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StockFanatic & Team taking a break, Sharing Of Reports will resume on 3rd June 2015

Shared By Stock Fanatic on Thursday, May 21, 2015 | 21.5.15


Dear Fellow Readers and Subscribers,

StockFanatic and Team will be taking a break from 21 May 2015 to 2nd June 2015. We will  resume the sharing of Research Reports Posting on 3rd June 2015.

Hereby, if you think what we have been sharing is useful; kindly share our blog to your family and friends.

We thank you for the support.

Regards,

StockFanatic & Team

Lower oil exacerbates rig downcycle – downgrade Keppel, SMM, SCI, Vard to Sell

Shared By Stock Fanatic on Wednesday, May 20, 2015 | 20.5.15


Weaker oil view to impact drilling demand
Our global oils team lowered 2015/16/17 Brent oil price forecasts to US$58/62/65 per bbl from US$52/70/70 per bbl, and now expects oil prices to decline to US$55 per bbl by 2020. This is due to more positive oil supply expectations given shale productivity gains and OPEC production outlook. Given the weaker oil price outlook, we expect offshore drilling demand/activity to return to 2005- 06 levels, when the oil price was at similar levels.

CDW Holding Limited - 2Q15 ramp delayed to 2H15

Recap on last week's update
In our previous results update on CDW dated 15 May 2015, we highlighted that CDW's current batch of BLUs have reached the end of their product lifecycle and newer BLU models will be introduced. This transition will cause a lag in production, where fewer orders for the older BLUs are expected before orders for the newer BLU models scale up.

Deutsche Bank - Access Asia Conference highlights 2015

The following Singapore Stocks are highlighted during Deutsche Bank Access Asia Conference highlights 2015 :

SMRT Corporation Ltd - How would a fourth mobile operator impact SMRT?

Edging closer to a fourth mobile operator in Singapore
Based on recent parliamentary proceedings, we think it increasingly likely that the Infocom Development Authority (IDA) will hold firm to its commitment to introduce a new mobile operator in Singapore by as early as 2017. UBS's Asia telcos team believes the probability is high that the operator will need to roll out a brand new network, ie, not just a mobile virtual network operator (MVNO) in order to raise competition with the aim of benefitting consumers in terms of pricing or service quality, or both. By extension, the fourth operator would need to lease space to deploy new cell sites for wireless coverage, which should offer rental opportunities for SMRT on its rail network.

Singapore Telecom Sector - A 'perfect storm' in Singapore mobile

Potential entry of fourth operator could de-rate Singapore telcos 
We believe that all the factors for a 'perfect storm' are present in Singapore's mobile market in terms of the potential entry of a fourth operator. The latest proceedings in parliament suggest that the government and the Infocomm Development Authority of Singapore (IDA) may be inclined to provide an opportunity for one new operator. While the IDA has yet to announce its recommendations on the consultation paper, we believe the potential entry of a green-field operator is a high probability based on recent discussions in parliament. In the past, entry into the broadband market by new operators resulted in significant revenue impact for incumbents. The potential entry of a fourth operator coupled with an expected rising interest rate environment in the US implies a perfect storm in the sector, in our view.

Top pick for the day - Euro Stoxx 50

Will the cluster of resistances hold?


The Euro Stoxx 50 Index (SX5E) has pulled back from the cluster of resistances recently. 

Is the rally over?

Phillip Futures Gold Daily Outlook - Further space left to run – expecting gold prices to tilt downwards further until $1,200.


Gold Price Movements
Gold prices fell -1.5% yesterday to $1,207.8. The slump in the euro contributed much to the downfall in gold prices – three sharp drops in EUR/USD coincided with heavy losses in the precious metal, which occurred mostly during US hours. See graph below:

Phillip Futures Energy Daily Outlook - Natural gas’ last burst of energy allows prices to attain new highs. However, this should be the highest it can go as momentum fades.

Picture Credits : Reuters.com
Fundamental and Technical Analysis
Japan Q1 GDP turned out much stronger than expected at annualized 2.4%: Japan is one of the major importers of crude oil and growth in this region would definitely be favourable for crude demand. Although this would not cause an immediate rally in prices, we will expect to find more support for prices moving forward.

Strong US housing data gave strength to the USD; US Dollar Index spiked to above 95: In the midst of weak US economic data, the US housing data surprised the market with better than expected figures. After a series of weakening, the USD gained strength again and pushed the US dollar index above 95. In addition to this, hints of increased speed of bond buying in the coming months have caused the EUR to weaken further giving another push to the US Dollar Index. This rippled over to USD denoted oil prices and caused these markets to end in the red.

US crude inventory data to be released later at 10.30pm (Singapore Time): As usual, we wait for weekly US data to determine the current “health” of oil fundamentals. We put heavy focus on the US production because it has risen by a huge extend in the last decade and again expect production to drop or at least remain stable. We also expect US crude inventory to continue its drops. This is because refineries should continue to run at full capacity during this time of the year.

iFAST Corporation - Growing FAST-er

■ A unique proposition as an Internet-based investment platform

■ Strong growth drivers on existing platform; new initiatives to drive growth from 2H15

■ Initiating coverage with BUY and S$1.60 TP; M&A and new business ventures are key catalysts

Centurion Corp - Student-dorm venture in Singapore

■ Won tender to operate student hostel at Short Street. New market for Centurion in Singapore.

■ Small deal to test waters. Minor contributions near term. No change to EPS.

■ Catalysts from continued expansion in niche accommodation. Maintain BUY & DCF TP of SGD0.70.
**** Recommendation ****
 
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