COUNTERS TO WATCH NEXT WEEK: China Sunsine, Civmec, M1

(A) CHINA SUNSINE

       From the chart, indicator RSI cut up from middle line, which shows buyer in stronger position meantime. The price just broke up from middle line of Bollinger Band as well. Similar chart pattern can be referred to previous three times as pointed by red arrow in the chart. Shall history repeat, an upward move could be forming. Suggestion is BUY ~0.385 which form well support over past one year. Target to EXIT ~0.41. The company proposed final dividend at 0.015/shares which is supposed to be confirmed by shareholder meeting on April. Besides, current price represent low P/B ~ 0.8. Rebounding could be in place for the counter.

(B) CIVMEC

      Even though the counter has shrunk ~ 40% in stock price since beginning of March, the downfall trend paused with significantly high transaction volume over last week. It is suggesting that buyers have entered. Since the price has cut into Bollinger Band as pointed by blue circle, it could move towards centreline ~ 0.51 which is target EXIT price. Buying signal is not as obvious bas China Sunsine, because RSI is still under oversold region. However, higher profit used to be reward for early mover. Ideal entry is 0.45 so 12% gain is targeted.

(C) M1

      Similar to China Sunsine, the counter is showing rebound from recent downfall, especially with the glance on the long white bar on last trading day. Suggestion is to BUY ~ 3.88. Target to EXIT ~ 3.9. The counter is under CD period with dividend at 0.119/shares. Looking into its peers, it is not doubt that telecommunication sectors has been the favorite of public lately. History performance can be referred to red arrow in the chart.

COUNTERS TO WATCH NEXT WEEK: China Sunsine, Civmec, M1

(A) CHINA SUNSINE

       From the chart, indicator RSI cut up from middle line, which shows buyer in stronger position meantime. The price just broke up from middle line of Bollinger Band as well. Similar chart pattern can be referred to previous three times as pointed by red arrow in the chart. Shall history repeat, an upward move could be forming. Suggestion is BUY ~0.385 which form well support over past one year. Target to EXIT ~0.41. The company proposed final dividend at 0.015/shares which is supposed to be confirmed by shareholder meeting on April. Besides, current price represent low P/B ~ 0.8. Rebounding could be in place for the counter.

(B) CIVMEC

      Even though the counter has shrunk ~ 40% in stock price since beginning of March, the downfall trend paused with significantly high transaction volume over last week. It is suggesting that buyers have entered. Since the price has cut into Bollinger Band as pointed by blue circle, it could move towards centreline ~ 0.51 which is target EXIT price. Buying signal is not as obvious bas China Sunsine, because RSI is still under oversold region. However, higher profit used to be reward for early mover. Ideal entry is 0.45 so 12% gain is targeted.

(C) M1

      Similar to China Sunsine, the counter is showing rebound from recent downfall, especially with the glance on the long white bar on last trading day. Suggestion is to BUY ~ 3.88. Target to EXIT ~ 3.9. The counter is under CD period with dividend at 0.119/shares. Looking into its peers, it is not doubt that telecommunication sectors has been the favorite of public lately. History performance can be referred to red arrow in the chart.

Mar[6] - Global Logistic Propoerties

COUNTER: Global Logistic Properties
 
BUSINESS: 
The modern logistics facilities provider is mainly owned by GIC (Government of Singapore Investment Co). It builds logistic warehouse in regions, such as China, Brazil, Japan and US.

OVERVIEW:
More than 60% of its business is contributed by China market which has been showing promising growth in revenue in the past. On early this month, it achieved new leases agreement several key players in pharmaceutical sectors from both China and Brazil. For the new warehouse portfolio in US market where it co-ventured with GIC last year, the leases hit about 91% by Jan 2015. Strong contribution from US shall be seen on near future. Its next bigger shareholder, Blackrock has been increasing its stake on the company as well lately.

REASON TO BUY:
The counter looks good buy from fundamental perspective. It has its business footprint over key developed regions yet offering Price to Book value ({P/B) ~1 at current price. Its strong cash and low debt position shall be strong enough to weather through interest rate hike which is widely expected in the near future.

From the chart, the counter price has been bouncing within 2.42 and 2.64. It has been trying to break 2.64 again lately.

ENTRY PRICE
Over the time span of two years, this price movement is within its lower range. Good Entry <2.6. 

Summary for past postings

Among previous discussions, BUY call is still valid to the following counters:

(A) Fraser Commercial TRUST: Reason as stated on last post.

(B) Parkway Life REIT: Healthcare related REIT worth for long term holding. The counter is hanging around the trough of past one year. It is worth to accumulate with current price.

(C) Sembcorp Industry: EMA10 is cutting up from EMA20 at the moment. This could be beginning of an uptrend. It is worth to enter <4.3

(D) SMRT: The counter has been plunging since last Monday but bounced back on last Friday. Considering its rising EMA200 could be strong support price, it is worth to accumulate ~1.6.

Summary for past postings

Among previous discussions, BUY call is still valid to the following counters:

(A) Fraser Commercial TRUST: Reason as stated on last post.

(B) Parkway Life REIT: Healthcare related REIT worth for long term holding. The counter is hanging around the trough of past one year. It is worth to accumulate with current price.

(C) Sembcorp Industry: EMA10 is cutting up from EMA20 at the moment. This could be beginning of an uptrend. It is worth to enter <4.3

(D) SMRT: The counter has been plunging since last Monday but bounced back on last Friday. Considering its rising EMA200 could be strong support price, it is worth to accumulate ~1.6.

Mar[5] - Fraser Commercial Trust

COUNTER: Fraser Commercial Trust

BUSINESS:
Its current portfolio consists of five quality office buildings located in Singapore and Australia. Local properties consist of Alexandra Technopark, 55 Market Street and China Square Central.

OVERVIEW:
Over latest financial quarter, the REIT counter posted increase on revenue and distribution per unit by 23.3% and 20% year on year. Over 2014, its dividend is released quarterly at average >0.022/shares, which translates to ~1.5% quarterly yield.

REASON TO BUY:
A buy call is issued for the counter mainly from technical analysis perspective. Since Jan 2014, the counter has been moving within a rising channel (highlighted in yellow) as refer to the chart below. By the end of last trading day, it has rebounded from support line at $1.44 and closed at $1.46. Indicators such as MACD and Stochastic are hinting an upward could be in place. Surging volume is another positive factor.

The technical perspective is supported by fundamental reason as well. On the last Wednesday meeting, US Federal Reserve persisted its dovish stance that interest hike might not be so soon until stronger economic growth is in sight. Local REITs counter could be target of yield seeker again. Even the rising trend is not realized, 1.5% dividend by next quarter can be good consolation price.

 
ENTRY PRICE & TARGET EARNING
Buy ~$1.46 then target to take profit >$1.51.

Mar[4] - SMRT

COUNTER: SMRT

BUSINESS: 
The company is well known for its transport services in Singapore. Its business mainly consists of railway, bus, taxi, rental, advertising and engineering services.

OVERVIEW:
Amid of several train services disruption in last few weeks, the counter has experienced downfall in its shares price. Market might be worried over heavy fines being imposed by LTA. However, few positive factors are still valid for the company in near future. On last Feb, it hit $1.8 which was actually the peak over last three years. Over last two quarters, it has delivered strong earning results which show healthy grow in both revenue and profit.

UPWARD CATALYSTS:
(1) 2.8% fare increase will be effective on 5 April 2015.
(2) benefit from current low energy cost
(3) rental income contribution from Kallang Wave Mall on fiscal year 2016
(4) core bus operation to turn profitable from new bus contracting model from government
(5) involvement in several overseas projects
 
DOWNWARDS CATALYSTS
(1) Fines imposed for service disruption

CHART ANALYSIS:

$1.65 is a support line formed over past year. Even though EMA10 and EMA20 are pointing down, EMA200 still in upward movement. It could be good entry price for current price correction period.


SUGGESTION:
Buy ~$1.66 for potential price gain  >$1.7 (short terms rebound) and >$1.8  (long term)

Mar[3] - Sembcorp Industry

COUNTER: Sembcorp Industry

BUSINESS: 
A conglomerate with two dominant businesses - offshore oil & gas heavy engineering via Sembcorp Marine and a global utilities business

OVERVIEW:
Due to oil price plummeting, the counter has been falling from the past price range (>$5). From the last quarter results, the group delivered higher marine operating marine at 16.1% in 4Q14 vs 11.1% in 4Q13. Excluding a net exceptional gain in 2013, the company would have posted a 7% year on year increase in utilities net profit. Looking ahead, the group has expanded its footprint into power generation projects in India which shall fully contribute to its earning by 2016.

REASON TO BUY:
The counter has declared dividend at $0.11/shares. It is worth to take position into the counter so as to enjoy with potential growrth

ENTRY PRICE:
Accumulate < $4.3

CHART ANALYSIS:
The price has been lingering near to center line of MACD. A breakthrough might see the counter moving towards $4.5 and above.

Mar[2] - Keppel REIT

COUNTER: Keppel REIT

BUSINESS:
One of the largest REIT counter in SGX with assets under management ~$8.2 billion. Its portfolio covers offices in main cities of Singapore and Australia.

OVERVIEW:
Looking ahead, Marina Bay Financial Centre which was completed in 4Q2014 shall contribute to earning on 2015. Besides, tenant based has been diversified into technology, media and telecommunication fields. These are positive catalysts towards the next quarter financial results.

REASON TO BUY:
The dividend counter issued ~$0.019/share per quarter last year. Based on current price, it can expect ~1.5% dividend for next quarter. From the chart, MACD is moving above center line but coming to correction soon. It might present a good opportunity to take position for subsequent rising trend.

ENTRY PRICE:
Accumulate < $1.23

TARGET:
To reap from potential price gain and dividend

Mar[1] - Parkway Life REIT

COUNTER:  Parkway Life REIT

BUSINESS:
Healthcare REIT which invests on properties used for healthcare purposes

OVERVIEW:
The asset portfolio covers regions in Singapore, Malaysia and Japan. Mount Elizabeth, Gleneagles Hospital are well down names to local. The counter posted healthy growth for its 4Q2014. Quarter revenue is +1.5% y-o-y and net property income stood at 1.3% increase. It consistently distribute dividend >1% on every quarter, and translate to >5% annual dividend yield. The net income has been stable over past four year with ~50% of debt ratio.

REASON TO BUY:
Due to rising awareness on personal health and growing of elderly population, healthcare industry has its strong fundamental prospect. Healthcare related operators don't randomly shift their location, so rental yield is stable. It can be good defensive as well as dividend counter in one's portfolio.

ENTRY PRICE:
Accumulate < $2.5.

TARGET:
To ride on the uptrend of healthcare industry while enjoying >5% dividend as annual yield.