AEM ANR 18 Feb 22

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

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 […]

Table 2_Top ten stocks sorted by total potential return 31 Jan 22

STI is up 10.1% YTD; may face profit taking in the near-term (16 Feb 2022)

Dear all STI has been on a tear since the start of the year. 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, STI has indeed notched strong year to date (“YTD”) gains of 10.1% to close 3,439 on 16 Feb 2022. This outperformance is especially stark if we compare it to S&P500’s -6.1% YTD returns. As I have shared with Lianhe Zaobao on 9 Feb 2022, I personally feel that our STI is overbought in the near term with several near-term […]

Fig 1_Factory capacity, floor plan to produce electric motorcycle

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

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 […]

Fig 1_Koda's past five years dividends 28 May 21

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

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 […]