KSL and Golden Pharos

KSL Holdings Bhd (Rm 2.46)

KSL added 10 sens (+4.2%) today to close at Rm 2.46. Mini-wave 3 in progress.

With a quartery earning of 15.80 sens a share and net assets per share of Rm 3.49, its closing price of Rm 2.46 looked cheap. Looking at its long-term chart below, it has a potential of going to Rm 5.00 or Rm 6.00 if its quarterly earning of 15.80 sens can be maintained.

Golden Pharos Bhd (Rm 0.895)

Finally, I managed to find out the reason for its high quarterly earning (January to March 2014) of 14.84 sens a share. Out of its quarterly gross profit of Rm 29.43 million, Rm 27.29 million came from an one-off logs sales proceeds from a tender to extract logs from 2,076 hectares of its 2,553 hectares timber concession that was given to the company by the Terengganu State Government earlier. Without this one-off item, its gross profit from its normal operation for the last quarter is only Rm 2.14 million. For this reason, I don't expect its next quarterly earning to be good.

From its long-term chart, GPharos is forming its wave (iii) currently.

At this moment, GPharos is either forming the sub-wave iii (very bullish option) of its wave (iii),

Or it has already completed its wave (iii) and is forming the wave b of its wave (iv) as shown below.

If its next quarter earning is not expected to be good, it is more likely that GPharos is having its wave (iv) correction at this moment. I am not as optimistic as before for this stock and I have started to reduce my holdings on this stock.



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