S&P500 chart 12 Oct 18

STI has dropped almost 17% since 2 May! Is a bear market coming? (14 Oct 18)

Dear all, U.S. equity markets have logged their worst weekly performance in the past six months. For our local market, STI has dropped 16.7% from an intra-day high of 3,642 on 2 May 2018 to an intra-day low of 3,035 on 11 Oct 2018. It closed at 3,069 on 12 Oct 2018. Is a bear market coming? There are mixed views. Bears are saying that we have not reached the bottom yet. Some perma-bears are even saying this may be the start of the bear market. Bulls are saying that this represents a window of opportunity to accumulate stocks on […]

Sing medical analyst target price 2 Oct 18

Sing Medical trades near one year low despite a 70% jump in 1HFY18 net profit! (3 Oct 2018)

This week, Sing Medical (“SMG”) caught my attention. SMG has dropped 39% from $0.725 on 18 Jul 2017 to trade $0.440 on 3 Oct 2018. My personal guess is part of the fall may be attributable to a) Lower, or no earnings growth for some of the healthcare players in FY18F. However, this is likely not the case for SMG, as analysts believe SMG is on track for a minimum 40% growth in FY18F net profit. It is noteworthy that SMG already posted a 70% jump in 1HFY18 net profit; b) Reduction in the general PE valuations ascribed to the […]

Yangzijiang anr 6 Aug 18

Yangzijiang – 2nd worst performing STI stock with -40% YTD (6 Aug 2018)

Yangzijiang (“YZJ”) has been the 2nd worst performing STI stock with -40% year to date (“YTD”) return based on the closing price of $0.880 on 6 Aug 2018 (click HERE). In the past four days, YZJ has weakened approximately 9.3% after hitting the intraday high of $0.970 on 31 Jul 2018. Is this recent share price decline the harbinger of poor results to be released on 7 Aug, after market?   2QFY18 results unlikely to be poor Based on my personal view, 2QFY18F results are unlikely to be poor based on the following points: a) Number of vessels delivered Based […]

Singtel chart 3 Jul 18

Singtel hits multi-year low and all time oversold since 2000! (3 Jul 2018)

Singtel closed -$0.03 to $3.02, the lowest close since Jun 2012. Based on Bloomberg, it is trading at approximately 5.9% estimated div yield. Ave analyst target is around $3.92. Hence total potential upside is around 35.7%. What has happened to Singtel which hit multi-year lows despite analysts’ buy calls? Is this a buying opportunity? Or is it a falling knife?   Singtel – takeaways from some analyst reports The recent weakness in Singtel may be attributed to its challenging industry, especially when the industry faces new entrants in both Singapore and Australia. Although Singtel may lack near term catalysts, based […]

STI chart as of 19 Jun 18

STI – down 9.4% since 2 May. Correction coming, or buying opportunity? (19 Jun 18)

With reference to my market outlook HERE posted on 11 May 2018, I mentioned at that time that I  have started to sell into strength, as I am cautious on the overall market. I updated on 30 May 2018 (click HERE) that STI is likely to trade sideways with downward bias. Separately, my clients would have been notified on 12 Jun 2018 morning that I have already reduced my percentage invested to approximately 40% as I believe market is likely to trend downwards in the next couple of weeks. In the span of four trading days, STI has dropped 148 […]

Sunningdale's peers 30 Apr 2018

Sunningdale trades at 8.3x FY18F PE; 0.66x P/BV and 5.5% FY18F div yield (30 Apr 18)

Sunningdale has plunged 46% in less than half a year, from an intraday high of $2.40 on 6 Nov 2017 to close $1.30 on 30 Apr 2018. What happened? Is Sunningdale a “goner”?   Some reasons for Sunningdale’s decline Sunningdale’s share price decline may be attributed to some of the reasons below: a) Sentiment on tech sector has soured Sentiment has soured on the tech sector primarily due to downbeat results or / and guidance from tech companies such as Taiwan Semiconductor Manufacturing Co. Ltd, SK Hynix. Secondly, there are rising fears of increasing regulation measures on the tech sector. […]

Table 1_How GSS Energy fare against other tech stocks since 25 Sep 2017

GSS Energy – Personal view from technical and fundamental aspects (6 Oct 17)

In my technical write-up on GSS Energy (“GSS”) dated 14 Sep 2017 (click HERE), I highlighted the possibility that GSS may be on the verge of forming a potential inverse head and shoulder formation. For this write-up, I have put in my personal view based on both technical and fundamental aspects. Read below for more.   Technical outlook – bullish Why do I feel the chart looks positive? a) Previously, in my earlier technical write-up, I mentioned that a breach above $0.157 with volume and on a sustained basis points to an eventual measured technical target of around $0.186. GSS […]

GSS chart dated 18 Aug 17

GSS Energy dived 31% since 29 Mar 17. What gives? (18 Aug 17)

Since my write-up on GSS Energy (“GSS”) dated 28 Nov 2016 (see HERE), GSS’ share price has surged 154% from $0.078 on 28 Nov 2016 to an intraday high of $0.198 on 29 Mar 2017. It has subsequently dived 31% to close $0.137 on 18 Aug 2017. For chartists who monitor GSS, they would have noted that GSS has broken its 4-month trading range of (approximate) $0.152 – 0.181 which is a bearish development. In this write-up, I will structure it differently. To attempt to explain the price fall, I will discuss what has changed and what has not changed […]

Sapphire FY16 results

5 observations on Sapphire’s results (10 Mar 17)

Sapphire’s share price slumped 8% from $0.335 on 27 Feb 2017 (before their results on 27 Feb, after market) to close $0.310 on 10 Mar 2017. Are their FY16 results bad? If yes, why does Mr Teh, CEO of Sapphire, record his first purchase since Sep 2015 now? Below are my five observations on Sapphire’s results. Click HERE for the press release. Table 1: Snapshot of Sapphire’s results Source: Company   5 observations on Sapphire’s results 1.Disposed loss making Mancala to be a focused infrastructure play Sapphire has divested the bulk of Mancala. Based on most industry experts, it is […]

gss-cash-position-vs-total-borrowings-3qfy16

GSS Energy – Roller coaster share price, what’s up? (28 Nov 16)

Since my write-up on GSS Energy (“GSS”) dated 10 Oct 2016 (see HERE), GSS shares have surged 34% from $0.080 on 10 Oct 2016 to an intraday high of $0.107 on 13 Oct 2016. It subsequently fell to an intraday low of $0.070 on 21 Nov 2016 before closing at $0.078 on 28 Nov 2016. What has changed in the previous few weeks to fuel such a roller coaster movement in its share price? I have listed some of their key announcements announced during the period below. 1. Formally signed contract with Pertamina On 3 Nov 2016, GSS, through its […]