Ernest Lim's investing blog

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Figure 1_Analyst target price for Comfort Delgro 8 Jun 23

Comfort Delgro closed at $1.03, lowest last seen on 18 Mar 2004! (9 Jun 23)

el15

Dear all Comfort Delgro (“CD”) closed at $1.03 today. Based on Bloomberg, this was the lowest close last seen on 18 Mar 2004. The main reason cited for this recent drop was that Citi has reduced its target price for CD from $1.63 (26 Feb 2023) to $1.32 (2 Jun 2023). Nevertheless, they maintained their buy call. Is it all doom and gloom? Should we throw in the towel and just give up on CD? Personally, I find CD interesting at current levels. Before I delve into it, just for record purpose, I have a previous article on CD published […]

Fig 1_Kep Corp analyst target 7 Feb 23

Keppel Corp slumps 7% post results to $7.11 – Any trading opportunity ahead? (8 Feb 23)

el15

Dear all, Kep Corp has fallen $0.54 or 7% from $7.65 on 2 Feb to close $7.11 yesterday. In this write-up, I will elaborate on my take on what has happened and whether there is any trading opportunity.   Why did Kep Corp plummet 7%? Kep Corp announced 4QFY22 results on 2 Feb after market. Based on CGS-CIMB report, Kep Corp’s FY22 net profit of S$927m slightly beat estimates, at 102% consensus estimates. So what has caused the sharp drop in share price post results? My guess is that Kep Corp probably drops because a) Kep Corp has appreciated 7.6% […]

Chart 1_600329 CH stock price for the past 3 odd years

Nasdaq has soared 14% in 1 month! Should we chase this rally? (30 Jan 23)

el15

Dear all It has been a busy January. As you are aware, I have kept my powder dry by taking it slow and easy in Dec and have taken some opportunistic positions amid the sell-off in Dec. Just to recap, with reference to my writeup published on 3 Dec (click HERE), where I mentioned that I am taking it slow and easy in Dec, S&P500 and STI fell by 5.9% and 1.2% respectively in Dec. In fact, S&P500 registered the worst Dec performance in four years. However, Hang Seng was still very resilient and jumped 6.4% in Dec on continual […]

Figure 1_Comfort Delgro analyst target price 19 Jan 23

Comfort Delgro sinks to 14-year low! Will it go lower? (19 Jan 2023)

el15

Dear all On 11 Jan, Comfort (CD) closed at $1.21, the lowest close since 31 Oct 2008. The next day, to the horror of CD’s shareholders, it broke $1.21 with volume expansion and closed at $1.18. At the time of this write-up, CD closed today at $1.14, the lowest close last seen 29 Oct 2008. Will CD fall more? Or will this be a comfortable trade at current level? Let’s read on for more.   Possible reasons to be bullish A) Still a recovery play CD with its operations in Australia, China, Singapore, UK etc. should gradually benefit as economies […]

Chart 1_Tianjin 2Y price chart

Tianjin Pharma – A potential undervalued company, net cash; rides on favourable tailwinds (24 Dec 22)

el15

Dear all Last Friday, personal protection equipment (“PPE”) and glovemakers rallied as much as 3% – 36% in a single day (See Table 1 below). This outperformance may be attributed to concerns that the Covid situation in China may worsen with more infections, or may cause the appearance of new variants, which may spur demand for gloves and personal protection equipment. Table 1: SG glovemakers and PPE share price performance on Friday Source: Ernest’s manual compilations 23 Dec 22 Personally, besides PPE and glovemakers which may benefit, Tianjin Pharmaceutical Da Ren Tang Group (“T14”) may be another potential and perhaps […]

Fig 4_Wilmar average analyst target

3 stocks, Comfort Delgro, Thai Bev and Wilmar trade at attractive valuations (11 Oct 22)

el15

Dear all Yesterday, Comfort Delgro, Thai Bev and Wilmar closed at $1.25; $0.565 and $3.64 respectively. Personally, they look interesting on several aspects. At $1.25, Comfort Delgro trades at levels last seen in 2011 and 2009! At $0.565, Thai Bev sits on a long term uptrend line established since 2009! At $3.64, Wilmar trades at approximately 2.2x and 3.0x standard deviations below its 10Y average PE and P/BV of around 13.8x and 1.1x respectively! Read on for more.   *Comfort Delgro* I have previously published a write-up on Comfort Delgro. Readers can refer to my write-up HERE for more information […]

Figure 1_Comfort Delgro analyst target price 30 Sep 22

Comfort Delgro drops back to pandemic lows! What gives? (30 Sep 22)

el15

On 1 Sep, it was announced that Comfort Delgro (“CD”) will drop out of STI after being first included in the STI on 28 Jul 2010. Subsequently, there was turmoil in United Kingdom (“UK”) gilts and currency as UK government led by Prime Minister Liz Truss unveiled a (surprisingly) GBP45b plan to reduce taxes (click HERE for more information). Although CD may see some near-term price weakness, at Friday’s close of $1.32 (CD touched an intraday low $1.29 at the point of writing this), I personally believe most of the negatives may have already been priced in. Why am I […]

Table 1_Aztech ave analyst target 12 Apr 22

Aztech looks interesting – lowest forward PE among SG tech stocks with a 5.6% estimated dividend yield! (16 Apr 22)

el15

Dear all This week, Aztech has caught my attention amid rising volume with its 1QFY22F business update just around the corner. It has fallen approximately 39% from an intraday high of $1.56 on 27 Apr 2021 to close at $0.950 last Thursday. Let’s take a look on the interesting points and potential risks on Aztech.   Interesting points a) Analysts like Aztech with average target price $1.44 With reference to Figure 1 below, 4 analysts cover Aztech and all rate it a buy. Average analyst target price is around $1.44. If the analysts are right, Aztech offers a potential capital […]

Fig 1_SMG Group overview Aug 2021

Sing Medical – Trades at a 13-month low price despite posting record 1HFY21 results (3 Feb 22)

el15

Dear all On 29 Dec 2020, I have published a write-up on Sing Medical (“SMG”) where I outlined that the risk reward on SMG seems favourable at $0.315, given a potential share transaction scenario (click HERE). Since 29 Dec, SMG rose approximately 32% to trade $0.415 – 0.420 on several occasions in Feb 2021. Subsequently, it dropped sharply in Apr 2021 when it announced that the potential share transaction has lapsed. Fast forward to 31 Jan 2022 and SMG closed at a 13-month low at $0.290. This is notwithstanding its sterling record 1HFY21 results announced in Aug last year where […]