You are probably sighing in front of the screens these days while watching the Asian markets dipping lower and lower every day as the Chinese and Hong Kong shares continue to fall. Here are a few observables from OTAS which could provide you some insights before you make your next trading decision.
The ‘Express’ App under our Launcher Bar is the best tool for you to gather the data you need when you are in a hurry. With the Top Stocks tab sitting on the left and the Lingo tab on the right, you get a quick glance of what’s happening in your portfolio or chosen indices with a clean textual summary in seconds.
From the Top picks generated above, we see that Bank of East Asia (23 HK) is probably a stock that we need to watch out for. The stock is flagging as it is trading significantly below its average valuation over the last two years. On further inspection, the short base of the stock has spiked reaching its highest level since beginning of the year. 3.8% of free flat shares are on loan, up by 55% in the past week. Earnings momentum is also at its lowest being one of the 10% of all the negative performers in the sector, with 12 months forward EPS momentum down by 6.5%.
(Please note about the particulars of the scrip dividend scheme which could be the cause of the spike in short interest, source: http://www.hkbea.com/pdf/en/about-bea/investor-communication/circulars-and-notices-to-shareholders/2015/e_Scrip%20Circular_2015%20Interim.pdf)
The second stock we are going to look at is Cheung Kong Holdings (1 HK). Coming close to earnings release in four days, the implied volatility of the name is seen to be pretty stable relative to the sector. And even though the earnings momentum has risen up from a negative to a positive percentage point in the past month, its valuation is extremely expensive and the dividend pay-out does not look to be that generous. Valuation is expensive as the current 12 months forward Price/Book is 0.9x forward earnings.