Nasdaq has soared 14% in 1 month! Should we chase this rally? (30 Jan 23)

Dear all It has been a busy January. As you are aware, I have kept my powder dry by taking it slow and easy in Dec and have taken some opportunistic positions amid the sell-off in Dec. Just to recap, with reference to my writeup published on 3 Dec (click HERE), where I mentioned that I am taking it slow and easy in Dec, S&P500 and STI fell by 5.9% and 1.2% respectively in Dec. In fact, S&P500 registered the worst Dec performance in four years. However, Hang Seng was still very resilient and jumped 6.4% in Dec on continual […]

Tianjin Pharma – A potential undervalued company, net cash; rides on favourable tailwinds (24 Dec 22)

Dear all Last Friday, personal protection equipment (“PPE”) and glovemakers rallied as much as 3% – 36% in a single day (See Table 1 below). This outperformance may be attributed to concerns that the Covid situation in China may worsen with more infections, or may cause the appearance of new variants, which may spur demand for gloves and personal protection equipment. Table 1: SG glovemakers and PPE share price performance on Friday Source: Ernest’s manual compilations 23 Dec 22 Personally, besides PPE and glovemakers which may benefit, Tianjin Pharmaceutical Da Ren Tang Group (“T14”) may be another potential and perhaps […]

Alert! Comfort Delgro – Multi-month base building & challenges key resistance – Looks bullish (6 Aug 22)

Dear Readers, As you are aware, I usually will do a stock screening using Bloomberg at the start of each month. In the screening, Comfort Delgro (“CD”) pops out on attractive valuations via my metrics. This is not the first time that CD pops out in my screening. However, coupled with some of the points below, it may arguably be a good time to take a closer look in CD. Due to time constraints, this write-up will be brief and I will just raise some pertinent points and risks. For a more complete picture, it is advisable to refer to […]

Markets may continue to be volatile but also present valuable opportunities ahead (6 Mar 2022)

Dear all We are two months into 2022. How is your portfolio doing? With reference to my writeup (click HERE) published on 17 Feb 2022, I mentioned that STI is likely to face headwinds in the near-term and SG banks’ share prices are likely to peak around 7-18 Feb based on past observations.   Coincidentally a) STI peaked on 17 Feb. In fact, STI has tumbled 6.9%, or 239 pts from its intraday high 3,466 on 17 Feb to close 3,227on 4 Mar. Last Friday’s intraday low was 3,208. More about its chart below. b) Banks – DBS peaked on […]

China Aoyuan – a potential value play? (15 Jun 21)

Dear all Against the backdrop of rising inflation, some market strategists have recommended “additional urgency” to rotate from technology plays to “old economy value stocks” to hedge against potential inflation pressures (as they believe such inflation pressures are not transitory). A stock that may tick all the right boxes may be China Aoyuan (“Aoyuan”) (3883.HK). It belongs to the old economy stocks (i.e. property sector which may be a hedge against inflation) and seems to be a value play, given that it trades at HKD7.01 on 15 Jun 21.   Who is Aoyuan? Quoting from a report by DBS Research […]

Markets are “bubblish”, or aren’t they? (5 Apr 2021)

Dear all Markets have been on a tear for the past five months. Since my write-up published on 1 Nov 2020, citing opportunities in our Singapore market (click HERE for the write-up), STI has soared 786 points, or 32.4% from 2,424 on 30 Oct 2020 to close 3,210 on 5 Apr 2021 (intra-day high today was 3,212). At the time of writing this, S&P500 futures are trading at 4,040, translating to around 24% gain over the same period. In fact, STI is the 2nd best performing market for 1Q2021 amongst 18 global benchmarks. Are markets in the midst of a […]

Starburst – building order books; bright outlook (24 Aug 2020)

In May 2019, I met Starburst’s Managing and Executive Director Mr Yap Tin Foo. Since Mar 2020, Starburst has been on a roll in winning contracts and I believe it is an opportune time to meet Mr Yap again. Despite Mr Yap’s busy schedule, he agrees to meet me on 1-1 basis to share his company’s business operations and prospects. Below are some of my takeaways from my discussion with him and from its recent results briefing.   Company description Quoting from Starburst’s press release, it is an engineering specialist in a niche industry, and designs, fabricates, installs and maintains […]

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

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 […]

Chart alert! Yoma may breach $0.280 in the near term (23 Jun 2020)

This week, Yoma catches my attention on a spike in share price, accompanied with an expansion in volume. Let’s take a look.   Chart analysis Yoma’s chart has been on a short-term uptrend since 24 Mar. ADX last trades 22.2, amid positively placed Dis, indicative of a trend. Its short term exponential moving averages (“EMA”) are rising steadily and its long term moving averages (namely 200D EMA and 200D SMA) are plateauing. Indicators such as OBV and RSI are strengthening. Volume has picked up significantly today and yesterday which may signify good odds of breaching its key resistance $0.275 – […]

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

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. […]