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Construction sector

In such a situation of uncertainty of direction, the best thing to do is to watch the construction counters like a hawk and take appropriate action when necesssary ie. if prices breakout upwards, that's good news to hold on... but if prices breakout downwards, then act quickly...

In this way, one is trading technically and won't be far wrong, regardless of contarian opinions, etc. There are bound to be many, many contrarian opinions, but why bother too much about it?

 

Technically, most construction counters look set to make a major move, but move direction is either up or down.

Basing on recent positive and encouraging news about the sand situation, one can expect the direction of move to be up. But then, we also have been taught by some experts that news and such may work both ways in the stock market depending on the underlying facts.

 

Hi doctor2a, pls dont talk down the market! What do you expect from a counter that moved from 2.5c to 19c in just a few months? This is just a consolidation phase. Construction stocks hav never been better in recent times. Margins will be corroded by raw materials but there will be hedging. Somemore, with the placement shares successfully placed out, construction firms will have the financial means to ride out the current situation. Cheersz!!

 

caution

1. the Two IR contarcts is by invited tender, not open tender, so far most of the const co invited are foreign companies, like Shimizu, Gammon, China Const.

I doubt local contractors will have a bite here.

2. Sands price is still sky high, in fact the most expensive in the world right now.

 

such move from philip sec is in fact beneficial to the revival of contructn companies' share prices which have seen slump for so long. i tend to take the stance that these contruction companies like yongnam, bbr, etc will benefit from the IR sentiments. genting starting work on sentosa IR this Apr. Presumably, tender exercise for sub-con will start from after CNY? anyway... i m all for these two counters...good luck man heavily vested

 

caution to people outside const industry. it going to be bad and ugly in the coming months.

just words of warning, the decision is your, don't say I did not caution you.

Note: In the POEMS CFD list , no const co can be short sell., I think Philip Sec already know something.

 

 

ready-mixed concrete will go up to $150 per cubicmeter. all const co will suffer heavy losses.

wait and see, want to bet with me ?

 the const sector will plunge.

 

 

I believe due to market sentiment that for the 2 upcoming IRs that is to be built, most if not all construction related companies will benefit directly or indirectly. Hence we can see most of their shares are rising up going against their financials and cash reserves and NAV etc etc etc.

Such is the power of market sentiment. It is crazy but hey if it can help you make monies who cares correct? :)

 

Construction pennies are still the way to go in this bull run.

 

Besides the construction counters, you can also consider Kian Ann Engineering.  This company's fortunes is closely tied to the construction sector as it supplied heavy plant equipment and machinery parts to the industry. It is a global distributor as well. During the last construction boom in the in the late 90s, Kian Ann's trading price was in the region of 55-65cts.  Currently, it is so far lower at just 24cts.  It is still in the same industry but now better streamlined, equipped with the latest state of the art IT systems.  The company also issues yearly dividends plus special dividends.

 

Construction stocks rallied on hopes that the price of sand could likely fall to $20-$30 per tonne from the current $40. The Business Times cited the Singapore Contractors Association saying that the price of sand would be "fixed by the government for the next few months" as authorities release sand from its stockpile beginning Thursday.



Lian Beng, BBR, CSC and Yongnam all jumped.

 

Construction and property stocks continue to fall, as investors worry that Indonesia's ban of sand exports would affect profits. Indonesia is the largest supplier of sand to Singapore.

 

Economists forecast 2 to 3% growth in the construction industry in 2007 as they expect contracts to pour in from the public and private sector, the Business Times said.

 

is Lum Chang realli good? I remember they are involved in the Nicoll Highway incident rite?

 

For contra players, the more speculative the stock is, the more profits to be earned. So staying away should be advice for those long term investors but for contrarians it is good playground for them :)

 

having had experience in the construction industry, i stay away from construction stocks, as such companies are always the first to be hit and the last (if ever) to recover if market changes. so dear forumeers, trade with care when it comes to construction stocks. especially so since most of them are penny stocks, so very speculative.

 

The construction sector has been in the doldrums for so many years. So I think the rally in this sector still has some legs.

 

Shares in construction firms soared after a Citigroup report said that the home supply crunch will raise private housing prices another 12 to 15% this year.

 

We already have 3 months of good rally since October '06 .... It's a pretty long rally.

And this construction rally just come after the long bank and property rally. Beware ya.