Sunday, April 25, 2010

Portfolio Comments

The portfolio edge up by 1.1% helped to some extent, good showing by Action Asia, FJ Benjamin and TPV Technology. Action Asia posted a strong 1Q10 showing (covered in an earlier post) while TPV has convincingly surged past the $1.10 mark following the close of offer.

GMG Global also reported its 1Q10 results at the close of Friday. This stock has since stagnated in terms of share price. For those who like me, bought at $0.10 thereabouts, I see the next rise in price only 3-6 months, as the fundamentals need to catch up with the accompanying euphoria.

Market Call

Friday Thursday
*ST Index 2,988.49  +7.8 2,980.69  +13.04

Volume: 1,729.7M 1,715.7M
Value: $1,413.8M $1,605.2M
Gainers/Losers: 261/243 204/297

I am guessing that Monday will be UP 5 point +/-2.5 as usual.

Actual: STI UP  14.13

Friday, April 23, 2010

From $31,075 to $60,350: Is It Possible?!?

I was having this though at night, would it be possible without adding any more cash into the portfolio, so that it can grow from $31,175 currently to $60,350 all by just leaving all the stocks in my portfolio alone?

Let us make the simplistic assumption that all this could be done if the all stocks just double in price within 1-2 years (the shorter the better). That could be my primary trigger to sell, other than STI 4,000.

Why are there some stocks that I don't not believe to have to probability of doubling from today's closing price? This probably relates to whether they are a stock for the long run.

Elite KSB: I would love to see this stock become a multi-bagger, but margins remain low. I can it hitting 30 odd cents tops with the stated time frame. I do believe that it has growth prospects but it will take sometime for its story to really catch own with the investing public, like what Techcomp has done.

TPV Technology: It is already a very big company and in a very capital intensive and competitive industry. Go Google RCA before you have any pretensions. Slightly under $2 will be a reasonable price to let go and take profit.

UOB-Kayhian: It is another large cap with almost no growth prospects other than perhaps Thailand. Nonetheless, I love it for its dividends. If things go well for a year or two, FY10 dividends may reach $0.14 per share, which based on my costs, gives me a more than 10% yield. Woot.

Too Optimistic?

What about the rest of the stocks in my portfolio? Why do I think they can double in price? Am I being a bit too optimistic?

The main reason I believe that they can double in price, is due to the low base effect. Simply put, these are mainly penny stock and doubling should not be a problem in a very euphoric market.

Am I being a bit too optimistic? Like I have earlier alluded to in my other postings, I believe that some of the stocks that I am currently holding do have that certain quality. Take Biosensors for instance, heart disease will be a really problem and Chinese people are going to need all the help they can get. 

Or natural rubber. How often due you get a multi-year bull run due to the coming of age of an extremely large and important economy. There will be a bust to every boom in a cycle, but enjoy it while it last as people get more cars and GMG Global that ride I am hitching.

Any comments?

Thursday, April 22, 2010

Tremendous opportunities in a crisis

I always like to read the pieces she writes. I think it is because BT has given her the time to more of these contemplative stuff as well as managing Pulses.

Also, I have some reports on the local F&B sector. Email me at sgxstockpicker if you fancy a read.

April 17 2010
Even in the darkest hours, step up your research and you are most likely to be rewarded


IT TURNS out to be almost the proverbial 'V'-shaped market recovery after all. From a peak of 3,875.77 points on Oct 11, 2007, the Straits Times Index plunged to a low of 1,456.95 on March 9, 2009. Since then, prices have rebounded strongly, picking up steam in the last few weeks. Yesterday, the STI ended at 3,007.19.

Still, at yesterday's close, the blue chip index is 22.4 per cent below its 2007 peak. It is, however, 106 per cent higher than its 2009 trough.

The STI, of course, represents only 30 stocks. How has the rest of the market fared? Well, it seems that there is still a bit of catching up to do for the average stock on the Singapore Exchange (SGX).

Action Asia Posts Strong 1Q10, Earnings More Than Doubles

Action Asia's revenue increased by 95% with profit after tax attributable to shareholders surging to $5.3m from $1.8m previously. The company said that the increase in top line was mainly contributed by increased orders by Philips, its main customer for its consumer lifestyle/entertainment segment.

CIMB-GK, the only brokerage covering the company reiterated its Buy rating but with a higher target price of $0.40, pegging Action Asia at slightly below 6xCY11 P/E, offering 100% upside potential. CIMB-GK believes the positive momentum will continue, underpinned by its continuous effort to deliver innovative consumer lifestyle entertainment products.

The brokerage was not entirely optimistic. It said that there was spike in other operating expenses due to greater R&D, distribution and selling, and warranty expenses as a result of the higher sales. There was also a rise in inventories when compared to 4Q09. However, this was due to anticipation of higher demand in the coming quarter.

At its recently held AGM, when asked to elaborate on the growth prospects, Action Asia's management said that last December, the company started trial runs in its new factory in Shenzhen, which has a production capacity of 10 million units, up from about 3 million in the previous rented factory.

Thus, the full effects of the new factory's enlarged production capacity will be felt from this year.

Action Asia expects the factory’s production volume this year to be 5 million units of “consumer lifestyle entertainment multimedia products”, such as portable DVD players, digital photo frames and home DVD players.

On top of that, its factory in Penang, Malaysia, became profitable last year (after a loss-making FY08) and continues to see higher orders for its in-car entertainment systems from customers in the US and Malaysia.

Monday, April 19, 2010

5 Reasons You Should Stop Looking At Stock Quotes

Do you always find yourself staring at stock quotes at home or at work, or worse, on your mobile. Stop it! It is very often a waste of time, time which you can spend to read a book, do exercise or heck find a new job. Anyway, here are 5 reasons.

1. Stock price movements get more random, when you go from day, hours, minutes, seconds scale.
2. It is bad for your eyesight if you keep looking closely at the screen
3. If stock price drops very much, it is bad for your health.
4. If prices are random and you prefer seeing good things, end-of-day quotes should have a higher chance of ending up then by the second.
5. Investing in stocks are for your retirement, so don't spend the your active working life staring at the screen!

Sunday, April 18, 2010


The silliest thing happened today when i went for my Sunday game. As we were packing up, my team mates asked if the boots nearby was anybody's. i took a bus back home, had my lunch and too my horror, realized that that pair of boots was mine!

Took a cab to and fro and that cost me $20 there about, not to mention that I have to get a replacement pair for my next week's game. No moral of the story. Just stay alert and always check your equipment before you from point to point.

Saturday, April 17, 2010

Action Asia: A Stock For The Long Run?

Business Description
The Group's principal activities are designing, manufacturing and assembling mobile audio and video entertainment products. It manufactures television/ monitor with/without Digital Video Disc (DVD) which incorporates the Thin Film Transistor- Liquid Crystal Display (TFT-LCD) technology and LCD television/ monitor with DVD. Its products are categorised as mobile entertainment (for use in automobiles), indoor (for use in homes) and outdoor (portable) products. The Group's products are marketed mainly to automobile manufacturers/dealers, automobile accessories dealers and hypermarkets in the United States of America, Hong Kong and the People's Republic of China. - Wright Reports

Stock The Long Run?
I believe that there is a lot of room to run in the current stock market but I review my stocks quarterly in case anything fundamental changes that affects them. I don't think that Action Asia is a stock for the long run (20-30 years) and I am giving it 3-5 years, assuming a 10 year up market in equities (possible, possible).

There is upside for the stock not only because it has recently increased its capacity in Shen Zhen but also, Action Asia is serving the China Auto market, which I have mentioned in earlier posts, is going to be growing at a fast clip. This will possibly increase inter-province traveling and hence the need for on board entertainment.

However, as a consumer electronics, margins will diminish and Action Asia's staying power will depend on its size, which unfortunately, cannot be compared to other existing competitors already in China. A quick look at the LCD panel industry and you will see the consolidation that is forcing smaller players out, giving the bigger players significantly largely capacity and pricing power.

Friday, April 16, 2010

16 April 2010 Portfolio

GMG Global seems to have stepped off a pace, staying at the $0.23-24 mark. Biosensors on the other hand has reclaimed its $0.80 mark due very likely to a corporate presentation in Japan or somewhere expensive.

For those who still hold on to TPV Tech (like myself), it has made some considerable gains climbing past the $1.00 mark. Do I expect better things to come from this LCD panel maker? Yes of course!

I have to be mindful though, that Action Asia is also doing the same thing (though its customers are much different).

Looking ahead for next week, I expect there to be little excitement in terms of trading volume. I expect catalysts for the coming week to be from some of the blue chips which are and have been posting results, although the Singapore market should be taking its cue from America.

STI Will GO DOWN 5 points

As part of my experiment to show how random markets are, I will make market calls with a secret technology and then evaluate them on a daily basis when I do make the call(did I get it direction right/wrong and amount right/wrong with +/- 2.5 leeway)as well as overall (probably after 50 tries). Here it goes.

                     Thursday          Wednesday
*ST Index    3,016.94 -2.8     3,019.74 +48.14

It's going to rain outside @ 7.30am

STI will GO DOWN 5 points

*ST Index 3,007.19    -9.75

Tuesday, April 13, 2010

China Animal Healthcare Plans Dual-listing

Was going through today's filing and to my pleasant surprise, China Animal Healthcare says that it is intending a  dual listing on the SEHK!

I am definitely excited but right now, I am thinking how many shares will it place there and whether will the whole thing go through at all.

The stock has risen I think about 7cents there about prior to this announcement and any upside might have been factored in.

Moving forward, it is still waiting for that elusive GMP for one of its vaccinations and then it can bid for government contracts comes August. With 4 lots only but will monitor closely.

Full announcement on the rpoposed Dual-listing here

Sunday, April 11, 2010

Stocks With Little Trading Volumes

For those who don't know yet, here is a list of my current holdings.

1. Action Asia: 10 lots @ $0.148
2. Asiatic Group: 5 lots @ $0.086
3. Biosensors International: 3 lots @ $0.517
4. China Animal Healthcare: 4 lots @ $0.272
5. Elite KSB: 16 lots @ $0.206
6. Etika International: 10 lots @ $0.360
7. FJ Benjamin: 4 lots @ $0.127
8. GMG Global: 20 lots @ $0.096
9. Stratech: 21 lots @ $0.051
10. TPV Tech: 2 lots @ $0.514
11. UOB-KayHian: 3 lots @ $1.26

Most of them have low liquidity in terms of trading volume - Biosensors, China Animal Healthcare & GMG Global being the exceptions.

Why do some stocks have thin trading volumes? 2 main reasons are: 1. Low public float with most of the shares in the hand of the founding family. For some strange reasons, the company's founding fathers want to list their company, but are afraid that they will lose control of it. So they IPO with most of the shares placed to institutional investors, and maybe just enough to the public to meet the public float.

2. Lack of an exciting story. You might be surprise, but this happens to some of the penny stocks like Stratech and GMG Global at some points in time, mostly because their theme isn't in play. Then after the themes die down, you will find that there are days where shares hardly change hands.

I think low liquidity stocks have good upside potential. But be cautious of putting too much money on such stocks. Moderation is always the important. Because even with the proper risk management in place, you never know when you need to sell off your shares. The worst aspect of illiquid stocks really is their terrible bid ask spread that makes it hard to find a good entry or exit point.

Big cap liquid stocks should make up at least half of any substantial portfolio, preferably dividend paying as well. Too many people try to be an Arsene Wenger - stingy when buying players preferring instead to nurture them when they are young. As you know, he has difficulty getting silverware because he will never know which young guy can live up to the standards expected of them. Just a thought.

Saturday, April 10, 2010

GMG Global Annual Report 09/10: CEO's Message Sounds Good

CEO’s Statement

2009 was marked by global financial and economic crisis, and our Company encountered a very difficult year which saw an unprecedented slow down and uncertain market outlook in USA and Europe. Although the Group generated a lower profit compared to FY2008, overall we are confident of our medium to longer term prospects. Besides attending to crisis management, much attention was paid to building the Group’s core competence, integration, team building, identifying and implementing M&A targets and preparing the Company for further growth in the years ahead. At the same time, our Company has built up a significant financial strength via capital injection to support its strategy to expand its output significantly via M&A in South East Asia. We have the desire, ambition and a plan in place to double or even triple output over the next two or three years. Management is making all efforts to pave the way for the Company towards becoming a large sustainable integrated Natural Rubber (“NR”) operator of competitive strengths in the years ahead.

Rubber scenario
The Natural Rubber prices saw high volatility during 2009. It swung from a low US$1050 per ton in January 2009 after falling from a near US$3000 level in 2H 2008, to a high of US$3000 per ton in late 2009. The average 2009 prices were below 2008 average. The auto sector in North America and Europe was adversely affected but fortunately, auto market in China remained robust. China ranked before USA as the biggest auto market in the world with about 13.5 million vehicles sold in 2009. In 2009, China increased its share of the world aggregate rubber consumption (natural & synthetics) to almost 40%. We are very pleased with the timely entrance of GMG into the China market leveraging on Sinochem expertise, market position and wide established distribution network, though both our traditional markets faced a slow down in demand. Generally, the NR producers/processors in the industry during 2009 encountered unprecedented long delayed shipment take-up by major tyre manufacturers under their long-term supply contracts.

Group’s performance
The Group’s annual sales tonnages for 2009 totalled 72,754 metric tons, higher than 62,802 metric tons in 2008, with total sales of S$180,207,232 (2008:S$245,645,055). However, the Group’s profit performance was affected by lower average selling price, stronger Euro/US$ exchange rate which resulted in an increase in operational costs. The foreign exchange impact on the Group’s Euro inter-company payables and the long delayed shipments take-up by major tyre manufacturers (which caused prices differentiation between lower contracted selling prices and higher rubber raw materials procurement prices under an upward price trend) also adversely impacted the Group’s profit performance. The Group has also completed its acquisition of a 30,000 metric tons annual capacity (with 25,000 metric tons capability)processing plant in Pontianak, Indonesia on January 15, 2010 through a 75% owned joint-venture entity PT GMG Sentosa.

Continued Commitment Towards Corporate Social Responsibility

GMG is a firm believer of corporate social responsibility and the commitment to its employees in its Cameroon and Cote d’Ivoire plantations and its Indonesian factories. The Group continues to provide appropriate and applicable social amenities to its employees and family, namely housing, kindergarten, primary & secondary schools, hospital and medical care including John Hopkin’s research, microfinance, economart, funeral assistance as well as providing support to smallholders of natural rubber.

2009 was a challenging year for the rubber industry and I would very sincerely like to express my appreciation to our shareholders, customers and business associates for their trust in us and their unwavering support. In addition, I would like to thank the entire management and staff of GMG for their loyalty, tireless efforts and faith in the Company and to stand united in the face of a challenging and difficult year. We strongly believe that together we can take GMG to new heights and translate our vision and aspiration into reality.

Friday, April 9, 2010

No Prizes For Guessing

Two stocks did very well this week - Biosensors almost climbing back to $0.80 and GMG Global which has a good week with the press all over it. Next week Wednesday will be MAS policy meeting, so that's where some action might take place.

China Animal Healthcare too had a good run staying above $0.30. No catalyst in sight and it could be due to rotational interest in S-Chips since Sound Global announced dual-listing.

TPV Technology: Some Risks Involved

I realised that my exposure to stocks in the tech sector and China is quite high - China Animal Healthcare, GMG Global, Action Asia and TPV Technology. Action Asia does something more downstream than TPV Technology.

With regards to TPV Technology, there is a mandatory offer of HK$5.20 which has just become unconditional. I might make a boo-boo on this one, but having read the first circular (thoroughly), I believe that following the proposed takeover by China Electronics of shares in the company held by Philips, TPV Technology will remain listed.

I think it is great to have a significant shareholder aboard in the very commoditised industry of making flat panel television and pc monitors. But at the same time scary that one of companies I am holding, is being bought over (in this case the stake is enlarged) by a main land firm. There is nothing wrong with that, just that it makes me feel very exposed to China at the moment.

This led me to think about the principles of diversification. Can there really be a way where we can spread our basket of stocks? Like I have already mentioned in the first paragraph, while some stocks are in different sector, they are all exposed to the same geography. Hence when the China growth story expires, the portfolio might suffer more due to concentration?

Will post portfolio screenshots much later at night.

Thursday, April 8, 2010

GMG Global: a Wilmar in the making?

Published April 6, 2010


A SOFT-COMMODITY giant with exposure to high-growth markets and commanding a premium over its peers because of its deep vertical integration which delivers a higher return on equity (ROE), more stable margins and stronger cash flows.

That is how Morgan Stanley described palm- oil giant Wilmar International in a 45-page report on March 26.

Wednesday, April 7, 2010

Do Dividend Plays Pay?

By Aw Jie Sheng

Dividends matter and they matter a lot! Had you bought Singapore Post at the start of 2005 and held it till the end of February this year, inclusive of dividends, it would have compounded at 9.4% over the 5 odd years, against the Straits Times Index’s 5.6%.

During that time frame, Singapore Post’s management had been very generous, rewarding a total $0.357 per share to its shareholders. Stripped of those distributions, Singapore Post would have lagged the market badly, compounding at only a paltry 3.4%.

This is not a case of cherry picking. In fact, a recent Citi Investment Research report noted that in the past 10 years, equities in Asia ex-Japan have generated a compounded total return of 5.9% per annum in US dollar terms, 46% of which came from dividends.

Dividend Matters
Some formulae are in order before proceeding further. Dividend yield, the most basic metric, is calculated by dividing total dividend per share paid out during a full financial year over the stock’s current market price.

Dividend payout ratio (DPR) is more instructive as yield tends to fluctuate depending on the time of the day. This is calculated by dividing total dividend per share paid out during a full financial year over that respective year’s earnings per share (EPS).

Singapore Post, for example, paid out a total of 6.25 cents in dividends per share, when EPS was 7.7 cents in FY09. Be sure to exclude special dividends as they are one-off. Dividend payout ratio works out to about 0.8, which means 80% of FY09 profits were returned to shareholders. The importance of the dividend payout ratio will be elaborated later.

There are companies, particularly those of blue chip pedigree, that have a formal dividend policy stating the percentage of operating or net profit to be paid out. This can be found under the CEO/Chairman’s statement section of the annual report.

Even though a dividend policy is a legally binding commitment, companies that have one loathe changing it, as a downward revision or omission of dividends generally signals financial woes.

Finding Dividend Plays
To be able to consistently return profits to shareholders requires disciplined management as well as strong cash flow on the company’s side. These companies tend to be larger and/or more mature and are found mainly in the banking and finance, consumer staples, utilities and energy sectors.

Those that do have consistent and high dividend payout ratios – so called dividend plays – are likely past their growth phase. The stability in their earnings is generally accompanied by lower levels of R&D and capital expenditures. This is where we return to the dividend payout ratio.

Take the company’s return-on-equity (ROE) and multiply it by the earnings retention rate, which is one less the dividend payout ratio, and you will get the sustainable growth rate (SGR).

Again using Singapore Post as an example, based on FY09’s ROE of 59.2% and earnings retention rate of 18.8%, its sustainable growth rate works out to around 11.1%.

The sustainable growth rate is helpful in gauging whether a company’s growth plan is realistic based on its profits but it will not tell you whether a company has the opportunity to grow.

In this instance, if the opportunity exists and should Singapore Post want to grow its FY09 earnings by more than 11%, it would have to increase its net profit margins (this increases ROE) or fund future investments with debt or the issuance of new stock.

Books To Read
Modestly named “The Ultimate Dividend Playbook” by Josh Peters and “The Future for Investors” by Jeremy Siegel are great books to read for ideas and strategies on investing in dividend plays.

Peters’ book is very comprehensive and provides a detailed explanation on how to select and formulate a portfolio comprising of dividend plays, and the underlying mechanics. Be forewarned “The Ultimate Dividend Playbook” might be too textbook-ish for some and that it is focused mainly on American companies.

Siegel’s more readable account is a must-read for investors worried about the how the impending demographic age wave in developed world would impact future asset returns. While repeating his argument that common stocks are the best asset class in the long run, he highlights the importance of dividends and stock valuations as well as including international stocks in your portfolio.

For non-bookworms, the table below lists a few companies with a history of consistent dividend payments as well as relatively high yields. As usual, more research on the reader’s part should be done before investing.

*As of 10 MARCH 2010 Noon
*As of 10 MARCH 2010 Noon

GMG Global: A Hot Stock But Why?

I dont believe in technical analysis but the common sense view is that GMG Global is overbought, with the latest frenzy occurring due to another writeup on the company by BT's Ven Sree. This writeup is more provocative as he goes to label GMG Global as possibly the next - gasp - Wilmar International.

The rest of his piece was stuff he used in an earlier writeup in January on why he thinks GMG Global is poised to capture the Chinese natural market, particularly Sinochem International as its controlling shareholder and the fact that China has limited natural rubber resource.

I am not complaining that GMG Global's shares have risen too fast. However, my mind is conjuring images of buying by funds of large blocks of shares in the company. Call it coincidence, but after the piece was published, GMG Global put up its presentation slides for a Shanghai roadshow. This indicates that the writer is aware of the company's roadshows, probably because GMG Global's corporate communication or public relations has been in contact with him or has invited him for the media cocktail or luncheon.

This is no mean feat, but what takes the cake, was that he managed to slip in a writeup on the same company twice within 3 months! Other than those news pieces, I hardly see a promo piece on a particular company in BT's Hock Lock Siew appearing more than once in a short span of time. More often, rants targeting SGX's market regulator cum operator status gets such airtime. Or some corporate scandal that is really juicy, which almost often involve the beleaguered S-Chips.

For those who like me have been vested in the company since last year, congratulations for the moment. For those wanting in, I am only fearful that GMG Global's excessive valuation will only make life for your portfolio harder.
GMG Global's long term prospects need no regurgitation as Ven Sree's piece says it succinctly. More PRC cars, higher demand for natural rubber, very resourceful and influential controlling shareholder. Short term correction will definitely occur once settlement date approaches and contra trades are settled. Based on my counting, it should be say 5 trading days from yesterday, where again you can see the crazy number of shares change hands.

Tuesday, April 6, 2010

Straits Times Index Higher On Thin Volumes

My dad was telling me that some analyst said that the Straits Times inching closer towards 3,000 mark on thin volumes is not a good sign. I agree with whoever he is that the local market barometer is heading higher despite relative inactivity. I believe that this has got a lot to do with how the STI is constructed. Again there has been a piece on the papers, this time in the Straits Times, calling for a revamped of the index to exclude the Jardine Group of companies due to their disproportionate influence on the STI.

Looking out of my window, I am getting slightly irritated by the recent property developments at my place. I used to have a nice view of Bukit Timah and a little bit of town, despite staying in the North-East. However, my good view have been blocked by several high-rising condo developments as well as one HDB redevelopment project. Come to think of it, not only is my view obstructed, it is getting less windier!

Back to the original topic. I think it is great that people are worrying because it is always good to have dampeners on excessive enthusiasm. In my very humble opinion, there should be little fears that the stock market is overheating. It is taking a breather but hardly has ended its bull run from last year.

I really think that most of the bad news in the market has been discounted for. I am not saying that there will not be a debt crisis. Rather, it would not kill us the way the Lehman collapse did. I see it as opportunity, should the PIIGS dramedy unfold, as a good time to wait a bit, then buy. But this should only give slight upside.

For those who have got time, you can check on on the SGX website, the latest comments by Noble Group on the bid by Peabody. For such a huge organization, its press release really struck me as somewhat petty but but in goof humour!

Sunday, April 4, 2010

Fisher Investments On Consumer Staples

Picked up a copy of the book at the library. There are seven volumes to this series published by Fisher Investments, It starts out promising as it run through my favorite Consumer Staples sector - which includes companies that manufacture and sell food and beverages, tobacco, prescription drugs, and household products, to name a few. The guide is comprehensive in that it looks at the various  industries with in the Consumer Staples sector, their respective macroeconomic drivers, and the challenges facing companies in this sector.

But fell flat till the end as I realized that back few chapters on security analysis and portfolio management were repeated stuff from the "The Only Three Questions That Count". If you had bought Kenneth Fisher's book, you would have felt slightly ripped off. The book also draws quite a bit (at least one chapter) of research from Jeremy Siegel's " The Future For Investors" which is fair, as Siegel is indeed the authority on the subject.

Overall, I would recommend borrowing it from the library than buying it.

Thursday, April 1, 2010

1st Quarter Portfolio Review

As you might have already know, the STI created a new high on April Fools day - STI 2,943. This is somewhat slightly higher than what the blue chip index started year from. The portfolio from 31 Dec 2009 closing, along with the addition of China Animal Healthcare and Elite KSB on the other hand, gained 18.8% to the current portfolio value of $28,700 (dividends, gains reinvested), with about $100 spare cash.

Dollar wise, Etika International added the most gains. In a distant second was GMG Global which racked in gains over the past 2 weeks, but has since slipped to $0.150/0.155 mark. Elite KSB was a surprising third having gained most on 1 April on the usual thin volumes.

I am finding it a bit hard to keep track of fundamentals of the 11 stocks that make the portfolio. Overall, the most badly hit remains Biosensors International.

China Animal Healthcare: Snazzy 2009 Annual Report!

Probably from the same design team that did Oceanus Group recent annual report, China Animal Healthcare's (CAH) struck me as slightly snazzy. If you did not know, you would think that CAH was operating a Zoo!

Maybe it is a small cap stock thing doing up such eye catching covers, when I receive the annual reports from GMG Global or even the late Singapore Petroleum Company, there were quite plain, with the company's logo, a vague slogan and that is it.

In terms of share price, CAH has moved past the $0.30 mark in line with the broader market.The broader market was on steroids, gaining close to 50 points after giving up slightly as much the day before.

My outlook for CAH remains the same, relatively bullish in the medium with earnings growth from the successful receipt of certification from PRC authorities as the main share price driver. Fears of accounting shenanigans still remain, but with several institutional funds with stake in CAH, they can be useful signals should things really go wrong.

For those ardent surfers, you would also know NRA's Kevin Scully is positive on the stock. I give this stock at least 6 more months to realize the plans that its CEO has been touting, namely the mass production of the many vaccines and bidding for the relevant government contracts. If the mood is right, $1.00 is not impossible. Somewhat unnerving, fears of S-Chips might slowly slip out of our minds then.