Fig 1_SMG Group overview Aug 2021

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

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 […]

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 […]

Analyst 8 Mar 21

Tianneng Power trades at only 1/3 the value of its listed subsidiary Tianneng Battery! (8 Mar 2021)

Dear all Tianneng Power (00819.HK) (“TP”) caught my attention recently. It has slumped 40.5% from an intraday high of HKD22.55 on 13 Jan 2021 to close HKD13.42 on 8 Mar 2021. At HKD13.42, it trades at only 1/3 the value of its listed subsidiary Tianneng Battery! Besides this sharp plunge and significant valuation gap, what else does TP have to catch my attention? Read on for more.   First up, a description of TP Quoting from its 1HFY20 results, TP was founded in 1986 and was listed Main Board of The Stock Exchange of Hong Kong Limited as the “First China […]

Nasdaq chart 8 Sep 20

Recent weakness provides accumulation opportunities (9 Sep 20)

Dear all Based on Table 1 below, U.S. indices have fallen between 5.5% – 10% from the close of 2 Sep to 8 Sep. Nasdaq led the decline with a 10% drop. These are interesting times indeed! Why do I say so? Read on below. Table 1: Performance of various indices from 2 Sep to *8 Sep 20 Source: Ernest’s compilations (*STI and Hang Seng are based on 9 Sep closing prices) In my personal opinion, this recent U.S. market weakness provides accumulation opportunities for the well prepared and for those who have been waiting on the side-lines to accumulate […]

Top ten stocks sorted by total potential return 3 Sep 20

Stocks sorted by total potential return (7 Sep 2020)

Dear all U.S. markets have fallen sharply with Nasdaq dropping almost 1,200 points or 10% from an intraday high of 12,074 on 2 Sep to an intraday low of 10,876 last Fri. For example, Apple Inc. has lost $219b in market cap from the close of 1 Sep through 3 Sep which is larger than the market cap of Exxon Mobil Corp., for long the world’s largest company! In view of the recent decline, some clients have asked me which are the stocks that they can look at. Below is my compilation of the top ten stocks and the bottom […]