Thursday, May 24, 2007

CSC reported 127.6% increase in net profit!

I was just talking about STI with any forum friend about the high possibility of STI falling since we're stuck in a bearish rising wedge formation, as posted in the last blog posting.

Today we saw that happening. STI was well supported at 3510, exactly the lower trendline supported by the formation, with ever decreasing volume. I guess we'll be seeing STI rising next week again. This rise is not a good sign either because ultimately, the formation is a bearish sign. Take heed!

STI closed at 3530, down 28 points.

Exciting news!!

1. CSC reported an 127.6% increase in net profit, with revenue increment of 18.1%. Rumors are flying that this year they are going to give dividends, but it turned out to be false. One good thing to take note is improvement in operating margins from 6.2% to 10.4% in FY07. This means more of the 240 million contract they just won will go into their coffer and less into related cost. Excellent, I look forward to it rising tmr!

CSC closed down 0.010 at 0.375.

(It better be, I'm still on contra with 20 lots of CSC at 0.385, with another 5 lots bought much earlier at 0.305. A total of 25 lots!!)

2. Wilmar had a lot of fishy things going on. I was looking at the counter around 430 pm. These are the transactions:

17:05:04 3.600 1,300,000 X
16:59:52 3.360 50,000 Buy Up
16:59:21 3.352 50,000 X
16:59:13 3.340 15,000 Buy Up
16:59:04 3.340 5,000 Buy Up
16:58:01 3.340 43,000 Buy Up
16:57:03 3.320 3,000 Buy Up
16:56:55 3.320 10,000 Buy Up
16:56:06 3.340 700,000 Buy Up
16:55:47 3.320 30,000 Buy Up
16:55:42 3.320 59,000 Buy Up
16:55:40 3.300 5,000 Sell Down
16:55:33 3.320 407,000 Buy Up
16:55:07 3.300 20,000 Buy Up

Kelong anot? At 4:55pm, the price was just 3.30, but upon at closing, it jumped to 3.34 with lots of buy ups. X refers to married deals. The most fishy thing is the closed day matching at 5:05 pm, 1.3 million shares bought at 3.60!! Incredible...what do those big boys know that retailers don't??

There's this BB trader that I know who told me that Merrill Lynch are the ones that bought the 1.3 million shares at 3.60. The funny thing is that they made an error trade!! hhaha, lose a lot of money man :)

It's so fishy they got queried by SGX for abnormal trading behaviour, really funny :)

3. This is the not so good news. Yongnam had completed the shares placement exercise to raise funds for the building of steel fabrication plant over at M'sia. The issue price of the placement is at 0.33 per share, representing a discount of 9.5% to today's closing of 0.365.

The placement is given to Halyconia Asia fund Ltd, a subsidiary of CIMB Bhd, the parent company of CIMB-GK Securities (a research firm). Tmr the new shares will start trading...sure drop to near placement level at 0.33 because value of the company is the same while shares have increased, hence diluting the price.

I can only hope much of this share drop had been factored in since they gave this shares placement announcement last week or so. Luckily I bought my 5 lots at 0.345, at least quite close to the shares placement issue price.

4. DBS had incorporated a new subsidiary - DBS(china) after getting all the approvals and license to operate in China. DBS huat already :) OCBC and UOB, I heard, are still waiting for license and approval.

5. Engwah did 675 million reverse takeover of Japanese firm Transcutaneous Technologies Inc (TTI), an R&D oriented Biotech company. They had already got a selling product, a transdermal drug delivery system, where they paste a sticker onto your skin to deliver the medication to you, instead of using needles. I'm quite sceptical of this. After their failed attempt at Crazy horse, they went into this new business. They are will sell all their cinema business and change their name after the whole thing went through. Quite interesting eh? Oh, they are going to do a share placement exercise to raise funds, at 0.38 per share, representing a discount of 6.17% from last close of 0.405.

Needs a re-valuation of this company that is always in the red.

6. Yellow page delivered not too good results. Net profits droppped 13.1%, net revenue increase 1.6%, meaning that they sell more but lose money. I also realised that 98% of their non-current liabilities are from borrowings. Highly leverage company huh? No wonder their NAV (or book value) per share is 67, so high. I wonder how they are going to survive in bad times. Anyway, they pay good dividends, time to run after I get the dividend. 4 cts per share, not too bad. A total of 7.5 cents per share given for this FY.

Dow futures at -14 now. Europe is all red.