CNOOC

Stock code: 0883.HK

Last close: HK$11.52

Entry: HK$11

Target: HK$12.50

Stop loss: HK$10

By Patrick Shum

Dragged by the decline of oil prices, the share price of CNOOC has fallen to a low of HK$11.

The company is an upstream oil company, which is strongly affected by the oil prices.

Oil prices have fallen to a low of $120 twice and found support there. If the oil prices stabilize in the future, CNOOC could benefit.

The parent company of CNOOC has announced a profit warning - despite its profits jumping 30 percent during the first half of this year, its windfall profit tax increased by 70 percent.

From the earning performance of its parent company, CNOOC has seen a good outlook during the first half.

If the central government adjusts the threshold of the windfall tax, the profits of oil companies will grow.

Investors are advised to enter at HK$11 with a short-term target of HK$12.50. It is wise to stop loss at HK$10.

The author is the executive director of Karl Thomson Investment Consultants Limited.

HSBC Holdings

Stock code: 0005.HK

Last close: HK$129.40

Target: HK$135.80

Support: HK$120

By Lai Wai-shing

Earnings of HSBC Holdings during the first half of this year hit just $7.72 billion, down 29 percent, year-on-year.

The reasons are as follows:

Its SIV writedown totaled $29 billion, up 61 percent, year-on-year.

HSBC Holding's pre-tax losses in North America recorded $2.89 billion, worse than the $2.34 billion seen during the second half of last year, and $2.44 billion during the first half of this year.

HSBC's Asia-Pacific market was also sluggish. Its pre-tax profits during the first half hit $3.07 billion in Hong Kong, down 7.7 percent. Other regions in the market reached just $3.62 billion.

Its mainland pre-tax earnings hit $907 million, dropping 71 percent, year-on-year.

I believe it is hard to reverse the difficulties for HSBC's North American market due to the US economic economic woes.

The author is a senior independent commentator.

China Resources Land

Stock code: 1109.HK

Last close: HK$10.18

Sell: HK$9.80

Decline target: HK$9

By Castor Pang

China Resources Land has recently turned in a strong business performance, and its parent company is expected to continue injecting capital into the firm in a bid to enhance its profit-earning capacity.

However, difficult times may lie ahead, with the mainland property market experiencing a wave of negative sentiment.

Macroeconomic adjustments, which have placed downward pressure on the property market, are expected to remain in place as the mainland fights to rein in inflation.

The stock price has fallen from a high of HK$22.40, and it has continued declining, testing a low of HK$9.80.

If the shares finally break through their lower support level of HK$9.80 and continue falling, it is expected that investors will sell off their stock, thereby placing even greater downward pressure on the price.

Investors are advised to sell shares of China Resources Land when they fall below HK$9.80, and it is advised to enter at the HK$9 point, the next decline target.

The author is a strategist with Sun Hung Kai Financial Group.

(HK Edition 08/05/2008 page3)