I believe the recent uptrends in the small cap stocks in the construction sector is but a mirage. Going through their recent projects and their financial results, the outlooks are positive for some, but not impressive. I believe that fundamentals do play a big part in the market, but if the technical analysis do not show positive signs as well, I try to avoid. In the Singapore stock market, I stick with my views that all are but speculations, unless their financial results proved otherwise. I foresee the trend in construction sector breaking soon, because they are due for correction. Personally I was quite tempted to buy in a few because of their high volumes and the low prices, but keep in mind that even though you may earn more, you may also lose more.
Companies in view: CSC (S$0.300); Lian Beng (S$0.275); BBR (S$0.150); Sapphire (S$0.050)
Tuesday, January 9, 2007
Stock Focus - Construction Sector
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