KL Kepong and Batu kawan

After 2 hours of trading all the three indices remain in the positive side. It is possible that Dow may move side-way to lower in the next few days to complete its mini wave 2 as shown below.


It is likely that Dow is forming its sub-wave iv currently.

My friend has emailed me KLK's latest quarter (ending June 30th) earning with a heading
'KL Kepong Q3 Profit leaps 78%'

That prompted me to have a look at its announcement and its chart



It is likely that the strong earning has already been factored into the price. I will sell off all my KLK if I have in view of my pessimistic opinion on the markets - a double dips scenario. It has completed 5 waves with a 'Double Tops' on the way, another reason to sell.

Quarterly earning at 40.64 sen;
NTA at Rm 6.37;
Share price at Rm 21.34
It is not cheap

Whenever I talked about KL Kepong, I always like to mention Batu Kawan that holds 47% of KLK. The Number of Batu Kawan share is about 440 millions but it is holding 480 millions share of KLK. It means in every 1 Batu Kawan share, there is 1.1 KLK shares in addition to its other operation and assets.

When I asked my daughter why KLK's share price is always higher than Batu Kawan ? The answer from her is,"all the money earned is with KLK."



To me, statistically Batu Kawan is in a stronger position than KLK.

Quarterly earning at 50.33 sen;
NTA at Rm 8.44;
Share price at Rm 16.02
It is not really that cheap.

It is interesting to note thast Batu Kawan has been buying back its own shares consistently since 2009. All its announcements were 'Notice of Share buy Back'. Are they going to take Batu Kawan into private? This can be interesting .



FIMA Corp has also announced a strong quarterly earning.

Quarterly earning at 33.4 sen;
NTA at Rm 5.09;
Share price at Rm 6.02
(FIMA)

I would say FIMA is value for money when it is compared to KLK

Quarterly earning at 40.64 sen;
NTA at Rm 6.37;
Share price at Rm 21.34
(KLK)



FIMA has also completed 5 waves but the magnitude is too low for its major wave (III) as the wave 5 is not much higher than the top of major wave (I). Is it possible that major wave (III) may have 9 waves. Watch out for price breakout at Rm 6.50.

But with the 'double dips' in mind, there is no buying for me.



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