Singapore Stock Market Update

Singapore stock prices are mixed  as Wall Street's uninspiring lead on Monday capped demand, with STI opened almost unchanged at 3162.76.

• Global Logistic Properties (GLP), a unit of Government of Singapore Investment Corp, seeks US$2.6 billion in IPO, will offer 1.76 billion shares for sale at $1.96 a share (US$1.50), the company said in a prospectus on the central bank's website. The public offer closes on Thursday and the company will list on the Singapore Exchange on Oct 18.

Watch Out For Economic News Today

1. U.S IBD/TIPP Economic Optimism (Oct)

Corporate Announcements

1. Keppel Land agreed to sell its stake in the first phase of Marina Bay Financial Center to K-REIT Asia for S$1.43 billion, as part of a swap agreement.
2. Keppel secured S$341 million contract for second phase of the Greater Manchester Energy-From-Waste Project in the UK.
3. Tiger Airways reported continued strong growth with 43% increase in passengers during 12 months to September 2010.
4. NOL saw an 6% increase in volume (FEU) and 38% increase in Average Revenue per FEU for the 4 weeks to 17 Sep 10.
5. Yanlord said it had sold 80% of the 167 apartment units during the inaugural launch of Shanghai Townhouse. Total contracted pre-sales for the first two days amounted to RMB1.8 billion.
6. Sembcorp Marine has secured long term contract from Carnival Corp to provide services to its cruise vessels. Carnival is the world's largest cruise operator.

News Updates:

1. The European Central Bank cut bond purchases by more than 99 per cent last week to nine million euros (US$12.5 million), an ECB statement said on Monday, a sign of calmer conditions in public debt markets.
2. Wall Street ends flat on thin volume before earnings.

Quick Picks: Here is a quick pick screen that we have designed to pick out potential stocks, both Bullish and Bearish. These are measured with emphasis on larger changes in price and volume.

Bullish Stocks (Singapore)

	Symbol	Name	Entry	SL	TSL	TP	Remarks
1	BANY	Banyan Tree Holdings	0.975	0.875		1.08
2	HKLD	Hong Kong Land	6.76	6.32		7.20
3	KPLM	Keppel Corp	9.64	9.36		9.92
4	SCNM	Sembcorp Marine	4.39	4.11		4.67
5	SCIL	Sembcorp Industries	4.81	4.55		5.07
6	NEPS	Neptune Orient Lines Ltd	2.13	2.02		2.24

Stock Prices last updated at 9:00 (Singapore Time)

Aggressive Growth Stock: TPC Group Inc.

TPC Group Inc. (TPCG: 26.64 0.00 0.00%) estimates are popping after the latest quarterly report. Shares are soaring, but those estimate revisions have valuations at very attractive levels.

Company Description

TPC Group makes a variety of chemicals for performance, specialty and intermediate markets. Products include synthetic rubber, fuels, lubricant additives, plastics and surfactants.

Revenue Doubles

On Sep 17 TPC Group reported fiscal 2010 fourth-quarter results that included a 104% jump in revenue from the same period last year, to $532 million. Sequentially the top line grew 33%.

Net income more than tripled since last year, to $14.4 million from $4.1 million and up from $7.8 million in the fiscal third quarter. Earnings per share came in at 80 cents, beating the Zacks Consensus Estimate by a quarter.

Estimates Jump

After the earnings release the covering analyst that reports to Zacks upped their full-year estimates substantially. The fiscal 2011 estimate is now $2.25, up from $1.77. Next year's forecast is $2.91, up from $2.17. If TPC Group meets these expectations the annual growth rates will be 108% and 29%.

And a Good Value

Shares of TPCG are trading at just 12 times the forward estimate, thanks to the upward revision. The PEG ratio of 0.4 shows a deep discount on those growth rates.

The price to sales ratio is just 0.29, which is well ahead of its peers that average 0.94.

The Chart

Stocks that shoot up this much, this fast can be tough for investors to buy, fearing they missed the party. But, keep those excellent valuations and growth rates in mind. There is still plenty of upside for this Zacks #1 Rank (Strong Buy)

Bill Wilton is the Growth Stock Strategist for Zacks.com. He is also the Editor in charge of the market-beating Zacks Growth Trader service
 

Growth & Income Stock: NewMarket Corp

NewMarket Corp (NEU: 118.12 0.00 0.00%) has seen strong demand for its products as the economy recovers from the recession. Sales are up over 25% year-over-year, and valuation remains attractive for this Zacks #2 Rank stock.

NewMarket manufactures petroleum additives through its two subsidiaries: Afton Chemical and Ethyl Corporation. It is based in Richmond, Virginia and has a market cap of $1.7 billion.

Stellar Quarterly Results

NewMarket reported second quarter earnings per share of $2.69, an increase of 34% over the same period in 2009. Total revenues improved 27%, driven by a 26% increase in petroleum additives.

Management mentioned in its latest quarterly report that it believes the overall demand for petroleum additive products is recovering from recessionary effects and is now at pre-recessionary levels.

The gross margin decreased a bit however, from 30.0% to 28.1%. The primary reason for the decline was due to rising raw materials costs coupled with lagging price increases.

Expanding the Business

NewMarket has stated that acquisitions are a top priority. The company acquired a petroleum additives company called Polartech in March, which it completely funded with its own free cash flow. Management has also stated that its main focus remains in the petroleum additives industry, particularly within industrial lubricant additives and fuel additives.

NewMarket will also be introducing a new passenger car motor oil in North America later this year.

The Zacks Consensus Estimate for 2010 is $11.66, or a 5% increase over 2009 EPS. The current 2011 estimate is 7% higher, at $12.49. Estimates have continued to be revised higher, as seen in the Price & Consensus chart.

NewMarket Corp will report earnings on Thursday, October 28 after the market closes.

Returning Value to Shareholders

The company has spent over $79 million year-to-date buying back stock. In July, the board of directors approved a new share repurchase program for up to $200 million through 2012.

After a six year hiatus, NewMarket began paying dividends again in 2006. Since then, the company has raised its dividend at a 32% compound annual growth rate. It currently yields 1.3%.

Valuation

The stock trades at just 10.2x forward earnings, a significant discount to the industry average of 14.9x. Factoring in a projected 5-year growth rate of 15%, NewMarket has a PEG ratio of only 0.7.

NewMarket's return on equity is an impressive 41%. That trumps the industry average of just 5.9%. This justifies the stock's higher than average price to book ratio of 4.1.

Momentum Stock: Longtop Financial Technologies Ltd.

Longtop Financial Technologies Ltd. (LFT: 38.65 0.00 0.00%) recently hit a new 6-month high on strong earnings, rising estimates and a bullish growth projection. Our last look at the company's business came on August 17 when Longtop reported strong Q2 results that handily beat expectations.

First-Quarter Results

Revenue for the period was up 72% from last year to $49 million. Earnings also came in strong at 27 cents, 12.5% ahead of the Zacks Consensus Estimate. The company now has an average earnings surprise of 13% over the last three quarters.

Longtop's largest segment, Software development, accounting for 79% of total revenue, was up 57% from last year to $39 million. Revenue from other services was up 169% to $10 million, where its acquisition of an IT outsourcing business contributed $2.4 million.

Awesome Balance Sheet

The company emerged from the quarter with its already strong balance sheet looking even better, with cash and equivalents up $118 million from last year to $345 million with a marginal debt load of $8 million.

Guidance and Estimates

Looking forward, Longtop noted that its first quarter its usually its weakest, and expects both income and margins to improve into Q3 and Q4. The company also said it expects this fiscal year to be the first on record to produce over $100 million in adjusted net income.

Estimates

The analysts are bullish too, with the current year up 7 cents on the good quarter to $1.52. The next-year estimate jumped three cents to $1.74, a solid 14% growth projection.

Valuation

Although LFT's forward P/E multiple of 25X is a premium to the S&P 500, it represents a sharp discount to its peers average of 53X.

6-Month Chart

On the chart, LFT has been rallying for the last three months, recently moving back to within striking distance of the all-time high of $41.77. The stochastic below the chart says shares are trading well away from over-bought territory. Look for support from the trend line on any weakness, take a look below.

Read the April 20 LFT article here

Last Week's Momentum Zacks Rank Buy Stocks

Agrium, Inc. (AGU: 83.00 0.00 0.00%) has been jumping higher since early July as key agricultural crops across the world see big price gains on strong demand and erratic weather. With a bullish next-year estimate and solid valuation, this Zacks #1 rank stock has plenty of upward momentum. Read Full Article.

SunOpta, Inc. (STKL: 6.29 0.00 0.00%) recently hit a new multi-year high on a strong Q2 earning surprise of 57% from early August. With a bullish next-year estimate of 27%, this Zacks #1 rank stock has plenty of upward momentum. Read Full Article.

Baidu, Inc. (BIDU: 99.74 0.00 0.00%) recently hit a new all-time high above $100 on strong Q2 results from late July that included a 13% earnings surprise. With an average earnings surprise of 17% over the last four quarters and rising estimates, BIDU looks like a solid momentum pick. Read Full Article.

National Beverage Corp (FIZZ: 14.09 0.00 0.00%) recently hit a new multi-year high after reporting its fourth earnings surprise in the last four quarters. As a proven performer in a challenging consumer environment, this Zacks #1 rank stocks looks like a solid momentum pick.

Michael Vodicka is the Momentum Stock Strategist for Zacks.com. He is also the Editor in charge of the new Zacks Momentum Trader Service.

Momentum Stock: Esterline Technologies Corp

Esterline Technologies Corp (ESL: 58.77 0.00 0.00%) recently hit a new multi-year high after reporting an solid 9% Q2 earnings surprise in early September.

Company Description

Esterline Technologies Corp. designs and manufactures engineered products and systems for the Aerospace and defense, industrial and commercial and medical markets primarily in the United States and Europe. The company was founded in 1967 and has a market cap of $1.77 billion.

Shares of ESL jumped higher on September 2 after the company reported strong Q2 results that handily beat expectations.

Second-Quarter Results

Revenue for the period was up 6% from last year to $383 million. Earnings also came in strong at $1.30, 9% ahead of the Zacks Consensus Estimate and up from $1.09 in the same period last year.

The company saw its biggest gains in Avionics and Controls, where sale were up 12% from last year to $194 million.

Esterline also scored on its margins, where gross margin expanded to 34.3% from 32.4% from last year general cost control measures and lower fixed costs on higher sales volume.

Balance Sheet

Esterline also used the good quarter to strengthen its balance sheet and improve liquidity, with cash and equivalents up $134 million from last year to $293 million while its total debt increased $12 million to $544 million.

Estimates

With the company raising its guidance on the good quarter, the analysts were quick to do the same, with the current year up 27 cents to $3.87 and the next-year estimate also gaining 27 cents to $4.19, a solid 8% growth projection.

Valuation

The valuation picture looks solid too, with ESL's forward P/E of 15X in line with the industry average.

2-Year Chart

On the chart, share have been in a general up trend for the last 18 months before recently spiking higher on the solid quarter. The MACD below the chart is looking bullish too, with the short-term average jumping ahead of the long-term average. The all-time high is close at hand, take a look below.

Michael Vodicka is the Momentum Stock Strategist for Zacks.com. He is also the Editor in charge of the new Zacks Momentum Trader Service.

Stock Analysis Of UTI From The Value Investing Congress (2008)

In the spirit of the upcoming Value Investing Congress which I plan on attending and reporting from, I found some interesting videos from the previous Congress in 2008 which I wanted to share. I discovered a total of 11 videos on the internet. Most of them are quite interesting, and informative.

I wrote about a brief summary of each video which I will be posting over the next few days, and embedded the video below.

It is important for context to understand that the conference took place in late 2008 at the height of the financial crisis.

In this video, three speakers discuss how to capitalize on variant perceptions via portfolio bets.  By reviewing three industry leaders on a micro- and micromanagement perspective, investors should have a better understanding about how to invest their money intelligently. One stock mentioned is UTI, a continuing education institute.  With their stock prices at an all time low, some may think it is a forewarning not to invest with the company.  While this can be a red flag for some there are variant views of value investing which have made putting funds into UTI stock intriguing.  While some skeptics say that tuition increases are too high, making it extremely difficult for students to afford going back to school, others think differently.

The variant view in investing in UTI that enrollment growth is forecasted to accelerate because of the demand of education and improved operations in the corporate environment.  Analysts have also shown a great concern on the student lending industry and how that will affect how students are approved for financial aid and loans in the college arena.  Experts in value investing feel these concerns are of no concern and overly focused on and that signs have already shown an improvement in performance.  While current expectations are at about 60 cents for this stock, forecasters are expecting a reasonable increase to $2 or more.

UTI has about 16000 students in eight different states.  They are the leader in the types of accelerated education and they actually have more than double the number of students over their competitors.  With a strong relationship with OEM companies, they receive free cars, instructional tools, and specialized training.  These relationships, totally up to 22, are the reason for the quality placement rate and default rate.  Returns on capital within the recent years have been great; however, affordability has become the biggest issue today close to $30,000.  Without an increase in grants and aide from the government are the reasons, why leads have not shown up ad reduced return on capital.  With new enrollments increasing in 2010 these percentages will increase and will be counter reciprocal.

Stock Picks: Adobe, Microsoft, Motorola, Netflix, Eastman Kodak

Adobe (ADBE: 26.99 -1.70 -5.93%) surged 11.28% or 2.96 to 28.69 per share in heavy trading on a report that Microsoft (MSFT: 24.57 +0.04 +0.16%) CEO Steve Ballmer discussed a possible buyout of the company. A report posted in the The NY  Times said Ballmer recently met with Adobe CEO Shantanu Narayen to talk about Apple's control of the cell phone market and how Microsoft and Adobe could work together to fend off the iPhone maker. The stock seems to have added fresh long positions. Calls witnessed higher accumulation of open interest. This suggests that the stock could move up. Hold your long position with stop loss at $26.18 for an initial target of $33.10.

 

Netflix, Inc. (NFLX: 149.64 -1.79 -1.18%) is ruling at a crucial level. While immediate resistance appears at $154.09, the stock finds support at $148.88. A close below this level could weaken the stock drastically to $140, which is very important support level for the stock.

 

Motorola, Inc. (MOT: 8.30 -0.29 -3.38%) is still in consolidation and another fall cannot be ruled out. But after all, another rise remains in favor as long as $8.42 minor support holds. Above $8.68 will target a test on 9/9.30 resistance zone next. Keep a close eye on MOT for friday's trading session.

 

Eastman Kodak Company (EK: 4.32 +0.14 +3.35%) closed slightly higher on Thursday, as it hit a high of $4.20 on the day. Today's high is resistance for a follow through move on Friday. Only a close above $4.34 would change the outlook to bullish for the stock. The short-term trend seems to be positive.

The following list show stocks where it was detected a higher than normal volume over the last 2 days

BZCN – BizAuctions, Inc.
ABK – AMBAC FINANCIAL GRP
SKGO – Skybridge Technology Group, Inc.
PCFG – Pacific Gold Corp.
GWTR – Global Water Technologies, Inc.
EQIX – Equinix, Inc.
AMNG – The Amergence Group
PMI – P M I GROUP INC
CTXS – Citrix Systems, Inc.
TIVO – TiVo Inc.
JUNP – Juniper Group Inc.
VCTY – Videolocity International, Inc.
HERO – HERCULES OFFSHORE I
COGT – COGENT INC
MTB – M & T BANK CORP
VMW – VMWARE INC CLASS A
FMCN – Focus Media Hldg
TSYS – TeleCommunication S
BANR – Banner Corp
WL – WILMINGTON TRUST CORP
FFIV – F5 Networks, Inc.
ENTR – Entropic Communication
RVBD – Riverbed Technology
NIHD – NII Holdings Inc
SVVS – Savvis Cp
IVAN – Ivanhoe Energy Inc
TTES – T-3 Energy Services
STZ – Constellation Brand
BGP – BORDERS GROUP INC MICH
DENN – Denny's Corp
DFT – Dupont Fabros Techn
PGPM – Pilgrim Petroleum Corporation
SPBU – NEWPORT INTL GRP INC
RBN – ROBBINS & MYERS INC
TMRK – Terremark Worldwide
SMFJY – Sumitomo Mitsui Financial Group
SLG – SL Green Realty Corp
TWI – TITAN INTL INC
GSM – GLOBE SPECIALTY MET
OPLK – Oplink Communications
HA – Hawaiian Holding
ONB – OLD NATIONAL BANCOR
AMSC – American Superconductor
CCAJ – Coastal Capital Acquisition Corp.
PRWT – PremierWest Bancorp
TTRIF – Thermo Tech Technologies, Inc.
DMND – DIAMOND FOODS
OGE – O G E ENERGY CORP
BIOF – BioFuel Energy Corp
AYI – ACUITY BRANDS INC
AXU – ALEXCO RESOURCE
AKRX – Akorn, Inc.
ARDM – Aradigm Corporation
PTQMF – Adrian Resources Ltd
SRFDF – STARFIELD RES INC
ANO – Anooraq Resources Corp
INTK – Industrial Nanotech, Inc.
NDN – 99 CENTS ONLY STORES
SNRY – NP Capital Corp
MFGD – Upstream Wrldwde
ECOF – Rockstar Indust
CRXL – Crucell NV
XIN – Xinyuan Real Estate Co
THMD – THERMADYNE HLDGS CO
NEON – SBE, Inc.
UBRG – Universal Bioenergy Inc.
DEAR – Dearborn Bancorp, Inc.
LEE – LEE ENTERPRISES INC
NILSY – MMC Norilsk Nickel
PFNO – ParaFin Corporation
DDDC – deltathree Inc
BRGO – BERGIO INTL INC
CDZI – Cadiz Inc
MFB – MAIDENFORM BRANDS INC
KIWB – Magnitude Information
PHUN – PETROHUNTER ENERGY
FLPC – First Liberty Power
PPHM – Peregrine Pharmaceutical
AGCZ – Andes Gold Corp
DRWI – Dragonwave Inc
ACTI – Actividentity
PVHO – Provision Holding Inc
MDW – Midway Gold Corp.
CREQF – China Rare Earth Hld
GRNH – GreenGro Technologies
MXOM – Sunburst Acquisition
FRDM – Freedom Environment
OSUR – OraSure Technologies
ACYD – AMERICAN COMMUNITY
SGCA – Strategic American Oil Corporation
UGDIF – Unigold Inc
WRLD – World Acceptance Co.
BTM – Brasil Telecom SA
WRGL – Warrior Girl Corp
STXS – STEREOTAXIS INC
MBRKQ – ADVANCIS PHARM
XPO – SEGMENTZ INC
INKN – Shrink Nanotechnology
ONCI – Sound Revolution Inc
SWIR – Sierra Wireless, Inc.
ASPS – Altisource Portfolios
FUN – CEDAR FAIR L P
NVSR – NavStar Technologies
SMNG – Gold Coast Mining Corp
AEN – Pipex Pharmaceutical
SNVP – Sa-oy Energy Corp
MHTX – Manhattan Scientifics, Inc.
ICOP – Icop Digital
DHG – DWS Dreman Value Inc
EXSA – American Lending & Acquisition Group
BPAC – EATware Corp
NXCO – Nexicon, Inc.
MBCI – Smartec Holdings Inc
SECI – Sector 10 Inc
ARWD – CNE Group Inc

List of Stocks whose chart shows a Bollinger Band Expansion

PCFG – Pacific Gold Corp.
EQIX – Equinix, Inc.
TXN – TEXAS INSTRUMENTS INC
ADBE – Adobe Systems Incorporation
AUY – YAMANA GOLD INC
AAI – AirTran Holdings, Inc
SAY – SATYAM COMPUTER SER.
WAG – WALGREEN CO
XMDC – XTend Medical Corporation
ADI – ANALOG DEVICES INC
USSIF – U.S. Silver Corp
ACV – ALBERTO CULVER CO
LLNW – Limelight Networks Inc
ENDP – Endo Pharmaceutical
NTWK – NetSol International
NVTL – Novatel Wireless Inc
AMCC – Applied Micro Circuits
SGEN – Seattle Genetics
EDU – New Oriental Education
AGNC – American Capital Ag.
CGC – Capital Gold Corp
AVGO – Avago Technologies
HYC – HYPERCOM CORP
PVHO – Provision Holding Inc
ZAGG – Zagg Incorporated
THO – THOR INDUSTRIES INC
OAS – Oasis Petroleum Inc
KEI – KEITHLEY INSTRUMENTS
NHWK – NIGHTHAWK RADIOLOGY
BNE – BOWNE AND COMPANY INC
ACTL – Actel Corporation
XPO – SEGMENTZ INC
CPRT – Copart, Inc.
TRGL – Toreador Resources
MNEAF – Minera Andes Inc
AMCN – AirMedia Group Inc
GLDD – Great Lakes Dredge
AUGT – InnerSpace Corp
VICL – Vical Incorporated
MEDQ – MedQuist, Inc.
ITCD – ITC DeltaCom, Inc.
MLXO – Michelex Corporation
AUMN – Golden Minerals Co
NXTM – NXSTAGE MEDICAL INC
LRAD – American Technology

Disclaimer : This is not an investment advisory, and should not be used to make investment decisions. Information in AC Investor Blog is often opinionated and should be considered for information purposes only. No stock exchange anywhere has approved or disapproved of the information contained herein. There is no express or implied solicitation to buy or sell securities. The charts provided here are not meant for investment purposes and only serve as technical examples. Don't consider buying or selling any stock without conducting your own due diligence.