| 25/11/2002 Monday 09:30 pm Tuesday 8:00 pm The market retreated on profit-taking and shows sign of correcting lower. TR Networks will be listed tomorrow and with oversubscription rate of 27 times, expect a firm opening. Priced at 0.20, the PE is 9.8 times and it compares well with competitors which have PE from 16-32 times. The company is into marketing of beauty and health products and profit margain is an amazing 41% and compounded annual growth of 117%. The next IPO is M1 and this is priced at $1.32 which is at the lower end of scale. Yield remains attractive at 4.5%. Watch this space for detailed analysis. Monday 9:30 pm We had a pretty good start for the week as the market is convinced that this week is likely to be a better week for Wall Street. Historically, the US markets ended up on more occasions on thanksgiving week and this time it looks like tradition will be maintained. Datacraft and ST Assembly made good runs and could rise further over the medium term as there are chart reversal patterns. M1 IPO gets underway and although there could be a slack in retail interest due to pricing, the projected better than expected institutional support could ensure that the IPO is a success. M1 may come in near $1.35 which gives it a PE around 10 times. The company is very well managed and has shown good growth in earnings for the past 3 years. Yield from dividend payout is expected near 4.5% and this could act as a buffer for the downside. On the medium term outlook, the company has a healthy balance sheet with capital expenditure well in place with the next big spending on its 3G infrastructure which could be funded from internal sources. Sunday 17/11 The Dow recorded 6/6 and that is something unusual for a market that had seen prices falling like ten pins since May 2001. The week ahead in Wall Street is expected to be driven by geo-political rather than economic events. Figures to be released next week such as CPI, housing starts are not earth-shaking by tradition and the focus could be on developments in the Middle-East and the progress of the UN weapons inspection team when they move into Baghdad. Over here, the focus could be on IPOs with the first listing after several montsh of drought - A-REIT. This is a proxy to the bond market as price is determined largely by the yield and the quality of the security. With yield at 8% at the price of $0.88, this reit could attract European and US funds looking for alternative investments to shift their funds from the falling yield of their securities. This is made more so with the latest Fed rate cut. Previous commentaries |
| Tanker's Elliott Wave Free Site |
|
| Free E-Mails are sent to those on mailing list. For those who are interested to be on mailing list, please provide full name, age and occupation to tanker333@hotmail.com |