Time to Enter Raffles Medical Group?

Founded in 1976, Raffles Medical Group has grown to be Singapore's largest private group practice operating a network of family medicine clinics, a tertiary care private hospital, insurance services and a consumer healthcare division serving over 1 million patients and 5,500 corporate clients today. (For a recent fundamental analysis of RMG, refer to Singapore Investor's blog post entitled Raffles Medical Group.)

Since making the triple bottom in Jan - Feb, Raffles Medical Group has been on an uptrend. From the chart below, it is clear that prices are moving in a channel and that prices are currently at the bottom of it. As the trend is your friend, this may provide a good buying opportunity for traders who are looking to get into this stock and eager to ride the major trend. 

The weekly chart below shows a clearer picture of this uptrending channel.

Turning to the chart below, current support seems to be the 14 day moving average at $2.36. Indicatorwise, Stochastics, MACD, OBV and MFI all seem to be turning up. Positive DI of the ADX looks set to cut the negative DI indicating buying momentum. Parabolic supports this. These could indicate that prices are going to move up further in attempt to challenge resistance at $2.44 before taking on its 52-week high at $2.52. Trend strength however is lacking. RSI too, seems to be making a lower high which may indicate a pullback in price in the short term to the 14dma. A dip below the 14dma, could see prices moving to its previous support at $2.32, and $2.30 thereafter. A break below $2.30 could signal the end of its uptrend and could send prices down to its next support at $2.24. A stop loss would prove most useful due to the uncertainty.

My take: Personally, with a P/E of 33, yield of only 1.4% and price to book ratio of 4.6, despite a goal of holding the stock for the long term, the stock is too expensive. Shall wait for a crash to bring prices down before investing in it. Will use the time to save up for that chance when it presents itself.

In the short term, prices may pull back to its 14dma which would provide a favourable entry point. Also, the mini-trend starting on the 1st of Dec sees the stock making higher lows, and as the market sentiment seems to be getting more bullish, I expect prices to head higher soon.

Not vested,

~K

CapitaMall REIT Making A Double Bottom

In the last chart on the 27th of Nov, I mentioned that CapitaMall was downtrending. Also to quote the entire paragraph for refresher sake, I posted that "the past three days have seen price seemingly stabilizing at $1.86 support, in hopes of rebounding upwards. A break below this may see price retreating to the next support at $1.81. To break out of the downtrend, price must head above $1.93. Only then can we expect price to head higher." See CapitaMall REIT in Trouble for further discussion.

On the 30th of Nov, prices dipped to $1.82 but broke out of its downtrend on the 2nd of Dec, closing at $1.96. After stabilizing for the next 2 weeks at $1.94 thereabouts, prices dipped back down to $1.85 on lower volume than the last dip to $1.82 suggesting that prices had reached a bottom. 

Today's charts indicate that a double bottom may have indeed been formed and prices are set to head upwards. Furthermore, indicators are all favourable. MACD and Stochastics have given a buy signal. RSI and OBV looks to be heading higher while MFI seems to have bottomed as well. This increases the odds of prices rising. Support seems to be at the 14 day moving average at $1.90. Resistance remains at $1.97. The crossing of the 14dma with the 200dma should send prices higher but is not in sight at the moment. 

Again with a yield of only 4.85% and price to book ratio of 1.28, I'm not interested in the stock however, traders interested in capital gains may want to consider this. 

Not vested.

~K

CapitaMall started at Overweight by HSBC, target $2.22
Friday, 10 December 2010

© 2010 - The Edge Singapore

Christmas Time, Family Time, Lovely Time

"The best Christmas of all is the presence of a happy family all wrapped up with one another."

~ Anonymous

Compliments of the season everybody!

I've been having a ball of a time this Christmas. Loving every second of it. Relatives that I only see once a year, relatives that only come back to Singapore once a year, relatives that I'm meeting for the first time as they've never been back to Singapore since they've left. The feel of family warmth is such a wonderful treat. Furthermore, it's one of those few times the Eurasian dishes come out in full force and when there's so many bottles of wine to choose from at each house. Red, white, sparkling, dessert, ice. One of God's many gifts to mankind. Make that five.

And the best part? It ain't over yet. 12 days of Christmas remember? So there's another week to enjoy the festivities, the atmosphere and the food with family, friends and cherished ones. And smack right in-between this season is another celebration. You guessed it. New Year - which means more food and goodies (I'm obviously referring to the wine). 

It's a beautiful month. 

The prelude of cleaning and choring round the house, the running round for Christmas presents, the disagreements on how the house is to be decorated, the last minute ingredients amassing to serve up the Christmas feast, on hindsight, all play a part in enhancing the treasure of this season. Kinda like bonding during Basic Military Training (BMT). And when the midnight church bells sound announcing the arrival of Christmas, the recognition that it's an effort well spent for a beautiful time dawns. The price of that? Priceless. Thank you Mastercard for that slogan.

So that said, I'll gladly agree with the sentiment that goes to the jolly tune entitled, "It's the Most Wonderful Time of the Year" by Andy Williams back in 1963. A recommended listen if you haven't before.

It's a beautiful Christmas.

Wishing you all a fantastic Christmas season.

Cheers,

~K