Technically, IOICORP (1961) finds a support at RM 5.25 level.
Friday, July 25, 2008
Thursday, July 24, 2008
KNM - POTENTIAL HEAD AND SHOULDER
Potential Head and Shoulder Pattern found in KNM Intraday Chart. It may be the peak of recent play.
Wednesday, July 23, 2008
BANENG PLAY GAME OVER ???
Up to the minute of this update, we found out BANENG has losing its momentum today, the 3rd day bull ride.
Chances of BANENG pulls back is much higher than further advancement.
Chances of BANENG pulls back is much higher than further advancement.
KNM EX TODAY
KNM closed at 5.15 yesterday, divided by 3 = 1.71.
With 1.71 reference price, it is now gaining 0.06 to 1.77. Theoritically, deriving back pre-ex price, it should be 1.77 x 3 = 5.31.
For those who bought KNM yesterday at 5.20, are break even now. For those who bought at lower than 5.20, are sitting on some profit.
This is the profit of BONUS EX play.
With 1.71 reference price, it is now gaining 0.06 to 1.77. Theoritically, deriving back pre-ex price, it should be 1.77 x 3 = 5.31.
For those who bought KNM yesterday at 5.20, are break even now. For those who bought at lower than 5.20, are sitting on some profit.
This is the profit of BONUS EX play.
Tuesday, July 22, 2008
KNM BONUS EX - TRADING OPPORTUNITY
Last day to buy KNM for BONUS Entitlement, half an hour more to go.
KNM Bonus Ex Date : 23/7/2008
Ratio : 2 for 1
Buy today, and sell tomorrow ???
KNM Bonus Ex Date : 23/7/2008
Ratio : 2 for 1
Buy today, and sell tomorrow ???
HOLIDAY CHARGING & RELAXING
Enjoy our Juicy Life, Life Satisfaction helps us to think positively, for building our fortune.
Taste the yummy Lobster Noodle (Shueng Tong Long Har Min) in Hong Kong. It Costs about HKD 220.00 for one big bowl, which is enough for 2 servings.
Taste the yummy Lobster Noodle (Shueng Tong Long Har Min) in Hong Kong. It Costs about HKD 220.00 for one big bowl, which is enough for 2 servings.
Monday, July 21, 2008
KNM - TIME TO BUY ?
KNM closed at RM 5.10.
For Bonus Split Play, tomorrow will be the last day to buy.
For Bonus Split Play, tomorrow will be the last day to buy.
KNM BREAKDOWN ?
Ex Date for BONUS (2 for 1) 23/7/2008
It could be a breakdown if it couldn't close above RM 5.00 today.
It could be a breakdown if it couldn't close above RM 5.00 today.
Sunday, July 20, 2008
STOCTOUCH MARKET MONITORING
Dear Fellow Traders and Investors,
Some updates have been made on STOCTOUCH websites. The Main Market Monitoring Page, ie. http://STOCTOUCH.co.cc has been added with "Auto-refresh" function for fast tracking regional intraday bourses.
For tracking Live Bursa Malaysia (KLSE) Quotes, a link to http://stoctouch.googlepages.com/bursamalaysia.html is introduced.
For tracking Live FKLI & FCPO Quotes, another link to http://stoctouch.googlepages.com/derivatives.html is also available.
Wishing all happy trading.
STOCTOUCH
Some updates have been made on STOCTOUCH websites. The Main Market Monitoring Page, ie. http://STOCTOUCH.co.cc has been added with "Auto-refresh" function for fast tracking regional intraday bourses.
For tracking Live Bursa Malaysia (KLSE) Quotes, a link to http://stoctouch.googlepages.com/bursamalaysia.html is introduced.
For tracking Live FKLI & FCPO Quotes, another link to http://stoctouch.googlepages.com/derivatives.html is also available.
Wishing all happy trading.
STOCTOUCH
COMMODITY CRASH ?
Lately, commodities such as Cruel Oil, Cruel Palm Oil and some base metals have undergone some serious correction. Rice Futures do also ride the correction wave. The question is now whether it is due for commodities to crash.
Sky high inflation is happening worldwide. A series of inflation has resulted Stagflation, a period of slow economic growth and high unemployment (stagnation) while prices rise (inflation).
If economy is as simple as one to one relationship, then the crash of commodities' prices would be translated into the release of inflation suffer throughout worldwide.
Indeed, economy effect is complex. George Soros did say the crash of commodity bubble will slump the world economy a few months back.
From technical aspect, the major correction of commodities lately is still too early to confirm the crash of commodity bubble.
We do hope fellow traders and investors share your comments here.
Sky high inflation is happening worldwide. A series of inflation has resulted Stagflation, a period of slow economic growth and high unemployment (stagnation) while prices rise (inflation).
If economy is as simple as one to one relationship, then the crash of commodities' prices would be translated into the release of inflation suffer throughout worldwide.
Indeed, economy effect is complex. George Soros did say the crash of commodity bubble will slump the world economy a few months back.
From technical aspect, the major correction of commodities lately is still too early to confirm the crash of commodity bubble.
We do hope fellow traders and investors share your comments here.
Wednesday, December 05, 2007
Is book value still reliable in investing?
Found an useful article from TheStar, to share with all fellow traders.
Even though we are close to the period of year-end window dressing by institutional fund managers, the recent low market trading volume may imply that a lot of retailers are still quite concerned over the US' financial health, especially on the subprime issue.
After the implementation of new Financial Reporting Standards on Jan 1, 2005, the book value of a company has become more reflective of the actual cost of the shareholders’ wealth in the company as a result of a lot of write-downs and impairment on certain assets for some listed companies over the past three years.
Price-to-book value (P/BV) is derived by dividing the market price with book value per share (BV per share = shareholders’ funds/total outstanding shares of the company).
Alternatively, some analysts may choose to use price-over-net tangible asset per share (P/NTA) instead because the NTA per share provides the total value of the assets net of all intangible assets (mainly goodwill) and all liabilities before dividing the amount by the number of shares. In this article, we will use the term P/BV to reflect the general concept of either P/BV or P/NTA.
How to use P/BV
P/BV reflects the number of times the share of a company is being traded versus the owner’s cost. For example, if Company A has a BV per share of RM2 and its market price is trading at RM2.40, its P/BV will be calculated at RM2.40 divided by RM2 or 1.2 times of its BV per share. According to Benjamin Graham’s defensive value investing method, we should target for stocks that are selling at prices below 1.5 times BV.
In general, we may use this “1.5 times” as a basic guide, but it’s better not to treat it as a foolproof number. In Malaysia, there are many good companies with a P/BV of more than 1.5 times.
The main reason for high price with low BV is because these companies tend to reward their investors with high dividend returns. As a result, their BV always stays low but their dividend yield (DY) is much greater than fixed deposit rates or the industry average. Hence, there is no fixed multiple for this method. The appropriate multiple will depend on how we view the quality of the company’s management and its earnings potential.
In principle, it is quite impossible to buy a stock that is selling at below its BV per share. If the market price is too low compared with its BV, the owner may come in to buy back the shares, as the company’s worth is much more than the market value.
However, in Bursa Malaysia, there are certain companies that are always selling below their BV because the general public has less confidence in the quality of its management. Hence, we should not buy a stock just because it has a low P/BV.
According to Warren Buffett’s “cigar butt” approach, a cigar butt found on the street that has only one puff left in it may not offer much of a smoke, meaning the so-called “bargain purchase” may not turn out to be such a steal.
Most of the time, a company is selling at a distress level due to weak earnings prospects, and any further deterioration in earnings may deplete its remaining BV. Thus, Buffett postulated that we should buy stocks based on their earnings potential instead of their attractive BV.
P/BV is an appropriate measure of the net asset value of firms that hold liquid assets primarily. The value of liquid asset is more definite than the real property value. Examples of such companies are those in finance, investment, insurance, and banking.
As long as these financial institutions make enough provisions for all their bad and doubtful loans, their real asset values should be near to their BVs. As a result, we will notice that it is quite difficult to find a banking stock selling near or below its BV. Most of the time, they are trading at a premium to their BVs.
(This article is available on TheStar, http://biz.thestar.com.my/news/story.asp?file=/2007/12/5/business/19662755&sec=business, by Ooi Kok Hwa, who is an investment adviser and managing partner of MRR Consulting.
Even though we are close to the period of year-end window dressing by institutional fund managers, the recent low market trading volume may imply that a lot of retailers are still quite concerned over the US' financial health, especially on the subprime issue.
After the implementation of new Financial Reporting Standards on Jan 1, 2005, the book value of a company has become more reflective of the actual cost of the shareholders’ wealth in the company as a result of a lot of write-downs and impairment on certain assets for some listed companies over the past three years.
Price-to-book value (P/BV) is derived by dividing the market price with book value per share (BV per share = shareholders’ funds/total outstanding shares of the company).
Alternatively, some analysts may choose to use price-over-net tangible asset per share (P/NTA) instead because the NTA per share provides the total value of the assets net of all intangible assets (mainly goodwill) and all liabilities before dividing the amount by the number of shares. In this article, we will use the term P/BV to reflect the general concept of either P/BV or P/NTA.
How to use P/BV
P/BV reflects the number of times the share of a company is being traded versus the owner’s cost. For example, if Company A has a BV per share of RM2 and its market price is trading at RM2.40, its P/BV will be calculated at RM2.40 divided by RM2 or 1.2 times of its BV per share. According to Benjamin Graham’s defensive value investing method, we should target for stocks that are selling at prices below 1.5 times BV.
In general, we may use this “1.5 times” as a basic guide, but it’s better not to treat it as a foolproof number. In Malaysia, there are many good companies with a P/BV of more than 1.5 times.
The main reason for high price with low BV is because these companies tend to reward their investors with high dividend returns. As a result, their BV always stays low but their dividend yield (DY) is much greater than fixed deposit rates or the industry average. Hence, there is no fixed multiple for this method. The appropriate multiple will depend on how we view the quality of the company’s management and its earnings potential.
In principle, it is quite impossible to buy a stock that is selling at below its BV per share. If the market price is too low compared with its BV, the owner may come in to buy back the shares, as the company’s worth is much more than the market value.
However, in Bursa Malaysia, there are certain companies that are always selling below their BV because the general public has less confidence in the quality of its management. Hence, we should not buy a stock just because it has a low P/BV.
According to Warren Buffett’s “cigar butt” approach, a cigar butt found on the street that has only one puff left in it may not offer much of a smoke, meaning the so-called “bargain purchase” may not turn out to be such a steal.
Most of the time, a company is selling at a distress level due to weak earnings prospects, and any further deterioration in earnings may deplete its remaining BV. Thus, Buffett postulated that we should buy stocks based on their earnings potential instead of their attractive BV.
P/BV is an appropriate measure of the net asset value of firms that hold liquid assets primarily. The value of liquid asset is more definite than the real property value. Examples of such companies are those in finance, investment, insurance, and banking.
As long as these financial institutions make enough provisions for all their bad and doubtful loans, their real asset values should be near to their BVs. As a result, we will notice that it is quite difficult to find a banking stock selling near or below its BV. Most of the time, they are trading at a premium to their BVs.
(This article is available on TheStar, http://biz.thestar.com.my/news/story.asp?file=/2007/12/5/business/19662755&sec=business, by Ooi Kok Hwa, who is an investment adviser and managing partner of MRR Consulting.
Tuesday, October 09, 2007
KLCI TO SUPPORT 1355
Refer to our previous KLCI chart, KLCI did break out the ascending triangle. Today, looking at the chart again, it seems like topping formation. 1355 is the support line for this ascending triangle breakout. If KLCI is sustainable at 1355, the upward momentum is intact. Once KLCI dips below 1355, the correction sets in.
Friday, September 28, 2007
KLCI BREAK UP OR BREAK DOWN - DAY 2
Day 2 monitoring on potential annulling break up. Sustainability of KLCI above ascending triangle is important to drive KLCI to 1400. Any negative issues pushing down KLCI below the support line (the resistance of ascending triangle will be turned to support line once KLCI stay above it) will demolish the upward momentum.
So, how you read today?
Thursday, September 27, 2007
KLCI BREAK UP OR BREAK DOWN
KLCI has come to its turning point either to break explosively up or break seriously down. 1330 is the upper resistance, 1310 is the lower support.
Meanwhile the Break Up will lead the overall market rallies up to 1400, the Break Down has the downward pressure to 1150.
Unless God can tell us the direction it is, we are all forecast based on the probability. The factors to be considered are local issues and foreign bourses.
So, how you read?
Tuesday, August 21, 2007
CORRECTION AFTER REBOUND FROM MAJOR SELLING DOWN
Correction is always followed by the rebound after major selling down.
The major selling down was heavy last week, especially on last Friday. Market started to strongly rebound around 1 1/2 before market closing on 17/8. The rebound continued to climb, hit the bouncing peak today morning.
Human physchology can explain this scenario. Major selling down has risen attention from punters to long term investors. Go and asking around the investors, you may find some long term investors were so worried on thier shares, disposed their shares last week afraid of everything back to square.
Many start to whispering on 1997 crisis. The major seling down pattern, all way down without a rebound, is alike 1997 crisis. Will it be crisis? Will all my shares 'kaput'? Investors are so worried their paper gain gone and thier paper loss widen.
Though our research shows it seems a different scenario of this major correction compared to 1997 crisis, as sub-prime issue yet to stailised, many will choose to temporarily aside. Therefore, market does always have correction after rebound from major selling down.
Rebound hit a peak today morning. Using T4 Shaking Out Theory(Shaking out Contra Players), the market may only bounce back again Friday or next Monday afternoon.
We are now waiting to fishing again at low. If our theory is right, the correction is just started today, will last for few more market days.
Happy Fishing to All !!!
The major selling down was heavy last week, especially on last Friday. Market started to strongly rebound around 1 1/2 before market closing on 17/8. The rebound continued to climb, hit the bouncing peak today morning.
Human physchology can explain this scenario. Major selling down has risen attention from punters to long term investors. Go and asking around the investors, you may find some long term investors were so worried on thier shares, disposed their shares last week afraid of everything back to square.
Many start to whispering on 1997 crisis. The major seling down pattern, all way down without a rebound, is alike 1997 crisis. Will it be crisis? Will all my shares 'kaput'? Investors are so worried their paper gain gone and thier paper loss widen.
Though our research shows it seems a different scenario of this major correction compared to 1997 crisis, as sub-prime issue yet to stailised, many will choose to temporarily aside. Therefore, market does always have correction after rebound from major selling down.
Rebound hit a peak today morning. Using T4 Shaking Out Theory(Shaking out Contra Players), the market may only bounce back again Friday or next Monday afternoon.
We are now waiting to fishing again at low. If our theory is right, the correction is just started today, will last for few more market days.
Happy Fishing to All !!!
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