Ernest Lim's investing blog

Unique insights into SGX small caps

Month: July 2016

Ernest’s market outlook (22 Jul 16)

el15

Dear readers, Markets have continued to rally with the U.S indices clocking in a fourth consecutive weekly gain. Will the markets continue to defy gravity to reach new highs? Read on for more.   S&P500 Index Just to recap what I have mentioned on 8 Jul 2016 (see HERE), I wrote “Given the low ADX, bearish divergences between price and OBV, MACD and RSI, it is unlikely that S&P500 may stage a sustainable rally above an intraday all time high of 2,135 on 20 May 2015.” –> On the contrary, S&P500 breached 2,135 and stayed above the level for the […]

Sapphire’s order book hits a record high (15 Jul 16)

el15

Sapphire’s order book hits a record high with RMB873m of worth of infrastructure contracts won on 14 Jul 2016. It seems to be evolving into a serious infrastructure play. However, it is still an under researched, under noticed stock judging from the lack of liquidity and zero analyst coverage.   Noteworthy points on the contracts won On 14 Jul 2016, Sapphire announced that it has clinched RMB873m worth of infrastructure contracts through its engineering, procurement and construction subsidiary, Ranken Infrastructure Limited. There are some noteworthy points in this announcement. a) RMB 300m Jian Cao Ping flyover & RMB 313m to […]

Ernest’s market outlook (8 Jul 16)

el15

Dear readers, What a difference the past two weeks make! Have you benefited from the sharp rally in the equity markets? Or did u cut loss on your long positions and initiated shorts after the Brexit and cut loss on your shorts due to the sharp rally? Two weeks ago, I said that I might raise my percentage invested from 71% to 150 – 200% on sharp market selloffs (see HERE). I also mentioned that I have told my clients who are mostly in cash to accumulate some stocks on dips. Indices such as S&P500 and STI have soared above […]

Profit from the Panic – Developers’ Deadlines? BREXIT? (30 Jun 2016)

el15

Profit from the Panic – Developers’ Deadlines? BREXIT? (Guest post) – Developer’s deadlines to sell units are reaching – Where are the opportunities? – Is the Singapore Property Market bottoming out? – If ABSD is removed who will benefit the most? – Does BREXIT pose risks to Singapore Property Markets? What are the other risks?   Developers’ deadlines to sell units are reaching – Where are the opportunities? With many developers hitting their deadlines for Qualifying Certificate (QC) – which need to sell within 5 years of construction else fined 8/16/24% for 1st/2nd/3rd year OR ABSD (developers to pay 15% […]