Monday, July 02, 2007

Swiber rallied strongly again

What's up with swiber man? Haha, cheong up again today! Was very happy, sitting on 110% returns already since I first go in around March. This is the 'cosco' stock of last year, so glad I'm in :) Is there a reason why it went up so much since last fri? No new broker coverage, no increased target price, no announcements, no contract wins...but the price just kept going up? Volume is above average...funds buying in? Hmm...i seriously don't know.

Most of the construction stocks went up today. The most spectacular one must be Lian beng. It broke through resistance level at 0.45 to close at 52 weeks high of 0.48. Last week, CSC and yongnam broke 52 weeks high, so I guess this week is Lian beng's turn. Really take turns to cheong huh?

It's as if yongnam, lian beng and csc are taking a race to see who reaches 0.50, 0.60 then 0.70. So far, yongnam is leading the race, with lian beng closely behind. CSC seems to be lagging far behind, climbing slowly and steadily at 0.45 today. Slow and steady wins the race, I still think CSC have the potential for much more. In order of potential, I rank Yongnam first, followed by CSC and then Lianbeng. Yongnam is first in my personal ranking because of its overseas presence in middle east. With the construction of a new steel fab plant in m'sia, I think it's poised to take advantage of the Singapore's move towards steel based construction (as opposed to concrete based construction). I like CSC because of its unique position as one of the biggest piling contractors in the region (in terms of fleet size, i believe). It's a bit localised, so that's the bad thing.

I must remember that ALL the construction stocks are for med term speculation purpose. Their fundamentals are not strong (yet...since most of them had cash flow or earnings are not strong since the last construction boom), so I will apply technicals on this intensively. If the going gets tough, I will run out of construction first. I don't plan to hold the construction stocks for long term (>10 years) as it's cyclical in nature. Might drop back to super penny status when the cycle goes down. It's important to know why you invested money in the first place.

But a bit too early to talk about running out. So far so good...even with the bad sentiment last few weeks, construction had not been beaten down, in fact some even broke new highs. Perhaps will last a few years because of the constant stream of contracts coming in for IR, MRT lines and properties. Might last till 2010 or slightly beyond. Anyway, too much soothsaying...let's move on.

Happy for my CHoffshore. After the coverage by the edge magazine, went up 4.7% to close at 0.775. Seems like the mini selling the last couple of trading sessions had finally ceased. It'll be good to see it break resistance of 0.81. Good entry point now. A lot of stocks also had good entry point, but alas, limited money to buy. Straits asia, Pac andes, money I would buy all, haha :)

Pac andes really reach 0.865...haha...tempted tempted. Might get in tomorrow...I want to make it a whole sum to 10 lots or 15 lots. Let's see.

Happy news to share :) My portfolio losses reduced now to 5.5k! haha, another 5-6 k more to go and i'll be free! Really delighted :)

Dow +100, europe a mix of red and green.