2Y Capital Fund

Chart - BanyanTree

2010-11-11T22:50:00.001+08:00

This is a very ‘nice’ evening doji star formation (for candlesticks) on Banyan Tree, which will likely see short term weakness and correction back to the 105 region. Happy trading.

Chart - StarHub

2010-11-03T23:54:00.001+08:00

This is another counter in my SRS account which I bought some time back when it was 2.08 for my retirement account. Sometimes I wonder why I can’t be as patient when I have a bigger position vis-à-vis a smaller one. The counter looks bullish as it breaks new high and I am also not complaining about the generous dividend which it gives out every quarterly.

Dividend – This is one key criteria I have for long term investing for my SRS account.

Chart - Biosensors

2010-10-07T23:08:00.001+08:00

Biosensors is a beneficiary of DBS buy call recently but beware of chasing the highs as the fall can be painful as well. The counter looks likely to face correction pressures down to the 90c levels again in the coming weeks.

Chart - Yangzijiang

2010-09-28T22:38:00.000+08:00

YZJ is showing signs that it has run out of steam and is facing short term correction pressures. A possible swing ‘short’ trade with a target around 160-165 and a cut loss above recent high.

Chart - Straits Times Index (STI)

2010-09-27T00:06:00.001+08:00

Let’s take stock of how the STI is performing. STI is showing signs of corrections and it will be confirmed by the parabolic being triggered together with the bearish crossover of the MACD. Watch out for those 2 technical signals, which I use regularly for swing trades.

Chart - Hiap Seng

2010-09-23T20:54:00.001+08:00

It is extremely amazing how powerful DBS research is these days. It started with its buy call on Biosensors, followed by JES, followed by Hi-P and today it is Hiap Seng. All the stocks it covered “gap up” upon coverage. Are the good old days are back?!?! Anyway, Hiap Seng showed a long red candle today where it gap up on opening and then closed at its low. This is a bearish candle where short sellers can short with a buy stop slightly above today’s high. Do be careful if you are those who ‘buy at whatever opening price’ cos the good times won’t last forever.

Chart - SATS

2010-09-22T22:58:00.000+08:00

A possible swing trade back above $2.90-$3.00. With SIA doing so well, SATS shouldn’t be too far off as well. Happy trading.

Chart - FTSE ST China Index

2010-09-21T00:09:00.001+08:00

This is the long term (5 years) weekly chart of the FTSE ST China Index. SGX is introducing the trading of ADRs next month where top China companies listed in the US will be allowed to trade on the SGX during the trading hours and you can then square off that same position in the US market. This is likely to boost interest from traders and investors who can trade in the more decent Asian hours and may also rekindle the “S-chip” sector. If you just look at the 52 weeks chart, you can see that the index is actually at one of its highest level but if you zoom out to a longer period, you can see that it is still a long way from its bubbly peak of 1,000 set a few years ago. Happy trading.

Chart - STI ETF

2010-09-19T20:08:00.001+08:00

If you are someone who don’t believe in buying unit trust with expensive management fees (which rightly so), index investing is a much cheaper option and its performance is much better than most unit trust fund managers after including management fees. STI ETF is one of the method of “index investing” and is gaining popularity as a great diversification tool and yet participating in the market movement at the same time. Happy investing.

Chart - SPH

2010-09-16T22:41:00.001+08:00

$4.20 for SPH proved to be a formidable resistance as it tested that price a few times. A break above that price will be extremely bullish as you can see a “cup-and-handle” formation. However, fundamentally, there doesn’t seemed to be any catalyst for it to do like unless it announce some “special dividends” due to its cash generated from property development? The share price looks weak in the near term and likely to weaken in the coming days. Let’s see if can break the resistance in the next upswing.

Chart - TigerAir

2010-09-15T23:39:00.001+08:00

Despite all the recent news report that Tiger is facing a shortage of pilots and a series of downgrades from research analysts, the share price of the company actually appeared to be resilient. The share price of Tiger Airways look set to ‘roar again’. A potential swing trade back to its recent high of $2.20.

Chart - Straits Times Index (STI)

2010-09-13T23:11:00.001+08:00

Further to my post on 27 Aug 2010, STI managed to break its all time high today at closed at 3,066.

Let’s see how far higher it can move on from here. Cheers.

Chart - JES

2010-09-12T23:00:00.001+08:00

JES is showing signs of “breaking out” towards 24-26 level after a long period of consolidation. It is in ‘tandem’ with other shipbuilders like Yangzijiang and Cosco which have been performing quite well lately. I guess investors are still not convinced if the company has managed to turnaround after a loss in 2009.

Chart - Genting SP

2010-09-11T23:15:00.000+08:00

Further to my earlier posting on 16 Aug 2010, Genting hit the technical target mentioned on 1 Sep 2010. It is now showing signs of weakness with bearish divergences and dojis appearing. While it is not showing any reversals of trends, it is possible that the stock might take a short breather in the near term before resuming its uptrend.

Chart - Consciencefood

2010-09-09T08:54:00.001+08:00

The company IPO recently at 22c and rose to a high of 30c before coming down back below its IPO price. A possible swing trade at 22c yesterday with cut loss below 20c and a swing target of 24-26c.

Chart - Hyflux

2010-09-07T23:01:00.001+08:00

Back from my overseas trip and a quick update for Hyflux.

A possible swing trade back to the $3.20-$3.40 area with a cut loss below the $3 mark.

Valuation wise, it is trading at EV/EBITDA of 17.6x and PE of 21.3x for FY2010F and EV/EBITDA 13.1x and PE of 18.7x for FY 2011F at today’s closing price. Not exactly cheap.

Chart - CoscoCorp

2010-08-31T22:47:00.001+08:00

Cosco looks like a possible swing trade target with a target of $1.70 to $1.80 and a cut loss below the recent low.

Valuation wise, the company is trading at a consensus PER of 21x for FY2010 and 17x for FY2011. Not exactly a cheap stock unless it can continue to win contracts.

This blog will take a break for a few days as I will be travelling for work.

Chart - FTSE ST Real Estate Holding and Development Index

2010-08-31T00:06:00.001+08:00

The government announced a new slew of measures with immediate effect to curb property speculation and to cool the red-hot property market for the 3^rd time in 12 months to prevent a property bubble from happening. Some of the changes include:

· Private property owners to sell their homes within 6 months of buying an HDB flat;

· Buyers of second property have to fork out at least 10% cash (instead of the previous 5%) and can only loan up to 70% of the value of the 2^nd property (instead of 80%)

· Seller stamp duties will apply for a period of 3 years instead of 1 year.

The government does not rule out further action to “cool” the market but is “very reluctant” to impose capital gains tax. I guess they still remember clearly how the previous capital gains tax crashed the Singapore property market. The property stocks were understandably affected after the news were announced and this is reflected by the charts as well. Let see if the measures are ‘effective’ in curbing property prices from rising further.

The property market is actually one of the places you should look at if you want to achieve financial freedom. I am not advocating that you buy blindly or buy now but it is an asset class that can help you to retire earlier. But remember there are a few things you might need to do take note of:

(1) buy close to the bottom of the cycle and ride up the cycle;

(2) you need at least 2 properties to ride the cycle. No point cashing out at the peak of the cycle and then buying into it again;

(3) property allows you to “leverage” at a one of the lowest interest rate.

(4) Location is important.

Happy investing.

Chart - Kep Corp

2010-08-27T22:29:00.000+08:00

A potential swing trade back to $9 (first target) followed by $9.40 (second target) with a cut loss below the recent low.

Chart - Straits Times Index (STI)

2010-08-27T22:20:00.000+08:00

Lets do a quick update on STI, which is surprisingly resilient. The STI looks like it is ready to do a short term rebound in the coming days and if it can break above the recent high, It will negate the bearish views I previously had.

Chart - SPH

2010-08-27T03:51:00.001+08:00

Singapore Press Holdings is one of my “dividend paying” stock held in my SRS account for a period already. The financial year end for this company is 31 Aug and FY2010 is coming to a close. The company has been paying out more than 90% of net income as dividend for the last few years and I believe this year will be no exception. The yield is not exciting at approximately 4% at current prices but our bank deposit rates is even more “unexciting”.

The print business is still rather stable but don’t expect “significant” growth from it and it still enjoys monopolistic position in Singapore but is threatened by the new media such as internet “Channel News Asia” and free papers such as “Today”.

Unless there is major change to the landscape here, I guess it will continue to be the dominant news provider in Singapore earning stable income from advertisements….zzz…

Technically, the share price looked quite well supported. Perhaps this counter has always been regarded as a “defensive” stock.

What would be definition of “defensive”??? Does defensive means good dividend yield but no growth and boring business?....hmmm..

Chart - KepLand

2010-08-25T22:15:00.001+08:00

A potential swing trade back to $4.20 with a cut loss around $3.80. All the indicators seemed to be pointing to a short term rebound.

Fundamentally, the company is trading at FY2010 PE of 17.7x and a price-to-book ratio of 1.5x. I wouldn't call it a cheap stock.

Chart - Straits Times Index (STI)

2010-08-24T22:15:00.001+08:00

My view on STI remained the same, I think the correction is not over yet and is heading towards the 2800-2850 levels in the coming weeks.

Let’s see how it goes in the coming days.

Happy trading.

Chart - Beng Kuang

2010-08-23T22:54:00.001+08:00

Beng Kuang closed with a doji and on high volume.

Doji is formed when the opening price is the same (or close to) the closing price. Alone, doji are neutral patterns. Any bullish or bearish bias is based on preceding price action and future confirmation. Thus we will need the price action on Tuesday to determine if the upward price pattern is ready to reverse downwards. The extremely high volume traded but with no significant price movement is also a warning sign and signals that ‘distribution’ has taken place. Traders who are long on this stock will start to tighten their moving stops.

With the resistance at around 30c and oversold indicators, my personal view is that the uptrend is going to end soon and correction back to 24c is on the cards in the near term. Happy trading.

Valuation wise, at current price, the historical PER is around 13.1x, which in my view, is at fair valuation.

Chart - China Fish

2010-08-22T23:09:00.001+08:00

China Fish – A potential swing trade with a target price around $1.9-$2 and cut loss at $1.75.