Month: March 2022

OCBC share price rocketed amid acquisition rumors

OCBC share price

Talk about being at the right time and right place! On 25 March, Singapore Prime Minister announced the ease of public health measures for the pandemic, thereby improving business sentiments for aviation, hospitality and F&B. The relaxation of measures should bode well for local banks due to the loan exposures to these sectors which had been hit by the pandemic. As the operating environment improved significantly, OCBC share price should enjoy some tailwinds in the coming months.

At the moment, OCBC share price should be at a turning point as the counter has largely factored in the Russia-Ukraine conflict and pandemic impacts. The series of interest rate hikes should be the key catalyst driving the share price upward. Is this a good opportunity to enter? I would say so if you have done your risk assessment and diversified your portfolio. Being the oldest bank in Singapore, this blue chip is an evergreen STI component that will withstand the test of time.

OCBC share price

Looking back, the past two months had been an absolutely gut-wrenching ride for investors as OCBC share price plunged into chaos. The day of Russia’s ‘special military operation’ in Ukraine coincided with the release of OCBC’s full-year financial result for FY2021. Consequently, investors were horrified to see OCBC share price plunging by as much as 6% on that fateful day.

Prior to the severe correction of OCBC share price in the middle of February, the counter had topped the list of institutional fund house net buys for six consecutive weeks as institutional fund houses had been pouring funds into OCBC shares. Subsequently, the invasion of Ukraine by Russia had rattled global stock market confidence on 24 February 2022. Global stock markets got routed and Straits Times Index fell 3.5% on that fateful day. The sell-offs by the big boys …

DBS share price: CEO laughing all the way to bank!

DBS share price

Amid the raging inflation and uncertainty inflicted by the ongoing Russia-Ukraine conflict, market sentiments had been gloomy in the past three months. And rightly so. After all, many analysts had previously predicted that 2022 could be the year of global recovery from the devastating pandemic. But the Russia-Ukraine conflict had emerged out of nowhere to torpedo global stock markets. Of course, DBS share price was not spared from the fallout.

Despite the chaos in the market, DBS share price appreciated 6.8% year-to-date. Looking back, DBS share price had been on a rather bullish form in the start of the year. Investors had bought into this counter with anticipation of a stellar full-year FY2021 result. And the bank delivered. Then again Man proposes, God disposes. Unexpectedly, Dow Jones fell 500 points on 11 February 2022 following news of a potential Russian-Ukraine conflict. In the aftermath, DBS share price had a minor correction.

DBS share price

Investors’ worst nightmare came true as the Russia’s “special military operation” in Ukraine unfolded. As a result, DBS share price tumbled from a high of $37.20 on 14 February to a low of $31.20 on 8 March, representing a correction of 16% within the span of three weeks. Yet the announcement of the much-anticipated 0.25% interest rate hike by the US Federal Reserve on 16 March had rescued DBS share price from the gallows. Then on 22 March, the Federal Reserve warned that it is prepared to hike subsequent interest rates by more than 50 basis points to fight inflation. The turn of events must have been a whirlwind for investors!

The booster shot for DBS share price came from its FY2021 financial performance as the record earnings provided a key support for DBS share price. As a growth stock, most investors should place more premium on the top-line …

Boustead share price (SGX: F9D) lost its way

Boustead share price

The last time that I covered Boustead share price was in November 2016. Back then, the company was still struggling from the fallout due to the oil slump. Recently, a member of SG Wealth Builder requested for a coverage of Boustead share price, which I would duly oblige to do so.

Ten years ago, this counter had been on my watchlist as Boustead share price rose from $0.80 in January 2012 to an incredible high of $1.90 in April 2014. Back then, investors must have felt so surreal. By the time of my last coverage in November 2016, the bubble has burst for Boustead share price as the stock collapsed to the $0.80 bandwidth. The collapse of Boustead share price was largely due to the ailing oil and gas industry from 2014 to 2019.

Boustead share price

During the initial onset of the pandemic in 2020, Boustead share price came under further pressure as the counter plummeted to a low of $0.60 in April 2020. That was the period when crude oil prices were being traded at negative levels. Fast forward to 2022, as we approached endemic, Boustead share price has somewhat recovered to $0.90. Having said that, retail investors’ interest in Boustead share price has cooled considerably. In fact, the average 3-month trading volume amounted to just 1.4 million shares! This suggested an extremely poor liquidity for this stock.

To be fair to the management, the lack of retail investors’ interest in Boustead share price is not entirely due to the business fundamentals of the company. In my opinion, the issue faced by Boustead share price is prevailing among many SGX-listed companies. In the past decade, many Singapore investors had shifted interest to US and Chinese stocks due to the perceived higher returns. Hong Kong Stock Exchange has also emerged …

AEM share price in $1 billion dream

AEM share price

The year 2022 turns out to be a terrifying year for investors. Barely emerging from the protracted pandemic, the world economy looks set for another tumultuous ride as Russia’s “special military operation” in Ukraine continues to rock global community. Against this backdrop, AEM share price spirals out of control. Will AEM share price rise from the ashes like a phoenix to fulfil its destiny to be a $1 billion revenue company?

AEM share price rockets with Temasek Holdings!

Despite the gloomy operating climate, it is too early to write off AEM share price. On 7 March 2022, Temasek Holdings increased its stake in AEM to 10.29% following the acquisition of 1.41 million shares for about $3.95. The shares acquisition by Temasek Holdings is deemed by many to be a vote of confidence on the outlook for AEM share price.

AEM share price

AEM share price was then given further boost on 8 March when there was a transaction of 3 million shares for its USD counter. The AEM USD counter had been under pressure lately due to the perceived lack of turnover. On hindsight, the move by the management to launch the USD counter is prudent as we can extrapolate how well AEM may perform if it is dual-listed in NASDAQ.

The recent misadventure of Grab provides a sobering reminder that there are risks in NASDAQ listing. The shares of Grab plummeted to US$3.36 on 7 March 2022 after the company announced a fourth quarter loss of US$1.1 billion. Now, Grab is purportedly facing class action suits in US. Thus, it remains to be seen if AEM share price will suffer the same fate as Grab if the former is listed in NASDAQ.

Year-to-date, AEM share price fell by about 21%. The management tried to provide support for AEM share price by initiating …

Q&M share price to rocket with NASDAQ gambit?

Q&M share price

LIFETIME MEMBERSHIP The last time that I had covered Q&M share price was in 2019. That was really the land before time! Recently, a Lifetime Member requested for an update on this counter. If you would like me to provide my insights on SGX stocks, please do sign up as member here!

The coverage of Q&M share price is timely as I realized that the company recently managed to turn around from years of stagnant revenue and profit. COVID-19 imploded out of nowhere in 2020 and the company rode on the wave to stage an impressive recovery. But what truly got me excited was Q&M’s stunning announcement in January 2022 to explore a proposed listing of Acumen Diagnostics on the NASDAQ stock exchange.

Q&M share price

Acumen Diagnostics is a joint venture of Q&M Dental and it researches, manufactures, sells and distributes COVID-19 diagnostic test kits, as well as provides COVID19 testing services. Question now is: what is the kind of impact that a NASDAQ listing would bring for Q&M share price?

It seems that Q&M Dental has hit the jackpot with Acumen Diagnostics. Q&M Dental recorded a record revenue and profit for FY2021 as gross profit for the COVID-19 medical laboratories rocketed nearly 20-fold from last year to hit $22.3 million. Probably because of this, Q&M Dental raised its effective interest in Acumen Diagnostics to 67% from 51% in October 2021. The strategic move was sound as I think Acumen Diagnostics could be a game-changer for the private dental healthcare group.

Acumen Diagnostics offers COVID-19 testing by polymerase chain reaction (“PCR”) for patients that require PCR test results and for travellers. It will also launch a panel of new PCR tests for infectious diseases, sepsis and cancer. The possibility to diversify its product offerings means that the business model of Acumen …

Global Testing share price (SGX: AYN) rocketed 130%

Global Testing share price

LIFETIME MEMBERSHIP On 24 February, Russia sent global markets into a devastating turmoil following the full-scale invasion on Ukraine. Yet on that fateful day, Global Testing share price stunned Singapore stock market when it took off like a rocket, surging an eye-popping 130% within a week to hit a high of $1.42. The incredible surge of Global Testing share price confounded many investors. Due to this, a Lifetime Member has requested a coverage on this interesting counter.

For background, Global Testing provides testing services such as wafer sorting and final testing for mixed-signal and logic integrated circuits to the semiconductor industry. Its testing services include test program development and conversion. In addition, they also help their customers to convert single-site testing to multi-site testing to shorter their turn around time. Being listed in SGX, the company’s main testing facilities are based in Taiwan. Its customers include Taiwan Semiconductor Manufacturing Company Limited (TSMC) and United Microelectronics Corporation (UMC).

Global Testing share price

Although Global Testing has been listed in SGX Mainboard since 2005, the market capitalization is very small – at about $43 million. The market capitalization would have been even much lesser if not for the meteoric rise of Global Testing share price lately. The total number of outstanding shares stood at just 35 million and 45% of the stakes are held by Yageo Corp, Mr Chia Soon Loi (Non-Executive Chairman of Global Testing) and Mr Chen Tie-Min (Chairman of Yageo Corp).

Due to the fact that most of the shares are held by a few major shareholders, the counter suffered from an extremely poor liquidity. Average 3-month volume amounted to just 930,000 shares. Against this backdrop, a question is whether Global Testing share price will do an AEM Holdings, which rose from the ashes like a phoenix to become a leading technology stock …

Healthway Medical share price faces another lost decade?

Healthway Medical share price

LIFETIME MEMBERSHIP The on-going Ukraine crisis has sent global stock markets into a devastating tailspin. The war occurs at a very bad timing as global economy is in the midst of recovering from the protracted pandemic. In this context, how will Healthway Medical share price unravel in 2022? A concerned Lifetime member has written in to enquire the lack of vitality for this counter.

Due to the request from a Lifetime Member, I am writing this article to provide my insights on Healthway Medical share price. Apart from the request, I have been wanting to cover this counter for some time because of my recent annual body check-up at one of Healthway Medical clinics.

Healthway Medical share price

For background, Healthway Medical is a private outpatient medical service provider operating more than 100 clinics and medical centres in Singapore. Within Singapore, Raffles Medical is a competitor of Healthway Medical. The difference between the two is that the former is listed in SGX Mainboard while the latter is listed in Catalist.

On 25 February, the Group announced a set of stellar financial result yet Healthway Medical share price remained moribund. Why is this so? Average 3-month trading volume amounted to just 19.75 million while 5-year Beta was 0.58. These suggested a poor liquidity for this counter.

In my opinion, the lack of market interest in Healthway Medical share price could be attributed to several factors. Looking back, the counter has endured a lost decade. In 2013, Healthway Medical share price peaked at $0.12. In the aftermath of the penny stock crash in SGX, the shares collapsed to the current levels. Due to the lack of confidence among investors in penny stocks, many investors could be giving this stock the cold shoulder. In fact, Healthway Medical share price has been trading at $0.030 to $0.035 range …