Stock Picks: Lottvis, Oculus, Mediaring

As mentioned in the previous post, I have been monitoring the small caps recently and seen a spike in the volume for most small caps.
Normally this signals a start of the pennies rally as we should be able to see the top 10 active stocks to be dominated by them in the coming week ahead.
Below are the recommendations:

1. Lottvis


As you can see from the chart, accumulation can be seen distinctly as the volume spiked up on last Friday. We shall expect it to breakout if it crosses 0.17, support at 0.14.

2. Oculus


This stock has been the talk for quite a while as it plans to diversify its business by acquiring Aretae which is doing the carbon credit business. Recently on Feb 6, it announced that it was acquiring ophthalmic solutions patents and licensing contracts from Advanced Ocular Systems (AOS) for $29.9 million in cash and shares.

The accumulation portion is the same with Lottvis, except we may hear some news regarding their results of the RTO. This stock can go either way, thus before the news is out, I advise all to go in fast and sell off fast for a quick profit.

3. Mediaring


This stock has similar accumulation pattern to the previous 2 stocks, but the volume of accumulation is in much larger quantities.
It is always one of the targets for pennies breakout and the pattern is clear again.
Go in fast and sell off fast for a quick profit as you would not expect it to go up in value in times to come.

Every time we go into penny stocks rally, it is always clear that we are encountering a downturn soon. This is due to the fact that the blue chips prices are not attractive anymore and investors would like to cash in to load something which is much profitable in intra day situations.
Therefore, do take note of signals whereby the market is coming down again.
I'm on the bearish side for the time being.

2008 Stock Picks by OCBC Investment Research

OCBC Investment Research came up with 12 stock picks as above for 2008.
Personally, I have quite a few friends telling me how good Cacola is, and I have done some research on it.
I would say that in terms of business, it is similar to Man Wah but in terms on potential, I would rate it much better than Man Wah.
Thus, it would be quite worth it to invest in the current price as the fair value indicated is 0.75.

The detailed report of Cacola by OCBC Investment Research is as follows:

Cacola: It recently impressed with a 89.4% YoY surge in 3Q07 net profit on the back of a 26.0% rise in revenue. OCBC Investment Research says Cacola is a beneficiary of China’s booming economy, as studies have estimated that the growth of home furnishings in China will outpace GDPgrowth by 3%-4%.

It enjoys a low cost manufacturing base in Dongguan, and uses readily-available materials for its products, making it less susceptible to fluctuations in raw materials’ prices, says OCBC.

Cacola’s geographical reach has multiplied since 2000, and it plans to intensify its presence in major cities by setting up more mega stores and a new home-deco centre.

Cacola is trading at an attractively low 6.2x FY07 PER and has reported a higher profit margin than its peers, notes OCBC.

Stock Picks: LC Dev, SNF, Ultro

Here are the stock picks as promised:

1. LC Dev



As seen in the chart above, volume is picking up for these two days signaling signs of breaking out. Next resistance is 0.465, once breakout of resistance will signal potential uptrend.

2. SNF Corp



This stock is one of the main focus for trading today as news states its proposed entry into Singapore''s healthcare sector through S$525 million acquisition of privately-held Healthway Medical Services. Target is one of country''s largest private outpatient medical service providers with more than 80 clinics. SNF, which used to distribute electronic products, will fund purchase with 2.62 billion shares at S$0.20/each, resulting in reverse takeover. Resistance is at 0.2, uptrend confirmed if breakout.

3. Ultro



This stock has been on my watchlist for quite some time as increasing volumes normally signals huge potential upside for this stock. Currently, this stock is giving clear signals again. Worth to take a punt.

Stock Pick: GMG [Results]

Congrats to those who have heeded my call yesterday in purchasing GMG despite the downtrend market!

From the intra day charts today, support is at 0.130 and the next resistance is at 0.16

I will go through the small caps data and post more stock picks tonight, so stay tuned guys.

Stock Pick: GMG

I have been monitoring wide spreads of small caps and since the change in the new bid sizes, small caps have been rather attractive.

GMG is a Singapore-based plantation group dedicated to long term investments in Central and West Africa. It is an integrated producer of natural rubber engaged in the planting, growing, tapping and processing of natural rubber. The Group's emphasis is on producing premium products for the European and US markets.

GMG has always been in my watchlist as it is low priced and the potential to rise is there.

Judging from the chart above, it is consolidating and signs of breakout is pending.
Once it goes past resistance of 0.135, counter will confirm the signs of uptrend.