Saturday, October 16, 2010

Warrants to watch

Stage 1 : Identify those warrants which with low premium, long expiry date and if possible actively traded. Also, need to know some fundamentals of the mommies. These are taken my file on KLSE's warrants that I m monitoring and recently updated.

1. AnnJoo-wb

2. BRDB-wa

3. Gamuda-wd

4. IJM-wc

5. IJMLand-wa

6. KPJ-wa

7. Latexx-wa

8. QSR-wb

9. Seg-wa

10. SPSetia-wb


12. WCT-wb

13. YTLPower-wb

Stage 2 : Look into each chart of mommies, then short-list from the chart(using simple TA - RSI, MACD and Stochastic to view at a glance). Then, look into its respective babies.

#1 : RSI(14) to be below 60.

For example : Annjoo's RSI at 73 and Annjoo-wb's RSI at 76. With my first criteria to buy is out, so she is OUT. Wait for correction.

For example : QSR's and baby RSIs at 56. So, it passed my first RSI criteria.

For example : SEG's RSI at 35 and SEG-wa's RSI at 32. Beautiful!! That is only passed the first RSI criteria.

So, from the above ... SEGi with the lowest RSI will be placed as #1 stock to watch, and stocks re-arranged in ascending order.

There are another few criterion for me to look into but normally I m too lazy!! Unless I m motivated by free D&C, ya.

Kinstel-wa : Tho it is in-the-money warrant, RSI is OK but volume of Kinstel-wa is too low. So, it is not in my list.

Century-wb : As I do not know anything about Century's business(except I know it is a logistic counter - must be delaing with forwarding or shipping? Someone wrote about it that it is a good fundamental stock), Century is not in my list. Its warrant is in-the money, tho.

Stage 3 : After arranging the warrants according to RSI, Volume, Premium and such, it is time to look more into its sector and related friends. Property-stocks and Plantation-stocks in play. Should I place KMLoong or IJMPlant warrant too? So, we go back to the stage one to check on these!! This is a longer stage as more homework needed to be done.

If we look at Latexx-wa, it is in rubber sector and the whole sector is in down-trend. Recently, there is a rebound in many rubber-stocks, but is it a technical rebound or it is on the way to recovery? I will like to wait for 3Q reports to be out, and their profit margin might be much lower now due to the strengthening of MYR(vs USD) and higher latex prices. So, the downside RISK is quite high.

For technical rebound, I could always go for their call-warrants for short-punt.

Above are my steps when I have TIME over the weekend(like today!!) to do some homework. It is sat night, and I m doing my work. Wish I have few SERIOUS knowledgable kaki to share with and we could shortlist it together!! Anyone interested to join me? Hmm ...


p/s : Of coz I like KFC-wb but its premium at 31% is high. Hmm ... cut?

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