Tea with AK71: $1.20 Ice Kachang.

Recently, while chatting in LP's cbox, Isaac mentioned Ice Kachang at some food centre priced at $1.50 a bowl. Some said that's cheap and that Ice Kachang costs $2.00 or $2.50 these days. Really?

I said I like the Ice Kachang at Tiong Bahru Market.  It is only $1.20 a bowl! Where to find? Tian Tian Yuan Dessert Garden, Tiong Bahru Market. Haha.. I went there for a bowl of the said Ice Kachang this evening and took some photos with my trusty Samsung phone camera:

I like Tiong Bahru Market. It is bright, airy and clean. You get a glimpse of the market here in the background:

These are photos of the Ice Kachang after I have mixed it up. Some would eat up all the ice first but I can't do it. I would get severe brain freeze!

How many attap chee? Three! Quite generous, I feel. Of course, lots of corn and lots of chendol as well!

Feel like having an inexpensive dessert, Singapore style? You know where to go. :)

Courage Marine: A dividend of 0.71c per share.

On 18 January, Courage Marine gapped up as it opened at 22c. My overnight sell queue was filled as I reduced my exposure to the counter by half. At the time, I said "The BDI has already broken the previous low and it is yet unclear where the next low would be but with greater increase in bulk shipping capacity in the near future, upside could be limited as supply outstrips demand." Recently, the BDI has found another low and has turned up:

In its press release, Courage Marine's management said that "Based on the report from Deutsche Bank on Feb 9, 2011, the BDI may experience a possible turnaround from current low level and is expected to return to normal in 1 to 2 months’ time." I expect normal to mean 2,500 or so but that would still be a lower high. The future for bulk carriers looks difficult indeed if this were the case.

I also said that "I would hold on to see if price could go higher either through further developments in its plan to dual list in Hong Kong or through a possibly generous dividend payout." Well, a dividend of 0.71c per share has been declared. Not too spectacular although it represents a dividend payout ratio of 83% based on the net profit after tax.

What would I do now? Sell into strength, if the opportunity presents itself.

See press release here.

Related posts:
Courage Marine: Dual listing.
Courage Marine: Retreating to support.

CapitaMalls Asia: Support at $1.88 gave way.

The immediate support at $1.88 gave way today as price closed at $1.87. I have a faint suspicion that on top of a lack of buying interest, there were also people who did not want to hold on to a long position over the weekend. Whatever it could be, price weakness was on the back of similar volume as the session before. A sell down without heavy volume but a sell down nonetheless.

The MACD has completed a bearish crossover with the signal line and dipped into negative territory. The MFI and RSI both dipped below 50%. My long positions taken at $1.92 and $1.88 are underwater. A retest of the low of $1.83 is not improbable. What would I do? Add to my position?

I would add to my position only if the support at $1.83 holds up . If that support breaks, using a few sets of Fibo lines, the next major support could be at $1.70 and that is some way to fall.

Related post:
CapitaMalls Asia: Full year FY2010 results.

AIMS AMP Capital Industrial Trust: Weekly chart.

I am going to plant some nightmarish thoughts in your head about AIMS AMP Capital Industrial Trust's unit price. Anyone who has been following my blog would know that I like this REIT for its high yield and how I think that risks are minimal what with the management refinancing at lower interest rates of 2.1+% and having no loans due until 2014. Even with the latest acquisition and share placement, the REIT's numbers remain healthy and I have estimated a mildly diluted DPU of 2c. At 21.5c, that is a distribution yield of 9.3%. Also, remember that this DPU is estimated based on managment distributing 97% of the REIT's distributable income against some other REITs which distribute 100% of their distributable income. OK, sounds good. Where is the nightmarish thought?

Look at the weekly chart. See the black candle formed this week and on much higher volume to boot? See how the MACD plunges towards zero and how the MFI is already in oversold territory? The OBV and RSI have similar bearish stories to tell.

On 15 Feb, I said that "I, however, am not entertaining any grand delusions that price might not weaken further once the counter goes XD. Using Fibo lines gives us a clue as to where the supports would be next. 20.5c is where we find 123.6% and 20c is where we find 138.2% as well as 150% (which is at 19.8c). As both 38.2% and 50% are golden ratios, I expect 20c to be a very strong support level if ever tested." Well, I am happy to report that the 21c has been holding up admirably and I still believe that my decision to buy in at 21c was right. The purchase would also be entitled to an advanced DPU of 0.285c.

So, would price weaken next week? I truly do not know but the possibility exists. The next distribution in June would probably see a DPU of 0.215c (0.5c - 0.285c) at the most although I suspect that it would be lesser as the income contribution from Northtech would take some time to kick in. So, with 11% more units in issue from the placement and if contribution from Northtech would not kick in till the next quarter, I expect the DPU in June could be 0.215/111 x100 = 0.1937c. Not very attractive? A reason for selling? Perhaps.

As I am investing in this REIT for income for the longer term, believing that its attractive yield is sustainable, I am not shaken by any short term fluctuations. If unit price were to test 20.5c or 20c, I am buying more.

Related post:
AIMS AMP Capital Industrial REIT: Oversold.

Golden Agriculture: 200dEMA shattered.

This is a daily chart using the 200dEMA. The support provided at 66c didn't stand a chance and was shattered. Closing on high volume at 65c, the 200dMA at 63.5c could be tested next. If that breaks, we could see this counter's share price diving. Where would be the supports then? 

One look at the chart suggests that supports could be found at 61c and 58.5c.  58.5c? Yes, that was where Golden Agriculture gapped up on 11 Oct 2010 and that gap could be covered eventually. Sounds horrifying for people who went long near the top? You bet.

What would I do if I were in their shoes? Well, prices go down a river of hope. Rarely do they go down in a straight line. There would probably be rebounds and when these happen, former supports would become resistance. Selling at resistance in a downtrend is the thing to do.

In the meantime, I will continue waiting for clearer signs of a reversal, if any.

Related post:
Golden Agriculture: In full retreat.

Golden Agri off 3.0% in heavy volume, falling for the seventh straight session and taking its year-to-date loss to 18.8%. ; CPO price fall
Friday, 18 February 2011

© 2011 - The Edge Singapore

CapitaMalls Asia: Full year FY2010 results.

A good set of numbers overall. Anything negative? Well, judging by the less than enthusiastic response from market participants, the proposed dividend of 2c per share probably failed to impress.

Although the share price of CapitaMalls Asia has been relatively resilient compared to other counters in the STI in the recent sell down, the outflow of funds from emerging markets is probably a dampener on its performance too. I received the following in my mailbox today:

For YTD 9-Feb-2011 there was a funds outflow of US$ 4.7 billion from Emerging Markets (China – US$ 2.19 bn; India – US$ 0.98 bn), with China and India accounting for 67% of the total funds outflow. The USA was the main beneficiary with net inflow of US$ 23.61 bn. [Source: EPFR Global, Data as at 9-Feb-2011].


The presentation slides are comprehensive and what I like about them the most is the candid manner in which the management shared the lessons learned from their 1st generation through 3rd generation malls in China. Although CapitaMalls Asia has malls in Singapore, Malaysia, India and Japan too, the largest market would still be in China eventually and they plan to have as many as 100 malls in China within the next 3 to 5 years.  Already 5 more malls would be completed in 2011. The management is now able to replicate their successful model in other parts of China quickly and reap returns at a faster pace.

See presentation slides here.

What about the technicals?  One look at the candlesticks and we would get the shivers. A bearish engulfing candle. Not good. However, notice the very long lower wick? This suggests some bullish buying which helped to push the counter to close at $1.92 which is where we find the 50dMA. It does not, however, change the fact that the bears have won the day.

I next look at the momentum oscillators.  The MACD's uptrend is still intact and it is still in positive territory although it does look like it could be making a bearish crossover with the signal line soon. The MFI and RSI have both turned down and are testing 50% as support. The mild upward bias of the MFI since the low of 31 Jan suggests that there is some demand and support for the counter.

What would I do? If price were to move higher, market participants who were waiting to sell at $2.00 like I was would sell into strength and, very likely, resistance such as $1.98 would become tougher to crack. Basically, a lowering of expectations would make lower resistance levels stronger. Of course, if these were to break, price could fly. I would set my sell orders at resistance. No surprises there.

What if the price moved lower which could very well happen? Taking a peek at the weekly chart, the MACD is still in negative territory but it is on the verge of forming a bullish crossover with the signal line. The MFI and RSI have both risen out of their oversold territories. Having said this, it is amply clear that the longer term downtrend is still intact. $1.83 could just be a floor.

There is one session left tomorrow before the weekly chart is complete but if price were to retest $1.83 successfully a second time round, I would expect strong buying interest from market participants.

Related post:
CapitaMalls Asia: Buy signal.

Golden Agriculture: In full retreat.

I last blogged about Golden Agriculture on 31 January and I mentioned that "TA is not about having a crystal ball and knowing exactly what would happen but TA is useful in that we would know exactly what to do if something happened.  So, in case price moved higher to 73c, I would reduce my long position. In case price moved lower, I would wait for it to go closer to the 200dMA at 63c before adding to my long position. That's my plan."

The counter's share price did move higher in subsequent days to test the trendline resistance and even whipsawed out to touch a high of 75c before retreating once more. Have you reduced your long position?

When to go long again? Well, if you believe that the outflow of funds from the emerging markets to developed markets is a temporary phenomenon and if you believe that crude palm oil will cost more in 2011, buying into Golden Agriculture at lower levels makes sense.  The 200dMA is now at 63.5c while the 200dEMA which gives greater weightage to more recent prices is at 66c. I could tiptoe into the stock then.

Tiptoe? As the overall technical picture is still rather bearish with the formation of a lower high as well as a most certain lower low, any long position without a definite picture of positive divergence is a hedge at best.

Related post:
Golden Agriculture: Resistance at 100dMA.

Tea with AK71: My Samsung mobile phone.

I have shared on my blogs some photos taken with my trusty Samsung mobile phone camera. Some readers have asked me for the model number of my phone as they would like to get one too. I looked but there is no model number stated on the phone. It just says "5.0 Mega Autofocus" on the back.

How did I get this phone? Well, my sister was wondering what to get for my birthday in 2009 when I suggested that she get a free phone from her telco when she re-contracted that year. That phone was my birthday present.

For those who are still interested in getting the same phone I have, here are some photos of the phone. I borrowed a digi cam to take these. I hope these photos help in your search. Waiting for a white color iPhone4? My phone is white too!

Oh, the picture of the back of the phone has a piece of paper which was intentionally placed there to block a sticker on the phone. My little secret. ;-)

Tea with AK71: Powered by nature.

These are structures placed directly at the MBLM exit fronting Marina Bay on the ground level:

A wind powered sculpture that lights up at night. This is really beautiful and I should take a picture of it at night next time.

Solar powered fans in stylish shelters. A really cool idea!

I am always happy to see efforts at generating clean energy. I guess we must not lose hope.

LMIR: 4Q FY2010 results.

I could take my last blog post on LMIR, substitute some numbers and that's the end of it. There is really nothing exciting or new to say about this REIT. It also continues to disappoint in its lacklustre distributable income. Let's give it a try. See changes in bold dark blue color:

Distributable income at $12.029 million. DPU at 1.11c is higher than the 1.09c in the last quarter. This represents a marginal increase of 1.8% over the previous quarter.

Unfortunately, the management lost $2.3m in foreign exchange forward contracts. Without these contracts, the distributable income would increase by 19.18%!

OK, that was easy. Some numbers:

Gearing: 10.3%
NAV/share: 83c
DPU for FY2010: 4.44c

It is interesting how the management left out the DPU for FY2009 in its presentation slides which was 5.04c and that happened on the back of much lower revenue of $85.758m. Gross revenue bumped up 50.9% in FY2010 and yet the DPU reduced by 12%. Am I missing something here? Great potential but a poor management? A rhetorical question, perhaps.

Borrowing the words of OCBC Research:
The manager attributed (the falling income distributions, year on year) to the appreciation in the IDR, which has caused the gap between the hedged rate on distributions and the physical rate to reverse unfavorably...

Still, it is a rather safe investment for anyone who is investing for income. This is its only redeeming quality.

Read announcements:
Unaudited financial statements.
Presentation slides.

Related post:
LMIR: Foreign exchange forward contracts.

CapitaMalls Asia: Buy signal.

CapitaMalls Asia has a buy signal on the MACD histogram. A white candle without an upper wick was formed today on slightly higher volume as price closed at $1.96 and this has a bullish tone.

The MACD has been forming higher highs and is rising in positive territory. The MFI has formed a higher low as it broke resistance at 50% to move higher. Since 17 Dec 2010, the OBV has been moving higher although in a choppy manner. So, there is continual accumulation.

The 20dMA at $1.93 is resistance turned support and we could see price move higher.  Immediate resistance is at $2.00 which is where we find the upper Bollinger band and $2.03 which is defined by the third downtrend resistance line drawn from the high formed on 6 Oct 2010.

Breaking $2.03 on high volume could see the counter moving higher but bearing in mind that the longer term downtrend is still intact, I would rather err on the side of caution and divest most of my long position at resistance levels identified. Where is the longer term downtrend resistance line now? At approximately $2.14.

Related post:
CapitaMalls Asia: Moving higher?

Raffles Education: Doji at 28c.

That selling pressure has eased is quite obvious. The MFI has turned up somewhat when it looked as if it was destined to fall into oversold territory. The RSI is rising just a tad in oversold territory. The MACD is just into negative territory and things are looking too marginal to say momentum has turned negative at the moment. Is there a chance of a rebound?

Believe it or not, the uptrend for Raffles Education which started on 21 Dec 2010 is still intact. The trendline support is rising towards 27.5c which is the low today and it would soon reach 28c in the next week. So, what does conventional wisdom say? Buy at supports in an uptrend.

It could also be said that price has been retreating on declining volume and that the doji formed today on relatively low volume is a possible reversal signal. All good but we will need confirmation tomorrow. That's the way of TA. Always needs confirmation.

What would AK71 do? Nothing. Why? Well, the declining 200dMA is at 29c or so. That could become quite a strong resistance given the bearish sentiments with China possibly increasing interest rates again soon to weaken inflationary pressures. Raffles Education's ambition of becoming a real estate developer in China could be a victim of bad timing.

When in doubt, I stay out.

Related post:
Raffles Education: Support at 30c.

NOL: Return to profit.

NOL reported a return to profit which beats analysts' estimates and declared a dividend of 4.6c per share!  Good news for shareholders, indeed!

Technically, the flat 200dMA is providing support and we could see price going higher tomorrow. I expect initial resistance at $2.18 which is where we find the rising 100dMA. Stronger resistance is expected at $2.23 which is where we find the 50dMA and it is also where a dead cross was formed by the declining 20dMA and the 50dMA.

Expect some selling into strength to take place as the MFI has been forming lower highs. This suggests a dampening of demand. Watch those resistance levels. If they should be taken out on the back of high volume, then, price could go higher. $2.30 would be next.

Neptune Orient reports better-than-estimated profit on trade
Wednesday, 16 February 2011

© 2011 - The Edge Singapore

NOL swings back to black with fourth quarter net earnings at US$177 million. That compared to a US$211 million loss in the same period a year ago.
Wednesday, 16 February 2011

© 2011 - The Edge Singapore

Related post:
NOL: Full steam ahead.

CapitaMalls Asia: Moving higher?

In a sea of red, CapitaMalls Asia is one of few counters which gained in today's session. The company will release its financial results for the full year ended 31 December 2010 on Thursday, 17 February 2011 before trading hours. I am hopeful that results would be positive.

Connecting the lows of 31 Jan and 14 Feb gives us an uptrend support and price traded above this support today. $1.95 is a minor resistance and I expect it to be taken out if volume were to expand in the next session. The momentum oscillators are showing positive signs and there is a nice chance of price moving higher.

The longer term downtrend is still intact and if we connect the highs of 11 Dec 09 and 7 Oct 10, it is amply clear. Multiple resistance levels must be overcome for this counter to move much higher in price but none as foreboding as this long term downtrend resistance line.

What am I going to do? I will wait for the results on Thursday and see how things turn out. My exposure to this counter are at the prices of $1.85 to $1.92.

Related post:
CapitaMalls Asia: Bouncing off $1.88 support.

AIMS AMP Capital Industrial REIT: Oversold.

Someone asked me why did I say that 21c is technically a strong support for the REIT. I didn't take the time to elaborate on this last night. It is where the rising 50wMA is approximating.

I put in an overnight buy queue at 21c which was filled when the session today started. In spite of massive selling pressure, price closed down one bid only at 21.5c. The selling pressure is well absorbed as the REIT's unit price demonstrated admirable resilience.

I, however, am not entertaining any grand delusions that price might not weaken further once the counter goes XD. Using Fibo lines gives us a clue as to where the supports would be next. 20.5c is where we find 123.6% and 20c is where we find 138.2% as well as 150% (which is at 19.8c). As both 38.2% and 50% are golden ratios, I expect 20c to be a very strong support level if ever tested.

When would I consider selling my investment in the REIT? Well, I still have a  fair value estimate of 25c per unit as the latest development has minimal impact on the numbers I came up with last year in December. So, I am not a seller at the current level but I am definitely a buyer.

As an assurance that the REIT's financial health is not taking a turn for the worse, Moody's Investors Service says Ba2 rating for the REIT, which incorporates some financial flexibility, is appropriate. Read report dated 15 Feb 2011 here.

Related post:
AIMS AMP Capital Industrial REIT: Acquisition of Northtech.

STI off 1.0%; fund flows back to developed markets - Kim Eng
Tuesday, 15 February 2011

© 2011 - The Edge Singapore

AIMS AMP Capital Industrial REIT: Acquisition of Northtech.

I received many SMS and emails regarding this REIT's trading halt today. When it became known that the REIT is to make an acquisition and this time using mostly money from a private placement, there was much concern in the air with some asking if they should sell their investment in the REIT. Let us ask the question, "Is this acquisition sensible?"

Acquisition of Northtech building is NPI (nett property income) yield accretive. The building's NPI yield is 7.6% while the REIT's current NPI yield is 7.2%. This building has another 44 years left in its land lease from URA which is pretty good. Gearing level would be at 33.6% upon completion of the acquisition and placement exercise. Quite comfortable. See presentation slides here.

However, what is immediately important when we are investing for income is, of course, the income distribution per unit (DPU). How would the DPU be affected? Let us look at some numbers.

Acquisition price of Northtech building is S$72m. Private placement will fund approximately S$42m of the acquisition and debt would fund the rest. The REIT has an existing loan facility and also an acquisition loan facility which is a three year term loan facility and a revolving credit facility totalling $45m. What is not immediately known is the interest rate for the new acquisition loan facility. However, judging by how the manager was able to refinance previously to reduce interest margin from 3.5% to 2.16%, I am hazarding a guess that the interest rate for this new loan facility would be similarly attractive.

The share placement would bump up units in issue by about 11%. Currently, total units in issue is approximately 1,979,909,000. After placement, total units in issue would be approximately 2,199,898,000.

I estimate the NPI of Northtech building to be S$5.5m per year and the REIT's NPI prior to this acquisition (excluding 23 Changi South Ave 2 and including 27 Penjuru Lane) to be S$59m per year. NPI bumps up 9% but the number of units in issue goes up by 11%. Expecting the distributable income to be similarly affected, DPU would be diluted by 2% or so. Negligible but not nice, nonetheless.

It is also apparent that the REIT would have quite a bit of undrawn debt facility after this acquisition is over. They could possibly use this for asset enhancement purposes or for further acquisitions.

Existing unit holders can look forward to an advance distribution that would pay out the distributable income of the REIT for the period from 1 January 2011 to the day immediately before the date on which new units are issued. The DPU is estimated at 0.285c and would be paid on or around 28 March 2011. See announcement here.

Of course, the share placement does not allow all unitholders to participate in the enlarged capital base of the REIT and benefits a smaller pool of institutional investors as they buy at a 7 to 10% discount from the current market price. A rights issue would have been more equitable, for sure.

What would I do? Would I sell my stake? No, a DPU of 2c per year as per my estimate means a distribution yield of 9.3% based on the current unit price of 21.5c. In fact, if there should be some irrational selling when the trading halt is lifted, I would increase my long position in the REIT if its unit price should test 21c, which technically, is a strong support.

Please remember that although I have spent quite a lot of time (almost 2 hours) crunching numbers and styling this blog post, going through past reports and announcements as well as the ones published today, my estimates remain just that, estimates. They are good enough for me but you have to decide if they are good enough for you. Please read the disclaimer at the end of the page. ;)

See announcement on acquisition and private placement here.

Read article on AIMS AMP Capital Industrial REIT in The Edge dated 14 Feb 2011 here.

Related posts:
AIMS AMP Capital Industrial REIT: Revised DPU and fair value.
AIMS AMP Capital Industrial REIT: 3Q FY2011.

CapitaMalls Asia: Bouncing off $1.88 support.

In my last blog post on this counter, I said "Next support? $1.88. This is quite obvious from the candlesticks and also a gentler trendline support using the lows of 20 Dec 2010 and 1 Feb 2011."

Today, my overnight buy queue was filled as price touched a low of $1.88 before closing unchanged at $1.91. A doji was formed and it is a possible reversal signal. If the signal is valid, we should have confirmation tomorrow and price should move higher.

Immediate support at $1.88 while immediate upside target is $2.00. Could be a good trade.

Related post:
CapitaMalls Asia: Reloaded at $1.92.

Tea with AK71: Mini facelift of ASSI and return of AdSense.

I have finally gotten around to tidying up my blog which some readers think is a bit busy looking (which is a nice way of saying it is messy, I guess). I really didn't find my blog messy. It is just like I don't find my bedroom or my study messy. I can find my things, right? Hahaha... Yes, I have been like this forever. I would claim that there is system in my mess.

Well, I have to admit that a blog is different. It is not just a private diary for me and me only. I am sharing ideas with people on a public platform and it is only plain courtesy to make it friendlier to navigate and to find things. Oh my, I have been lacking in plain courtesy before. My apologies.

I did the mini facelift last night, rather late last night. Yawn. The major changes happened on the right sidebars. I have taken away most of the slimmer right sidebar boxes and moved them up to become wider and, I guess, easier to read boxes. I have also further broken down the blog posts under the old "Recommended" and "My strategies" headings which were boxes I threw quite a few blog posts under and didn't give them much thought. I know, yah, "Recommended" and "My Strategies" sound so helpful, right? Nah.

I have kept some old headings and together with the new headings, the blog posts are now under the headings of "Passive Income Journey", "Wealth Creation", "Stock Market Strategies", "Fundamental Analysis", "Investing in REITs and Business Trusts", "Healthway Medical" and "Precious Metals". I did actually remove some blog posts and boxes which I thought are no longer helpful as well. I showed no mercy!

The left sidebar has the same components as before except that I shifted their positions. I shifted the box which encourages readers to share ASSI right to the top while aggregating all the ways in which readers could stay in touch with ASSI under a single heading. The two headings are "Sharing my blog" and "Staying in touch". I know, pretty original, isn't it? Haha.. I also included a nifty widget from Twitter. This is just another way in which readers could stay in touch with ASSI.

Also, after 24 hours of removing all the ad spaces for AdSense or Ads by Google in ASSI, I am hazarding a guess that all readers would have read my blog post from yesterday on how I was removing the ad spaces temporarily. It was a self imposed ban, so to speak. Now, I am serving Ads by Google again.

If you have any comments at all regarding what I have done with my blog, please feel free to let me know. Have a great week ahead. :)

Related post:
Removing AdSense from ASSI for now.

GLP: A falling dagger?

As the Post Chinese New Year Sale continued in the stock markets, some stocks I have never been interested popped up on my radar screen. Capitaland is one such stock. Another one is GLP as some I know dipped into their funds and bought as its price plunged in the last session.

A friend sent me a SMS to say he bought some at $1.96 (the IPO price) in the morning and it closed at $1.93 for lunch. Then, it went on to touch $1.88 when another friend who was in the queue got his buy order filled. GLP closed at $1.93 in the end.

Is this stock going to rebound or would it decline further? After a huge sell-off, it is reasonable to expect a rebound. Short sellers would want to cover their short positions if the bulls are emboldened to push the price higher for some reason. However, the truth is no one knows what would happen next week.

TA is useful in that it lets us know where are the supports and resistance and we have to plan accordingly. TA simply gives us a glimpse into what could be and there are always two sides to a coin. Of course, sometimes, it is nifty enough to give us probabilities as well but they remain probabilities and never certainties.

What is the chart for GLP saying?

What is obvious is that GLP has been in a worsening downtrend since 1 Nov 2010.  Look at the three orange lines I have drawn and you would realise this. The latest trendline resistance is rather steep and approximates the declining 20dMA. $2.06 thereabouts. Selling at resistance in a downtrend is a sound strategy.

The immediate support is at $1.88. If this were to break in the next session, we won't know where is the next floor although employing Fibo lines could give us a clue. $1.82, anyone? The technicals are weak and so is my heart. I shall abstain.

GLP 3Q net profit likely at US$80m - JPMorgan
Friday, 11 February 2011

© 2011 - The Edge Singapore

STI down 1.2%; Kim Eng Securities suggests switching to yield plays. “We are stringent in our selection, picking only stocks with stable businesses and the ability to sustain a good dividend payout,” the house says.  
Friday, 11 February 2011

© 2011 - The Edge Singapore

Related post:
What's my take on MIT and GLP?

Healthway Medical: A punt at 14c?

Regular readers would know what I think of Healthway Medical's current fundamentals. I am still waiting for their latest results. It should be made available sometime this month. Well, fundamentals aside, could the counter be ripe for another trade?

A dragonfly doji was formed in the last session as price touched a low of 14.5c which is a many times tested support in November last year. It should be a rather strong support but could it break? Why not? However, notice how volume has been declining over time. There is less activity here as time goes by. Most of the sellers have probably sold and we have some stoic long holders now. Look at the OBV and we realise that it is mostly flat. The MFI seems to be forming higher lows which suggests some underlying support.

Looking for clues regarding the longer term trend, I brought up the weekly chart and we see the 100wMA rising and approximating 14c. It is also interesting to see the weekly MFI actually forming a higher high which suggests strengthening demand even as price weakened. The Bollinger bands are narrowing. Could price swing higher or go lower? A punt at 14c? Perhaps.

Related post:
Healthway Medical: To buy or not to buy?