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Tuesday, September 16, 2008

Rumours overheard at Robinson Road!!

I was at Robinson Road today and saw a queue of policy holders at
AIA tower wanting to redeem their policy and/or sell their AIA funds.
Being KPO, I went to talk to some of the people in the queue, and somehow
the topic settled on Stock Market rumours which is also my cup
of tea, so I walk along with them on the outskirt of the queue,
and record the rumours that I heard:

First off we have the French, Mr BNP said that Wilmar and Golden Agri need
to slim down and reduce both their TP to $3.80 and $1.10 now.
But he like SMRT and increase the TP to $2.17
(Frankly, Wilmar and Golden Agri will always be in the trader's mind
as long as there is a sector rotational play, so keep a close watch on it
together with First Resources and Indofood)

Next we have the Japs, Nomura san like Sembmarine so much and
upgraded it to a Strong Buy rating, but Daiwa san don't like
Ferrochina and reduce the TP to $1.55
(I like Ferrochina both for its fundamental and it as a long-time
trading stocks. Infact, I have grab it as low as possible during
the last 2 days unjustly big fall in the price. I am holding it
for a mid-term period, and it should be quite safe.)

Let's see what the Aussies and the Europeans got to say about our stocks: Mr Macquarie reduce First Resources, Indofood and Olam's TP to $1.20, $2.60 and $2.90 respectively.
(I have already given my view on the palm plantation stocks on top, and Olam being a ever-growing commodities stock will always be in my radar watch)

Swiss UBS and British Cazenove downgraded 3 stock's TP, Sembcorp become a $4.80 TP by UBS, and our dearest Singtel become $3.15 and China Hongxing TP drop to a mere $0.53 by Cazenove. (Singtel being the largest market cap stock in Singapore will always be in the limelight and it should be well supported at major support level.)

Lastly we have the sick and troubled Americans: Citi still feel that our market is quite strong enough to achieve a target of 2820 for STI, which is good enough for me. But they also reduce SGX TP to $4.70, which is a steal at this level.

We have troubled ML next, and they downgraded our 3 local banks, with DBS and OCBC become Underperform, and UOB become Neutral. The Revised TP are $16 for DBS, $8 for OCBC and $20 for UOB, and doubt that they will remain a “safe haven” for much longer. (I sincerely believe we will last longer than them, and at this time next year, maybe we will no longer see ML, or it has a new name or a new "master")

Cosco's rating was reduced to Neutral by ML too, but I see it more of a SELL as the TP dropped to $1.75 from $4.80, what do you think?

Look like maybe there will be more queues forming at different places, and I should keep a look-out and join them to discover more rumours that are flying all around us now.....

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