Dow - Wave (xiii) has started

Dow moved strongly to another new record high after 3 hours of trading on Thursday. It added 103 points to reach 16,841 level.

Under such circumstances I have no choice but to treat the wave e of wave (xii) as a failure wave. The previous low near 16,400 level marked the end of wave (xii). Dow has started its wave (xiii) since then.

Advance Synergy Bhd (Rm 0.225)

Is ASB ready to move higher again ? Has it completed its wave (iv) ?

If we are talking about wave (iv), I think the correction is not over yet, I expect it to pull back to the mini wave 4 level of around 17.5 sens.

However, if ASB can move up from its current level and shoot beyond its previous high of 26 sens, then the current pull back is not wave (iv), it is sub-wave ii as shown below, very bullish. So watch out for that possibility.

Golden Pharos Bhd (Rm 0.745)

GPharos added 10 sens (+15%) today to close at 74.5 sens. After its announcement of an impressive earning of 14.84 sens for its first quarter (January to March 2014) on 26th May, its stock price surged from 30 sens to an intra-day high of 80 sens within 2 days.

It consolidated around 65 sens level for the next 5 days before moving up again today.

From the above table, the main bulk of its profit is from its timber related operation. The company was awarded additional timber concession land by the State Government. As a result its monthly log output has increased greatly as shown below.

It is interesting to note that its April log output has exceeded its 4th quarter 2013 figure. If its log output can be maintained at 9,000 cu.m for May and June, its 2nd quarter log output can reach 28,000 cu.m, its 2nd quarter earning may exceed its current quarter of 14.84 sens.

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