STX – Soon Two Xchanges

Today, STX PO shares price rose 10% to close at $2.33 with a volume of 18.7M. (Punters stocks like Sapphire and Jade only managed turnover of 11M)
So what’s up with STX PO?
If you’re into Fungshui, this could be a case of ‘Tian Shi Te Li Ren He’ – Heaven, Time, Earth, Strength and Human, a powerful combination of elements.
Lets us take a look at each of these elements, starting from the back.

HUMAN
For a stock to move, you need momentum. Price increase doesn’t mean much without support of volume. Today, STX got into the Top volume list, this is impressive for a $2.3 shares. Many of these trades are in blocks of over 100lots. You can be sure the Fund managers (the Human) are back buying.

STRENGHT
2007 1Q, EPS increased 130% to 3.5centUS.
2007 2Q, Net Profit rose 5 fold to U$178M.
STX definitely has the strength to grow. I’ll not bored you with the details, if you want more evidence, please click on the SGX link on the right of this page and have a look yourself.

EARTH
STX is trying to create more ‘earth’. In another words, it’s trying to looking for more favorable ground to expand its operation.
In May 2007, there are talks that it may list on Seoul Exchange. On 24 Aug, it announced its plan to float 340 million new shares, or 20 percent of its current share capital, to raise $400 million to fund purchases of new ships. The listing, which will make STX the first South Korean firm to go public abroad and list at home later. A home coming for a favorite Son which will sure to create lots of interest.
With a dual listing, the profile of STX will increase. Fund manager from all over Asia will take more notice of this stock which got the endorsement from 2 Exchanges.

TIMING
This one is tricky, 2 ways of looking at whether Timing is right.
1. On a macro view, Yes. S’pore, Korea is doing well. Asia economy is on the raise.
2. On a micro view, maybe… No. US Sub-prime woes are not completely over.
The proposed listing date is mid to end Sep (yet to finalize). A lot of things can happen in 3 weeks, which leads me to the final element, the All Mighty Heaven.

HEAVEN
This is the one that can steer the course of everything just by talking. Yes, Ben ‘The Heaven’ Bernanke. He, the ‘God’ of world economy has the power to decide whether it’s a Up 200pts or Down 300pts day. He is due to give a speech today (Fri US), and the STI next Monday’s fate will depends on it. Nonetheless, I believe Uncle Ben is on our side, any indication of rate cut will send STI sky rocketing to HEAVEN again.

Have a good weekend!

Disclaimer: All shares recommendations in this Blog are my personal opinion. Readers are encouraged to do their own research before investing. Remember, it’s your own money! I will not be liable for any losses incurred.