| 10/16/2004 05?:30 pm 10/16/2004 5:30 pm The next IPO Fung Choi is offering 106 mln shares at $0.365 at historical pe of 10 times and market cap of $154 mln. A comparatively same size business China Paper offered 100 mln shares at $0.365 and has market cap of $128 mln at current price of $0.31. Profit after tax for Fung Choi is approx. S$8.28 mln (year 2003) as against China Paper of S$15.5 mln (2003). Another comparative printing company is SNP which has just reported profit after tax at $6.39 mln (estimated for 2004 $8.53 mln)) $8.53 mln and much lower market cap of $93 mln. After this issue, we have Azeus which is a software solutions company which depends largely on the HK govt for its contracts. It is priced at $0.22 and closes on Wednesday 20 Oct. 10/14/2004 6:30 am Starhub performed rather weakly in the face of poor demand for its IPO. Support after 0.91 lies at 0.895. FMR bought another 4 mln HTL shares and although it closed weaker at $1.23, some support could come from this news. Midas, a China company making aluminium and polyethylene extrusion issues 100 mln new shares at $0.355. The construction sector in China is seen to be benefitting from the strong economy and may continue to ride out the boom expected from the 2008 Olympics. With the Dow weak closing down 74 points and Nasdaq relatively muted (down 4 points), the focus may be on situational stocks. Blue chips are in a consolidative pattern on charts. 10/11/2004 8 pm Today was a weaker day for the index stocks with the STI losing 12.31 points. There was a play on selective China stocks with the China PetroTech as the main mover. The company has reported that it is unaware of any reasons not previously announced for the sharp increase in price and volume. Cheong Woh Technologies reported profit after tax for half year 2004 decline by 43% to $2.879 mln. The company produces parts for the hard disk industry. Semcorp Log. proposed sale of Kuehne and Nagel for S$1.3 bln is expected to see interest in it and Semcorp Industries tomorrow. Meanwhile Alantac started trading today and moved within range of $0.235 to $0.275. The next IPO to be traded is StarHub which is offered at $0.95 and trading starts on Wednesday. 10/09/2004 5 pm The Dow and Nasdaq are lower on weaker than expected job numbers and rising oil prices. Chip stocks were down on bearish call from Prudential Equity Group and Stats and CSM fell 1.75% and 3.93% respectively. Recent reports on an improved economy may not have much of an impact on Monday as traders would be looking at situational stocks for trading opportunities. Sale of Horizon shares by Legg Masson Asset mgt (9.2 mln) and by a director (4 mln) could cap the upside for short term. The same reason could apply apply to UTAC which witnessed share sales by Vertex Venture (S Technology has deemed interest in this sale) of 8.13 mln UTAC shares. Next week could see robust tradinf in IPOs of which Alantac is the first to take off. It is offered at $0.21 a piece and the public issue is oversubscribed by 207 times. The number is not surprising given the very small portion alloted to the public and also the fact that it is priced just one cent above the minimum price for IPOs. Still, the issue is expected to be above water as market appetite for IPOs have been whetted by the strong performance of Pharmesis. The next issues after Alantac is Beng Kuang Marine and then Fung Choi Printing and Packaging. Beng Kuang is in marine hull corrosion treatment, structural enginnering for ship buidling and supply of parts and equipment to the offshore oil and gas sector. The issue size is 21 mln (small) and priced at $0.23 at pe of 9.5 times. Profit after tax (2003) is S$2.42 mln and market cap (116 mln shares) is S$26.73 mln. Fung Choi is into printing and packaging and offers 106 mln shares (fairly large issue). PAT is approx. S$8 mln and PE (2003) is about 14 times. Market cap is approx. $155 mln (424 mln shares). Previous commentaries DISCLAIMER This is a free site and all views expressed here are not an inducement to trade or invest. The reader should be aware that investment and share trading have inherent risks and the author shall not be responsible for gains or losses incurred whatsoever. |
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