Bursa Malaysia - Property Index

The long-term wave count for property index remains the same, it is forming its sub-wave v.

So far the property index has completed the mini-wave 1 of its sub-wave v and it is on its way to complete its mini-wave 2. Property stocks are likely to take a rest until the completion of the mini-wave 2.

FACB Industries Incorporated (Rm 1.62)

Facb performed very well today, it gained 15 sens (10%) to close at Rm 1.62 with high volume. It is forming its mini-wave 7 of its wave (vii). It is the 7 of (vii), very dynamic.

Don't forget its cash backing per share is Rm 1.76, not to mention its other assets and business.


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Dow - Possible turning point at wave (xiii)

Dow ended lower on Friday. If Dow continues to move lower next week then it is possible that wave d of (xii) has ended and Dow is going down to complete its wave e and wave (xii).

Then the next wave up is wave (xiii) and that can be a possible point for the major wave (5) to end if wave (ix) at the end of December 2013 is not the turning point.

If there is a major wave (6), it will be a 15% pullback and if there is no major wave (6) and the major wave (5) is also the end of mega wave 1, then be prepared for a plunge of 35% if you are lucky. The worst can be a 60% drop if Dow goes all the way back to March 2009's low of 6,547.

Latitude Tree Holdings Bhd (Rm3.08)

Latitude Tree put on 33 sens or 12% on Friday with high volume. It opened with a gap of 3 sens. It appeared to me that its wave 7 has started.

From its low of 60 sens in November 2012, Latitude Tree has gained 400% to reach Rm 3.08 within 17 months.

Before end of this month, Latitude Tree will have to announce its 3rd Quarter (January to March 2014) earning. It reported very strong earnings of 15.02 sens and 19.52 sens a share for its 1st Quarter (June to September 2013) and 2nd Quarter (October to December 2013) respectively. Judging by its price movement on Friday, it appeared to me that it is going to report another strong earning for its 3rd Quarter.

Sad to say, I have sold my last Latitude Tree upon reaching wave 5 :(


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Dow - Super wave VII

It appeared to me that the October 2007's peak of 14,164 is wave B and the March 2009's low of 6,547 is wave C of super wave VI as shown below.

 

Courtesy of stockcharts.com for the base chart

Since March 2009, Dow has been forming its super wave VII and its is about to complete its major wave (5) of its mega wave 1.

If wave (ix) is not the end of its major wave (5), the coming wave (xiii) is another possible point for Dow to end its major wave (5).

And then the next crucial question is whether that is also the end of its mega wave 1 unless mega wave 1 has 9 major waves instead of 5.

The Problem.

 

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Dow - Wave (xii) formation ?

DOW

The 500 points rebound over 6 trading sessions a week ago has thrown out my wave c with 5 mini-waves and instead I have a wave c with 3 mini-waves. It appeared that Dow is heading for an expanding 3-3-3-3-3, a-b-c-d-e wave (xii) formation as shown below.

FBMKLCI

My wave count for FBMKLCI remained the same, sub-wave iii in progress.

FACB Industries Incorporated (Rm1.43)

My wave count for FACB is as shown below.

 

It is forming the mini wave 5 of its wave (vii).

 

FACB gained 12 sens (9%) with very high volume on Friday forming the mini wave 5.

It has a very healthy balance sheet with Rm 147 million cash.

 It has zero borrowing.

Since FACB has only 84 millions shares, that gives the stock a cash backing of Rm 1.75 per share before taking into consideration its other business operations in Malaysia, China and Hong Kong.



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MH307 - Reality Check

"Flight 370 most likely did not crash, it was almost certainly taken over (possibly by remote control) and flown to a destination with all passengers alive and the aircraft in one piece."

Click 'Flight 370 reality check' for another interesting article on MH370.



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Farms Best - A stock that refused to fly

Farms Best is one of my stocks that performed badly in term of price appreciation. In the last 4 to 5 months its price appreciated by about 13% from 62 sens to 70 sens (until last Tuesday), a miserable 8 sens over 4-5 months. However it added 4 sens in the last two days to 74 sens with high volume. Is this the starting of its next run-up ?

For 5 years, Farms Best has been moving up and down within an uptrend channel forming its A-B-C-D-E mega wave (2) as shown above.

Assuming it has completed its mega wave (2) by September 2013, it proceeded to complete its wave (i)-(ii) by early March 2014 and completed its sub-wave i-ii last week.

If I am right, its sub-wave iii has started and it should continue to move higher with good volumes in the next few trading days. Hopefully it can break its upper resistance line at around Rm 1.20

However, if I am wrong and if its price starts to move lower again, then the E of its mega wave (2) has not been completed yet, as shown below. Wave E may go below 50 sens.

Its 2013 annual earning is 7.33 sens a share (P/E is about 10). Its Net Assets is Rm 2.66 per share. It has cash of about Rm 50 millions, but its bank borrowings is about Rm 250 millions.

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Bursa Malaysia - Property

As I have mentioned previously, the property index is currently forming its sub-wave v. I am looking at 1700 level.

From February low of about 1240 level, there is a potential gain of 37%. So far it has gained 17%.

 

But some of the property stocks have gained more than 100%. Such as Asiapac, it gained 114% in less than 5 months.

PJ Development WC gained 140% within the same period.

Land and General gained 68% also within 5 months.

 

One of my favorite, Mui Property so far has added 35% in 4 months. Its wave count is bullish. The next up will be its sub-wave iii of wave (iii) of major wave 3.

One of its properties that is not fully valued is its 507 hectares of yet to be developed piece of land at Port Dickson in Bandar Springhill. In its latest annual report, the land is valued at Rm 2.50 per sq. ft.

In its last quarterly reports, its Net Assets per share is 34 sens. However if I valued this 507 hectares at Rm 15 per sq. ft., its net assets per share will go up to Rm 1.29 a share. At yesterday closing price of 23 sens, it looked cheap. Another good point is, it has zero borrowing and has 43 millions of cash.


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