Stock calls for 25 January 2022

Date	Analyst	Company	Last	Target	Call	Valuation
01/25/22	UOB Kay Hian	Frencken	1.67	2.06	Buy	PER13.1x FY22
01/25/22	DBS Vickers	Keppel DC Reit	2.25	2.8	Buy	DCF
01/25/22	CIMB	Keppel DC Reit	2.25	2.7	Add
01/25/22	Lim & Tan	Keppel DC Reit	2.25	2.66	Hold
01/25/22	DMG & Partners	OCBC	12.3	14.8	Buy
01/25/22	Lim & Tan	Parkway Life	4.94	4.97	Hold
01/25/22	UOB Kay Hian	Starhub	1.3	1.3	Hold	DCF

What will the US FED do for its January 2022 meeting?

We haven't been analyzing the 4 US interest rates for a long time already and we will be analyzing the FED interest rates for 2022 for the very first time.

The US had created a new FED rate called the interest rate on reserve balance (IORB) which combined the previous IORR and IOER together.  Therefore, we will be analyzing the 3 US FED from now onwards.

IORB: 0.15%

The IORB has been relatively stable at 0.15% and is within the FED range of 0 to 0.25%.

EFFR: 0.08%

The EFFR had been hovering between 0.07% and 0.08% for the past few months.

On RRP: 0.05% (Fed is paying.)

On RP: No transaction at 0.25%. (Fed is receiving.)

EFFR: 0.08%

IORB: 0.15%

When the EFFR (0.08%) is lesser than IORB (0.15%), it means that the US is still under the monetary easing condition.  The high cash of US$1.71T deposited with the US FED also shows that there is excess liquidity and the banks have nowhere to invest in other profitable investments.  Thus, we do not see any stress in the US financial system and the banks also do not expect the US FED to hike its benchmark rates in January 2022 because there is no sudden spike in any FED rate.

In conclusion, the US FED is unlikely to raise its official rates in January but the FED will likely make an announcement for the rate hikes in March as time is running out to contain the high inflation.

Why did President Xi warn the FED against hiking interest rates? - Part 2

https://www.cnbc.com/2022/01/24/fed-rate-hikes-will-intensify-a-global-debt-crisis-research-warns.html

President Xi (China) had already warned the FED against hiking rates last week but the US won't listen because the FED had to safeguard Biden's election in November 2022.

Therefore, we better prepare for a financial crisis in 2022 which we had predicted previously.

http://sg-stock.blogspot.com/2021/12/another-constellation-is-aligning-and.html

SBS Transit - Stock calls

Date	Analyst	Company	Last	Target	Call	Valuation
02/11/21	CIMB	SBS Transit	2.97	3.6	Add
03/08/21	CIMB	SBS Transit	3.02	3.6	Add
05/11/21	CIMB	SBS Transit	3.06	3.5	Add
08/13/21	CIMB	SBS Transit	3	3.5	Add	PER13.2x CY21
09/02/21	DBS Vickers	SBS Transit	3.03	3.44	Hold	PB1.74x
11/05/21	DBS Vickers	SBS Transit	3	3.44	Hold
11/12/21	DBS Vickers	SBS Transit	2.98	3.39	Hold	PB1.74x

SATS - Stock calls

Date	Analyst	Company	Last	Target	Call	Valuation
01/04/21	DBS Vickers	SATS	3.98	4.5	Buy
01/04/21	Citi Research	SATS	3.98	4.7	Buy
02/02/21	CIMB	SATS	3.85	4.3	Add	DCF
02/02/21	DBS Vickers	SATS	3.85	4.5	Buy
02/11/21	UOB Kay Hian	SATS	4.09	3.96	Hold	DCF
02/15/21	OCBC	SATS	4.12	4.95	Buy
03/19/21	UOB Kay Hian	SATS	4.56	4.27	Hold	EV/Invested capital basis
05/28/21	CIMB	SATS	3.86	4.3	Add	DCF
05/28/21	UOB Kay Hian	SATS	3.86	4.09	Hold
05/31/21	OCBC	SATS	3.97	4.84	Buy
06/02/21	DBS Vickers	SATS	4.03	4.5	Buy
06/09/21	Lim & Tan	SATS	4.05	0	Hold
06/10/21	UOB Kay Hian	SATS	4.08	4.09	Hold
07/23/21	CIMB	SATS	3.87	4.3	Add	DCF
07/23/21	Lim & Tan	SATS	3.87	0	Hold
07/26/21	OCBC	SATS	3.87	4.8	Buy
09/28/21	DBS Vickers	SATS	4.16	4.5	Buy
09/28/21	OCBC	SATS	4.16	4.8	Buy
10/11/21	Citi Research	SATS	4.17	4.7	Buy
10/18/21	CIMB	SATS	4.35	4.66	Hold
10/25/21	UOB Kay Hian	SATS	4.28	4.09	Hold
11/15/21	CIMB	SATS	4.14	4.32	Hold
11/16/21	DBS Vickers	SATS	4.1	4.9	Buy	DCF
11/24/21	Lim & Tan	SATS	4.1	4.81	Buy