Ernest Lim's investing blog

Unique insights into SGX small caps

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Olam breaks out of its 8-month consolidation; CAO closes above its 50D SMA (3 Dec 24)

el15

Dear all It has been an extremely hectic couple of months. Markets have been extremely buoyant and I have been swarmed with trades, meetings and trips. If only, I have another pair of hands. 🙂 Anyway, just a short technical note on two companies, namely China Aviation Oil (CAO) and Olam which have seen bullish developments in their charts.   A) CAO closes $0.01 above its 50D SMA, first since 5 Nov CAO is interesting as the increase in the share price in the past three days was accompanied with an increase in volume. CAO closed at $0.910, accompanied by […]

HPH Trust – Potential laggard in this market FOMO to buy interest rate cut beneficiaries (20 Sep 24)

el15

Dear all While I was doing my usual screening of stocks and sort them by price to book; estimated dividend yield and total potential return etc, one stock stood out. HPH Trust (HPHT) stood out as one of a potential laggard. It last traded at US$0.130. Read on to see why it interests me.   Interesting points on HPH Trust A) Low valuations with P/BV 0.35x Based on Bloomberg, HPHT trades at 0.35x FY24F P/BV, 1.0x standard deviation below its average 10Y P/BV of 0.6x. Based on Shareinvestor, NAV / share is around US$0.367. B) Staggering yield of 12.5%! Based […]

UnUsUaL Limited – Potential removal of share overhang & Andy Lau’s concert may propel the share price (25 Jul 24)

el15

Dear all, UnUsUaL Limited (UnUsUaL) recently caught my attention due to a) It has slumped approximately 29% from $0.170 on 30 May to touch $0.120 on 16 – 17 Jul; b) Married deals of 19.0m shares transacted at $0.120 on 19 Jul and 1.6m shares at $0.125 on 22 Jul; c) Andy Lau is reportedly going to sing in Singapore. For the above point c), UnUsUaL announced yesterday on their Facebook (click HERE) that Andy Lau will be coming to Singapore for four nights from 10 – 13 Oct at Singapore Indoor Stadium. Given the above developments, it may arguably […]

SingPost – Likely strong earnings growth this financial year! (30 Jun 24)

el15

Dear all Singapore Post Limited (SingPost) is one of CGSI’s three value picks with re-rating potential in their Singapore Strategy report dated 8 May 2024. I have the privilege of meeting SingPost Group CFO, Mr Vincent Yik this month which I have shared with my LinkedIn (click HERE). It is interesting that SingPost has formed a potential bullish hammer on 28 June with a one-month high volume. SingPost closed at $0.430 on 28 Jun 2024. Why is SingPost interesting? I have summarised my readings from SGX announcements, analyst reports and my 1-1 interaction with Vincent in this article. Some key […]

Yoma has breached its two-year downtrend line with volume expansion (2 Jun 24)

el15

Dear all, Among the numerous write-ups which I regularly sent to my clients; I have previously done a short write-up on Yoma Strategic Holdings Ltd on 23 Apr 2024. It traded between $0.040 – 0.042 on 23 Apr and closed at $0.041. A multi-year low (at least 13 years low) price was reached on 19 Apr and 22 Apr. I have actually informed some active clients who trade small cap stocks to take a look on 19 Apr. Since 23 Apr, Yoma has seen stellar performance in its share price by rising 137% from $0.041 to touch an intra-day high […]

Markets hit by selling pressure. Is it time to BUY? (23 Oct 23)

el15

Dear all It has been some time since I last wrote an article on market outlook. I have been extremely busy for the past three months where I have been meeting companies and other associates. (Check out my LinkedIn HERE). I have also just arranged an exclusive meetup with Lendlease Reit Manager CEO, Kelvin Chow and Head of Investor Relations, Ling Bee Lin with my clients last Friday. (Click HERE). As of last Friday, Lendlease Reit’s market capitalisation is around S$1.16b. With reference to Chart 1 below, October continues to see the third monthly outflows of funds from China equity markets. […]

Alibaba trades at single digit forward PE; net cash with earnings growth. What gives?! (11 Oct 23)

el15

Dear all Alibaba, since hitting a post-result intraday high of HKD97.95 on 11 Aug, it has slumped 14.9% to close HKD83.40 on 10 Oct. At HKD83.40, Alibaba trades at 9.3x FY24F and 8.5x FY25F PE. Its financial year ends in Mar. On 26 Sep, Alibaba submitted a spin-off proposal for its Cainiao (click HERE) to the Hong Kong Stock Exchange and the Hong Kong Stock Exchange has confirmed that the Company may proceed with the Proposed Spin-off. A spin-off listing application has been submitted to the Hong Kong Stock Exchange. All in, it looks pretty positive. Why is Alibaba trading […]

Civmec – poised for a potential breakout above flag formation! (10 Sep 23)

el15

Dear all With reference to my technical write-up on Boustead Singapore dated 23 Jun (click HERE), I pointed out that Boustead Singapore seems to be poised for a bullish breakout. It closed at $0.825 on 23 Jun and subsequently jumped 9% to touch an intraday high of $0.900 on 26 Jul. This compares favourably to STI which generated a 4.0% over the same period. Another stock, Civmec has recently caught my attention due to its chart development which may portend a potential bullish breakout. It closed $0.805 on 8 Sep. First of all, let’s understand what Civmec does.   Description […]

CDL Hospitality trades at multi-month low levels $1.03 despite strong 2H outlook! (3 Sep 23)

el15

Dear all CDL Hospitality Trust (CDREIT) has caught my attention after slumping from $1.19 on 31 Jul to close $1.03 on 31 Aug. After taking into account of $0.0251 dividend per share ex on 4 Aug, it is still down 11.6% for the month, notching a multi-month low despite a likely buoyant 2HFY23F. Let’s take a closer look on why CDREIT has caught my attention.   Firstly, why did it drop 12% in Aug? The drop in CDREIT’s share price may be attributed to three main reasons, viz. a) 1HFY23 results missed some analysts’ estimates 1HFY23 results released on 28 […]

Genting Singapore, touted as a recovery play, trades near eight-month low price! (5 Aug 23)

el15

Dear all Recently, Genting Singapore, a supposedly recovery play, closed at a near eight-month low price. It caught my attention especially after Las Vegas Sands (LVS) reported results on 19 Jul 2023. LVS reported a good set of results and indicated that there is scope for further improvement, as China tourists have not come back in full force yet. While the details (such as VIP volume growth and win percentage) may differ markedly from LVS (i.e., Marina Bay Sands) and Genting Singapore, generally speaking, the good set of results in MBS increases the chance that Genting Singapore may report similar […]