If Dow can continue to move higher in the coming trading sessions, then it is on the sub-wave iii of its wave (vi) of its major wave 7.
But if it starts to move side way and lower, then it is more likely that Dow is at the tail-end of its major wave 8. Bearish.
My reading for FBMKLCI remains the same as what I have mentioned previously as I expect it to move in tandem with the Dow.
Dutaland Bhd (Rm0.56)
Duta will be announcing the quarterly result for its 4th quarter ending 30/6/2018 anytime next week before the Friday's National day. Its cumulative earnings for the first three quarters was a pathetic 0.22 sen a share.
Duta has sold 11,579.31 hectares of its oil palm plantation in Sabah to a subsidiary of Boustead Plantation Bhd for Rm750 million and it has received the 10% deposit amounting to Rm75 million by October 2017. Duta has completed the sale on 16th May and received the balance Rm675 million on the same day.
Based on its circular to shareholders dated 28th March 2018, Duta was expected to report an earning per share of 44.3 sens for its financial year ending 30/6/2018.
Computation was based on sale proceed of Rm750 million less the aggregate NBV of the plantation assets of Rm340.24 million and divided by 846 million shares. Net assets per share will increase from Rm1.11 to Rm1.54.
But net cash received in May 2018 was Rm703 million after deducting Rm47 million of expenses related to the land sale. Based on Duta's 3rd quarterly report, it has a net cash of Rm 21 millions. Together with the Rm703 million received, its current net cash per share is about 85 sens. But this will not guarantee that Duta will go to 85 sens. A good example is FACB that has a net cash per share of Rm1.94 but it closed at Rm1.32 last Friday.
Technically if Duta can moved up strongly next week because of the one-off earning of around 44 sens a share, it is possible that the run-up is the sub-wave v of its major wave 1 with a target of 73 sens.
But if it failed to run next week and instead it starts to move lower after releasing its 4th quarter result, then its side way movement since 2010 will continue forming a major ABC-X-ABC wave (2).
Nothing is for sure. That is the reason market can exist. That is why there is always buyers and sellers at the same time every good or bad moment.
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