| 06/22/2003 Sunday 08:35 am Sunday 8:35 am This week, the major event is the FOMC meeting and all bets are on for a rate cut. The issue is not whether the Fed would cut but by how much. With deflation staring at its doorstep, the bet is for a 50 basis point rate cut. The next IPO is Allied Tech and the issue comes at $0.26 and is oversubscribed by 57 times which indicates a healthy demand for its stock. Its competitors are Seksun (price $0.78), Amtex (price $0.990 and Miyoshi (price $0.135). Historical pe is 5.5 times which is comparable to its competitors. Revenue for y2002 is $121mln and Profit After tax is $13.3 mln. Friday 06/20 6:00 am With the surge past 1500 on the STI, more gains are possible for blue chips and heavy weight tech stocks for the near term. Property stocks may stay firm on buying interest in real properties and strong response to recent new launches. The next IPO is Full Apex which is a PET bottle manufacturer and packaging company. Its issue size is 197 mln shares and comes at pe of 9.6 times which is favorable to rivals which are listed in China whose pe are nearer 23 times. This is a proxy play to Coke and Pepsi. Priced at 0.43, it has attracted strong institutional demand at the placement. The public issue is 11 times oversubscribed. Wednesday 06/04 8:05 pm Strong reaction to the gains in Wall Street saw big moves in Creative and some heavy weight tech shares. ACCS surged at opening in anticipation of new orders. Property stocks such as Allgreen hit 5 month high and could see barriers at $1.00. Telco stocks made strong gains with Singtel and TAC leading the pack. TAC wave analysis suggest current phase is impulsive wave 3. Targets are 1.00, 1.06 and 1.17. There are interest in food stocks as the market pre-empts a bullish response to the next IPO BreadTalk. Tomorrow's IPO is Hong Guo which is a lady's shoe maker. With an overwhelming 122 times oversubscribed plus the fact that 6 funds took up large chunks of the placement issue, the opening could see strong response. The issue is at $0.20 and pe is around 6.2 times (historical/pre-IPO). Market cap is $72 mln and profit before tax at $9 mln-y2002. Tuesday 06/03 7:35 pm There were selling on concern that profit-taking in Wall street may continue for one more session. The key reversal in Nasdaq and fears of a sharp fall in IBM which is a target of a SEC probe nailed the bulls and selling in Chartered and Datacraft spread to other tech stocks. There were some bright spark such as Mediaring, Capitaland and City Devt. Sunday 06/01 5:25 pm The Dow and Nasdaq surges on Friday at the back of strong Chicago PMI report and an uplifting Michigan sentiments index. These are positive signs and may serve to signal that the US economy may be out of danger of an impending depression and stagflation. This may lift stock prices higher for the near term. We could see a surge in the market on Monday as the news of Singapore coming out of WHO's list of SARS countries would surely lend sentiments a huge boost. SIA and travel related stocks may gain and penny stocks which have not seen daylight for years such as ASP Net, Jadason, Mediaring etc could see some interest. Most blue chips such as banks and property shares may see renewed interest as well. Thursday 05/22 7:30 pm The market closed on a strong footing with the play on telco stocks such as TAC, Singtel and to a lesser extent M1. Tonight's US market would be watching the job numbers and a number around 420,000 for the week ending May 17 is projected by US analysts. The watch word is stagflation and Alan Greenspan once again show concern of a slow build-up in deflationary forces. This could imply weaker spending and in the process result in lower consumer confidence. Over the next few weeks, more company results would be released and sporadic knee-jerk reactions can be expected. 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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