COSCO SHP SG    Last:0.128    +0.003

CoscoCorp

Hi tonersweat,



A tight Bollinger band in Dec indicated a surge upwards. Since then it has been on a tear. Broke out of pennant formations upwards. A potential US$1b worth of contracts would enable its price to reach around $3.00.

 

"We are now increasing our forward contract-win assumptions for Cosco, raising its status to that of a premier yard," CIMB-GK analyst Glenford Tan said in a client note on Tuesday.



Tan maintained his "outperform" rating on the stock, and raised the stock's target price to $3.15 from $2.57.

 

Hmmm ... maybe there is some truth the axiom "buy on rumour and sell on news".

 

Still uptrending

 

SINGAPORE - Cosco Corporation (Singapore) rose as much as 4.3 per cent to a record high of $2.93 after the bulk shipping and ship repair firm said it had won new building and conversion contracts worth over US$250 million.


The firm on Monday also won its first semi-submersible vessel building contract, valued at US$200 million.

'We are now increasing our forward contract-win assumptions for Cosco, raising its status to that of a premier yard,' CIMB-GK analyst Glenford Tan said in a client note on Tuesday.

He maintained his 'outperform' rating on the stock, and raised the stock's target price to $3.15 from $2.57.

Cosco, which is controlled by China's biggest shipping firm, was among the top percentage gainers among blue-chips on Tuesday. -- REUTER

 

this counter really flies, but no idea why the chairman sold some shares few months ago, doesn't he know they are doing good business? or he needs money to buy one-shenton? hee..

 

I am still learning TA, anybody can advise is it still on uptrend?

 

I am still learning TA, anybody can advise is it still on uptrend?

 

That is US$1 b worth of contracts.

 

"Against the backdrop of a buoyant offshore sector, we assume that the group could win $1 billion worth of shipbuilding and offshore contracts in financial year 2007, double that of 2006," said DBS Vickers analyst Janice Chua.



Chua, in a client note, said she has upgraded Cosco's net earnings forecasts and the target price to $3.00 from her previous target of $2.65.

 

Good news for all who are vested.

1. COSCO Secured New Building and Conversion Contracts Totaling Over US$250M (approximately S$385M)  

2. Press Release: COSCO Wins Its First Semi Submersible Vessel Building Contract Valued At US$200M (approximately S$310M)  

Furthermore, DBS Vickers and Merril Lynch have new price targets of $3.00 and $3.03. These targets were stipulated in reports before the press releases.

 

Uptrend may still be in place

 

It rose to a record high of $2.63 yesterday, on hopes that rising freight rates could improve its earnings. The Baltic Dry Index, which covers dry bulk shipping rates, hit a 21-month high on Tuesday, according to Reuters data.

 

Looks to be on a gradual uptrend

 

Paiseh ... i'm no where near expert. Almost entirely new to investment and trading. Happy New Year my friend. :)

 

Hi Synapse,

I fully agree with you that Friday's breakthrough was short lived, though it did reach 2.35 on Friday. More confirmation is needed.

I am still quite "green" in applying the TA learned. Hope to learn from you seniors to sharpen the skill.

Let's see how this counter develop further.

Happy new year.

 

Sanye,

I'm hoping for the rally too. May i enquire as to what criteria you use to establish breakout from resistance? As for me, i tend to apply a 3% criteria. Thus, i was looking at a price of $2.35 for confirmation.



However the short-term TA trend apprears to be uncertain. Looking at the candlestick charts, it worries me that the bearish counter attack line pattern was almost formed on Fri. If Cosco closes below 2.28/2.29, i wonder if this would lead to a double top formation.



Adopting a fundamental perspective though, i think the company is in a strong position. I am keenly awaiting the announcement of the jack up rig contract. But it appears that this could be troublesome due to engineering/technological challenges. Despite the strategic tie up between SembMar and Cosco, it is ultimately not in the former's interest to break its own rice bowl.

 

Broke the resistance at 2.30 yesterday. If can stay above, it may go another rally.

 

Trend uncertain... be cautious

 

Yes i'm vested, but it was since the time it was below $2