Dear all, With reference to my market write-up published on 29 May 2019 (click HERE), where I mentioned that the sell-off in the markets revealed interesting trading opportunities, markets coincidentally bottomed on 3 Jun 2019 and staged a strong recovery. I have already sold into strength and reduced my percentage invested in stocks from 150% in early June to 12% now. Personally, I am cautious in the market going into July. Why is this so?   Basis below 1) Markets jumped yesterday following the U.S. / China trade truce announced over the weekend, despite the lack of details on what was discussed over the weekend. Personally, it is likely that markets will continue to be choppy, as headline news change over the progress of U.S. China trade talks. 2) After touching an intraday high of 2,97

Dear readers, Asian markets have fallen quite a bit in the past one month. For example, Hang Seng has fallen close to 2,900 points since touching a high of 30,280 on 15 Apr to trade 27,391 which is the low last seen in January. STI has fallen almost 250 points from an intraday high of 3,415 on 29 Apr to close 3,165 today. Looking at the indices may be deceiving as many shares have fallen a lot. For example, based on Table 1 below, most stocks have fallen at least 10%, with Sembmarine tumbling almost 17% in less than a month. Table 1: % fall since 29 Apr vis-à-vis indices Source: Ernest’s compilations Note: The calculation in the % chg does not exclude dividends distributed during the above comparison period. I.e. If UOB’s $0.70 / share dividend is included, the % chg will be lesser.

In the second part of this two part series, we focus on highlighting four more small/mid cap gems that have the potential to become winners in the near future. Investors Takeaway: 4 Small/Mid Cap Winners In The Making Sunpower Group Source: Sunpower Group Sunpower Group (Sunpower) is worth paying attention to. A one-stop solution provider for energy conservation, waste-to-energy and renewable energy projects, Sunpower specializes in the design, R&D, and manufacture of energy conservation products in China. Green Investment Sunpower recorded a strong core net profit growth of 117.5 percent year-on-year, thanks to a strong green investment segment. Its manufacturing revenue also grew by around 40 percent to underpin an improvement in gross margin and operating cash flow. Moving forwa