Tuesday, December 3, 2013

2014 Strategy : Green Shoots Beneath Grey Skies (UOBKH)

Green Shoots Beneath Grey Skies
 Constructive 2014 but wait till the coast is clear. While we opine that 2014 will be constructive for the FSSTI, we see near term headwinds in 1H14 as markets grapple with the initial
impact from the US’ tapering. Nevertheless, leading indicators point to a gradual global recovery in 2014. We have a 2014 year end FSSTI target of 3,400.

 Earnings recovery in 2014 to drive markets. Investors will be focusing on Singapore’s earnings recovery in 2014 after a lacklustre 2013. In our view, sectors driving 2014 growth include banks, plantation and telecommunications. Markets will need to be convinced that 2014 earnings will be intact after a tepid 2013.

 Eyeing selected mid caps for alpha but tread carefully. Mid caps with strong cash flows, pricing power and stock-specific catalysts remain compelling. We favour Sino Grandness,
Silverlake, Osim, Rotary, Overseas Education and Halcyon.

 Themes for outperformance in 1H14. Our themes include: a) management changes/new strategies, b) winners and losers of tapering, c) asset monetisation/M&A, and d) stocks with pricing power to stave off rising costs.

 Actionable stocks. Large-cap BUYs include DBS, Keppel Corp, Suntec REIT, CapitaCommercial Trust, First Resources, Bumitama and M1. Mid-cap picks with alpha potential include Sino Grandness, Rotary, Osim, Overseas Education, Silverlake and Halcyon. Key SELLs include IHH, SIA Engineering and Tiger Airways.

Source/Extract/Excerpts/来源/转贴/摘录: UOBKH-Research,
Publish date: 28/11/13

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Warren E. Buffett(沃伦•巴菲特)
Be fearful when others are greedy, and be greedy when others are fearful
别人贪婪时我恐惧, 别人恐惧时我贪婪
投资只需学好两门课: 一,是如何给企业估值,二,是如何看待股市波动
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乔治·索罗斯(George Soros)



高估期间, 卖对, 不卖也对, 买是错的。
低估期间, 买对, 不买也是对, 卖是错的。

Tan Teng Boo

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