Venture=$8.17 (Bollinger Band breakout)
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Showing posts with label Venture. Show all posts
Showing posts with label Venture. Show all posts
Wednesday, July 22, 2009
Wednesday, May 20, 2009
Technically buy Venture
Yesterday’s close for Venture was strong, closing at the high of the day at S$6.78. Venture pulled back upon testing resistance at S$7.14, indicating that selling/profit taking came into the market. The strong close near the highs yesterday tells us that selling is probably done and buying is coming in.
Similar to SPC, stochastics has generally been overbought and is only dippingslightly to the 70 region. We interpret this as a sign that momentum is still strong. Initial resistance is at S$7.28, the recent high. Then S$8.34, S$8.80 and S$10.00. We recommend taking at least half of profits at S$8.34 and trailing stops tightly. The $10.00 mark is far away and there is only a modest probability of it being hit. Trailing stops will allow investors to take as much as the market offers while taking profit at S$8.34 locks in a healthy amount of profit in the mean time.
Recommended stop loss is at S$6.30. But with now HP reports lower than expected results last night, not too sure now.
Wednesday, May 6, 2009
Venture Corp - due for pullback; immediate support $6.30, strong support near $6.10
Technically, we believe that shares of Venture Corp (Hold, $6.50) are due for a pullback following its run up from $4.13 since mid-March. The reasons are: 1) Valuation – the stock has gone above our research fair value of $6.50. 2) 1 less incentive to buy post ex-dividend – The stock went XD (dividend 50cts) on 30th April. This means that investors who had held onto the stock through the XD date gets to receive a 50cts dividend payout while those who buy now will miss the dividend payout. 3) Taiwan Exchange Index (TWII) hits resistance – Technically, TWII has hit short-term resistance near 6570 yesterday. A 23.6% downward retracement from here should see the index retreating back to 6030. The TWII is a proxy for Asian technology stocks. If TWII pulls back, technology stocks here could also pause for a breather. Technically, we see shares of Venture Corp retreating to $6.30. If this level breaks, expect strong support near $6.10.
Monday, April 13, 2009
Sell Venture, Midas; Buy CSM
Venture Corporation (VMS SP; S$5.49) – SELL
• Its uptrend since February appears to be over after last week’s shooting star pattern. Upside resistance at S$5.84 and S$6.27 is likely to cap gains.
• MACD is still positive but starting to lose momentum. RSI has hooked upwards again, suggesting that there could be a final leg upwards before this uptrend turns and heads lower.
• We would prefer to sell into strength as the shooting star pattern last week would likely induce further selling in the coming days. Support is seen at S$5.23 and S$4.84.
Venture offers high value-added and highly efficient manufacturing services to MNCs using state-of-the-art manufacturing process technology and test development capability. In addition, Venture provides an excellent range of premanufacturing services including design, prototyping and engineering services, as well as post-manufacturing services including after-sales repairs, customisation and fulfillment logistics.
Chartered Semiconductor (CSM SP; S$0.135) – BUY
• Chartered crossed its minor resistance last week and poised to see a tad more upside this week.
• However, looking at its indicators, the stock’s upside appears limited. The MACD is rising but remains in the negative territory while the RSI is also on the rise. A breakout above S$0.145 could see the stock rise up to test S$0.16 next.
• However, if it fails to clear the S$0.145 hurdle, sellers would likely come in droves. Avoid buying aggressively at current levels and keep a tight stop at S$0.12. Support is seen at S$0.125 and S$0.09.
Chartered is one of the world's leading semiconductor foundries. It provides comprehensive wafer fabrication services and technologies to semiconductor suppliers and systems companies.
Midas Holdings (MIDAS SP; S$0.515) – SELL
• Although the stock has broken out of its medium term downtrend channel lately, we are not convinced about the breakout. The candles lately suggest indecision around current levels. Only a close above the S$0.59 resistance would confirm the breakout run is underway.
• Indicators remained positive although there are signs of a slowdown in momentum.
• Investors should do well selling into strength for now, possibly near its resistances at S$0.54 and S$0.59. If the candlesticks fail to hold above the support trend line at S$0.47, expect further selldown towards the next support at S$0.425 and S$0.39.
Midas is a leading manufacturer of aluminium alloy extrusion products and polyethylene pipes, primarily for the transportation and infrastructure sectors in the People's Republic of China.
• Its uptrend since February appears to be over after last week’s shooting star pattern. Upside resistance at S$5.84 and S$6.27 is likely to cap gains.
• MACD is still positive but starting to lose momentum. RSI has hooked upwards again, suggesting that there could be a final leg upwards before this uptrend turns and heads lower.
• We would prefer to sell into strength as the shooting star pattern last week would likely induce further selling in the coming days. Support is seen at S$5.23 and S$4.84.
Venture offers high value-added and highly efficient manufacturing services to MNCs using state-of-the-art manufacturing process technology and test development capability. In addition, Venture provides an excellent range of premanufacturing services including design, prototyping and engineering services, as well as post-manufacturing services including after-sales repairs, customisation and fulfillment logistics.
Chartered Semiconductor (CSM SP; S$0.135) – BUY
• Chartered crossed its minor resistance last week and poised to see a tad more upside this week.
• However, looking at its indicators, the stock’s upside appears limited. The MACD is rising but remains in the negative territory while the RSI is also on the rise. A breakout above S$0.145 could see the stock rise up to test S$0.16 next.
• However, if it fails to clear the S$0.145 hurdle, sellers would likely come in droves. Avoid buying aggressively at current levels and keep a tight stop at S$0.12. Support is seen at S$0.125 and S$0.09.
Chartered is one of the world's leading semiconductor foundries. It provides comprehensive wafer fabrication services and technologies to semiconductor suppliers and systems companies.
Midas Holdings (MIDAS SP; S$0.515) – SELL
• Although the stock has broken out of its medium term downtrend channel lately, we are not convinced about the breakout. The candles lately suggest indecision around current levels. Only a close above the S$0.59 resistance would confirm the breakout run is underway.
• Indicators remained positive although there are signs of a slowdown in momentum.
• Investors should do well selling into strength for now, possibly near its resistances at S$0.54 and S$0.59. If the candlesticks fail to hold above the support trend line at S$0.47, expect further selldown towards the next support at S$0.425 and S$0.39.
Midas is a leading manufacturer of aluminium alloy extrusion products and polyethylene pipes, primarily for the transportation and infrastructure sectors in the People's Republic of China.
Monday, March 30, 2009
Buy Genting, Venture, Jadason Enterprises; Sell Raffles Education, Transcu
Genting International (GIL SP; S$0.53) – BUY
• The stock is still entrenched in a short-term uptrend rally after bottomed out at $0.32. Expect it to test the S$0.56 resistance trend line soon. Its 30-day SMA is likely to play catch-up and this would cushion any shortfall.
• Although MACD is still rising, RSI indicator has turned overbought. The mixed technical readings suggest that volatility could rise over the near term, despite our bullish view on the stock.
• Due to the overbought RSI, we prefer to accumulate at lower levels. Initial support is seen at S$0.49 followed by S$0.465.
Genting International P.L.C., through its subsidiaries, develops real estate properties. The Company also provides sales and marketing services to leisure and hospitality businesses. Genting International provides loyalty card program.
Raffles Education Corp (RLS SP; S$0.39) – SELL
• Still stuck in its medium term downtrend channel. Three previous failed attempts prove that the resistance trend line is strong and likely to cap further gains. A fall below its 30-day SMA is also a bearish sign.
• Technical indicators are showing signs of exhaustion. MACD is poised for a negative crossover while RSI has also hooked down. Support is weak at S$0.35 and S$0.31.
• Investors should do well selling into strength, possibly near its S$0.43 resistance. However, if share prices were to break above the trend line resistance, the technical landscape would totally change.
Raffles Education Corp Ltd provides training programs and courses in various are as of design and management. The Company's education services include fashion design, visual communication, multimedia design, interior design, design management, fashion marketing, and business administration.
Transcu Group (TSCU SP; S$0.235) – SELL
• The stock may have rebounded from its recent low at S$0.095 but we think there is still downside risk. A break below its bearish rising wedge pattern would send the stock lower towards the S$0.195 and S$0.185 supports.
• MACD is losing momentum while RSI is fattish. If RSI turns oversold, it also reflects that buyers are losing steam.
• Continue to take profit on rally as the recent lows may not be the rock-bottom. Resistance is at S$0.24 and S$0.245.
Eng Wah Orgnization Limited changed its name to Transcu Group Limited following the completion of the reverse take over of Transcu Ltd. Trading under the new name with effect from 21 November 2008.
Venture Corporation (VMS SP; S$5.17) – BUY
• Renewed buying interest lifted the stock from its 30-day SMA to test its 38% FR levels. Friday’s breakout suggests that the uptrend may prolong, likely towards the next resistance at S$5.50.
• MACD continues to gain strength while RSI is fast approaching the overbought territory. Price volatility may rise but we are still bullish on the stock. • Prefer to buy on weakness, possibly near its support at S$4.83. Cut losses however if prices fall below S$4.62.
Venture Corporation Limited provides contract manufacturing services to electronics companies worldwide. The Company also provides manufacturing, design, engineering, customization, and logistic services. Venture Corporation trades and manufactures electronics and computer-related products, develops and markets color imaging products for label printing.
Jadason Enterprises (JAD SP; S$0.045) – BUY
• A base building formation is seen on the daily chart. Breaking above its 30-day SMA is positive but investors should always adopt tight stop loss strategy.Resistance is at S$0.05 and S$0.06.
• Technical landscape has improved. MACD is gaining momentum and has penetrated into the positive zone while RSI is neutral at 59.
• Immediate support is at S$0.035. Breaking below its recent lows of S$0.03 would violate all the bullish indicators.
Jadason Enterprises Limited distributes and trades machines and materials for the printed circuit board (PCB) and semiconductor industries. The Company's products include drilling machines, laser plotters, wet processing machines, dry films, drill bits, and laminates. The Company also provides support services for its equipment sale and graphic arts and digital media (G&D) service.
• The stock is still entrenched in a short-term uptrend rally after bottomed out at $0.32. Expect it to test the S$0.56 resistance trend line soon. Its 30-day SMA is likely to play catch-up and this would cushion any shortfall.
• Although MACD is still rising, RSI indicator has turned overbought. The mixed technical readings suggest that volatility could rise over the near term, despite our bullish view on the stock.
• Due to the overbought RSI, we prefer to accumulate at lower levels. Initial support is seen at S$0.49 followed by S$0.465.
Genting International P.L.C., through its subsidiaries, develops real estate properties. The Company also provides sales and marketing services to leisure and hospitality businesses. Genting International provides loyalty card program.
Raffles Education Corp (RLS SP; S$0.39) – SELL
• Still stuck in its medium term downtrend channel. Three previous failed attempts prove that the resistance trend line is strong and likely to cap further gains. A fall below its 30-day SMA is also a bearish sign.
• Technical indicators are showing signs of exhaustion. MACD is poised for a negative crossover while RSI has also hooked down. Support is weak at S$0.35 and S$0.31.
• Investors should do well selling into strength, possibly near its S$0.43 resistance. However, if share prices were to break above the trend line resistance, the technical landscape would totally change.
Raffles Education Corp Ltd provides training programs and courses in various are as of design and management. The Company's education services include fashion design, visual communication, multimedia design, interior design, design management, fashion marketing, and business administration.
Transcu Group (TSCU SP; S$0.235) – SELL
• The stock may have rebounded from its recent low at S$0.095 but we think there is still downside risk. A break below its bearish rising wedge pattern would send the stock lower towards the S$0.195 and S$0.185 supports.
• MACD is losing momentum while RSI is fattish. If RSI turns oversold, it also reflects that buyers are losing steam.
• Continue to take profit on rally as the recent lows may not be the rock-bottom. Resistance is at S$0.24 and S$0.245.
Eng Wah Orgnization Limited changed its name to Transcu Group Limited following the completion of the reverse take over of Transcu Ltd. Trading under the new name with effect from 21 November 2008.
Venture Corporation (VMS SP; S$5.17) – BUY
• Renewed buying interest lifted the stock from its 30-day SMA to test its 38% FR levels. Friday’s breakout suggests that the uptrend may prolong, likely towards the next resistance at S$5.50.
• MACD continues to gain strength while RSI is fast approaching the overbought territory. Price volatility may rise but we are still bullish on the stock. • Prefer to buy on weakness, possibly near its support at S$4.83. Cut losses however if prices fall below S$4.62.
Venture Corporation Limited provides contract manufacturing services to electronics companies worldwide. The Company also provides manufacturing, design, engineering, customization, and logistic services. Venture Corporation trades and manufactures electronics and computer-related products, develops and markets color imaging products for label printing.
Jadason Enterprises (JAD SP; S$0.045) – BUY
• A base building formation is seen on the daily chart. Breaking above its 30-day SMA is positive but investors should always adopt tight stop loss strategy.Resistance is at S$0.05 and S$0.06.
• Technical landscape has improved. MACD is gaining momentum and has penetrated into the positive zone while RSI is neutral at 59.
• Immediate support is at S$0.035. Breaking below its recent lows of S$0.03 would violate all the bullish indicators.
Jadason Enterprises Limited distributes and trades machines and materials for the printed circuit board (PCB) and semiconductor industries. The Company's products include drilling machines, laser plotters, wet processing machines, dry films, drill bits, and laminates. The Company also provides support services for its equipment sale and graphic arts and digital media (G&D) service.
Friday, March 27, 2009
SPC and Venture - buy on pull back
SPC has been running up in a strong uptrend. 30 and 50 moving averages have spread out nicely. There is resistance overhead at S$2.85 to S$2.86.
We anticipate price to test S$2.85 and sell off slightly. A subsequent rally from the sell off would be a good place to enter.
We recommend waiting for the next dip in the stochastics and cross over (red line to cross over blue) for entry. SPC has almost no resistance overhead until S$3.10. We highly recommend shifting stops to breakeven after some profit has been made.
Venture is in a similar situation to SPC. It is in an uptrend, and going to encounter overhead resistance in the S$5.02 to S$5.05 region.
The main plus point here is that the next resistance levels are reasonably far away. S$5.30 and S$5.80.
We recommend buying on the next dip/pull back using a stochastic cross over (same as SPC).
We highly recommend shifting stops to breakeven after some profit has been made.
We anticipate price to test S$2.85 and sell off slightly. A subsequent rally from the sell off would be a good place to enter.
We recommend waiting for the next dip in the stochastics and cross over (red line to cross over blue) for entry. SPC has almost no resistance overhead until S$3.10. We highly recommend shifting stops to breakeven after some profit has been made.
Venture is in a similar situation to SPC. It is in an uptrend, and going to encounter overhead resistance in the S$5.02 to S$5.05 region.
The main plus point here is that the next resistance levels are reasonably far away. S$5.30 and S$5.80.
We recommend buying on the next dip/pull back using a stochastic cross over (same as SPC).
We highly recommend shifting stops to breakeven after some profit has been made.
Friday, March 6, 2009
Venture sharp fall off - two possiblities
Venture’s share price fell 7.7% or $0.37 yesterday to $4.43, pulling back sharply from its post-results rally that had taken it to slightly over $5.
There are two possibilities for the sharp sell-off.
(1) Speculation that Ho Hai / Foxconn is threatening Venture, Calcomp, Flextronics and Jabil’s share of HP’s printer business. HP recently reported a 33% yoy plunge in printer unit shipments in its Jan 2009 quarter. While Venture has increased ODM business with HP(group-wide, ODM business was last reported to be 35% of sales, up from 25% in FY07), its non-ODM business (described as “non-enterprise” printers) with HP could be subject to allocation shifts.
(2) Whichever the case, we reckon the market is also realising that 1H09 will be a very poor period for Venture, as we pointed out in our post-results note, especially 1Q09. We understand that HP orders to Venture have fallen sharply in Jan-Feb, in the region of 20-50% across product lines, in a knee jerk reaction to the fall-off in demand and the build-up of inventory in the channels.
We are in the process of reviewing our forecasts but is likely to retain a Hold recommendation as Venture is already trading close to NTA of $4.07, which we consider to be a reasonably solid support given that it has been stripped of goodwill and the company has already written down almost all of its CDO exposure (balance of only $18.8m).
There are two possibilities for the sharp sell-off.
(1) Speculation that Ho Hai / Foxconn is threatening Venture, Calcomp, Flextronics and Jabil’s share of HP’s printer business. HP recently reported a 33% yoy plunge in printer unit shipments in its Jan 2009 quarter. While Venture has increased ODM business with HP(group-wide, ODM business was last reported to be 35% of sales, up from 25% in FY07), its non-ODM business (described as “non-enterprise” printers) with HP could be subject to allocation shifts.
(2) Whichever the case, we reckon the market is also realising that 1H09 will be a very poor period for Venture, as we pointed out in our post-results note, especially 1Q09. We understand that HP orders to Venture have fallen sharply in Jan-Feb, in the region of 20-50% across product lines, in a knee jerk reaction to the fall-off in demand and the build-up of inventory in the channels.
We are in the process of reviewing our forecasts but is likely to retain a Hold recommendation as Venture is already trading close to NTA of $4.07, which we consider to be a reasonably solid support given that it has been stripped of goodwill and the company has already written down almost all of its CDO exposure (balance of only $18.8m).
Thursday, February 26, 2009
Sell Celestial, Delong; Buy Venture
Celestial Nutrifoods (CENU SP; S$0.17) – SELL
• The stock broke below its October lows of S$0.275 (now the resistance) and continued to fall to current levels. The stock might see some support around the S$0.15-0.16 levels.
• Indicators are weakening but RSI is now oversold. The oversold RSI could prompt a minor rebound soon with resistance at S$0.225.
• Despite the oversold RSI, we expect the stock to continue to edge lower after the rebound. It could even fall to S$0.12 in the longer term.
Celestial NutriFoods Limited manufactures and sells soybean based food products such as soybean beverages, soy protein isolate and soybean oil. The company sells its products under Sun Moon Star brand name.
Delong Holdings (DLNG SP; S$0.59) – SELL
• The stock has fallen from a high of S$3.65 to current levels. It appears to be forming a base but there are no signs that a rally is forthcoming. Sell for now.
• Both MACD and RSI have turned negative again, suggesting that the selling momentum could be picking up once more.
• Resistance is seen at S$0.64 while support is S$0.56. A break below S$0.56 would signal that more downside is likely.
Delong Holdings Limited manufactures and trades in steel. The Company specializes in the manufacture of hot-rolled mid-width steel coils. Through its subsidiary, the Group also invests in resource and other steel-related businesses.
Venture Corp (VMS SP; S$4.82) – BUY
• After failing to breakout above its 30-day SMA in the last 3 months, we expected the stock to fall further. But the bulls had a final say and managed to give it a strong push. The breakout led to a strong rally to current levels.
• Technical indicators have improved suggesting that more upside is likely. However, with the RSI in an overbought position, a pullback is likely.
• Investors could do well accumulating on weakness. Support is at S$4.76 and S$4.42. Get out if the stock falls back below its 30-day SMA. Resistance is at S$5.46.
Venture Corporation Limited provides contract manufacturing services to electronics companies worldwide. The Company also provides manufacturing, design, engineering, customization, and logistic services. Venture Corporation trades and manufactures electronics and computer-related products, develops and markets colour imaging products for label printing.
• The stock broke below its October lows of S$0.275 (now the resistance) and continued to fall to current levels. The stock might see some support around the S$0.15-0.16 levels.
• Indicators are weakening but RSI is now oversold. The oversold RSI could prompt a minor rebound soon with resistance at S$0.225.
• Despite the oversold RSI, we expect the stock to continue to edge lower after the rebound. It could even fall to S$0.12 in the longer term.
Celestial NutriFoods Limited manufactures and sells soybean based food products such as soybean beverages, soy protein isolate and soybean oil. The company sells its products under Sun Moon Star brand name.
Delong Holdings (DLNG SP; S$0.59) – SELL
• The stock has fallen from a high of S$3.65 to current levels. It appears to be forming a base but there are no signs that a rally is forthcoming. Sell for now.
• Both MACD and RSI have turned negative again, suggesting that the selling momentum could be picking up once more.
• Resistance is seen at S$0.64 while support is S$0.56. A break below S$0.56 would signal that more downside is likely.
Delong Holdings Limited manufactures and trades in steel. The Company specializes in the manufacture of hot-rolled mid-width steel coils. Through its subsidiary, the Group also invests in resource and other steel-related businesses.
Venture Corp (VMS SP; S$4.82) – BUY
• After failing to breakout above its 30-day SMA in the last 3 months, we expected the stock to fall further. But the bulls had a final say and managed to give it a strong push. The breakout led to a strong rally to current levels.
• Technical indicators have improved suggesting that more upside is likely. However, with the RSI in an overbought position, a pullback is likely.
• Investors could do well accumulating on weakness. Support is at S$4.76 and S$4.42. Get out if the stock falls back below its 30-day SMA. Resistance is at S$5.46.
Venture Corporation Limited provides contract manufacturing services to electronics companies worldwide. The Company also provides manufacturing, design, engineering, customization, and logistic services. Venture Corporation trades and manufactures electronics and computer-related products, develops and markets colour imaging products for label printing.
Friday, February 20, 2009
SATS underperform; XLX and Venture outperform
China XLX Fertiliser ( CXLX SP, S$0.37)
• China XLX Fertiliser (CXLX) released its FY08 results today. Revenue grew by 35.3% to Rmb2,084.9m yoy however gross margins fell from 27.0% in FY07 to 23.4% in FY08 mainly due to lower margins from urea and methanol sales. Net profit increased by 9.2% to Rmb346.4m in FY08 led by higher average selling prices products such as urea, methanol and compound fertilizer. The company intends to propose a first and final exempt dividend of 1.6 Scts for the financial year ended 31-Dec 2008.
• Share price fell 0.5cts or 1.3% this morning to S$0.37.
• Maintain Outperform with a target price of S$0.47.
Venture Corp (VMS SP, S$4.51)
• Share price surged 9.5% or 39cts to S$4.51 despite a 94% fall in Venture’s quarterly net profit which was mainly attributed to mark-to-market losses. Many brokerages also posted Buy calls for the stock, spurring buying interest. In addition, Venture plans to maintain its dividend of 50cts a share. Due to the volatile nature of the market, we advise investors who are in for the punt to take profit this afternoon.
• Maintain Outperform with a target price of S$6.00.
Singapore Airport Terminal Services (SATS SP, S$1.12)
• SATS announced that it is going to make a mandatory cash offer, to acquire all the issued ordinary shares in the capital of Singapore Food Industries Limited (SFI) other than those already owned, controlled or agreed to be acquired by SATS.
• So far, SATS has reported an 84% acceptance rate.
• Given a rapidly deteriorating aviation industry with airlines continuing to cut capacity, we do not see near-term catalysts for the stock. Exposure to a weakening UK economy through SFI also poses downside risks.
• Maintain Underperform with a target price of S$1.25.
• China XLX Fertiliser (CXLX) released its FY08 results today. Revenue grew by 35.3% to Rmb2,084.9m yoy however gross margins fell from 27.0% in FY07 to 23.4% in FY08 mainly due to lower margins from urea and methanol sales. Net profit increased by 9.2% to Rmb346.4m in FY08 led by higher average selling prices products such as urea, methanol and compound fertilizer. The company intends to propose a first and final exempt dividend of 1.6 Scts for the financial year ended 31-Dec 2008.
• Share price fell 0.5cts or 1.3% this morning to S$0.37.
• Maintain Outperform with a target price of S$0.47.
Venture Corp (VMS SP, S$4.51)
• Share price surged 9.5% or 39cts to S$4.51 despite a 94% fall in Venture’s quarterly net profit which was mainly attributed to mark-to-market losses. Many brokerages also posted Buy calls for the stock, spurring buying interest. In addition, Venture plans to maintain its dividend of 50cts a share. Due to the volatile nature of the market, we advise investors who are in for the punt to take profit this afternoon.
• Maintain Outperform with a target price of S$6.00.
Singapore Airport Terminal Services (SATS SP, S$1.12)
• SATS announced that it is going to make a mandatory cash offer, to acquire all the issued ordinary shares in the capital of Singapore Food Industries Limited (SFI) other than those already owned, controlled or agreed to be acquired by SATS.
• So far, SATS has reported an 84% acceptance rate.
• Given a rapidly deteriorating aviation industry with airlines continuing to cut capacity, we do not see near-term catalysts for the stock. Exposure to a weakening UK economy through SFI also poses downside risks.
• Maintain Underperform with a target price of S$1.25.
Thursday, February 19, 2009
Technically sell OCBC, Venture; Buy Meiban
Technically…
Oversea-Chinese Banking Corp (OCBC SP; S$4.89 – SELL): Breaking below the S$4.80 support level is bearing over the immediate term.
• If it breaks below the S$4.80 support level, sentiment may turn bearish over the immediate term. Next support is much weaker at S$4.65, S$4.41 and S$3.90.
• Technical indicators are showing signs of exhaustion. MACD has confirmed its dead cross and stayed negative while RSI is still flat.
• Sell now ahead of the breakdown. Resistance is seen at S$5.15 and S$5.48 levels. Unless it can cut above these resistances to reverse the short-term bearish trend, any intermittent rebound may not be sustainable.
Meiban Group (MEI SP; S$0.145 – BUY): The breakout could lift the stock towards the S$0.165-S$0.17 resistance next.
• The stock broke out of its consolidation triangle after taking out its resistance at S$0.14.
• Both indicators are still showing positive signs.
• Aggressive investors could buy on weakness but put a stop below the S$0.12 level. The breakout could lift the stock towards the S$0.165-S$0.17 resistance next. Other investors should just stand aside for now.
Venture Corp (VMS SP; S$4.00 – SELL): A breakdown below S$4.00 would likely see the continuation of a longer term downtrend towards the S$3.60-3.65 levels next.
• The stock has broken out above its medium term trend line resistance. However, it is currently trading below the 30-day SMA at S$4.16. The next resistance is at S$4.70.
• MACD is still marginally positive but RSI has hooked downwards. Mixed indicators suggest that it is still in consolidation.
• After failing to close above its 30-day SMA after trying 3 times, suggest that the buying momentum is weak. There should have been a rally after the breakout of its medium term trend line but it appears that there is none forthcoming. A breakdown below S$4.00 would likely see the continuation of a longer term downtrend towards the S$3.60-S$3.65 levels next.
Fundamentally…
Asia-Pacific Strategic Investments (APSI SP; S$0.145 - SELL): APSI reflected a net loss of S$1.8m for 2QFY09 as demand for pre-need burial niches continue to falter. Maintain our Sell recommendation but cut target price to S$0.11 (from S$0.14) based on 2x P/BV.
China Essence Group (CESS SP; S$0.215 – BUY): A muted 3Q with unit sales being offset by ASP decline and margin erosion on higher raw material price. Reducing forecasts to factor in higher potato cost and lower margin. TP raised to S$0.34 as peer CY09 P/BV has moved up to 0.5x from 0.4x previously.
Oversea-Chinese Banking Corp (OCBC SP; S$4.89 – SELL): Breaking below the S$4.80 support level is bearing over the immediate term.
• If it breaks below the S$4.80 support level, sentiment may turn bearish over the immediate term. Next support is much weaker at S$4.65, S$4.41 and S$3.90.
• Technical indicators are showing signs of exhaustion. MACD has confirmed its dead cross and stayed negative while RSI is still flat.
• Sell now ahead of the breakdown. Resistance is seen at S$5.15 and S$5.48 levels. Unless it can cut above these resistances to reverse the short-term bearish trend, any intermittent rebound may not be sustainable.
Meiban Group (MEI SP; S$0.145 – BUY): The breakout could lift the stock towards the S$0.165-S$0.17 resistance next.
• The stock broke out of its consolidation triangle after taking out its resistance at S$0.14.
• Both indicators are still showing positive signs.
• Aggressive investors could buy on weakness but put a stop below the S$0.12 level. The breakout could lift the stock towards the S$0.165-S$0.17 resistance next. Other investors should just stand aside for now.
Venture Corp (VMS SP; S$4.00 – SELL): A breakdown below S$4.00 would likely see the continuation of a longer term downtrend towards the S$3.60-3.65 levels next.
• The stock has broken out above its medium term trend line resistance. However, it is currently trading below the 30-day SMA at S$4.16. The next resistance is at S$4.70.
• MACD is still marginally positive but RSI has hooked downwards. Mixed indicators suggest that it is still in consolidation.
• After failing to close above its 30-day SMA after trying 3 times, suggest that the buying momentum is weak. There should have been a rally after the breakout of its medium term trend line but it appears that there is none forthcoming. A breakdown below S$4.00 would likely see the continuation of a longer term downtrend towards the S$3.60-S$3.65 levels next.
Fundamentally…
Asia-Pacific Strategic Investments (APSI SP; S$0.145 - SELL): APSI reflected a net loss of S$1.8m for 2QFY09 as demand for pre-need burial niches continue to falter. Maintain our Sell recommendation but cut target price to S$0.11 (from S$0.14) based on 2x P/BV.
China Essence Group (CESS SP; S$0.215 – BUY): A muted 3Q with unit sales being offset by ASP decline and margin erosion on higher raw material price. Reducing forecasts to factor in higher potato cost and lower margin. TP raised to S$0.34 as peer CY09 P/BV has moved up to 0.5x from 0.4x previously.
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