Stock calls for 13 January 2025

Date	Analyst	Company	Last	Target	Call	Valuation
01/13/25	Lim & Tan	BRC Asia	2.58	0	Hold
01/13/25	MorningStar	DBS	44.13	46	Buy	Up from $44
01/13/25	Lim & Tan	Innotek	0.445	0	Accumulate on weakness
01/13/25	UOB Kay Hian	Keppel Pacific	0.2	0.32	Buy	DDM
01/13/25	MorningStar	OCBC	17.1	18	Hold	Up from $17
01/13/25	UOB Kay Hian	Prime US Reit	0.166	0.33	Buy	DDM
01/13/25	MorningStar	UOB	36.82	40	Buy	Up from $39
01/13/25	phillip	Zixin	0.03	0.056	Buy	DCF

Lee Kuan Yew's legacies (political ideologies) are slowly being eroded now!

We've taken cognizant of the current political phenomena in Singapore that show LKY's legacies (political ideologies) are being slowly eroded now.

Let's take a look at 2 of LKY's ideologies.

In 2013, LKY warned the existing Singapore government about helping Malaysia to develop an economic zone.

https://www.reuters.com/article/business/singapores-lee-kuan-yew-airs-concern-about-malaysian-economic-zone-idUSBRE9750JT/

What happens now?

In 2015, the former DPM Wong Kan Seng stated the importance of neutrality, which was LKY's political ideology.

https://www.straitstimes.com/politics/wong-kan-seng-neutral-singapore-can-facilitate-frank-speaking

https://www.scmp.com/news/china/policies-politics/article/1875802/no-surprises-singapores-neutrality-makes-it-venue

What happens now?

https://www.asiaone.com/singapore/we-are-not-aiming-neutrality-we-are-upholding-principles-vivian-singapores-foreign-policy

The US Fed is facing higher employment and inflation now.

US non-farm payroll : 256,000

The US Fed has 2 mandates which are employment and inflation to look after.  The US is having good employment and higher inflation expectations now.  Thus, the US is unlikely to continue to ease its rates now or else the situation will get out of control.

What to do when the US is approaching or is already in stagflation?

https://sg-stock.blogspot.com/2025/01/will-us-fabricate-its-gdp-growth-for.html

As reported, 90% of the fund managers expect the US to remain in stagflation (see above).  How are we supposed to invest during the stagflation period??

Let's take a look at the Merrill Lynch investment clock below.

According to the investment clock diagram, it is best to hold cash during stagflation so that we can have the ammunitions to invest in bonds in the reflation period.  Alternatively, you can invest in utilities during the stagflation period and cash out when stagflation has ended.

If you've invested in oil and gas during the overheat period, you can still hold on to your investments in the stagflation period.  However, you can invest in pharma & staples during the stagflation period and hold them till the reflation period.

Baltic dry index - 1048

 
Related stock: Seatrium, Cosco & Pan Ocean.

US rig count (weekly) - 584

Related stock: Seatrium & Cosco.
 

Will the US fabricate its GDP growth for 2024? - Part 2

https://sg-stock.blogspot.com/2024/12/will-us-fabricate-its-gdp-growth-for.html

Is the US having a stagflation soon?  It looks like the majority (90%) of the fund managers are expecting the US to be in stagflation.

We've already stated previously in our December 2024 post (see above) that the US was inching towards a stagflation.

What will the FED do for its January FOMC?

Let's check out the Fedwatch tool now.

From the Fedwatch too, the Fed is projected to stay put on its rates easing path.

KSH - Stock calls

Date	Analyst	Company	Last	Target	Call	Valuation
05/31/24	Lim & Tan	KSH	0.24	0	Accumulate on weakness
11/15/24	Lim & Tan	KSH	0.2	0	Accumulate

Kimly - Stock calls

Date	Analyst	Company	Last	Target	Call	Valuation
05/31/23	UOB Kay Hian	Kimly	0.34	0.36	Hold	PER12.5x FY23
05/31/23	CIMB	Kimly	0.34	0.37	Hold
12/04/23	CIMB	Kimly	0.31	0.36	Hold	PER13x FY24
12/15/23	UOB Kay Hian	Kimly	0.315	0.36	Hold	PER12x FY24
01/22/24	DMG & Partners	Kimly	0.325	0.38	Buy
02/19/24	DMG & Partners	Kimly	0.31	0.38	Buy
04/11/24	CIMB	Kimly	0.305	0.36	Hold	PER13x FY24
04/25/24	DMG & Partners	Kimly	0.305	0.38	Buy
05/13/24	CIMB	Kimly	0.31	0.34	Hold
07/22/24	UOB Kay Hian	Kimly	0.31	0.35	Hold
12/09/24	UOB Kay Hian	Kimly	0.32	0.34	Hold	PER12x FY25