Chart[6] - Singtel

SingTel has completed its first wave of rebound from 3.4 to 3.8. It retreated to 3.64 then bounced to 3.7. It showed that support @ 3.64 is firm. Price could be either range bouncing, or forming higher high.

 

Adding indicator, EMA10(Close), EMA10(Open) and EMA50, price rebounded from EMA50. Trader could take position for potential upward movement. Trend might look down shall price break down from middle line of Bollinger Band ~ 3.64.

Feb[6] - Market Update

Singapore:

STI fell on Wednesday and Thursday. A strong rebound was seen on last trading day. From the chart, EMA10 and EMA20 are converging. Further upside could be in place.

Market Calendar on coming week:

(SG: Singapore; CH: China; US: USA)

Next week shall be another exciting week as PMI used to be released on first week 

of the month.

Feb[5] - Venture (steady result attracting strong interest)

COUNTER: Venture Corporation Limited

OVERVIEW:
Venture is a global provider of Electronics Manufacturing Services (EMS) for a wide range of high-mix, high-value and complex electronics products, such as photonics system, electron mechanical printing devices, Post of Sales (POS) machines, handheld devices, etc. Headquartered in Singapore, Venture comprises about 40 companies with global clusters in Asia, US and Europe. It is strategic partner of choice over 100 global companies including Fortune 500 corporations, such as HP, Honeywell, etc.

HIGHLIGHTS:
[1] The group saw its 4Q15 revenue and net profit up 3% and 14% to S$694m and $48m year on year. Full year 2015 saw net profit up 10% year on year on year. By end of 2015, it registered net cash position at $324m.

[2] Contribution from printing & imaging segment shrank, but other segments have been growing steadily. Test & Measurement/Medical & Life Science is the bright spot which registered 15% growth.

[3] It has announced dividend at 0.5 per share with EX on 5 May. It translates to dividend at 6% as of last closing price.

PRICE TREND:
Price has broken resistance ~8.1 decisively on last trading day following the announcement of its FY2015 results. Volume is significant, and EMA10 & EMA are both pointing upwards. Strong resistance is ~8.6.

INVESTMENT THEMES:
[1] About 60% of Venture's shipments are to US. Considering USD being strengthened along with rising interest rate, the currency movement will be benefit to the counter. Less than 15% of shipment is derived from Singapore. Thus, it is less vulnerable the falling export index in domestic context.

[2] Almost 60% of staff cost are incurred in Malaysia. Weakening MYR vs US and SGD translates to heavy reduction in cost for the counter.

[3] Investor can accumulate into the cash generating counter for its strong cash position and steady business execution.

[4] Trader could position for the potential uptrend in forming as the potential loss is well covered by dividend ~0.5. Shall history on price movement on Feb 2015 repeats, 8.6 shall be the exit target.

*** Note: Same counter has been mentioned in Feb[5] @ 2016 ***

Feb[4] - Market Update

Crude Oil:

On last Tuesday, oil ministers from Saudi Arabia, Russia, Venezuelar and Qatar announced agreement to freeze oil output as January production. Crude oil experienced short rally until latest US inventory points to new record high with additional over 2147 million barrels over past week. As long as OPEC countries don't reduce production, existing oil glut would continue to pose downward pressure on crude oil price which is still one major forces pulling global stocks.

Singapore:

STI rose 3% over past week which was also the best week since 2016. Good sign is that 5 years support ~2530 still hold firm. Strong resistance is at 2791. Global market has been rebounding amid retreat of gold price.

Market Calendar on coming week:

(SG: Singapore; CH: China; US: USA)

Feb[3] - SoildbuildBizREIT (Stable cash cow)

COUNTER: Soildbuild Business Space REIT

OVERVIEW:
This is a Singapore-focused REIT with a portfolio of business parks and industrial properties used by industries engaging in diversified trade sectors. Major properties consists of Solaris, Eightrium, Tuas Connection and West Park BizCentral. Top 10 tenants includes Dyson Operations, Nestle Singapore, SPRING Singapore, NK Ingredients.

HIGHLIGHTS:
[1] Latest financial results saw its FY2015 revenue up 16% year on year with Net Property Income up 18%. Distribution per Unit (dividend to shareholders) increased by 5% year on year.

[2] It doesn't have any repayable borrowing within one year. Among its long term borrowing, 98% are fixed rate. No refinancing requirement until FY2018. Less than 17% of leases will expire by 2017. 37% on 2018. Thus business and financial condition is stable on next two years.

[3] Singapore economy grew by 2.1% for FY2015. It slowed down from peak at 7% since 2012. With the macroeconomic headwinds, industry property market faces downward pressure on rental and occupancy. The counter has been falling 20% from its peak at 0.86/share since May 2015.

INVESTMENT THEMES:
[1] Against recent sell down, the counter has been interestingly delivering steady set of earning from its domestic only portfolio throughout 2015. Current price translates to ~9% of dividend yield which is pretty attractive. A poor outlook could have been factored in the price. It can be taken as one strong cash cow into one's portfolio.

[2] Without refinancing requirement and most of the loan converted to fixed rate, the counter would be less vulnerable to rate hike scenario.

[3] It has Right of First Refusal on 4 properties: Bukit Batok Connection, Waterfront, Water View and iPark. Acquisition on these properties could boost future income contribution.

PRICE TREND:
The counter has been forming support ~0.7

Feb[2] - Market Update

Crude Oil:

Last week, US crude oil inventory saw its first decline in five weeks which caught market in surprise. OPEC countries and Russia have been sending message to market about potential coordination in crude oil production. Price has been swinging in wide range over last week. Strong rebound was seen on last trading day. Oil price could be getting much volatile in coming week due to mixed message from OPEC.

US:

In two days of testimony with Congress, Yellen acknowledged that a weakened global economy and a steep slide in stock markets was tightening financial conditions faster than the Fed wants. Market generally expects less than four rate hikes in 2016. Following release of a solid retail sales gain, market experienced strong U turn from DOW Jones by end of week.

Singapore: STI has been lingering around its 5 years support ~ 2530. China market will be resumed next week. It would be interesting to see how Shanghai Composite (SHCOMP) perform in first trading week of Monkey year. STI has been closely following SHCOMP in second part of 2015.

Market Calendar on coming week:

(SG: Singapore; CH: China; US: USA)

Feb[1] - Value Hunting

Note: The counters were shortlisted because of their attractive P/B. All of them are trading under its current net asset value, which represents a discounted price.

Note: Both counters are in low debt yet strong cash flow position.