Markets hit by selling pressure. Is it time to BUY? (23 Oct 23)

Dear all It has been some time since I last wrote an article on market outlook. I have been extremely busy for the past three months where I have been meeting companies and other associates. (Check out my LinkedIn HERE). I have also just arranged an exclusive meetup with Lendlease Reit Manager CEO, Kelvin Chow and Head of Investor Relations, Ling Bee Lin with my clients last Friday. (Click HERE). As of last Friday, Lendlease Reit’s market capitalisation is around S$1.16b. With reference to Chart 1 below, October continues to see the third monthly outflows of funds from China equity markets. […]

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 […]

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

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 […]

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

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 […]

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? […]

SGX drops for 12th consecutive day, longest losing streak since IPO! (20 Oct 22)

Dear all, Since 4 Oct 2022, SGX has fallen for 12 consecutive sessions, logging its longest losing streak since IPO in 2000! Over the past 12 sessions, SGX has lost a total of 12.5%, or $1.19 to close at $8.33 on 20 Oct 2022. It is noteworthy that STI has only fallen 3.7% over the same period. In addition, SGX’s RSI closed 13.3, the lowest since 2008!   The below is a sample of a stock alert / observation which I typically send to my clients on a regular basis. Readers who are interested can consider signing up at http://ernest15percent.com. […]