Courage Marine: Demolished the gap resistance at 23.5c in early morning trading to touch a high of 24c. The gap resistance soon reasserted itself and the counter ended the session at 23.5c. The white candle day took place on the back of much increased volume. OBV turned up sharply, suggesting heavy accumulation. MFI continues pushing higher into overbought territory but if the bullishness continues, the index could stay overbought for much longer.
Market opens weak this morning, presenting opportunity to buy some stocks cheaper. Which ones? Any suggestions? I was thinking of Avi-tech, but the bugger still at 20 cents. NO change. The stock is cheap, though with $49 million in net cash and a market cap of about $70 million. So you are paying only $21 million for the business.
Again, i cautioned my fellow forummers. This is not a normal market correction. I have mentioned in my previous posting that 2Q looks ripe for a market correction given that DJIA is up 15% over the past 10 weeks. STI is looking tired and could not hold the 3,000 points convincingly. The Goldman scandal provides an excellent excuse for fund managers to take profit. So if you want to buy today, be prepared for a 3-6 month investment horizon.
Avi-tech made $5.4 m in FY09 (ended June 09) and NRA forecasts $7+ million for the current FY. (may be a bit overbullish.....hahahaha...cos half-time only about $2 m. Unless the 2H is very strong becos of seasonal factors, or because of strong semiconductor industry recovery. Am keeping a close eye on next set of results. )
www.nextinsight.biz/content/view/2185/60/
Tomorrow China Merchants Pacific Holdings will be reporting their 1Q 2010 results. Looking forward to their continued growth in their toll roads operations and hopefully some M&A news. 1) Company deals in a relatively stable industry of owning and operating a portfolio of toll roads. Income from toll roads (excluding exceptional items) have been posting consistent growth. 2) Company is 82.5% owned by the China Merchants Group, a PRC SOE. 3) Company has a very clean balance sheet of over HK$1 billion net cash. This will give it the flexibility to carry out toll road acquisition. 4) Company pays out at least 50% of its earnings as dividends to shareholders. Last year it gave S$0.045 dividends. 5) Trading below its NAV and EPS. A quiet and yet highly profitable company. Purchased it at S$0.615 in Jan 2010.
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I was thinking of Avi-tech, but the bugger still at 20 cents. NO change. The stock is cheap, though with $49 million in net cash and a market cap of about $70 million. So you are paying only $21 million for the business. 