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Further weakening could see 25c tested as support. It is also where we find the 50% Fibo retracement line.
I decided to lock in some gains yesterday at 27.5c as price spiked very much higher on the back of heavy volume. I did this as, although Yongnam is a fundamentally sound company, my portfolio is too heavily loaded in the stock.
Related post:
Yongnam: Looking forward to further weakness.
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6 comments:
Good to take profit for whatever reason. :-)
Yongnam used to be in a sweet spot with its pile of unused structural steel sitting in a warehouse during the pre-MBS day.
Used to have this stock at around 22 cents. Divested away as i dont like the construction business which i deemed high risk low return.
If i ever invest in construction company, favour those with more diversified portfolio like development, building management, hotels etc.
Hi seefei,
Yongnam's numbers are actually very impressive and the dividend yield of 4% is pretty decent with a low payout ratio. Margins have been improving while gearing has been reducing.
The barrier to entry is also very high. None can replicate what Yongnam is doing on the scale that it does because the assets are just ginormous.
The more or less guaranteed stream of projects from now till 2030 gives the company earnings visibility as well.
Anyway, best to stay away from it if you don't feel comfortable with it. :)
I have sold bulk of my portfolio at 26.0 and 26.5 cents and kind of regret. Should have hold on for longer term investment.
Looking forward to buying back around 25 cents level.
Fundamentally strong company with 1cents dividend still better than keeping in Bank.
Notice large Sell order at 28 cents and 28.5 cents. Don't know whether it is real sellers or big boy trying to scare away small boy to accummulate shares.
AK, your view?
Hi David,
I believe this is one stock that really tests investors' patience.
Fundamentally, it is a good stock. No question about it.
Technically, there is resistance at 28c. I actually made an interesting observation on how the resistance/supports are in 1.5c bands. 25c. 26.5c. Now, 28c.
I was hoping to accumulate on any further weakness despite being very heavily invested, actually: See: Yongnam: Looking forward to further weakness.
My view? Technically, positive momentum is very strong and there is a chance that resistance could be taken out if this keeps up.
I still have >75% of my original long position in the stock, having partially divested to reduce what I felt was an overexposure to the stock in my portfolio. Will wait to see what Mr. Market does next. :)
Fundamentally strong that's why i still can't bear to sold the remaining stocks although now it is much less than what i initially hold.
Price movement however is slow and laggard as compare to other counters.... who knows it might shoot up to 30 cents.
Just have to wait patiently to build back my stock holding.... :(
Hi David,
Although I don't have a working crystal ball, I am almost sure that Yongnam would hit 31c a share in the next 12 months. There, I know I shouldn't say things like this but I am not WB. So, indulge me. ;p
Big economic moat. A leader in what they do. Alternatives available are not as efficient. A proven track record and a strong pipeline of projects available. A negative would be manpower constraints given Singapore's restrictions on foreign labour.
Mispricing by Mr. Market happens from time to time and I hope I would be nimble enough to jump on these. :)
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