Last day of 2009, a pretty much volatile year for stocks worldwide. Singapore, which suffered or should I say, experienced relatively less volatility than other countries around the world, is gearing up for a more predictable 2010. Personally I would stay out of the US market, though news about recovery constantly return, there is still talk hovering around that fundamentals are not strong enough yet.
The STI seems all set to hit 2900 in the first week of 2010. It seems to be the trend nowadays that no bad news is good news, and if it continues that way, 2010 would offer some steady growth for stocks that have some decent fundamentals and upcoming projects, yet dragged down by negative sentiment this while.
The 3 Singapore banks will continue its uptrend in price, at least in the first month or so and other stocks that are worth having a second look at include Ho Bee, Hyflux, Keppel land and Sembcorp Marine.
Thursday, December 31, 2009
Tuesday, December 29, 2009
The Case for Genting Singapore
One of the major contributors to STI movement this couple of days had been due to a highly traded Genting Singapore. The stock closed at $1.17 last Friday and ran up to $1.24 at the start of this week, and prices show no sign of abating.
The Business Times today talked about Genting and once again, a not too surprising 'Buy' call was issued with target price of $1.30. If I recall, this had been the target price for a couple of broker houses for the past month or so.
This is hardly unexpected, given all the hype surrounding the opening of Genting's RWS during first quarter of next year, probably just in time for the influx of CNY punters. The delay in the opening of Marina Bay Sands by LVS supposedly caused by bad weather and bankruptcy of some of its construction firms probably also contributed to the optimistic outlook for Genting.
Too much hype I must say. Prices are likely to hit $1.30 into the first week of January, but any growth will be muted as short term investors would probably start to cash out. Prices would probably continue moving upward, but much slower than what's happening now. Hence I would probably hold back my horses rather than going in at $1.24.
Oceanus, on the other hand, would be a potential counter coming into 2010. Would look more into this tomorrow.
The Business Times today talked about Genting and once again, a not too surprising 'Buy' call was issued with target price of $1.30. If I recall, this had been the target price for a couple of broker houses for the past month or so.
This is hardly unexpected, given all the hype surrounding the opening of Genting's RWS during first quarter of next year, probably just in time for the influx of CNY punters. The delay in the opening of Marina Bay Sands by LVS supposedly caused by bad weather and bankruptcy of some of its construction firms probably also contributed to the optimistic outlook for Genting.
Too much hype I must say. Prices are likely to hit $1.30 into the first week of January, but any growth will be muted as short term investors would probably start to cash out. Prices would probably continue moving upward, but much slower than what's happening now. Hence I would probably hold back my horses rather than going in at $1.24.
Oceanus, on the other hand, would be a potential counter coming into 2010. Would look more into this tomorrow.
Wednesday, December 23, 2009
2900?
Managed to sell off some counters that I deemed moving sideways over the past couple of days. The market is certainly picking up this week, with movements from the 3 banks and Jardine group of companies.
Keppel Corp and Keppel Land seem to be rather bullish recently, and I expect the trend to sustain through till next week. Keppel's Brazil subsidiary had recently acquired a $800m contract from Noble, and their contract book seems optimistic enough to convince me to hold their stock at least into first quarter 2010.
Hyflux has called on a trading halt on news about the collaboration with JGC corp Japan for developing water projects in the PRC. Agreement is through and prices have gone up to a new level apparently, hitting $3.70 on the 14th. This is one counter that am seriously contemplating putting more funds into.
STI looks optimistic, possibly could hit 2900 coming into the new year.
Keppel Corp and Keppel Land seem to be rather bullish recently, and I expect the trend to sustain through till next week. Keppel's Brazil subsidiary had recently acquired a $800m contract from Noble, and their contract book seems optimistic enough to convince me to hold their stock at least into first quarter 2010.
Hyflux has called on a trading halt on news about the collaboration with JGC corp Japan for developing water projects in the PRC. Agreement is through and prices have gone up to a new level apparently, hitting $3.70 on the 14th. This is one counter that am seriously contemplating putting more funds into.
STI looks optimistic, possibly could hit 2900 coming into the new year.
Friday, December 18, 2009
Back in business
The exams are finally over and after a short hiatus, I figure it's probably best to put myself actively in the investing scene again. The overall feeling of uncertainty in the NYSE and NASDAQ has kept me out of the US market at the moment, as fundamentals are STILL not strong for a steady recovery.
Interest rates in the US have been kept low since a year ago to ease financial borrowing on the back of the US financial system collapse. However, interest rates NOW are still near zero, and borrowing is made easier than before, not a good thing since the meltdown was due to living on credit. Economics teaches us that low rates of interest facilitates borrowing and investment, and short term growth. But is this method a sustainable long term solution for recovery?
Time to streamline the SG portfolio. Forsee a busy term next semester, probably have to pick a few stocks to concentrate on. Present attention is given to Hyflux and SembMarine.
Interest rates in the US have been kept low since a year ago to ease financial borrowing on the back of the US financial system collapse. However, interest rates NOW are still near zero, and borrowing is made easier than before, not a good thing since the meltdown was due to living on credit. Economics teaches us that low rates of interest facilitates borrowing and investment, and short term growth. But is this method a sustainable long term solution for recovery?
Time to streamline the SG portfolio. Forsee a busy term next semester, probably have to pick a few stocks to concentrate on. Present attention is given to Hyflux and SembMarine.
Friday, November 6, 2009
finally some time to reflect..
Haven't blogged in ages as I've been kept busy with school work. The STI as of now is 2661 points, and it has been hovering between 2600 and 2700 for the past few weeks. Reason being the uncertainty hovering around global markets, especially the financial market of US.
The fluctuations might be a good thing though, as one can buy into the dips and sell as the prices go upwards. It is of course difficult to tell when, but the road to recovery, no doubt slow, will be an unpredictable one with several dips along the way.
Several counters to look into this period are the REITs..At this point of speaking, Ascendas REIT seems like a good counter to look into given the trend.
The market might continue to fall further next week if the trends of the STI ETF prevail. Might hit the early 2600s again for the upcoming week.
The fluctuations might be a good thing though, as one can buy into the dips and sell as the prices go upwards. It is of course difficult to tell when, but the road to recovery, no doubt slow, will be an unpredictable one with several dips along the way.
Several counters to look into this period are the REITs..At this point of speaking, Ascendas REIT seems like a good counter to look into given the trend.
The market might continue to fall further next week if the trends of the STI ETF prevail. Might hit the early 2600s again for the upcoming week.
Monday, September 21, 2009
an opportunity?
When the government announced its new property policies to curb speculation of new housing units, half a dozen stock prices for property based stocks such as Allgreen, City Developments and Keppel Land fell overnight.
Took the chance that morning to purchase some lots of Keppel Land and Ho Bee, as the fundamentals of these companies should not be affected by the breaking news. I believe that you can never go too wrong with property in Singapore. Buying a property is more of location than timing, and the companies whose prices had fell this time round weren't only in residential investments.
Upcoming week would be interesting to see if the prices start to show any movement upwards or if investors are still half hearted over the prospect of the property market in Singapore. A perfect example to show how stock prices are so closely related to sentiment.
News. Panic. Sell.
Took the chance that morning to purchase some lots of Keppel Land and Ho Bee, as the fundamentals of these companies should not be affected by the breaking news. I believe that you can never go too wrong with property in Singapore. Buying a property is more of location than timing, and the companies whose prices had fell this time round weren't only in residential investments.
Upcoming week would be interesting to see if the prices start to show any movement upwards or if investors are still half hearted over the prospect of the property market in Singapore. A perfect example to show how stock prices are so closely related to sentiment.
News. Panic. Sell.
Monday, September 14, 2009
Genting Sg more hype than substance?
Read in the Business Times today about Genting Singapore. Being compared to the tech bubble that started to grow at the start of the internet age, certain analysts have issued 'Buy' signals on Genting, betting on the potential of earnings when the IR begins its operations.
However, fundamentals have been ignored for this loss making company. The optimistic glow shining upon Genting SP has sent the share prices up on a spectacular rise for the past 2 weeks, from about a dollar to $1.21. Prices have fell back to less hyped levels at about $1.06 today.
I would expect the price to drop further, perhaps back to $1. Other stocks have shown great volatility as well. Allgreen properties hit a high of $1.30 in the past week but fell back to my buying price of $1.16.
Would look at the possibility of purchasing some counters tomorrow to make up for those I had sold at the start of September. Hopefully, there would be some dips I can buy in.
However, fundamentals have been ignored for this loss making company. The optimistic glow shining upon Genting SP has sent the share prices up on a spectacular rise for the past 2 weeks, from about a dollar to $1.21. Prices have fell back to less hyped levels at about $1.06 today.
I would expect the price to drop further, perhaps back to $1. Other stocks have shown great volatility as well. Allgreen properties hit a high of $1.30 in the past week but fell back to my buying price of $1.16.
Would look at the possibility of purchasing some counters tomorrow to make up for those I had sold at the start of September. Hopefully, there would be some dips I can buy in.
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