Ernest Lim's investing blog

Unique insights into SGX small caps

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Alert! Comfort Delgro – Multi-month base building & challenges key resistance – Looks bullish (6 Aug 22)

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Dear Readers, As you are aware, I usually will do a stock screening using Bloomberg at the start of each month. In the screening, Comfort Delgro (“CD”) pops out on attractive valuations via my metrics. This is not the first time that CD pops out in my screening. However, coupled with some of the points below, it may arguably be a good time to take a closer look in CD. Due to time constraints, this write-up will be brief and I will just raise some pertinent points and risks. For a more complete picture, it is advisable to refer to […]

Aztech looks interesting – lowest forward PE among SG tech stocks with a 5.6% estimated dividend yield! (16 Apr 22)

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Dear all This week, Aztech has caught my attention amid rising volume with its 1QFY22F business update just around the corner. It has fallen approximately 39% from an intraday high of $1.56 on 27 Apr 2021 to close at $0.950 last Thursday. Let’s take a look on the interesting points and potential risks on Aztech.   Interesting points a) Analysts like Aztech with average target price $1.44 With reference to Figure 1 below, 4 analysts cover Aztech and all rate it a buy. Average analyst target price is around $1.44. If the analysts are right, Aztech offers a potential capital […]

Markets may continue to be volatile but also present valuable opportunities ahead (6 Mar 2022)

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Dear all We are two months into 2022. How is your portfolio doing? With reference to my writeup (click HERE) published on 17 Feb 2022, I mentioned that STI is likely to face headwinds in the near-term and SG banks’ share prices are likely to peak around 7-18 Feb based on past observations.   Coincidentally a) STI peaked on 17 Feb. In fact, STI has tumbled 6.9%, or 239 pts from its intraday high 3,466 on 17 Feb to close 3,227on 4 Mar. Last Friday’s intraday low was 3,208. More about its chart below. b) Banks – DBS peaked on […]

AEM enters bear market despite analysts’ positive calls. What gives? (20 Feb 22)

el15

Dear all AEM has fallen 21% from an intraday high of $5.37 on 14 Dec 2021 to close $4.25 on 18 Feb 2022. What has happened in the last two months to warrant such falls? Based on Bloomberg, average analyst target price is around $6.72, representing a potential capital upside of around 58%. Is this the bottom for AEM, or will it fall further? Personally, I think AEM is worth a closer look at $4.20 – 4.30 region. Let’s take a look at its investment merits and risks.   First things first, what does AEM do? According to its company […]

GSS Energy – Electric mobility business takes shape (25 Jan 22)

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Dear all, With reference to my write-up published on 5 Jan 2022 (click HERE) citing that Asian indices are likely to outperform that of the U.S. market in 2022, our Asian indices, viz. Hang Seng and STI have outperformed the U.S. market significantly (See Table 1 below). U.S. S&P500 notched a 6.4% decline whereas Hang Seng and STI registered a 9.0% and 4.2% gain respectively since my write-up. Table 1: S&P500, Hang Seng and STI 2021 performance since 5 Jan 2022 Source: Ernest’s compilation Given the outperformance, are there still pockets of opportunities in our Singapore market? The short answer […]

STI – having closed at a record YTD high, will it continue higher? (7 Nov 2021)

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Dear all With reference to my market outlook published on 3 Oct (see HERE) citing opportunities in our Singapore market, STI has soared 191 points, or 6.3% from 3,051 on 1 Oct to close at a year to date high 3,242 on 5 Nov. Will STI continue to march higher, or will there be some profit taking?   Very briefly, my personal view is It is likely that STI may face some profit taking in the near term, attributable in part to the following factors: a) With reference to Figure 1 below, MSCI Singapore index will undergo a rebalancing in […]

3 interesting charts to take note: GSS Energy, China Sunsine and Sing Medical (28 Oct 2021)

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Dear all With reference to my market outlook published on 3 Oct 2021 (see HERE) where I cited opportunities in our Singapore market, our Singapore market (represented by STI) has jumped 154 points, or 5.1% since 1 Oct. Amid the recent strength, is it too late to plough into the markets? Are there still stocks who may have further upside? Based on my personal chart observation, GSS Energy, China Sunsine and Sing Medical have interesting / bullish charts’ setups which may be interesting to take a look.   GSS Energy Based on Chart 1 below, GSS seems to be on […]

STI at 3,051 – Presents some attractive opportunities (3 Oct 2021)

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Dear all With reference to my market outlook published on National Day (see HERE), both STI and Hang Seng have hit their highs on 10 Aug and 11 Aug respectively before dipping. Based on Table 1 below, S&P500, Hang Seng and STI have fallen 1.8%, 6.1% and 4.0% respectively since my writeup. Table 1: Indices’ performance since my last writeup Source: Ernest’s compilations Amid the recent weakness, you may be wondering whether it is a good time to accumulate on weakness. Before we get to this, let’s take a look at the indices’ charts.   S&P500 closed 4,357 Based on […]

GSS Energy looks interesting; key level for potential bullish breakout is at $0.075 (27 Sep 2021)

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Dear all Of late, GSS Energy (“GSS”) has caught my attention. It has dipped from an intraday high of $0.083 on 17 Sep 2021 and has weakened to $0.072 on 24 Sep 2021. This weakness may be attributed to profit taking and contra players exiting or rolling their positions. 24 Sep is T+5 of its high-volume day on 17 Sep. My personal guess is that most of the contra players may have already exited (i.e., selling may have been largely exhausted). It may be time to relook into GSS Energy. Let’s take a look.   Basis a) E mobility business […]

2 interesting charts to take note: Comfort Delgro & Q&M Dental (22 Sep 2021)

el15

Dear all With reference to my market outlook published on National Day (see HERE), markets have broadly declined, in line with my expectations, with STI and Hang Seng touching their highs on 10 Aug and 11 Aug respectively before dipping. Amid the recent weakness, two stock charts, namely Comfort Delgro and Q&M Dental catch my attention. Let’s take a look.   Comfort Delgro Based on Chart 1 below, Comfort Delgro has retreated to the low last seen in Nov 2020. It is currently at $1.51 and is testing an important support around $1.50-1.51 for the past three days (inclusive today). […]