Singtel share price in devastating bloodbath

Sign up for only $19.99! In my previous article “Singtel share price in nuclear meltdown”, I predicted that Singtel share price will collapse upon the announcement of a dividend cut. Indeed, Singtel share price plummeted upon the release of full-year financial result for FY2020 which saw full-year dividend being reduced to 12.25 cents. This is the lowest dividend since FY2005.

Singtel share price

Singtel share price to swim or sink with coronavirus?

Singtel share price in double trouble

Singtel share price faces disaster

Many analysts may argue that it is the poor financial performance that wrecked Singtel share price. To this end, I do not disagree. Group revenue declined 5% while net profit crashed 65% year-on-year. However, most of the shareholders of Singtel are long-term investors and I honestly doubt that they are spooked by the financial result. It should be the massive cut in dividend that scared the living daylight out of investors.

Year-to-date, Singtel share price had tanked 27%. In fact, Singtel share price has crossed my previous target entry price of $2.60. At this moment, it is too early to tell if it is going to be light at end of tunnel for Singtel share price anytime soon. Nevertheless, at current trading momentum, this counter could test the low of $2.28 seen on 23 March 2020. That was the fateful day in which most, if not all, SGX crashed due to maximum fear induced by COVID-19 pandemic.

If Singtel share price does breach the support level of $2.28, expect all hell to break loose for this leading light of SGX. Under such circumstances, it may not be a bad thing for long-term investors seeking to accumulate this blue chip on the cheap. In this article, I will attempt to analyse the outlook for Singtel in FY2021.

Note that …

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StarHub share price losing in telco war

Sign up for only $19.99! It seems that StarHub share price had lost its way. The fierce telco war has walloped this counter left, right and centre. Since my last coverage on this counter, StarHub share price bottomed out to reach a low of $1.30 in October 2019. Subsequently, the stock went on a fine run to hit a high of $1.55 on 27 February 2020. However, the COVID-19 pandemic came along and sent Starhub share price plunging into the abyss yet again.

StarHub share price crashed into wall

StarHub share price in last tango?

StarHub share price to face $282 million baptism of fire

StarHub share price

Indeed, investing in StarHub is no fun. This counter used to be the brightest star among the SGX stocks with its strong dividend track record and rising share price. As a matter of fact, StarHub share price was still trading at the $4.00 bandwidth in 2015. No one could have predicted that the entry of TPG Telecom in 2016 could change the destiny of StarHub so much.

In my point of view, StarHub share price is slightly undervalued at the moment. Assuming the full-year net profit is $160 million, the EPS should be $0.09. With a PE ratio of 16, the fair value of StarHub is estimated to be $1.44. At the point of writing, StarHub was trading at $1.38. Of course, for a growth stock, PE of 16 is considered to be conservative. The main concern is whether StarHub can hit $160 million of net profit for FY2020.

Net income for StarHub plunged from $372 million in FY2015 to an abysmal $186 million in FY2019. Against such backdrop, it is no wonder that StarHub share price suffers from a crisis of confidence among investors. Question now is: will a potential merger with M1 be …

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AEM share price to sink or swim with Huawei ban?

Sign up for only $19.99! The recent explosive bull run of AEM share price had led to a flurry of target price upgrades by various analysts. The surging form of AEM share price was attributed to the stellar first quarter business results that saw the company hitting a record revenue of $146.8 million and net profit of $36.1 million.

Indeed, the rate of ascend of AEM share price is so breath-taking that investors must be pinching themselves to check it is for real. Is this form even sustainable against the backdrop of COVID-19 pandemic and rising tension between US and China? Will the unfolding trade war between US and China throws a spanner in the works for AEM share price?

AEM share price

To be sure, the recent US rule to ban Huawei Technologies’ access to non-US chipmakers will have some impact on AEM share price. But make no mistake, this is actually the second phase of the trade war concerning export control on Huawei.

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AEM share price in explosive bull run!

In May 2019, US banned US chipmakers from selling equipment to Huawei. Intel was one of the companies hit by that move. Huawei, being the world’s largest telecommunication equipment company, reportedly spent a whopping USD11 billion on Intel, Qualcomm and Micron Technology. Given that Intel is purportedly AEM’s biggest client, AEM share price was badly affected back in 2019. AEM share price rolled off the cliff, from $1.15 in May 2019 to $0.85 in June 2019. However, that development was in 2019 and current AEM share price should have factored in that event.

Fast forward to May 2020, US is restricting export control to Huawei. This time round, the ban centred around Huawei’s access to non-US chipmakers. Admittedly, this ruling will have …

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SIA share price smashed into rock

Sign up for only $19.99! Our national carrier is in trouble. The devastating COVID-19 pandemic had decapacitated its fleets, resulting in SIA recording a full-year net loss of $212 million. This is the first ever full-year financial loss in the course of the carrier’s 48 years of operating history. Against this backdrop, all hell break loose for SIA share price. The announcement of the financial result also coincided with the recent mega rights exercise. These factors combined to cause SIA share price to roil to no end.

SIA share price in darkest chapter

SIA share price faces brutal meltdown

SIA share price to rock or melt with Special Share?

SIA share price crashed into wall

SIA share price nearing 20-year low

SIA share price in crisis mode

In my humble opinion, the trouble for SIA share price is not in the rights issue itself but rather the pricing of the rights. At $3.00, the rights represented a massive discount of 53.8% to the last traded SIA share price of $6.50 on 25 March 2020. Evidently, the rationale for such massive discount is to make the rights issue as appealing as possible to retail investors. But in doing so, many retail investors must be riled as many of them might have entered this counter at around $9 to $10.

SIA share price

To make matters worse, SIA share price is currently trading at $3.66, which is below the theoretical ex-rights price of $4.40. Is this the beginning of the end of SIA share price and should investors run for their lives? This is a difficult question to answer. For sure, Temasek Holdings will fight to the very end for SIA share price but given the uncertain economic outlook, nobody can be sure when SIA share price will hit bottom. And investors hate throwing …

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AEM share price to hit $50 on listing in NASDAQ?

Sign up for only $19.99! Will AEM become another legendary fairy-tale in SGX? Amid the bearish market outlook caused by the devastating COVID-19 outbreak, AEM share price defied gravity to smash a record high of $3.37 on 11 May 2020. To illustrate how powerful the rally is: AEM share price stormed from $1.37 on 19 March 2020 to a crazy high of $3.37. This means that AEM share price soared nearly 250% within the span of two months!

AEM share price

In life, what goes up must surely comes down. After reaching the giddy height of $3.37, AEM share price subsequently pulled back to reach the $3.10 price level. Such correction is healthy and should not be seen as beginning of the end for AEM share price. What ignited the surging bull run was largely due to the solid first quarter business results that saw the company hitting a record revenue of $146.8 million and net profit of $36.1 million. Will AEM share price continue its magical run in the face of the market downturn?

AEM share price in explosive bull run!

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Beyond the stellar financial results, a potential major catalyst may propel AEM share price to the next stage. And that is a dual listing in United States’ NASDAQ. Investors would definitely agree with me that for technology stocks, NASDAQ is the holy-grail.

In my opinion, the end-game for AEM share price is not SGX, but actually NASDAQ. This is because its major customer, widely rumoured to be Intel, is a dominant force in the NASDAQ. With such tremendous potential, the Singapore stock market is definitely far too small for AEM to fulfil its destiny.

As far as I could remember, the last home-grown listed …

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UOB share price to sink or swim with COVID-19?

Sign up for only $19.99! Sometimes, reality defies logic. By right, bank stocks should have crashed with the onset of the COVID-19 pandemic and the unfolding oil crisis. But DBS, OCBC and UOB share price had been quite resilient amid the unprecedented economic challenges. Bank counters had not collapsed like what they did during the Global Financial Crisis in 2008. Perhaps the massive stimulus packages by US Federal Reserves had helped to restore market confidence. Where will UOB share price go from here?

UOB share price

In terms of first quarter financial results, UOB lost out to DBS but managed to beat OCBC comprehensively. Net earnings amounted to $855 million, a decline of 19% as compared to Q1FY2019. Overall, UOB’s decline was much better than DBS (-29%) and OCBC (-43%). Despite so, the outlook for UOB share price looks pretty grim as the bank navigates through the storm.

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UOB share price hammered by coronavirus

UOB share price in royal rumble with DBS and OCBC

UOB share price fought back after bizarre plunge

Total income for UOB remained stable at $2.41 billion even though interest rates had plummeted to abysmal levels. Non-performing loan ratio also remained stable at 1.6%. Balance sheet remained strong with CET-1 at 14.1%. By and large, it was a decent 1st quarter performance given the severity of the economic harm caused by the COVID-19 pandemic. Question now is: will it get any worse for UOB share price going forward?

At the point of writing, UOB share price was being traded at Price/Book Value of 0.83 and P/E of just 7.75%. This was indeed a very attractive level. The past few months must feel like a nightmare as UOB share price reached a low of $17.60 on 23 March 2020. The massive stimulus …

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OCBC share price in horror show

Sign up for only $19.99! Will OCBC share price sink or swim? On 8 May 2020, OCBC announced a set of poor Q1 FY2020 business update that saw the number 2 bank in Singapore recording the worst financial performance among the three local banks. While COVID-19 pandemic had been cited by OCBC CEO as the culprit for the subpar performance, investors must be wondering how on earth did OCBC manage to fare so badly against the other two banks.

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OCBC share price

On a year-on-year basis, net profit plunged 43% to reach an abysmal $698 million. This is the lowest as compared to DBS ($1.17 billion) and UOB ($855 million). OCBC’s decline was also the biggest among the three local banks. Against this backdrop, OCBC share price should be sluggish for the foreseeable future.

Upon examining the business update, I noted two factors that led to the steep decline in net profit. First, contributions from Great Eastern Holdings collapsed 94% to reach a low of $18 million, vis-à-vis the $290 million profit contribution seen in Q1FY2019. Another factor was the huge spike of $370 million for allowances of non-impaired assets. The saving grace for OCBC share price was that its bread-and-butter, the net interest income, increased 6% to $1.63 billion.

What can float a boat can also sink it. While Great Eastern Holdings had provided OCBC an unassailable edge over DBS and UOB for decades, the volatile financial performances of the insurance company had wrecked OCBC share price in recent years.

The latest business update was certainly a bad start for OCBC bank and investors should brace themselves for more bad news …

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AEM share price in explosive bull run!

Sign up for only $19.99! Is the sky the limit for AEM share price? Amid the COVID-19 outbreak, the technology sector is going through an up-cycle due to surging demand for electronic products as many people are forced to work from home. AEM share price is one of the beneficiaries of the sector rally and is currently enjoying a superb bull run.

Through the years, I had covered a number of SGX-listed technology companies in this blog. So far, I had been hesitant to cover AEM share price because of my lack of understanding of the semiconductor industry. This industry is notorious for having an extremely short lifespan and trying to analyse companies operating in this segment on a long-term basis is always challenging. In this article, I will share my views on whether the red-hot form of AEM share price is sustainable.

AEM share price

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As a matter of fact, AEM share price is now trading at record high of $2.60. This counter used to trade at the $6.00 bandwidth. Following the bonus issue of three-for-one shares exercise in March 2018, AEM share price fell off the cliff. But if investors had kept faith with the management, they would be laughing their way to the bank now.

Indeed, the explosive surge of AEM share price had also caught the eyes of the big boys and led to them increasing their stakes in the semiconductor handling solutions service provider. On 6 April 2020, Mitsubishi UFJ Financial Group increased its stake in AEM from 5.7% to 6.4%. The buoyant performance of AEM share price was in part due to the recent announcement of a set of stellar first quarter FY2020 financial report.

Another factor for the raging form …

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DBS Bank net profit plunged 29%

Sign up for only $19.99! Is this the beginning of the end for Singapore banks? The circuit-breaker implemented by Singapore government had caused the economy to come to a grinding halt. On 30 April 2020, DBS Bank announced business update for 1st quarter (SGX had scrapped mandatory quarterly reporting). Being the leading light of SGX, the financial performance of DBS Bank is often scrutinized. This is especially so in current climate as investors are looking for clues on the impact of COVID-19 pandemic on the banking sector.

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Initial assessment of the financial performance of DBS Bank is that the results are not as grim as many investors had feared. Total income grew 13% from a year ago to a new high of $4.03 billion but net profit had collapsed 29% to $1.17 billion. The lower profit was due to increased allowances of $0.7 billion to cater for risks due to the pandemic.

DBS Bank

Of course, it is still early days to claim that DBS Bank is out of the woods but the financial performance was resilient in light of the unprecedented damage to the economy. It was quite surprising that Net interest margin (NIM) was stable from the previous quarter at 1.86%. As US Federal Reserve had slashed interest to near zero rates in March, I was expecting DBS Bank’s NIM to drop but it didn’t. The reason given by the bank was that the current NIM does not reflect the recent interest rate cut. The effect would only be felt in 2Q.

Interestingly, net interest income increased 7% from last year to $2.48 billion. …

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