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Friday, November 27, 2009

The Failure of Dubai World

Okay, we are experiencing a Black Friday today, with the index falling of 2-5% in a single day over the world stock markets. US and Malaysia are lucky because they are enjoying holiday today without any trading.

The bad index falling was due to after a proposal from the magnificent, Dubai to delay debt payments set off a slide in stocks and higher-yielding assets worldwide. The news was not only impact the stock slide, but also currency slide. The serious slide over the months. From reliable source, not only Dubai has financial crisis of owing USD60 billions.

The worst company affected would be the bank which was the underwriter of loans to Dubai World. The unlucky one would be Rotal Bank of Scotland Group(RBS), while Hong Kong Shanghai Bank Holdings (HSBC) has the most at risk in the United Arab Emirates. HSBC Holdings share was closed with -7.6% in Hong Kong stock exchange today. What a tragedy.

Well, we will handle our KLSE fate to US stock market on today. We definitely cannot avoid index and banks share price falling sharply on coming Monday, but we keep our finger cross and see is there any positive news from US stock market. If we look from another perspective, perhaps it's time to hunt and pick up lower price leader stock on coming Tuesday?

Happy trading, folks.

Wednesday, November 25, 2009

Proton

After a long from RM2.70 to RM4.50 on few months back, I foreseeing Proton will be back in action again. As a result, I forced myself to enter 1.5 lots into my trading portfolio before closing on yesterday at RM3.73.

I decided to invest on Proton on yesterday evening due to 3 main reasons as below:

(1) The share price has been retraced up to 50% and rested for 2 months, it's time for it to soar back to what it suppose to be.
(2) All technical analysis indicators show "buy" signal.
(3) A very good news on earning of 87% quarter net profit, together with previous quarter of earning profit. This should be able to attract many investors to boost up it's share price.

I couldn't think of even 1 reason not to enter Proton. Can you? Anyway, since I'm driving Proton and I really don't like this product, I plan to hold it for short-term and my minimum profit target will be between RM4.20 and RM4.60. Let's see.

Saturday, November 21, 2009

Is Mid-term Correction Around The Corner?

After the KLSE index has been bullish for about 65% from the highest point, everyone is worry about the current situation now. Will it continue to bullish or facing mid-term correction soon?

Basically there are 6 strong hints that KLSE will be facing a mid-term correction.
(1) KLSE index has been raised up to 65%, it should be correcting around 50-65% retracement. The index has been facing difficulty to move further since financial budget announcement in the end of last month. It solely rely on external market to move now.
(2) The top 20 volumes stocks are mostly formed by penny, warrant and PN17. This indicating the blue chips and small-cap stocks are too expensive for investors already. Once the penny/PN17/warrant stocks are expensive for them, you can imagine already what will be next?
(3) The average of price falling company are greater than the price rising company since mid of last month. This is normally the symptom before the bearish trend or mid-term correction.
(4) Foreign investors are started to retreat their funds from the growth stocks, which has reach the new high of the year everyday. Without the support of foreign investments, who else afford to do so?
(5) The most attention company, Maxis on board also seems couldn't alleviate the situation.
(6) Most of the companies announcement are positive for the 3rd quarters, but most of the investors are not excited with the positive news. Those company share prices are mostly fall than rise.

My analysis might be wrong, the only strong hint I'm lack of, is the volume. Once the volume is shooting up, then it's time for us to cut loss and take profit soonest. Anyway, just remember one thing. When everyone is fear, it's time for you to be greedy and attack. When everyone is greedy, it's time for you to fear and retreat.

Happy investing.

Monday, November 16, 2009

MAXIS Onboard on Coming Thursday

Good news, MAXIS will be onboard at KLSE on coming Thursday.

According to the news, the final price is RM4.75. This is a really attractive price to buy at. Why I recommended so? Maxis Berhad basically is a 2nd largest telecommunication company in Malaysia, which is below Digi Berhad. Imagine Digi share price is already above RM20. This is amazing in the first place if Maxis able to increase it's earning per share dramatically within few quarters and years.


Apart from potential earnings, Maxis has the ability to maintain a generous dividend payout to its shareholders, and emerge from the slowing growth in the domestic telecommunication market via strong data revenues. Besides, Maxis retail IPO also over subscribed of 200% from the investors, and it has been paying attention from the whole country investors, as well as foreign investors.

In summary, with a higher dividend payouts and a strong earnings, Maxis is definitely a strong growth company to invest to.


I foresee the price will shoot up to sky high in the first day, and it will slight correct in the following days. My strategy will be enter 1.5 lot below RM5 in the 1st day when it opens, and enter 1 lot after few days of correction, around RM4-RM4.75. Nonetheless, I'll need to see how the investor reaction to play this game.

Happy investing.

Friday, November 13, 2009

Is Global Economic Panic Over?

Today we finally heard from the world's two richest men said.

NEWS < "The financial panic is behind us," said Warren Buffett, who recently made what he called an "all-in wager" on the U.S. economy by acquiring railroad Burlington Northern Santa Fe. "The bottom has come in stocks. Don't pass on something that's attractive today."

Sitting facing each other in an auditorium filled with nearly 1,000 cheering people at Columbia University in New York, the CEO of Berkshire Hathaway Inc. and Microsoft founder Bill Gates fielded questions from Columbia Business School students on the recession, investing and what's the next Microsoft.

The worst recession since the 1930s may be over, but the recovery isn't expected to be strong enough to stem job losses and get businesses hiring again. And the unemployment rate jumped last month to 10.2 percent, a 26-year high.

Students in the audience said they were glad the two were so confident about the economy.

"That probably weighs a lot to a lot of people to hear Buffett say we're out of the crisis," said Andrea Basche, an Earth Institute student at Columbia. >

So, what you waiting for? Invest in stock market today!



Saturday, November 7, 2009

Glove Makers

Have you feel the strong growth of glove makers?

Yes, the glove marker companies are just too strong and their bullish are never-ending since early of this year. You may notice their quarterly financial result and this year financial result are totally beyond expectation. Thanks to H1N1-driven of the high demand from the globe.

Well, if you would like to look into which has the best potential to grow in terms of profit and share price, try look at Hartalega and Supermx.

Hartalega is the most efficient, lowest production cost and fastest growth in terms of capacity and profit among all the glove makers in Malaysia. Imagine it just listed on 2008 and it can shoot up to RM5.40 in just 2 years time. Definitely this company can run higher with it's best fit situation.

For Supermx, it is a good buy because it has settled it's most serious problem, debts. And now it can fully concentrate on increase capacity with new plant and production lines, efficiency in terms of production, and lower the production costs. Apparently it has started to increase efficiency and lower the production costs practice since early of this year. And it's share price as been risen from the bottom of RM2.45 to RM3.50. If not due to the retreat of the Lembaga Tabung Haji, it's stock price has already maintain above RM4.00. We will see how this stock soars very soon.

I believe H1N1 will still continue on 2010, and the glove demand is still there. So let's anticipate this 2 strong growth companies share price to shoot up to RM6.30 within 4Q09 and 1Q10. Well, they are just my personal research and findings, as there are no guarantee to win in stock market. But we have a higher probability here with the correct strategy to invest.

Happy investing.

Friday, November 6, 2009

The Myth of Laggard Stocks

Interested to buy those high volume penny stock because of their quick and high return?

Yes indeed they are very interesting to buy. But, did you think about their risks and their volatility before? You will face problem when there is something wrong with the stock. Such as the news below. Take care.

Bursa Malaysia Securities has issued a unusual market activity (UMA) query on Green Packet and RedTone following a sharp rise in price and volume of their shares recently.

Green Packet shares fell three sen to RM1.46 and the warrants six sen down to 95 sen at 11.39am. The warrants were actively traded with 41.7 million units done.

RedTone added 1.5 sen to 43 sen with 35.9 million shares done.

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