Wednesday, December 11, 2013

Any danger sign ?

Hang Seng Index

No danger sign. Forming sub-wave (ii) of wave 3.

Singapore STI

No danger sign, forming sub-wave ii of wave 5.


Forming sub-wave iii of wave (v), no danger sign.

Pan Malaysia Corporation Bhd (PMC)

PMC Group is primarily involved in the manufacturing, marketing and distribution of food and confectionery products with subsidiaries operate in Malaysia, Singapore and Hong Kong. Its products under established brands such as Tudor Gold, Crispy, Tango, Kandos and Kiddies are exported to more than 30 countries worldwide.

Its earnings for 2011 and 2012are 0.39 sen and 1.13 sen per share, very low.  For 2013, its cumulative earning until 3rd quarter is 3.28 sen per share. The higher earning this year is due to an exceptional gain of Rm 21.58 million from disposal of a piece of land with building. Net Assets per share is 48 sen. Its cash in hand is about Rm 139 million, bank borrowing is about 6 million. If I divide net cash of Rm 133 million by its 712 million shares, It is 18.6 sen per share.

In early September, its share price started to move from 14 sen to a high of 34 sen by early November to complete its wave 5. Since then its price has started to move lower and it closed at 23.5 sen today.

Looking at the chart, I just wonder whether the current correction is the wave 6 pullback or it is the starting of the higher degree major wave (4) correction, if wave 5 marked the end of its major wave (3).

For major wave (4) correction, it may drop to around 16 sen level. But for a wave 6 pullback, the magnitude is about there.


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