Aug 2, FA/TA for SIA

Research Analysts Rating Downgrade on 2 Aug,

• Citi - $12.00
• BofA - $11.25
• MS - $13.60

Very disappointing - Profit and Loss as compared to QoQ. 

Very Strong Cash Flow Position at S$7.5billions

Comparison of Year to Year over 4 years period

Aug 2, FA for SIA,

• EPS - 0.037 for Q1, (Assuming constant value - 0.16 for FY2011)
• NAV - 11.90
• Yield - 4.7%

For FA-Quantitative Analysis, we can use NAV as simple reference or EV/EBITDA. But for this example, I skip EV/EBITDA - as it will need to compare PE to be meaningful. 

Conclusion for FA - SIA - only attractive when it hits below NAV - 11.90 (aligned with BofA and Citi Recommendation - as FAIR)

Aug 2-5, TA for SIA

• Trend - Down (Bearish)
• Momentum - Oversold (Bearish)
• Support - 12.00
• Resistance - 12.90
• Candlestick - Gap Down (Bearish)
• Volume - 5x (Selling Pressure)

I have shown a weekly TA chart instead of daily, as daily is useless for "Falling Knife". What I want to emphasize on this chart is, 

How EPS Earning affects Share Price? 

Basically, it has no meaning for SIA. In FY 2009, SIA EPS is at 0.18 but share price went up from $8-$16 (approximately 90%). 

Warning: Do not touch "Falling Knife" Stock. 

Only enter when the Share price has stabilized or trend into Side.