M&A

Dear faithful blog readers,

I am pleased to announce that Starfish Trading School is now part of the Ninja Trading Group I have agreed to be one of the contributors there instead of running my own school. The archives here will still be kept here for reference.

Having said that, the Starfish Newsletter has been very active with good participation from participants. If you want to keep in touch, you can join us there.

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Major Revamp

Dear all,

i am doing a major revamp on my blog so that i can better share the information which you need with you during trading hours. I am testing out the email updating service and if it is satisfactory will launch the new service this week.

Cheers.

Starfish Swing Fund Update

Yesterday i sold off all my portfolio shares.

 

20 lots of Bio Treat at 129

20 lots of China Sky at 105

30 lots of Beauty China at 865! (can you believe it?)

30 lots of C&O at 495 (can you believe it?)

 

These must be stupid mistakes which i make of selling early again. I would have make much more by selling one day later.  

 

The reasons for selling is actually very stupid. It is because I was too busy to monitor the market this week as i had tons of work and meetings to attend, so when i see a correction on China Sky, i just throw everything away as i didnt want to be caught in a swift selldown. Isnt that stupid?

 

Anyway, i will update my Starfish Swing Fund again later this week. While the return from Jan to April has been 15%, somehow i got this feeling that i have 'underperformed' against the market! 

 

This morning Kim Eng recommended Asia Tiger as laggard play while OCBC recommended Stamford Tyres again. These stocks immediately gapped up. While i wont encourage you to chase the stocks, it once again reinforce my trading methodology of trading good FA stocks that analysts cover because you need them to help you push the share price up.

 

I would be very careful with the market whenever i see the following "signs":

 

- stocks gapping up whenever a brokerage house covers. (btw, these brokerage houses are conflicted)

- brokers using the valuation PE of 2007 and 2008 figures when 2006 is not even half way there.

- lousy pennies starting to run

- someone who has never buy shares start to get interested in the market.

 

Anyway have a good trading week.

---

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Hong Guo Versus China Hong Xing

Hi Investoman,

As requested, a good reference point for you regarding Hong Guo.

Cheers.

Shanghai Turbo

I had a good 'scolding' from my trading khaki via the MSN last night. He said i have been selling my stocks too early for many of my stock picks and i should have more conviction in my stock picks. My argument to him was that i have less money than him and i was trying to reduce my exposure to China stocks. Anyway, he told me i will 'regret' selling Shanghai Turbo and i tend to agree with him. :( sian liao lor.

Starfish Swing Fund

Shanghai Turbo ~ I sold my 50 lots at 45 cents today. The reason for selling is actually more from a risk management point of view as I am too 'exposed' to China stocks, so i was trying to cut that exposure and risk. The moment i sold, it broke the 46 resistance and closed at 47! Since i have already sold off, i will not do up the chart of Shanghai Turbo. You can find the most updated performance of Starfish Swing Fund here.

Beauty China ~ Still holding on to it but i must say i hate the 'never-ending' sellers that appear. It is in a 'triangle', if the share price can break above 87 convincingly, it should head towards the 94 cents target. The substantial shareholder has increased its stake again!



Bio Treat ~ Still doing fine and if it can break 128, it should head towards 140 zone. CIMB has a 144 target and if it breaks 128, the technical target will be around that 140-145 area.



China Sky ~ View earlier is unchanged. See if it can break the 102 level :)

China Sky

China Sky ~ SSF initiated 20 lots in China Sky yesterday. The rationale for making the trade were as follows:
(1) Quek Leng Chan ("QLC") bought another 31m shares at 945-95 average and increased its stake from 7.4% to 11.75%.
(2) The fundamentals of the company was actually quite impressive with healthy margins and earnings growth. The PEG (price-earnings-growth) for 2006F is only 0.26! (Below 0.5 means undervalued).
(3) The technical chart points towards 102 target and 118 target should 102 gives way.

Charts Request (FATA)

My trading khaki who trades full time has volunteered to help me do up the Fundamental and Technical analysis for those who need help so that i can concentrate on running my school and Starfish Swing Fund. BUT he can only do it at night when he is not trading. So when you drop your request at the shoutbox and he will try to do it at night. If he missed your requests, just shout somemore. He helped me with Memtech and Asiapharm as requested by XiaoXiang.

What is FATA? It means doing a Fundamental Analysis and Technical Analysis on the stocks.

Starfish Swing Fund

Lets just do a quick update (charts will come tomorrow, very tired now) on the Starfish Swing Fund. SSF bought the following stocks today:

(1) Bought 50 lots of Shanghai Turbo at 43 cents today.
(2) Bought 20 lots of China Sky at 96 cents today.
(3) Bought 20 lots of Bio Treat at 123 today.

Still holding on to my Beauty China.... hate to see the strong selling. Will update with charts tomorrow...

Regards

New Kid on the Blog

While i have already given up on Google Adsense, one of my old trading khaki who shared the same methodology with me actually started his own blog!! We were both very heavily influenced by the 'teachings' of Dr Alexander Elder who wrote the book "Trading for a Living" and I promised to give him a little help to boost his traffic but please do not 'click' on his ads. He doesnt need your clicks, he just need your traffic....

He was telling me to buy Want Want a few days back but i was too busy writing my appeal letter (which by the way, Decipher, has already been REJECTED!).

Beauty China cheong ah!! :)

News on the Go ~ 12 April 2006

1.CDL - Macquarie downgraded CDL to Underperform with 25% downside based on NAV of $8.15. Prefer Cheung Kong & HK Land for property plays or AREIT & CMT for S-REITs.

2.CWT - Takes 25% stake in thai warehouse leasing firm for $3.06m & sees growing demand for quality logistics facilities in Thailand. BUY.

3.DBS/UOB - Macquarie recom BUY with tgt value @$19.00 for DBS & $18.00 for UOB!

4.F&N - Proposes 1:5 stock split.

5.HTL - DBSV recom BUY with tgt value @$1.71 (XB 1:4 on 7/4) on 10X FY07.

6.INNOVALUE - BNP recom BUY with tgt value @$1.12 on 12X FY06 with strong orders from TI for its auto division!

7.KEPCORP -Completed 1st Super B class jackup rig for Sinvest ASA to drill in deeper waters & harsher conditions. Citigroup upbeat on offshore sector & reiterates BUY on Kepcorp with tgt value @$$16.10 on 19X FY06.

Broker UOBKH Citi
Tgt Value $15.50 $16.10

8.KEPLAND - 1 K-REIT Asia for every 5 KPLD shares approved at EGM. XE on 13/4.

9.KS ENERGY - Indon tycoon Kris Witakes 29.98% stake in KS Energy or $3.05p.s.(XB $2.54p.s.) & 16.4% deemed stake in Aqua-Terra. Wiluan has acquired 29.2% stake in SSH earlier & owns Indon-listed PT Citra Tubindo which manufactures drill pipes.

10.OCBC - Will book $260m gains in 3Q on sale of Kim Seng Rd site to Lippo Grp. awaiting sale of 36% stake in Robinson.

11.OUE/UOL - Analysts speculate that OUE may be sold as a hotel co. after $73m asset swaps by selling OUH & Change Alley Aerial Plaza to a JV with UOL! Move seen as a precursor to UOB cutting its 57% stake in OUE. Sold 26.1m UOB shares in open mkt to fund a $2.00 special dividend & still owns 23.3m UOB shares! FY05 profit +5X @$64m & recom final 6 ct DPS less tax, special $2.00 less tax & special TE payout of $1.60. XD 19/4. NAV rises to $9.89p.s.

12.OLAM - Russell AIF pares stake from 8.33% to 7.67% after 31.96m shares placement @$1.65p.s.

13.SCI - Sembcorp Utilities bags US$1.35b Abu Dhabi power & desalination plant deal.

14.SMM - Won US$165m jack-up rig deal from Larsen Oil & Gas. Rig orders catching up with Kepcorp's est US$500m conversion contract of 2 semi-submersibles to be won from Noble Drilling. Nomura & Macquarie recom BUY with tgt value @$3.26 & 43.60 respectively.

15.SGX - 3Q profit doubles to $50.1m & 9-mth profit +74% @$132.5m. DB recom BUY with tgt value @$4.70 & expect higher volume with the easing of clearing membership rules for banks! Stepping up efforts to develop the ETF mkt.

16.SIA - Qantas to acrap Australian airlines & focus on Jetstar with plans to start flights in Asia Pacific!