Ernest Lim's investing blog

Unique insights into SGX small caps

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Boustead Singapore – chart poised for a bullish breakout! (23 Jun 23)

el15

Dear all With reference to my write-up on Comfort Delgro dated 9 Jun 2023 (click HERE) where I pointed out that I am comfortable to accumulate Comfort Delgro for a trading play, Comfort Delgro closed at $1.03 on 9 Jun, the lowest close last since on 18 Mar 2004. Since my writeup, Comfort Delgro has fortunately appreciated nine out of ten trading days to close almost 15% higher at $1.18 today. This compares favourably with STI which moved up 0.2% over the same period. Another stock, Boustead Singapore has recently caught my attention due to its chart development. It closed […]

Comfort Delgro closed at $1.03, lowest last seen on 18 Mar 2004! (9 Jun 23)

el15

Dear all Comfort Delgro (“CD”) closed at $1.03 today. Based on Bloomberg, this was the lowest close last seen on 18 Mar 2004. The main reason cited for this recent drop was that Citi has reduced its target price for CD from $1.63 (26 Feb 2023) to $1.32 (2 Jun 2023). Nevertheless, they maintained their buy call. Is it all doom and gloom? Should we throw in the towel and just give up on CD? Personally, I find CD interesting at current levels. Before I delve into it, just for record purpose, I have a previous article on CD published […]

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

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 […]

Keppel Corp slumps 7% post results to $7.11 – Any trading opportunity ahead? (8 Feb 23)

el15

Dear all, Kep Corp has fallen $0.54 or 7% from $7.65 on 2 Feb to close $7.11 yesterday. In this write-up, I will elaborate on my take on what has happened and whether there is any trading opportunity.   Why did Kep Corp plummet 7%? Kep Corp announced 4QFY22 results on 2 Feb after market. Based on CGS-CIMB report, Kep Corp’s FY22 net profit of S$927m slightly beat estimates, at 102% consensus estimates. So what has caused the sharp drop in share price post results? My guess is that Kep Corp probably drops because a) Kep Corp has appreciated 7.6% […]

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

el15

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 […]

Comfort Delgro sinks to 14-year low! Will it go lower? (19 Jan 2023)

el15

Dear all On 11 Jan, Comfort (CD) closed at $1.21, the lowest close since 31 Oct 2008. The next day, to the horror of CD’s shareholders, it broke $1.21 with volume expansion and closed at $1.18. At the time of this write-up, CD closed today at $1.14, the lowest close last seen 29 Oct 2008. Will CD fall more? Or will this be a comfortable trade at current level? Let’s read on for more.   Possible reasons to be bullish A) Still a recovery play CD with its operations in Australia, China, Singapore, UK etc. should gradually benefit as economies […]

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

el15

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 […]

Nov has been a fantastic month for equities! What’s next? (3 Dec 22)

el15

Dear all With reference to my writeup published on 25 Oct (click HERE), where markets seem to be plagued with various negative news, I pointed out that Dow may have formed a bullish double bottom formation. In the writeup, I also featured Hang Seng tracker ETF (2800.HK) and UOB. My clients would have noticed my almost daily writeups on the stocks to consider taking a closer look as they hit lows in Oct. Below are only some of the stocks which I have featured on my blog in Oct and their performance. Table 1: Featured writeups on my blog in […]

Dow seems to have formed a bullish double bottom formation (25 Oct 2022)

el15

Dear all Talk to anyone and I guess at least 50% of them are shaking their heads. Some of their usual concerns are a) Anxieties on the economy and their jobs in 2023; b) Hit by inflationary pressures from rising costs ranging from food, fuel, electricity, cars and properties; c) Worries over their home mortgage as rates are soaring through the roof; d) Concerns on their portfolios whether there may be more losses ahead and etc… At the point of writing this article, Hang Seng closed -1,030 points lower, or -6.4% to close 15,181. Is it all doom and gloom? […]

SGX drops for 12th consecutive day, longest losing streak since IPO! (20 Oct 22)

el15

Dear all, Since 4 Oct 2022, SGX has fallen for 12 consecutive sessions, logging its longest losing streak since IPO in 2000! Over the past 12 sessions, SGX has lost a total of 12.5%, or $1.19 to close at $8.33 on 20 Oct 2022. It is noteworthy that STI has only fallen 3.7% over the same period. In addition, SGX’s RSI closed 13.3, the lowest since 2008!   The below is a sample of a stock alert / observation which I typically send to my clients on a regular basis. Readers who are interested can consider signing up at http://ernest15percent.com. […]