CWT (Lim&Tan)

S$1.24-CWTS.SI

􀁺 The company has requested for Trading Halt.

􀁺 We would not rule out CWT making an acquisition in the commodities trading arena, a new focus of management (Logical extension” of CWT’s core logistics business), and which has attracted bullish coverage by a few local brokerages.

􀁺 Recall management, in response to SGX’s Jan 5th query re: the 13% surge in share price to $1.16, attributing it to the $1.72 price target of a Malaysian-owned broking firm.

􀁺 By Feb 18th (or 6 weeks later), CWT had climbed almost back to the 2007 of $1.35. The high this year of $1.41 was reached on April 21st.

􀁺 In short, such an acquisition by CWT would not be a “new story”.

􀁺 Note also that the commodities flavor has also gone “flat”: prices of major commodities have declined sharply, and so have commodities related stocks, eg Glencore at 471p on Friday, is 11% off its muchanticipated IPO at 530p.

􀁺 We do not have a rating on CWT.