Insas, Supercomnet and Perak Corporation

Insas Bhd (Rm 0.86)

With the completion of the 1 for 1 bonus issue by Inari by end of January 2017, the number of Inari share held by Insas is 402 million (20.7%). If I divide 402 million by the number of Insas share of 663 million, I get 0.6. That means for every Insas share there is 0.6 Inari share. At today's closing price of Rm 1.83 for Inari, the 0.6 share of Inari per Insas share alone is worth Rm 1.09.

Buying Insas at Rm 0.86, you get 0.6 share of Inari worth Rm 1.09 plus Insas's other assets and business. Very Cheap.

Insas last quarter (July-Sept) pre-tax profit is Rm 61.7 million, which includes a one-off gain of Rm 24.6 million from the disposal of some Inari shares. Earning per share for the quarter is 8.84 sens. NTA is Rm 2.13 a share.

Currently Insas is forming the major wave 3 of its mega wave (5). If I assumed the magnitude of major wave 3 is 1.618 times (fibonacci ratio) the magnitude of major wave 1, major wave 3 is likely to end at Rm 1.06. If it is 2.618 times, I get Rm 1.32 for its major wave 3 of (5). Don't get carried away.

Supercomnet Technologies Bhd (Rm 0.14)

Supercomnet is a Taiwanese Company in Sg. Petani, Kedah, that manufactures wires and cables for electrical and electronic devices for automotive industries and for medical equipment.

It is one of the very few penny stocks that reported positive earning for every single quarter in the last two years. Its P/E is about 10. Its last 3 quarterly earnings were 0.1 sen, 0.4 sen and 0.38 sen a share respectively. Its NTA is 17 sens.

Its share price has been moving sideway since 2007 forming a major A-B-C-D-E wave (2). It is possible that the current up-trend is the wave D of (2). The guess now is whether the wave D can reach the upper trend line at around 38 sens (+171%).

Please take note of the OBV breakout, which is a bullish sign.

Perak Corporation Bhd (Rm 1.94)

PRKCorp's chart looked interesting with double-bottom formation with its current price testing the neckline support. Strong OBV that is about to breakout.

The core businesses of PRKCorp  are property development; port and logistic segment of maritime services; and hospitality and tourism(hotel operation). Perak government (PKNP) is the major share holder with 52.27%.

Its last quarter earning is 10.68 sens a share with NTA at Rm 4.26. Very solid.


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