S&P500 hits the highest last seen in Aug 2022! Should we buy, hold or sell? (3 Jun 23)

June 3, 2023 el15

Dear all First of all, apologies for the hiatus in posting new market outlook on my blog. I have been extremely busy for the past three months. My clients can attest to how busy I have been. I have been sending out my market views and news even on weekends and on public holidays. 😊 With reference to my previous writeup published on 26 Feb 2023 (click HERE), I mentioned that I planned to pare positions so that I can accumulate on weakness. In retrospect, it was a timely call. I was fortunate that I have pared my positions so […]

U.S & European stocks logged their largest weekly falls for 2023. What’s next for the equity markets? (26 Feb 23)

February 26, 2023February 26, 2023 el15

Dear all With reference to my writeup published on 30 Jan 2023 (click HERE), where I mentioned I would be cautious in the overall markets, especially after a sharp run up, US stocks have dropped consecutively for the in the past three weeks. Dow has fallen consecutively for the past three weeks and logged its sharpest 1,010 points or 3.0% last week. So, what is next for our markets? Do we buy, hold or sell? Just to highlight, the below is a sample of a brief stock alert or / and observation which I typically send to my clients […]

Raffles Medical – Potential trading play as its results are just around the corner (20 Feb 23)

February 20, 2023 el15

Dear all, Raffles Medical caught my attention recently as CLSA raised its target price from $1.70 to $1.92 on 8 Feb 23. $1.92 is a street high target with most analysts’ target price ranging between $1.58 – 1.65. Raffles Medical closed down 1 cent to $1.45 last Fri. Based on my personal view and observation, generally speaking, analysts seldom issue updated call so near to the company’s results release date. I mean there is usually no such urgency to do so, unless they have a significant change in view on the company. For those analysts who do, their calls are […]

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)

February 17, 2022 el15

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 […]

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

February 4, 2022 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 […]

Fig 1_Sunsine average analyst target price 27 Oct 21

3 interesting charts to take note: GSS Energy, China Sunsine and Sing Medical (28 Oct 2021)

October 28, 2021 el15

Dear all With reference to my market outlook published on 3 Oct 2021 (see HERE) where I cited opportunities in our Singapore market, our Singapore market (represented by STI) has jumped 154 points, or 5.1% since 1 Oct. Amid the recent strength, is it too late to plough into the markets? Are there still stocks who may have further upside? Based on my personal chart observation, GSS Energy, China Sunsine and Sing Medical have interesting / bullish charts’ setups which may be interesting to take a look. GSS Energy Based on Chart 1 below, GSS seems to be on […]

2 interesting charts to take note: Comfort Delgro & Q&M Dental (22 Sep 2021)

September 22, 2021 el15

Dear all With reference to my market outlook published on National Day (see HERE), markets have broadly declined, in line with my expectations, with STI and Hang Seng touching their highs on 10 Aug and 11 Aug respectively before dipping. Amid the recent weakness, two stock charts, namely Comfort Delgro and Q&M Dental catch my attention. Let’s take a look. Comfort Delgro Based on Chart 1 below, Comfort Delgro has retreated to the low last seen in Nov 2020. It is currently at $1.51 and is testing an important support around $1.50-1.51 for the past three days (inclusive today). […]

S&P500 closed at record high! What should we do? Buy or sell? (9 Aug 2021)

August 9, 2021 el15

Dear all S&P500 has clocked its sixth consecutive month of gains in July 2021. This is the longest stretch since 2018. Furthermore, S&P500 has touched a record high to close at 4,437 on 6 Aug 2021. In the next 3 months, are markets poised for higher highs? Or should we be prudent and take some profit off the table first? Let’s take a look. Ernest’s personal market observations a) Lack of catalysts to push the market higher Since Covid last year, markets, especially U.S. markets, have been able to push higher due partly to the combination of ultra-easy monetary policies; […]

STI – Will it head for new YTD high after S&P500 clocked its 7th consecutive day of rally? (6 Jul 2021)

July 6, 2021 el15

Dear all S&P500 and Nasdaq clinch fresh record highs last Friday with S&P500 clocking in seven consecutive days of gains in its longest winning streak since August 2020. Despite the roaring U.S. markets, Singapore Straits Times Index (“STI”) has slipped almost 100 points from its 2021 intraday high of 3,237 on 30 Apr 2021 to close 3,141 on 5 Jul 2021. Can STI exceed 3,237 for 2HFY2021? Most strategists believe so, as their year-end targets for STI are easily above 3,237. Let’s look at the possible reasons why analysts are positive on our Singapore market. Reasons to be optimistic […]

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)

June 1, 2021June 1, 2021 el15

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 […]