The fight of control may extend to second generation!
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| UIC - Interest of Director |
In short, there are 3 companies in this game: Singland, UIC and UOL.
In simple term, UOL own UIC and UIC own Singland.
Singland is the ultimate target but nobody care to buy Singland directly, except UOL.
Eventhough UOL now buying more Singland, that will not affect the game's strategic, but just the margin of profit for whosoever won the game.
In order to win the game, they do it by buying UIC instead, and they are doing it now and will continue to do it at measured pace allowed.
By letting UOL doing daily share buy back, it shorten the distance to hit the target.
It is all coordinated move. We will see. 
Good news in weekend 4 March 2011
A joint venture between Singapore Land, one of the city state’s biggest office landlords, and UOL Group, has won a $320 million land tender, Singapore Land said in a regulatory filing today. Residential condominiums are proposed to be developed on the land in the city state, it said.
1 March 2011 8:30AM
The game is getting more interesting now!
The game is getting more interesting now!
Scene 1
John Gokongwei, Jr. and Wee Cho Yaw snapping up UIC share from open market.
Scene 2
Scene 3
UOL snapping up UIC share from open market
Scene 4
UOL carry out daily share buy-back from open market
Stay tune!
I have no idea when the breakout will happen now because the market sentiment is affected by the cooling measure.
However, if we just look at the chart, I don't see how cooling effect has affected the price. This is a blessing that UIC is one of the best property stock withstand the effect of cooling measure and China effect.
UOL has a very important support at $4.46 which has been tested 3 times since October 2010.
This company is announcing the unaudited full year 2010 financial results on Tuesday, 22 February 2011. This will provide the near term catalyst for the potential rebound.
In fact, the price on last Friday, 18 Feb 2010 has started to breakout of the down trend providing a hint of strong rebound.
It worth to note that the resistant at $4.46 is coupled with a breakaway gap which prevail since October 2010. This will provide a strong support.
In the sea of sell down of property stock, it may be a good time to collect some value stock and gems which has been brutally sell down without convincing reason.
UIC decided to consolidating at around $2.76 and $2.80 now. The picture is very quiet now because the general market seems to move to no way.
The good news is the price action of UIC still bullish (and getting more bullish!) and there is sign that the breaking out is coming soon.
This morning UIC has hit $2.80 again. If UIC clear $2.84, then be ready to add on the position. The next leg will probably push it beyond $3.00 easily.
Today is 22 January 2011 .
After seeing UIC cling on around $2.80 for the last few days despite the heavy sell down in the overall market, now I believe that the gap at $2.71 and $2.72 is not going to get cover back.
Instead, I believe that the price is consolidating at current level and looking up to break $2.84 resistance next week.
The target price for this new leg is going to be substantial.
Now I believe that the price shall retest the trend line before a meaningful rebound. The rebound will likely to propel the stock price to another recent historical high.
The target price worked out to be $5.27. However, if the price dips lower then last Friday closing price of $4.83, which is also the base of the bull flag, then the resistance to reach that target price will get stronger.
I still invested.
However, for friendly visitor visiting my blog, especially those bookmarked my page, I would like to raise this amber flag for short term speculator for this cluster of companies.
Some disturbing sign of toppish is forming despite the underlying bullishness is still pretty healthy and intact. Furthermore, the performance of external market outside Singapore is getting fatigue. I am no selling because I have profit buffer and belong to longer term of investor group.
Play safe.
UOL has very bullish chart now.
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The daily chart above has a target price of $5.12. Not too much meat left since the breakout is a little 'old'. |
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The weekly chart above has a target price of $5.35. The meat is enough to feed many stomach. |
The absent of the annoucement involving the change of director interest for the last 2~3 weeks is a worrying sign for me to consider.
It worth to note that the price has ran up continously for the last 3 weeks almost non stop. It created a gap up and partially covered on knee jerk action to property cooling measures.
If the price movement is purely supported retailer, then the chance is high that the prices chart is forming a top now.
Furthermore, if both sides stop buying at $2.40, then it will pull the price back to a level closer to it from the current $2.80.
We are competing with W and G in the game of patience.
UIC own 56% or 72% of Singapore Land?
Well, I believe 72% is the right figure but Thomson Reuters data shown via Phillips Securities display as 56%.
Anyone can further confirm it?
As UOL bought additional 133.6 million UIC shares from United Overseas Bank at S$2.40 a share as published on 22 December 2010 , UOL has made $53 million paper profit since UIC closed at $2.80 on 14 January 2011 .
Not a bad deal for less then a month of desktop corporate game.
For UOB shareholders, thank you for your kindness. It is a season of sharing!
UIC has never closed lower then the previous day for 14th consecutive days.
Today, 14 January 2011, UIC closed 1 cent lower at $2.80. Therefore, the chain broken?
My answer is: NO!
Let't take a look at the closing information:
The price closed at $2.80 but the buyer willing to buy at $2.81! The reason why the price closed 1 cent lower is because no willing seller to sell.
Therefore, your view? lol
Yesterday, 12 January 2011, UIC has a significant gap up of 3 cents from $2.71 to $2.74.
We may find similar bullish price movement in UOL and SP Land. It worth to note that SP Land has a much smaller gap of 1 cent from $7.65 to $7.66.
The gap up of UIC is not event driven, but rather help by low liquidity and persistent buying up.
I am suspecting that the buying force since the last chunk of bulk $2.40 transaction is purely originated from retail investors. The lack of announcement from the major shareholder seems confirming this hypothesis.
The gradient of the price climbing up is getting too steep and the buying force has to catch up to support it. I start to believe that the gap covering to $2.71 is imminent.
Today, 10 January 2010 is a bloody day for STI with the index dropped more then 30 pts. The plunge not just confined to Jardine Group of companies, but rather broadbase. Nontheless, some are spared. One of them is UIC.
Being an illiquied stock, the chance for it to survive the first wave of general market sell-off is high. However, as an investor in UIC, I think the price action today is remarkable because it hit the new high when the market under intense selling.
We may need to wait for weeks before we knowing who has bought at this price from the announcement, if they are major shareholder.
The dust finally settled at $2.61, up 2 cents.
Another positive point is the trading range start to widen after breaking through the all important twizzer top at $2.50.
If that is not enough, the closing price in last two days is the highest price of the day.
However, there is not much things to celebrate now because the action is mostly due to the continue accumulation by retailers like you and me.
We are in for the marathon!
Comments are welcome.
