Japan Reconstruction Theme

People used to say, a crisis will always brings opportunity. 

This is very true, especially in stock market. Many investors do think that certain stocks would benefit from the reconstruction of the buildings damaged in Japan's earth quake more than 2 weeks ago. 

Since Malaysia is rich with natural resources, what can our local company can contribute for the buildings reconstruction?

As most of the investors agreed, timber would be the one required by them to do so. Thus, timber stocks have become the Japan reconstruction theme since last 2 weeks. You can see how amazing of this opportunity, where most of the local timber stocks shoot up like no tomorrow for the past 12 trading days, like TAANN, JTIASA, SUBUR and WTK. SUBUR and WTK are the shocking one, as their prices are almost double. 

Not only that, the stocks related to timber also being fried and shot very high today by the investors, like EVERGRN, EKSONS and HEVEA. No doubt, one way to make quick profit from stock market is to follow the theme. I also remembered that analysts call for timber stocks as they noticed their cycle is almost comes to an end. So have you accumulate any timber or timber-related stock?

If yes, congratulations to you. If no, we do not have to envy too much. I did not buy or hold any of the timber or timber-related stocks so far. The price over-surged may not be a good thing, especially poor fundamental companies like SUBUR and WTK. Even they may benefit directly from Japan's reconstruction theme, but we may not assume that they can double their net profit within 1 or 2 years time. 

Furthermore, they are not even confirm they fully benefit from this theme. Thus, I think overall the local timber stocks are overpriced for now. These hot cakes will be cool down very soon. That's only my opinion.

What do you think?

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