Wednesday, October 24, 2018

Inari and Insas

Both Inari and Insas dropped with a bigger magnitude than usual today.

Inari Amertron Bhd (Rm2.05)

Very likely Inari has completed its mega wave (1). If it can hold above 1.60, mega wave (2) is likely to take the form of a side way A-B-C-D-E, a shallow but longer duration corrective wave (2).

If 1.60 support level cannot hold, Inari is likely to drop all the way to 0.90 for a simple A-B-C , a bigger magnitude but shorter duration mega wave (2).

But technically as long as Inari can hold above 2.00, it is still possible that major wave 9 has yet to be completed even though it appeared highly impossible under the current worldwide bearish market condition. For me, I definitely prefer to hold cash rather than to hold Inari stock at its current level under the current market condition.

Insas Bhd (Rm0.73)

Insas has sent a bearish signal today by setting a low that is lower than its previous low of 0.745.

Under this condition I can no longer hold on to my previous wave count that Insas has completed its mega wave (4) in 2015 at 0.60 and since then has been forming its mega wave (5).

Alternatively the 0.60 low in 2015 is the wave A of (4), the 1.17 high in 2017 is the wave B of (4) and Insas at this moment is on the wave iii of its wave C of (4). Hopefully this mega wave (4) can end at 0.60, another 18% to go.

For this solid counter with net assets at Rm2.49, net cash of about Rm300 million and with 0.95 Inari share per each Insas share plus its other businesses, I still cannot understand why its stock price can drop so low.

Is the owner going to take it private at below 0.60 and then let it be delisted by Bursa just like Petaling Tin with net assets of Rm 1.01, it was taken private at 40 sens by Chen Lip Keong and was delisted on 16/8/2018 ???

Anything can happen in stock market.


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