AEM share price (SGX: AWX) in fairytale with Temasek Holdings

NDP Special Offer! Will AEM share price become the next fairytale of SGX? Following the release of the 3rd quarter business update, AEM share price (SGX: AWX) has been in rocket form in recent weeks. The bullish form of AEM share price sent the counter to a record high of $5.22 on 30 November. Based on the current run of AEM share price, there is a good chance that the stock could knock iFAST off the perch to become the best performing SGX stock of the year.

Despite the positive business outlook, AEM share price has been rocked by the recent market turmoil caused by the Omicron variant. Amid the market chaos, AEM filed an SGX disclosure that Temasek Holdings purchased 443,700 shares from the market on 25 November. Although the shares were bought before the Omicron variant news, it provided much stabilizing support for AEM share price.

AEM share price

My vision for AEM share price is that it would become a $10 stock in SGX Mainboard. Having a conviction is important in stock investing as it can provide a calming effect when the share price movements are not in your favor. Obviously, the current AEM share price is still some way off my target level but my conviction is not based on blind faith.

First off, the bullish form of AEM share price had fended off short-selling attacks. According to data pulled from Monetary Authority of Singapore (MAS) Short Position Reporting System (SPRS), open short positions against AEM share price fell to a low of 1.77 million as of 19 November 2021. Prior to this, the open short positions amounted to a staggering 8.4 million as of 8 October 2021.

The presence of short-sellers can exacerbate the downtrend of stock movements. As in the case of the recent …

Read more

DBS Group Holdings share price (SGX: D05) in crisis

NDP Special Offer! Troubles come in troops for DBS Group Holdings share price. Looking back, the counter smashed a record high of $32.60 on 5 November following a splendid bull run. It certainly seemed that the sky was the limit for DBS Group Holdings share price. But unexpectedly, the wheels came off the wagon for DBS Group Holdings after the bank reported a subpar 9MFY2021 financial result that saw net income interest falling 9% year-on-year. The following Monday (8 November), DBS Group Holdings share price turned bearish.

Shortly after the release of the latest financial result, the bank suffered one of its worst service disruptions in the past decade, prompting Monetary Authority of Singapore (MAS) to mull taking regulatory actions against the bank in the coming days. The outage led to temporary crisis of confidence on DBS Group Holdings share price.

DBS Group Holdings share price

Just when investors thought that the worst was over for DBS Group Holdings share price, another nightmare unfolded. On 26 November, investors woke up to stunning revelation of a new COVID-19 variant that may be more contagious than the Delta variant. What spooked investors is that the variant could render current vaccines ineffective given its significant mutations. Due to the uncertainties, Straits Times Index (STI) suffered a carnage, and DBS Group Holdings share price was not spared from the market sell-offs.

From my assessment, I do not foresee the new variant to have a major impact on DBS’ core banking business. According to CEO Piyush Gupta, the loan exposure in FY2020 for aviation, oil and gas and SME sectors amounted to $6 billion, $23 billion and $39 billion. The major bulk of its loan portfolio is still concentrated in housing and building and construction. Hence, even if the authorities tighten the public health measures in the coming days, they …

Read more

ISDN share price to rocket to $1.90?

NDP Special Offer! Will ISDN share price do an AEM? Since January 2020, ISDN share price has rocketed more than 300% to reach the current $0.75. The meteoric rise of ISDN share price has led investors to compare the counter to fellow SGX peer, AEM. Apart from this, what is the possibility of Temasek Holdings taking a stake in ISDN?

In life, never say never. Temasek Holdings investments in AEM and CSE Global showed that the sovereign wealth fund is open in taking majority stakes in promising home-grown companies listed in SGX mainboard. Like AEM and CSE Global, ISDN is an engineering company that provides technological solutions to its customers. In this article, I will examine the possibility of Temasek Holdings taking a stake in ISDN and the potential impacts on ISDN share price.

ISDN share price

The principal activities of ISDN are mainly on motion control, industrial computing, other specialised engineering solutions and construction of hydropower plants. The Group is listed on SGX Mainboard since 24 November 2005 and achieved a dual primary listing on the Hong Kong Stock Exchange on 12 January 2017.

In Singapore ISDN share price is largely under the radar of institutional investors. For the past one year, this counter did not feature in any of the monthly top ten institutional net buy or sell lists. Nonetheless, this is not a dead stock as average 3-month volume is 116 million. This suggests that the surging form of ISDN share price in recent months could be attributed to strong retail buying interests.

If we turn back the clock, we can actually see that ISDN share price rocketed from $0.11 in November 2012 to an incredibly high of $1.42 in June 2013. That was an amazing 12-fold increase within the span of just seven months! Back then, those who had …

Read more

AEM share price (SGX: AWX) to hit $20 with new patent?

NDP Special Offer! For the past one week, AEM share price (SGX: AWX) has been in outrageous form. Apparently, the 3rd quarter business update had ignited the rally of AEM share price (SGX: AWX). At the point of writing, this counter is still in red hot form and showing no sign of cooling down. What truly confounded many investors was the fact that net profit for 9MFY2021 had plummeted 33.4% to $53 million. The rise of AEM share price (SGX: AWX) defied all sense of logic as poorer financial result usually leads to lower share price. Against this backdrop, what could be the triggering factor that led to the raging form of AEM share price (SGX: AWX)?

In my view, the sudden burst of form of AEM share price (SGX: AWX) may not be attributed to a potential Nasdaq listing nor the positive outlook for its chip testing business. Although these are important catalysts for AEM share (SGX: AWX), I honestly doubt that they played a part in the recent meteoric rise of 21% in AEM share price (SGX: AWX) in the past one month.

AEM share price AWX

Based on my hypothesis, I think the recent superb form of AEM share price (SGX: AWX) should be due to the application for the patent crucial for its next generation System Level Test platform (patent no: 20210325452). The Group filed the application for the patent on 16 September 2020. The patent may pave the way for the volume ramp up with its key customer, Intel. The patent award also coincided with the explosive form of AEM share price (SGX: AWX). Talk about being at the right time and right place!

AEM share price (SGX: AWX) to rocket to $8.30?

AEM share price rockets with Temasek Holdings!

AEM share price recovering from bloodbath

AEM

Read more

Singtel share price (SGX: Z74) in Christmas mood!

NDP Special Offer! Christmas comes early for Singtel share price (SGX: Z74)! The counter is in buoyant form following the release of a set of stellar first half financial result that saw net profit more than doubled to $954 million. In my last article, I had suggested that winter may be over for Singtel share price (SGX: Z74). On the basis of the latest financial result, it seems that the telco has managed to turnaround.

Singtel share price (SGX: Z74) was also given a boost as the management made a couple of shares buybacks in the past few days. 620,989 shares were bought back on 12 November while 620,500 shares were bought back on 15 November. It is unknown if the shares repurchase will continue in the coming days. Year-to-date, Singtel share price (SGX: Z74) has climbed about 10%.

Singtel share price Z74

Looking at the results, there are several factors that led to the revival of Singtel’s businesses, namely the resumption in regional economic activities and Airtel’s turnaround. If the telco continues to perform like this for the next two quarters, Singtel share price (SGX: Z74) should be able to breakthrough $3.00 – the level at which Singtel share price (SGX: Z74) used to be traded during pre-pandemic period.

Despite the good showing, the Group announced interim dividend of merely 4.5 cents per share. This is even lower than the interim dividend of 5.1 cents per share given out in last year. Assuming the final dividend pay-out is also 4.5 cents per share and based on current Singtel share price (SGX: Z74) of $2.58, the annualized yield is just 3.5%.  Given the volatility of Singtel share price (SGX: Z74), the dividends are not exactly appealing to investors.

The lower dividend pay outs will weigh on Singtel share price (SGX: Z74) and this …

Read more

AEM share price (SGX: AWX) to rocket to $8.30?

LIFETIME MEMBERSHIP Hurry! The train is leaving! What a swashbuckling return in form for AEM share price (SGX: AWX). Following the release of the 3rd quarter business update on 10 November, the counter surged 4.5% the next trading day. As of 12 November, AEM share price (SGX: AWX) rocketed 9% to hit a record high of $4.78. Can anything stop AEM share price (SGX: AWX)?

Although net profit for 9MFY2021 plummeted 33.4% to $53 million, the latest business update revealed a glowing outlook for AEM share (SGX: AWX).

AEM share price AWX

In the business update, the management raised the full-year revenue guidance to between $525 million and $550 million. For AEM to meet this revenue guidance, the Group needs to achieve about $200 million in the 4th quarter. The management has a strong track record of meeting its revenue guidance, so I am confident that AEM is able to meet this target. However, the key sentence in the business update that could turbocharge AEM share price (SGX: AWX) is “the Group expects the ramp to continue through 4Q2021 and into FY2022”.

Based on the above statement, AEM should be raking in about $200 million of revenue in each quarter of FY2022 due to the volume ramp of their test platforms to key customer, Intel. Assuming net profit margin of 16%, the full-year net profit for FY2022 could be $128 million. This will translate to earning per share of $0.42. Attaching a PE ratio of 20, the forward AEM share price (SGX: AWX) could be $8.30.

Given that AEM share price (SGX: AWX) is being traded at $4.38 at the point of writing, it would take a leap of faith for this counter to reach $8.30. Then again, AEM share price (SGX: AWX) does not follow the script. The counter is …

Read more

Here’s why Raffles Medical share price (SGX: BSL) plunged 12%

LIFETIME MEMBERSHIP My last coverage on Raffles Medical share price (SGX: BSL) was in June 2020. Back then, the counter was recovering from the initial impact of the pandemic. Nonetheless, Raffles Medical share price (SGX: BSL) remained sluggish for most of 2020 until news of vaccines broke out in November 2020. Since then, global roll-out of vaccine programmes and easing of border restrictions led to Raffles Medical share price (SGX: BSL) rocketing to a near-record high of $1.55 in October 2021.

Unexpectedly, the bullish form Raffles Medical share price (SGX: BSL) was brought to a screeching halt when the shares plunged 12% to reach a low of $1.35 on 3 November 2021. To be honest, the volatility of Raffles Medical share price (SGX: BSL) is rather rare and it prompted a Lifetime Member of SG Wealth Builder to seek an insight from me.

Raffles Medical share price BSL

There are analysts who claimed that the recent correction of Raffles Medical share price (SGX: BSL) is due to the revised on-arrival COVID PCR test requirements for travellers arriving in or transiting through Singapore (from 7 Oct 2021 onwards, travellers from CAT II, III & IV countries do not need to do on-arrival PCR tests). For perspective, Raffles Medical conducted over 600,000 COVID-9 tests and screened more than six million travellers in 2020. So the latest changes on arrival test requirements for travellers could have a big impact on Raffles Medical share price (SGX: BSL) in the short-term.

Whilst the revised test regime for travellers may impact Raffles Medical’s revenue, I think a greater impact could come from the transition from Rostered Routine Testing (RRT) to Employer Supervised Self Swab (ESSS) as required by various government agencies.

Workers in Changi Airport, local airlines, construction, marine shipyard, process sectors and those workers living in dormitories are subjected …

Read more

OCBC share price (SGX: O39) went AWOL

LIFETIME MEMBERSHIP It seems that OCBC share price (SGX: O39) have lost its way. On 3 November 2021, the local bank released a set of financial result that saw 3rd quarter’s net profit rose by an impressive 19% year-on-year to reach $1.22 billion. Nine months’ net profit rose by a staggering 58% to $3.88 billion. With such a solid performance, most investors would have popped the champagne. Yet OCBC share price (SGX: O39) confounded investors by retreating 0.75% on that fateful day.

To be honest, the tepid performance of OCBC share price (SGX: O39) is truly bizarre. Like many investors, I had expected plenty of fireworks for OCBC share price (SGX: O39) following the release of the excellent 3rd quarter business update. I do think that it is reasonable to expect OCBC share price (SGX: O39) when you see such good result. But then again, Man proposes, God disposes. OCBC share price (SGX: O39) went missing in action instead.

OCBC share price O39

The trend of OCBC share price (SGX: O39) is eerily similar to that of Wilmar, another Straits Times Index heavyweight. In October 2020, Wilmar share price suffered an explosive meltdown following the hugely successful listing of Yihai Kerry Arawana Holdings Co., Ltd (YKA). Then in February 2021, Wilmar share price lost form unexpectedly following the release of a set of great financial result.

Like OCBC, Wilmar management also went on the offensive to defend Wilmar share price and bought back a whopping 50.4 million Wilmar shares. As for OCBC, the management bought back 21.48 million of OCBC shares so far. CEO Helen Wong was forced into the titanic rescue mission of OCBC share price (SGX: O39) as the shares of the local bank had been the subject of brutal attacks by the financial big boys. For the month …

Read more

Mapletree Logistics Trust share price (SGX: M44U) in rock and roll

NDP Special Offer! Will the latest financial result set fire on Mapletree Logistics Trust share price (SGX: M44U)? The counter has been in buoyant mood in recent days following the release of a set of stellar financial result that saw 1st half gross revenue increasing 24.4% year-on-year to $328 million while net property income surged 21.4% to hit $289 million. Amount distributable to unitholders increased 19.2% to $186 million.

It has not been a bed of roses for Mapletree Logistics Trust share price (SGX: M44U) in 2021. The counter crashed from $2.00 in January to a low of $1.78 in March. To be frank, I could not explain the root cause for the correction of Mapletree Logistics Trust share price (SGX: M44U). So far, there were no equity financing nor were there any adverse news affecting Mapletree Logistics Trust share price (SGX: M44U). Hence, the tepid performance of Mapletree Logistics Trust share price (SGX: M44U) had been puzzling.

Mapletree Logistics Trust share price M44U

Year-to-date, Mapletree Logistics Trust share price (SGX: M44U) increased by a mere 1.5% only. This is despite the S-REIT continuing to deliver good financial results for the past few quarters. Looking back, one of the plausible reasons for the lethargic trend of Mapletree Logistics Trust share price (SGX: M44U) could be due to the lack of interest from institutional fund houses.

A check with SGX website showed that the only period in which institutional fund houses entered this counter was in May 2021 – the counter was in the top ten institutional net buy list with $34.6 million being net bought. That buying spree sent Mapletree Logistics Trust share price (SGX: M44U) to a high of $2.15. Subsequently, the dearth of buying by the big boys led to Mapletree Logistics Trust share price (SGX: M44U) falling to a low of …

Read more

SGX stocks on ice and fire with energy crisis

NDP Special Offer! As the saying goes, one man’s poison is another man’s meat. While the energy crisis in China threatens to derail the country’s economic growth, it has inadvertently led to an increased in demand for oil. As a matter of fact, crude oil price is currently trading at a 3-year high of US$81.33 per barrel. Against this backdrop, what is the implication for SGX stocks?

For SGX stocks in the oil and gas sector, the current oil price boom is like a cup of hot chocolate amid the fierce winter. The last time that oil price was so buoyant was in October 2014. That was seven years ago. Since then, the emergence of US shale oil and supply glut from Organization of Petroleum Producing Countries (OPEC) caused oil price to plunge by a devastating 70%. The lowest point for crude oil price had to be April 2020. That was the peak of the pandemic which saw demand for oil vaporized due to the global lockdowns.

SGX stocks

Looking back, the meltdown of crude oil price and the fallout from the pandemic had been a turning point for many SGX stocks in the oil and gas sector. Big boys like Keppel Corp and Sembcorp Marine had signed a non-binding MOU in June 2021 to merge their oil-rig building businesses. The former has also announced plans to exit the oil-rig building business altogether. On the other hand, there are SGX stocks who sank into the abyss. An example would be oil exploration company, KrisEnergy, which submitted wind-up petition in June 2021.

The oil industry is highly cyclical. This means that we should be at the early stage of an oil boom. This is especially so given that major economies are just starting to reopen their borders in a frantic bid …

Read more

SIA share price (SGX: C6L) in explosive form

LIFETIME MEMBERSHIP Christmas comes early for investors as SIA share price (SGX: C6L) went on a rampage following news of the launch of the eight Vaccinated Travel Lanes (VTLs) with countries in US and Europe. Surely, it is a case of being at the right time and right place for SIA share price (SGX: C6L). The year-end festive season is traditionally SIA’s best quarter as travel demands typically increase with the December school holidays. So is it really the proverbial “U-shape” recovery or yet another false dawn for SIA share (SGX: C6L)?

Expectation of a long-awaited recovery for SIA share price (SGX: C6L) has reached an almost hysterical level for many investors. After all, we are talking about Singapore Airlines, the pride of our nation.

SIA share price C6L

For SIA investors, it must have been a bitter sweet feeling. The rights issues and the two tranches of Mandatory Convertible Bonds (MCBs) had diluted the share’s value to the $3.50 bandwidth in 2020. That was really the darkest chapter for SIA share price (SGX: C6L) as air travel was decimated by the devastating pandemic with no ends in sight. Subsequently, the revelation of a 90% effective vaccine (Pfizer) sent SIA share price (SGX: C6L) soaring by 21% in November 2020.

Yet even with vaccines being rolled out globally at an aggressive pace in 2021, variants emerged to cause multiple waves of infections in many countries. As a result, border restrictions remain firmly in place across many countries. This threw a spanner in the works for SIA share price (SGX: C6L), which peaked in April 2021 at a high of $5.70. The peak of SIA share price (SGX: C6L) also coincided with the period when the highly infectious Delta ravaged India and then various countries.

SIA share price (SGX: C6L) faces ambush from another cash

Read more

OCBC share price (SGX: O39) to rocket to Mars!

LIFETIME MEMBERSHIP Crisis? What crisis? Being the oldest bank in Singapore, OCBC has seen the ebbs and flows of Singapore financial landscape, overcoming crises after crises for nearly 100 years. The unfolding pandemic crisis is no exception. Yet as we enter the endemic phase, uncertainties engulfed OCBC share price (SGX: O39) over concerns of potential exposure over the China’s Evergrande Group.

OCBC owns two banks in China – Wing Hang Bank and a 20% stake in Bank of Ningbo. Thus, it is not unreasonable for investors to be worried over the potential fallout from the embattled Evergrande Group. To make matters worse, the bank had not made any official clarifications that it does not carry any bad debts from Evergrande, probably due to the banking secrecy law. Arising from the uncertainties, OCBC share price (SGX: O39) turned bearish from August to September 2021.

OCBC share price O39

Nonetheless, the lethargic form of OCBC share price (SGX: O39) did not last long as Monetary Authority Singapore (MAS) confirmed that Singapore banks have “insignificant” exposure to Evergrande. Following this revelation, OCBC share price (SGX: O39) surged 3.5% from 5 October to reach $11.90 on 14 October. On the basis of the current form, it seems that OCBC share price (SGX: O39) will recover lost ground and could smash past $14 by year end.

With the removal of Evergrande uncertainties, the next event that could shake things up for OCBC share price (SGX: O39) should be the upcoming third quarter financial report. Based on relentless daily shares buybacks carried out by OCBC management for the past two months, I expect the coming quarterly report to be good. Otherwise, the management would have a hard time justifying the aggressive shares buybacks conducted in recent months. As of 13 October, the bank has bought back a staggering 21 million …

Read more

Medtecs share price (SGX: 546) in bloody crash

LIFETIME MEMBERSHIP What a devastating train-wreck for Medtecs share price (SGX: 546)! After reaching an incredible record high of $1.80 on 21 August 2020, Medtecs share price (SGX: 546) collapsed 78% to reach the current low of $0.40. What the hell has happened to this healthcare product provider?

The meteoric rise of Medtecs share price (SGX: 546) on the back of an unprecedented health crisis created one of the amazing fairy-tales in Singapore stock market. Prior to COVID-19, Medtecs share price (SGX: 546) was trading at merely $0.08 (similar to current Sembcorp Marine share price). With the onset of COVID-19, Medtecs share price (SGX: 546) turbocharged to high heavens. Those who exited at the highest price would have laughed their way to the bank. On the other hand, those who entered at the highest would have lost their pants when the stock crashed.

Medtecs share price

Buying into a hype always carry risks but I have to be honest with readers of SG Wealth Builder. When Medtecs share price (SGX: 546) was surging in 2020, I was actually contemplating to adopt a “hit-and-run” strategy for this counter. Ultimately, after much consideration, I chose to invest in AEM instead. The reason for writing this article is because a long-time Lifetime Member of SG Wealth Builder has requested an insight on the fall of Medtecs share price (SGX: 546).

Whilst it is expected that interest in Medtecs share price (SGX: 546) would cool with the improving COVID-19 situation, it is unclear to me the trigger for the swift collapse in August 2020. Back then, the pandemic was still raging globally with no vaccine being developed. Demand for Medtecs’ products, mainly personal protective equipment (PPEs) skyrocketed as hospitals and public institutions stockpiled PPEs to fight COVID-19. Against that backdrop, it certainly seemed that the sky was …

Read more

Singtel share price (SGX: Z74) to rocket to the moon!

LIFETIME MEMBERSHIP It seems that winter may be over for Singtel share price (SGX: Z74). The counter has been on a bullish form in recent weeks following the announcement of its A$1.9 billion divestment of Australia Tower Network (ATN), a wholly-owned subsidiary which operates Optus’ passive telecommunications tower infrastructure. To put the icing on the cake, Singtel is also creating a regional data centre to capture digital growth. Has Singtel share price (SGX: Z74) reached a turnaround?

Singtel share price Z74

Singtel share price (SGX: Z74) has been on such a trashy form for the past two years that many investors have been left wondering will there be light at end of tunnel for this counter. Nevertheless, the revelation of three new pivots by CEO Yuen Kuan Moon on 27 May 2021 provided much hope for investors. The latest deals affirmed the management’s resolve to execute the CEO’s vision for Singtel growth.

In my previous article, it was highlighted that Singtel’ strategy is to focus on 5G network business, transforming NCS into a B2B powerhouse in Asia and divesting the telco infrastructure assets. Indeed, for the ATN divestment, the management shared that the proceeds will be used to fund “the rollout of 5G and other growth initiatives, including expanding the B2B digital services business in Singapore and Australia through NCS”. In my view, the latest move demonstrated management’s discipline in executing its strategic growth plan and this should bode well for Singtel share price (SGX: Z74) in the coming months.

In the short-term, the catalyst that will really propel Singtel share price (SGX: Z74) should be the divestment or listing of the telco infrastructure assets. Optus’ divestment of its tower assets was expected to close before the end of the year. According to the management, Telkomsel, Airtel and Globe had also completed similar transactions …

Read more

Sembcorp Marine share price (SGX: S51) in $500 million mystery

LIFETIME MEMBERSHIP It turns out that the mandatory offer by Temasek Holdings is a “non-event” for Sembcorp Marine share price (SGX: S51). Following the controversial $1.5 billion rights issue, Temasek Holdings’ stake in Sembcorp Marine increased to 46.6%. Consequently, this triggered the mandatory general offer in accordance with Rule 14 of the Singapore Code on Takeovers and Mergers. True to its words, the offer price from Temasek Holdings remains at $0.08 per share. Given that the current Sembcorp Marine share price (SGX: S51) is higher than the offer price, the chance of privatisation is extremely remote.

Sembcorp Marine share price S51

There has been so many twists and turns for Sembcorp Marine share price (SGX: S51) that investors must feel like the past two years had been a terrifying nightmare. Question now is when will this nightmare end? Will there ever be light at end of tunnel for Sembcorp Marine share price (SGX: S51)?

The next baptism of fire for Sembcorp Marine share price (SGX: S51) should be the upcoming proposed merger with Keppel Offshore and Marine (KOM). As part of the deal, Sembcorp Marine and KOM will combine to form a new listed entity. The newly listed stock would provide an opportunity to “reset” the ailing Sembcorp Marine share price (SGX: S51). Nonetheless, a lot would depend on the valuation by the investment bank working on the merger. And then there is no guarantee that the merger will even take place as the MoU is not binding.

Sembcorp Marine share price (SGX: S51) thrown under the bus

Sembcorp Marine share price plunging to $0.05?

Sembcorp Marine share price faces takeover offer

At the centre of the controversy must be the $500 million that Keppel Corp stands to receive if the deal goes through. And what could be the impact on Sembcorp Marine share price …

Read more

SGX share price (SGX: S68) in biggest crisis

LIFETIME MEMBERSHIP Can CEO Loh Boon Chye make Singapore Exchange great again? Since the onset of the pandemic, SGX share price (SGX: S68) rocketed from a low of $8.20 in July 2020 to a mighty high of $12.05 on 4 August 2021. The bubble finally burst for SGX share price (SGX: S68) when the bourse announced a full-year financial result that saw net profit dropping 6% on year-on-year basis. While the drop is not alarming, the market reacted – SGX share price (SGX: S68) crashed by a staggering 18% by the end of August from the high of $12.05.

SGX share price S68

To put things into perspective, SGX share price (SGX: S68) thrives on crisis. In fact, the previous record high of SGX share price (SGX: S68) was $15.90 recorded in October 2007. That was the period of the Great Financial Crisis. Back in 2007, the average daily trading value was $1.6 billion and there were 46 new equity listings. Fast forward 14 years later, the average daily trading value shrunk to $1.4 billion while there were only 10 equity listings.

Yet the most worrisome thing about SGX share price (SGX: S68) is not really the short-term volatility. Rather, it is the devastating long-term decline of SGX that gives investors the jitters. Being a financial hub, it is a given that Singapore has a vibrant stock exchange to stay competitive in the region. Yet the dearth of IPOs and the horrifying valuations of listed companies in Singapore led to a slew of delisting in SGX in recent years.

Although SGX’s decline has been on-going for a long time, the decline was notably significant since 2015, which coincided with the departure of the previous CEO Magnus Bocker. When CEO Loh Boon Chye took over the helm, SGX was already struggling to deal with the …

Read more

AEM share price (SGX: AWX) to rocket with Nasdaq IPO!

LIFETIME MEMBERSHIP When former Minister of Trade and Industry Chan Chun Sing visited AEM last year, it was a harbinger of things to come for AEM share price (SGX: AWX). With Temasek Holdings now officially onboard as the biggest shareholder of AEM, the narrative for AEM share price (SGX: AWX) has changed. For a Singaporean company to make it internationally, we need a Singapore Inc approach. After all, AEM is a home-grown company. The next step forward should be a Nasdaq IPO to enhance AEM’s visibility.

AEM share price AWX

The entry of Temasek Holdings, coupled with the presence of institutional investors like Morgan Stanley, Aberdeen Standard Investment (Asia) and Malaysia Employees Provident Fund, also means that the stars are finally aligned for AEM to IPO in Nasdaq. If so, AEM could be the first homegrown company to be dual-listed in SGX and Nasdaq in recent years, thereby turbocharging AEM share price (SGX: AWX) to high heavens. Non-executive Chairman Loke Wai San, who had rescued AEM from collapse in 2012, should know that the support from Temasek Holdings will be helpful in the IPO journey.

Temasek’s investment comes at a time when Temasek, MAS, EDB and SGX recently announced initiatives to help high growth technology companies raise funds through dual-listing in overseas exchanges and SPACs. Ironically, the move to assist homegrown tech companies came after a number of Singaporean companies like Grab and Razer chose to list in overseas markets. Against this backdrop, my view is that a dual-listing for AEM should be imminent within the next six months, providing plenty of fireworks for AEM share price (SGX: AWX).

AEM share price rockets with Temasek Holdings!

AEM share price recovering from bloodbath

AEM share price dented my portfolio

Speculative rumours of a potential Nasdaq IPO had been ongoing for two years. The market rumours …

Read more

SIA share price (SGX: C6L) faces ambush from another cash call?

LIFETIME MEMBERSHIP Will SIA share price (SGX: C6L) do a Sembcorp Marine? The latter recently concluded a second billion dollars rights issue that took place less than a year, causing the share price to bomb out to less than $0.10. On 16 September 2021, SIA updated “that the remaining S$0.6 billion of the gross proceeds of S$8.8 billion raised from the 2020 Rights Issue has been applied towards aircraft and aircraft-related payments between 1 July 2021 and 1 September 2021”. Against this backdrop, investors must be wondering if another cash call is on the way.

In one year, SIA burnt through $9.3 billion of cash (including $500 million which had been used for the redemption of SIA’s 10-year Fixed Rate Notes on 9 July 2020). While there is more than sufficient cash for the airline to sustain till the end of this financial year, what will be the situation for the next financial year, which will begin in March 2022? Will there be another round of rights issue that rupture the form of SIA share price (SGX: C6L)?

SIA share price C6L

SIA share price rises from ashes

SIA share price in explosive destiny

SIA share price smashed into rock

The hallmark of Singapore Inc is its ability to plan ahead. This is no different for SIA. Given that the new financial year is less than six months away, it is timely to ponder the prospect of another round of capital call by the management in 2022. You certainly don’t want to wait until the company faces a potential liquidity crunch then you start to initiate a rights issue. That would be a perfect recipe for disaster for SIA share price (SGX: C6L). In fact, this was what happened to Sembcorp Marine.

Looking back, it was really a “touch and go” situation for SIA …

Read more

DBS Group Holdings share price (SGX:D05) in $10 billion IPO?

LIFETIME MEMBERSHIP It could be an event that will move Heaven and Earth, at least for DBS Group Holdings share price (SGX:D05). In a bombshell revelation, DBS CEO Piyush Gupta mentioned in the transcript of DBS second quarter 2021 conference call that the bank is looking at unlocking one of its assets, Remit, through IPO for an eye-popping $10 billion. If the plan does materialize, it will be one of the largest IPOs to grace the Singapore stock market in recent years.

In 2019, I wrote that DBS Group Holdings share price (SGX: D05) will hit $50. Though that day has not arrived, I do think that it is only a matter of time that DBS Group Holdings share price (SGX: D05) reaches this incredible milestone. On 10 August 2021, DBS Group Holdings share price (SGX: D05) hit a record $31.70 after Monetary Authority of Singapore (MAS) lifted the dividend restrictions on local banks. On the basis of its current run, it is not impossible for the counter to hit $40 by year-end if the bank continues to deliver good financial results and lists its digital assets.

DBS Group Holdings share price D05

Question now is when will CEO Piyush Gupta set fire on DBS Group Holdings share price (SGX: D05) by unleashing the Remit $10 billion IPO? It is not CEO Piyush Gupta’s style to talk up prospect of his company nor do I think that he made that comment out of jest. Most Singaporeans know that Piyush Gupta puts his money where his mouth is. His purchase of 200,000 DBS shares for $2.8 million in February 2016 was driven by his conviction that the shares were grossly undervalued. Indeed, his move was later vindicated as the DBS Group Holdings share price (SGX: D05) climbed by 100% within two years.

DBS’ plan to list …

Read more

Sembcorp Marine share price (SGX: S51) thrown under the bus

LIFETIME MEMBERSHIP For Sembcorp Marine share price (SGX: S51), is it a case of light at end of tunnel or light from an on-coming train? Given the devastating meltdown of Sembcorp Marine share price (SGX: S51), investors can ill-afford to ignore this rhetoric. The $1.5 billion announced on 24 June 2021 had erased more than 50% from Sembcorp Marine share price, causing the counter to plunge from $0.17 to $0.08. Question now: is there any value left in Sembcorp Marine share price? Make no mistake, sometimes cheap does not mean value.

Sembcorp Marine share price S51

Investors who had subscribed to the 2020 and 2021 rights issues should be betting on the recovery of Sembcorp Marine share price (SGX: S51). While that day may eventually come, it could be a long wait. To put things into perspective, the oil and gas industry suffered a severe downturn since 2015 due to the collapse of oil prices and emergence of US’ shale oil. The pandemic arrived to cause a protracted downturn for Sembcorp Marine. In addition, the long-term demand for crude oil is likely to drop as countries commit to the United Nations Framework Convention on Climate Change (UNFCCC) pact signed in 2015.

Looking at the financial track record, the road ahead will be challenging for Sembcorp Marine share price (SGX: S51). Due to the series of “unfortunate events” in recent years, the Group’s financial performance had been affected, resulting in pre-tax losses of $101 million in FY2018, $177 million in FY2019 and $671 million in FY2020. The Group also recorded a substantial net loss attributable to owners of the Company of $647 million for 1H2021. Barring a miracle turnaround, the loss for FY2021 should be double that of FY2020.

Needless to say, the crisis of confidence for Sembcorp Marine share price (SGX: S51) centred on the …

Read more

OCBC share price recovers from Dr Mahathir effect

LIFETIME MEMBERSHIP It seems that OCBC share price has a strange affinity with Dr Mahathir. When Mahathir became the Prime Minister of Malaysia for the second time in May 2018, it promised to be a political fairy-tale that will be remembered for generations to come. But surely no one in his right mind could have predicted the kind of impact it would have on OCBC share price, which tumbled from a high of $13.65 in May 2018 to a low of $10.40 in October 2018.

OCBC share price

Even more bizarrely, when Dr Mahathir announced his resignation on 24 February 2020, OCBC share price crashed from $11.00 in February 2020 to a low of $8.35 in March 2020. For unknown reasons, it appears to me that Dr Mahathir has that TVB drama “Ting Hai” stock market effect, at least for OCBC share price. Although I am not exactly sure about the correlation between OCBC share price and the venerable leader, one thing for sure is that Dr Mahathir’s B40 policy has a massive impact on OCBC’s Great Eastern Holdings.

When Dr Mahathir returned to power in 2018, one of his many initiatives was the B40 Health Protection Fund, which was meant to address social welfare protection coverage for the lower income group in Malaysia. Great Eastern Holdings, the crown jewel of OCBC Bank, was affected by this policy as the insurer was required to contribute a whopping RM2.0 billion in lieu of the local shareholder requirement imposed on its subsidiary, Great Eastern Life Assurance (Malaysia) Berhad.

In my view, it is not uncommon for Singaporean companies to “pay a price” for doing businesses in foreign countries. Singtel’s billion dollar fine by India Supreme Court in 2019 was a classic example. Nevertheless, the RM2.0 billion donation by Great Eastern had weighed on …

Read more

Keppel DC REIT (SGX: AJBU) share price in mystery slump?

LIFETIME MEMBERSHIP Keppel DC REIT (SGX: AJBU)’s ascend to the Straits Times Index (STI) has been the stuff of legend in SGX mainboard. Debuted in SGX only in 2014, the data centre REIT knocked the former CapitaLand Mall Trust off the pedestal in October 2020. That spectacular feat sent Keppel DC REIT (SGX: AJBU) share price flying to a record high of $3.04. Since then, the stellar form appears to lose plenty of steam in recent months. What on earth has happened?

Keppel DC REIT AJBU

A Lifetime Member has written in to request for an explanation of the recent downtrend of Keppel DC REIT (SGX: AJBU) share price. If you are keen on coverage of other stocks, do sign up as member! For the longest time, I have been contemplating to invest in an S-REIT with special focus in data centres. Hence, I have been monitoring Keppel DC REIT and Mapletree Industrial Trust (MIT). Both counters are majority-owned by Temasek Holdings and listed in the Straits Times Index (STI). Between the two players, Keppel DC REIT stands out for being a “pure-play” data centre REIT but the acquisition of M1 started to complicate things.

Year-to-date, Keppel DC REIT (SGX: AJBU) share price has slumped by 9.32%. Comparatively, its peer Mapletree Industrial Trust share price increased 1.74% on a year-on-year basis. Indeed, the subpar form of Keppel DC REIT (SGX: AJBU) is a concern among many investors. But to be fair to the S-REIT, the counter is still trading at 25% above the levels of pre-pandemic. Looking back, the onset of pandemic has triggered a surge in e-commerce activities and digital transformation of businesses. As a result, Keppel DC REIT (SGX: AJBU) rocketed to high heavens in 2020.

Then again, I have always stressed that what goes up must surely come down. …

Read more

Wilmar share price plunged 25%

LIFETIME MEMBERSHIP In my last article on Wilmar share price (20 June), I wrote that this counter could face huge turmoil in the short-term. Indeed, Wilmar share price continued to meltdown since 20 June, falling from $4.55 to the current $4.16. At current trading level, Wilmar share price is 25% off the 5-year high of $5.57 seen in February. Should investors run for their lives?

Wilmar share price

A Lifetime Member has written in to request for an explanation of the downtrend Wilmar share price. If you are keen on coverage of other stocks, do sign up as member! In 2020, I invested in Wilmar and exited at a profit of $2,700 in early 2021. My lowest entry for Wilmar share price was $4.84 and I exited at $5.20. While I did not exit at the highest point of $5.60, I have no regrets selling my Wilmar stocks. In life, you can never sell at the highest price. I am happy as long as I made decent profits. Although I am not vested in this counter any more, I am still bullish about Wilmar share price in the long-run because of the business strategies undertaken by the management.

The current train-wreck for Wilmar share price may be puzzling and gut-wrenching for many retail investors. After all, the Group has just released a set of stellar 1HFY2021 that saw net profits rocketed 23% to US$751 million. It certainly seemed that nothing can go wrong with Wilmar share price. However, I have always cautioned that the big boys call the shots in Singapore stock market. This is especially so for Wilmar share price as the counter is one of the Straits Times Index (STI) components. Due to this, Wilmar share price is very sensitive to the movement of institutional fund flows.

According to data …

Read more

OCBC Share Price (SGX: O39) in Ring of Fire

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.

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. In the week of 9 August, $74.4 million of OCBC share were net sold. This is also the week that saw OCBC share price fell the steepest – from $12.46 to $11.90. In the week of 16 August, the selling continued, with $58.2 million shares being net sold.

The embattled OCBC share price triggered the management to embark on a series of share buybacks from 17 to 25 August. As of 25 August, a total of 11,883,100 of OCBC shares had been purchased from the market. In spite of the massive share buybacks, …

Read more

Singtel share price seeing daylight?

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 price

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. That was really the darkest chapter for Singtel share price.

Subsequently, the digital bank license win restored some level of confidences among investors. My entry price for Singtel share price was $2.60. Since the onset of the pandemic, Singtel share price had never crossed this level. Now that our population has reached a high level of vaccination and an endemic is in sight for Singapore, I do think that the worst is over for Singtel share price. Furthermore, with a new CEO and a strategic reset in the businesses, the growth narrative has changed for Singtel. In this …

Read more

Nanofilm (SGX: MZH) share price in crisis

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.

Nanofilm share price

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. Given that Nanofilm has just been listed in October 2020, the departures of the former CEO and COO caused a crisis of confidence in Nanofilm share price.

To rescue Nanofilm share price, the management went on the offensive and conducted shares buybacks. In total, 3.04 million of shares had been bought back at this point of writing. It remains to be seen whether the shares buybacks will provide the kind of support needed for Nanofilm share price at this moment. This is because investors must be wondering if Nanofilm …

Read more

DBS Group Holdings share price in China war

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.

DBS Group Holdings share price

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. The lower allowances enabled DBS Group to clock in higher profits. As we shift toward endemic, the level of allowances will likely to continue falling.

Of more concern for investors should be the dismal performance of net interest income, which fell 12% year-on-year to $4.2 billion. The low interest rate environment continued to roil top-line from the interest income. If not for the strong performance from its …

Read more

OCBC share price mumbo jumbo with “Golden Triangle”!

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

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. In fact, the series of share buybacks in March and April 2020 enabled OCBC share price to make a swift recovery from the low of $7.80. As of 17 June, a total of 9.08 million of shares had been purchased from the market. For perspective, both DBS Group and UOB have not conducted any shares buybacks in 2021.

Incidentally, the share buybacks also occurred at a time when Helen Wong took over as the Group CEO. With a recovering OCBC share price, it seems that the new CEO started her tenure at a positive note. …

Read more

AEM share price rockets with Temasek Holdings!

NDP Special Offer! 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.

AEM share price

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!

AEM management is known to time its sales guidance and positive announcements to perfection. But the shares placement of 26.8 million to Temasek upended the entire market. Investors were bracing for the free fall of AEM share price in the early morning of 6 August. Instead, they were kept in deep suspense by the surprise trading halt. Subsequently, the shock announcement of the $103 million investment from Temasek Holdings sent AEM share price rocketing from $3.95 to a high of $4.20.

In return for the investments, Temasek Holdings will nominate Russell Tham to …

Read more

Keppel Corp share price firing on all cylinders!

NDP Special Offer! 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.

Keppel Corp share price

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. Hence, I do think that in the next few months, Keppel Corp share price will stay bullish.

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. I am not vested in Keppel Corp at the moment. Whether Keppel Corp share price will surge or collapse has no impact on me. Thus, this article is not meant to induce readers to make any form …

Read more