Starfish Swing Fund Update

I was listening to the newsradio 938 in my car on friday morning where it talked about the rising middle income group in China and how it is affecting the economy as they become more affluent.

I was rather crossed with myself as i had wanted to buy China Hongxing at 89 cents and Celestial at 94 cents on Thurday. If you noticed, all the stocks which i have bought, CG Tech, China Petrotech and Beauty China are all China related stocks. My view is that Chinese stocks will continue to be in play from now till the relisting of CAO in March 06, thus i am still overweight in this "China" sector. The strong debut of Luzhou is a strong indication that Investors are looking at China stocks again. I continue to load 3 more stocks today, China Flexible, Midas and Oniontech. I will go through my portfolio below.

Luzhou (Braised Porrige)

I sold off my 2 lots of Luzhou at 39 cents. I can imagine Tradesman laughing to the bank with his placement shares. :P But anyway, the strong debut of Luzhou contninue to signal the good old IPO days are definitely back. SGX would definitely loved that as i heard many Chinese companies are now checking out to be listed on SGX instead of on the HKSE.

STI

STI definitely has an interesting day. It finally broke the 2450 resistance in an ascending triangle sort of formation. My short term target is 2500 while a longer term target stands at 2600.



Beauty China

The chart looks very nice and closed at 83 cents. I am still holding on to it and my view expressed yesterday is still valid.



China Petrotech

The chart looks very nice and closed at 50.5 cents. I am still holding on to it and my view expressed yesterday is still valid.



CG Tech

CG Tech announced a decent 2005 results. I am personally disappointed with its Q4 performance as i have higher expectation but on an overall basis, its 2005 results is still good. It had announced an attractive dividend as well and its NAV is 22 cents and trading at 2005 historical PE of only 3.9x!! A simple 6x PE fair value will mean a price of 40 cents!! With 2006 prospects getting better with increased capacity, i believe that a re-rating could be on the cards if more research anlaysts cover this counter and a 40 cents target is definitely possible.



China Flexible Packaging

I bought 30 lots at 50.5 cents. I was trying to find a 'nice' looking China stock chart and decided to re-look at this counter which i bought in Jan. The chart still looks good technically and i think will retest 60 cents again.

Midas

I bought 30 lots of Midas at 55 cents. Midas is one of the few suppliers qualified to supply "Aluminium" to the highspeed railway foreign companies in China. With rapid development in the rail system, Midas should continue to do well. The chart looks well supported at 50c and may have resumed its uptrend. My view is that it will break 60 cents in the coming weeks.

Oniontech

I bought 50 lots at 24 cents and i felt that I should have queued at 23.5 cents :P The only counter which i am not sure if i had made a wise choice as technically, the stock is trading below my 3 EMAs of 13, 26, 39 and usually i dont buy the stock when they are trading below my EMAs. The only consolation is that it is sitting on its 50-day MA.

I bought because i think the substantial shareholder Vision Capital will push up the share price going forward. Small caps stocks are currently back in favour again.

Okay so long for now. It is already 2.21 AM Sunday... zzzzz.zzzz.....better get some sleep before the little rascal wakes up...... oh yeah, before i forget, DBS refunded the S$2 liao. :P