Table 1_Top ten stocks sorted by total potential return 30 Jul 21

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

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; […]

Fig 1_Analyst 29 Mar 21

Thai Bev may be ripe for a bounce; BeerCo IPO potential near term catalyst (29 Mar 21)

Thai Bev has slumped 14% from an intraday high of $0.850 on 8 Feb to close $0.735 on 29 Mar 21. It is looking interesting again as it hovers around its strong confluence of supports from $0.715 – 0.725. Personally, it seems ripe for a technical bounce. Besides the technical outlook, Thai Bev has the highest potential upside among the STI component stocks with a potential capital upside of around 21%! What else is interesting about Thai Bev? Read on for more.   Interesting points on Thai Bev a) Highest potential capital upside for STI component stock With reference to […]

Jiutian 2020 chart 2 Dec 2020

Jiutian – proxy to economic recovery and exposure to EV sector (2 Dec 20)

Dear all Since my write-up “Singapore – Asia’s worst equity market YTD, any opportunities ahead?” posted on my blog on 1 Nov 2020 (click HERE) citing opportunities in our Singapore market, Singapore market (as represented by STI) has clocked in its best monthly return in Nov 2020 since May 2009, up 15.8%! In the U.S., the strong market sentiment is filtering to its small mid cap space with Russell 2000 hitting record high last week. For those readers who are looking for Singapore small caps which are overlooked by the market, Jiutian Chemical (“Jiutian”) may be an interesting company to […]

Analyst 11 Sep 20

Riverstone – Is the recent 32% decline justified? (12 Sep 2020)

Riverstone recently caught my attention. It has tumbled approximately 32% from an intraday high of $4.90 on 7 Aug 2020 to close $3.33 on 11 Sep 2020. One client even thought that Riverstone has already undergone a bonus issue! The recent weakness is likely attributed to its co-founder selling 15.5m shares at $3.95 (Bloomberg cites a 90-day lockup on seller); the possibility of a vaccine resulting in demand for gloves and consequently their average selling price (“ASP”) falling off the cliff and some Malaysia investors selling shares to raise cash, as their moratorium on loan repayment ends (click HERE for […]

STI 1Y chart 24 Dec 19

STI – to head towards 3,390 points in 1Q2020? (25 Dec 19)

Merry Xmas! As we approach end 2019, most market strategists are putting their market estimates for end 2020. Although I do not profess to be in the league of these market strategists, just for fun, I am expecting STI to head towards 3,390 in 1Q2020. STI closed at 3,222 on 24 Dec 2019. I have outlined my basis and the risks involved.   Factors for my bullish basis a) Chart looks positive after bullish break Based on Chart 1 below, STI has staged a bullish break above its flag formation on 12 Dec 2019. Notwithstanding below average volume for the […]

Chart 3_S&P500 chart 6 Sep 19

S&P500 at 2,979 – limited potential upside (8 Sep 19)

With reference to my earlier write-up (click HERE) titled “Why am I cautious going into July…”, July was coincidentally the peak for S&P500. Hang Seng touched an intraday high of 29,008 on 4 Jul 2019 before slumping 4,108 points to an intraday low of 24,900 on 15 Aug 2019 (Hang Seng closed at 26,691 on 6 Sep 2019.) Personally, given the current market levels and information, I am not comfortable to raise my current percentage invested from 53% to significant levels (say >80%). Why am I cautious in the market? Do read on…   Factors supporting my cautious basis Above […]

U.S. indices monthly performance since 1928

S&P500, Nasdaq and Russell 2000 hit records, time to switch to underperforming markets? (24 Aug 18)

Dear all, S&P500, Nasdaq and Russell 2000 hit records last Friday with S&P500 closing at 2,875. However, our STI has dropped 11.8% after hitting a decade high of 3,642 on 2 May 2018. Hang Seng has also tumbled 17.4% after hitting a high of 33,484 on 29 Jan 2018. Is this the time to switch out of the U.S. markets and plough it back to STI and Hang Seng? This seems to be the question on most investors’ minds as I am also posed this question during a live interview on Money FM89.3 on last Thursday. Let’s take a closer […]