Wednesday, July 11, 2007

Yongnam VS UOB.....yongnam wins!

STI didn't do too badly, given that Dow dropped 148 points last night. Even briefly went up to positive before closing lower by 25 points. Volume also much lower, a good thing. Practically, I don't see much correction at all from my watchlist. Property / banks continued its decline, bringing STI down.

All the construction stocks are so shock resilient. Cosco the mad one even went to close at all time high of 4.64. Much more than the target price I set. More about that in a separate post to wrap up my huat funds selection.

Haha, quite happy to see this TA chart posted by Decipher. It's exactly the same the chart I did for strait asia yesterday!! Even the support level is the same, with similar conclusion. Decipher see support at 1.40. with possible upside because RSI is oversold. My support is at 1.41, followed by 1.31, with possible upside because stochastics is near support level of 20%. This really boosted my confidence in my chart reading :)

Just saw the announcement that Cosco won US563 million aggregate contracts!! My god...this powerhouse just keeps winning and winning. I must get some of Cosco shares when it dipped...WHEN it dipped that is. Everyday see it cheong, really regret why I didn't buy when it was 2.60 something. But I must remember, never to chase it when it went too high, almost committed the mistake again when I was tempted to enter ausgroup when it broke out today. Wanted to buy at 2.06/2.07 but eventually decide against it. Today ausgroup closed near breakout level, 1.990.

Yongnam today halt trading, pending announcement of the court case ruling between UOB and yongnam over spring leaf tower. They just announced that UOB's appeal had been thrown out, hence yongnam won the court ruling. THIS MEANS IT JUST WON 18 MILLION!! Eh, not so happy yet....since yongnam is super punters stock, tmr 2 things can happen.

1. It cheong a lot then nobody took profit, break 0.60
2. It cheong a lot then everyone took profit, drop back near 0.555.

Haha, let's see which scenario will take place tmr. I'm only holding 10 lots, still very confidence of the prospect of yongnam (and the pending IR contracts, possibly out this month end), so I would'nt cash in. If this is CSC, hahaa, different story...I'm sure to lock in my profits first.

CIMB raised the target price for yongnam to be 0.61 on this report (link courtesy of Singapore markets). What's important is actually this paragraph:

- Positive impact in favourable outcome. Yongnam previously wrote off S$13.972m for the Springleaf Tower project in FY03, concurrent with its Section 210 scheme of arrangement. As such, a favourable court decision would result in a write-back of the same amount, less about S$3m for project billings. Meanwhile, should the 10,742 sf office property be sold in 2007 at the current rate of S$2,000 psf for the Shenton Way and Raffles Place CBD area, there could be an extraordinary gain of up to S$7m, boosting our projected FY07 net profit from S$17.6m to S$32.9m. Also, the additional cash could be deployed quickly for its new Malaysian plant or the repurchase of its steel struts.

CHoffshore also reached new high, closing at 0.88 after breaking out. Looks like it's getting more attention from investors as the potential extraordinary gain of disposing its low book value vessels gets known. Should be looking to retrace, after such a protracted up move, then I might be looking to enter another batch again.

CSC sent me its annual report. Not the first thing I received one, but definitely the first annual report I'm going to read seriously. Still trying to learn must read and read and read all I can. I heard from some forum users that the contract for IR will be out this July, so did CSC management said. Don't know true or not...I'll read it myself.

My portfolio losses getting near break even, now at -1300 now. I must get my exit plan ready to lock in my paper profit. As of today, still trying to sell my yellow page, though I reduced the price to sell at 1.38...nobody wants :(

Dow +41 now, europe all red.