******** 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

 

***** Trading Buy: OKH Global. Share price 0.405. (Follow up from previous call)

Follow up from previous call made last Thursday, 27^th June 2013. OKH has indeed tested the critical 0.400 psychological level to find a new all time high. Short term upward momentum still intact as long as it stays above new resistance turned support at 0.400. Possible to look for a new target at 0.45. Might consolidate awhile above 0.400 before pushing higher further. High seen today was 0.41.

Stop loss at 0.385. 

*** Trading BUY: Cordlife. Share price 0.965. (Lifted consolidation phase above 0.95)

Cordlife has consolidated below 0.95 for about 3 weeks after the huge sell down on 10^th June 2013. Finally have seen strong volume currently and break out above 0.95 consolidation phase. Have also broken out above SHORT TERM  20 DAY MA. Target to 1.00 in the near term. A break above 1.00 can see it go to 1.10 next. As long as 0.95 remains as new support, bullish in the short term and rebound back up possible.

Stop loss at 0.935 

**** Possible Sell trade: Interra Resource. Share price 0.445. (CFD SHORT TRADE ONLY)

Interra Res has been consolidating above the 0.45 support level since Mar 2013 for about 3 months already and was holding really well. Currently 0.45 support has been tested and broken today. Needs more confirmation when the 0.44 level gets thrown down. If this happen, note that I has also broken below the 200 DAY MA line. Next support would be from 0.415 to 0.400 level which was supported since Jan 2013. Cam consider some short positions if the 0.44 lifts off too with a downside target of 0.400.

Buy stop at 0.465. 

**** More downside possible first: Midas. Share price 0.43. (Broke support at 0.44) - CFD SHORT TRADE position opportunity

Midas has broken it support at 0.44 last week and traded below it last week failing to stay above. Currently forming a lower low at 0.43, lower than the last week low of 0.435 which can signal more sell down momemtum and weakness. As long as 0.44 stays at resistance, more downside possible to 0.400. It has also broken below the 200 DA MA (Dotted blue line) last week which can signal a change to downward trend.  Next critical psychological support at 0.400, can see it go lower if this does not hold still, possible to 0.35 level which was supported in Nov last year.

Buy stop at 0.45 for any short term “CFD Short positions”