Micro-Mechanics - Stock calls

Date	Analyst	Company	Last	Target	Call	Valuation
01/30/19	Phillip	Micro-Mechanics	1.67	1.7	Accumulate	PER15x FY19
05/02/19	Phillip	Micro-Mechanics	1.63	1.63	Neutral	PER15x FY20

Mermaid Maritime - Stock calls

Date	Analyst	Company	Last	Target	Call	Valuation
03/19/19	DBS Vickers	Mermaid Maritime	0.084	0.06	Sell	Sum of parts
03/19/19	CIMB	Mermaid Maritime	0.084	0.158	Hold	PB0.48x CY18

Stock calls for 6 June 2019

Date	Analyst	Company	Last	Target	Call	Valuation
06/06/19	DMG & Partners	APAC Realty	0.5	0.67	Buy
06/06/19	DMG & Partners	Bumitama	0.665	0.62	Neutral
06/06/19	OCBC	Capitamall Trust	2.46	2.33	Hold
06/06/19	DMG & Partners	CDL Hospitality	1.61	1.77	Buy
06/06/19	DMG & Partners	CSE Global	0.48	0.61	Buy
06/06/19	phillip	DBS	24.27	29	Accumulate
06/06/19	DMG & Partners	First Resources	1.56	1.53	Neutral
06/06/19	DMG & Partners	Frasers Centrepoint Trust	2.52	2.25	Neutral
06/06/19	DBS Vickers	Frasers Commercial Trust	1.51	1.7	Buy
06/06/19	DMG & Partners	Fu Yu	0.19	0.24	Buy
06/06/19	DMG & Partners	Genting	0.86	1.02	Neutral
06/06/19	DMG & Partners	GSS Energy	0.069	0.08	Neutral
06/06/19	DMG & Partners	HRnetGroup	0.71	0.94	Buy
06/06/19	DMG & Partners	ISOTeam	0.23	0.29	Buy
06/06/19	DMG & Partners	Japan Foods	0.43	0.4	Neutral
06/06/19	DBS Vickers	Keppel KBS	0.74	0.8	Buy
06/06/19	DMG & Partners	Kimly	0.23	0.23	Neutral
06/06/19	DMG & Partners	Manulife US Reit	0.845	0.96	Buy
06/06/19	DBS Vickers	Mapletree Logistics	1.5	1.6	Buy
06/06/19	DMG & Partners	Moya Asia	0.076	0.1	Buy
06/06/19	DBS Vickers	Netlink	0.825	0.9	Buy
06/06/19	phillip	OCBC	10.63	12.7	Accumulate
06/06/19	DMG & Partners	OUE Hospitality	0.68	0.76	Take Profit
06/06/19	DBS Vickers	SATS	5.04	5.44	Buy
06/06/19	DMG & Partners	Sheng Siong	1.1	1.23	Buy
06/06/19	DBS Vickers	Sheng Siong	1.1	1.25	Buy
06/06/19	DMG & Partners	Silverlake	0.53	0.65	Buy
06/06/19	DMG & Partners	Singapore Medical	0.385	0.48	Neutral
06/06/19	DMG & Partners	Singtel	3.21	3.35	Neutral
06/06/19	DBS Vickers	Singtel	3.21	3.55	Buy
06/06/19	UOB Kay Hian	SPH	2.31	2.86	Buy	Sum of parts
06/06/19	DMG & Partners	ST Engineering	4	4.45	Buy
06/06/19	DBS Vickers	ST Engineering	4	4.5	Buy
06/06/19	DMG & Partners	Starhill	0.735	0.78	Buy
06/06/19	DMG & Partners	Starhub	1.49	1.72	Neutral
06/06/19	DMG & Partners	Thai Beverage	0.84	0.92	Buy
06/06/19	DBS Vickers	Thai Beverage	0.84	0.91	Buy
06/06/19	phillip	UOB	24	30.9	Accumulate
06/06/19	DMG & Partners	UOB	24	30.8	Buy
06/06/19	DMG & Partners	Wilmar	3.3	3.94	Buy

Trump is threatening China again with more tariffs.

https://www.cnbc.com/2019/06/06/trump-says-tariffs-on-china-could-be-raised-by-another-300-billion.html

China is prepared for a full-scale trade war with the US now.  The state media is using the term "trade war" now instead of "trade conflict" in China.

Do not pin any hope that the US and China can reach a trade deal in the G20 summit in June 2019.

Is G20 still relevant today?

https://sg.finance.yahoo.com/news/trade-war-weak-growth-test-063632729.html

The cold hard fact is G20 is no longer relevant today.  Why?  This is because it is G2 that decides the world economic growth and not G20.  The G18 never tries to stop the G2 trade war but joins in the trade war by fighting against the G2.

Cambodia and Vietnam condemn PM Lee's remarks.

https://www.theonlinecitizen.com/2019/06/05/diplomatic-rift-mounting-between-cambodia-and-sg-over-pm-lees-remark-on-fb/

https://www.theonlinecitizen.com/2019/06/05/vietnam-joins-in-to-condemn-pm-lees-online-remark/

It is a fact that our PM Lee doesn't understand history as well as his father.  His ignorance caused Cambodia and Vietnam to condemn SG and make SG lose face. Sigh!

Just look at PM Lee's stance on Japan's heinous war crimes.

https://sg-stock.blogspot.com/2018/01/whats-wrong-with-singapores-mindset.html

Even our PAP MP doesn't understand ASEAN history well.

http://sg-stock.blogspot.com/2018/01/singapore-has-no-future-when-weve.html

How does a Cambridge professor view China?

An impartial and objective opinion from a Cambridge Professor about China.

China is right to support Venezuela.

https://sg.finance.yahoo.com/news/xi-says-china-play-constructive-015417369.html

The UN only recognizes the elected President of Venezuela and not any self-proclaimed President which is endorsed by the western countries.

Maduro is the legitimate and the only elected President and China is right to support him.

With China and Russia's support, the US will have limited influences in Venezuela and Venezuela will be more stable without the US intervention.

Will the US Fed reduce its interest rates because of the trade war? - Part 2

https://finance.yahoo.com/news/stock-wall-street-surges-powells-161900316.html

The US stock market's surge last night was caused by Fed Powell speech which hinted that he would cut interest rates.  However, the US stock market is just having some dead cat bounce and the US economy is still deteriorating.  At the end of the day, the US stock market still must reflect the true economic condition.

http://sg-stock.blogspot.com/2019/06/ism-pmi-analysis-for-us-economy.html

This interest rate reduction had been predicted by us in our previous post below.

http://sg-stock.blogspot.com/2019/05/will-us-fed-reduce-its-interest-rates.html

We indicated that the US Fed would be willing to cut interest rates by analyzing the 4 US Fed interest rates.

China has issued a travel alert to USA.

https://sg.finance.yahoo.com/news/china-warns-companies-u-travel-091736491.html

China is trying to reduce its services trade deficit with the US by discouraging China tourism in the US.

This US-China trade war will escalate further and may balkanize the world into 2 (US vs China).  We'll have to choose to adopt US technology or China technology in the future.

Memtech - Stock calls

Date	Analyst	Company	Last	Target	Call	Valuation
02/28/19	Lim & Tan	Memtech	1.03	0	Buy on weakness
02/28/19	CIMB	Memtech	1.03	1.08	Hold	PER8.5x FY20
03/01/19	UOB Kay Hian	Memtech	0.985	1.33	Buy	PER11x FY19
04/26/19	UOB Kay Hian	Memtech	0.96	1.33	Buy
05/15/19	CIMB	Memtech	1.09	1.35	Accept offer	offer $1.35
05/15/19	Lim & Tan	Memtech	1.09	1.35	Accept offer	offer $1.35

Mapletree North Asia - Stock calls

Date	Analyst	Company	Last	Target	Call	Valuation
01/29/19	OCBC	Mapletree North Asia	1.25	1.35	Buy
01/29/19	DBS Vickers	Mapletree North Asia	1.25	1.45	Buy
02/09/19	DBS Vickers	Mapletree North Asia	1.25	1.45	Buy
04/03/19	DBS Vickers	Mapletree North Asia	1.31	1.45	Buy
05/02/19	OCBC	Mapletree North Asia	1.36	1.4	Hold
05/02/19	DBS Vickers	Mapletree North Asia	1.36	1.6	Buy	DCF

Mapletree Logistics - Stock calls

Date	Analyst	Company	Last	Target	Call	Valuation
01/02/19	CIMB	Mapletree Logistics	1.26	1.42	Add	DDM
01/11/19	UOB Kay Hian	Mapletree Logistics	1.33	1.39	Hold	DDM, Buy @ $1.26
01/22/19	OCBC	Mapletree Logistics	1.34	1.4	Buy
01/23/19	DBS Vickers	Mapletree Logistics	1.34	1.5	Buy
01/23/19	Kim Eng	Mapletree Logistics	1.34	1.3	Hold	DDM
02/08/19	DBS Vickers	Mapletree Logistics	1.39	1.5	Buy
01/23/19	CIMB	Mapletree Logistics	1.34	1.44	Add	DDM
02/28/19	Kim Eng	Mapletree Logistics	1.39	1.3	Hold
03/07/19	OCBC	Mapletree Logistics	1.42	1.5	Buy
04/18/19	OCBC	Mapletree Logistics	1.44	1.45	Hold
04/29/19	Kim Eng	Mapletree Logistics	1.48	1.4	Hold
04/29/19	DBS Vickers	Mapletree Logistics	1.48	1.6	Buy
04/29/19	CIMB	Mapletree Logistics	1.48	1.48	Hold
04/30/19	OCBC	Mapletree Logistics	1.47	1.38	Hold
05/02/19	UOB Kay Hian	Mapletree Logistics	1.48	1.39	Hold	Buy @ $1.26

Stock calls for 4 June 2019

Date	Analyst	Company	Last	Target	Call	Valuation
06/04/19	Kim Eng	MM2 Asia	0.245	0.26	Hold
06/04/19	OCBC	Sembcorp Industries	2.38	3.03	Buy	Sum of parts
06/04/19	DMG & Partners	Sembcorp Marine	1.39	1.99	Buy	PB1.8x FY20

ISM PMI analysis for the US economy.

We have put in the above PMI numbers on our PMI flow chart to give our viewers a clearer picture.


The PMI headline number has decreased from 52.8 (April) to 52.1 (May).

Let's suss out the real situation in the US.

The new order increased by 1 because of the new export order (+1.5) but the local order decreased.  In other words, this showed that the local consumption had decreased in May which meant that the US citizens were holding back their purchases.  The new export order increased because Trump forced other smaller nations to buy more from the US with tariff threats.

Although the new order increased by 1 in May, the production sub-index decreased by 1.  This showed that the manufacturers didn't expect the increase to continue and they were just producing to meet their existing orders.  This was substantiated with the increase in customers' inventories and a decline in backlog of orders (-6.7).  The inventories and supplier's deliveries also declined because of the production cut.  The employment sub-index looked set to decline if the production cut persisted because manufacturers would cut inventories first before laying off workers.

The prices sub-index increased by 3.2 because the manufacturers switched to local raw materials which were costlier.  Moreover, the tight labour market also induced the manufacturers to pay higher salaries.

Since local consumption makes up close to 70% of the US economy, the US GDP is likely to decline further as the US citizens are not spending like before as prices have increased.  The US-China trade war is beginning to hurt the US economy now.

Singapore PMI is in a contraction mode (49.9)

https://sg.finance.yahoo.com/news/singapore-pmi-drops-below-50-for-first-time-in-almost-3-years-024900712.html

Any number below 50 is a contraction phase and PMI is a leading indicator of the GDP.  However, comparing the month-on-month PMI headline numbers is not the right way to interpret the PMI.  It looks like our next GDP number won't look good from the PMI.

Please look at our previous post if you want to learn about the interpretation of PMI.

http://sg-stock.blogspot.com/2019/04/the-us-economy-has-flipped-and-fissures.html

Why must we be vigilant of the political arena in the financial market?

The reason is very simple.  We will get caught in the whirlpool if we are not vigilant of our surroundings.

A youtube video below aptly depicts the gravity of the situation when one is not vigilant.

Mapletree Industrial - Stock calls

Date	Analyst	Company	Last	Target	Call	Valuation
01/17/19	OCBC	Mapletree Industrial	1.97	2.04	Hold
01/18/19	CIMB	Mapletree Industrial	1.99	2.1	Add	DDM
01/23/19	DBS Vickers	Mapletree Industrial	1.98	2.22	Buy	PER16.8x FY19
01/23/19	DIR	Mapletree Industrial	1.98	1.78	Underperform
01/24/19	Phillip	Mapletree Industrial	1.96	2.03	Neutral	DDM, PB1.36x FY19
01/24/19	Kim Eng	Mapletree Industrial	1.96	2.2	Buy	DDM
01/28/19	UOB Kay Hian	Mapletree Industrial	2.03	1.94	Hold	Buy @ $1.78
02/12/19	OCBC	Mapletree Industrial	2.03	2.04	Hold
02/15/19	Phillip	Mapletree Industrial	1.99	2.03	Neutral
02/19/19	OCBC	Mapletree Industrial	1.99	1.98	Hold
02/20/19	DBS Vickers	Mapletree Industrial	1.99	2.3	Buy
04/03/19	DBS Vickers	Mapletree Industrial	2.12	2.3	Buy
04/04/19	Kim Eng	Mapletree Industrial	2.11	2.25	Buy	DDM

Mapletree Commercial - Stock calls

Date	Analyst	Company	Last	Target	Call	Valuation
01/24/19	OCBC	Mapletree Commercial	1.72	1.79	Hold
01/24/19	CIMB	Mapletree Commercial	1.72	1.79	Add	DDM
01/24/19	DBS Vickers	Mapletree Commercial	1.72	2	Buy	DCF
01/24/19	Kim Eng	Mapletree Commercial	1.72	1.6	Hold
02/08/19	DBS Vickers	Mapletree Commercial	1.81	2	Buy
02/08/19	CIMB	Mapletree Commercial	1.81	1.9	Add
03/20/19	CIMB	Mapletree Commercial	1.83	1.94	Add	DDM
04/04/19	Kim Eng	Mapletree Commercial	1.87	1.8	Hold
04/24/19	OCBC	Mapletree Commercial	1.84	1.85	Hold
04/25/19	DBS Vickers	Mapletree Commercial	1.89	2	Buy	DCF
05/28/19	CIMB	Mapletree Commercial	1.93	2.03	Add

Manulife US Reit - Stock calls

Date	Analyst	Company	Last	Target	Call	Valuation
01/02/19	DMG & Partners	Manulife US Reit	0.77	0.92	Buy
01/02/19	DBS Vickers	Manulife US Reit	0.77	0.88	Buy	DCF
02/12/19	Lim & Tan	Manulife US Reit	0.855	0	Hold
02/12/19	DMG & Partners	Manulife US Reit	0.855	0.94	Buy	DDM
02/12/19	DBS Vickers	Manulife US Reit	0.855	0.92	Buy	DCF
02/26/19	Amfrasers	Manulife US Reit	0.835	0.95	Buy
03/13/19	DMG & Partners	Manulife US Reit	0.85	0.94	Buy
03/25/19	Kim Eng	Manulife US Reit	0.865	1	Buy	DDM
04/25/19	Lim & Tan	Manulife US Reit	0.87	0	Hold
04/26/19	DMG & Partners	Manulife US Reit	0.865	0.94	Buy	DDM
04/26/19	DBS Vickers	Manulife US Reit	0.865	0.92	Buy
04/26/19	Kim Eng	Manulife US Reit	0.865	1	Buy	DDM
04/30/19	Amfrasers	Manulife US Reit	0.88	0.97	Buy	DDM
05/02/19	DMG & Partners	Manulife US Reit	0.87	0.96	Buy	DDM
05/29/19	Kim Eng	Manulife US Reit	0.86	1	Buy	DDM