| 16/07/2003 Wednesday 06:35 am Friday 6:30 am As the Dow ended a holiday-shortened weak softer, some tailing off may be seen in recent top gainers such as Chartered, Datacraft and Stats. IPO Juken is oversubscribed 300 over times and small issue works in its favor. PE is around 6 times and comparable business is First Engineering. Thursday 6:25 am With Nasdaq surging ahead and Dow ending up more than 100 points, local stocks may follow with Datacraft, Chartered, ST Assembly, Ellipsiz expected to follow the US tech stocks trend. Penny tech stocks which came to life recently may see some gains. Monday 9:45 pm The market entered into a corrective phase as it became apparent that talks of window dressing is purely guesswork and the lack of buying at the close suggest that funds are not eager to "dress" up prices on the last trading day of the first half year. Blue chip tech stock such as Venture made reversal and key supports at 15.80 and 15.20. Allgreen support is at 0.92. IPO Eco water is oversubscribed by a record 563 times. What it tells is that demand for IPO is greater for the public portion that the placement portion. This would suggest that future IPO should allot more than the miserly 10 to 5% of the issue size to the public. Thursday 6:15 am The bad news is that Wall street suffered a minor selloff from the lower-than-expected Fed rate cut of 25 basis point but the good news is that another rate cut is possible in the forseeable future given the bleak FOMC statement on deflation. Over here, Singtel was pressured by a huge placement by KDDI but it was overshadowed by surges in Full Apec and Micro-Mechanics. Today's IPO is Radiance which is an OEM for satellite communications equipment. Issue size is small as in Micro-Mechanics (total 29 mln) and PE is near 6 times. The public portion of the issue is oversubscribed by a huge 207.7 times. The major shareholder is Goldtron which owns 80% of the company. Monday 10:25 pm The market seems to be entering into a corrective mode with reversal pattern formed on big gainers. DBS support after 10.90 lies at 10.60 and 10.20. Datacraft supports are at 0.92 and 0.90. Chartered supports are at 0.88 and 0.86. Water and membrane producers are overbought on RSI. Valuation of Sinomem at 0.79 almost simliar to Hyflux. Federal rsi is also on high end. STI hit wave target at 1523. Supports at 1467 and 1432. Venture has gap at 15.50 attracting. Over in the US, the anticipated Fed rate cut is discounted and weakness may see Dow heading below 9000. 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. 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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