Quick Post:
As my holdings in Starhill Global isn't for trading reasons, I'm more concerned at the longer term view of the stock.
This is the fourth time Starhill Global is challenging current resistance at $0.625. All the failed attempts saw the stock making higher lows with support increasing in bouts of $0.005 - from $0.605 to $0.61 to $0.615 to its current price of $0.62. We also see the formation of an ascending triangle which suggests prices may breakout and rise further.
Here's the weekly chart for a clearer view:
Here's the weekly chart for a clearer view:
Furthermore, all moving averages are lined up positively indicating that the uptrend is still intact.
Fundamentally, the numbers are as such:
Share Price: $0.625
NAV: $0.89
Price to Book: 0.702
Discount to NAV: 30%
Gearing: 31%
Interest Cover: 3.4 (FY) , 3.06 (9mth)
Dividend Yield: 6.352%
We also know Singapore's economy is picking up and there has been an increase in the number of tourists. Furthermore, locationwise, Starhill Global occupies probably the next best plot in Orchard, with Wisma and Ngee Ann City standing right next to CapitaMall's Ion Orchard shopping centre.
My take: With this in mind, Starhill Global, being undervalued, is still a good investment currently with a higher chance that prices will continue to trend upwards. Furthermore, gearing and interest cover are comfortable. However, you may want to enter at the support prices. That said, the breakout may be arriving soon.
Cheers,
~K
