Table 2_Top ten stocks sorted by total potential return 30 Sep 21

STI at 3,051 – Presents some attractive opportunities (3 Oct 2021)

Dear all With reference to my market outlook published on National Day (see HERE), both STI and Hang Seng have hit their highs on 10 Aug and 11 Aug respectively before dipping. Based on Table 1 below, S&P500, Hang Seng and STI have fallen 1.8%, 6.1% and 4.0% respectively since my writeup. Table 1: Indices’ performance since my last writeup Source: Ernest’s compilations Amid the recent weakness, you may be wondering whether it is a good time to accumulate on weakness. Before we get to this, let’s take a look at the indices’ charts.   S&P500 closed 4,357 Based on […]

GSS Energy chart 24 Sep 21

GSS Energy looks interesting; key level for potential bullish breakout is at $0.075 (27 Sep 2021)

Dear all Of late, GSS Energy (“GSS”) has caught my attention. It has dipped from an intraday high of $0.083 on 17 Sep 2021 and has weakened to $0.072 on 24 Sep 2021. This weakness may be attributed to profit taking and contra players exiting or rolling their positions. 24 Sep is T+5 of its high-volume day on 17 Sep. My personal guess is that most of the contra players may have already exited (i.e., selling may have been largely exhausted). It may be time to relook into GSS Energy. Let’s take a look.   Basis a) E mobility business […]

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; […]

China Aoyuan Analyst 11 Jun 21

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 […]

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 […]

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 […]

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 […]

YZJ Analyst 5 Feb 21

Yangzijiang looks interesting; tests support $0.940 – 0.980 (8 Feb 21)

Yangzijiang (“YZJ”) has weakened approximately 13% from $1.11 on 13 Jan 2021 to close $0.970 on 5 Feb 2021. It has significantly underperformed STI (STI only dropped around 3% over the same period) and is the top STI constituent stocks with the highest potential return (see HERE). Why is it interesting? Read on for more…   Interesting points on YZJ a) Orders are likely to improve in FY21F Based on DBS Research 3 Dec 2020 report, the surge in China (Export) Containerized Freight Index (highest since Mar 2015) and the tripling of the Baltic Dry Index may prompt ship owners […]

Analyst 2 Feb 21

Jiutian – still on an uptrend, tests resistance $0.101 (2 Feb 21)

Dear all With reference to my write-up on Jiutian posted on my blog on 2 Dec 2020 (click HERE), Jiutian touched an intraday low of $0.066 on 14 Dec 2020 before touching an intraday high of $0.116 on 25 & 26 Jan 2021. At the time of this write-up, Jiutian is trading at $0.101 and is on track to test an important resistance $0.101. At current levels, Jiutian seems interesting on the following basis: A) Average selling prices (“ASP”) have improved from the recent low seen in Dec Based on the DMF price as shown on this website (click HERE), […]

Table 1_Ave premium to VWAP

My thoughts on Sing Medical Group’s possible share transaction (29 Dec 20)

Dear all Sing Medical Group (“SMG”) announced on 18 Dec 20 that the Company is currently in discussions with a third party regarding a possible transaction involving the Company’s shares. The discussions are preliminary and there is no certainty or assurance that such discussions will progress beyond the current stage or that any transaction will materialise as a result of such discussions.   Why am I interested in SMG? My personal view is that at $0.315, given a potential share transaction scenario, the risk reward seems favourable. Please refer to my basis and the risks as highlighted below: 1) Past […]