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Charts in brief: 12 Jul 10.

Monday, July 12, 2010

SPH: A sterling set of results with a 29.9% rise in 3Q net profit to $164.6 million from $126.7 million for the 3Q ending May. Could this push price to close higher tomorrow? Immediate resistance is at $3.95.  Closing higher than $3.97 would break the channel resistance and price could go much higher then.  With momentum still trending upwards, could we see $4.08? Perhaps.




Golden Agriculture: With the price of CPO firmly in a downtrend, the fundamentals are not looking up for Golden Agriculture. Momentum oscillators are downtrending and OBV is somewhat flat. Volume has, generally, been reducing since price recovered from the low formed on 24 May at 50.5c. We might be seeing the formation of a symmetrical triangle and there is a strong probability of price going lower. Immediate support is provided by the 200dMA at 52c.




LMIR: I think Mr. Market heard me.  Closing at 49.5c means that the downtrend resistance is broken. Momentum oscillators have similarly broken out of their downtrends. We could see the price testing the next resistance at 50.5c eventually if this keeps up.





Raffles Education: It might just turn out to be a short lived rally but a rather impressive one nonetheless. Price broke the downtrend resistance by touching a high of 34c before closing at 32.5c, forming an inverted cross which is bearish. Volume is also lower today as price attempted to move higher.  However, there is no negative divergence with the momentum oscillators yet. Could we see price trying to push higher again tomorrow? Perhaps. Immediate support is now the resistance turned support 50dMA at 32c. Could this hold up? It has to if price were to move higher.




NOL: A bearish engulfing candle. Frightful but the volume is much reduced on such an ominous black candle day. Therefore, is the counter just taking a breather? If the immediate support which is provided by the merged 20d and 100d MAs at $2 holds up, this could possibly be the case. If the support breaks, the next support is at $1.94.






Related posts:
LMIR: Recovering for real?
SPH: Up channel?
Raffles Education: A spectacular white candle.
Golden Agriculture: Rebounding.

4 comments:

Anonymous said...

hi ak

i just read the financial statement from sph and i realised that under the section 9(b) Consolidated Cash Flow Statement for the Year-To-Date ended May 31, 2010 , the "Net cash used in operating activities" has been negative for 2009 and 2010. And I think its due to the "Trade and other receivables" which has been increasing.

Thus, i was wondering if thats a cause for concern to shareholders?

Heres the link to the latest financial statement: http://sph.listedcompany.com/newsroom/20100712_174024_T39_44ACE87AF9E3EE844825775E0032C579.1.pdf


regards

B

AK71 said...

Hi B,

Cash flow from operating activities has been negative so far in this financial year but it has improved quite a lot from last year. Looking at the performance in 3Q10, cash flow from operating activities was positive at $35.33m compared to -$22.46m for 3Q09. This is due largely to higher profits before tax. This is a good thing and this trend is likely to continue with the economy growing strongly.

As for the increase in the trade receivables, yes, we need to keep an eye on this. Must not let this get out of control. Management should diligently collect payments in a timely manner.

As for the increase in other receivables and prepayments, it expanded due to $287.2m paid to acquire an investment property. So, it will be classified, in time, under non-current assets together with other investment properties. So, this is not much of a concern.

I am very happy to see that the EPS for YTD 31 May is 26c compared to 18c last year. Could we expect a bigger dividend towards the end of the year? Maybe. ;)

Anonymous said...

hi ak,

once again, thx for the prompt reply.

yes, i also noticed that the 3Q10 cashflow is positive and hopefully it will remain so . anyway did they state wad kind of investment property sph have acquired ? cos i cant seem to find it anywhere on the report.

yea higher eps is gd news for shareholders.. may we huat ar!~ =D

b

AK71 said...

Hi B,

I could not find details on that investment property either but the only one I can think of is Clementi Mall which is a 60-40 JV with NTUC Income/Fairprice. This will commence operations in 1H11. If anyone reading this knows the answer, please share.

There is a good chance of a bigger year end dividend (DBSV thinks 20c is probable) but SPH might also decide to use the excess cash for other purposes. Hard to say but no harm being optimistic. :)

Good luck to us all. :-)

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