Ernest Lim's investing blog

Unique insights into SGX small caps

Sapphire

What’s next for Sapphire if HKICIM becomes a substantial shareholder (19 Oct 17)

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Sapphire surged 11.5% this morning to touch an intraday high of $0.340 today on an announcement posted on SGX late last night. It closed +$0.01 to $0.315.   What happened yesterday? Two of Sapphire Corp’s largest shareholders, namely Best Feast Limited and Ou Rui Limited are swaping a combined 27.96% stake in the company with new shares to be issued by Hong Kong-listed Hong Kong International Construction Investment Management Group (“HKICIM”). According to an announcement by Sapphire, the above share swap represents Sapphire’s share price of approximately  S$0.51[1] per share.   Why Sapphire? I have been following up on Sapphire’s […]

Sapphire – 4 interesting updates which market may have ignored (2 Jun 17)

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Since my last company update on Sapphire on 10 Mar 2017 (see HERE), Sapphire has unveiled other interesting updates. Although the share price did appreciate 15% from $0.310 on 10 Mar 2017 to a high of $0.355 on 3 Apr 2017, it has since slid back to $0.320 on 2 Jun 2017. What are the recent updates and why are they interesting?   Strategic collaboration with Beijing Enterprises Water and China Railway On 16 May 2017, Sapphire announced that its wholly owned infrastructure business, Ranken has entered strategic partnerships with major Chinese conglomerates and state-owned enterprises to explore civil engineering […]

Laggard stocks: Chart outlook for ISOTeam, Midas and Sapphire (17 Mar 17)

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Notwithstanding the rally in the equity market, there are some stocks which continue to be laggards and are consolidating around their key support areas. If the market continues to stay buoyant, it may be a matter of time before funds rotate to the following laggard stocks, namely ISOTeam, Midas and Sapphire.   1.ISOTeam closed unchanged $0.390. Day range $0.390 – 0.395. Ave analyst: $0.600 ISOTeam has been testing the support area of around $0.375 – 0.390 for the past four days. Short term exponential moving averages (“EMA”) are moving lower with 20D EMA crossing below 50D EMA. It is fortunate […]

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

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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 […]

Ernest’s market outlook (10 Feb 17)

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Dear all, Happy Chinese New Year 元宵节! The animal spirits seem to have descended on our Singapore market! Our STI is one of the best performing indices with a blistering 7.6% year to date return. Our FSTS ST Small Cap Index has returned 4.6% for the same period. Have you benefitted from this rally? What’s next for our markets?   S&P500 Just to recap what I have mentioned on 27 Jan 2017 (see HERE), I wrote “it is very worrying (more worrying than 13 Jan) that the various indicators such as RSI, MACD, OBV and MFI continue to exhibit bearish […]

Chart highlights on Midas, Sapphire, Sunpower, Terratech (9 Feb 17)

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Dear readers, The animal spirits seem to have finally descended on our Singapore market! Our STI is one of the best performing indices with a blistering 6.4% year to date return. Our FSTS ST Small Cap Index has returned 3.8% year to date. I have highlighted four charts which (I feel) deserve attention. Do note the caveats below.   Midas With reference to my write-up on Midas dated 3 Feb 17 (click HERE), Midas’ inverse head and shoulders pattern seems to be confirmed with the decisive upside break above its 200D exponential moving average (“EMA”) and neckline of around $0.230 […]

Sapphire – disposal of Mancala, implications and updates (30 Dec 16)

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On the last trading day of the year, Sapphire Corp announced that it has entered into conditional sale and purchase agreements (collectively, the “SPAs”) with each of China Vanadium Titano-Magnetite Mining Company Limited (“CVT”) and Toe Teow Heng (“TTH”) relating to its mining services business, Mancala. Is this a positive or negative development? What are the implications? Let’s take a closer look.   Disposal of Mancala and its implications Subject to the terms and conditions of the SPAs, CVT and TTH have agreed to acquire 49% and 32% of the issued and paid up capital of Mancala Holdings for a […]

Sapphire – profit taking likely to taper off (17 Oct 2016)

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Sapphire reached $0.365 on 10 Oct 2016, one bid below my measured eventual technical target of $0.370. Since then, it has fallen 14% to $0.315 on 17 Oct 2016. Will it continue to slide further?   Chart outlook Sapphire has largely been trading within the range of $0.240 – $0.305 since 25 Jan 2016 before it broke out on 6 Oct 2016 above $0.305 on heavy volume. As previously mentioned on my 19 Sep 2016 Sapphire’s write-up (click HERE), the upside breakout above $0.305 points to an eventual measured technical target of $0.370. This was attained when Sapphire reached $0.365 […]

Sapphire’s substantial shareholders increase stake in Sapphire at $0.265 (19 Sep 2016)

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Sapphire announced that Best Feast Limited (“Best Feast”) and Ou Rui Group Limited (“Ou Rui”) have acquired additional Sapphire shares as a sign of their confidence in the Company. Details are as follows: 1. Best Feast, a company incorporated in the British Virgin Islands and beneficially owned by 34 individuals was the owner of Ranken Infrastructure Limited (“Ranken”). Sapphire previously acquired Ranken from Best Feast with part of its acquisition consideration funded by the issuance of 165m new ordinary Shares at the issue price of S$0.10 per Consideration Share. (Best Feast has 55m shares at the issue price of $0.30, […]

Key takeaways from Sapphire’s 2QFY16 results briefing (12 Aug 16)

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Sapphire Corp just announced a sterling set of 2QFY16 results last Wed. However, its share price barely budged. Is this a case of Mr Market being unaware of this stock, or is Mr Market still bogged down by Sapphire’s chequered past?[1] To know more about the company and its upcoming developments, I attended Sapphire’s 2QFY16 results briefing last Thurs, hosted at Peach Gardens. The meeting was hosted by Mr Teh Wing Kwan, Sapphire’s Managing Director and Group CEO and Mr Ng Hoi-Gee, Kit, Sapphire’s CFO, collectively known as (“Management”). Picture 1: Management meetup with analysts, funds and remisiers Source: Company […]