Monday, December 22, 2014

FBMKLCI - Major wave 5 started ?

FBMKLCI (1,744)

KLCI added 28 points (+1.64%) on Monday. Hopefully this is the major wave 5. Hopefully both KLCI and Dow can run for another 2 years.


Pan Malaysia Holdings Bhd (Rm 0.435)

PM Holdings gained another 13.5 sens (+45%) on Monday.


It moved from 11 sens to 43.5 sens (+295%) within 6 trading days. The news - Dr. Yu Kuan Chon bought another 69.192% of PM Holdings from Mui at 12 sens a share. With what he already has in hand, Dr. Yu ultimately will hold 74.522% of PM Holdings.


With net assets at 6 sens and 2012 EPS at -4.23 sens, 2013 EPS at -1.05 sens and 2014 first 3 quarters EPS at -0.21 sens, its price of 43.5 sens is fundamentally not right but technically correct. If we are talking about 'double-bottom' formation, it will ultimately go to Rm 4.00. BUT, frankly speaking I won't touch this stock because firstly chart can fail; secondly holding this stock is at the mercy of the operator and thirdly once the price collapsed, it could plunge all the way to where it started - 3 sens (May 2013 bottom).


Malayan United Industries Bhd (Rm 0.28)

Mui added 3.5 sens (+14.3%) to 28 sens with high volume today.


From its 10-year chart, very likely Mui has started its major wave 5.



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