Dow closed the week at 17,477 level. It continues to form its major wave (6), a corrective wave. I expect the (6) to end somewhere near 16,100 for a 12% pullback from its May's peak 0f 18,312, I do not expect the assets bubble to burst before 2017.
FBMKLCI (1,596)
If you think something ugly is going to take place on 29/30 August, Bersih 4 rally, if you think 1MDB is untouchable and Ringgit will continue to drop, sell everything and get out. The downward momentum can be so great that the major wave 5 is missing, game over.
But if you think an UMNO white knight is about to appear to resolve the 1MDB and Ringgit issues, then my major wave 4 may be able to hold and there is still a major wave 5 to come and it can last until 2017 before the assets bubble burst.
My projected support level of 1,574 is only 22 points away, it can be broken within minutes on Monday. Once it is broken, I will need to relook at all my wave count.
FACB Industries Incorporated (Rm 0.975)
Technically it can drop until 70 sens, top of major wave (1). With cash per share of Rm 1.78, zero borrowing, positive earning (but very miserable), net assets per share at Rm 2.41, it is hard to imagine that it can go to 70 sens unless KLCI collapsed then it can go to even 50 sens, a real goldmine.
Karambunai Corporation Bhd (Rm 0.045)
Another hard to imagine low for Kbunai, at 4.5 sens !! Its hotel business and property development are not doing well, losing money every quarters. It lost another 0.2 sen a share in its latest quarter. Net assets is 14.89 sens. It has about 3,000 acres of land that is greatly under value.
The worst that can happened to this company is to be taken into private by its owner Chen Lip Keong who hold about 74%.
How low can it go? Zero? I don't think so, 'no face' to CLK, who is the 50th richest man in Malaysia and he is operating a big monopolised casino in Cambodia and is listed in Hong Kong. Click 'NagaCorp' for reports. How nice if he could get a casino license for Kbunai.
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