Ernest Lim's investing blog

Unique insights into SGX small caps

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Frasers Property Limited – large market cap stock trading at rock bottom valuations! (16 Jun 24)

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Dear all The past few weeks have been extremely busy from MSCI index rebalancing (where there are lots of opportunities to capitalise on); to 1-1 meetings and a site visit in Myanmar. This is why I have not been posting posts on my Linkedin (click HERE for my Linkedin) and only one article on my blog since 6 May 2024.  While doing my usual stock screening of SGX listed stocks, I found out that Frasers Property Limited (FPL) has the lowest valuation at 0.3x P/BV, while being one of the largest market capitalisation stocks listed on SGX. FPL closed at […]

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

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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 […]

China Everbright Water and NetDragon look interesting… (30 Jul 2020)

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This week, notwithstanding the continuous interest in glove companies, pharmaceutical companies etc, there are some companies which seem to have some steady inflows, based on chart observations. Two companies come to my mind, namely NetDragon and China Everbright Water Limited (“CEWL”). What is so interesting about the above companies? Let’s take a closer look at its chart and other noteworthy points. 1. NetDragon – on an uptrend, with all 13 analysts calling it a BUY Company description – before I delve into the chart… Some readers may not be familiar with NetDragon (HKSE: 0777). According to NetDragon company description, it […]

China Everbright Water – bullish break above trading range (10 Jun 2020)

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This week, China Everbright Water Limited (“CEWL”) catches my attention this week. Since 17 Mar 2020, CEWL has been trading sideways from $0.200 – 0.230. Based on chart, CEWL seems to be on the verge of a breakout. It last trades at $0.235. What is so interesting about CEWL? Let’s take a closer look at its chart and other noteworthy points.   CEWL – Broke out of 2+ month trading range with volume expansion Bullish chart underpinned by rising EMAs and volume Based on Chart 1 below, since 17 Mar 2020, CEWL has been trading sideways from $0.200 – 0.230. […]

Yangzijiang – may be ripe for a bounce (12 Nov 2019)

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This week, besides Food Empire which caught my attention (click HERE), Yangzijiang (“YZJ”) also caught my attention for being a laggard. It has given up all the gains since its large 7% jump on 5 Nov 2019. Notwithstanding the recent mild profit taking, it seems to be holding up well above its uptrend line. Given that its results are just around the corner, it may be an opportune time to take a look at YZJ. Do take a look at the basis, and more importantly, the risks.   Basis A) Chart analysis – a breakout / breakdown seems to be […]

Sembmarine – leveraged play among oil companies (29 Apr 19)

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Dear all, This week, Sembcorp marine (“SMM”) caught my attention amid positive industry reports and its strengthening chart. I have started to accumulate SMM with my usual take profit target of a few bids, if any. Let’s look at the basis, and importantly, the investment risks.   Basis a) Analysts are turning positive Based on Figure 1 below, average analyst target price for SMM is around $1.93, representing a potential capital appreciation of around 12% from the current price $1.72. It is noteworthy that JP Morgan has turned positive on SMM last month with a target price of $2.10, after […]