Ernest Lim's investing blog

Unique insights into SGX small caps

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Stocks sorted by total potential return (7 Sep 2020)

el15

Dear all U.S. markets have fallen sharply with Nasdaq dropping almost 1,200 points or 10% from an intraday high of 12,074 on 2 Sep to an intraday low of 10,876 last Fri. For example, Apple Inc. has lost $219b in market cap from the close of 1 Sep through 3 Sep which is larger than the market cap of Exxon Mobil Corp., for long the world’s largest company! In view of the recent decline, some clients have asked me which are the stocks that they can look at. Below is my compilation of the top ten stocks and the bottom […]

Wilmar – Is this a good time to accumulate? (2 Sep 2020)

el15

Wilmar recently caught my attention. It has fallen approximately 11% from an intraday high of $4.95 on 7 Aug 2020 to close $4.41 on 1 Sep 2020. Six points attracted me to Wilmar. Let’s take a look. 1. Imminent catalyst i.e YKA IPO – left one approval to go Wilmar cited that its Chinese subsidiary, Yihai Kerry Arawana Holdings Co., Ltd (“YKA”), has obtained listing clearance from the Shenzhen Stock Exchange (“SZSE”) ChiNext Board Listing Committee (the “Committee”) and has submitted the updated prospectus to the China Securities Regulatory Commission (“CSRC”) for final registration approval for listing on SZSE ChiNext Board […]

Starburst – building order books; bright outlook (24 Aug 2020)

el15

In May 2019, I met Starburst’s Managing and Executive Director Mr Yap Tin Foo. Since Mar 2020, Starburst has been on a roll in winning contracts and I believe it is an opportune time to meet Mr Yap again. Despite Mr Yap’s busy schedule, he agrees to meet me on 1-1 basis to share his company’s business operations and prospects. Below are some of my takeaways from my discussion with him and from its recent results briefing.   Company description Quoting from Starburst’s press release, it is an engineering specialist in a niche industry, and designs, fabricates, installs and maintains […]

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

el15

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 […]

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. […]

Navigating Depressions and Great Recessions (Real Estate Edition, 8 May 20)

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This write-up was reproduced with permission from Ray’s Estate Clinic, written by Founder, Raymond Chng. Please refer to the end of the article for more information on Raymond. We are currently in unprecedented times (as of writing in April 2020). Covid-19 is upon us as a global pandemic which will go down in history books as the gravest health crisis mankind ever faced in this century. Over the past few weeks, I had the fortune to converse and interview numerous Seniors (our Merdeka & Pioneer Generation) whom I knew for some time already. The wiser generation I interviewed range from […]

S&P500 has rebounded 31% from 23 Mar 20! Time to buy, hold or sell (19 Apr 20)?

el15

S&P500 has staged a whopping 683 points, or 31% rebound from its intraday low of 2,192 to close 2,875 on 17 Apr 20. Many clients have asked me (almost daily) whether we have already seen the bottom and is this a good time to buy stocks etc. At 2,875, S&P500 is just 15% away from its record intraday high of 3,394 on 19 Feb 2020. The rally in Wall Street is at a stark contrast to grim news from Main Street in terms of job losses; significant number of deaths from Covid 19; lockdowns and poor corporate results. Both bull […]

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 […]