Sarine Tech share price to do an iFAST?

LIFETIME MEMBERSHIP Diamond, diamond, in the sky. Who’s the shiniest of them all? The raging form of iFAST has set many SGX technology stocks on fire, and Sarine Tech share price is one of those riding on the current wave. For perspective, the counter has surged by 45% since the start of the year. While Sarine Tech share price is still some way off the record high of $3.20 seen in 2014, its current share performance is impressive given the current market condition.

A loyal supporter of SG Wealth Builder wrote in to seek my insights on the outlook of Sarine Tech share price, so I feel obliged to write a balanced view on this counter. As I have mentioned before, my investment philosophy is that there are no good or bad stocks. In the stock market, there are only good or bad strategies. It is possible that investors make money out of risky stocks. Conversely, many seasoned investors have lost their pants investing in purportedly “safe” stocks like Hyflux and Eagle Hospitality Trust.

Before I share my view on Sarine Tech share price, let’s do a brief company background. Firstly, Sarine does not sell diamonds. Instead, the Israel company provides smart solutions throughout the entire diamond value chain, spanning from upstream (miners) to rough diamond polishing (mid-stream) to grading and trading (downstream). Essentially, like iFAST, Sarine is a software company. The competitive edge of Sarine is its patented solutions used throughout the diamond value chain.

To be fair to the management, the bullish form of Sarine Tech share price should be largely attributed to the recovery of the global diamond industry since the second half of 2020. Against this backdrop, the Group recorded first quarter revenue of US$17 million (best quarter since 2014) and net profit of US$6.7 million. Due to the robust results, Sarine Tech share price recovered to the levels last seen in September 2018. However, I must stress that the financial results were revealed through the latest business updates. It is not clear to me if the results were audited as SGX has ceased mandatory quarterly financial reporting.

Note that this is an opinion article and not meant to be a financial advice. Please do your due diligence or engage financial advisors before investing in the stock market. Furthermore, I am not vested and have never invested in Sarine Tech before. Whether Sarine Tech share price will surge or collapse has no impact on me. Thus, this article is not meant to induce readers to make any form of investment decisions.

Sarine Tech share price faces baptism of fire

The biggest Achilles Heel for Sarine Tech share price is that it is listed in Singapore but based in Israel. Due to this, the company suffers from poor visibility among Singapore investors as most of them are unlikely to have heard of the company nor use Sarine’s products before. However, things could shake up for Sarine Tech share price with the impending [This is a premium article. The rest of the content is blocked and can be accessible by SG Wealth Builder Members only. To read the full content, please sign up as member.]

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