I hope I am wrong, but if I am right, Dow is about to complete the wave ii of its wave E of its major wave 8. Wave iii is likely to have 5 or more sub-waves.
FBMKLCI (1,638)
My reading for KLCI remains the same, it is likely to move south in tandem with the US market.
Pinehill Pacific Bhd (Rm 0.325)
Both Pinepac and United Plantation announced on 11 June (Tuesday) that the Perak State Authority has approved the acquisition of 8,999.13 acres of land by United Plantation from three wholly-owned subsidiaries of Pinepac. Barring unforeseen circumstances both parties expect the deal to be completed before September 2019.
Pinepac will be getting about Rm413 million from the land disposal, that is about Rm2.75 per share of Pinepac.
In its 2018 annual report, the book value for these lands is Rm244 million. Its net assets will increase by Rm169 million or increase by Rm1.13 a share to Rm1.60 a share. Its earning for quarter ending 30th September 2019 will be more than Rm1.00 a share.
But the funny thing is Pinepac share price continued to stay around 32 sens level and closed at 32.5 sens on Friday. What's wrong?
From the chart, if Pinepac has completed its wave (ii) at the end of May, it has formed two small 'up' waves so far, if it can have another small minor wave 'up' to form a five-wave mini wave 1, then the next pullback is likely to be the mini wave 2. Pinepac is likely to move higher strongly after that to complete its wave (iii).
But if Pinepac is unable to have another small 'up' wave next week, the Wednesday intra-day high of 34.5 sens recorded after the announcement could be the wave b. Next two weeks is likely to see the formation of its wave c to end its wave (ii).
Hopefully Dow can move lower gradually in a not so damaging manner to give Pinepac a chance to form its wave (iii) upon receiving its Rm413 million from United Plantation.
Malayan United Industries Bhd (Rm0.24)
Mui on 13 December 2018 announced that Tan Sri Dato' Khoo Kay Peng retired as Mui Executive Chairman and handed over the position to his 46 years old son Andrew Khoo Boo Yeow.
On 30 April 2019, Mui announced the appointment of N.M. Rothschild & Sons Limited by Corus Hotel Limited, an indirect wholly owned subsidiary of Mui, as financial advisor in relation to the sale of Corus Hotel Hyde Park, London.
In 2014, it was reported by TheEdge that Mui was seeking to divest Corus Hotel Hyde Park for 200 million pound. At current exchange rate of Rm5.30 to 1 pound, in Ringgit it is 1.06 billion.
From its long-term chart, Mui has been moving side way since 2008. on Friday, it share price closed at 24 sens, resting exactly on its upper resistance line that it had failed to break in 2014 and 2017. If Mui can move above the resistance line, most likely major wave 3 is on the way.
But if Mui is unable to break this upper trend line, Mui is forming a ABCDE-X-ABC major wave 2. It needs more time to sell the hotel.
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