Saizen REIT: Insider purchases continue.

26 May 2010:

Ms. Yvonne Ho Yuk Yee, spouse of Mr. Raymond Wong Kin Jeon, has purchased 300,000 warrants of Saizen REIT (“Warrants”) on the open market. Mr. Wong is therefore also deemed to be interested in the 300,000 Warrants owned by Ms. Yvonne Ho Yuk Yee and held by HSBC as depository agent.

Amount of consideration (excluding brokerage and stamp duties) per share paid or received: 6.5c.

Mr. Raymond Wong Kin Jeon's deemed interest now stands at 19,373,390  Units or 2.033% of current issued share capital. 

Given the weakness in the stock market which has made valuations more attractive, I have considered increasing my exposure to Saizen REIT through purchasing more of its warrants.  Warrants, however, do not get any income distribution and that is a big negative for me. 

Technically, things remain somewhat dicey as it remains to be seen if the unit price of Saizen REIT would be pushed down further by the declining 100wMA or if the support provided by the 50wMA would prevail.  If I were not informed by TA, I would have simply gone ahead and bought many more Saizen REIT units as the price retreated.  Marrying FA and TA has made me more cautious and a recent purchase made with the retreat in price was a smallish hedge.
 

Related post:
Saizen REIT: Recent insider purchases.
Charts in brief: 27 May 10 (Part 2).

Charts in brief: 27 May 10 (Part 2).

Healthway Medical: The MACD is poised for a bullish crossover with the signal line in negative territory. MFI is just above the oversold region while OBV has been in gradual decline.  Technically, not very inspiring although the 14c support has been recaptured.  This is a long term support provided by the 200dMA which has flattened.

The shorter term downtrend is obvious with both the 20d and 50d MAs declining. Overcoming the 20dMA resistance would probably see 15.5c tested as a significant resistance level.  Another chance to sell at resistance? Perhaps. Good luck to all who are still vested.

LMIR: An impressive white candle day. MFI formed a higher low and is rising.  OBV is rising. MACD has turned up towards the signal line.Without higher volume on an up day, we have to remain somewhat sceptical of the upmove but an upday is always welcomed. I would now wait to see if the upward movement continues. I expect resistance to any continuing upward movement in price at 47c which was the support level which failed on 19 May. This was rather recent and is still fresh in the minds of market participants.
 

NOL: Buying momentum has been improving with the MFI rising.  OBV has been rising strongly too, suggesting accumulation is robust. A white engulfing candle formed today after a black spinning top yesterday. This confirmed the black spinning top as a reversal signal.  Expect further resistance at $1.94 and $1.99.

Saizen REIT: It is quite obvious that there is some weakness in the short term.  If the tension in the Korean peninsula should escalate, more nervous investors might sell their investments in Saizen REIT. This, unfortunately, is not something we could have anticipated or controlled.  Fundamentally, Saizen REIT is improving over time and its income stream is stable and secure. 15.5c remains a significant support.  The next significant support is at 14.5c.

SPH: Things are turning around, it seems.  A white candle day with MFI and OBV rising. MACD has gone flat which allows the distance with the signal line to lessen. Immediate support provided by the 200dMA at $3.70 while immediate resistance is at $3.78.  Overcoming $3.78 would find further resistance at $3.82 where the fast descending 20dMA seems poised to form a dead cross with the 100dMA in the coming sessions.

Starhub: Price has not been able to recapture the 200dMA support so far. $2.14 remains the immediate resistance. Although MFI has been rising, forming higher lows, OBV has not been as enthusiastic.  This suggests that we have positive buying momentum but accumulation is weak. MACD is still declining in negative territory and the downtrend is still very much intact.

A successful break above the 200dMA would find resistance at $2.19, the top of a base formation which lasted a few months.  Upside seems limited and going long at this point seems less likely to be rewarding. Any decline in price from here should see initial support at $2.06, the neckline of a reverse head and shoulders formation seen in November 09.

"We could have had an interim bottom of some kind - had an incredibly negative spate with really big volume on the downside," says Danielle Park, president of Venable Park Investment Council and author of Juggling Dynamite. "I think the themes we're concerned about today are like the volcanic cloud over Europe. It'll blow away for a little while and then it'll come back." 
Posted May 26, 2010 05:09pm EDT by Aaron Task



Related post:
Charts in brief: 26 May 2010.

Charts in brief: 27 May 10 (Part 1).

CLSA notes S-REITs offer yield of 7.1% vs yields of 5.3% from telcos, 3.0% from market.
 
“Unlike before, where S-REITs’ dividends could see further dilution from recapitalization exercises, we would argue that with a lower sector gearing and stable physical asset yields, most REITs would not need to recapitalise further. Hence, earnings and dividends are more insulated from any possible dilution,” says the research house.

S-REITs give better yields vs telcos, market says CLSA
Thursday, 27 May 2010

© 2010 - The Edge Singapore

STI rises 1.6% to 2,739.70 at closing
Thursday, 27 May 2010

© 2010 - The Edge Singapore

Another up day for the STI on respectable volume. We will lose a trading day tomorrow as it is Vesak Day.  We can only cross our fingers and hope that global stock markets continue to strengthen tomorrow so that the STI could have a decent chance of continuing this rebound next Monday.

Courage Marine: This counter strengthened ever so slightly to close at 18.5c.  The BDI is up again at 4,209. The longer term support of 17.5c is holding as price formed a white hammer today on thin volume. I like this company's strong fundamentals. The technicals are turning up and I've bought some at 18c as a hedge.

MFI has formed higher lows and emerged from the oversold region. The MACD is turning up towards the signal line. Courage Marine might just be a laggard and might just play catch up if movement in the BDI remains favourable.

AIMS AMP Capital Industrial REIT: A rebound is underway. Volume expanded as MFI and BDI rose in tandem. The MACD has turned up towards the signal line since it started its decline ten sessions ago. Expecting strong resistance at 21.5c.  Overcoming 21.5c would give this counter a chance at retesting old highs at 23c.

CapitaMalls Asia: Volume expanded today as we have another white candle day. Price touched a high of $2.13 before retreating to $2.11.  The trendline resistance has done its job at $2.12.

MFI continues to rise, forming higher lows.  OBV is rising too.  MACD is rising in negative territory.  If the next session sees price closing above $2.12, we could see $2.19 tested as the next resistance. If this does not happen, price is likely to go lower, seeing that it is a symmetrical triangle and the downtrend could continue. I am no longer vested in this counter, having cut my losses in last week's rebound. Good luck to those who are still vested.

FSL Trust: Price has detached itself further from the lower limits of the Bollinger bands. It is quite obvious that OBV has stopped declining, suggesting that distribution activities have come to an end for now. MFI has formed a higher low and is still rising.  The MACD looks set to form a bullish crossover with the signal line, although it is still in negative territory.  The worst is probably over for this counter. For anyone who has been waiting to go long on this counter, it seems fairly safe to put in a hedge now although further volatility to the downside cannot be discounted.

Golden Agriculture: Reached a high of 52c only to close at 50.5c.  From the candlesticks, it would seem that 50.5c is an important resistance level.  Successfully overcoming this would find resistance at 52.5c and 54c.  Could it retest 56c, where we now find the flat 100dMA?

Related post:
Charts in brief: 26 May 2010.