KSL. ASB and PM Corp

KSL Holdings Bhd (Rm 3.39)

Mini-wave 5 in progress with declining volume, a sign of losing its momentum. The fifth wave is always unpredictable. If sub-wave iii has only 5 waves, then mini-wave 5 will mark the end of sub-wave iii. Since sub-wave ii is long duration and shallow, sub-wave iv can be short duration with sharp pullback. But ultimately it will reach Rm 5 or Rm 6, that's what is in my mind.

Advance Synergy Bhd ( Rm 0.23)

It is possible that ASB has started its wave (v).

 

The green candlestick today can be the starting of sub-wave iii of wave (v).

Pan Malaysia Corporation Bhd (Rm 0.25)

PM Corp is forming the wave (i) of  its major wave 5 currently.

It has completed its sub-wave i and ii. It is likely that sub-wave iii of wave (i) has started.

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Golden Pharos, KSL Holdings and Farms Best

Golden Pharos Bhd (Rm 0.995)

I expect GPharos to move lower to around 80 sens to complete the wave c of its wave (iv) as shown below.

In the last two trading sessions, it appeared to me that its price was being supported at its current level. If the support is strong enough to keep its price at its current level, another possible wave count is as shown below, where GPharos is forming its sub-wave iv. There will be one more surge to complete the sub-wave v.

KSL Holdings Bhd (Rm 3.08)

If I am right, the current pullback is the mini wave 4 correction.

Farms Best Bhd (Rm 0.695)

This is one of my most frustrating stocks. Its performance to date in term of price appreciation is the worst amongst the stocks that I have.

In January 2014, Farms Best has announced a merger proposal with SHH Malaysia that has the same type of poultry business like Farms Best but is operating in China. Click 'Proposed Merger' for details

If I don't bother about the proposal and assuming what is happening and what is going to happen will be reflected in the chart pattern, then I have to say Farms Best looks bullish at this moment.

Since September 2013, Farms Best has formed an overlapping waves (i), (ii), (iii), (iv) and (v) to complete its major wave 1. I personally termed this formation as 3 soldiers. The time to move into stocks with this type of chart formation is when it has completed its wave 2.

Below are some examples of charts with 3 soldiers formation.

Let's see whether Farms Best can be another classical case for 3 soldiers.

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Dow - Nothing to worry

Dow (16,553)

If my wave count is correct, Dow has not reach its crucial possible turning point at end of wave (xiii) of its major wave (5) of mega wave 1.

The current correction is only the sub-wave iv of its wave (xi). We still have sub-wave v, wave (xii) and wave (xiii) in front. The only question now is whether sub-wave iv has ended.

I expect Dow to complete the crucial wave (xiii) before end of 2015. Watch out for that. If that also marked the end of major wave (5) and mega wave 1, under the worst case scenario, the mega wave 2 pullback can go all the way to March 2009's low of 6547 for a 100% retracement.

I am talking about mega wave 1 and 2 of super wave VII.

Bursa Malaysia FBMKLCI (1,839)

FBMKLCI  dropped in tandem with Dow. It dropped 28 point (-1.5%) last Friday. From the long term chart, FBMKLCI is forming it major wave 3 currently.

So far FBMKLCI has completed wave (i), (ii), (iii), (iv) and sub-wave i, ii and iii. Sub-wave iv in progress.

I expect sub-wave iv to reach a possible low of 1,800 before the next sub-wave v starts to run.

Global Oriental Bhd (Rm 1.04)

Only yesterday, while going through my older posts, I discovered that I have over looked some comments/messages. James asked about GOB in April when GOB was forming the wave (i) of its major wave 3.

After touching a high of Rm 1.17 in April, GOB has been moving side way to form its wave (ii). It is forming its wave c of wave (ii) at this moment. GOB is likely to reach 95 sens to complete its wave (ii) before starting its dynamic wave (iii) of 3 of (3).

Priceworth International Bhd (Rm 0.20)

Mr. Phuah has made some comments on the Rm 50 million unsecured redeemable convertible notes (RCN)

Uuder PWorth 'Multiple Proposals', one of the proposal is to issue Rm 50 million of RCN comprising 5 equal tranches of Rm 10 million each. Each tranche is divided into many sub-tranches that can be issued from time to time.

The conversion price for RCN into PWorth shares is depended on when each tranche subscription agreement is signed.

The conversion price is either equal to 130% of the 'volume weighted average price' for 45 business days prior to the date signing the RCN subscription agreement, or equal to 80% of the 'average price of 3 consecutive days' within that 45 days.

I think Tranche 1 (Rm 10 million) RCN subscription agreement was signed on 5th March. On 28 Feb. PWorth closed at 18 sens and on 3 and 4 of March, the closing price was 17.5 sens. So 80% of 3 days average is 14.1 sens.

Tranche 2 RCN subscription agreement must have been signed after PWorth set its record low of 16 sens on 6th, 9th and 10th of June (Or they purposely pushed the priced to 16 sens for 3 days, exactly 3 days). So 80% of 3 days average price of 16 sens is 12.8 sens.

The 71 million shares under tranche 1 and 15.6 million shares from part of tranche 2 must have been sold above 20 sens and have been absorbed (Who are the big buyers ?). Volume traded from 23rd June to 8th August totaled 382 million (there must be a lot of day traders).

There are still 62.5 million share converted at 12.8 sens not yet listed.

When are they going to sign and issue tranche 3, 4 and 5 and at what conversion price, I don't know. These are big fishes games. Are they going to push the price down to 16 sens again (wave (ii) 100% retracement) and sign the agreement or are they going to sign at 20 sens conversion and push the price to 30 sens to unload ? I also don't know. But I believe in chart reading and firmly believe (have to lah) whatever they are doing and are going to do will be reflected in the chart. So I go by the chart. 

And of course I can be wrong.


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Advance Synergy Bhd

ASB gained 1 sen to close at 22 sens today. Is that the first candlestick for its sub-wave iii of wave (v) ?

Looking at the longer term chart, ASB is currently forming the wave (v) of major wave 1.

For 3 months ending 31/3/2014, its earning per share is negative 0.41 sen and net assets per share is 85 sens. It has cash Rm 116 millions and borrowing Rm 74 millions. Its net cash per share is 8 sens.

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Dow - Sub-wave iv of wave (xi)

Dow (16,429)

Dow Jones Industrial Average gained 42 points after 3 hours of trading on Wednesday morning.

Dow dropped 140 points (-0.8%) to 16,429 on Tuesday to form the mini wave vii of its sub-wave iv of wave (xi). The closing level is about 23 points below the supporting level of 16,452, it is acceptable to me. But I am not sure whether sub-wave iv has ended or that is only the wave a of sub-wave iv. There is nothing to worry at this moment until such time when Dow has formed its wave (xiii).

Priceworth International Bhd (Rm 0.205)

It is likely that PWorth has completed its wave (ii). 

Advance Synergy Bhd (Rm 0.21)

ASB is about to complete the sub-wave ii of its wave (v). If it can move higher tomorrow, that should be the sub-wave iii of wave (v).

KSL Holdings Bhd (Rm 3.24)

KSL is forming its minor wave ix today. Is that the end of mini wave 3 ?

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Pan Malaysia Corporation Bhd & KSL Holdings Bhd

Pan Malaysia Corporation Bhd (Rm0.255)

PMCorp gained 3 sens (+13%) to close at 25.5 sen. That should be the starting of the major wave 5 of its mega wave (3).

For quarter ending 31/3/2014, its earning per share is 0.24 sen, net assets per share is 49 sens. It has zero borrowing and is having Rm 133 million cash. Cash per share is 19 sens. At 25.5 sens it still looked cheap.

KSL Holdings Bhd (Rm 3.15)

KSL rebounded strongly today to close at Rm 3.15, which is 5 sens below its previous high. If it break Rm 3.20 and moves higher tomorrow, then minor wave ix is in progress. However, if it moves lower tomorrow then it is forming the wave c of its minor wave viii of its mini wave 3 of sub-wave iii.

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Weekend summary

Dow (16,493)

Dow dropped a total of 387 points (-2.3%) on the last two trading days to close the week at 16,493 level, only 41 points above the theoretical support level of 16,452, which is the top of sub-wave i.

Has Dow completed its sub-wave iv correction or it is only the wave a of sub-wave iv ? Or is it something else ? Hopefully Dow can reveal something by end of next week.

KSL Holdings Bhd (Rm 3.16)

KSL continued to form its dynamic minor wave vii. Still a long way to go as it has to complete its minor wave viii and ix to form its mini wave 3. After that there are mini wave 4 and 5 to complete its sub-wave iii  and then sub-wave iv and v and so on ........ still a long way to go.

Golden Pharos Bhd (Rm 1.03)

At this moment it appeared to me that it is more likely that GPharos is forming the wave b of  its wave (iv). I expect GPharos to move lower next week and ultimately to move to the Rm 0.80 level.

However, it may be less likely, but it remained possible that the last two days of consolidation is the mini wave 2 of its wave (v). If this is so, then next week it will have a strong run to form the mini wave 3 of its wave (v).

Priceworth International Bhd (Rm 0.21)

Watch out for this stock, it is about to complete its wave (ii). The next wave is wave (iii), it is expected to be dynamic with high volume. 

Its log production figure for June has dropped from its May's figure of 4,870 cu.m to only 550 cu.m. There is no explanation for the drop in production.

Sumatec Resources Bhd (Rm 0.465)

One of my friends asked me about my reading on Sumatec. My comment is - It is a very well behaved stock. From its September 2011's bottom of 15.5 sens, it has completed its major wave 1, 2, 3 and 4 by end of April 2014.

 

Since the beginning of May 2014, it has completed its wave (i), (ii) and sub-wave i, ii, iii and iv. It is currently forming its sub-wave v.

Malaysia Steel Works (KL) Bhd (Rm 1.04)

Over the weekend another friend of mine asked me to have a look at Masteel.

Wow, very bullish, it is heading for Rm 1.40. Looking at the 20-year chart, after completing its mega wave (1) in 2008, it has been moving side way to form its mega wave (2) that takes the form of a 3-3-3-3-3 ABCDE Contracting or Symmetrical Triangles. It has so far completed a 3 waves down A, a 3 waves up B and another 3 waves down C. It is on its way to complete its 3 waves up D.

 

For its wave D, it has  just completed its wave 1-2 and has started its wave 3 with an OBV breakout. An OBV breakout always precede a price breakout. So it is expected to break Rm 1.16 and then proceed to Rm 1.40 to completed its wave D.

It reported an earning of 3.29 sens per share for its 1st quarter ending 31 March 2014. Net assets per share is Rm 2.53. A solid stock.

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