From OCBC:
Fortune REIT: Affected by rising discount rates
The
prospect of an early tapering of US Federal Reserve’s quantitative
easing program has driven up bond yields and, as a result, high-yield
counters such as Fortune REIT (FRT) have seen a correction in their
prices. FRT’s unit price has fallen 15.1% since the peak of HK$8.43 on
15th May this year (but still up 12.4% YTD). We note that rising
risk-free rates will not have much impact on cost of debt for FRT given
that interest cost for ~76% of FRT's debt exposure has been hedged to
fixed rates with effective interest cost at 2.76%. FRT has no
refinancing needs till 2015 and has a weighted term to maturity of 2.7
years. FRT's gearing continues to remain low at 23%. Accounting for the
higher HK 10-year government risk-free rate (which climbed from 0.8% at
the beginning of May to 2.0% currently), we raise our cost of equity
assumption to 7.5% from 6.6%. We also raise our LT nominal growth rate
for dividends from 1.75% to 2.0%. Our FV falls to HK$7.51 from HK$8.64.
We maintain a BUY rating on FRT.
OSIM International: 2Q13 results preview
OSIM
International Ltd (OSIM) is scheduled to report its 2Q13 results on 30
Jul after trading hours. We forecast a 9.5% and 11.0% YoY growth in its
revenue and PATMI to S$169m and S$25m, respectively. This would be
driven largely by a full quarter of contribution from its recently
launched uAngel Sofa-Tranzformer massage chair. We see OSIM as a
beneficiary of China’s immense consumer market, underpinned by a rising
middle-class population and affluence. The group has established a
strong brand profile in China given its near 20 years of experience
there. Its share price has also remained fairly resilient despite the
recent global equities sell-down, supported by its solid financial
performance and decent FY13F yield of 3.0%. Maintain our BUY rating and S$2.21 fair value estimate on OSIM.
From UOB:
Genting Singapore (GENS)
Last price: S$1.38
Technically, GENS has rebounded from a level near
S$1.30 and could be resisted near S$1.42...
Singapore's casino gaming market declined 7.5% in
2012 to US$4.17b, in contrast to an earlier 62% yoy
growth in 2011. In our institutional research report
dated 28 Jun 13, we maintain our SELL
recommendation for GENS with the same target price
of S$1.17, pegged at 10x 2013F EV/EBITDA. We
expect 2Q13 rolling chip volume to have contracted
qoq, after having recovered for the third consecutive
quarter to about S$20.8b in 1Q13 (+38% yoy, +14%
qoq). Although rolling chip volume at Resorts World
Sentosa has bottomed out in 4Q11 and is set to
moderately recover 7% in 2013, we foresee sluggish
growth prospects in 2014.
Ascendas REIT (AREIT)
Last price: S$2.30
Technically, AREIT may continue its V shape rebound
towards S$2.40 after being supported at S$2.07.
On 21 Jun 13, AREIT announced that the proposed
divestment of 6 Pioneer Walk, Singapore to GKE
Private Limited for S$32m has been completed. In our
institutional research report dated 11 Jun 13, we
upgraded AREIT to a BUY recommendation with an
unchanged target price of S$2.86, based on the
Dividend Discount Model (required rate of return:
6.8%, terminal growth: 2.0%). Growth fundamentals
remain intact with DPU expected to grow 4% in FY14
and 8% in FY15 on the back of positive rental
reversions, completion of asset enhancements and the
completion of new developments. Business park
rentals are expected to remain resilient in light of the
bottoming of office rentals in 2013.
Wilmar International (WIL)
Last price: S$3.15
Technically, WIL is likely to be supported above
S$2.99 for further upside. The stock currently is being
resisted at S$3.38.
On 1 Jul 13, WIL plans to cut ties with Indonesian
suppliers that clear land with illegal fires after blazes
engulfed Singapore in a record haze. In our
institutional research report dated 1 Jul 13, we
upgrade the regional plantation sector to
OVERWEIGHT from UNDERWEIGHT and maintain
our BUY recommendation on WIL with the same target
price of S$3.80, in view of the recovery in CPO prices
on the back of easing concern over high inventory
levels and a slower production growth in 2014. The hot
weather and the ringgit depreciation also provide
short-term support to CPO prices. We raise sector
valuation to upcycle valuation given the improving
CPO price uptrend momentum. We also maintain our
main CPO price assumptions of RM2,500/tonne for
2013 and RM2,950/tonne for 2014 and 2015.
Keppel Corp (KEP)
Last price: S$10.45
Technically, KEP could be supported above S$10.00
should it be resisted near S$10.80.
The Keppel Group of Companies plan to announce its
2Q13 & 1H13 financial results on the following dates:
K-Green Trust and Keppel REIT on 15 Jul 13, Keppel
T&T and Keppel Land on 17 Jul 13 and KEP on 18 Jul
13. In our institutional research report dated 19 Apr
13, we maintain our BUY recommendation for KEP
and raise our target price from S$12.55 to S$12.80,
based on a revised sum-of-the-parts valuation, which
still values Keppel’s O&M business at 18x 2014F PE.
We raise our O&M operating margin assumption by
0.5ppt from 12.5% to 13.0%. We also raise
infrastructure earnings but reduce investment gains.
Overall, we raise our 2013 and 2014 net profit
forecasts by 6.5% and 2.1% respectively, but maintain
our 2015 forecast. Our earnings forecasts have
factored in contract wins of S$5b for 2013 and S$6b
each for 2014 and 2015.
Hutchison Port Holdings Trust - Sluggish Apr-May throughput in HIT
but attractive yield. Cut target price to US$0.88.
(HPHT SP/BUY/US$0.74/Target: US$0.88)
FY13F PE(x): 23.2
FY14F PE(x): 22.6
HIT’s Apr-May throughput saw 20% yoy decline, dragged down by the
strike. The strike at Hong Kong International Terminal (HIT) ended in
early-May and all subcontractors agreed to raise all workers’ salaries by
9.8%. As we have previously expected, the increase is unlikely to be
passed through to HPHT as it has already projected a 5-6% yoy increase
in services fee paid to subcontractors. However, throughput at HIT
weakened by almost 20% yoy in April and May due to the strike and
HPHT expects the yoy decline to narrow in 2H13.
Maintain BUY and cut target price to US$0.88. Based on the 3-stage
DCF model, we cut our target price to US$0.88 to reflect a potential yoy
decline in HIT in 2013. We expect the one-off decline in 2013 DPU to have
been priced into the recent share price weakness. Dividend yield becomes
attractive. Despite a lower-than-expected 2013F DPU, current year
dividend yield of 7% is still higher than most trust/REITs listed in
Singapore. Downside risk of DPU is quite limited from 2013 onwards given
a low base of HIT throughput in 2013 and consistent outperformance of
Yantian.
Super Group - Opportunity from price pullback; on track for solid
growth.
(SUPER SP/BUY/S$4.41/Target: S$5.60)
FY13F PE(x): 26.0
FY14F PE(x): 20.3
Solid Asian consumer proxy. Super remains on our BUY list with a PEGbased
target price of S$5.60 (unchanged). Despite the high valuation, we
believe its improving brand positioning, strong cashflow, solid execution
and market share in selective growth markets such as Myanmar and
Philippines as well as China venture puts its on a new growth trajectory.
Following its strong execution, we project its ROE to range 21-23% in
2013-14, a historical high since 2003. We see potential share price
catalysts from: a) better-than-expected earnings growth in 2013-14F, b)
accretive M&As, and c) continued downtrend in the prices of raw materials
(coffee and sugar).
Medium-term upside from China. The group has soft-launched its 3-in- 1
coffee in China in 1Q13, and early indications are positive. From a zero
base in 4Q12, 3-in-1 coffee already accounts for 2-3% of group consumer
branded sales in 1Q13. The official launch in China is targeted in 3Q13
and management is excited about the prospects. The instant coffee market
in China is estimated at US$1.5b/annum but upside is strong, given the
low consumption per capita. As an indication, China tier-1 city per capita
coffee consumption is 5 cups/year, which compares with 400-500 cups in
more established markets such as Thailand, Malaysia and Philippines. For
2013, management is targeting to achieve 9% of its consumer branded
segment sales from China (vs 2-3% as at 1Q13). The push into China
could raise its budget for advertising & promotion but Super is aiming to
maintain this at 13% of turnover. A worst case would be 15% but we think
this is unlikely.
Updates in other key markets. The unrests in Myanmar are beginning to
normalise and this is expected to lead to improving sales. As for Indonesia
(2% of consumer branded sales), consumers are beginning to exhibit signs
of promotional fatigue (price war) and this could hopefully lead to more
normalised competition and an easing price war. However, management is
upbeat on prospects in China and the Philippines, and hopes that growth
in these markets will help offset weakness in Indonesia and Myanmar.
Overall, the group hopes to deliver a 10-15% yoy top-line growth from the
consumer branded segment in 2013F.
Possible margin surprise from lower raw material costs? There could
be potential upside risk to margins should raw material costs trend down
further. As an indication, sugar prices are currently US$500/tonne
(compared with US$510/tonne in FY12) whereas Robusta coffee is
currently S$1,720/tonne (compared with US$2,200/tonne in FY12). So far
in 2013, the group has not raised prices for its 3-in-1 coffee but we think
that Super’s rebranding exercise in Jan 13 would build brand equity and
thus eventually improve pricing power in the medium term. In 2013, there
are no immediate plans to raise prices. Utilisation at its non-dairy creamer
capacity is 80% whereas for its soluble coffee capacity is 50%.
From Maybank KE:
CWT Ltd: Road Bumps For Commodity Trading; Maintain Buy, TP $1.90
CWT SP | Mkt Cap USD691.7m | ADTV USD1.2m
Maintain BUY with reduced TP of SGD1.90. With the dampening of
demand from China, we now think our previous expectations on growth
execution were too optimistic, especially in the near-term. We cut
FY13-FY15F estimates by 20%/13%/10%, but think the recent share price
correction is overdone.
Warehouse rental rates have risen by 8% and capital values by 34% in
the past 12 months alone. We believe our assumption on the value of its
warehouse portfolio is conservative. New warehouses coming on stream by
1Q14 will add to earnings.
We see this as a great entry opportunity, with low downside risk.
Our new TP of SGD1.90 reflects lower earnings estimates, but still
presents 30% upside from here.
As Featured in The Sunday Times
Nicolas Darvas Box Trading Secrets
Success Switch
Thursday, July 4, 2013
Local Brokerages Stock Call 3 July 2013
Tuesday, July 2, 2013
Local Brokerages Stock Call 2 July 2013
From OCBC:
Mapletree Logistics Trust: Strong take-up rates at MBLH
Mapletree
Logistics Trust (MLT) announced that Menlo Worldwide Logistics has
signed a binding commitment to lease 48,700sqm at MLT’s Mapletree Benoi
Logistics Hub (MBLH) for a period of 10 years. Together with Menlo’s
commitment which accounts for 55% of MBLH’s NLA, we understand the
property is now 75% pre-leased, with the balance in the advanced stage
of negotiation. We are positive on this development as it reflects
continued healthy leasing demand and strong interest from major
third-party logistics service providers. Judging from the strong
pre-commitment levels, we believe that MLT will be able to meet its
estimated yield-on-cost of 8-9%. In addition, we expect the long lease
to further enhance MLT’s already resilient lease structure. However, as
we have previously factored in the redevelopment project, we make no
change to our forecasts. We maintain HOLD on MLT with an unchanged fair value of S$1.15.
Vard Holdings: Lower profit guidance
Vard
Holdings warned that its 2Q2013 financial results (due 11/7/2013) are
likely to be below current consensus estimates due to difficulties in
its operations in Brazil. After a recent assessment, management found
further delays, cost over-runs at its Niteroi yard due to
lower-than-expected productivity, additional costs for outsourcing and
higher start-up costs at the Promar yard. This comes as a surprise as
the group had previously guided that its Brazil operations are coming
under control and would stabilize by year-end, suggesting that the
situation is more fluid than initially thought. In view of the poor
earnings visibility, we switched our valuation methodology to PBR. We
also cut our FY13F/14F net profit estimates by 20-25%. Downgrade to HOLD with lower FV estimate of S$0.93 (previously S$1.52) using 1.5x PBR (2 std dev below).
From Maybank:
Del Monte Pacific: Time For A Pina Colada; Initiate Buy TP $1.00
DELM SP
| Mkt Cap USD747m | ADTV USD0.5m
DMPL is a dominant F&B player in the
Philippines, where it owns the rights to the Del Monte brand. New management
team since 2006 has been reshaping the company and the fruits of their labour
would be more evident in the next three years.
We see the company
experiencing a structural shift towards higher margins and ROE (from 13%
currently to 20% by FY15F), as its business model changes from being an OEM
exporter outside Philippines to a brand owner. This will be accelerated by the
expiry of unfavorable supply contracts by FY14.
Our TP of SGD1.00 is pegged
to 25x FY14F PER, justified by a 22% net profit CAGR and dividend payout of 75%,
which is superior to ASEAN-listed peers. Initiate with BUY.
Sino Grandness: Big Uncertainty Removed;
Maintain Buy TP $1.89
SFGI SP | Mkt Cap USD333m | ADTV USD2.1m
Sino Grandness
announced yesterday that it has obtained a no-objection letter from SGX for the
proposed Garden Fresh spinoff. It is an important milestone that we have been
waiting for. We are more confident about a successful Garden Fresh IPO than
before, thus we change our valuation methodology to SOTP. Our target price is
raised to SGD1.89 accordingly. Maintain BUY.
Garden Fresh IPO is likely
to launch in the next twelve months and we are optimistic on an at least
mid-teen FY13 IPO PER.
Assuming a successful Garden Fresh IPO and parent company Sino
Grandness selling some vendor shares, some special dividends can also be
expected in FY14.
From UOB KH:
United Envirotech (UENV SP, U19)-
Resistance: S$1.00
Support: S$0.835/0.715
The stock has retraced from S$1.00 and on the
immediate basis the support is at S$0.835. The
stock may trend towards S$0.715 should there be a
follow through after the bearish crossover has
formed at its weekly MACD indicator.
Thai Beverage (THBEV SP, Y92) –
Technical BUY with +13.3% potential return
Last price: S$0.615
Resistance: S$0.71
Support: S$0.58
BUY with a target price of S$0.71 with tight stops placed
below S$0.58. The stock is trading above its 120-day
moving average and has attempted to close above its
mid-Bollinger band after rebounding from its lower band.
Its Stochastics indicator has formed a bullish crossover
Watch to see whether prices could test S$0.58 as its
MACD indicator looks poised to form a bullish
crossover.
Vard Holdings (VARD SP, MS7) –
Technical SELL with +11.9% potential return
Last price: S$0.965
Resistance: S$1.20
Support: S$0.85
SELL with a target price of S$0.85 with tight stops
placed above S$1.02. The stock has been resisted by
its declining 50- and 100-day moving average and has
gapped down. Its rising negative DI has been
accompanied with a rising ADX. Watch to see whether
prices could find support near its gap up on 7 Oct 11
and whether its MACD indicator could trend lower.
Interra Resources (ITRR SP, 5GI) –
Technical SELL with +20.4% potential return
Last price: S$0.44
Resistance: S$0.54
Support: S$0.35
SELL with a target price of S$0.35 with tight stops
placed above S$0.47. The stock has broken below its
rising 150-day moving average, and its declining 15-day
moving average has crossed below its 35-day MA. Its
RSI indicator looks poised to trend lower, and its
negative DI appears to be heading north with a potential
rising ADX. Watch to see whether prices could break
below S$0.41.
Singapore Property – Residential: Loan curbs to moderate massmarket
pick-up
CapitaLand (CAPL SP/BUY/S$3.01/Target: S$4.45)
Ho Bee (HOBEE SP/BUY/S$1.945/Target: S$2.45)
OUE (OUE SP/BUY/S$2.77/Target S$3.63)
The Urban Redevelopment Authority’s (URA) latest flash estimates
indicate that private home prices increased by 0.8% qoq in 1Q13 following
a 0.6% gain in the previous quarter. Housing Development Board (HDB)
data shows that public housing prices advanced at 0.5% qoq, the slowest
growth since 1Q09, vs a 1.2% qoq growth in 4Q12. The recent loan
curbs are likely to moderate the pick-up in mass-market prices. For
2013, we expect volumes to drop by 20-40% yoy and prices to moderate
by 3-8% as investment demand slows down post recent policy measures.
We prefer deep-value and diversified property stocks with exposure
to the office sectors, with CapitaLand, OUE and Ho Bee as our top
picks.
Local Brokerages Stock Call 1 July 2013
From OCBC:
SG Residential Property: A total debt profile framework
Summary:
MAS announced a set of Total Debt Servicing Ratio (TDSR) requirements
whereby FIs will now account for borrowers’ other debt obligations when
granting property loans. A TDSR limit of 60% will be imposed. We see an
immediate impact that borrowers now cannot circumvent LTV and ABSD rules
by purchasing homes under others while acting as loan guarantors. In
addition, the TDSR framework would also be applied to the refinancing of
loans. From our channel checks, this could affect, off the bat, 5%-20%
of the current cross-section of buyer profiles. Over the mid-to-longer
term, we see these measures further constricting financing for buyers
with existing property loans. That said, the current 60% TDSR limit
appears to be fairly reasonable and is not intended to cool down the
property market as much as to encourage financial prudence. Maintain NEUTRAL
on the domestic residential sector. We continue to prefer developers
with diversified portfolio exposure and strong balance sheets. Maintain BUY on CapitaLand [BUY, FV: S$3.77], Keppel Land [BUY, FV: S$4.59] and CapitaMalls Asia [BUY, FV: S$2.55].
SATS Ltd – Middle-East exit for now
Summary:
SATS announced that it will sell its 40% equity interest in its Adel
Abuljadayel Flight Catering Company joint venture for a cash
consideration of US$18.4m (~S$23.4m), which is slightly below the book
value of the asset as of 31 Mar (S$24.1m). Despite the short two-year
tenure of the JV, the exit does not signal a change in management intent
regarding the region. Management still intends to re-enter the Middle
East, and will continue to pursue other attractive investment
opportunities. In the interim, the outlook for SATS remains positive and
we believe the counter’s earnings stability and healthy dividends will
allow it to stay resilient amidst recent market volatility. Maintain HOLD with an unchanged fair value of S$3.15.
Vard Holdings: Profit Guidance
Summary:
Vard Holdings warned that its 2Q2013 financial results are likely to be
below current consensus estimates due to difficulties in its operations
in Brazil. The group had previously guided that its Brazil operations
are coming under control and would stabilize by year-end. However, after
a recent assessment, management found further delays, cost over-runs at
its Niteroi yard due to lower-than-expected productivity, additional
costs for outsourcing and higher start-up costs at the Promar yard.
These issues have adversely impacted its 2Q margin. Operations elsewhere
are stable and Vard Holdings as a group remains profitable. Our FY13F
net profit estimate is 6% below consensus, but we would likely revise
lower after speaking with management later to get more colour. Thus, we
put our Buy rating and S$1.52 fair value UNDER REVIEW.
From Maybank:
Cordlife Group: The Cords That Bind; Initiate at BUY TP $1.29
CLGL SP | Mkt Cap USD161.8m | ADTV USD5.0m
Initiate coverage with buy at street high target price of SGD1.29.
Cordlife is an umbilical cord blood bank which provides cord blood and
cord tissue storage services in 6 countries with either high
penetration rate or high birth rate within Asia. Occupying a strong
platform to expand its product range combined with a dominant position
in Singapore, Philippines, Indonesia and strong presence in Hong Kong,
India and China, it is poised to transform into Asia’s infant products
champion over the next two years.
At its current price, we believe the market has not fully priced in
Cordlife’s favourable market position, strong regional presence,
excellent product expansion opportunities, exceptional margins and high
competitive advantages As a result, its valuation multiple is deeply
depressed. Our TP of SGD1.40 is pegged at 23x FY14F PER, in line with
its global peers and 27% discount to its local peers.
The nationwide rollout of cord tissue banking coupled with completed
acquisition of established operations overseas are expected to
significantly boost Cordlife’s revenue in FY14F.
Banks and Property: Standardising the Debt Servicing Ratio
The Monetary Authority of Singapore’s (MAS) latest Total Debt
Servicing Ratio (TDSR) framework should be viewed more as a prudential
measure to streamline the DSR computation, rather than as a policy
tightening measure or property cooling measure, in our view.
While some cooling off of property loan approvals cannot be ruled
out, we expect the impact to be limited, given that the DSR currently
averages a comfortable 40-50% for the Singapore banks.
We maintain our Neutral stance on the banks with DBS being our top
pick – 2013 yields are a decent 3.7% post-correction while the group is
least exposed to Singapore’s property sector (19% of total loans ex DBS
HK vs 23% and 26% for OCBC and UOB respectively, ex-Malaysia).
We also expect some immediate negative impact on property sales,
mainly as investment demand may be dampened. We maintain that the mass
market residential segment is the most vulnerable to downside price
pressure and total new home sales should come in at 16-17k units for
2013. Prefer diversified developers and retail mall players.
Vard Holdings: Brace for a Roller Coaster Ride; Maintain Buy TP$1.52
VARD SP | Mkt Cap USD1.0b | ADTV USD5.6m
Vard issued a profit warning stating that it expects 2Q13 net profit
to be lower than current consensus market estimates. Further delays and
cost overrun at the Niteroi yard in Brazil resulted in additional cost
in outsourcing.
Our view has been to look beyond FY13F for the recovery growth in
FY14F. While our FY13F forecast is lower than consensus, our initial
assessment after our call with management is that FY13F net profit
could be even lower than our expectations.
We cut our FY13F/14F/15F net profit forecasts by 19%/5%/3%. Brace
for a roller-coaster ride in share price in the short term, but we
maintain our view that (1) better-than-expected order wins will drive
FY14F recovery and (2) valuations at current levels are still
unjustifiably low after our earnings cut. TP thus falls SGD1.52, still
pegged to 9x PER on average FY13-15F earnings.
From DBS:
Vard - 2Q to miss expectations; downgrade to HOLD
with lower TP of S$1.16
We expect 2Q13 earnings for Vard to miss expectations
due to cost overruns of Brazil projects. This is a dampener
on confidence, and our analyst has cut FY13/14F earnings
by 11/7%. Downgrade to HOLD; TP lowered to S$1.16
(Prev S$ 1.46).
Plantation counters are still in the last leg of correction.
Our analyst recommends investors who are underweight
in this sector to start rebuilding positions in the latter part
of the year – when palm oil stockpiles peak. He expects
CPO prices to weaken between now and end of the year
on rising inventories and to rebound by next year, led by
global demand recovery. He has cut CY13/CY14/CY15
crude palm oil (CPO) price forecasts by 11%/2%/4%, and
expects spot CPO prices to average RM2,350 (US$791) in
3QCY13 and RM2,300 (US$777) in 4QCY13. The
upcoming 2Q13 results are expected to lag consensus, as
realised CPO ASP is lower than market expectations.
Switch to Singapore listed planters (close to -1SD forward
PE); accumulate others by year-end. Upgrade to BUY for
Bumitama Agri (TP: S$1.23, (Prev S$ 1.12)) and Wilmar
(TP: S$3.48, (Prev S$ 3.72)); maintain BUY for First
Resources (TP: S$2.18, (Prev S$ 2.14)).
SembCorp Marine has secured two turnkey contracts for
jack-up rigs from repeat customer Oro Negro worth
US$417m in total, scheduled for delivery by Jul 2015 and
3Q 2015. Including the two jack-up rigs ordered in Dec
2012 and two in Mar 2013, Oro Negro now have six
units of Pacific Class 400 jack-up rigs on order with SMM.
These new contracts will bring SMM's YTD wins to
S$3,212m, making up 64% of our new order assumption
of S$5bn. Maintain (HOLD, TP: S$4.70).
Monday, July 1, 2013
Market View 1 July 2013
A fresh start to Q3 2013 and of course, the month
of July. In a flash, we entered the 2nd half of the
year, so how did the readers of this blog doing
with the finances for the last 6 months?
Email or Skype me to tell me about it.
You know, when I saw that the market begin to
fall before I left for my holiday, I was expecting
to see some recovery when I was away.
But somehow, my travel jinx is still very much
intact and powerful, and the market continues to fall in
my absence. This is really getting very very interesting.
When I checked my email, it is full of the same
questions," Should I buy now?" or even more simply,
"What should I do now?" I have gone through as
many charts as I possibly can, and also read up
on some important news locally and aboard.
Same as the case with the haze situation now,
the picture and vision is getting clearer as the days
proceed. I always say that I am a half-full person
and I continue to see that in our market at the moment.
I will do a thorough write-up tomorrow, both on this
blog and the Mentor Group too. Regretfully, I have not
been contributing much to the Mentor Group, and I
believe this will change for the better.
I expect a rather busy session with the Skype discussion
today as I believe I will receive many questions.
I may be slow in replying but I will seek to answer
everyone's question as soon as possible.
I have only a head and 2 hands and 2 eyes so I can't
work as efficiently as a robot so don't expect the same
response from the machine.
