Pick of the Week Challenge: week 1 of 2011

Freeme
China Taisan
Buy in: $0.19
Target price: $0.21

Reason: Almost all textile counters had rallied. Taisan just start to move up slowly. In terms of TA and FA, both look good. Time for a New Year Rally for Taisan. Even good for keep for long term.

Fx hunter
China Energy
Last traded price: $0.17
Target price: $0.20

China Energy hit its recent support line at $0.155. Since then, the stock is escalating upward. With the ADX indicates a stronger uptrend, MACD had been uptrended since 13 dec 2010, RSI holding as 60% and a steep upward trend in Stochastic.. This stock will increase hugely through volumn transaction.

Sheng L
SembCorp Marine
Buy in: $5.38 Target price: $5.41

Reasons: has secured a contract worth US$400m to build two premium jackups with options for four more from a subsidiary of Noble Corporation, a US oil driller. The options expire on 1 Jan 2012 and are expected to be exercised within 2011.

This new order win will raise total order wins to S$2.7bn (excluding repair contracts worth S$500m), and outstanding options for 11 jack ups to be exercised in 2011 worth US$2.2bn. This will put the group in a prime positon for more contract wins going forward

Alson
FUXING CHINA GROUP
Buy in: $0.19
Target Price: $0.20 (Buy)

Reason: Fuxing has fixed the price for the acquisition of three companies in the dyeing & electroplating services and with China restricting issuance of licenses in these areas, the impact of the acquisitions will be positive for the firm’s long-term strategy.  The acquisition, which is estimated to be at around 372 million yuan, will be funded by cash reserves and the net cash after acquisition is still enough for dividend payment as well as capex expansion.  Furthermore, with a P/E ratio of 11X for FY2011, Fuxing will become the second zipper manufacturer with fully vertical-integrated capability in China after Xunxing.

Anya
Pick - Vallianz
Buy: $0.065
Target price: $0.075

Reasons: Vallianz is a speculative stock, current price at 0.06, previous week high up to 0.07. As this is a small stock, any small movement will result in considerable profit. 26MA sticking very close to mid-range of Bollinger, might show break out within next two weeks.