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Merry Xmas! As we approach end 2019, most market strategists are putting their market estimates for end 2020. Although I do not profess to be in the league of these market strategists, just for fun, I am expecting STI to head towards 3,390 in 1Q2020. STI closed at 3,222 on 24 Dec 2019. I have outlined my basis and the risks involved.   Factors for my bullish basis a) Chart looks positive after bullish break Based on Chart 1 below, STI has staged a bullish break above its flag formation on 12 Dec 2019. Notwithstanding below average volume for the past couple of weeks (perhaps due to holiday period) and low ADX, STI’s indicators are slowly strengthening with rising OBV, MFI and RSI. The bullish break on 12 Dec points to an eventual technical measured target of around 3,389, probably in th

Yoma Strategic Holdings Ltd (SGX: Z59) is a leading conglomerate in Myanmar with businesses in various sectors ranging from consumer to financial services. Serge Pun founded the group in 1962. As Yoma is a conglomerate with diverse business interests, the best way to find out how it makes money is to look into its various divisions. With Myanmar being one of the last Asian countries to open its doors to foreign investors, there has been a lot of interest from investors in gaining access to the country. One of these ways is through companies such as Yoma, as it has an established track record of operating in the country. Here’s a brief rundown of how the group makes money for its investors. The table below shows the revenue contribution from each division. Source: Yoma Strategic Q1 2

Food Empire Holdings Limited (SGX: F03) is a branding and manufacturing company in the food and beverage sector. The group’s products include instant beverage products, frozen convenience food and snack food. Its products are exported to over 50 countries, and the group has eight manufacturing facilities with 24 offices worldwide. Food Empire has seen its share price climb more than 140% from a low of S$0.21 in early 2016 to the current S$0.50, giving the company a market capitalisation of around S$268 million. The group has seen its fair share of challenges as it is one of the few companies on the local bourse which was able to successfully penetrate the Russian market, and has been selling its proprietary MacCoffee and Petrovskaya Sloboda brands there for many years. Investors may

Hi-P International Ltd (SGX: H17) is one of the region’s largest integrated contract manufacturers. The group provides solutions to clients in diverse industries such as wireless telecommunications, consumer electronics and medical devices. It has 12 manufacturing plants located across five cities in China. Hi-P’s share price has plunged from a high of S$2.68 in March 2018 to the current S$1.15, a 55% drop in just 18 months. One reason for this could be its lacklustre FY 2018 earnings, which saw revenue dipping marginally by 1.7% year-on-year but net profit declining by almost 17% due to higher cost pressures. In October 2018, the group had also issued a profit guidance that mentioned a delay in sales recognition due to postponement of billing and lower market demand for certa

Myanmar is considered the “final frontier” in Asia — both literally and metaphorically — as it is one of the last countries within Asia to open its doors to foreign investors in recent years. In the last decade or so, countries such as Vietnam, Cambodia, and Laos have opened up to the outside world, and the resulting investments that poured in have helped to lift the countries out of poverty and improve their economies drastically. Long considered a frontier market (rather than an emerging market), Myanmar is a country ripe with opportunities, as years of military rule and a lack of investment have left it with decaying infrastructure and struggling businesses. Investors keen to gain exposure to this new market can look for companies with exposure to Myanmar. The c