Treasure!! – Thoughts on UMS

Today as I was reading my Forbes magazine, it impressed on me that clean energy or renewable sources of energy is going to be the next big thing. Automobiles will one day run on electricity which is going to be derived from solar energy, wind energy, etc. All through renewable energy as oil begins to run out – A solution to an eventual problem we will have to face.

Speaking about solar energy, recent newspaper article mentioned about installing solar panels all over Singapore eventually. UMS caught my eye because it is one of the leaders in the semiconductor industry, which is a fundamental component of solar panels where semiconductors are used.

(http://news.asiaone.com/news/singapore/dynamic-future-power-generation)

(http://www.straitstimes.com/news/singapore/housing/story/hdb-call-solar-panel-tender-next-year-and-will-combine-demand-other-age)

  1. MACD bullish divergence
  2. Trading system triggered at .455 but I didn’t notice
  3. And my biggest surprise, projected dividend yield of 9.9% based on FY13 and 12.9% based on projected FY14 which has only 1Q left to go.
  • Entry: 0.505
  • SL: 0.495
  • TP1: 0.535
  • TP2: 0.555
  • TP3: 0.580

Some contra-indicators would be the obvious mid-term downtrend, thus I’m placing stop losses at different levels. Overall it’s been trending upwards since 2009.

Price Movement Prediction

  • 0.580 – 60% chance
  • 0.745 – 30% chance
  • >0.745 – 10% chance

However, it came to my surprise that this is actually an excellent opportunity to enter! As I looked at the 5-year chart, Friday’s price action actually made a confirmation break of the 0.485 barrier and prices have bounced back from the 5-year uptrend support line just last week!

I end off this post with a quote:

It’s not how many times you are right, but how much you make when you are right and how much you lose when you are wrong.

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