Singapore Stock Market Comments  - The Search Is On For The Next "Meiban"

CIMB issued report today saying that it is maintaining "Outperform" call on Meiban and also upgrading target price for the stock. CIMB analyst says that this Singapore tech stock is "fast approaching an earnings recovery after two years of shrinking profitability."
The analyst report caused the stock price to shoot up almost 10% in one day, touching a high of 50 cents in the morning trading session. The last time Meiban traded at 50 cents in the Singapore stock market was almost one and a half years ago in December 2005.

As I pull out the stock charts for some of the once forgotten tech stocks for the Singapore stock market eg. Fuyu, Sunningdale or Cheung Woh, the stock charts actually start to look interesting since many of their stock prices are hitting multi-week or multi-month high. Technical indicators using Metastock program are also showing positive signs for some of them.

For example, Fuyu monthly parabolic SAR signal has just turned positive after being negative since December 2004. That is an amazing negative for 30 months!!

When parabolic SAR turns positive, it is a signal that the previous trend “may” change ie. the downtrend or uptrend “may” end. I say “may” because one still needs to analyze other technical indicators such as MACD, RSI, Stochastics and stock price Moving Averages before deciding.

The correction for small-mip cap tech stocks in the Singapore Stock Exchange has been a long one, some started way back during the second half of 2003……so its been a THREE YEAR downhill ride for the shareholders.

1.Fuyu stock price peaked September 2004 $1.00 2.Meiban stock price peaked April 2005 $0.85 3.Cheung Woh stock price peaked October 2003 $0.625 4.Huan Hsin stock price peaked September 2003 $1.34 5.FischerTech stock price peaked January 2005 $0.845 6.Hipi stock price peaked September 2004 $1.98 7.Sunningdale stock price peaked October 2003 $1.32 Just like property or shipping or any other businesses, there is always a business cycle involved. If you look at property or construction related stocks in the Singapore Stock Exchange, some of their stock prices were actually trading at the pits in 2003 while tech stocks in Singapore stock market bask in glory!! For example, Orchard Parade hit a low of $0.255 in April 2003 and today stock price is S$1.81!! That’s up more than seven times in three years!!

So if you assume that tech stock business cycle could be on an upturn again after going downhill for three years, then you better start doing some homework. CIMB analyst has discovered one “recovery” gem, Meiban for their clients. Meiban stock price has actually gone up from $0.29 to $0.50 today, up 72% within two months!

Hope that you can find the next “Meiban” and ride the recovery in “some” of the tech stocks in the Singapore stock market. But before you rush off to call your brokers and start placing orders on any potential recovery tech ideas for the Singapore stock market, please do your own homework, be it fundamental or technical analysis. Because not all of them will report recovery in earnings momentum at the same time, just like when their earnings or stock price peaked at different time periods.

Article by Stephen Yong

Singapore Stock Market Comments - rotational play continues

Despite recent warnings by some foreign brokers of potential sharp market correction, selective Singapore stocks continue to scale new heights, some in fact all time high, as traders, investors, punters and my aunties stay vested in the market. It is quite clear that almost all sectors have different stocks that you can find trading opportunities, penny stocks, property stocks, tech stocks, hotel stocks, oil and gas stocks, ….and even stock price for the Singapore Stock Exchange (SGX) all reach all time high exceeding S$10.00 mark. The latest IPO from China today in the Singapore Stock Exchange, called China XLX, with IPO price of $0.77 hits intraday high of S$1.27 before lunch, up a whopping 65% in the first day. This may put some spot light back to some of the China stocks which have gone into hibernation mode after the strong rally which started early 2006. Stock prices for many long forgotten small-mid cap tech stocks listed in SGX are also slowing crawling back. Meiban, Fuyu, Sunningdale, Longcheer……..stock prices of these stocks are hitting multi-week or multi-month highs again. Based on chart, these stocks look attractive for trading. But as we approach the next results season, we just have to be careful about those that are "really" recovering in terms of earnings and those that are still yet to do so.

Article by Stephen Yong

Investors and traders have been "expecting" some form of correction since STI

If recent history is to repeat itself, we should exercise more caution as the financial results reporting season gets underway for Singapore listed companies.