3 stocks, Comfort Delgro, Thai Bev and Wilmar trade at attractive valuations (11 Oct 22)

October 11, 2022 el15

Dear all Yesterday, Comfort Delgro, Thai Bev and Wilmar closed at $1.25; $0.565 and $3.64 respectively. Personally, they look interesting on several aspects. At $1.25, Comfort Delgro trades at levels last seen in 2011 and 2009! At $0.565, Thai Bev sits on a long term uptrend line established since 2009! At $3.64, Wilmar trades at approximately 2.2x and 3.0x standard deviations below its 10Y average PE and P/BV of around 13.8x and 1.1x respectively! Read on for more. *Comfort Delgro* I have previously published a write-up on Comfort Delgro. Readers can refer to my write-up HERE for more information […]

Table 1_Aztech ave analyst target 12 Apr 22

Aztech looks interesting – lowest forward PE among SG tech stocks with a 5.6% estimated dividend yield! (16 Apr 22)

April 16, 2022 el15

Dear all This week, Aztech has caught my attention amid rising volume with its 1QFY22F business update just around the corner. It has fallen approximately 39% from an intraday high of $1.56 on 27 Apr 2021 to close at $0.950 last Thursday. Let’s take a look on the interesting points and potential risks on Aztech. Interesting points a) Analysts like Aztech with average target price $1.44 With reference to Figure 1 below, 4 analysts cover Aztech and all rate it a buy. Average analyst target price is around $1.44. If the analysts are right, Aztech offers a potential capital […]

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

March 6, 2022 el15

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 […]

AEM enters bear market despite analysts’ positive calls. What gives? (20 Feb 22)

February 21, 2022 el15

Dear all AEM has fallen 21% from an intraday high of $5.37 on 14 Dec 2021 to close $4.25 on 18 Feb 2022. What has happened in the last two months to warrant such falls? Based on Bloomberg, average analyst target price is around $6.72, representing a potential capital upside of around 58%. Is this the bottom for AEM, or will it fall further? Personally, I think AEM is worth a closer look at $4.20 – 4.30 region. Let’s take a look at its investment merits and risks. First things first, what does AEM do? According to its company […]

Table 2_Top ten stocks sorted by total potential return 31 Jan 22

STI is up 10.1% YTD; may face profit taking in the near-term (16 Feb 2022)

February 17, 2022 el15

Dear all STI has been on a tear since the start of the year. With reference to my write-up published on 5 Jan 2022 (click HERE) citing that Asian indices are likely to outperform that of the U.S. market in 2022, STI has indeed notched strong year to date (“YTD”) gains of 10.1% to close 3,439 on 16 Feb 2022. This outperformance is especially stark if we compare it to S&P500’s -6.1% YTD returns. As I have shared with Lianhe Zaobao on 9 Feb 2022, I personally feel that our STI is overbought in the near term with several near-term […]

Table 1_Top ten stocks sorted by total potential return 29 Oct 21

STI – having closed at a record YTD high, will it continue higher? (7 Nov 2021)

November 7, 2021 el15

Dear all With reference to my market outlook published on 3 Oct (see HERE) citing opportunities in our Singapore market, STI has soared 191 points, or 6.3% from 3,051 on 1 Oct to close at a year to date high 3,242 on 5 Nov. Will STI continue to march higher, or will there be some profit taking? Very briefly, my personal view is It is likely that STI may face some profit taking in the near term, attributable in part to the following factors: a) With reference to Figure 1 below, MSCI Singapore index will undergo a rebalancing in […]

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

August 9, 2021 el15

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 – a potential value play? (15 Jun 21)

June 15, 2021 el15

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 […]

City Dev falls nine out of ten sessions; near Mar 2020 low amid oversold RSI (2 Nov 2020)

November 3, 2020 el15

Dear all, Since 19 Oct 2020, City Dev has fallen nine out of ten sessions with a cumulative drop of 20%. City Dev closed at $6.20. Let’s take a look why this City Dev has slumped and why it has caught my attention. Reasons why City Dev has underperformed The below list of likely reasons is not exhaustive. It is just based on my personal view what may have caused City Dev’s underperformance. 1) Concerns over how much support is required by Sincere Property Group Concerns over how much support is required by Sincere Property Group (“Sincere”) flare up […]

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

July 30, 2020 el15

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 […]