Sunday, November 19, 2006

Gallant Venture

I hope to post to my blog more regularly from now onwards and hopefully will help me and my little ninjas in uncovering little gems on the Singapore bourse.

The technical picture of GallantVentures looked rather bullish as it retriggered the parabolic SAR again and it also broke the downsloping resistance line. It has been on an upward trend since its IPO back in June 06. A longer term trader who wants to be in the market at all times will go long now at 95 centsand the 'cut loss' level is around the 86 cents as implied by the Parabolic SAR .

Fundamentally, the stock is not cheap as it trades at 52x 2006F PE. It may not be fair to use PE as a valuation methodology for a 'real estate' stock. Kim Eng gave two target price, 102 (if Lagoi Bay is developed) and 177 (present value of its total land bank and cashflows). I have no comments on the FA of this stock except that it is 'not very cheap' currently. However, if the value of its landbank rises as the island redevelops and attract more investors, that is another story altogether.


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