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Am looking into some tech stocks now too...seemed to be quite promising till end of 2006...hmmm...globaltest having more sell volume than buy today...
With banks and property counters running ahead and hitting new highs which in turn push up STI to an all time high, it is about time to look at next wave and laggards. I see good potential for tech stocks in semiconductor industry to power ahead next. Stocks such as UTAC, Global Testing and CSM are trading at or close to the year's low. As pointed out by Nostradamus in his postings, many analysts have now viewed the sector much more favourably. I also anticipate that the 3Q reporting seasons kicking start with CSM on 20 Oct should see some good results and more favourable guidance for 4Q.
All said, I reckon it is about time to selectively pick up a couple of tech stocks and add to my portfolio. Personally, I favour Global Testing for its undemanding PE and PB ratios and clearer earing visibility. Technically, MACD just crossed over on 11 Oct and Stochastic crossed over a day earlier. Target is $0.305 which is 50% of retracement between last high of $0.39 and a low of $0.225 reached recently.
Vested now. Just for reference and sharing. May be wrong. Comments and views are welcomed. I am taking this forum as a platform to share and learn.
I believe this is the point for smart money to come in. Downside is limited and there is good potential upside.
Tech and internet stocks are slowly inching up after being a laggard for sometime. Blue chips are up, China stocks are up and telcos, property and consumer stocks are also up. Tiem to rotate into this segment. Counters to look at UTAC, Chartered, Global Test, Electrotech, Global voice, Mediaring or even Addvalue. Looks like good valuation to me. No harm loading up some at these prices...
It is higher on laggard buying as its valuation trails behind its peers, dealers said.
"Global Testing trades at a significant discount against its peers, with a 2006 prospective PER of 5.7x (against a sector PER of 9.9x). We believe the stock deserves better recognition from the stock market," UOBKH said in a recent note clients.
The brokerage rates the stock a "buy" with a target price of $0.43.
k thanks...maybe ah bian dethrone, global cheong
This stock is trading at this year's low. It trended downward since May 06. Seem to be able to find quite strong support at $0.225. Tends to bounce back whenever it hits $0.225. It bounced back from $0.225 in July 06 and rose to $0.29. Now it is again back to $0.225 level and hitting it 6 times in so many days.
Stochastic is showing oversold and MACD is converging. A cross over of MACD may see the start of upward movement. On the other hand, once $0.225 is broken, there could be further downside.
My view is just wait and see how it evolves. Just for reference only.
Looks like on a downtrend...
can anybody advice? everywhere also say double bottom... any breakout soon??
For reference and comments. This stock is heavily traded today and closed at $0.24. Worth taking up the recommendation of OCBC?
BUY Global Testing Corp, below S$0.255.
Analysis
- Elliot wave counts indicate a corrective down wave has ended for Global Testing Corp (GTC).
- Candlestick patterns indicate the formation of bottom at S$0.245.
- GTC hit a low of S$0.24 on 20th September, but closed at S$0.245. The price action also suggests the stock has been in consolidation since 15th September.
- Stochastic indicator is beginning to rise from oversold regions, suggesting that the selling pressure is easing.
- We recommend a Buy on Global Testing Corp, below S$0.255. Target price set at S$0.275 and cut loss set below S$0.235.
Source : OCBC
I thinks media news is 'delayed' ... so don't trust them too much. By the time, they are released to the public, the bankers would have already bought them some time back. When investors buy on news, the bankers will sell. As I alway say: TIMING IS CRUCIAL.
Do our own homework, buy before the news breaks and then sit back to watch them play the stock up ... :)
Totally agree. Have made the same mistake and bought on analysts' recommendation just to step into a land mine.
"Money Mind" on CNA also suggested that BBR is undervalued and should be worth at least ??? cents (those who watched the programme would know the suggested fair value) but it rallied to 4cents for a while before stagnating. The analyst's endorsement of the presentation by a Global Testing's management official should be deemed as just a fresh lead for punters or contra players. An analyst suggested in a report for another stock that "we would like to see evidence of core revenue pickup before buying the story again" . The same principle should apply in re-rating Global Testing. Usually when an analyst suggested in the media that a stock had upward potential, it dipped consequentially. Haha, the "land mine" may explode in your face any time!
Semi-conductor industry has been viewed positively following the good performance of TSMC and UMC. DRAM prices are also on the rise. This counter and UTAC are seen as beneficiaries in this re-rating. Global Testing CEO has also accumulated 1,000,000 shares recently at a unit price of $0.26. The counter is breaking out now and poise for upward movement. Not too late to buy. UOBKH has a buy call today with a target price of $0.43. Even if we discount it by 20%, we still look at a target of $0.34 representing 25% upside from current price of $0.27.
Global Testing was highlighted as a stock with good potential on "Money Mind" on CNA last night. Could be part of the reason for the impressive performance today.
Look at this counter today - up 10% after semicon upgrade! Below is its profile .... didn't really notice this counter previously till its volume today.
-----------------------------------
| Full Company Name: |
Global Testing Corporation Limited |
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| Incorporated in : |
SINGAPORE |
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| Incorporated on : |
30 Jul 2004 |
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| ISIN Code : |
SG1S09926464 |
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| Registered Office : |
4 Battery Road #15-01
Bank of China Buildiing
Singapore 049908
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| Telephone: |
886 35987168 |
| Fax: |
886 35987166 |
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| Secretary: |
Abdul Jabbar Bin Karam Din
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| Link to Internet Website |
http://www.gttw.com.tw |
| Authorised Capital : |
SGD300,000,000 ordinary shares |
Par Value : |
SGD0.100 |
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| Issued & Paid-up Capital : |
SGD105,000,000 |
Trading Currency : |
SGD |
LISTINGS
Listed on 24 August 2005 on SGX Mainboard
|
REGISTRARS
Lim Associates (Pte) Ltd
REGISTRAR ADDRESS
10 Collyer Quay #19-08
Ocean Building
Singapore 049315 |
AUDITORS
Deloitte & Touche (Singapore)
Deloitte & Touche (Taiwan) |
BACKGROUND
The Company was incorporated in Singapore on 30 July 2004 under the name Global TestingCorporation Limited.
The Group is principally engaged in the business of providing testing services such as wafersorting and final testing services to the semi-conductor industry, focusing in respect of logic and mixed signal semi-conductors used in consumer electronics and communication devices. As part of its testing services, the Group also provides test program development, conversion and optimisation services, and load board and probe card design, and leasing of testers to its customers for trial and pilot testing purposes on an ad hoc basis.
The Group has operations in Taiwan and the United States. Its customers include Taiwan Semiconductor Manufacturing Company Limited (TSMC) and United Microelectronics Corporation (UMC), two of the world's leading foundries, Analog Devices Inc and MarvellTechnology Group Limited.
The Group will continue to focus its efforts towards provision of wafersorting of mixed signal semi-conductors to fabless companies and integrated devices manufacturer where it typically enjoys better margins. The Group plans to increase its capacity to cater to the increasing demands from its customers. As at 31 December 2004, the Group operates a total of 89 testers and 7 testers on consignment to its customers. |
Extracted from my blog http://kelongstocks.blogspot.com
Fundamental and Technical AnalysisGlobal Testing hit a high of 39 cents on 3 May and 10 May 06 before the recent correction saw prices testing the 6 month uptrend line with prices rebounding off the support at 32 cents during the bearish belt-hold candlestick formation. The next few days saw potential reversal harami candlestick formations. Prices need to clear 35 cents resistance before rebound can be sustained.
Resistances: 35 cents, 37/37.5 cents (intra-day high on 8 Feb 06 and gap resistance on 11 May 06), 39 cents (all time high), beyond this, look to upward sloping red resistance line (currently projected at 41 cents)
Supports: 33 cents, 32/32.5 cents (uptrend support and recent low) and 30.5 cents (support region during late Mar to early Apr 06)
Indicators: Neutral (RSI directionless between overbought and oversold region, MACD consolidating in negative territory while Stochastics showing possible rebound from just above the oversold region. Volumes have been relatively lighter during this correction phase compared to the hefty volumes when prices were testing the all time highs which is a healthy sign.
Fundamentally, Global Testing will continue to benefit from the continued positive outlook for semiconductors in 2006 (Semiconductor Inudstry Association reported worldwide sales of semiconductors in the first quarter of 2006 were 7.3 percent higher than first quarter of 2005 and expects the upward trend in the semiconductor cycle to continue through 2008). Global Testing expects 40% growth in revenues and with potential upside coming from latest forays into PC-related chip testing, Home Video IC testing as well as CMOS Image Sensor testing.
.......fair value and conclusion at my blog
Extracted from my blog http://kelongstocks.blogspot.com
Please "support" my blog if you find the writeup informative
[B]Fundamental and Technical Analysis[/B]
Proxy play to UTAC, expect spillover effect if STATS and UTAC rally. Chart shows Global Testing breaking out of a symmetrical triangle on significantly higher volumes compared to past 10 days. Breakout however is yet to be confirmed, only 1 bid above the resistance line so need for confirmation candlestick on Monday. Technical target on breakout is 41 cents.
Resistances: 33.5 cents, 35 cents (recent resistances and support turned resistance), 36.5/37 cents (historical highs)
Supports: 31.5/32 cents (recent resistance turned support, also support in symmetrical triangle), 30.5 cents (recent support in late Mar)
.................continued at my blog
