Dow, ASB, GPharos & Pworth

Dow added another 88 points on Friday to set another new record at 16,924. It needs another 76 points to reach 17,000 level. My previous wave count remains valid, wave (xiii) is in progress.

The main question is whether wave (xiii) will mark the end of major wave (5) and that may also mark the end of Mega wave 1 if mega wave 1 has only 5 major waves. Then the following mega wave 2 correction will be 30% or more. Be very careful when wave (xiii) ends.

However if mega wave 1 has more than 5 major waves then the next correction will be the major wave (6), a 10% pullback.

After some careful consideration, I have an alternative wave count for Dow at this stage as shown below.

Where the current run-up is only wave (xi), there are still wave (xii) and (xiii) to go. The only problem I have is that wave c of sub-wave ii has only 3 waves instead of 5, not that right.

Under this alternative wave count Dow is likely to complete its major wave (5) by end of 2014 or early 2015.

Advance Synergy Bhd (Rm 0.255)

ASB moved up strongly with high volume on Friday. If it can break its previous high of 26 sens and go higher next week, then it is on its sub-wave iii  heading for 35 sens level or higher.

If ASB is unable to go higher than the 26 sens level next week, then Friday's surge is only the wave b, it will have to go down to 17 or 18 sens level to complete its wave (iv).

Golden Pharos Bhd (Rm 0.795)

GPharos continued to move higher on Friday, it added 5 sens to close at 79.5 sens, sub-wave iii continues. My first target is Rm1.10

Another possibility is a running a-b-c formation, which is not damaging with wave c higher than wave a. If it can hold around 70 sens, that can be sub-wave ii.

Priceworth International Bhd (Rm0.16)

A very bearish chart, no sign of a bottom at this moment. One of the golden rules in stock investment is 'Don't try to catch a falling knife - it is a fools game and it is the first step towards bankruptcy'.

The Sun Daily has published an interesting article for this stock on 26th May, 2014 . Click ' Priceworth ' for the article.

Same as Golden Pharos, the main business of Priceworth is in timber extraction, processing, manufacturing and selling of processed wood products. From the above article, it is important to note that early this year, Pworth has acquired Beta Bumi Sdn Bhd that comes with a timber concession for 20,000 ha of forest.

A comparison between the monthly log productions for GPharos and Pworth is as shown below.

It is interesting to note that after acquiring Beta Bumi, the log production of Pworth has improved from January 620 cu.m and February 251 cu.m to March 5,884 cu.m and April 6,587 cu.m. The May and June log production figures for these two stocks are crucial in assessing the 2nd Quarter earning.

My next two questions are :
"Is 16 sens the bottom of Pworth ?" and
"Is Pworth a potential gold mine ?"

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