Dear all, How’s your weekend? Just to share two interesting charts with you…   1. GKE – ascending triangle formed On 19 Oct, I have posted a write-up on GKE (see here) where I have written on GKE’s background and future developments. In the write-up, I have pointed out that GKE is in the midst of forming a bullish potential ascending triangle formation. Since my write-up, GKE has risen 11% to close $0.090 on last Fri. Yesterday’s day range was $0.089 – 0.090. With reference to Chart 1 below, GKE’s ascending triangle formation is confirmed with a decisive break above $0.082 […]

Dear readers, The past two weeks have been extremely hectic where I have raised my equity allocation from around 65% to 150%. What has caused me to raise my equity allocation? Read on to find out more.   S&P500 Index Two weeks ago, with reference to Chart 1 below, I mentioned the following on the S&P500: a) I prefer the S&P500 to wait and observe whether S&P500 retreat and test the resistance turned support region 1,990 – 2,000 before moving higher; –> S&P500 first hit around 2,021 on 12 & 13 Oct before it weakened to touch an intraday low of […]

Dear all, It has been a hectic week. 3 stock charts caught my attention, together with their price action yesterday.   1. Innovalues – potential chart breakout It closed +0.065, or 10% to 0.720 yesterday. Day range 0.670 – 0.730. Ave analyst TP: $0.980. Estimated dividend yield is around 4.5%. Noteworthy points 1. 3Q results – if I based on their historical performance, it is likely to be good. This is because company has typically met and usually exceeded estimates; 2. Chart seems to have broken out from the recent tight trading range of $0.630 – 0.675 on a six […]

Recently, I noticed that GKE Corp has garnered considerable media attention after entering into a sales and leaseback agreement with Viva Industrial Trust for GKE’s existing headquarters cum warehouse property located at 30 Pioneer Road. Upon successful completion, GKE will receive S$45m in cash as consideration for the sale. This is almost on par with GKE’s current market capitalisation of S$51.9m! Coupled with the various on-going developments (see below), GKE seems to warrant a closer look.   Company description GKE’s business activities can be broadly segregated into two categories: (a) 3rd party logistics, and (b) strategic investments. More elaboration below. […]

Guocoleisure (“GLL”) reported its 1QFY16 results yesterday evening. 1QFY16 revenue and net profit registered -2% and +89% year on year (“y/y”). Excluding the one off compensation amounting to approximately US$13.1m received from the cessation of management of 19 regional Thistle Hotels owned by a 3rd party, 1QFY16 net profit should be around US$18.3m, still up about 10% y/y. To put its 1QFY16 net profit (US$18.3m) in perspective, this formed 38% of FY15 net profit and CIMB’s estimates. Spate of insider buying buoys confidence With reference to Table 1 below, Mr. Quek Leng Chan and Mr. Timothy Teo were the most […]

Dear readers, It is my pleasure to announce my first article contribution on ISOTeam to BTInvest which is the Personal Finance and Investment Arm of The Business Times. Going forward, there will be regular articles to be reproduced on BTInvest. Please click the link here to view the article. Have a good week ahead.

The past week has been extremely rewarding for those who have bought in the week of 28 Sep 2015 when STI slipped below 2,800. For example, the MSCI All Country World Index had its best weekly rally since 2011. Closer to home, STI jumped 9.5% from the intraday low of 2,740 on 29 Sep 2015 to close at 2,999 on 9 Oct 2015. In retrospect, STI has performed in line with my expectations as follows: 1. In my write-up http://ernest15percent.com/index.php/2015/09/26/ernests-market-outlook-28-sep-15/ posted two weeks ago, I wrote that STI’s break below 2,843 was bearish with a measured technical target of 2,757. […]

GSS Energy (“GSS”) share price plunged 31% to close at $0.097 on 24 Jul 2015 after the announcement that KUD had terminated the services of GSS’ subsidiary PT Cepu Sakti Energy (“PT CSE”). Subsequently, in tandem with the weak equity market, GSS continued to weaken to touch a multi month low of $0.069 before closing at $0.079 on 2 Oct 2015.   So, what caught my attention? First of all, GSS’ chart (seems like a potential base formation in the making) and low valuations caught my eye. Below are some interesting factors which caught my eye. 1) Effects of settlement […]

Dear readers, In line with my expectations, STI weakened and stumbled into a bear market last week. (Please refer to my market outlook article dated 28 Sep http://ernest15percent.com/index.php/2015/09/26/ernests-market-outlook-28-sep-15/ ) For our Singapore market, besides the global events, there are two important Singapore centric events which are likely to influence our market in the next couple of months. Firstly, our advance 3Q GDP data is slated for release around mid Oct. There have been worries of a technical recession since the release of 2Q GDP. Thus, this data is likely to be closely watched by the market. Secondly, most of our […]