Hock Lian Seng: Insider buying.

There has been quite a bit of insider buying going on in Hock Lian Seng as its share price plunged in recent weeks to hit a new low of 23.5c. I know Hock Lian Seng to have a rather robust business although it is in a cyclical industry. So, I decided to take a look at its numbers.





Revenue for 1H 2011 reduced 32.3% compared to 1H 2010 due to the completion of  Marina Bay Station project. Other than this, the rest of its numbers still look good.

I like very much how its cash and short term deposits increased 11.7% from $149.7m to $167.156m. Order book stands at $272m as of 30 June 2011.





Hock Lian Seng is most probably capable of continuing a dividend payout of 1.5c per share when the time comes. At today's closing price of 24c per share, we are looking at a potential dividend yield of 6.25%.

Could its share price weaken further? It could and I would like to buy at a price closer to its NAV/share which is 17.8c. Having said this, at 24c per share, it is already a value proposition, I believe.





See 1H 2011 report here.

NOL: A messy ascending triangle?

Could this be an ascending triangle I see in NOL's chart?

Although ascending triangles are usually seen as a continuation pattern in an uptrend, a breakout could send NOL's share price higher to test resistance provided by the descending 100dMA which is currently at $1.32.

The 20dMA is set to form a golden cross with the 50dMA and is likely to provide immediate support at $1.115 in case of a pull back.

MACD shows that momentum is clearly positive now while the MFI shows higher lows, suggesting that demand is strengthening. The MFI which takes into account both share price and trading volume could test the 50% line for support if volume continues to dwindle while price stays at resistance.

As NOL's share price seems to be finding a floor if not bottoming, looking at the Stochastics provides us with insight as to why it seems to be having a hard time moving higher. This momentum oscillator is, after all, more accurate in situations where prices are moving sideways. The Stochastics has risen into overbought territory.

All in all, this TA seems to suggest that buying if the share price should pull back to support is a good idea because there seems to be a bias for an upward movement in the shorter term.

Tea with AK71: Visit a sky garden.

In the last few years, sky gardens have become the rage or at least I think so. Many condominiums also have sky gardens these days and they are apparently good selling points.

The very enterprising Marina Bay Sands even charge a fee to enter their sky garden (aka SkyPark) which is probably the tallest one in Singapore at 200m above ground. Personally, I wouldn't bother paying $20 just to gain entrance.

If we want to experience a sky garden, try the one at the National Library in Bugis. I was there recently and I really like it. No entrance fee too.

I like this. Creepers growing up some pillars which reminds me of a jungle.

Pandan! This spot smells really nice and will probably stay roach free!

If you like nature but are asthmatic like me, you will like this place.

I used to have a pot of Aloe Vera at home, if you remember. ;)

Open seven days a week, this is one sky garden all of us can enjoy for free.

A view of the Hotel Inter-Continental and Illuma Shopping Mall from the garden.

Go visit and see for yourself. Have a good weekend. :)

P.S. All photos taken with my trusty Samsung mobile phone, which, by the way, is also free, or have I said this before? ;)

You might want to read these:

Tea with AK71: Aloe Vera flowers?

Tea with AK71: My Samsung mobile phone.

Cambridge Industrial Trust: Worth another look.

I was looking at Cambridge Industrial Trust's latest presentation slides. It could be worth another look as its income could bump up quite meaningfully in 2012 and 2013.

Latest numbers:
Gearing: 33.1%
(No refinancing due till 2014.)
NTA/unit: 61.7c
Interest cover ratio: 5.1x
DPU: 1.082c

What I find attractive:
1. Built-To-Suit Project at Tuas View Circuit. Completion by 3Q 2012.
2. Built-To-Suit Project at Seletar Aerospace Park. Completion by 3Q 2013.
3. AEI for 30 Toh Guan Road. Completion by 4Q 2012.
4. AEI for 88 International Road. Completion by 4Q 2013.
5. AEI for 4 & 6 Clementi Loop. Completion by 4Q 2012.
6. Proposed acquisition of 25 Pioneer Crescent.

With gearing level at 33.1%, the Trust has ample debt headroom to finance items 1 to 5 if the management should decide to take on more debt. This would mean greater distribution yield accretion.

Item 6 is to be financed with internal cash resources which means gearing level will not go up and the purchase will be distribution yield accretive, everything else remaining equal.

Buying now at 46c per unit will give a distribution yield of about 9.4%. Even with all the initiatives announced, I would like to see this yield going nearer to 10% before increasing my investment in the Trust.

See presentation slides here.