Yangzijiang Shipbuilding: 13 August 2018, Monday, 4.30pm Singapore Time(Click on Technical Chart above to Expand)Attached is the Major Wave Technicals for Yangzijiang Shipbuilding, an STI Index Component Stock (Blue Chip) that is listed in the Singapore SGX (SGX: BS6). Yangzijiang has broken up the black trendline resistance as illustrated in light green circled region. This breakup of resistance follows the successful backtest of fibonacci 78.6% retracement support. The was achieved with high volume flow, i.e. where smart monies would like to end the correction. The volume flow is an exact duplicate of the breakout in end-2016 which spurred a more than 2x rally. Yangzijiang will attempt to spur another 2x rally from here.  See the pattern recognition region as illustrated o

Yangzijiang Shipbuilding Holdings Ltd (SGX: BS6) is one of the largest private shipbuilding companies in China. It makes a wide range of commercial vessels, including large containerships, bulk carriers, and liquefied natural gas (LNG) carriers, at its four shipyards in Jiangsu Province, China. Last Friday (10 August), Yangzijiang’s shares closed at S$0.99 apiece, up 8.8% for the week. In comparison, during the same period, the Straits Times Index (SGX: ^STI) put on just 0.6%. What could be the reason behind the increase in Yangzijiang’s share price? The most probable cause is that the company reported a robust set of financial results for the second quarter of 2018. Strong financial numbers Revenue for the reporting quarter came in at RMB 8.0 billion, more than doubling from the t

Here are three things about the local stock market that you might be interested in today. 1. The Straits Times Index (SGX: ^STI) ended the day down 0.4%, or 13.3 points, to 3,326.7. Of the 30 index components, 11 were in the red; 14 were in the green while the remaining five finished unchanged. The biggest loser among the blue-chip stocks was DBS Group Holdings Ltd (SGX: D05). The bank’s shares fell 2.9% to S$26.00 each. Last week, DBS announced its second quarter of 2018 results. For the quarter, total income improved 10% year-on-year to S$3.2 billion while net profit (without one-off items) climbed 20% to S$1.4 billion. However, the bank’s chief executive warned that he expects the Singapore property loan growth to be affected by the latest cooling measures. To know more about the e

Yangzijiang (“YZJ”) has been the 2nd worst performing STI stock with -40% year to date (“YTD”) return based on the closing price of $0.880 on 6 Aug 2018 (click HERE). In the past four days, YZJ has weakened approximately 9.3% after hitting the intraday high of $0.970 on 31 Jul 2018. Is this recent share price decline the harbinger of poor results to be released on 7 Aug, after market?   2QFY18 results unlikely to be poor Based on my personal view, 2QFY18F results are unlikely to be poor based on the following points: a) Number of vessels delivered Based on a CGS-CIMB Research report dated 10 Jul 2018, CGS-CIMB wrote that YZJ is likely to deliver some 20 vessels in 2QFY18 vis-à-vis 9 in 1Q18 (2Q17 delivered 4 vessels). In addition, it is likely to register stronger shipbuilding

Income stocks are generally defined as companies that pay regular and increasing dividends. These stocks also typically offer dividend yields that are higher than that of the general stock market. In January this year, my Foolish colleague, Chong Ser Jing, ranked all the stocks in the Singapore stock market according to the Magic Formula, which was popularised by investor Joel Greenblatt. The purpose of ranking the shares was to unearth the 30 best stocks in Singapore for 2018 based on the formula. To apply Greenblatt’s strategy, we should buy the 30 stocks from the list and hold them for a year. However, the income investors among us might be looking for higher-yielding stocks out of the 30 companies to add to our portfolio. As such, with the help of our data provider, S&P Globa

Last month, 52.5 million shares or units were repurchased by 37 stocks for a total amount of S$109 million, according to a recent report by the Singapore Exchange. Compared to June 2018, the latest buyback consideration was down 37%. Blue-chip stocks took up seven spots out of the top 10 stocks with the largest buyback consideration value in July 2018. In terms of value, the five stocks with the most share buybacks were United Overseas Bank Ltd (SGX: U11), DBS Group Holdings Ltd (SGX: D05), Wing Tai Holdings Limited (SGX: W05), Yangzijiang Shipbuilding Holdings Ltd (SGX: BS6) and Keppel Corporation Limited (SGX: BN4). These five companies contributed to 74% of the S$109 million in total consideration. The only listed bank not featured in the list above, Oversea-Chinese Banking Corp Limited

For the week, the Straits Times Index (SGX: ^STI) rose 0.8%, or 27.15 points, to 3,324.98. Of the 30 index stocks, 18 were in the green; 10 were in the red while the remaining two were flat. The biggest winner of the lot was Yangzijiang Shipbuilding Holdings Ltd (SGX: BS6). The shipbuilder’s shares put on 5.2% to S$0.905 each. Other big winners of the Straits Times Index include the three banks. United Overseas Bank Ltd (SGX: U11) added 3.4% to S$27.32; Oversea-Chinese Banking Corp Limited (SGX: O39) rose 3.1% to S$11.66 while DBS Group Holdings Ltd (SGX: D05) increased 3.1% to S$27.06. Both United Overseas Bank and DBS will be announcing their 2018 second-quarter financial results next week. On the other end of the spectrum, Hutchison Port Hldg Trust (SGX: NS8U) lost the most ground. I

The market is grappling with rising uncertainties from interest rate hikes and global trade war. Sentiments swung 180 degrees from optimism about a broader-based domestic economic recovery and improving corporate earnings to pessimism and fear of the impact of a US-China trade war and liquidity crunch as central banks adopt a more aggressive tightening path. Uncertainties Have Created Attractive Valuation For Singapore Stocks However, despite the doom and gloom, DBS thinks that it is now the right time to invest in the Singapore stock market. DBS notes that Singapore equity market valuation has fallen to an attractive level. The MSCI Singapore Index 12-mth forward PE swung down by two standard deviations, which is deep by historical standards. In addition, corporate earnings revision has b

First quarter of 2018 has passed in a blink of an eye. I thought it would be interesting to look at STI and have a good sense how the STI blue chips are doing, especially when we just had some volatility in Feb and Mar this year.Source: Business Times, 31 Mar 2018Based on the table above, I noticed thatFive companies are at a price level of 75th percentile or higher based on their past one-year price range: City Developments, Venture Corp, DBS, OCBC and UOB. Among these, Venture at $28.11 is the closest to its 52 week high, owing to its recent inclusion into STI and the continued optimism on electronic manufacturing sector.Seventeen companies are now within 25% of their one-year lowest price. This is more than half of the 30 components of STI. Among them, Hutchison Port Holdings ($0.295) a

Technically this market snapshot is not really end Q2 - its is already one week into July as I wrote this article late.But market had some big movements on Fri 6 Jul, after latest round of property cooling measures announced on Thursday (5 Jul) night. So i might as well base this article on 5 Jul closing price, to better reflect latest market movement.Source: Business Times, 7 Jul 2018Q1 article can be found here.As of last Friday, there was only one company priced above 75th percentile of its past 52 week price range: Comfort Delgro. There were 5 companies in Q1: CDL, Venture, and the three banks. Venture had since registered a spectacular drop due to trade war fear and worries on tech stocks, while banks and CDL were roiled by the recent property cooling measure. There are 17 compan

One of the best investors the world has seen, Warren Buffett, is a huge advocate of businesses buying back their shares. He believes that share buybacks can increase shareholder value if done for the correct reasons. On that note, here are three companies picked at random that have repurchased their shares thus far during the week, as of market open today. Yangzijiang Shipbuilding Holdings Ltd (SGX: BS6) Yangzijiang is the largest China-based company in the Singapore stock market. It is also a leading shipbuilder in China in terms of manufacturing capability and capacity. On 16 and 17 July 2018, Yangzijiang repurchased 2,914,400 shares in total at a price range of between S$0.86 and S$0.88 apiece. The overall cost was slightly more than S$2.5 million. The shipbuilder’s shares closed at

Well-renowned investor, Warren Buffett, is a huge advocate of businesses buying back their shares. He believes that share buybacks can increase shareholder value if done for the right reasons. On that note, let’s check out three blue-chips that have repurchased their shares thus far during the week, as of market open today. Oversea-Chinese Banking Corp Limited (SGX: O39) Oversea-Chinese Banking Corporation, or OCBC for short, is the longest established local bank and is the second largest financial services group in Southeast Asia by assets. On 9, 10, 11 and 12 July 2018, OCBC bought back a total of 300,000 shares at a price range of between S$11.31 and S$11.51 per share. The total cost was around S$3.4 million. The bank’s shares closed at S$11.30 apiece on Thursday. This translates t

Warren Buffett is a huge advocate of businesses buying back their shares. He believes that share buybacks can reveal a thing or two about the company’s management. He once said: “What you’d like to do as an investor is hook them up to a machine and run a polygraph to see whether it’s true. Short of a polygraph the best sign of a shareholder-oriented management — assuming its stock is undervalued — is repurchases. A polygraph proxy, that’s what it is.” On that note, let’s check out three Straits Times Index (SGX: ^STI) companies picked at random that have repurchased their shares thus far during the week, as of market open today. Oversea-Chinese Banking Corp Limited (SGX: O39) Oversea-Chinese Banking Corporation, or OCBC for short, is the long

Following up from previous blog post when YZJ Shipbldg was at 1.07 >>> http://singaporetradinginsights.blogspot.com/2018/05/yzj-shipbldg-downtrend-may-still.htmlIt was mentioned that more downside can happen, especially if 1.00 give way…True enough, we have indeed seen the breakdown of the 1.00 level a few days later and down it went all the way towards our target at 0.900..However, it has staged a strong technical rebound from the 0.900 and managed to climb back above 1.00 last month..Just about 3 weeks back, we then spotted some bearish price actions for the downside to continue and some target were drawn…See what I mean….We have hit our target at 0.900 again over the past week but seems like more selling is back…There seems to be a breached of the 0.900 support o

A company can do a few things with the free cash flow it churns out every year. It can reinvest the money into its business, use it to pare down debt, pay dividends to shareholders, or buy back its shares. There are a few reasons why companies want to buy back their shares. Some companies might do so to support their share price. By reducing the number of shares outstanding, the earnings per share will increase. This, in turn, causes the price-to-earnings ratio to fall due to a larger denominator. The share price should then rise as the market perceives the share price to be cheaper than before the repurchase. In June this year, 74.6 million shares were repurchased by 33 companies for a total amount of S$174 million, according to a recent report by Singapore Exchange Limited (SGX: S68). Th

Yangzijiang Shipbuilding Holdings Ltd (SGX: BS6) is the largest China-based company in the Singapore stock market. It is also a leading shipbuilder in China in terms of manufacturing capability and capacity. Shares in the firm have taken a massive beating of late. Since its most-recent share price peak in November 2017, shares have fallen by around 48% to end at S$0.885 apiece yesterday. The precipitous plunge in the firm’s share price may cause investors to question: is there value in its shares? To answer that, let’s look at Yangzijiang’s financial performance for the past 10 years. From FY2008 to FY2017 (Yangzijiang has a 31 December year-end), the company’s revenue has grown by 11.2% annually while its net profit has increased by 7.1% per year during the same period. A summary

For the week, the Straits Times Index (SGX: ^STI) inched down by 0.6% to end at 3,268.7. Of the 30 index components, 20 were in the red; nine were in the green while one – Singapore Exchange Limited (SGX: S68) – was flat. The biggest loser of them all was Golden Agri-Resources Ltd (SGX: E5H), one of the leading palm oil plantation companies in Indonesia. Its shares tumbled 7.6% or 2.5 cents to end Friday at S$0.305. For its 2018 first-quarter earnings, which the company reported on 15 May, revenue slumped 11.3% year-on-year to US$1.8 billion while net profit plunged 68.4% to US$11.9 million. The company’s chairman and chief executive, Franky Widjaja, commented on the latest results and also about the long-term prospects: “First quarter 2018 was a challenging period for the palm o

Performance of Straits Times Index (STI) Constituents in June 2018 The Straits Times Index (STI) ended 159.48 points or 4.65% lower to 3268.70 in June 2018.(compared to 3428.18 on 31-May-2018) Top Performers: Jardine Strategic, Hutchison Port Holdings Trust, Jardine Matheson, CapitaLand Mall Trust. Least Performers: Venture Corp, StarHub, CapitaLand, Jardine Cycle & Carriage, Keppel Corp. Most Volatile: Venture Corp, StarHub, Hutchison Port Holdings Trust, Yangzijiang Shipbuilding, Thai Beverage. Advertisement Continue Reading »

All Ein55 graduates are trained for a simple trading/investing system of Optimism + FA + TA. Here is a sample application on YangZiJiang stock review based on a request by a forum member, sharing for pure educational purpose, not a personal financial advice.   Stock = YangZiJiang (SGX: BS6.SI) Current Price = S$0.90 (28 Jun 2018)   Optimism (long term) = 39% (below Ein55 “intrinsic value” of $1.13 but still above buying zone of 25% Optimism).   Optimism (mid term) = 22%.   FA (Fundamental Analysis) = 4.5 point (out of max 8 points for a super giant), average performance.   TA (Technical Analysis) = Down-Down-Down (sharp falling knife from short term to mid term to long term), potential for short term shorting but must know how to setup with entry/

Warren Buffett is someone who actively encourages companies to buy back their shares if the conditions are right. He once said that when the shares of outstanding companies with strong financial positions are selling below their intrinsic value, no other action can benefit shareholders as share repurchases can. On that note, let’s look at three Straits Times Index (SGX: ^STI) components picked at random that have repurchased their shares thus far during the week, as of market open today. Oversea-Chinese Banking Corp Limited (SGX: O39) Oversea-Chinese Banking Corporation, or OCBC for short, is the longest established local bank and is the second largest financial services group in Southeast Asia by assets. On 25 and 26 June 2018, OCBC bought back 200,000 shares ranging from S$11.55 to S$