What an unbelievable day it was. I suppose everyone was expecting a little rebound on opening from the Dow’s strong closing. If it did happen I would have put in lots of shorts including SIA ,as I know the Dow is gonna come tumbling down in the next few sessions. One need not look far. The volume on that surge is good enough. The volume was barely there.
There isn’t much to chart tonight. The same old story. Just continued downward pressure, supports all breaking one by one. It is quite unbelievable, and the STI was this close to calling for a trading suspension. By the time the afternoon session begun, the panic selling began like nothing. I have never seen UOB fall so hard within 2 mins. Vested with a short position.
Now, there is absolutely no reason why shorts need to be closed. There is little reason to enter short at this juncture (not till we see a rebound). And there is definitely zero reason to go long, at least from a trading point of view.
UOBKH came up with this list of information:
Just click on the picture to see in detail. Do you see what I see? Well fundamentally anything below a book ratio of 1 is cheap. But do you see what I see? There are many that are above 1. Some well above 1. Which one caught my eye most? Starhub!
So I went to take a look at the chart.
Do you see what I see? Jul, what do you think of the chart? 
That’s it for today. Time to leave the office. It has been an UNBELIEVABLE month, and I have a lot to say about looking forward to 2009 onwards and it isn’t rosey. Perhaps I will blog bout it on another day.
I will be away on a trip to Bintan to relax a little. My partner and I sure need it. Have a good weekend everyone!
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6 users responded in this post
You have a nice little flag there for starhub, bro. So, you put in a short? hehehe…
No not yet. Havent studied it in detail. Yes.. a nice flag. I may tikam as close to the 20MA as possible. It hasnt tanked, like singtel. Good chance it will play catch up soon. Whats your view on telecoms? Jul feels it is a good play. He said starhub’s gearing is horrendous.
Ya, Jul is a shortist now. What a transformation. I can read the signals from the charts but I still have my hang ups about shorting. Anyway, I’ll just accumulate free nasi lemak treats as you guys make your money. hehehe…
Dun really know how to see a bear flag or what it means exactly. After breaking 61.8 fibo line, it crash down 30c then starting trending upwards slightly for last two weeks, which is amazing given STI tank 400 points during this period. Any upside is resisted by 20 days MA currently at $2.2. If share close above this 20 MA line, it means the bear trend is broken and could head towards 2.38 ? if closing price stays below 20 days MA in next few days, then possibly it head lower to retest 1.95. dunno how to read macd or signal9
Back to familiar ground, starhub has debt to equity ratio of over 900%!!! Debt is 968m vs equity of 107m . 124m due in next 1 year, balance 844m in instalment by 2012 (that’s about 21m a month from oct 09 till end 2012).
Cash is 137m, enough to pay off 124m loans due in next one year. Cash flow is 664m which is good but have not check profitability. There is 220m of goodwill, i never really like goodwill especially in times like this. Trade receivables (customer owe to SH) is 113m which trade payables and accruals (SH owes to suppliers) is 351m ! So SH owes to suppliers 351m while customers own SH 113m meaning SH needs to pay out more than they earn broadly speaking. May affect cashflow and profitability.
SH has been more defensive than other index stocks so far and its absolute price at $2 still quite high. When hedge funds and fund managers need cash to meet redemption calls, do they sell penny stock or those that have high absolute price? Remember, good fundamentals is irrelevant in a sell down while poor fundamentals will hasten its fall.
Bummy, since the guru is not here for now, I’ll try to explain and hope I don’t make a mistake.hehehehe… The downtrend for Starhub is interrupted briefly with some up days and days forming higher lows. You see a nice flag formation from the price action. However, the 20MA forms a resistance and will cap further gains. The bear trend should continue after this brief spell. That’s why shortists like patterns like this, it allows them to short at a higher price and chances of making money is higher as the counter continues in the downtrend.
If the price moves above 20MA, it might be a bullish signal or it might just be a whipsaw. Looking at the candlesticks, unlikely that it will move above 20MA. If it does break above 20MA, the next resistance level is about $2.30. Good luck, mon ami. Oh, I collect payment in nasi lemak.
Bummy u will about the flag patterns in your CTA class. When is ur class? I will ask my remisier if he is conducting.
Starhub’s last couple candlesticks dont seem to be a flag continuation anymore. Anyway, a short at 20MA is nice. Across all stocks actually. Especially if other indications point to a shorting opportunity. In any case even if the trend reverses, cut loss point is quite near.
I am likely to put in some to tikam, and then add in more on confirmation. When the time is right..
I dont know bout starhub’s business and i dont really care. My time is spent screening charts, not fundamentals.
Compare starhub’s chart with singtel and M1.U can see the drastic diff. The speculation is, stathub’s turn to die is coming?
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