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Price Action Points to More Drawdowns. Stocks to watch out for $SPY $EWS $AAPL

I did not make much changes to the portfolio but this week have been brutal in a subtle way. I highlighted in last week’s long term analysis this week should confirm more things and true enough this week’s price action shows remarkable formation similar to that in May 2008 where the market retest the weekly moving averages before turning down again.

For the bulls to win this, they had better come up with a good upward move next 2 weeks. We can still form a bullish double bottom that way.

In contrast, the STI looks to head lower to 2500. More buying opportunities coming. Things are still looking “fair”

Some beaten down good deals

  1. SingPost – been talking a bit about the new young management and shift in business direction. Their profile may be changing. Watch the next 2 quarters results to find out if the McKinsey CEO and COO can do what past predecessor failed to. Surprised me by going below $1 for a so call defensive stocks by old men and institution.
  2. SIA Engineering – Not very high yield, but very clean balance sheet and enough recurring business to enable them to last through a down turn
  3. Aims Amp Industrial Trust – Currently prefer this over Sabana. High yield, undergoing AEI on one property and 30% gearing. I don’t like Sabana buying seemingly sale and leased back assets and generally Aims Amp edges it due to recent sale of their lowest leasing property.
  4. Singtel – Still in CD mode, and really no reason why its beaten down to 3.02. People are waiting for it at 2.84. We will see if it gets there.
  5. M1 – back to 2.37. In a bull market, I would like the declining consolidating triangle formation on the price charts but 2.35 looks a very strong support and if broken might take us to 2.25. MACD indicates it is highly probable that is the direction to take.
  6. PEC – For a company with a good business with a cash holding of 62 cents trading at 68 cents, this has to be some bargain there. They are still holding their order books. This may be our chance to buy the management for near free.

I run a free Singapore Dividend Stock Tracker . It  contains Singapore’s top dividend stocks both blue chip and high yield stock that are great for high yield investing. Do follow my Dividend Stock Tracker which is updated nightly  here.


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Wednesday 30th of November 2011

Hi Drizzt,

Do you have analysis on PEC so far? Care to share?

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