******* Trading SELL: Dukang. Share price 0.44. (Broken support at 0.455, 0.45) - CFD SHORT SELL TRADES only

Dukang has just broken its immediate support at 0.45, 0.455 today. Has been trading above this levels since mid of May 2013. We have seen it dipped down once to this support level last month before rebounding upwards to above 0.55. More downside can be possible if it does not creep above this 0.45 new resistance level within the next few days. Potential downside to 0.40 then 0.36. You can see a slight Descending triangle formation breakdown of support where the highs formed are lower than the previous high and horizontal support at 0.45 broken. As long as 0.45 remains as the new resistance level, we are bearish.

Buy stop at 0.465 for CFD SELL trades.

 

 

******* Possible reversal back down: Semb Marine. Share price 4.51. (CFD SHORT (SELL) TRADE)

Sembcorp Marine has hovered above 4.45 level for slightly more than 2 weeks and neared the 4.60 resistance level again. Immediate resistance level is at 4.60 level and we can see a double top formation that stretch back to Feb 2013. As long as this 4.60 remains as a critical resistance, we are bearish we a downside back to 4.20 level if the 4.45 support breaks down. Coincidently, the 4.45 support also is where the 20 DAY MA line is currently. A break of the 20 MA line can also signal short term downside. Traders who would like to accumulate on dips can consider buying near support from 4.20 level if it does dip to that level.

 

******** Monitor for potential breakdown of support: First Resources. Share price 1.70. (CFD SELL TRADE)

First Resources is currently being supported strongly at 1.65 level, we have seen this level held in May 2013 and also for the past 1 month. A slight descending triangle formation pattern can be seen on a wider timeframe which shows that downtrend is still in placed currently. If the 1.65 support down not hold, it can head further down to test 1.50. Possible to put a CFD SELL Stop order at 1.635 to catch the breakdown of this critical support, with a take profit level from 1.50 to 1.55 level. Immediate resistance level stands at 1.74 which it has stayed below for about 2 weeks already. More upside only if it manages to cross and stay above the resistance. Note that it has also been trading below the 20 DAY MA (Green line) for more than a month and has failed to creep above it, signaling that short term downtrend could still be in place. Monitor and let’s see if the breakdown does happen eventually.

 

****** Upward Momentum still intact: Blumont. Share price 1.36

Following up from previous call made on 9^th July 2013. Blumont has continued to trade higher on strength and have seen buy ups on any slight dips. Possible to test the psychological level at 1.40 real soon. This counter has been inching up slowly after each consolidation and no sign of weakness in sight as yet. Can consider to accumulate more long positions to ride the uptrend until any reversal signal is in sight. Currently at an all time high after breaking above 1.33 last week immediate resistance formed. Might consolidate from 1.35 to 1.40 before breaking higher so can consider accumulating on any dips as long as support holds.

Stop loss at 1.295

 

****** Possible Downside: Thbev. Share price 0.535. (Head and Shoulder neckline Breakdown) - CFD SHORT TRADE

Following up from previous call made on 18^th July 2013. Thbev has indeed not held above the 0.58 support level and has traded down further to test support at 0.55 to 0.54 level. Currently it has broken immediate support at 0.54 and more downside can be possible to test Critical 0.500 if it does not creep back up above 0.55. CFD Sell trade can be considered to trade the downside with a target at 0.500 to 0.505. a break below 0.500 can see it go to 0.45 which was the resistance turned support level formed in Jan 2013. A head and shoulder pattern can bee seen with neckline support at 0.54 form in April 2013 and last week.

Buy Stop at 0.555 for CFD Sell trades

 

******** Short Term Speculative BUY: Contel Corp. Share price 0.078.

Contel has been trading below the 0.076 immediate resistance for slightly more than a month, has seen quite a convincing breakout today on TOP VOLUME currently. We can see that at this level it has also broken above the Symmetrical Triangle formation which can signal a change in trend to upwards in the near term. Target to 0.09 first then 0.100. A short term speculative play with strict stop loss. A break above 0.08 can strengthen the BUY call if it manages to stay above for a few days.

Stop loss at 0.074

 

******* Upward momemtum still intact: OKH Global. Share price 0.525.

Following up from previous call made on Monday 22 July 2013. OKH Global has indeed broke the 0.500 level and consolidated briefly from 0.485 to 0.53 before surging higher to a new high today. At the current 0.53 level, it is at an all time high but upside still no signs of abating. From when we made our first call on 27^th June 2013 when it was at 0.39, it has been consolidating after each breakout only to break above a resistance and heading higher. Consistently above the 20 DAY MA (Green line) each passing day too. Good to accumulate on dips at near support to ride any rebound and more upside. Support now would be at 0.50. Target at 0.55 first followed by maybe 0.600.....

Stop loss 0.485.

 

******* Blue Chip with Potential Short term upside: OCBC. Share price 10.58.

OCBC has cleared immediate resistance at 10.55 yesterday and has continued to surge higher today. Near term support remains at 10.55 currently and as long as 10.55 support holds in the near term, OCBC is poised to head higher on any market strength. Target at 11.00 then 11.20 which was the high set in May 2013. A good blue chip to ride any market strength and for a rebound back to test previous high.

Stop loss at 10.48

 

***** Monitor Closely: OKH Global. Share price 0.49.

Following up from trading call made on 4^th July 2013. OKH Global has consolidated briefly below 0.45 level before breaking above again. Looks set to test this 0.500 Critical psychological resistance level. Might see it consolidate below this level for a while before attempting to break it again like we have seen for all the other resistance previously. Would be good to realize some profit around the 0.500 level for those who entered below 0.400. A break above 0.500 level can see it trade higher though, to find a new all time high. Aggressive traders can consider adding more long positions on breakout. So far, upward trend intact in the short term as still above 20 DAY MA (Green line) and have not traded below previous day low for each passing day. No one knows how high it can go.
Stop loss at 0.46 for short term trades.

 

********* Trading BUY: Yingli. Share price 0.455. (Breakout seen above 0.45)

Yingli has been  trading below the 0.45 resistance level for about 1 and a half month and finally we have seen it broke this level today on high volume. Currently at TOP 10 Volume. Has tested the 0.45 level for about 4 times but have failed to break above each time. As long as 0.45 remains as the new support level, possible to head to test 0.500 next psychological resistance level. A break above 0.500 can see it go to 0.53 to 0.55 level which was the high set in April 2013.

Stop loss at 0.435.

 

NEWS – 22 JULY 2013

YINGLI: Announces new strategic plan. Highlight it has comparative advantage in Chongqing (population of ~30m people) which it will exploit mkt depth and strengthen foothold. Besides core CBD, co will expand into district CBDs and suburban centres in Chongqing, including Liangjiang New Area. Plans to expand into 2nd/3rd tier cities in China, with focus on 1-2 initial cities which co has good relationships with the local govt and partners. Also plans to start and build its Property Capital Mgmt business as part of strategy to recycle capital such as through REITs. Transforming into a green co, with projects meeting/exceeding China’s natl and/or internationally recognised green bldg standards. Plans to attract strategic investors through new shd issuance, as well as issue bonds through a MTN programme.

 

UOBKH- 27 MAY 2013

 

 

UOBKH – 16 MAY 2013

 

***** Monitor Closely: Noble Group. Share Price: 0.900. (CFD Trading SELL)

Following up from previous call made on 25^th June 2013. Noble has indeed broken its support at 0.95 and traded lower to test the next critical support at 0.900. Has been trading from 0.90 to 0.95 for about 2 weeks but still no signs of rebounding above the support turned resistance at 0.95 level. Have seen a slight breakdown of 0.90 Critical support yesterday and today with a low set at 0.895. Cautious on this counter as if the buyers at 0.895 get thrown down, more downside is possible to 0.85 probably. Can consider accumulating CFD SHORT positions if the support does not hold.

Stop loss at 0.915 for any short trades on breakdown.

 

****** Watch the Potential Breakout: Interra Resource. Share price 0.49.

Interra has been trading below this 0.49 resistance level for more than a month. Today we have seen it surged to TOP 10 volume and currently has tested and broke the immediate resistance at 0.49. The next Critical Psychological resistance to watch is the 0.500 level, if this level get taken up by buyers, a potential trade setup can be in place for more upside. Day high as of now is the 0.500 level that it has attempted to break above but so far NOT YET. Possible to enter around this level to wait for any breakout opportunity, we will average up on the lifting of 0.505. Short term target to 0.545 – 0.55 level first which was the high set in June last month.

Stop loss at 0.485 for breakout trades.

 

NEWS ON 17^TH JULY 2013

-- INTERRA (ITRR): Its jointly controlled co, Goldpetrol Joint Operating Co, completed drilling YNG 3255 well in Yenangyaung oil field in Myanmar, and well is producing 75 bbl a day. Well is the 6th drilled in the field and 11th drilled in Myanmar this yr.

 

DBSV – 5 JUNE 2013

**** Monitor for Breakdown of Support: Thbev. Share price 0.58. (CFD SHORT TRADE)

THBEV is currently testing its critical support at 0.58 which has held for more than 3 months already. Quite a significant level to watch. If this support gets sold down, more sellers might emerged to sell it down further. A potential CFD SELL trade if the 0.58 support breaks down with near term target at 0.55. Note that if the 0.58 support still holds, it can still stage a rebound back up to the 0.600 level, nobody knows so let’s see. J

Buy stop at 0.59 for Cfd Sell trades.

 

****** Potential breakout of Immediate resistance: Rowsley. Share price 0.465.

Rowsley has been consolidating below 0.465 for more than a month. Testing this level currently. Will be a Trading Buy Call If the 0.465 level and the 0.47 level gets lifted. Target to 0.500 near term. New support would be at 0.45 on the breakout ! Top 20 volume seen currently on attempting breakout, it’s a matter of time ! A slight Ascending triangle formation breakout seen which can signal more short term upside. Recent high was 0.500 in June which will stand as a next major resistance.

Stop loss 0.435

 

****** Monitor for Short position: Ezra. Share price 0.89. (CFD short trade if 0.88 support is broken)

Ezra has traded downwards for the past 2 days on poor earnings result. Today we have seen it touched a low of 0.88 level before bouncing up from that support. Support at 0.88 is a critical level to watch as it was supported very well in June last month and June last year 2012. If the support at 0.88 does not hold we can see Ezra go down further to 0.85 and finally 0.800 level. Possible to accumulate CFD Short positions on this breakdown of support. On the market depth currently, there are about 1.3m shares on the bid at 0.88 which shows there buyers are out to hold that level. However, if sellers were to start throwing down fast and hard at this level, be prepared for more short term downside. Those considering to long can consider accumulating on dips if Ezra dips near the 0.800 support for a technical rebound.

Buy stop at 0.915 for Sell trades

 

DMG – 16 JULY 2013

 

OCBC – 15 JULY 2013

Ezra Holdings: Time needed for subsea to deliver sustainable earnings
Summary: Ezra Holdings (Ezra) reported a 19% YoY rise in revenue to US$317.1m but saw a 68% drop in net profit to US$7.2m in 3QFY13, such that 9MFY13 revenue and net profit accounted for close to 75% of our full-year estimates. However, stripping out one-off items, we estimate core net loss of US$54m for the quarter. Gross profit margin was only 1% vs. 17% in 3QFY12. The main reason for the poor performance was the subsea segment, which went into the red with delays in project executions and unforeseen costs. As highlighted in our earlier reports, we have been waiting for evidence of smooth execution in this business before we turn more positive on the company. In view of the lack of sustainable core earnings for now, we value Ezra using a P/B of 0.7x, such that our fair value estimate drops from S$1.10 to S$0.99. Maintain HOLD. (Low Pei Han)

 

Phillip Securities – 15 JULY 2013

 

****** Potential breakout: Kreuz. Share price 0.78. (Follow up from previous call)

Follow up from previous call made on 4^th July 2013. Kreuz has managed to stay above the 0.700 new support level and trended upwards. As mentioned previously, 0.800 would be the next critical resistance level which it has also tested yesterday but failed to cross above. Likely to consolidate awhile from 0.75 to 0.80 before attempting a breakout again as we have seen it surge up by quite a fait bit over the past 2 weeks already. A break above 0.800 can see it search for new high in strong momentum probably from 0.84 to 0.86 level first. Are we seeing The next Ezion ? Support at 0.75 currently. Aggressive traders can consider averaging up if the 0.805 gets lifted and take profit all together a few bids higher.

Stop loss at 0.735 for entry trades around this level.

UOBKH – 24 JUNE 2013

 

*****Trading BUY: NeraTel. Share price 0.81. (Follow up from previous call)

Following up from Buy Trading call made on 3^rd July 2013. NeraTel has indeed trader higher and tested the 0.800 psychological resistance level today and has broken above this level as of now. Day high is at 0.82 currently. As long as 0.800 holds as the new support level, more potential upside can be possible to 0.85 first probably. Might see it consolidate above 0.800 before making new high. Support at 0.79 to 0.800 currently.

Stop loss tight at 0.785

 

LIM AND TAN – 15^TH JULY 2013

 

AM FRASER: 5^TH JULY 2013

 

******* Downside prevails: Cosco Corp. Share price 0.73. - SELL (Descending triangle bearish formation seen)

Following up from SELL trading call made on 7^th May 2013. Cosco has indeed traded lower after breaking critical support level at 0.800 in May 2013. After trading downwards in June 2013, recently we have seen Cosco Corp consolidated just above the 0.73 support level for about a month forming lower highs on each rebound. A Descending triangle breakdown formation is seen currently and if the support at 0.73 does not hold, more downside is possible to 0.700 fast. A break below 0.700 support can see it trend further lower in the near term. Note that it has been consistently trading BELOW the 20 DAY MA (Green line) which shows that downward trend in the short term is still pretty much intact.

Buy stop at 0.775 for CFD Short trades

 

OCBC – 5^th July 2013

COSCO Corp (Singapore): Don’t catch a falling knife

COSCO Corp (Singapore)’s share price has fallen by about

14% since our last update (“Downgrade to Sell – Missed

Expectations”, 6/5/2013) such that it is close to our

previous S$0.76 FV. However, we do not think it is time to

upgrade our call. The macro environment is looking

increasingly gloomy. In China, an unexpected credit

squeeze in the Chinese interbank market raised concerns

over the fragility of the Chinese banking system. The

surprise was that the PBOC took an unusually tough line by

refusing to inject liquidity, at least for a few days. Should

the credit conditions deteriorate, we think that COSCO, with

its large debt burden, will be vulnerable. The group’s net

gearing climbed to 131% as of end 1Q13, from just 10% as

of end FY10. We estimate about half of its existing debt

(S$3.4b) would need to be refinanced within the next 12

months. Considering the risks, we cut our PBR peg to 1.0x

(or 2 std dev below) and FV to S$0.60 (previously S$0.76).

Maintain SELL.

 

******* Monitor Closely: Swiber. Share price 0.755 (Potential breakout)

Swiber has traded below the 0.75 resistance for slightly more than a month and today we have seen it test the 0.75 – 0.755 resistance again. High as of today is 0.76 currently. Could be a potential stock for more upside if the 0.76 level get lifted within the next few days. If that happens, near term target to 0.800 and recent high of 0.81.

Stop loss 0.735 for short term trades

 

OCBC – 10 JUNE 2013

Swiber Holdings: More work coming up?
Summary: According to Upstream, PEMEX is preparing to begin a bid process that aims to offer a contract to deliver and install four Ayatsil platforms. The group is in the pre-qualification phase for the contract, and heavy-lift contractors such as Saipem, Heerema and Swiber Holdings are said to be interested. The entire package is estimated to be worth ~US$300m. Swiber recently saw its share price run up about 23% from 14 May (pre-1Q13 results announcement) to its close on Friday, after we upgraded our rating from Hold to Buy. However we still see an upside potential of about 12% over a one-year time frame. Maintain BUY with S$0.86 fair value estimate.

 

OCBC – 31 MAY 2013

EXPANDING INTO DEEPWATER
- Plans to buy US$500m vessel?
- Similar to Lewek Constellation
- Monitoring cash flows
According to Upstream, Swiber Holdings is preparing to invest in its first large deep-water offshore construction vessel for its fleet. In particular, the company is understood to have expressed its intention to purchase a vessel similar to Ezra’s Lewek Constellation. The capex of US$400-500m is huge, but considering that the unit is expected to take up to three years to build and the group has not announced any additional substantial capex plans, this may be a manageable purchase. Meanwhile, we would continue to monitor the group’s cashflow from operations. Pending an official statement from the company, we do not see this as a surprise, as Swiber has expressed its intentions to expand its operations into deeper waters. Maintain BUY with S$0.86 fair value estimate.

 

 

CIMB – 30 MAY 2013

 

******* Trading Buy: DBS. Share Price 16.48. (Rebounding back up?)

DBS has staged quite a clear breakout yesterday above 16.25. Has surged higher again on overall market strength today above the high of 16.36 made yesterday. Target to 17.00 critically. Supported strongly above the 200 DAY MA (Dotted blue line) which it has touched on the 21^st of June. Longer term uptrend still intact. A good blue chip to hold to ride on any market strength and rebound.

 

HSBC - 11 JULY 2013

****** Trend reversal (BUY): Capitaland. Share price 3.15.

Capitaland has broken down 20 DAY MA support on the 22^nd May 2013 (Green Line) and has came down hard before consolidating for the past 3 weeks below 3.10. Today we have finally seen it crossed above the 20 DAY Short term MA (at 3.10) for the first time since breaking below it. At current level, it has also broke out of consolidation phase with resistance at 3.10 coincidently . Next target to watch will be 3.40 then 3.52 (200 DAY MA) if the market strengthens further. Immediate support would now stand at 3.10 and can consider accumulating on dips above 3.10 for more upside and potential rebound. Recent high in May was above 3.80.

Stop loss at 3.06 for short term trades.

***** Trading Buy: Dukang. Share price 0.555 (Short term rebound possible)

Dukang has just crossed above its 20 DAY Short term moving average (Green line) yesterday and has continued to surge higher testing the critical resistance at 0.55. Have attempted a breakout yesterday above 0.55 but failed. Have staged a breakout this morning above 0.55. Currently at Top 10 Volume, likely to see it trend higher if the new support at 0.55 holds. High as of now is at 0.56. Next target to watch would be 0.600 which was quite a key resistance last month then finally at 0.65 which was the recent high. A break above 0.600 can pave the way for it to test recent high fast. Good luck ! J

Stop loss 0.53.

 

***** STI Direction. Where is the next target to look at ? STI UP 17 pts NOW !

STI has been trading in a tight range from 3125 to 3185 for slightly more than a week and today we have seen it break above this immediate resistance level at 3185. Currently at 3195. If it manages to stay above 3185, the next possible level to watch will be 3200 then 3235 level. It has to convincingly break above 3235 before we can say that short term downward trend has reversed and the overall market can start to trade higher. Note that the 200 DAY MA –Long term trend line coincides with the 3200 level so this is also a critical level to watch.  As of now, STI is struggling to trade above the 3200 level, monitor closely. You can see that the market is very volatile in the past week and trading with no clear direction with immediate support at 3125 then 3065. 

***** Trading Buy: Halcyon. Share price 0.815. (Potential reversal)

Halcyon has broken above the critical psychological 0.800 resistance level which it has been consolidating below since Mid of June. Finally a clear breakout of 0.800 today on pretty high volume Top 10 currently. As long as 0.800 holds as new resistance turned support, more upside can be possible. Near term target would be 0.900 first. High in June was above 1.10. Has finally just crossed above the 20 DAY MA SHORT TERM moving average yesterday after about a month and has continued to surge higher today. This can signal a reversal to short term upward trend. A break above 0.90 can see it attempt  to test critical 1.00 level again.

Stop loss at 0.79. 

****** Impending breakout: Rowsley. Share price 0.45. (Watch the break)

Rowsley has been trading below 0.46 level for about 3 weeks and currently looking to test this critical resistance again. Rowsley has tested this 0.46 level for about 4 times but failed to cross above it. TOP 2 VOLUME SEEN CURRENTLY. If this 0.46 level get lifted, likely to see buyers rushing in to take it higher with a near term target to 0.500 first. Those looking for a breakout can consider accumulating along these levels. Can also average up on the break of 0.46.

Stop loss at 0.425 

**** Monitor Closely: Blumont. Share price 1.205.

Following up from trading call made 2 weeks ago on June 26, 2013. Blumont has again traded higher and formed a new resistance at about 1.20 level. Has seen it test this level again today and managed to cross above it briefly, touching a high of 1.22 as of now. As long as this as this 1.20 holds as a new support level and Blumont holds above this level, more upside can be possible to 1.24 to 1.26 level. You can see that it is still trending above the 20 DAY MA LINE strongly and buyers will start accumulating on any dips once it nears this moving average support line. A break above 1.30 can see it find a new all time high and trade higher.

Stop loss at 1.18 for short term trades. 

**** Monitor Closely: HiapTong. Share Price 0.38. (Positive if the 0.400 breaks out)

HiapTong has cleared the immediate resistance level at 0.34 yesterday and traded higher today again. Like to consolidated from 0.35 to 0.39 before more upside.  Has staged a strong uptrend since the beginning of the year and currently at an all time high. Next critical resistance is firmly at 0.400. Can see it trade higher if this level clears out completely. A break above 0.400 can pave the way to test 0.500. Top 5 volume seen currently on uptick signaling short term strength.

Stop loss at 0.34 

**** Trading Buy: Cordlife. Share price 1.115. (Upward momentum intact)

Following up from previous call made on Monday, 1^st July 2013. Cordlife has consolidated a few days below 1.10 before breaking above it this morning. Support would now be at 1.10 critically where we can see huge buyers stacked there currently. As long as 1.10 holds, still a bullish counter to hold in the short term. Recent high in May was 1.19 where we can possibly see it test this level again. Any break above 1.20 will be quite a positive signal for it to surge to find new consolidation phase probable 1.30 fast.

Stop loss at 1.085.

 

Maybank KE -5^TH July 2013

Cordlife Group: Corporate Con call Feedback; Buy, TP $1.29

Ø  Reiterate BUY. AsiaMedic/Cryoviva JV not a threat. Cordlife has an overwhelming 72% market share today and strong established channels. Even the largest player in India had second thoughts about entering Singapore due to Cordlife’s dominance.

Ø  To deter competition, Cordlife will tie up exclusively with key hospitals and leverage upon its solid financial strength against Cryoviva, which is linked to the third largest player in India via a common shareholder.

Ø  Cordlife will focus itself as a maternal and infant products player and leverage on its existing large customer base, strong connections with doctors and experienced sales team to launch more earnings-accretive products in the near future.

Ø  Cordlife is also constantly looking for opportunities to expand into nearby countries, which should be sooner rather than later, possibly as early as this financial year. ”No earning dilution in the first year of expansion” is Cordlife’s key criteria in overseas venture.

****** Trading Buy: Kreuz. Share price 0.71. (Rebounding back to 0.80 ?)

Kreuz has consolidated for about 3 weeks below 0.700. Have seen a break out above the channel resistance yesterday, downward sloping line which can signal a reversal in downward trend. Note that at this level it has also broke above the 20 DAY MA (Green line) where short term momentum is stronger. Horizontal resistance level at 0.705 which it was below for 3 weeks has been tested and cleared today. As long as 0.700 remains as new resistance turned support, upside in the coming days possible with a near term target of 0.75 to 0.76. A break above 0.800 can see it surge up to find new high.

Stop loss at 0.69 for short term trades.

 

DBSV – 17 June 2013

Go for high conviction growth and value stocks. As
macro recovery remains modest, pick stocks where
earnings growth is highly visible and sustainable:Ezion
(TP S$3.00) will continue to outperform on secured
contracts and its unique market positioning; Tat Hong
(TP: S$1.80) is positioned to benefit from the regional
infrastructure boom; Del Monte (TP: S$0.97) is a proxy
to Philippines, SEA’s 2nd largest consumer market.
Kreuz (TP: S$0.78) is our top pick in the O&G services
sector for its proven execution track record while Midas
(TP: S$0.60) is poised for earnings recovery backed by its
growing order book. For value, Vard (TP: S$1.46) is a
bargain at 6.3x FY14PE vs normalized 10x PE.

 

UOBKH – 21 June 2013

Oil Service - Back to basics.
Ezion Holdings (EZI SP/BUY/Target: S$2.60).Kreuz Holdings (KRZ SP/BUY/Target: S$0.88).
Nam Cheong (NCL SP/BUY/Target: S$0.34).
Triyards (ETL SP/BUY/Target: S$1.11).

As global economic growth picks up, we expect a more uniform gradual
uptrend in charter rates. The oil service sector still trades at a 37%
discount to its long-term P/B mean of 1.78x and has been a consistent
early-recovery cyclical play. Our top picks are Ezion, Kreuz, Nam Cheong
and Triyards. Maintain OVERWEIGHT.  

***** Strong Momemtum: OKH Global. Share price 0.42. (Upside still intact)

Following up from previous call made on Monday, 1^st July 2013. OKH has managed to stay above the 0.400 support level, for the past 2 days have seen it closed above the 0.400 too. Trading range would be tight at 0.400 to 0.425 currently. Probably consolidating awhile before breaking above 0.425 again. Next target on this break would be 0.45 fast. As long as 0.400 hold as near term immediate support, potential short term upside still in place. A break above 0.45 can see it move higher on strength to test critical 0.500.

Stop loss at 0.395. 

******** Still a Trading BUY: NeraTel. Share price 0.71. (Likely to push up further if 0.700 holds as immediate support)

Following up from Neratel Trading call made yesterday, 2nd July 2013. NeraTel has indeed tested the Critical 0.700 resistance today and broke above this morning. Support should remain at 0.700 currently. Note that at this level, it is currently at an all time high and momentum still looks strong as long as it stays above 0.700. Next target probably at 0.74 to 0.75 region. A break above can see it test psychological 0.800 level in the near term before consolidating.

Stop loss at 0.68. 

LIM AND TAN – 3^RD July 2013

 

DMG – 1 JULY 2013

Nera Telecommunications: S$0.63
BUY (TP: S$0.79)

Myanmar Telco’s Real Singapore Beneficiary
Myanmar  government  announced  the winners for the two coveted licenses to
Norway’s  Telenor  and  Ooredoo  (formerly  Qatar  Telecom), which beat out
SGX-listed  Singtel  and  Yoma.  In  view of the fact that both victors are
NeraTel’s established customers, we expect the latter to emerge as the sole
Singapore  winner  in  the  Myanmar  telco  battle.  Reiterate  BUY with an
unchanged TP of SGD0.79 as we look forward to a strong year ahead.

The  only  Singapore winner in Myanmar’s telco battle? While
SingTel and
Yoma  have  lost the battle for Myanmar’s telco licences, NeraTel may score
an  indirect  victory.  This  is  because  our checks show that both of the
Myanmar  license  winners  -  Telenor  and Ooredoo - are NeraTel’s existing
customers. NeraTel is currently providing services to them in Indonesia and
in  Malaysia.  

****** Trading BUY: NeraTel. Share price 0.675. (Cleared 0.65 resistance finally after 2 months)

NeraTel has been trading below 0.65 for about 2 months since yesterday. Finally manage to break out today and staying above currently as of now. Next Critical resistance is at 0.700… likely to test this level within the coming days. Possible to average up on this break of 0.700 and can see it find a new high. As long as 0.65 holds as new support, still positive on this counter. Quite a clear breakout as seen after testing 0.65 for about 4 times for the past 2 months. A break above 0.700 can pave the way to 0.74 to 0.75 near term.

Stop loss 0.635

 

DMG – 1 JULY 2013

Nera Telecommunications: S$0.63
BUY (TP: S$0.79)

Myanmar Telco’s Real Singapore Beneficiary
Myanmar  government  announced  the winners for the two coveted licenses to
Norway’s  Telenor  and  Ooredoo  (formerly  Qatar  Telecom), which beat out
SGX-listed  Singtel  and  Yoma.  In  view of the fact that both victors are
NeraTel’s established customers, we expect the latter to emerge as the sole
Singapore  winner  in  the  Myanmar  telco  battle.  Reiterate  BUY with an
unchanged TP of SGD0.79 as we look forward to a strong year ahead.

The  only  Singapore winner in Myanmar’s telco battle? While
SingTel and
Yoma  have  lost the battle for Myanmar’s telco licences, NeraTel may score
an  indirect  victory.  This  is  because  our checks show that both of the
Myanmar  license  winners  -  Telenor  and Ooredoo - are NeraTel’s existing
customers. NeraTel is currently providing services to them in Indonesia and
in  Malaysia.  According  to  the  terms  in  the  contract, effective from
September  2013,  both  Telenor  and  Ooredoo  have nine months to commence
operations,  and  need  to cover 75% of Myanmar with voice services and 50%
with  data  services  within  the next five years. In order to maximise the
15-year license benefits, Ooredoo has even outlined a more aggressive plan,
spending  USD15bn  to  reach  90% of Myanmar’s population within two years.

In  order  to cover such a vast area in a short time frame, we expect these
telco  operators  to  soon  open up project tenders to equipment and system
integrating  vendors as well as to use radio transmission technology in the
process.  Given  NeraTel’s  established  track  record and expertise in the
field,  we believe that the group has a high chance of winning the tenders.
The  group  has already been deploying payment terminals in the country and
we  expect  them  to  formally  set  up  a telco company in bidding for the
contracts.

Another pleasant surprise coming up? As mentioned in our
previous report
dated  29th  April,  the  recent  Nera  Malaysia acquisition will result in
one-off profits of around SGD7m, of which SGD5m is in cash. We believe that
there  is  a  high chance that the gain will be recorded in the upcoming 2Q
results,  thereby increasing the likelihood for the company to surprise the
market with interim dividends. As such, we adjust our FY13 profit estimates
upwards.

******* Following up from trading call issued yesterday: Cordlife. Share price 1.07.

Following up from Yesterday Trading Call on Cordlife, 1 July 2013. Cordlife has indeed managed to close above the critical 1.00 resistance level yesterday and surge even higher today. As mentioned, near term target now would be at 1.10 first where there are huge sellers stacked at this level currently. Today’s high as of now is 1.09 before it dipped slightly on profit taking. Likely to be supported above 1.05 then 1.00 strongly. As long as 1.05 is not broken down we are bullish in the short term. A break above 1.10 can pave the way for it to test the all time high set in May at 1.19.

Stop loss at 1.035

 

Maybank KE – 1^ST JULY 2013

Cordlife Group: The Cords That Bind; Initiate at BUY TP $1.29

Ø  Initiate coverage with buy at street high target price of SGD1.29. Cordlife is an umbilical cord blood bank which provides cord blood and cord tissue storage services in 6 countries with either high penetration rate or high birth rate within Asia. Occupying a strong platform to expand its product range combined with a dominant position in Singapore, Philippines, Indonesia and strong presence in Hong Kong, India and China, it is poised to transform into Asia’s infant products champion over the next two years.

Ø  At its current price, we believe the market has not fully priced in Cordlife’s favourable market position, strong regional presence, excellent product expansion opportunities, exceptional margins and high competitive advantages As a result, its valuation multiple is deeply depressed. Our TP of SGD1.40 is pegged at 23x FY14F PER, in line with its global peers and 27% discount to its local peers.

Ø  The nationwide rollout of cord tissue banking coupled with completed acquisition of established operations overseas are expected to significantly boost Cordlife’s revenue in FY14F.

 

 

**** Trading Buy: Sino Grandnes. Share price 1.475

Sino Grandnes has broke above the 1.42 resistance yesterday which it  has been consolidating below since 11 June 2013. At yesterday closing price, has also staged a breakout above the 20 DAY MA convincingly. Next resistance to watch is 1.50. A break above 1.50 can see it go to 1.60 quickly which was the high set in May. Looks set to test this critical level again on the positive IPO news of its beverage business. Immediate support at 1.45 then 1.42.  A break above 1.60 can see it find a new high and consolidation phase before pushing up further.

Stop loss at 1.44 for short term trades

 

Announcement yesterday

The Board of Directors of Sino Grandness Food Industry Group Ltd (“the Company”) wishes to announce that the Company is proposing to spin-off its beverage business segment ("Proposed Spin-off) under its wholly-owned foreign subsidiary, Garden Fresh (HK) Fruit & Vegetable Beverage Co., Limited (“Garden Fresh”) together with its group of subsidiaries for a listing on an internationally recognised stock exchange ( the “Proposed Listing”) with an accompanying initial public offering of shares (“IPO”).

 

Maybank KE – 2 JULY 2013

Sino Grandness: Big Uncertainty Removed; Maintain Buy TP $1.89
Ø  Sino Grandness announced yesterday that it has obtained a no-objection letter from SGX for the proposed Garden Fresh spinoff. It is an important milestone that we have been waiting for. We are more confident about a successful Garden Fresh IPO than before, thus we change our valuation methodology to SOTP. Our target price is raised to SGD1.89 accordingly. Maintain BUY.
Ø  Garden Fresh IPO is likely to launch in the next twelve months and we are optimistic on an at least mid-teen FY13 IPO PER.
Ø  Assuming a successful Garden Fresh IPO and parent company Sino Grandness selling some vendor shares, some special dividends can also be expected in FY14.

 

 

OCBC – 2^nd July 2013