Month: August 2021

LIFETIME MEMBERSHIP What an ambush! It seems to me that the big boys had staged a sneaky ambush on OCBC share price (SGX: O39). From a high of $12.46 on 10 August, OCBC share price collapsed by 7.3% to reach a low of $11.55 on 27 August. The spectacular fall of OCBC share price within the span of two weeks certainly caught many investors by surprise. To make matters worse, the correction of OCBC share price was the worst among the three banks (DBS shares fell by 5.0% while UOB shares fell by 4.7%).

Looking back, the lifting of dividend restrictions by the Monetary Authority of Singapore (MAS) had provided plenty of fireworks for all three bank stocks, including OCBC share price. Subsequently, the OCBC’ stellar 1HFY2021 financial result pushed OCBC share price to a high of $12.46. Then again, Man proposes, God disposes. Despite the tailwinds, the big boys decided to pull the rug on OCBC share price.

For four consecutive weeks, OCBC has been in the top ten institutional net sell list. In the week of 26 July, big boys net sell $30.5 million worth of OCBC shares. In the week of 2 August, $52.8 million worth of OCBC shares were net sold.

LIFETIME MEMBERSHIP For Singtel share price, it should be light at end of tunnel instead of light from an on-coming train. Of course, long-term investors could be forgiven for thinking otherwise. After all, Singtel share price has endured so many false dawns in recent years that investors must be wondering when will Singtel share price ever become great again.

For sure, Singtel share price has lost that aura of invincibility. Perhaps the billion dollars penalty imposed by Indian Supreme Court for its subsidiary, Airtel, had knocked the wind out of Singtel share price. Or maybe the cut in dividends had demolished investors’ confidence in Singtel share price. Whatever the case it may be, the counter is a shadow of its former self.

Singtel share is extremely popular among Singapore investors as many retirees depend on the dividends for passive income. So you can imagine the shockwaves for Singtel share price when the telco announced an interim dividend of just 5.1 cents in November 2020. That dividend was the lowest in a decade and sent Singtel share price to the rock bottom. To be exact, all hell broke loose when Singtel share price crashed to record low of $2.00 on 2 November 2020.

LIFETIME MEMBERSHIP What a devastating plunge! On 16 August, Nanofilm share (SGX: MZH) crashed 30% following the double bad news concerning the resignation of Chief Operating Officer (COO) and a set of financial result that fell short of analysts’ expectations. The swift meltdown of Nanofilm share price certainly raised many eyebrows as this counter just smashed $6.50 on 26 July. How will Nanofilm share price unravel in the coming weeks?

Back in March 2021, I have written an article that stated Nanofilm share price is worth $4 only. Even though Nanofilm share price has reached my target price, I will not enter this counter at the moment because I do not invest in a company that just got listed within five years. In my opinion, the current turmoil of Nanofilm share price is largely due to the recent departures of former CEO Lee Liang Huang and COO Ricky Tan. So until the day that Nanofilm addresses this issue, it is too early to claim that Nanofilm share price will see bottom soon.

It is certainly not business as usual when two senior managers departed from a company within a short span of time. Dr Shi Xu, the founder and Executive Chairman of Nanofilm, has been appointed as the interim CEO.

LIFETIME MEMBERSHIP It seems that DBS Group Holdings share price may have peaked. During the report of 1QFY2021 financial result, DBS Group reported first quarter net profit doubled from the previous quarter. That feat set DBS Group Holdings share price on fire. However, recent 2QFY2021 financial revealed 15% decline of net profit on quarter-to-quarter basis. In this regard, is this the end of an era for DBS Group Holdings share price?

Make no mistake. The local bank is not facing any crisis. In fact, DBS Group is still raking in healthy level of profit. Year-to-date, DBS Group Holdings share price had also increased by a whopping 21.35%. Notwithstanding these, it should be noted that the powerful surge of DBS Group Holdings share price was built upon the bank’s recovery from the low “base effect” seen in the first half of FY2020 – the onset of the pandemic.

As we enter the second half of FY2021, that “base effect” will gradually reduce. Moving forward, investors will be examining how the bank fares in comparison to pre-pandemic. Against this backdrop, whether DBS Group Holdings share price could sustain its bullish run in the coming months will be a big question mark.

Just like OCBC, DBS’ first half stellar performance was largely due to lower amount of allowances, which dropped to just $89 million in comparison to the staggering $1.94 billion in last year.

LIFETIME MEMBERSHIP It’s official! On 28 July, Monetary Authority of Singapore (MAS) lifted the dividend cap on Singapore banks. The lifting of dividend cap set OCBC share price on fire. From 28 July, OCBC share price surged from $12.07 to a high of $12.46 on 10 August. On the basis of the current run, can OCBC share price hit $15 by end of the year? While OCBC share price has taken some knocks following ex-dividend on 13 August, the catalysts could drive OCBC share price to new heights in the coming months.

OCBC share price nearly hit $14 in 2018. That was the year in which the bank recorded full-year net profit of $4.5 billion. Fast forward to FY2021, the first half net profit had already hit a high of $2.75 billion, surpassing the $2.3 billion profit in 2018. Assuming OCBC recorded $5.2 billion earning for full-year, the annualized EPS could be $1.15. Applying multiple of 13, my target OCBC share price is about $15.

Apart from the lifting of dividend cap by MAS, another tailwind that will aid OCBC share price is the shares buybacks by the bank. Traditionally, OCBC is considered the most aggressive when it comes to share buybacks in recent years.

Lifetime Membership On 6 August 2021, AEM share price staged a return of the prodigy. The night before, the management had released a set of dismal 1HFY2021 financial result that saw revenue plunging by 30% and net profit collapsing by 46% on year-on-year basis. To be frank, I could not sleep well that night and was expecting AEM share price to plummet the following day. I was actually boiling inside, not at the poor result because I was expecting the financial result to be disappointing. To be exact, I was angry at the management for the lack of traction in securing of new major customers. But non-executive Chairman Loke Wai San, being Loke Wai San, managed to outfox everyone once again.

When companies announce financial results in the middle of the night, it can only mean that the result is disappointing. Indeed, this has been the case for AEM. Then again, drawing from the experience of the 1QFY2021 result saga, Loke Wai San probably knew that he could not afford to let AEM share price collapses again. Nonetheless, surely nobody could have predicted the bombshell revelation of the entry of Temasek Holdings. Honestly, I must really hand it to Loke Wai San for pulling this off!

Lifetime Membership On 2 August 2021, Keppel Corp stunned Singapore investment community with the announcement of the $2.2 billion strategic acquisition of Singapore Press Holdings ex-Media. Whilst the media segment had been carved out, the destiny of the remaining assets of SPH remained a mystery until the fateful announcement. Will the latest turn of event throw a spanner in the works for the recovery of Keppel Corp share price?

Keppel Corp share price turned on the style following report of a net profit amounting to $300 million for half year ended 30 June 2021. Notwithstanding the strong results, what truly turbocharged Keppel Corp share price was the surprising bonanza cash dividend of 12.0 cents, which is significantly higher than 2020’s interim dividend of 3.0 cents and also higher than the interim dividend of 8.0 cents declared in 2019.

With the proposed acquisition of SPH ex-Media, it is evident that Keppel Corp management is very determined to execute one of its much-touted Vision 2030 – recycling of assets to generate cash. The biggest components of Vision 2030 are to become asset-lite and pivot in renewable energy sector. To do so, Keppel Corp needs a mega asset monetization programme. The monetization initiative is well-underway but the assets from SPH is going to provide more platform for recycling.

Lifetime Membership Many investors thought it is light at the end of tunnel for China stock market. But as it turned out, the light was actually from an on-coming train instead. The recent crackdown by Chinese authorities on education and technology companies had wiped off about US$1 trillion off Chinese shares in the past week. The speed and magnitude of the China stock market correction had caught most investors flat footed. Is it really the end of the road for China stock market?

Back in November 2020, the Chinese authorities had torpedoed Alibaba’s Ant Group IPO. Since then, Alibaba’s share price had never really recovered from that devastating blow, falling from the high of US$307 to the present US$189. So for those who think that the current correction in China stock market represented a good opportunity for bargain hunting, it is better to think twice. The fate of Alibaba share price means that investing in China stock market is going to be very, very challenging.

China stock market sees red

Following the Ant IPO saga, the important messaging from China is [This is a premium article. The rest of the content is blocked and can be accessible by SG Wealth Builder Members only.