Blue Chip Performance

Since the market has just been recovered & possible to start the last rally of bull run, I have an idea to keep track for the blue chips if they will rally first before 2nd liners & penny stocks to be followed subsequently. Current STI index has stayed at 3139 pts, and with the catalyst of last rally, STI is possible to reach previous high at 3900 pts in 2007, or even new high at 4200 pts with the calculation of market PE at 10. So based on previous high 3900 pts, there is around 25% room for improvement for the blue chips to reach the level. Let's take a look for individual STI index stocks for their fair value if reach the level. That can be explained why we should focus on penny stocks (with strong fundamental), which probably have 50~100% return in last phase of bull run.

Below is the comparison table for STI blue chips (Updated as 2-July-11):

From the table, it is obviously that NOL, SGX & Capitaland are laggard far behind STI index. Let's see if all blue chips will be rallying according to analysis table.