Stock Investing and Trading Strategies

Straits Times Index: 2,714.66 (+23.05)
Volume: 1,286 million
Rises/ Falls: 383/ 211

Jadason - 0.0215 (+0.015)

In the Singapore stock market, the Straits Times Index closed up 23.05 points at 2714.66, breaking the 2700 point barrier for the first time! This was helped by the big blue chips in the banking and property sectors.

DBS Group Holdings was up $0.40 at $21.00,
United Overseas Bank up $0.30 at $17.90 and
Oversea-Chinese Banking Corp up $0.10 at $7.05.

Property heavyweights also gained, with City Developments up $0.30 at $11.20,
CapitaLand up $0.10 at 5.35 and Keppel Land up $0.25 at $5.60

Shares of equipment supplier for the printed circuit boards (PCBs) industry, Jadason Enterprise, was up by 7.5% after CIMB-GK Research issued a report, raising its 12-month price target for the stock to $0.345 per share. That implied an upside of 60% from today closing price of 0.215.

The brokerage has raised its earnings estimate for the company by 8-13% for FY07-FY08 to factor in the greater contributions from mass lamination and drilling services.

“We see catalysts from robust quarterly earnings and positive news flow from the PCB industry,” CIMB-GK said. It expects Jadason’s net profit to grow to 24.6 million SGD this year from 11.7 million last year, then to 28.9 million in 2007, and to 29.2 million in 2208. That translates to net profit growth of 110%, 17.5% and 1% for FY2006 – FY2008.

CIMB-GK believes Jadason will stand to benefit as China becomes the fastest growing low-cost manufacturing PCB hub. It expects China to overtake Japan as the world’s largest PCB manufacturing hub in terms of output by 2007.

Technically, the stock is currently in a strong up trend after breaking out from consolidation range. The price is trading above the mulitple moving averages and MACD indicator is showing sign of continuous upward momentum. However, it is likely to face a critical long term resistance price level at 0.225. Immediate support appears to be at 0.195.

Technorati Tags: shares, stocks, singapore stock market, MACD, moving-average

Straits Times Index: 2,669.55 (+2.87)
Volume: 1,161.1 million
Rises/ Falls: 302/ 317

China Printing and Dyeing (ChinaPDye) - $0.370 (+0.005)

The bull run in Singapore stock market continue today with the Straits Times Index closed at a fresh high of 2669.55.

Shares of China Printing and Dyeing Holding Limited traded to a high of 0.385 before retreating to close unchanged at 0.370 on top volume of 42 million shares.

Kim Eng Securities has initiated coverage of China Printing & Dyeing Holding Limited with a “buy” recommendation and a target price of $0.510 based on a blended valuation approach using price-earning (PE) ratio and Discounted cash flow (DCF). The brokerage projects China Printing & Dyeing’s earnings per share (EPS) to show a 26.5 percent compounded annual growth rate (CAGR) over the next three years, with return on equity (ROE) projected at 20 pct.

“Despite a short history, earnings have grown impressively in 2004-05 due to extensive overseas contacts and major shareholders’ strong support for R&D. With a strong pipeline of new products, we expect China Printing to be able to maintain its good track record. It has also identified potential acquisition targets that will give it new capabilities as well as enter new markets.” Kim Eng said. The brokerage expects the demand for printing and dyeing to be sustainable as more textile companies relocate to China and textile diversity in form and function rises.

Kim Eng forecasts China Printing & Dyeing will post 83.4 mln yuan in net profit this year from 70.3 mln last year. It sees net profit expanding further to 110.5 mln yuan in 2007 and to 142.2 mln yuan in 2008.

Price chart of China Printing shows that near term resistance is at 0.400, which is the opening price on its first trading day on the Singapore Stock Exchange.

Strait Times Index: 2,521.91 (+2.94)
Volume: 849.4 million
Gainers/Losers: 265 / 256

Advance SCT - $0.480 (+0.035)

Stock of Advance SCT moved out of the bullish flag formation on volume expansion. After hitting an all time high of $0.495 on 1 September, the share price has consolidated and retrace to $0.43. Upward momentum is picking up and the stock is likely to break out above the previous high of $0.495.

According to DMG & Partner, Advance SCT revenue growth is expected to be boosted by its growing recycling and supply chain management business. As the recycling business is generally high-volume and low-margin in nature, the brokerage house estimates that the company’s profit before tax margin will be leaner from FY2007. The estimated earnings are $13.6 million for FY2007 and $18 million for FY2008. DMG & Partner maintained their buy call for Advance SCT with a price target of $0.64 per share.