

Chart alert! Yoma may breach $0.280 in the near term (23 Jun 2020)

el15

This week, Yoma catches my attention on a spike in share price, accompanied with an expansion in volume. Let’s take a look.   Chart analysis Yoma’s chart has been on a short-term uptrend since 24 Mar. ADX last trades 22.2, amid positively placed Dis, indicative of a trend. Its short term exponential moving averages (“EMA”) are rising steadily and its long term moving averages (namely 200D EMA and 200D SMA) are plateauing. Indicators such as OBV and RSI are strengthening. Volume has picked up significantly today and yesterday which may signify good odds of breaching its key resistance $0.275 – […]

China Everbright Water – bullish break above trading range (10 Jun 2020)

el15

This week, China Everbright Water Limited (“CEWL”) catches my attention this week. Since 17 Mar 2020, CEWL has been trading sideways from $0.200 – 0.230. Based on chart, CEWL seems to be on the verge of a breakout. It last trades at $0.235. What is so interesting about CEWL? Let’s take a closer look at its chart and other noteworthy points.   CEWL – Broke out of 2+ month trading range with volume expansion Bullish chart underpinned by rising EMAs and volume Based on Chart 1 below, since 17 Mar 2020, CEWL has been trading sideways from $0.200 – 0.230. […]

ARA HTrust – most oversold stock in Singapore with 10% estimated div yield (5 Mar 2020)

el15

Dear all, Yesterday evening, as I run my stock screening via Bloomberg, ARA HTrust comes out to be the most oversold among Singapore listed stocks yesterday with a RSI of 8.2. This is its most oversold level since listing. ARA HTrust has tumbled approximately 22% from an intraday high of US$0.900 to close at US$0.705 yesterday, which is the lowest close since IPO. Why does it attract my attention? Read on for more.   A) Chart – Selling pressures may ease as oversold pressures escalate Based on Chart 1 below, ARA HTrust is entrenched in a downtrend. All the exponential […]

China Aviation – chart looks bullish amid analyst buy calls; below average valuations, supported with 3.6% dividend yield (3 Jan 2020)

el15

Dear readers, Happy New Year! Hope your new year has been great. Market has been extremely interesting for the past couple of months. Recently, China Aviation (“CAO”) caught my attention with its bullish chart and looks interesting on a risk to reward aspect. CAO closed at $1.30 last Fri. Day range was $1.29-1.32. Read on for more.   Why did CAO catch my attention? a) Average analyst target price $1.70 With reference to Figure 1 below, average analyst target is around $1.70. Together with an estimated dividend yield of around 3.6%, CAO offers a total potential return of around 34%. […]

STI – to head towards 3,390 points in 1Q2020? (25 Dec 19)

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Merry Xmas! As we approach end 2019, most market strategists are putting their market estimates for end 2020. Although I do not profess to be in the league of these market strategists, just for fun, I am expecting STI to head towards 3,390 in 1Q2020. STI closed at 3,222 on 24 Dec 2019. I have outlined my basis and the risks involved.   Factors for my bullish basis a) Chart looks positive after bullish break Based on Chart 1 below, STI has staged a bullish break above its flag formation on 12 Dec 2019. Notwithstanding below average volume for the […]

Sunpower and Unusual – stocks with interesting charts (26 Nov 2019)

el15

On 6 Nov 2019, I posted an article (using data as of 5 Nov) on my blog with regard to two stocks, namely ISOTeam and Sunpower (click HERE) for their potential bullish chart developments amid volume expansion. ISOTeam touched an intraday high of $0.250 last Friday and Sunpower traded to an intraday high of $0.600 on 18 Nov 2019 as compared to $0.240 for ISOTeam and $0.525 for Sunpower at the time of my write-up. Since then, Sunpower has seen some significant profit taking and touched an intraday low $0.510 on 21 Nov. For Sunpower, I have taken profit when […]

Frencken nears 14Y overbought RSI level amid 10Y high prices (19 Nov 2019)

el15

This week, Frencken has caught my attention with its 34% surge from $0.690 on 31 Oct 2019. It closed $0.925 on 19 Nov 2019. At $0.925, this is very near to its 10-year high closing price $0.930 set on 18 Nov 2019. Since 31 Oct 2019, it has risen 10 out of the past 13 trading days with two days having closed unchanged. RSI closed at 88.1 on 19 Nov 2019, which is near a 14 year overbought level. Based on Frencken’s chart, it seems to present a favourable risk to reward short trade. Please see the basis and more […]

Yangzijiang – may be ripe for a bounce (12 Nov 2019)

el15

This week, besides Food Empire which caught my attention (click HERE), Yangzijiang (“YZJ”) also caught my attention for being a laggard. It has given up all the gains since its large 7% jump on 5 Nov 2019. Notwithstanding the recent mild profit taking, it seems to be holding up well above its uptrend line. Given that its results are just around the corner, it may be an opportune time to take a look at YZJ. Do take a look at the basis, and more importantly, the risks.   Basis A) Chart analysis – a breakout / breakdown seems to be […]

Food Empire – potential bullish chart development amid volume expansion (11 Nov 2019)

el15

This week, Food Empire caught my attention with their potential bullish chart developments amid volume expansion. This may be an opportune time to take a look at Food Empire on the back of its potential bullish chart and strong results released this evening. Do take a look at the basis and more importantly, the risks.   Basis A) Chart looks positive with strengthening indicators and volume Based on Chart 1 below, Food Empire has been trading in six-month trading range $0.490 – 0.550 and is now on the verge of challenging its key resistance around $0.550 with increasing volume. It […]