Monday, December 04, 2006

OCBC Investment Roadmap 2007

I attended the OCBC Investment Roadmap 2007 on Saturday Dec 2, where Daryl Guppy was invited as a guest speaker. To be honest with you, I bought his book "Market Trading Tactics" sometime back and I was never impressed with that book. This perception was somehow 'reinforced' today as I walked away learning nothing new except for a slightly better understanding of how Guppy Multiple Moving Average indicator works. He could be a really good trader but somehow I wasn't able to tap into his 'knowledge'.

Anyway, the session on Winners for 2007 by Carmen Lee, the Head of OCBC Investment Research was more interesting. This is the session where she gazes into the crystal book and stick out her neck with 2007 predictions.

Her key message were:

  • Mid tier property market will catch up in 2007
  • Electronics may become a 'laggard' play as this is one sector that has lagged the entire market in 2006

Her winners for 2007 will come from the following areas:

  • Corporate Earnings visibility where earnings for 2007-2008 are clear, such as those in the oil-linked companies (Sembcorp Marine and Kep Corp) with strong order books.
  • M&A. Singapore has been relatively quiet on this M&A front where even Malaysia is even more active. The M&A scene will likely heat up here.
  • Undervalued stocks with low price, high yield may find favour in 2007 but investors need a lot of patience and holding power
  • China Consumer play will still be in vogue
  • SC shares - Spore listed, non-PRC owner but with PRC exposure such as Raffles Education, HTL, Pacific Andes and Man Wah etc may find favour.

Her 2007 theme is to buy value stocks and her stock picks for 2007 are as follows:

  • Ezra
  • Sembcorp Marine
  • Genting (hot favourite for Sentosa IR)
  • Pine Agritech
  • ST Engineering
  • Singapore Telelcome

Her small-mid cap picks are:

  • Asiapharm
  • Biosensor
  • Bright World (this is her hot favourite)
  • HTL
  • Koda
  • KS Energy
  • Pacific Andes
  • Rotary
  • Tat Hong

Okay i have showed you her stock picks for 2007, you can place your bets now. :)

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