STI Chart Analysis

Ichimoku Cloud (daily)
STI Chikou Span is still staying above the cloud despite an attempt to breach the near term support of 3126 (see STI chart analysis on 18 April 2011). The near term support is adjusted lower to 3113 after the break down attempt. Stronger support level is also lowered to 3045 from 3075. Tenken sen (blue line) is still at a distance away from Kijun sen (red line). Once the red line is above the cloud, STI will likely continue its uptrend for some time until the Kijun and Tenken lines crosses again.

Bollinger Bands (weekly)

STI has hit the first resistance level of 3205. A break up will likely see STI attempting to break the resistance level at 3321. The middle band 3138 will provide the first support level. If this support is broken, STI will go lower towards the 2955-2963 support level of the lower band. 

Disclaimer: All info posted is for reference only and not an inducement to buy or sell shares. You are solely responsible for your own actions.

STI Chart Analysis

Ichimoku Cloud (daily)
STI Chikou Span is above the cloud for a number of days. The near term support is at 3126. Stronger support is at 3075.

Bollinger Bands (weekly)

STI is above the middle band (SMA) at 3137 which may not be a strong support yet. The next resistance is at 3237. A new uptrend will be in place when STI can break both 3237 and 3322 levels decisively within weeks.

Disclaimer: All info posted is for reference only and not an inducement to buy or sell shares. You are solely responsible for your own actions.

A-Sonic AGM Notice

Annual General Meeting of the Company will be held at

168 Robinson Road, Capital Tower, Level 9 FTSE Room, Singapore 068912 on Wednesday, 27 April 2011 at 3.00 p.m.

One of the item is to approve a tax exempt (1-tier) first and final dividend of 0.125 Singapore cents per share for the financial year ended 31 December 2010. At price of $0.07 per share, the payout ratio is about 6.41% and dividend yield is 1.92%.

http://info.sgx.com/webcoranncatth.nsf/VwAttachments/Att_5B1784BB11785AAD482578700015BF6F/$file/sgxnet110411.pdf?openelement

More info on the dividend payment:

Members whose securities accounts with The Central Depository (Pte) Limited are credited with shares at 5.00 p.m. on 5 May 2011 will be entitled to the first and final dividend.

The dividend, if approved at the Company’s Annual General Meeting to be held on 27 April 2011, will be paid on 27 May 2011.

A-Sonic: FY2010 vs FY2009 Result Comparison

Below is a table comparing the recent annual results. Top line and bottom line have both improved spectacularly. The market, however, is still adopting a cautious approach. The share price is still considered low given that the PE is 3.59 only.

Stock chart has shown a bottoming price pattern and a slow recovery from the lowest point of S$0.045 on 10 Dec 2010. Investors will hope to see the formation of a Cup pattern in the next few weeks.

Disclaimer: All info posted is for reference only and not an inducement to buy or sell shares. You are solely responsible for your own actions.

A-Sonic's Education Business

In the announcement on 27 Sep 2010, A-Sonic Aviation Training Private Limited (“A-Sonic Aviation Training”) has obtained CAAS SAR-147 MTO approval from the Civil Aviation Authority of Singapore.

A-Sonic Aviation Training was incorporated on 7 January 2010 with the aim to offer solutions to the ever-increasing global demand for aviation-related training with particular focus on maintenance, operations and safety.

A-Sonic Aviation Training intends to expand its services to include the following courses:
(i) CAAS SAR 66 Basic courses leading to a Licensed Aircraft Engineering certification;
(ii) Basic aircraft engineering;
(iii) Specialty including aircraft structure and composite repairs; and
(iv) Customized aircraft engineering.

Here are some news that may give some insights on the prospect of A-Sonic's education business and logistics business.

1. The Civil Aviation Authority of Singapore (CAAS) will launch a S$9 million Aviation Manpower Programme (AMP) for the period from 1 December 2010 to 31 March 2015 to bolster human resource development efforts for Singapore's aviation industry. (18 Nov 2010) 
2. According to IATA, international airfreight traffic grew 24% and revenue generated by air cargo rose 30% through the first 10 months of 2010 compared to the same period in the previous year. IATA expects air cargo rebound will continue in 2011 but at slower pace. Chief Economist Brian Pearce said, "If we step outside of Europe, particularly in Asia and Latin America, there is actually really strong growth." (14 Dec 2010)
3. Global air freight rose by 9.1% in January 2011 compared to the same month of the previous year. (1 Mar 2011)

Disclaimer: All info posted is for reference only and not an inducement to buy or sell shares. You are solely responsible for your own actions.

Will A-Sonic be a Turnaround Story?
 
On 27 Feb 2010, A-Sonic reported FY2010 net profit of US$11.22 million, turning around a net loss of US$1.72 million for FY2009. Although US$8 million of this profit came from the sale of one of its distributorships in North Asia, the $3+ million profit resulting from its core businesses in logistics and aerospace component distributorships is still a remarkable feat.

The company operates its businesses globally, covering 34 cities and 14 countries and spanning 4 continents. Financially wise, it is now sitting on cash of US$31 million (net cash US$22 million) and had a gearing of just 20 per cent.

    'We stayed true to our belief,' CEO Janet Tan said in a statement. 'Even during the two toughest economic contractions in 2008 and 2009, and the most uncertain of times, we remained resolute that we should invest in our business for future sustainable growth. By sticking to our strategy, we emerged stronger in 2010.'

From the above statement, the CEO is confident that the worst may be finally over for the company with their strategy of investing in sustainable growth business. She had purchased 5,904,000 shares at S$0.06389 each at open market in 30 Dec 2010 (total cost is about S$380k). Investors will have to wait and see whether she will continue to buy back more shares to instill confidence in the prospect of the company.

A-Sonic is placed on SGX watchlist due to three years of losses in September 2010. At the price of $0.065 - $0.07 and total shares of 719,903,629, the company has met the requirement for their market capitalisation to be above $40 million. Together with the profitability requirement, it is just waiting for 120 days before it will be removed from the SGX watchlist. Will there be more upside to the share when this happens?



Disclaimer: All info posted is for reference only and not an inducement to buy or sell shares. You are solely responsible for your own actions.

A-Sonic's Announcement on New Subsidiary in Cambodia

A-Sonic Aerospace Limited (the “Company”), through one of its subsidiaries, has
incorporated a wholly-owned subsidiary, jetBuddies Co., Ltd (“jetBuddies”) in
Cambodia. Subject to all relevant approvals, jetBuddies aims to provide scheduled
and/or unscheduled flights

This is a rather interesting development in A-Sonic. The new subsidiary “jetBuddies” has a name that sounds like a budget airline. Hope this venture will turn out well for the company.


Disclaimer: All info posted is for reference only and not an inducement to buy or sell shares. You are solely responsible for your own actions.