Ernest Lim's investing blog

Unique insights into SGX small caps

valuation

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

el15

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 […]

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

el15

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 […]

Banyan Tree – collaborations with AccorHotels and Vanke may spark re-rating (17 Apr 17)

el15

Banyan Tree recently clinched two noteworthy strategic partnership with AccorHotels and Vanke on 8 Dec 2016 and 23 Jan 2017 respectively. Since 23 Jan 2017, Banyan has largely traded between $0.465 – 0.530. It closed at $0.510 on 17 Apr 2017. If a company can catch the eyes of China’s largest property player Vanke and Europe’s largest hotel group / the world’s fifth largest hotel group AccorHotels, there must be some merit to it. I have managed to fix an exclusive 1-1 meeting with Mr Eddy See, Group MD and Mr Clement Ong, Head of Strategic Planning & Investment (“Management”) […]

Is Midas a recovery play in 2017? (3 Feb 17)

el15

Midas has recently announced contracts after contracts. Based on Table 1 below, it is especially evident that Midas is gaining traction (particularly from 23 Jun 2016 onwards) in winning orders from clients, especially from its 32.5% stake in CRRC Nanjing Puzhen Rail Transport Co., Ltd. (“NPRT”). However, investors do not seem to share this optimism as Midas has fallen approximately 12% from $0.260 on 23 Jun 2016 to $0.230 on 3 Feb 2017. Table 1: Ernest’s compilation of contracts announced since 2015 Source: SGX; Ernest’s compilation Is the market overly pessimistic on Midas? I am fortunate to meet Mr. Patrick […]

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

el15

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 […]