To The Moon

$Seatrium(S51.SI)$ has announced in its latest filing on Wednesday that it has secured a green trade finance facility with a banker's guarantee from OCBC worth €720 million (S$1.1 billion) to finance its sustainability efforts.

This financing would support Seatrium’s offshore renewable projects and decarbonisation efforts, bolstering the group's implementation of green measures and investments in sustainable and environmentally-friendly technology and practices within its operations as mentioned in the filing.

I have some holdings in $Seatrium(S51.SI)$ so I would be interested to see how this stock would trading forward as it has its fair share of “not so nice” moments.

In this article, I will try to analyze this stock using the fundamental analysis and technical analysis to see the stock short term and long term potential.

Seatrium (S51) Fundamental Analysis (Return on Equity and Asset Growth)

If we look at the FA for S51, it has a good growth of 10.92% over 3 months, but if we look closely at the total debt and total cash, it has more debt, this would be an alarm bell to consider.

Something to watch closely is the next earnings report on 28 Jul 23 which is around 2 weeks from now, they have managed to secure new financing to boost their implementation.

But question remain on when will investors be able to see better Return on Equity (-6.56%) and Asset Growth (-1.62%) over period of 12 months.

I will be monitoring how the stock price would move these 2 weeks and closely watch the earnings report, as there should be pretty good revenues coming from some of its completed projects.

At this moment, I will look like how its current stock price have been trading using Technical Analysis).

Seatrium (S51) Technical Analysis - Moving Averages

Both the SMA and EMA has given a BUY signal for short term and long term trade. This would mean that the current stock price should be either be in a bullish trend, or it might have undergo certain reversal.

Seatrium (S51) Technical Analysis - Average Directional Index (ADX)

As mentioned above, Moving Averages are given a BUY signal, and it could mean it is in a bullish trend. I shall use ADX to see how the trend is performing.

ADX actually show that S51 is in a downward trend, but +Di is well above -DI which suggest that it has a strong upward trend.

So ADX is giving a very conflicting signal and hence, it is important for me to check if S51 has any potential reversal or has undergo any reversal.

I will move on to use Parabolic SAR to help me check.

Seatrium (S51) Technical Analysis - Parabolic SAR

As seen from MA, we have a BUY signal but ADX is giving us a conflicting trend - bullish or bearish. So I decided to use SAR.

From the chart below, SAR has shown that S51 has recently undergo a bullish reversal in early July, this might explain why we can see that S51 have been trending up this week.

And it has a pretty strong bullish upside move. This explains why the stock price is trending upwards and I believe there are more room for upside closer to its earnings report.

Summary

From the S51’s FA, we can see that they are not really doing well, but if we go to TA and look at just one indicator (Moving Averages), it might not tell us the whole picture of how the stock is moving.

Hence, we should always use 2 or more indicators to check if any of the indicators show conflicting signs or signals.

I will continue to monitor as I have DCA once for S51 at its lowest price recently, will continue to do so if there is any opportunities.

Appreciate if you could share your thoughts in the comment section whether you think S51 is worth investing or trading and use of multi-indicators to check how a stock is trading useful?

@TigerStars @Daily_Discussion @TigerWire  appreciate if you could feature this article so that fellow tiger would benefit from my investing and trading thoughts.

Disclaimer: The analysis and result presented does not recommend or suggest any investing in the said stock. This is purely for Analysis.)