Month: May 2022

Alibaba share price (HKEX: 9988) in horror meltdown

Alibaba share price 9988

From hero to zero, Alibaba founder Jack Ma’s fall from grace has been nothing short of spectacular. In October 2020, Jack Ma, blasted Chinese financial regulators for stifling innovation at the Bund Summit in Shanghai. The criticism did not go down well with the Chinese authorities who subsequently launched a slew of regulatory crackdowns targeting Chinese tech stocks. Since then, Alibaba share price (HKEX: 9988) had endured a torrid run.

The collapse of Alibaba share price (HKEX: 9988) has caused plenty of heart pains for investors. Numerous investors had entered this counter when Alibaba share price (HKEX: 9988) was trading between HK$150 to HK$298. Given that Alibaba share price (HKEX: 9988) is currently trading at about HK$80 bandwidth, the rout had been pretty devastating for investors. The question now is whether recovery is in sight for Alibaba share price (HKEX: 9988).

Alibaba share price 9988

Many investors had been buying on the dip – buying more shares as Alibaba share price (HKEX: 9988) continues to plunge. Although such strategy is not unsound, many investors are starting to panic as there is no sign of bottoming of share price. And what if the end-point for Alibaba share price (HKEX: 9988) is HK$1? That would be an absolute nightmare!

The prevailing negative sentiments on Chinese tech stocks are driven mainly by macroeconomic growth of China, geopolitical concerns and regulatory clampdowns. As such, business fundamentals are completely irrelevant for Chinese tech stocks like Alibaba share price (HKEX: 9988). From this perspective, recovery of Chinese tech stocks will depend largely on these factors.

Alibaba share price to surge ten-fold in value?

Alibaba share price in wonderland with Temasek Holdings

Dark side of Alibaba Group

In recent days, Alibaba share price (HKEX: 9988) has stabilized somewhat after reports of Chinese’s intentions to roll out policies to support the economy …

MLT unit price (SGX: M44U) looking sexy!

MLT m44u

My last update on Mapletree Logistics Trust (MLT) unit price (SGX: M44U) was in January 2022. Since then, the counter went through some volatility, falling from $1.78 to a low of $1.69 in end of January 2022 and then surge to a high of $1.88 in early April before falling to the current $1.68. As a unitholder, the volatility of MLT unit price (SGX: M44U) is certainly unsettling, at least for me. What could be the reason for the trend of MLT unit price (SGX: M44U)?

For background, the principal activity of MLT is to invest in a diversified portfolio of logistics real estate in Asia Pacific with the aim of providing its unitholders with a stable distribution stream. As at 31 March 2022, the Group’s portfolio had grown to a portfolio of 183 properties, comprising 53 properties in Singapore, 9 in Hong Kong SAR, 42 in China, 19 in Japan, 19 in South Korea, 13 in Australia, 16 in Malaysia, 10 in Vietnam and 2 in India. The total value of assets under management is $13.1 billion.

MLT m44u

The recent correction of MLT unit price (SGX: M44U) was partially attributed to the counter being ex-dividend on 9 May 2022. The S-REIT announced distribution per unit (DPU) of 2.268 cents for quarter ended 31 March 2022. This was an increase from the 2.161 cents distributed in 31 March 2021. For 12 months ended 31 March 2022, the full-year DPU was 8.787 cents.

The current MLT unit price is actually very attractive in terms of accumulation. Assuming the full-year DPU remains stagnant at 8.787 cents and assuming that you bought at the current $1.66, the annual dividend yield should be about 5.3%, which is much higher than bank saving rates. In this regard, the falling MLT unit price (SGX: M44U) provides …

AEM share price (SGX: AWX) in whirlwind!

AEM share price

On 5th of May 2022, Dow Jones crashed 1063 points amid concerns of recession and surging global inflations. The following day, the Straits Times Index (STI) suffered a rout. In the sea of red, the bullish form of AEM share price stood out. At one point, AEM share price surged 2.5%, making it the top gainer in SGX. However, by the end of the trading day, the counter surrendered all the gains and fizzled out.

The volatile form of AEM share price came on the back on a solid first quarter financial updater for FY2022, which saw the semiconductor test equipment manufacturer posting its highest quarterly revenue and profit before tax in its history. Net profit rocketed more than three-fold to smash a high of $40.8 million while revenue hit $262 million.

AEM share price

Previously, I wrote that AEM may become a $1 billion revenue company. On the basis of the quarterly performance, that day will come sooner than I expect. In fact, I would have expected AEM share price to breeze past the $5.00 mark on 6th May 2022. If not for the overall stock market carnage, the stellar first quarter performance would have turbocharged AEM share price to high heavens.

AEM share price in holy grail with Temasek

AEM share price in $1 billion dream

AEM share price in perfect storm

AEM share price to jump 100% with new patent?

The first quarter performance is critical as it sets the stage for subsequent quarterly performances. In my view, the result validated the assumption on the volume ramp up from Intel and provided a good basis for my hypothesis of a $100 million net profit in FY2022. If the Group could perform like this for the subsequent quarters, then full-year net profit may possibly hit $160 million. If …

Xiaomi share price (HKEX: 1810) a good buy now?

Xiaomi share price

Is Xiaomi share price (HKEX: 1810) at a good entry level now? My last coverage on Chinese tech stocks (Alibaba HKEX: 9988) was in February 2021. Back then, Chinese tech stocks were embroiled in a slew of regulatory headwinds following Jack Ma’s epic criticism against the regulators’ stifling innovation of the financial system. That action triggered an unprecedented storm that saw aggressive regulatory clamp downs on Chinese tech stocks.

Obviously, nobody in his right mind would have predicted the storm to last for two years. During this period, it is understandable that many investors are depressed after seeing their investments evaporated with the meltdown of Chinese tech stocks. Against this backdrop, many investors must be praying fervently for light at end of the tunnel. Recently, an SG Wealth Builder Lifetime Member requested for the coverage on one of the Chinese tech stocks: Xiaomi share price (HKEX: 1810), which I will duly oblige.

Admittedly, I have not invested in foreign stocks before, much less Chinese tech stocks. However, I have been watching the unfolding of the rout of Chinese tech stocks for the past two years. Like many Chinese tech stocks, Xiaomi share price (HKEX: 1810) had suffered huge carnage due to the crisis of confidence in Chinese tech stocks. However, recent announcement by the Chinese authorities to roll out policies to support the economy and stabilize consumption gave many investors some glimmers of hope that the slew of regulatory clamp downs may be coming to an end (finally)!

In investing, it is important to buy low and sell high. Xiaomi share price (HKEX: 1810) has plunged from an all-time high of HK$33.20 on 31 December 2020 to the current HK$11.70. This represents a staggering 45% correction from the all-time high. Although Xiaomi share price (HKEX: 1810) is at …