Singapore stock calls for 24 March 2017

Japan is trying to stir troubles in South China Sea.

http://en.people.cn/n3/2017/0317/c90000-9191403.html

Japan will regret this military move because it will give China the legitimate reason to send its aircraft carrier to Japan's sea.

Oxford's archives reveal Diaoyu islands belong to China.

http://en.people.cn/n3/2017/0318/c90000-9191976.html

Historical texts from Oxford's Bodleian Library show Diaoyu islands belong to China.

Japan! Please stop lying to the world anymore when China can prove that it is the real owner from its own documentations and also from Oxford's archives.

China is advancing in artificial intelligence technology.

http://en.people.cn/n3/2017/0321/c90000-9193008.html

China is focusing on AI technology because it has wide applications in quantitive finance, complementary medicine, self-driving, etc.  China manages to win the AI tournament in such a short span of development denotes its rapid advancement in this industry.

Poor APL! Taking the rap for Singapore.

http://www.channelnewsasia.com/news/asiapacific/prosecution-started-against-apl-vessel-captain-over-saf-armoured/3616394.html
Companies will be careful in dealing with Singapore government from now on especially when the business takes place in China territory.  Businesses will get whipped on behalf of Singapore whenever the relationship is rocky between SG & China.

Singapore stock calls for 23 March 2017

USA is doing the same thing (fabricated intelligence) to North Korea now!

https://sg.finance.yahoo.com/news/u-may-accuse-n-korea-030927059.html

USA is building up a case to attack NK just like it did for Iraq.

Singapore stock calls for 22 March 2017

First Ship Lease Trust is in trouble too.

FSLT's auditor has raised financial concerns because liability has exceeded current assets by about USD$180m.

We've been warning about shipping trusts.  Please read our previous posts to understand more about shipping trust.

Triyards falls about 20% today!

Triyards is also affected by Ezra's bankruptcy.  We raised this concern in our previous posting.

What could WTO do for South Korea?

https://sg.news.yahoo.com/south-korea-complains-wto-over-chinas-response-anti-033217183--business.html

SK had filed a complaint about China in WTO but could WTO do anything for SK?

WTO back-stabbed China by not granting market economy status automatically to China but China still supported WTO when USA stated it would ignore any WTO ruling.

WTO would be a useless organization if China also declared overtly that WTO had no jurisdiction.  USA and China are trying to establish a cordial relationship in April 2017 when the 2 countries meet in USA.  They will charter how the relationship will be for the next 50 years which will be of paramount importance for the world.

If WTO rules against China, China may retaliate by standing behind USA to ignore WTO ruling.  This will definitely make WTO look bad.

Rickmers will have a hard time to restructure its loans.

http://www.businesstimes.com.sg/companies-markets/rickmers-has-until-april-15-to-give-bankers-a-plan

Brilliant analysts will know that the shipping industry cannot withstand economic downturns.  Many shippers will renege on its long-term chartering contracts with shipping trusts during economic downturns because many shippers cannot survive the downturns and have to downsize.  Shipping trusts can't do anything or sue their customers because their customers won't use shipping reits anymore if they get sued.

When shipping trusts are losing customers and ship values are declining simultaneously, banks will demand the shipping trusts to top up the difference in ship values or recall the ship loans.  Therefore, it's very difficult for the shipping trusts to restructure their loans unless creditors are willing to take heavy writedowns.

Emas Offshore gives bankruptcy warning!

http://www.businesstimes.com.sg/companies-markets/emas-offshore-warns-against-going-concern-issue-after-ezras-chapter-11-filing
Ezra owns about 75% of Emas and Emas is affected by Ezra's bankruptcy.  Let's see Triyards will declare the same concern or not as Ezra owns about 61%.

Singapore stock calls for 21 March 2017

What happened to Nam Cheong today?

Nam Cheong tanked about 33% earlier in the day because of financial concerns raised by its auditor.

Let's look at Nam Cheong stock calls.

There is not a single BUY call for Nam Cheong except from Amfraser in the past.  Therefore, there is no real reason to buy Nam Cheong and retail investors would have avoided this company and suffer no real losses.  Avoid oil & gas companies because their customers cannot withstand economic downturns based on qualitative analysis.

What led to Ezra's bankruptcy in USA?

2 ship owners cancelled chartering agreements with Ezra and Ezra's invoices were piling up fast.  The shipping industry is a precarious environment and many shippers cannot withstand recessions or economic downturns.  However, this is often not highlighted by analysts in their qualitative section of their research reports.

Stock calls for Ezra.

Lim & Tan had warned about Ezra in Oct 2016 by giving an AVOID call, CIMB gave a REDUCE call in June 2016 and UOB gave a SELL call as early as August 2016.  Therefore, investors would have avoided Ezra as early as June 2016 without suffering from this mayhem (Bankruptcy).

Singapore stock calls for 20 March 2017

DBS economists are so optimistic about Singapore GDP growth in 2017.

https://sg.finance.yahoo.com/news/singapores-gdp-growth-forecast-hit-022600862.html

Let's hope DBS economists don't make the same mistake as their CEO regarding swiber and ezra.

Ezra's subsidiaries file for bankruptcy.

https://sg.finance.yahoo.com/news/ezra-files-u-bankruptcy-amid-060902748.html

It's not unexpected as Oil & Gas industry is in a doldrum.