1) At the beginning of July, we predicted that US market is going to be healthy and it will most likely break new highs. Indeed it has been so.
2) This month they are very resilient.
3) Recent earnings of some major companies are good. Stocks like Google, Apple and Citigroup release great earnings above analysts' expectations. I believe the stock market still has strength to increase.
1) We did predict that Singapore STI this quarter will be in the region of 3300 and 3450. Indeed, this week we see STI standing above 3300 resistance. These few days STI has been on the run.
2) We are still very optimistic about STI this quarter performance.
3) Please do not miss this run-up. Encourage all to find a good earnings stock to invest.
We suggest avoiding this stock. 3 reasons why?
1) The recent earnings Tiger released is not that good. Its 2nd quarter loss of 61 million is more than what analysts expects
2) Analysts' estimates losses for the FY2015 -2016 to increaes from previous expectations. This will definitely hit the confidence of the investors.
3) Although the CEO says that Tiger will restructure and revamp to get the company back on track, we have not seen a good concrete plan how he is going to do so and how Tiger can still grow its business. In fact, its business in Australia is still bleeding.
If the CEO still dont have a good plan, my suggestion is to avoid as the price will still continues to be under pressure.