Sinotel – Fundamental and Technical Analysis

Fundamentally

IPO price was 0.51 in November last year

Sinotel stock price hit a high or 0.755 post IPO but went down in tandem with broader market correction even though it reported strong earnings growth in FY07

FY07 EPS was 6.1cents

At 0.245, stock price is trading at 4x FY07 earnings

UOB initiated coverage on 28 Feb 08 with a target price of 0.43 based on 5.4x FY08 PE.

Strong order book so far : On 31^st January 2008, Sinotel announced that it has order book of RMB230m which is 65% of UOB revenue forecast for FY08.

Technical analysis – Has turned POSITIVE for the near term

Parabolic SAR

After being in negative zone since 28^th feb, Sinotel parabolic SAR signal just turned positive on 26^th march so short term trend is UP

Bollinger Band

The Bollinger band is contracting – this is a signal that the stock price may move faster in a particular direction soon

Aroon indicator

Moved into positive zone on 25^th march – short tern signal is POSITIVE

Directional index

Just cut up into positive zone on 26^th march to signal a POSITIVE change in direction

MACD

MACD trending indicator moved into positive zone on 25^th march – short term trend is POSITIVE

Stochastics

In POSITIVE zone

Moving averages

Medium term signal is still NEGATIVE since 13EMA is below 26EMA

Short term is POSITIVE as 5EMA cuts up 9EMA for the first time since 28^th feb

Summary

All short term signals for Sinotel have just turned positive

Cut loss point

I would consider cutting loss if it closed below 0.22

Mozart

p/s : The information provided is not an inducement to BUY or SELL. Please do your own homework or consult your broker before deciding.

Today price actions for many singapore listed stocks are turning bullish again with many hot stocks running hot after lunch. Fiber related stocks have been strong since the morning, i suspect partly due to the pullback of oil prices over the past few days and the positive sentiment spilled over to other china stocks or S chips after lunch.After updating my metastock, i can see that many stocks MACD indicators have cut up into positive zone….this is a very good short term positive indicator. At the same time, i also saw many stocks breaking out of near term resistance based on the DIFF indicator resistance. DIFF indicator is basically the high low formed during the most recent peak for MACD histogram.

These two positive signals are good enough to make short term traders excited again. I would like to see my “twin” RSI indicator signals turning positive as well for more stocks. But even without that, I am prepared to go long again.

There are so many stocks with short term signals turning positive today and i do not know where to begin haha its like catching butterflies……better stick to hot stocks ie those that have high beta but remember to set your cut loss points.

I have said before and will continue to say this : medium term to longer term singals have not turned positive but once in awhile we will continue to see positive short term signals which present “short term” trading opportunities. Just remember to cut loss when your cut loss points are triggered and re-enter again when the positive signals re-appear like today. Few days ago we saw a trading window which only lasted half a day, let’s hope this time can last longer than that

Happy trading.

Rooney

p/s : hooray man utd beat liverpool tiga kosong but the game was spoilt by the sending off……3 more precious points as they march towards another EPL trophy

I was not expecting a pro-long technical rebound for the singapore stocks today since i have been saying medium term technical signals are still negative.  However, the much short lived rebound, half day only, did surprise me a bit.  Never go against the market so better make a hasty retreat and live to fight another day.  Cut loss points triggered today eg synear need to stay above 0.45 as i said yesterday to sustain its short term upward momentum but it failed to do so.

Today is potentially another distribution day with many stocks closing at or near day low on huge volume…..these volume will be vomitted out when contra period is up in 3 to 4 days time…..not good man.

With this kind of market, it is better off for me to trade hang seng CW and PW on short term basis