We have entered a superstock drought as this week will be the fourth consecutive week where I cannot find any potential superstock of the we...

Weekly Superstock Scan 16 April 2018 - 20 April 2018: Nil

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We have entered a superstock drought as this week will be the fourth consecutive week where I cannot find any potential superstock of the week. Looking at the broader market, there is no surprise for the lack of superstock as the market halted its advance since February and entered a trading range.



This week, I was quite optimistic on finding a potential superstock after completing the technical scan as a number of companies did pass the scan.

On the US front, we have CVU and HIHO. CVU did not report consecutive growth in year on year EPS. HIHO did, but there is too little information on the company. Firstly, there was no reason for the surge in price last week with no earnings release nor press release. Next, HIHO is foreign issuer and does not file 10-Q. The 6-K form filed by foreign issuer contains too little information on the company. Finally, the company does not hold conference call to showcase developments within the company.

On the Singapore front, similarly we have two companies that passed the technical scan. First was Excelpoint that did not pass the fundamental screen. The other company was Sheng Siong. It did report consecutive EPS growth and a number of brokerage firms issued buy calls for the company, causing share price to surge last week. However, I think that the company lack catalyst as even though the analyst reports brushed off e-commerce as a concern, I felt that Sheng Siong's earnings in the upcoming quarters will be affected by e-commerce as their major competitors are aggressively pushing their e-commerce platforms. Moreover, the valuation for the company is far too high at above 20 times its earnings.

That is all for today's update. Let's hope the next superstock come soon!


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