FTSE ST REIT Index (FSTAS8670) Technical Analysis

Interest Rate impact on FTSE ST REIT Index

The index has priced in the 3 rate hikes in 2017 towards 1.5% end of 2017. As long as the interest rate hike is within the expectation, there probably will not have any knee jerk effect on Singapore REITs as a whole.

 

 

 

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Fed Fund Rate Forecast and Probability

 

 

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FTSE ST REIT Index is showing bullish breakout patterns Double Bottoms, Bull Flag and recently broke out from Bullish Pennant. Short term trend is bullish base on chart patterns.

 

 

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Long term is bullish as well after broke out from a declining trend line resistance. However, the index is currently facing a tough resistance at 780 which have been a tough nut to crack under past 9 occasions.

  • Immediate resistance = 780
  • Next resistance = 820
  • Immediate support = 740

 

 

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FTSE ST REIT Index Component Stocks

 

 

Original Post from http://mystocksinvesting.com

See other Singapore REITs comparison table here.

 

China HongXing Fundamental Analysis and Chart Pattern

China HongXing Fundamental Analysis

  • Current Price = $0.16
  • Current NAV = $0.30
  • Current PE = 15.36 (At Fair Value)
  • Rolling PE = 31.68
  • Dividend Yield = 2.78%
  • FY09 Net Profit Margin = 6.6%
  • FY09 ROA = 2.9%
  • FY09 ROE = 3.1%
  • FY09 Current Ratio = 21.3 (CASH RICH!) 
  • FY09 Debt to Equity = Net Cash
  • Net Cash per share = $0.12

What can a company do if the company is cash rich?

  1. Shares Buy Back. –> Improve EPS  –> Lower PE –> Stock valuation is cheaper.
  2. Pay Extra Dividend to share holders.
  3. As a target to be acquired by other competitor. The other company just needs to pay $0.16 per share to get $0.12 net cash per share.
  4. Acquire other company or brands to boost revenue and profits.
  5. Buy back all the shares and delist from stock market.

China HongXing Current Chart Pattern

China HongXing is currently showing a Bullish (Declining) Flag pattern. This is a continuation pattern in an uptrend. $0.155 should serve as a strong support as 200D MA support.

In summary: China HongXing is suitable for short term trading but not for long term investing due to weak fundamental. However, there may be some surprises in stock price due to the company strong cash position and the current stock price is 47% discount to the NAV.