Ernest Lim's investing blog

Unique insights into SGX small caps

value

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

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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). […]

China Aoyuan – a potential value play? (15 Jun 21)

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Dear all Against the backdrop of rising inflation, some market strategists have recommended “additional urgency” to rotate from technology plays to “old economy value stocks” to hedge against potential inflation pressures (as they believe such inflation pressures are not transitory). A stock that may tick all the right boxes may be China Aoyuan (“Aoyuan”) (3883.HK). It belongs to the old economy stocks (i.e. property sector which may be a hedge against inflation) and seems to be a value play, given that it trades at HKD7.01 on 15 Jun 21.   Who is Aoyuan? Quoting from a report by DBS Research […]

Koda – Clear beneficiary of the surge in home furnishing spending trend (1 Jun 21)

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Since 20 Aug 2020, Avarga has more than doubled from $0.146 to close $0.305 on 1 Jun 2021. Avarga’s strength is likely attributed to its 69.7% stake in Taiga (Taiga is Canada’s largest wholesale distributor of building materials, such as lumber, panels, doors, engineered wood, roofing and others). Taiga’s business has been flourishing due to the strength in home furnishings and the housing market in Canada and US. By extension, Koda may be another proxy to benefit from the surge in home furnishing spending trend. It is noteworthy that Koda is an Original Design Manufacturer / Original Equipment Manufacturer to […]

Tianneng Power trades at only 1/3 the value of its listed subsidiary Tianneng Battery! (8 Mar 2021)

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Dear all Tianneng Power (00819.HK) (“TP”) caught my attention recently. It has slumped 40.5% from an intraday high of HKD22.55 on 13 Jan 2021 to close HKD13.42 on 8 Mar 2021. At HKD13.42, it trades at only 1/3 the value of its listed subsidiary Tianneng Battery! Besides this sharp plunge and significant valuation gap, what else does TP have to catch my attention? Read on for more.   First up, a description of TP Quoting from its 1HFY20 results, TP was founded in 1986 and was listed Main Board of The Stock Exchange of Hong Kong Limited as the “First China […]

City Dev falls nine out of ten sessions; near Mar 2020 low amid oversold RSI (2 Nov 2020)

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Dear all, Since 19 Oct 2020, City Dev has fallen nine out of ten sessions with a cumulative drop of 20%. City Dev closed at $6.20. Let’s take a look why this City Dev has slumped and why it has caught my attention.   Reasons why City Dev has underperformed The below list of likely reasons is not exhaustive. It is just based on my personal view what may have caused City Dev’s underperformance. 1) Concerns over how much support is required by Sincere Property Group Concerns over how much support is required by Sincere Property Group (“Sincere”) flare up […]

China Everbright Water and NetDragon look interesting… (30 Jul 2020)

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This week, notwithstanding the continuous interest in glove companies, pharmaceutical companies etc, there are some companies which seem to have some steady inflows, based on chart observations. Two companies come to my mind, namely NetDragon and China Everbright Water Limited (“CEWL”). What is so interesting about the above companies? Let’s take a closer look at its chart and other noteworthy points. 1. NetDragon – on an uptrend, with all 13 analysts calling it a BUY Company description – before I delve into the chart… Some readers may not be familiar with NetDragon (HKSE: 0777). According to NetDragon company description, it […]

China Everbright Water – bullish break above trading range (10 Jun 2020)

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This week, China Everbright Water Limited (“CEWL”) catches my attention this week. Since 17 Mar 2020, CEWL has been trading sideways from $0.200 – 0.230. Based on chart, CEWL seems to be on the verge of a breakout. It last trades at $0.235. What is so interesting about CEWL? Let’s take a closer look at its chart and other noteworthy points.   CEWL – Broke out of 2+ month trading range with volume expansion Bullish chart underpinned by rising EMAs and volume Based on Chart 1 below, since 17 Mar 2020, CEWL has been trading sideways from $0.200 – 0.230. […]

Why Property Investors should look at the Private Resale Condo Segment (11 April 2020)

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This write-up was reproduced with permission from Ray’s Estate Clinic, written by Founder, Raymond Chng. Please refer to the end of the article for more information on Raymond. With the record number of new launch properties on the market in 2019 and 2020, all eyes have been on the new launch segment of the property market. Some new property buyers believe that they should buy new properties because they would be buying at the lowest price in the development, and therefore are more likely to make profits when the property obtains TOP. These same property buyers are afraid of buying […]

Frencken nears 14Y overbought RSI level amid 10Y high prices (19 Nov 2019)

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This week, Frencken has caught my attention with its 34% surge from $0.690 on 31 Oct 2019. It closed $0.925 on 19 Nov 2019. At $0.925, this is very near to its 10-year high closing price $0.930 set on 18 Nov 2019. Since 31 Oct 2019, it has risen 10 out of the past 13 trading days with two days having closed unchanged. RSI closed at 88.1 on 19 Nov 2019, which is near a 14 year overbought level. Based on Frencken’s chart, it seems to present a favourable risk to reward short trade. Please see the basis and more […]

Yangzijiang – may be ripe for a bounce (12 Nov 2019)

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This week, besides Food Empire which caught my attention (click HERE), Yangzijiang (“YZJ”) also caught my attention for being a laggard. It has given up all the gains since its large 7% jump on 5 Nov 2019. Notwithstanding the recent mild profit taking, it seems to be holding up well above its uptrend line. Given that its results are just around the corner, it may be an opportune time to take a look at YZJ. Do take a look at the basis, and more importantly, the risks.   Basis A) Chart analysis – a breakout / breakdown seems to be […]