Keppel Land: Elliott Wave Observed

  • Post author:

An Elliott Wave has been formed on Keppel Land and seems that currently KepLand is trading in Wave A now. Short term Wave A target is at  least reach $3.50 which is 78.6% Fibonacci Retracement Level. Coincidently this level is also a 200D MA support. Base on the chart pattern, KepLand is bearish. Other technical indicators like MACD, RSI, Stochastic, Bollinger Band, Parabolic SAR are supporting the bearish view.

If KepLand rebounds at the 200D MA support, that possibly indicates end of Wave A and start Wave B. It is important to see whether this 200D MA support is strong enough.

Continue ReadingKeppel Land: Elliott Wave Observed

OSIM: Long Term Up Trend Still Intact

  • Post author:

Base on the chart, Osim is still trading on an long term uptrend with a resistance at $1.08. However, Osim may be pulled back in to the uptrend support at about $0.86 which is also a 78.6% FR level in the near term. Fundamentally OSIM financial performance is average.

Base on FY2009 Financial Result:

  • Current PE = 28 at $0.975 (Overvalue)
  • Sales Renevue YOY is degrading since 2006 (Big Concern to me as OSIM may be facing fierce competition and losing its competitive advantage!)
  • Net Profit Margin = 4.9%  (This is bad for a company that sell BRAND!)
  • ROA = 10.1 %  (OK)
  • ROE = 24.2%  (Good)
  • Current Ratio = 1.3 (OK)

OSIM does not meet my stock selection criteria and I view the OSIM stock price may plunge if the competive advantages cannot be sustained. We can see quite a number of competing brands in Singapore and definitely in China and price competition definitely is a headache to Osim. Osim has to reinvent itself to continue to push out more innovative products to otherwise they cannot survive in this market place. Things to watch out for: Osim has to constantly push out innovative and “WOW” products every quarter, otherwise their profit margin and sales revenue may be further eroded.

Continue ReadingOSIM: Long Term Up Trend Still Intact

Genting Singapore: Where is the Next Price Target?

  • Post author:

Genting has broken the resistance at $1.30, gap up and closed the last trading day with a bullish marubozu candle due to much better earning than expected. Probably many of you will ask how high can Genting Singapore goes and what is the next resistance. Base on Fibonacci Retracement, the next resistance is $1.51 (123.6% Fibonacci Retracement Level), followed by $1.64 (138.2% Fibonacci Retracement Level). That is the beauty of Fibonacci as it can predict the next future resistance or support levels where there is no previous history to refer to. However, be cautious on trading Genting as the chart shows Parabolic Curve again! It happens before and it will happen again! History tends to repeat itself!

Continue ReadingGenting Singapore: Where is the Next Price Target?