Is Singapore O&G (SOG) going to be another Healthcare IPO darling?

The new kid on the block to join the Booming healthcare fraternity is Singapore-based healthcare firm, Singapore O&G Ltd ("SOG" in short). You can find the IPO Prospectus here.

Intro
According to its propectus & factsheet, SOG is a niche player in the healthcare industry as it focuses on the women's healthcare, with middle-level professionals as its main target audience. Thus, their primary focus is skewed towards the following: pregnancy care and delivery, the female reproductive system, and gynaecological and breast cancer.

SOG's total of 8 clinics are situated in five different locations as highlight below:

• 2 clinics in Parkway East Medical Centre, 
• 3 clinics in Gleneagles Medical Centre, 
• 1 clinic in Thomson Medical Centre, 
• 1 clinic in Mount Elizabeth Novena Specialist Centre 
• 1 clinic at Cassia Crescent.

In case some people are not sure, Gynaes often work by themselves but are stationed across different clinics for the usage of the equipment and stuff. I searched for one doctor (Dr Beh Suan Tiong) based in Thomson Medical and found out he got his own website -> http://drbeh.com.sg/.

The way i see it, this company is formed by several gynaes with the aim of doing an IPO and expanding beyond their individual medical practice (something like what Q&M Dental has done years back).

Details of IPO

From the picture seen on the left, its a rather tight timeline to subscribe for the public tranche of 2.2 million shares while 41.4mil will be placement shares.

The shares are offered at 25 cents a piece and will be listed on the Catalist board.

If fully subscribed, the company will raise S$10.9 million through the public offering. The company will use the IPO proceeds for working capital, to enhance investments in healthcare professionals and synergistic businesses, and also to expand its business operations.

Financial Performance & Investment Merits

A picture is worth a thousand words so i shall let the 2 pictures do the talking below. The main gist is that the company's financials are in good shape, with a steady increase in profits. What amaze me is the 35+% net profit margins.. it just shows how profitable delivering a baby is (milking our monies everytime we go back for a 5min checkup!~).

My thoughts

People may think that by distributing 90% of the dividends, the company is becoming more like a cash cow and unlikely to grow in strength from here.

However, by doing a comparison to the time Q&M dental was listed (in yr 2009);

they actually started off the exact same way. Fast forward 6 years and their share price just skyrocketed >100%! over the past year on the back of a string of acquisitions being announced.

Personally, i feel that this IPO will garner lots of interest due to 3 main reasons:

1. Just look at all the healthcare stocks in Singapore (Talkmed, Q&M Dental, Raffles Medical etc.) and how their share prices have shot up. SOG would do well to ride on the healthcare boom right now.
2. Healthcare industry is one highly predictable industry, as we can easily visualise on how the private sector is serving the affluent market. In most cases, people want to give the best to their family members and would not scrimp on this.
3. High net profit margins and huge free cash flow are 2 important metrics for a company to expand steadily without any burden of debt. 
4. Lastly, a moderate P/E ratio of 12.82 (based on FY14 EPS) and potential 7.3% dividend yield are deeply enticing.

With that, i wish my readers all the best and Huat Ah!

How to buy thailand undervalued stocks

Unrest in Thailand

The political turmoil in Thailand shows no pause or any sort. In fact, this 12^th military coup in the history of the country is making things worse for the country’s economy.

Thailand has been facing unrest for over the past six months and the Thai Baht has come down 2% compared to US dollar after the coup news.

Nevertheless, as investors dig through Thailand's history of coups, they will realise that the stock markets usually rebound sharply once things are stabilized.

Finding Undervalued Thai Stocks

So out of curiosity, I decided to run a stock filter based on the following:

1. Exchange is SET [Stock exchange of Thailand]
2. Return On Equity (FY) is >10 (%)
3. Dividend Yield is 5 - 10 (%)
4. P/E excluding extraordinary items (Q) is <10

Screenshot of Stocks which match the 4 filters

The rationale behind these screens? I want the stocks to be cheap and performing well in terms of ROE. One filter Warren Buffett tends to look for is "Has the company performed consistently well?" ROE is also referred to as "stockholder's return on investment." It reveals the rate at which shareholders are earning income on their shares.

Lastly, no one will know when the coup will end. Barring any unforeseen circumstances, I wish to look for a good dividend yield to help me tide over the uncertainty ahead. Of course, consistent dividend payouts and free cash flow will be important in judging if the yield can be sustained.


School of Thought

While it may not be comprehensive enough to capture other quality stocks as well, I believe a stock screening is definitely better than nothing. Moreover, there are still numerous stocks which we can zoom into their qualitative aspects.

In my next few posts, I will be touching on those Thailand stocks (if any) that possess one or more qualities such as great growth potential, high profit margins, margin of safety and more!

Like my post to receive more regular updates like this at www.facebook.com/kissinvesting. Thanks & HUAT AH!

Why SMRT share price shoot up/increase 44.6%

SMRT had a huge run-up in its stock price - whopping 44.6% gain in less than 1 month from 23 April where it laid stagnant at S$1.02 for quite some time. This is despite the fact that there are no significant developments in the company!

Nevertheless, many market observers would be lamenting now that they missed such a market darling. Will the up trend continues or will it fade away? Let's take a look at why its stock price soar so high in the first place...

Proposal to sell hard assets to Singapore's govt

After numerous train breakdowns, one of the key concerns is the improving and refurbishing of its railway lines which cost tons lots of money, driving its profits down due to high costs. The potential sale would turn SMRT into an asset-light operator (For more information, you can read the news article here) where: 

• it only charges a cost-plus pricing for operating the lines (a d*mn good deal i would say)
• The high operating costs are now borne by the government, in turn, by the tax-payers. 
• Don't forget about its lucrative rental and advertising side-lines where the opening of Sports Hub will lead to another set of good results.

Over the long run, if the framework is approved, it does help to validate the surge in share price. However, as of 20 May 2014, SMRT is selling at 36.88 times P/E ratio, 2.68 times of the STI multiple. The earnings will have to increase by 100% or 2 times in order for the P/E ratio to be in a more acceptable range of 18+.

Lastly, such a major decision may take some time to materalize and even more time will be required to turn it into profits. People should be careful of buying in a frenzy and getting stuck at the top for a long time in order for fundamentals to catch up to the euphoria.

TradeHero Review - A Stock Market App

If there is any interesting local Finance App, it has to be TradeHero. So what is TradeHero?

TradeHero is a stock market simulation mobile app that draws real-time data from 14 stock exchanges, 45,000 global securities and 1,300 currency pairs. 

Users are credited with a $100,000 starting portfolio and can make trades to create their own virtual portfolio. 

The unique thing about this App is that it combines both social networking and trading & Good Traders can earn money from this!

If you are a good stock picker and generate high Return On Investment (ROI), players can follow you by paying US$1.99 per month. You will get to pocket half of this fee by giving people a glimpse of your trades. 

In contrast, if you are curious about the top traders' portfolio, you can pay US$1.99 to see their current trades and subsequently, you may try to mirror them in your real money account.

5 shortcuts at the bottom of the App:

1) Trade: The list shows all the popular stocks that you maybe interested in. If not, you can search for the stocks using the search bar.

2) Community: 

The app’s Leaderboards identify the top traders (known as ‘Heroes’) by their returns, and they are ranked by Exchange, Sector, Monthly or Quarterly returns, as well as overall returns.

The concept of how the company earn their keep is through the subscription of followers to the whole list of "heroes". Followers can subscribe, for a small monthly fee, to follow and receive trade feeds from their chosen Heroes via push notifications on their mobile device. These push notifications detail each Buy and Sell action of the Hero, as well as the experts' tips and personal insight into successful investment strategies.

 3) Bull icon:

Right in the middle lies the Logo of the App, where all the activity is captured like a summary page. Details like which Hero you are following, push notifications of Heroes' trades etc...

4) Positions:

Simply put, it shows your open positions & your previously closed positions. ROI is shown with every trade. You can click the ">" for more information like

• P&L
• Total Invested:
• Opened (trade made)
• Closed (trade ended)
• Period (your holding period)

5) Heroes:

Lastly, your credit balance & the "Heroes" you are following are displayed.

Pros & Cons of the App

I have seen a very good review from bigfatpurse & realize that one major flaw with Tradehero (as with any other stimulation game) is that there is absence of demand and supply.

In real life, one has to sell in order for another to buy due to a fixed number of shares. It's a to-n-fro thingy. Whereas, in TradeHero, you can buy or sell any quantity you like. Moreover, transactions can also be completed any time, even after market hours. In other words, transaction is guaranteed without the need to consider demand and supply.

And this leads to easy ROI by trading off the penny stocks which fluctuate by huge margins daily but not easily reflected in the real life market. Thus, some top scores in the Leaderboards may be subject to such scrutiny & followers may be in for a surprise.

I feel that they can still make some improvements to the app like 

1. Raising the minimum stock price (to more than $0.20) so that penny stocks are out of the door. 
2. Categorizing top traders not just by ROI; but inculcate investment strategies such as value investing, income/dividend investing which will attract even a larger crowd.
3. Many a time, i wish to seek out opportunities from different markets but i am unfamiliar with them (e.g. Bursa Malaysia, Thailand, hong kong etc.). I hope that this App can bridge the information gap and allow users to see how other country's traders are doing in their portfolios as well. I think this can be called geographical segmentation? lol.

Nevertheless, it is still a relatively new concept in Singapore and i absolutely respect the team behind this app. All the best to TradeHero & Huat ah!

Rowsley New Update!

As you can see from the SGX portal, 2 new announcements are reported at 9pm+ on Sunday Evening for ROWSLEY!

You can find the links here:

• http://info.sgx.com/webcoranncatth.nsf/VwAttachments/Att_39B1F43C7EB175F548257B070048154A/$file/RowsleyLtd.Announcement_03.02.2013.pdf?openelement
  
• http://info.sgx.com/webcoranncatth.nsf/VwAttachments/Att_6E6B209ACBF2850948257B07004889D2/$file/RowsleyMediaRelease_03.02.2013.pdf?openelement

They are finally proceeding with the Reverse Takeover and finalizing the S$545 Million deal... The highlights are as seen below:

ROWSLEY SEALS S$545 MILLION DEAL WITH RSP, JOHOR’S ROYAL FAMILY AND PETER LIM

• Rowsley to acquire RSP in all-share deal for S$187 million

• Rowsley to acquire 9.23-hectare Iskandar Land in all-share deal from Vantage Bay for S$358 million

• Upon completion, Rowsley will reward existing shareholders with bonus issue of two free warrants for every one existing share

• Rowsley will be transformed from an investment holding company to a major real estate player

The thing that caught my eye is that Rowsley are issuing 2 free bonus warrants for every one share we own with an exercise price of $0.18...

At a current price of $0.29, it will mean:

[$0.29 + $0.18*2]/3 = $0.2167 average price per share based on current stock price if all warrants are immediately exercised.

I myself is interested in hopping on to the possible property investment idea in  Iskandar Malaysia but heard of some risks involved like easy to see companies go bankrupt, worrying about security issues and how to collect rental etc..

Therefore, lets do a simple calculation here...

Let's say i invest $10,000 at the price of $0.29, i will get around 34,000 shares & double the warrants (68,000).

Theoretically, at the end of one year, if the stock price 

(1) still remain at $0.30 & i exercise my warrants by then; the gain will be:

(34,000+68000) * ($0.29 - $0.2167) = $7,476.60

The % return is a spectular 75%!

(2) goes down to $0.15, I will not exercise the warrants and my loss will be:

[34000*($0.29 - $0.15)] = $4,760 ; a % loss of 47.6%!

(3) goes up to $0.45, I will exercise the warrants and my gain will be:

(34,000+68000) * ($0.45 - $0.2167) = $23,796.60

The % return is a astonishing 238%!

What i take confidence from Rowsley is also that the land acquired has excellent prospects; it is located within Flagship A region -> where many key players are: Citigroup, HSBC and Kuwait Finance House, major manufacturers - YKK, Celestica, Lion Group, Sumitomo.

Source from http://www.iskandarmalaysia.com.my/flagship-a-johor-bahru-city

Another point to take note is the compensation being paid out only when certain criteria are met as seen below:

This means the current management team being taken over (RSP group) will have a certain goal to look forward to when they generate significant growth in earnings...

My own Take

Since i am not ready to invest directly into property investment (although they give better returns due to leverage) even though Iskandar is a good opportunity, I may consider Rowsley since it is soon becoming a major real estate player. 

Good luck to you all then! Cheers!

Olam Stock Take on Blog

Recently, i done a Facebook Q&A to see what are the companies my readers are interested in. And Olam comes out as quite a hot favourite.

I shall touch on Olam now (sorry for the delay! Busy with some stuff recently...)

Fundamental:

Everyone should have known about the big impact of the Block's damaging report from Muddy Waters which led to a stock fall of nearly 20%, adding to the woes of a bad commodity cycle.

As for the recovery, Olam is issuing a big sum, US$750m, of 5 year Bonds which comes with "free" warrants.. trying to boost its war-chest. The cost of this debt is a whooping 13.7% according to the article by Michael Dee, saying that it sorts of instills the notion that what Brook was correct in saying that Olam is cash-poor and debt-intensive. 

If you wish to read the entire report, Like my Facebook Page and message me and i can send it to you :)

In the meanwhile, Olam is still continuing to acquire businesses using the expensive debt. It's like borrowing money at 13% annually and using the money to buy businesses. You have to get more than 13% return from the acquisitions to be yield-accretive - not really my cup of tea.

Technical

After hitting rock-bottom, Olam seems to be on a channel uptrend [see the 2 lines moving up]. On the longer term over a year period, the market seems to be in a descending triangle formation.

Thus, short-term traders can choose to take profit at $1.90 and set a stop-loss at the $1.50 mark established in June.

Conclusion:

I agree that confidence is boosted by the support of Temasek Holdings, which upped its stakes to 18% as one of the major shareholders. However, this bad news is not one which is temporary, it divulges real significant balance sheet problems for Olam - causing equity dilution in the future due to the issue of free warrants.

Furthermore, I have read reports on how 27% of net income comes from inflated biological gains. Therefore, personally, I would regard Olam as a short-term play. For longer-term wise, its better to go for Noble group or Wilmar which are more stable.

The Best Way to capitalize on U.S. Housing Boom

Sorry for being away for so long... Been busy with my work and other stuff... Found a good article that allows you to capitalize on the US housing boom by targeting the Chemical Industry instead. Find out more below... The Best Way to Play the Housing Recovery By Frank Curzio, editor, Small Stock Specialist Friday, December 21, 2012

The housing recovery has created a powerful tailwind for homebuilders… It's difficult to find a better-performing sector. Over the past year, the average homebuilder stock is up over 80%. That's about five times higher than the S&P 500 index. My friend and colleague Steve Sjuggerud nailed the big uptrend in homebuilders. He told DailyWealth readers to buy the sector in November 2011. If you followed his advice, you're probably sitting on huge returns today. After such a strong rally, homebuilder stocks are expensive, and I wouldn't recommend them at these prices. But there's a better, cheaper way to make money as the housing recovery continues… Homebuilder stocks have outperformed the S&P 500 more than five-to-one because we're finally seeing a recovery in most major U.S. housing markets. Prices have risen for nine straight months, while the inventory of homes has fallen for the last five months. There is only a five-month supply of homes on the market. That's a sharp decrease from a year ago, when the supply of homes stood at 11 months. I expect the housing recovery to continue. The Federal Reserve has said it will do everything in its power to keep interest rates near historic lows. That's good news for homebuyers looking to take out a loan. Plus, most of the major banks are sitting at 52-week highs. They're in much better shape to lend money than they were during the credit crisis of 2008. However, based on the recent surge in homebuilders, I don't suggest buying these stocks today. The Dow Jones U.S. Construction Fund (ITB) is trading at an expensive 27 times earnings. A better way to play the recovery in housing is to buy chemical companies. Chemical companies make products found in building materials, paint, carpets, and tiles. Most companies in the sector are trading near 52-week highs. However, unlike the homebuilding stocks, these companies are still cheap. Dow Chemical, E.I. DuPont, and Ashland trade at 12 times earnings. That's a 15% discount to the average S&P 500 company. Small-cap names like Huntsman and Stepan Company are trading below 10 times earnings – and also pay a dividend. Chemical companies are also seeing a boom in earnings as raw material costs come down. The prices of natural gas liquids (NGLs) are trading near 10-year lows due to the boom in natural gas drilling. NGLs include propane, butane, and ethane. These key materials are used by chemical companies to make everyday products, like the fuel many folks use for their backyard barbecues (propane). If you are looking for an alternative way to play the recovery in housing, forget the homebuilders for now. These stocks could fall 20% each and still be overvalued. I suggest buying chemical companies. Most of them are seeing huge earnings growth. They're also still dirt-cheap. I wouldn't be surprised to see 25%-plus gains in these names over the next six to 12 months.

Why Stocks Jump so High today!?

If you take a look at 14/08/2012 Top 20 Volume, you can see MAJOR Stock movement for Noble group, Sakari, China Minzhong... (and many more like STXOSV, Yang Zi Jiang etc..)

These are the stocks i have talked about or looked at past few months... So why have they jumped so high or rose so much in price today?

1. Because i have mentioned about the stocks (Just joking!)....
2. Global markets are recovering (going from "Wah whole Europe is going to collapse -> Global Recession! to "Oh... now U.S. recovering, Europe not so bad liao")
3. This is a bit tricky here... As always, ask around people or look at stock forums.. when many people are holding cash (lots of cash in their portfolio) and once stock markets are on the uptrend, what will they do? Pump them in the stock markets!!
4. The stocks are Undervalued, having being beaten down badly to the post-2009 financial crisis levels because of the uncertainty in markets...(e.g. Noble below)
5. Bright Prospects & Positive triggers from news annoucements (Look at Noble -  http://info.sgx.com/webcoranncatth.nsf/VwAttachments/Att_6C09FA1D98A594DD48257A59002F5118/$file/1H2012-MediaRelease.pdf?openelement)

My 2 cents

I have talked about why i believe STI will rise just a few months back... and now... STI points to a whole year high of 3,087.84!

I am now an advocate of Active Portfolio Management *Opportunity Investing* (where i spot Undervalued Gems ready to burst and hold them on for a few months or even a year+)

I strongly believe i can achieve 20% or more Returns Annually using this method and hope that You can join my newsletter stock picks when it is launched in due time! [Please support by "Liking" the Google+ icon so i know how many out there are interested :D]

Meanwhile, i will do a re-shuffle of my aims for the blog... Separating them into Passive Investing & Active Investing soon. Stay tuned for the updates!

Hope you like my post and can do me a favour by "Like"-ing my facebook page at www.facebook.com/kissinvesting. Thanks & HUAT AH!

SELL Creative Singapore at $3.39 on Aug 9

Despite a happy moment for Singapore on its 47th Birthday, one firm is in trouble after chalking up 3 years of consecutive losses - Creative Singapore.

Creative has reported its earnings (or losses) report after market closed on Wednesday and markets are still closed due to National Day.

An important announcement is made after its Full Year reports as seen below:

*************"

Name of Issuer: CREATIVE TECHNOLOGY LTD hereby gives notice that:

(i) it has recorded pre-tax losses for the three (3) most recently completed consecutive financial years (based on the latest announced full year consolidated accounts, excluding exceptional or non-recurrent income and extraordinary items); and

(ii) its market capitalisation as at 08-08-2012, the last market day on which trading was not suspended or halted, isS$237.1 million.
(Trading is deemed to be suspended or halted if trading is ceased for a full market day.)

The Company wishes to draw investors’ attention to Rule 1311 of the Listing Manual which states that the Exchange will place an issuer on a watch-list if it records:

(i) pre-tax losses for the three (3) most recently completed consecutive financial years (based on the latest announced full year consolidated accounts, excluding exceptional or non-recurrent income and extraordinary items); and

(ii) an average daily market capitalisation of less than $40 million over the last 120 market days on which trading was not suspended or halted. For the purpose of this rule, trading is deemed to be suspended or halted if trading is ceased for the full market day."

**************************

News Articles can be seen here:

http://www.channelnewsasia.com/stories/singaporebusinessnews/view/1218955/1/.html

http://business.asiaone.com/Business/News/Story/A1Story20120809-364435.html

Luckily Creative is not a small-cap company, but however, more bad news await for Creative...

1) Currently embroiled in a lawsuit with a vendor over a wireless broadband network project

2) Creative does not expect an improvement to be registered at the end of the current quarter & is expecting to report an operating loss for the year.

3) Company said the overall market for its products remains challenging

The technical conditions also back up the fundamental analysis...

If you look at the chart, Creative is at the tipping point of a descending triangle. If such bad news and net losses keep pillng up, i believe there is only one way for it to go... Down.

Hope you like my post and can do me a favour by "Like"-ing my facebook page at www.facebook.com/kissinvesting. Thanks & HUAT AH!

Why Analyst Reports are Useless *Sakari and China Minzhong*

After suffering from a long decline... my stocks finally rebounded! So Happy that Patience works for Value Investing! *Sob*

Sakari Chart

China Minzhong

When you do Value Investing, the most important part is not to believe in hearsay or be affected by "Bombardment" from Analyst Reports.

Analyst Reports are there for the short term - Urging you to buy/sell quickly for them to earn commission, but not earn money for you! Lol..

Just to reiterate like what many Analyst Reports churn out Sakari Target Price hitting $1 or something and China Minzhong to hit $2.20 if you go browse through last year reports. To me, Analyst Reports are there created for people who don't believe in their own-selves.

According to a past research or experiment by the famous Straits Times Investing Section journalist lady (sorry i forgot her name), she generates Percentage Gain/Loss using various methods to Buy Stocks:

1. PE Ratios
2. Analyst Ratings
3. Dividend Yield
4. Any 2 more which i can't remember at the moment

I remembered that the % win was the LEAST for following the Recommendations by Broker Analyst Reports.

However, to say a word of fairness, Broker Analyst Reports are a source of timely and useful information right at your fingertips. It is vital that you absorb just the information but ultimately, you stick to your own judgement and pick the winning stocks according to your own methodology!

Hope you like my post and can do me a favour by "Like"-ing my facebook page at www.facebook.com/kissinvesting. Thanks & HUAT AH!

SakariResources - BUY @ $1.455, 03/07/2012

~StraitsAsia is now known as SakariResources~

Woooo... Sakari Resources jumped today for a 5.8% gain in one day! I have bought the shares at $1.355 and are now gaining an unrealized profit of $450. Evidence as shown below with CIMB stock brokerage account:

But I am not writing this blog post to just show off my trades, I just want my readers to know that I am talking about real stuff and I do walk the talk...

Anyway, here is a Sakari Stock Analysis Chart from Chartnexus:

Technical Analysis:


The breakout from Ascending Triangle + Bollinger Band coupled with High Volume = Potential Upside!


Taking into consideration the global market condition: 

• Market Analysis: Euro starting to resolve their problems / People used to the negative news until there is not much impact o.O
  
• Fundamental Analysis (see 2 charts below): Strong Balance Sheet & Financial Position, Coal prices rising and an attractive dividend yield of 6% at current prices!
  After suffering from a dip in profits in year 2010, year 2011 seems back on track. Looking back at the 5 year trend, Sakari has been generating an ROE of 20+% and Net Profit Margin of >10%!
  

Hope this short summary of Sakari Independent Analysis helps you! This is really a Value Stock Pick I would say!

Hope you like my post and can do me a favour by "Like"-ing my facebook page at www.facebook.com/kissinvesting. Thanks & HUAT AH!

STI + Stocks Chart Analysis 06/24/2012

Though Fundamental Analysis is important for long-term investment, i personally prefer to combine it with Technical Analysis for better precise entry-exit positions.


I have time to go through the charts of STI and other Singapore stocks like Sakari, Noble, Breadtalk etc... and they are all trending up after hitting a bottom (see charts below)

Yeah, you may be wondering if all the Euro crisis or China under-performance will drag down the markets again.. but as i said in my previous blog post; the worst is already priced in, and it can only get better with all the leaders doing something about it (specifics which i don't really care).

Thus, i believe we can capture some gains now just like January rally... :)

Hope you like my post and can do me a favour by "Like"-ing my facebook page at www.facebook.com/kissinvesting. Thanks & HUAT AH!

Don Buy GPH now!!!

Don't try to catch the IPO of GPH!


Here's why:

With the BULK speculators selling at $0.30, its a wise choice to sell it at 0.295 (if you are lucky to get some from the IPO).

I woke up in the morning to check on GPH, but i didn't get any.. Refunded all back to me.. Nevertheless, i have turned my attention to Informatics... The next Penny Stock that looks like JEL Corp to me :D

KunLun Energy Co. Ltd

Saw this company (Kunlun Energy Co. Ltd) on the news a few days ago and got curious about it...

I have done some research on the firm and found out that it is actually quite a Fundamentally Sound company, being the Biggest Gas Company in China!

Let's direct you to the 3 main articles i have seen and what we got there:


1) http://www.reuters.com/article/2012/03/29/idUSL3E8ES66Z20120329
Hong Kong-listed Kunlun Energy, headed by a vice president of PetroChina, has become a leading player in the sector. It builds gas liquefaction plants, operates LNG receiving terminals, trucks the fuel and builds LNG filling stations.

The booming trucked LNG business is now targetting the country's tens of thousands of trucks, city buses, river fleets and fishing boats as the next users, aiming for an ambitious 10 percent of China's transportation diesel market by 2015.



2) http://www.businessweek.com/news/2012-04-02/kunlun-energy-seeks-about-1-dot-4-billion-in-share-sale
Kunlun Energy Co. (135), a Chinese gas supplier controlled by PetroChina Co. (857), is seeking about $1.4 billion in a stock offering to accelerate its liquefied-natural gas expansion.

Last week, Kunlun posted full-year sales of HK$25.4 billion and net income of HK$5.61 billion. Profit exceeded the average estimate of HK$4.85 billion from a Bloomberg News survey of eight analysts.



3) http://www.ft.com/cms/s/0/39d82ca6-7d47-11e1-a676-00144feab49a.html#axzz1rG0pSlma
Richard Ong’s RRJ Capital and Temasek, Singapore’s state investment agency, are investing about $600m to anchor Kunlun Energy’s $1.35bn capital raising, two people familiar with the deal said. In addition, key investors in the deal included CIC, China’s sovereign wealth fund, which put in $50m and Petronas, the national oil company of Malaysia, which took a smaller stake.



Now as for the stock chart...

The stock price has already risen almost 40% from Dec last year when it was at around 10 HKD. You can see that the rally looks unstoppable from here.
A calculation of its PEG (Read more about it here - http://kissinvesting.blogspot.com/2012/03/why-pe-ratio-might-be-useless-and-what.html) shows around 0.75. 

Key Take-away:

In my opinion, the fundamentals and growth prospects for this company looks D*mn Good. Other countries' sovereign funds are supporting it, and as China turns to eco-friendly alternative for fuel, LNG is the best option as of now. (nope, not water or sun or wind energy.. all these are just not easily transported... to be honest). 

However, i think that the best time to enter will be for the retracement to come.. and a fibonacci retracement indicator will be really useful when the time comes.