Stock Investing and Trading Strategies

Singapore Straits Times Index – 2,741.69 (+27.03)
Volume: 1,552.5 million
Rises/Falls: 385 / 243

F J Benjamin - $0.565 (+0.02)

The Singapore stock market continues it gravity defying run with the Straits Times Index up 27.03 point on heavy buying on the 3 bank stocks.

Shares of F J Benjamin were up by 3.7% on volume surge. The buying strength was strong. The stock rebounded after finding support at the 61.8% Fibonacci retracement level of 0.525. Volume dried up and accumulation stepped in between 0.525 and 0.540.

Resistance level is at 0.620 whilst support is at 0.525.

By the way, F J Benjamin has declared a dividend of 2.4 Singapore cents. That translates to a decent yield of 4.2%. The Ex-dividend date is 6 November, 2006.

Tags: shares, stocks, singapore stock market, investing, stock-trading

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

New listing, Sino Techfibre opened at 0.850 on its debut on the Singapore Exchange today.

Sino Techfibre is a producer of microfibre and polyurethane synthetic leather in China. It is in the same industry as China Sky and FibreChem. Local brokerage, Kim Eng Securities has set a target price of 0.91 for Sino Techfibre.

According to Kim Eng, Synthetic leather products are critical intermediate goods for a wide
variety of products such as, apparels, fashion accessories, footwear, sporting goods, furniture/vehicle upholstery and luggage. The brokerage believe that the synthetic leather industry in China is a sunrise industry that is underpinned by strong demand from China’s leading status as an export leader in apparels and sporting goods and PVC substitution.

“Given the competitive landscape of the textile industry, Sino Tech is not resting on its
laurels and is proactive in moving up the value chain to produce pattern molding paper (PMP); PMP is primarily used to imprint patterns onto both synthetic and genuine leather. All of the current PMP supply in China is imported from USA, UK, Italy and Japan hence Sino
Tech will enjoy first mover advantage to produce PMP internally in China. We estimate
PMP will contribute 36% of pretax profit by FY08.” Kim Eng said.

“At IPO of S$0.565, Sino Tech is valued at 6.5x FY06E and 6.1x FY07E PE. As the key
earnings trigger will be felt in FY08 with the maiden full-year contribution from PMP, we
have valued Sino Tech by pegging the sector benchmark PE against that period. Using
6x FY08 earnings, we derive a fair value target of $0.91/share. A discount to peer basket is warranted to account for execution risks. Buy recommended.” Kim Eng added.

Other textile stocks listed in the Singapore Exchange include CG Technologies and Hongwei Technologies.