LCTH Corporation Bhd

LCTH Corporation (Rm 0.45)

A comparatively smaller company with a share capital of Rm 72 million consisting of 360 million shares with face value of 20 sens.

Its main operation covers the manufacturing and sub-assembly of precision plastic parts and componants for both domestic and international markets.

LCTH fabricate precision moulds and dies for industries in automotive, medical. electrical & electronics and telecommunication.

Its last quarterly earning for quarter ending 31st December, 2014 was 1.65 sens which is 129% higher than its previous quarter of 0.72 sens. Net assets per share is 52 sens. It has a cash per share of 23 sens with negligible borrowing. A small healthy company with an up-trend earning.

Its chart looks bullish with strong OBV. It is at the tail end of its wave (i) of major wave 3 if wave (i) has only 5 waves.

If its next pullback is of a lower degree, a sub-wave vi correction, then it is going for 9 waves for its wave (i).

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Weekly update

Dow (17,763)

My reading for Dow remained the same. Dow is either forming the wave e of (xiv). (Very likely it is an over-shot e)

Or it is forming the sub-wave iii. Currently it is forming the mini wave 3 of sub-wave iii.

FBMKLCI (1,834)

KLCI continues with the mini wave 5 of its sub-wave i. It is still a long way to go to complete its major wave 5 by early 2017.

RGB International Bhd (Rm 0.165)

Over the weekend, one of my friend asked me to have a look at RGB, previously known as Dreamgate Corporation Bhd.

RGB is a well known premier supplier of gaming machines in Asia. Its operation covers the manufacturing and sale of electronic gaming machines and equipments, Machines concession, technical support and management, equity investment and management of boutique casino, hotels and clubs with gaming licenses. RGB has over 20 years of experience with operation covering Malaysia, Singapore, Cambodia, Lao, Vietnam, Macau, Philippines and Japan.

Its latest quarter earning per share is 0.25 sen with 2014 earning totaled 1.59 sens a share. Net assets per share is only 9 sens with net borrowing of about Rm 9 millions. Fundamentally I won't say is strong but technically its chart looked good at this moment.

If my reading is correct, at this moment, it is at its wave (v) of major wave 3. In September 2014 there was a possibility that the wave (v) of 3 has been completed. But with the side way movement in the last six months, it appeared to me that its September high is only the sub-wave i of its wave (v).

By December 2014 it has completed its sub-wave ii.

It is possible that it is at the beginning of the mini wave 3 of its sub-wave iii especially if it can go above the 18 sens level within the next few days. I hope the strong candlestick with high volume on Thursday is not a one day affair.

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A long and interesting article from The New York Times

Courtesy of www.themalaymailonline.com

It is all about making connections and making friends.

"Success 

is attributable to being 

at the right place 

and right time 

and meeting the right people 

coupled 

with a trusting relationship."

For the article click 'The New York Times - Towers of Secrecy'.

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Dow - Has wave (xiv) ended ?

Dow (17,976)

Dow added 263 points (+1.49%) on Monday. With this strong candlestick, there is a possibility that wave e as well as wave (xiv) have ended. Wave e is known to be unpredictable, it can fall short and it can also overshoot.

If this is the 'fall short' case, then Dow is on its wave (xv) run-up.

It is also possible that Dow has yet to complete its wave (xiv). The strong candlestick could be a minor wave ii rebound,

Or it could be the wave c of mini wave 2.

Short term trend is hard to predict but as long as Dow has not reached the end of its wave (xvii), which is the next possible major turning point, I need not worry about a 'market free fall' at the moment.


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Berjaya Corporation Bhd

Berjaya Corporation Bhd (Rm 0.44)

BJCorp has reported an earning per share of 19.64 sens for its latest quarter ending 31st January 2015 over the weekend. The sharp improvement is mainly due to an 'one-off' item under 'Investment related income' of Rm 1.053 billion due to the divestment of BAuto shares and the re-measurement of fair value of its remaining 36.74% equity interest in BAuto.

Its profit from normal operation has in fact dropped 23% from 227 million to 174 million for the same corresponding period.

The main question now is whether BJ Corp is in its wave 4 rebound.

Or it is still remaining in its wave 3.

Or it is forming something else other than the two options mentioned ?

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Email from London - Mr. Ferrero

Over the last Chinese New Year, Allan and I hosted a dinner party and one of our guests brought us a box of Ferrer Rocher chocolates. So, sometimes after dinner, Allan and I would take one each and sometimes 2 if we do not have desserts.

Sometimes last week, over our Ferrero Rocher, we were sharing about what a luxury item Ferrero Rocher was when we were growing up. Surprisingly, we could still remember our first Ferrero Rocher experience. 

I told him about Auntie Geok Hui who came to our house with a box when we were staying at Berkerly Garden in Klang and it was then the most delicious chocolate I have ever eaten. It was also expensive, Rm12.90 per box of 16, stacked up in 2 layers of eight. Then, it went up to Rm16.90 and then Rm18.90. Funny how these facts still stick in the deep recesses on one's mind.

Allan said that his family doesn't spend money on stuff like this and his first Ferrer Rocher was given to him by a fat schoolmate when they went for their sports competition in early secondary school. Allan was representing his school for long jump and his friend for shot putt. So, while waiting foe their turns, his friend took out a pack of 3 Ferrero Rocher and gave him one. It was, to him, the most delicious chocolate that he has ever eaten.

And then yesterday, while reading an old edition of the Economist, on the Obituary section, I read that Mr. Michele Merrero (I didn't know there is such a person) died on Valentine's Day, age 89.

He is the inventor of Ferrero Rocher, and also Nutella, Tic Tac and all the Kinder chocolates, like Happy Hippo.

Reading his obituary, it felt as though his story is one that comes out of a story book. Even his death on Valentine's day seemed approprate. Chocolate maker dies on Valentine's Day. 

(Click ' The Economist - Obituary' for the article).

Anyway, he spent 5 years figuring how to bend the wafer in the Ferrero Rocher. 

He started selling chocolate in small packages, even individually, instead of boxes because it was not affordable in post war Germany but he felt that everyone should have some sweetness in their life even during such bleak times. 

He even created the egg-shaped Kinder surprise (chocolate egg with a toy inside) so that children can have Easter everyday. 

He was so good  to his employees that they never went on strike. When his factory was flooded in 1994, they came back over Christmas to help him clean up so that factory could start after only 15 days. He kept his company private and took his time to grow his company however he wanted to. 

I showed Allan the article yesterday after dinner, over our Ferrero Rocher. One day when my little boy is old enough to eat Ferrero Rocher and old enough to understand, I will tell him the story of this remarkable man that hardly anyone else outside of Italy knew about.

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Dow - wave e of (xiv)

Dow (17,718)

Dow dropped 292 points (-1.6%) to close at 17,718 on Wednesday, quite a sharp drop. With a 7-wave mini-wave 2 rebound completed followed by this sharp drop, Dow left with the option of completing its mini wave 3 of e of (xiv)

If wave (xiv) can end around 17,300 level, there is another 400 points to go before Dow can start its wave (xv).


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