Accordia Golf Trust share price in final fantasy?

Sign up for only $19.99! Should investors of Accordia Golf Trust run for their lives or fight to their very end by blocking the upcoming assets divestment deal? On 29 June, the trust announced that it is selling its 88 golf courses for $804.1 million. And then on 7 August, the trust came back with a revised offer of $848.4 million. The announcements sent Accordia Golf Trust share price to hit a three-year high.

Accordia Golf Trust share price

Accordia Golf Trust debut in SGX mainboard only in 2014. So the divestment announcement should come as a shock to many investors as it is proposed that trust to be wind up after the divestment of the golf assets. Nevertheless, the proposed divestment did help to lift Accordia Golf Trust share price from $0.44 on 19 March to the recent $0.74.

The total distributions issued amounted to 31.42 cents. So for those who had held the units till now, the returns would have been quite decent. But I would not say that this counter is an ideal dividend play because Accordia Golf Trust share price has been pretty volatile in recent years.

As a matter of fact, it appears to me that Accordia Golf Trust is capable of self-imploding. This was what happened back in 2018 when Goldman Sachs sold its stake in late 2018, causing Accordia Golf Trust share price to plunge to a low of $0.50. Given the volatility of Accordia Golf Trust share price, expect the stock to bomb out if the divestment deal did not go through.

But let’s be clear: this is not a done deal yet. 14 September 2020 will be destiny day as shareholders will convene at the EGM to vote for or against the deal. Note that the proposed divestment will go through only if at least 50%

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AEM share price ready for Nasdaq listing?

Sign up for only $19.99!It’s a major coup. On 24 August 2020, AEM Holdings appointed Samer Kabbani as Chief Technology Officer (CTO). Amid the global downturn due to the fallout from COVID-19 pandemic, many companies are downsizing and retrenching staff. AEM bucks the trend to continue its aggressive expansion. Investors reacted well to the news and gave AEM share price yet another short-lived lift.

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AEM share price

The appointment of the CTO has heightened investors’ hopes of a Nasdaq dual listing, which is widely deemed as the holy-grail for AEM share price. While it is not a requirement for companies seeking listing in Nasdaq to appoint a CTO, applicants are required to appoint a Chief Financial Officer (CFO). Thus, the appointment of Ms Leong Sook Han as AEM’s CFO on 9 June 2020 could be a move to comply with a potential Nasdaq listing.

The appointment of the CTO is an interesting one though as Mr Kabbani held senior positions in AEM’s overseas competitors – Advantest, Astronics Test Systems and Cohu. Furthermore, Mr Kabbani holds more than 20 patents in semiconductor processes. To be able to attract such high-calibre talent is a testament on the strength of AEM Holdings. No wonder AEM share price jumped from $4.06 on 21 August to $4.22 on 24 August.

The reason why AEM share price managed to leap frog from its Singapore peers – UMS, Frencken and Micro-Mechanics – is because the company holds a patent for one of the processes used in its blockbuster product, High Density Modular Test (HDMT). Based on my understanding, it is very rare in Singapore that …

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Gold price at turning point?

Is this the right time to buy gold? In August, gold price suffered one of the worst sell-downs in recent years when it fell from USD2055 per troy ounce on 7 August 2020 to USD1885 on 12 August 2020. Subsequently, gold price recovered to the USD1940 bandwidth in the following two weeks. What had caused the pull-back in gold price in early August?

Gold price smashed to record high

Year-to-date, gold price has surged by a whopping 28%. So the current correction in gold price may represent a good window of opportunity for wealth builders to buy bullion or bullion savings programs before gold price soars again. To put things into perspective, much of the increase in gold price in 2020 is attributed to the monetary stimulus measures introduced by US government in March 2020. The recent plunge in gold price in August is also largely due to the US monetary stimulus, or the lack of it in August 2020.

gold price

Against the backdrop of economy slow-down caused by COVID-19 pandemic, gold price has been in buoyant form in 2020 because the precious metal is viewed as a safe haven. So the recent correction in gold price must have confounded many wealth builders. Is this the burst of a bubble or just a healthy correction for gold price?

Gold price in golden form

In my view, there is still plenty of room for gold price to continue rising. Many countries had encountered second wave of COVID-19 infections after reopening their economies. So it would likely take at least another year or so before global economy returns to pre COVID-19 levels. Even so, this is based on the premise that a vaccine is developed by end of this year.

Due to the devastating economy harm caused by COVID-19 pandemic, the US Federal …

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Singtel share price braces for bloodbath

Sign up for only $19.99! Is this the beginning of the end for Singtel share price? Following the release of a set of terrible 1Q results, Singtel share price seems set for another roller coaster ride. In my previous article, I wrote that I had feared the worst for Singtel share price, citing this counter as vulnerable target for short-sellers. On the basis of the current Singtel share price, I think my concerns had been valid.

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Singtel share price

Many investors argued that the best chance for accumulation of blue chips is when the counter sinks into the rock bottom. To this end, I do not disagree but is it really the right time to enter Singtel? You certainly don’t want to catch a falling knife. Also, you don’t want to clash with the big boys when they are shorting Singtel share price.

Data do not lie. In 2019, Singtel share price declined from $3.60 in July to $3.15 in August. In 2018, this counter fell from $3.30 in July to a low of $2.80 by end of the year. On 28 July 2017, SingTel share price collapsed from $4.00 to reach $3.68 in September 2017. Prior to that, SingTel share price fell from a high of $4.30 on 22 July 2016 to a bottom low of $3.65 on 31 December 2016.

The year 2015 was another horror ride for shareholders as the correction was even worse – falling from a giddy high of $4.34 on 24 July 2015 to reach a mind-boggling low of $3.56 in October 2015.

Based on the above trend and the current business fundamentals of …

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Sembcorp Industries share price to hit $5 after demerger?

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For the longest time, I hold back writing about the impact of the demerger to Sembcorp Industries (SCI) share price because you never know if the shareholders would do a “Keppel”. Now that 99% of the shareholders had voted for the demerger, I think it is time opportune to pen down the potential long-term impacts on Sembcorp Industries share price.

Hyflux to sink or swim with Sembcorp Industries?

Sembcorp Industries Ltd

When the $2.1 billion recapitalization of Sembcorp Marine was announced on 8 June 2020, I can imagine long-term investors of Sembcorp Industries being overwhelmed with emotions. I can certainly relate to their agony. Indeed, investing in this counter is no fun. Sembcorp Industries share price used to trade at $5.50 in 2014. Then the oil slump of 2015-16 came along to mess things up for its marine subsidiary, Sembcorp Marine (SCM). Consequently, Sembcorp Industries share price got walloped left, right and centre.

Sembcorp Industries share price

The devastating COVID-19 and the collapse of oil prices have led many to view SCM as a fast sinking ship. Prior to 2020, SCM had dragged down SCI’s financial performances for years because of the ailing oil and gas sector. This resulted in SCM borrowing $2 billion of subordinated loan from SCI in June 2019. The latest development should enable Sembcorp Industries share price to see light at end of tunnel as the debt levels will be significantly reduced and the proposed demerger will lead to increase in strategic focus.

On 18 August 2020, PUB and Sembcorp Industries announced the commencement of construction of the 60 megawatt-peak (MWp) floating solar photovoltaic (PV) system on Tengeh Reservoir. Then on 17 August 2020, Sembcorp Industries announced its first integrated urban development in Myanmar. These strategic projects would likely to lead to increasing Sembcorp Industries …

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OCBC share price ambushed by MAS

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Will OCBC share price see daylight? The COVID-19 pandemic has upended the entire world and causes Singapore economy to shrink by a whopping 13.2 percent for 2nd quarter on a year-on-year basis. Given that bank stocks are highly sensitive to economy condition, OCBC share price is expected to face a bitter winter ahead.

OCBC share price

With the highest Common Equity Tier 1 among the three local banks, OCBC continues to be the strongest Singapore bank. It is this trait that gives me the conviction in OCBC share price. But whether the management can leverage on this position of strength amid the pandemic crisis is a big question mark.

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To further complicate matters for OCBC share price, the Monetary Authority of Singapore (MAS) implemented a series of measures to ensure the financial stability of the local banks. One of the key measures implemented in April 2020 was the restriction of shares buybacks in exchange for the loosening of some capital requirements.

Among the three local banks, OCBC is considered the most aggressive when it comes to shares buybacks in recent years. The aim of shares buybacks is not really to prop up OCBC share price for shareholders’ benefits. Rather, it is a strategy to enhance the Return on Equity (ROE) – a key metric for management’s performance. Looking back, ROE has steadily increased from 9.5% in FY2016 to 10.8% in FY2019.

Obviously, from a shareholder’s perspective, shares buybacks are good because they help to provide support for OCBC share price. In fact, the last shares buyback done …

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AEM share price swims or sinks with Intel lawsuit?

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Crisis? What crisis? Following the Intel fiasco, AEM share price shrugged off all talks of impending crisis by staging a magnificent comeback after the announcement of a set of stellar 1HFY2020 financial results. But before AEM investors get carried away, dark clouds loom ahead that may derail AEM share price.

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AEM share price

On 28 July 2020, it was reported that a group of US investors had filed a lawsuit against Intel for “failing to disclose material adverse facts about the company’s business”. The lawsuit alleged Intel for failing to disclose to shareholders that Intel had identified the defect mode in the 7-nm chip, resulting in the yield degradation. One member is concerned enough to write in and sought my views on whether the Intel lawsuit could affect AEM share price.

Evidently, the Intel lawsuit spooked the hell out of major shareholders. Aberdeen, UBS and largest shareholder, James Toh all pared down their stakes within the span of two weeks. Subsequently, UBS increased its stake to return as substantial shareholder on 6 August 2020, presumably due to the realization that the sell-offs were knee-jerk reactions. Nevertheless, the sell-downs by the big boys had temporarily halted the bull run of AEM share price.

In my opinion, the Intel lawsuit may have adverse publicity for the US chipmaker and could lead to more volatility ahead for Intel share price. But there is no trending evidence to suggest …

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DBS Group Holdings share price & Piyush Gupta

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Will CEO Piyush Gupta come to the rescue of DBS Group Holdings share price? During the 2014 oil crisis, DBS Group Holdings share price had collapsed 36% to reach a bottom of $13.60. In 2016, CEO Piyush Gupta had bought the company shares at around the price range of $13.90. From the day he bought DBS shares, this counter went on a rampage to hit a record $30 in April 2018.

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DBS Group Holdings share price

The entry of Piyush Gupta would provide the perfect buying signal for DBS Group Holdings share price. But the current crisis is entirely different as COVID-19 pandemic presents a formidable challenge. To make things even more complicated for DBS Group Holdings share price, the banking sector is hit by a slew of Monetary Authority of Singapore (MAS) measures.

On 18 July 2020, I wrote an article on DBS Group Holdings share price stating that the counter would hover between $21 and $23. I even commented that DBS Group Holdings share price is unlikely to drop below the $20 support level. It turns out that my analysis has been upended by MAS.

On 29 July 2020, the MAS dropped the bombshell of capping banks’ dividends for FY2020 at 60% of last year. That announcement really knocked the wind out of DBS Group Holdings share price, which dropped to the level below $20 for the whole of last week. The bearish form of DBS Group Holdings share price was due to fund houses fleeing from this counter.

In the week …

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AEM share price worth $10?

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It’s official. AEM’s market capitalization raced past the $1 billion mark after AEM share price stormed past $4.00 following the release of a stellar 1HFY2020 result. Question now is: will AEM share price hit $5.00 in the coming days? This is the stock price that would take the market capitalization of AEM to USD1 billion, a level that would pave the way for a Nasdaq listing. Is this stock worth $10 in the long-run?

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The comeback of AEM share price is certainly impressive as it came on the back of the epic Intel fiasco. The US chip maker had recently announced a six-month delay in its 7-nm chips. That news knocked the wind out of AEM share price, which plunged as much as 7% the following day. But damage control is made as management announced an upward revenue guidance to be in the range between $460 million to $480 million.

AEM share price

Given that AEM had previously guided on 6 May 2020 that revenue would be $430 million to $445 million, the latest revenue guidance suggested that the Intel fallout had been contained, presumably due to the latest acquisition. It should also be noted that the May 2020 revenue guidance had set AEM share price on fire. On this basis, I foresee AEM share price to hit $5.50 in the coming days.

Despite the bullish form of AEM share price, it has not been a bed of rose for investors in the …

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StarHub share price in dangerous mood

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On 27 July 2020, StarHub announced the abrupt retirement of its CEO Peter Kaliaropoulos. The bombshell revelation is likely to add more pressure on StarHub share price in the coming weeks. The CEO’s sudden departure also coincides with the period of time in which the telco is about to announce the 1HFY2020 results (7 August 2020). In view of this, many investors can’t help but fear the worst for StarHub share price.

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Peter Kaliaropoulos was appointed as StarHub CEO in July 2008. During his tenure, StarHub share price had never crossed the $2.00 mark. Instead, the past two years saw StarHub share price on a path of destruction. Currently, StarHub share price has slumped to an abysmal $1.25, a shadow of its former self when it was trading as high as $4.00 in 2016. In view of this, should shareholders short StarHub share price to hedge their investments?

StarHub share price

To be fair to Peter Kaliaropoulos, he did try his best to revive the fortunes of the ailing telco through digital transformation, cost-cutting measures and identifying growth opportunities. In fact, I am inclined to think that Peter had been brought in to cull the headcounts of StarHub. Shortly after his appointment, StarHub announced retrenchment of 300 staff. Consequently, StarHub share price surged to $2.00 on 5 October 2018.

But the “feel good” sentiments for StarHub share price quickly evaporated as reality started to sink in. The business fundamentals had not changed. Full-year revenue and profits for FY2018 and FY2019 continued to decline. The turning point for StarHub share price must be the exit from the prestigious Straits Times Index …

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