Insas Bhd (Rm 0.805)

Insas announced its latest quarterly earning of 3.21 sens a share. Net assets is Rm2.18. Its latest earning is expected to be less than its previous quarter of 8.84 sens because it did not sell any Inari share since 29 September 2016. During its previous quarter (1st July to 30th September) Insas sold16.5 millions shares of Inari.

In actual fact, Insas's revenue for its latest quarter has improved by 36%. And if we removed 'Other Income' from its earning, its latest profit before tax has improved by 81%.

Insas's share price continues to drop is because technically it is having its correction phase. Please refer to my post on 16th February.

Details of its 'Other Income' shows that main contributors to its Q1 profit are 'Gain on disposal of shares' Rm 24.6 million, 'Fair value gain' Rm 4.9 million and Rm 6.5 million and 'Exchange gain' Rm 5.9 million.

Technically Insas is on its mega wave (5). It has completed its major wave 1-2 and is forming its major wave 3.

Depending on the magnitude of its current correction, there are 3 possible scenarios.

Scenario 1

Current correction is sub-wave iv.

Correction is almost done. Can be confirmed/ruled out by next week.

Scenario 2

A higher degree wave (iv) correction that may last another 2 weeks.

Next rebound is tricky, it can be the sub wave v of scenario 1 and it can also be the wave b of (iv) of scenario 2. It has to have uncertainty like this or else the market cannot exist.

Scenario 3 (Too bullish to be true - unlikely)

This is the most bullish (long-term) scenario. Insas is forming its sub-wave ii.

If really this is the scenario, Insas will have a long way to go, up up up - Fatt (发) loh.

Insas half-year earning is 12.05 sens. Net assets is Rm 2.18 a share.

As I have mentioned in my 8th February post, Insas has 402 millions Inari shares. For every Insas share there is 0.6 Inari share. At Friday's closing price of Rm 1.91 for Inari, the 0.6 Inari share is worth Rm 1.14. Insas at 80.5 sens is cheap, very very cheap.

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