Monday, March 30, 2015

Dow - Has wave (xiv) ended ?

Dow (17,976)

Dow added 263 points (+1.49%) on Monday. With this strong candlestick, there is a possibility that wave e as well as wave (xiv) have ended. Wave e is known to be unpredictable, it can fall short and it can also overshoot.

If this is the 'fall short' case, then Dow is on its wave (xv) run-up.

It is also possible that Dow has yet to complete its wave (xiv). The strong candlestick could be a minor wave ii rebound,

Or it could be the wave c of mini wave 2.

Short term trend is hard to predict but as long as Dow has not reached the end of its wave (xvii), which is the next possible major turning point, I need not worry about a 'market free fall' at the moment.


Sunday, March 29, 2015

Berjaya Corporation Bhd

Berjaya Corporation Bhd (Rm 0.44)

BJCorp has reported an earning per share of 19.64 sens for its latest quarter ending 31st January 2015 over the weekend. The sharp improvement is mainly due to an 'one-off' item under 'Investment related income' of Rm 1.053 billion due to the divestment of BAuto shares and the re-measurement of fair value of its remaining 36.74% equity interest in BAuto.

Its profit from normal operation has in fact dropped 23% from 227 million to 174 million for the same corresponding period.

The main question now is whether BJ Corp is in its wave 4 rebound.

Or it is still remaining in its wave 3.

Or it is forming something else other than the two options mentioned ?


Thursday, March 26, 2015

Email from London - Mr. Ferrero

Over the last Chinese New Year, Allan and I hosted a dinner party and one of our guests brought us a box of Ferrer Rocher chocolates. So, sometimes after dinner, Allan and I would take one each and sometimes 2 if we do not have desserts.

Sometimes last week, over our Ferrero Rocher, we were sharing about what a luxury item Ferrero Rocher was when we were growing up. Surprisingly, we could still remember our first Ferrero Rocher experience. 

I told him about Auntie Geok Hui who came to our house with a box when we were staying at Berkerly Garden in Klang and it was then the most delicious chocolate I have ever eaten. It was also expensive, Rm12.90 per box of 16, stacked up in 2 layers of eight. Then, it went up to Rm16.90 and then Rm18.90. Funny how these facts still stick in the deep recesses on one's mind.

Allan said that his family doesn't spend money on stuff like this and his first Ferrer Rocher was given to him by a fat schoolmate when they went for their sports competition in early secondary school. Allan was representing his school for long jump and his friend for shot putt. So, while waiting foe their turns, his friend took out a pack of 3 Ferrero Rocher and gave him one. It was, to him, the most delicious chocolate that he has ever eaten.

And then yesterday, while reading an old edition of the Economist, on the Obituary section, I read that Mr. Michele Merrero (I didn't know there is such a person) died on Valentine's Day, age 89.

He is the inventor of Ferrero Rocher, and also Nutella, Tic Tac and all the Kinder chocolates, like Happy Hippo.

Reading his obituary, it felt as though his story is one that comes out of a story book. Even his death on Valentine's day seemed approprate. Chocolate maker dies on Valentine's Day. 

(Click ' The Economist - Obituary' for the article).

Anyway, he spent 5 years figuring how to bend the wafer in the Ferrero Rocher. 

He started selling chocolate in small packages, even individually, instead of boxes because it was not affordable in post war Germany but he felt that everyone should have some sweetness in their life even during such bleak times. 

He even created the egg-shaped Kinder surprise (chocolate egg with a toy inside) so that children can have Easter everyday. 

He was so good  to his employees that they never went on strike. When his factory was flooded in 1994, they came back over Christmas to help him clean up so that factory could start after only 15 days. He kept his company private and took his time to grow his company however he wanted to. 

I showed Allan the article yesterday after dinner, over our Ferrero Rocher. One day when my little boy is old enough to eat Ferrero Rocher and old enough to understand, I will tell him the story of this remarkable man that hardly anyone else outside of Italy knew about.


Wednesday, March 25, 2015

Dow - wave e of (xiv)

Dow (17,718)

Dow dropped 292 points (-1.6%) to close at 17,718 on Wednesday, quite a sharp drop. With a 7-wave mini-wave 2 rebound completed followed by this sharp drop, Dow left with the option of completing its mini wave 3 of e of (xiv)

If wave (xiv) can end around 17,300 level, there is another 400 points to go before Dow can start its wave (xv).


Monday, March 23, 2015

RIP, Sir

Lee Kuan Yew (16 September 1923 - 23 March 2015)

The man who transformed Singapore from a small port city into a wealthy global hub.

Under his leadership, Singapore with only a single resource - people, is able to out performed many other countries that are blessed with abundant natural resources. By 2011, Singapore's GDP is 66% higher than Japan and 19% higher than the US.

After the separation of Singapore from Malaysia in August 1965, he said the following in September 1965, "This is not a country that belongs to any single community, it belongs to all of us. This is a mudflat, a swamp. Today, it is a modern city and 10 years from now, it will be a metropolis - never fear!" 

He kept his words. He has given to his people an efficient, clean and safe garden city with first class infrastructure. He has left behind a clean, stable, fair, corruption free and efficient government that has visions, plans and policies to ensure Singapore's high ranking in the world arena in every aspects.  



Saturday, March 21, 2015

Weekly Update

Dow (18,127)

My reading for Dow remained the same. It is either forming its wave e of (xiv)

Or it is forming the mini-wave 3 of sub-wave iii of its wave (xiii).

FBMKLCI (1,803)

KLCI is forming the mini-wave 2 of its sub-wave i of wave (i) of major wave 5. I expect the major wave 5 to last until early 2017.

Farms Best Bhd (Rm 0.79)

Farms Best is either at its sub-wave iii

Or it is forming its sub-wave iv, a running a-b-c correction. Either ways it is at the major wave 1 of its mega wave (3).

Lee Swee Kiat Groups Bhd (Rm 0.305)

It is likely that Leesk has completed the a-b-c of its mini-wave 4. Hopefully it can continue to move higher next week to complete its mini-wave 5.

Poh Huat Resources Holdings (Rm 2.30)

On Thursday, Poh Huat announced a lower quarterly earning of 7.66 sens a share for its latest quarter ending 31st January 2015. Compare to its previous quarter earning of 10.35 sens, its earning dropped by 26%. This earning is rather disappointing when compared to other furniture stocks.

Chart wise, it is at its major wave 3

Hopefully its next quarterly earning can improve in tandem with other furniture stocks.


Wednesday, March 18, 2015

FBMKLCI - Mini-wave b of 2

FBMKLCI (1,797)

KLCI continues with its mini-wave b of 2 rebound. It may reach 1,820 to form a 'head and shoulder' reversal pattern before starting its mini-wave c, which has a minimum low at 1,730 and maximum low at 1,673 (100% retracement).

KSL Holdings Bhd (Rm 2.07)

Once the Rm 2.05 is broken, KSL will have a small 'head and shoulder' formed, it may go all the way to retest its previous low at around Rm 1.70 to complete the wave c of its major wave 4.

Unless KSL can hold above Rm 2.05 and can start moving up from its current level to form its wave (v) of 3.

Lee Swee Keat Groups Bhd (Rm 0.275)

Leesk is at its mini-wave 4 pullback. Has to wait until wave c is completed before it can move higher for its mini-wave 5

However if Leeskis unable to move up from its current level, it may go to the 26 sens level.

Farms Best Bhd (Rm 0.81)

Farms Best added 5.5 sens (+7%) with high volume. This can be the mini-wave 3 of iii.

Has the mega wave (2) correction since 2009 finally ended ? Is this the starting of its mega wave (3) ? It can be very juicy if this is the mega wave (3)


Sunday, March 15, 2015

Weekly Update

Dow (17,749)

Dow closed the week at 17,749. My reading for Dow remained the same. It is either forming the wave e of its wave (xiv).

Or it is forming the mini wave 3 of its sub-wave iii of wave (xiii).

FBMKLCI (1,781)

KLCI is forming  the mini wave 2 of sub-wave i of wave (i) of its major wave 5. KLCI has a long way to go to complete its major wave 5.

Lee Swee Kiat Group Bhd (Rm 0.29)

Leesk dropped 16% or 5.5 sens on Friday after it was queried by Bursa for unusual market activity. LSK has announced an 'Assets Sale and Purchase Agreement' between LSK and Englander Sleep Product (ESP) LLC (a US company). Click 'Announcement' for details.

 Since 1894, 120 years building comfort & quality

Hotel collection - Enjoy 5 star sleeping experience

This is a positive move by Leesk to manufacture and export EPS the 'Marks' mattress, bedding foundations and related products to 10 South East Asia countries covering Malaysia, Singapore, Indonesia, Thailand, The Philippines and others.

Leesk is at the mini wave 4 of its wave (iii).

KSL Holdings Bhd (Rm 2.12)

KSL is either forming the wave (v) of its major wave 3.

Or it is forming the wave e of its major wave 4.

This wave e may bring KSL to the Rm 1.70 level.

Kenanga Reserch & Investment has lowered their FY15-16E earning projection for KSL by 13% to Rm272m and Rm 302m. They have also lowered their target price for KSL to Rm 2.48 from Rm 2.76.
Click 'Kenanga' for details.


Thursday, March 12, 2015

Poh Huat Resources Holdings

Dow (17,895)

Dow gained 259 points (+1.47%) on Thursday, this is either the mini wave 2 of d of (xiv)

Or it is the starting of mini wave 3 of sub wave iii of wave (xiii) if Dow can break its upper resistance line.

FBMKLCI (1,786)

It is possible that KLCI is forming its wave b of mini wave 2. This wave b may last another 3 to 5 days.

Poh Huat Resources Holdings (Rm 2.30)

Poh Huat is in the business of manufacturing and selling of timber furniture and other related products for local as well as oversea markets.

It has reported an earning of 10.35 sens a share for its quarter ending 31st October 2014. It has to announce before end of March its quarterly earning for its latest quarter ending 31st January 2015.

Its stock price might have moved up very substantially from below 40 sens to Rm 2.30 in the last 2 years but if its quarterly earnings can be maintained at well above 10 sens due to cheap rubber wood and weak Ringgit, I would expect it to move higher in tandem with its earning.

Chart wise it is forming its major wave 3 currently.

So far its has completed its sub-wave i, ii, iii and iv and it is at the starting of its sub-wave v of its wave (i) of major wave 3.

If it can report an earning of 12 to 15 sens a share, sub-wave v should have no problem to reach Rm 3.00.