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Wednesday, December 01, 2010

DOW down 50 points. RON97 up to RM2.30 now, expect the increase in RON95 too, then ... no escape. We are expecting to pay RM2.50 or above soon. The excuse could be crude oil up to USD100 or ours the cheapest in the region. Election is around the corner, we do not expect any increase or oil, electricity,water and such ... but once election is over, our consumer items prices will go a notch high. That is called inflation.

HSPlant : It came back to RM3 and I wanted her, but moved up to 3.14 again yesterday. Lost the grip again.

Out of 30-stocks : AirAsia, BStead, Bursa, Evergreen, HSPlant, Kencana, KFC, KPJ, Kulim, MEGB, MPHB, Parkson, QL, QSR, Sapcres, SPSetia, Sunrise, Sunway, TChong, TDM, Topglove, UEMLand, WCT

These will be a few stocks I will be slowly exposing my 'students' to - to do homework on them and see opportunities to invest in them as market corrects further. I will be using WCT as a case-study and show them what to look for this Friday. Sorry that my classes NOT open to public(yet) as they are my friends - they are science-based with ZERO knowledge about businesses, accounting, economics, finances, markets and such. Hence, I have to start from ground ZERO. I do hope they will be able to reach to a certain level where they could 'argue' with me about their pointers. Let us see ... there is NO right or wrong in market. It is up to our own judgements. Then, stick to our strategies. Bottom line - PROFIT.

11.20 am : Busy busy ... KLCI testing 1480.

Bursa still in red. Kinstel in red. Many more will be added to oversold list. Eurozone giving us reasons to see more weakness in markets globally. Koreans tension is still threatening. Are we in BEAR market now? Reversal or correction?

7.20 am : Yes, I m very busy and will be busy till end of next week due to exams.

I have given a 'homework' to my students : GenM vs MMCCorp. They need to give me three reasons/excuses WHY there is a weakness in their current share-prices. And could we see it as an opportunity to BUY. Give three reasons/excuses why you will buy GenM or MMCCorp.

They need to search the news and relate it to the business of the companies. It is a huge challenge for them as we are very busy with our teachings, paperworks etc etc.

Then, individually I will discuss their 'works'. No such thing as right or wrong. It is how you interpret the news and re-look into its fundamentals to check if anything has changed. Yup, I m a very hard-working 'teacher'. haha.

You will surprised that they produced good analysis, on the surface.

9.50 pm : I took a nap again before I could continue my 'studying' here till midnight. It is tiring, I know.

KLCI : It was in red in the morning. Then, it recovered to close flat at 1485. PT, I wore blue today, so I happened to be right again. Haha. HSI closed 200+ points today.

JCY : Closed at 0.83, down 7%. I was queueing at 0.83 in the morning but cancelled my queue due to weakness in YTLPower which needed my attention. Well, read about MCMC news. Anyway, JCY may have a few more days to fall. RSI at 26 now. Dive to new low ... say, 0.75 then perhaps we could take a look again. Now is too risky with many CUTTING losses. Do you think at 0.80 level it is a BUY more or SELL for someone who bought it at RM1.05(Mr G)?

GPacket : No longer green since many may say yes to YES. At 0.80 level now, fundamentally flawed. The only HOPE could be Mr Puan coming out to speak about their latest 4G and confident they could monopolise the 3G-4G-Wimax or whatever G market you have. They cant touch Stevie G, tho. I didnt mention her for very long now as it is in down trend and I dont see it moving back to RM1. It is speculative counter too... so, syndicate might want to goreng it to RM1? We shall watch ...

Bolton : A rebound in the making seen. Need to watch 1.05 level.

MudaJaya : RSI at 33 level, support at 3.90. Share buyback recently at 3.95. Recent reports shown improvements in FA. But, due to SC checking on them, that chased the investors away. I wont want to buy-n-hold this counter either due to such uncertainties. Perhaps I have many counters in mind.

Pursuant to Bursa Malaysia letter dated 4 August 2006 in relation to disclosures on the abovementioned, the Board of Directors of Mudajaya wishes to announce the status of its Ventures as follows:-

1. Joint Venture (JV) between Dato Abdul Rahman bin Abdullah, Integrated Heights Sdn Bhd and Mudajaya Corporation Berhad, a wholly-owned subsidiary of Mudajaya Group Berhad
The Advertisement and Sales Permit was granted for the period from 8 April 2010 to 7 April 2011.

2. Joint Venture (JV) between R K Powergen Private Limited and Mudajaya Corporation Berhad, a wholly-owned subsidiary of Mudajaya Group Berhad for a coal-fired Independent Power Producer Project (IPP Project) in the State of Chhattisgarh, India There is no further update on the JV since the last announcement dated 25 August 2010.

3. Memorandum of Agreement (MOA) between Koperasi Serbaguna Peneroka Felda Chini Tiga Bhd , Promi-Quest (M) Sdn Bhd and Mudajaya Corporation Berhad, a wholly-owned subsidiary of Mudajaya Group Berhad There is no further update on the MOA since the last announcement made on 25 August 2010

4. Memorandum of Agreement (MOA) between Koperasi Pembangunan Tanah Daerah Kuantan Berhad and Mudajaya Corporation Berhad for a contract sum of approximately RM141 million
There is no further update on the MOA since the last announcement made on 25 August 2010.

5. Memorandum of Agreement (MOA) between Mudajaya Corporation Berhad and PT Permata Kaltim (PK) There is no further update on the MOA since the last announcement made on 25
August 2010.

6. Memorandum of Understanding (MOU) between Mudajaya Middle East Ltd and Modern Electro-Mechanical Projects Limited and Mr Mubarak Abdullah bin Mohammed Al Khafra
There is no further update on the MOU since the last announcement made on 25 August 2010

7. Memorandum of Understanding (MOU) between Mudajaya Corporation Berhad and the Government of the Lao People's Democratic Republic, represented by the Ministry of Planning and Investment. A consultant was appointed on 22 November 2010 to undertake the feasibility
study consultancy services in respect of the Nam Poui 1 Hydropower Project in Laos.

This announcement is dated 23 November 2010.

So, what do you think? I think of risk. I think of WHY SC checking on them? India, Middle East and Laos? Perhaps investors losing their confidence in transparency and view it as RISK. i will too.

11.15 pm : DOW up almost 200 points now. BULLISH again?

I noticed that markets are VERY volatile now, showing that fear is gripping many but the bull wants to be in play. So, one moment you feel very bearish seeing reds, the next moment you want to bull. Look at Sapcres today. The good news out yesterday but fear gripping it in the morning .. after lunch, bullish as HSI shot up. Everyone in sideline in the morning waiting for GOOD signs ... then lets the greed in play. BUY BUY!!

TEH

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