Wednesday, November 29, 2017

EG Industries Bhd (Rm 0.70)

EG reported an improved earning of 3.61 sens a share for its latest quarter. Its previous quarter earning was only 1.4 sens a share. Its share price opened with a gap up and closed the day gaining three sens. The gap at the bottom is usually being considered as a run away gap. Very likely EG is on the wave (iii) of its mega wave 5. Its wave (ii) has ended with a 100% retracement.


Tuesday, November 28, 2017

Inari and Insas

Inari Amertron Bhd (Rm 3.30)

Inari moved up strongly today with high volume of 18.7 million shares. It gained 17 sens (+5.4%) to close at Rm 3.30. It is on its way to complete its wave (vii).

Insas Bhd (Rm 0.975)

Insas with 402 million (19.91%) Inari shares in hand was actively traded today with 6.79 million shares changed hand but gained only 1.5 sens.

Technically Insas has one more down, the sub wave v to complete the wave c of wave (iv) before it can have its wave (v) run-up unless due to the upwards momentum this last wave is missing. Under this 'one wave missing' scenario Insas will continue to move higher tomorrow to form its wave (v). Once it crosses the Rm 1.00 level, it can be taken that sub-wave v is missing and Insas is already on its wave (v).

402 million Inari shares at Rm 3.30 is Rm 1.3266 billion. If this is divided by Insas's  632 million shares, it is Rm 2.10 for each Insas share.

Besides Inari, Insas has many other businesses.

From Insas latest quarterly report, its cash and deposits is Rm 606 million. Borrowing is Rm 290 million. Net cash is Rm 316 million, that is another 50 sens a share. Looking at the following price-comparison chart I cannot understand why should there be a price divergence between Inari and Insas starting July 2017.


Sunday, November 26, 2017

Weekly Update

Dow (23,557)

Dow is about to complete its sub-wave v and wave (v). This going to be the end of its major wave if  wave (v) has only five sub-waves and major wave 7 has only five wave.

If wave (v) has more than five sub-waves then Dow may continue to zig-zag higher  to form its sub-wave vi, vii, viii and ix. The 15% correction will have to wait.

FBMKLCI (1,717)

KLCI continues with its 15% correction that is going to drag until mid 2018 or beyond.

Insas Bhd (Rm 0.94)

For its quarter ending 30 September, Insas reported an earning of 5.95 sens a share and net assets of Rm 2.41 per share versus Inari's earning of 3.41 sens a share and net assets of  Rm 0.45. Insas declared a dividend of only 1 sen versus Inari's 2.3 sens.

Looking at the above data, I don't understand why the share price of Inari can be at Rm 3.02 whereas Insas can lag so far behind at Rm 0.94.

From the chart, Insas has one more drop to go to complete its wave (iv).

The next uptrend will be the wave (v) to complete its major wave 3 if major wave 3 has only five waves.

Priceworth International Bhd (Rm 0.245)

Pworth has completed the wave a of its sub-wave ii.  It may continue to move higher to complete its wave b of ii.


Sunday, November 19, 2017

Weekly Update

Dow (23,358)

Dow is forming its mini wave 8 of its sub wave v of wave (v) of major wave 7.

If mini wave 9 won't be missing, there will be more new record high for Dow before end of 2017.

FBMKLCI (1,721)

KLCI might have completed its sub wave i. If my reading is correct, CI might have started its 30 points rebound to form its sub-wave ii.

Dutaland Bhd (Rm 0.595)

Very likely Duta is forming its wave (iv).

EG Industries Bhd (Rm 0.67)

I might be wrong but I still think that EG has ended its major wave 4 in early October and has started forming its major wave 5.

EG ended Friday at Rm 0.67 which is only one sen above  the final support of Rm 0.66 for a 100% retracement for its wave (ii).

The moment EG goes below Rm 0.66, I will need to revise my wave count as shown above.


Wednesday, November 15, 2017

BJCorp, Inari and Insas

Berjaya Corporation Bhd (Rm 0.395)

As I have mentioned  before, very likely BJCorp has ended its 7 years of downtrend since 2010 at the end of 2016 when there is a divergence between the downtrend stock prices and uptrend OBVs.

Since early early 2017, BJCorp has completed its wave (i) and wave A of (ii). Currently it is forming its wave B of (ii).

Since starting of November, BJCorp has moved up strongly from 33 sens to 41 sens (+24%) with high volumes. It closed at 39.5 sens today. It is highly possible that BJCorp has completed its wave B, if it starts to move lower in the next few weeks from its current level.

Inari Amertron Bhd (Rm 2.83)

If Inari can start to move higher, that should be the mini wave 5 to end its wave (vii).

However if it continues to move lower, whether I like it or not, it has already completed its wave (vii) and has started to form its corrective wave (viii).

Insas Bhd (Rm 0.93)

Insas has punched through its lower support of 96 sens on Tuesday and it continued to move another 2 sens lower today to close at 93 sens. I have no choice except to revise my wave count slightly.

At this moment, Insas is forming the mini wave 3 of its sub-wave iii of its wave c of wave (iv) as shown.

Hopefully my long term reading for Insas is correct with target price of Rm 1.80 before end of 2018.


Monday, November 13, 2017

Malayan United Industries Bhd (Rm 0.215)

Mui dropped 5 sens (-19%) with 134 million shares traded on Monday after MY E.G. managing director Wong Thean Soon has denied that he is looking to take over Mui and he has disposed all his shareholdings in Mui.

My reading for Mui remained the same, it is currently forming its wave that has three waves.

After the completion of wave (ii) of B, there should be a wave (iii) to complete the B.  I expect the end of wave C of major wave 2 to go below 15 sens.


Sunday, November 12, 2017

Weekly Update

Crude Oil WTI (US$ 56.88)

Crude Oil (WTI) is about to complete its major wave 4 rebound. A possible ending point is the 64.00 level.

Dow (23,422)

Very likely Dow has ended its mini wave 7 and is undergoing its mini wave 8 correction.

FBMKLCI (1,742)

KLCI is forming the mini wave 5 of its sub wave i.

Inari Amertron Bhd (Rm 2.89)

Inari is about to start the mini wave 5 of its sub wave v of wave (vii).

Insas Bhd (Rm 0.98)

If Insas can move higher next week, that should be the minor wave iii of its mini wave 3 of sub-wave i.

One of the Director and major share holder (23.95%) of Insas, Dato' Sri Thong Kok Khee (TKK), after informing Bursa Maaysia on 20 October of his intention to deal in the securities of Insas during the closed period (pending the announcement of Insas's quarterly result), TKK sold a total of  2,224,600 shares of Insas Warrant-B from 27 October to 7 November in the open market. From his direct holding of 2,904,600 shares of Warrant-B, he sold 2,224,600 and he left with only 680,000 shares. But he is not selling any of his indirect holding of 83,414,970 shares of Warrant-B.

Why was he selling his Warrant-B continuously over 8 consecutive trading days? Only he can answer this question. Whatever reasons given by others are mere speculations.


Saturday, November 11, 2017

Mahathir's Bugis Remark

Just type in 'Mahathir Bugis Remarks', wah lau eh, all the following headlines just pop up

What exactly has Dr. Mahathir said ?

I searched and search and I found thus - Mahathir,"Ya lah, maybe it is because he is descended from Bugis Pirates."

Is it true that there were Bugis Pirates in those olden days ? 

From Wikipedia I found the following :

'The Bugis sailors of South Sulawesi were infamous as pirates who used to range as far west as Singapore and as far north as the Philippines in search of targets for piracy'

So we do have Bugis Pirates in the past. 

Is Mahathir saying all Bugis are pirates?

If say Ah Chong is a gangster and I just said,"Ya lah, maybe it is because he is descended from Chinese gangster." 

Am I saying all Chinese are gangster? Have I offended all the Chinese all over the world?


Wednesday, November 8, 2017

MUI and Dutaland

Malayan United Industries Bhd (Rm 0.245)

Mui surged with high volume today suggesting that its wave B has not been completed yet. Wave (iii) of B turned out to have five sub-waves. Today's up is the sub-wave iii of wave (iii).

Dutaland Bhd (Rm 0.625)

It is more likely that Duta's previous high is the wave (iii). The lat low is the wave A of its wave (iv) and it is forming its wave B at the moment.


Tuesday, November 7, 2017

Inari and Insas

Inari Amertron Bhd (Rm 2.91)

Inari is forming the mini wave 3 of its sub-wave v of its wave (vii). Very well behaved.

Insas Bhd (Rm 0.995)

Insas has also started its mini wave 3 formation but not as dynamic as Inari even though it has 401 million shares of Inari that has a current market value of  Rm1.167  billion. If it is divided by 632 million Insas share, it is Rm 1.84 per Insas share.

Insas's latest quarterly earning was 5.24 sens a share with net assets at Rm 2.34 per share vs Inari's 3.31 sens a share with net assets per share of Rm 0.44. In my opinion Insas's share price should move in tandem with that of Inari.

If I compare the price movement of Insas with respect to Inari in the last two years as shown in the following chart

In fact the price movement of Insas was closely following that of Inari until end of June 2017 when Insas has gained about 37% compared to Inari's 40% over a 20 months period.

But since then, in the last 4 months, their prices started to move in an opposite direction. Inari gained another 54% reaching 94% over 24 months, whereas Insas dropped 17%  reducing its gain to only 20% for 24 months period.

If only Insas was able to continue to move in tandem with Inari in the last 4 months with an aggregated gain of say 90%, Insas would have closed at Rm 1.60 today.


Saturday, November 4, 2017

Weekly Update

Dow (23,539)

Dow closed the week with another new record high. Minor wave v of mini wave 7 is in progress. If the downward momentum is too great, mini wave 9 could be missing.

FBMKLCI (1,740)

KLCI is forming the mini wave 5 of its sub-wave i.

Dutaland Bhd (Rm 0.615)

A 4 sens (6.1%) drop on Friday has changed my earlier running a-b-c wave (iv) scenario to an expanding triangle a-b-c wave (iv) for Duta.

From the 30-minute interval chart, Duta has to start to move higher next Monday to form its wave (v).

With last week's sharp drop, another possibility for Duta has developed. There is a possibility that the 73 sens high set on October 30 is the end of its major wave 3. Duta is currently forming its major wave 4.

There is still a major wave 5 to go after the major wave 4 correction. Nothing to worry.

There is another bearish scenario as shown below, which I think is highly unlikely as the conditional sale and purchase agreement for the disposal of 11,579.31 hectares of Duta's plantation for cash of Rm750 million were signed on 30 October. With this disposal there will be 88 sens of cash per Duta share.

Only under one condition Duta can go back to 40 sens and below - the sale and purchase agreement is aborted.

Inari Amertron Bhd (Rm 2.79)

Inari is expected to move higher next week to continue with its sub-wave v formation.

Insas Bhd (Rm 0.97)

If Insas can start to move higher next week, then its current pullback is a 100% retracement mini wave 2.

And if Insas continues to move lower next week, then the current drop is the mini wave 3 of its wave c of wave (iv). Insas may go to a low of 90 sens.

Malayan United Industries Bhd (Rm 0.21)

Mui has a strong rebound last week. It went to an intra-day high of 24 sens.

It is likely that the 24 sens high marked the end of its wave B. Mui is expected to move lower to complete the wave C of its major wave 2. If it goes for 100% retracement, Mui might return to the 12 sens level.