Saturday, November 29, 2014

Dow - Be careful, be very careful

Dow (17,828)

Out of 19 trading days in November, Dow set new record high on 12 days. I think this is a record by itself. But there were no high record volumes and there was no euphoria. The current record bull run is so different from those good-old-day euphoric record setting bull run. May be because this is purely a liquidity driven run, an assets bubble run, and the bubble can burst anytime. So, be careful, be very careful.


FBMKLCI ( 1,820)

As long as Dow can hold, I will continue to maintain my present wave count for KLCI. It is on its wave c of its mini wave 2. Hopefully it can begin its mini wave 3 soon.


Hopefully KLCI can proceed to complete its wave d by early 2015.


KSL Holdings Bhd (Rm 4.54)

On Friday, the AGM has approved the proposed 1 for 1 bonus issue as well as the dividend reinvestment plan. KSL has also announced its 3rd quarter earning of 18.14 sens per share. Its net assets per share is Rm 3.87.

Earning for the first months reached 54.33 sens. Kenanga expects KSL to earn at least 78 sens a share for 2014 and 97 sens a share for 2015 (based on its current number of paid up share of 386 million)


Hopefully KSL can continue with its sub-wave iii next week.

Priceworth International Bhd (Rm 0.185)

PWorth has announced a positive earning of 0.23 sen a share after many many quarters of losing money. It has also announced quite a high figure for its October logs output of 9,485 cu.m. Hopefully it can slowing improve it monthly logs output from the current level to its estimated 100,000 cu.per month by 2017.

If 100,000 cu.m a month can be achieved by 2017 and KSL can increase its integrated timber mills operation from its current 30% of its available capacity to more than 70%, PWorth is going to be a goldmine. But, I am still worry about the assets bubble and when it will burst. 2017 is a long time to go. Sigh !



Malayan United Industries Bhd (Rm 0.27)

After suspended its share for 3 trading days, Mui announced on last Tuesday that the company is engaged in discussion with a potential party to explore the possibilities of disposing certain substantial assets of the company.


Currently Mui is forming its major wave 5. The stock opened with a gap on Wednesday, has a pullback on Thursday on thin volume and started to move higher again on Friday with high volume. This looked interesting. There were speculation that Mui may dispose its London Hyde Park Corus Hotel for £200 million or Rm 1.05 billion.


Mui is currently forming the sub-wave i of its wave (iii) of major wave 5.

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