Ernest Lim's investing blog

Unique insights into SGX small caps

resistance

2 companies to watch out as markets reach new highs (3 Nov 17)

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Based on yesterday’s close, Nasdaq clocked a 63rd record close for 2017 and overtook the previous 62 record closes for 1980! S&P500, Nasdaq and Dow registered their 25th record close for 2017 simultaneously, matching the record established in 1995. On our local front, STI approaches a more than two year high. 2017 has not ended yet. For those investors who have not invested much, are they too late to the party? Are there still stocks with scope for potential upside? Personally, I believe that there are two companies, namely Hatten Land (“Hatten”) and GSS Energy (“GSS”) with interesting charts and […]

Ernest’s market opinion (27 Oct 17)

el15

Dear all STI has closed at 3,386, a fresh 29-month high. Some of you who have been less than 30% invested in their portfolios and have not added more exposure in their equities portfolio last month are wondering whether you have missed out of the rally. Should you continue to chase this? Read on for more.   S&P500 last closed 2,581 S&P500 is on a strong uptrend with all the exponential moving average (“EMA”) trending higher. ADX closed at 29.3, amid positively placed DIs, indicative of a trend. RSI closed at 70.7. This is not extremely overbought, relative to past […]

What’s next for Sapphire if HKICIM becomes a substantial shareholder (19 Oct 17)

el15

Sapphire surged 11.5% this morning to touch an intraday high of $0.340 today on an announcement posted on SGX late last night. It closed +$0.01 to $0.315.   What happened yesterday? Two of Sapphire Corp’s largest shareholders, namely Best Feast Limited and Ou Rui Limited are swaping a combined 27.96% stake in the company with new shares to be issued by Hong Kong-listed Hong Kong International Construction Investment Management Group (“HKICIM”). According to an announcement by Sapphire, the above share swap represents Sapphire’s share price of approximately  S$0.51[1] per share.   Why Sapphire? I have been following up on Sapphire’s […]

GSS Energy – Personal view from technical and fundamental aspects (6 Oct 17)

el15

In my technical write-up on GSS Energy (“GSS”) dated 14 Sep 2017 (click HERE), I highlighted the possibility that GSS may be on the verge of forming a potential inverse head and shoulder formation. For this write-up, I have put in my personal view based on both technical and fundamental aspects. Read below for more.   Technical outlook – bullish Why do I feel the chart looks positive? a) Previously, in my earlier technical write-up, I mentioned that a breach above $0.157 with volume and on a sustained basis points to an eventual measured technical target of around $0.186. GSS […]

Hatten Land – poised to breach above $0.210 (26 Sep 17)

el15

Hatten Land (“Hatten”) has been trading in a tight range $0.192 – 0.210 for the past two months. Recently, there seems to be a pick up in the volume traded for the past two days. Hatten’s chart looks positive on several fronts.   Chart analysis Based on Chart 1 below, odds seem high that Hatten may be poised to breach above $0.210 in the next couple of months. This is because a) The recent price increase (albeit mild price increase) is accompanied with volume. On the days which Hatten falls, it is accompanied with lower than average volume; b) A […]

GSS Energy potential inverse head and shoulder formation (13 Sep 17)

el15

Since my write-up on GSS Energy (“GSS”) dated 18 Aug 2017 (see HERE), GSS’ share price has jumped 12% from $0.137 on 18 Aug 2017 to close at $0.152 on 13 Sep 2017. Based on my personal chart observation, it seems likely to be in the midst of forming a potential bullish inverse head and shoulder formation.   Chart outlook GSS has reclaimed its 200D exponential moving averages (“EMA”) within three trading days after breaching. It has subsequently moved back to its lower trading range of around $0.152. Based on Chart 1 below, there are certain noteworthy points. a) Potential […]

Ernest’s market opinion (18 Aug 17)

el15

Dear all Our STI has broken a one-month trading range of around 3,288 – 3,348. Where will STI and the other indices go from here?   S&P500 last closed 2,426 Based on Chart 1 below, although 20D exponential moving average (“EMA”) is trending lower, the other EMAs, namely 50D, 100D and 200D EMA are still trending up. RSI closed at 37.2. Since 7 Nov 2016, the lowest RSI was around 35.9 on 10 Apr 2017. Although the directional indicators (“DIs”) are negatively placed, ADX is still at a low 12.2 which is indicative of a trendless market. My personal view […]

GSS Energy dived 31% since 29 Mar 17. What gives? (18 Aug 17)

el15

Since my write-up on GSS Energy (“GSS”) dated 28 Nov 2016 (see HERE), GSS’ share price has surged 154% from $0.078 on 28 Nov 2016 to an intraday high of $0.198 on 29 Mar 2017. It has subsequently dived 31% to close $0.137 on 18 Aug 2017. For chartists who monitor GSS, they would have noted that GSS has broken its 4-month trading range of (approximate) $0.152 – 0.181 which is a bearish development. In this write-up, I will structure it differently. To attempt to explain the price fall, I will discuss what has changed and what has not changed […]

Hatten Land – chart looks positive on several fronts! (10 Jul 17)

el15

Pursuant to my previous write-up on 23 May 2017 (click HERE for the earlier write-up) citing the oversold nature on Hatten’s chart, Hatten has surged 20.2% from $0.183 on 23 May 2017 to close $0.220 on 10 Jul 2017. Hatten’s chart looks positive on several fronts.   Chart analysis Based on Chart 1 below, Hatten’s chart seems to have several positives. a) It is evident that the recent price increase is accompanied with volume. On the days which Hatten falls, it is accompanied with lower than average volume; b) A double bottom formation seems to have formed with the neckline breakout […]

Sapphire – 4 interesting updates which market may have ignored (2 Jun 17)

el15

Since my last company update on Sapphire on 10 Mar 2017 (see HERE), Sapphire has unveiled other interesting updates. Although the share price did appreciate 15% from $0.310 on 10 Mar 2017 to a high of $0.355 on 3 Apr 2017, it has since slid back to $0.320 on 2 Jun 2017. What are the recent updates and why are they interesting?   Strategic collaboration with Beijing Enterprises Water and China Railway On 16 May 2017, Sapphire announced that its wholly owned infrastructure business, Ranken has entered strategic partnerships with major Chinese conglomerates and state-owned enterprises to explore civil engineering […]