LCTH and Insas

LCTH Corporation Bhd (Rm0.715)

Finally LCTH managed to move and close above the 70 sens level. My projected level for wave (v) is about 82 sens. If that is the end of major wave 3, it may take another 4 to 5 months for its major wave 4 consolidation, another frustrating period.

However, if wave (v) is able to move much higher than 82 sens, then major wave 3 is likely to have 9 waves and it may end above Rm 1.00.

Insas Bhd (Rm0.815)

Refer to the following statement from Insas's 2014 annual report,

If I divide Rm1.75 billion by the total number of Inari share, 727.39 million, the corresponding share price is Rm2.40. The current share price of Inari is Rm 3.47, that will give a market capitalisation of Rm2.52 billion or an unrealized evaluation gain of Rm0.88 a share.

I expect Inari to hit Rm4.00 by end of 2015. That will give a market capitalisation of Rm2.91 billion and an unrealized evaluation gain of Rm1.04 a share. If I add this to its net assets of Rm1.91 a share, I will get Rm2.95 a share.

Insas closed at Rm0.815 today. With a quarterly earning of 5.07 sens a share, this stock looked cheap. It has a healthy balance sheet with a net cash of Rm194 million.

Looking at its long-term chart, it has a major wave 5 target of Rm2.00 by first half of 2016. I hope I am right. At this moment I am assuming that it has completed its major wave 4 and it has started its major wave 5. First, let's see whether this assumption is correct.

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Insas Bhd

After forming a double-bottom in 2009, Insas has been moving in an up-trend and has completed its major waves 1-2-3-4 by August 2015. Very likely it has started its major wave 5, which may take another 12 to 15 months to complete.

Since its low of 60 sens in August 2015, Insas has completed its sub-wave i-ii and mini wave 1-2. It gained 4.5 sen (+6%) to 79 sens on Friday with high volume. Very likely this is the first candlestick for its mini wave 3.

Its latest quarter earning ending June 2015 is 5.07 sens a share with net assets of Rm1.91 a share.

In its 2014 annual report, its CEO's statement mentioned the following :

" ..... our shares in Inari Amertron including warrants is Rm529 million compared to our book value of Rm119 million (including share of associate profits and reserves), giving us an unrealised revaluation gain of Rm410 million, or Rm0.60 per share."

Inari is Insas's associate company (29.4%).

In the first 6 months of 2015, its CEO, Thong Kok Khee, through subscription of Redeemable Preference Share and through acquisition in the open market (at an average price of about 90 sens), he has increased his holding in Insas from 23.76% to 43.59%. However, since mid-September, he has slowly reduced his holding to 34.65%. He may need to further reduce his holding to below 33%, the trigger point for mandatory takeover offer, if he has no interest to take Insas into private.


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Trojan Horse

"In radical Islamist countries honour killings, beheadings, stoning's, ............ go unreported daily and are dismissed as culturally ingrained. ............ Yet a staged picture of a drowned baby on a beach sparks a world outcry ?"

"Someone or some organisation is pulling some strings here is what I see." .........

Click 'Trojan Horse' for the article written by Jim Croft.

In Birmingham UK, there was alleged plot to impose Islamism in UK school.

Click 'Trojan Horse Plot' for more.


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Dow - Broad based rally on Thursday

Dow (17,141)

With expectations of  more monetary easing from ECB and unlikely rate hike by the Federal Reserve, Dow gained 217 points (+1.28%) on Thursday.

Hopefully mini wave 2 of sub-wave iii has ended and this is the starting of mini wave 3.

FBMKLCI (1,713)

Hopefully KLCI can move in tandem with the Dow.

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Oil & Gas

Crude Oil WTI (US$46.34)

Crude Oil (WTI) dropped to US$46.34 on Wednesday morning. It is likely to go lower in the next few trading sessions to around US$43.00 level to complete the wave c of its wave ii before resuming its up-trend to form its sub-wave iii. I expect this sub-wave iii to end at around US$60.00 level.

Perisai Petroleum Teknologi (Rm 0.355)

In tandem with the crude oil price, oil and gas related stocks of Bursa Malaysia are likely to move lower in the next few trading sessions.

Perisai is forming its wave c of ii currently before its next surge.

Alam Maritim Resources Bhd (Rm 0.51)

Similarly Alam Maritim is expected to complete its wave c of ii in the next few trading sessions.

Bumi Armada Bhd (Rm 0.995)

Armada's wave form is slightly different. It has formed 5 sub-waves in an up-trend channel. It is likely to drop lower to Rm 0.90 level to complete its sub-wave ii.

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Sigh !!!

Khairuddin and Matthias Chang were finally charged under Section 124L of the Penal Code for attempted sabotage of the economy and the financial and the banking sectors, which carry a jail term of up to 15 years upon conviction.

They were charged for making police reports in Malaysia, Singapore, Switzerland, France and Hong Kong against 1MDB.

Some criminal and constitutional lawyers said that it won't be easy for the prosecution to prove that lodging police reports over alleged wrongdoing in 1MDB is an attempt to sabotage the economy.

Click 'Lawyers say tough to prove' for the article.

However, if ultimately the prosecutor is able to win the case and put them to jail, then in future any financial analyst, economist, fund managers, investor, columnist etc etc can be put to jail for saying anythings that have a negative impact on economy, finance or banking.

Then a sentence such as 'the assets bubble is likely to burst in 2017' and what Marc Faber has said, 'stocks are about to fall 40% - at least' could be deemed as an attempt to sabotage the economy and those involved could be jailed up to 15 years upon conviction.

Or am I too imaginative ?

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Dow - It is not forming a-b-c-d-e

Dow (17,050)

Dow added another 138 point on Thursday and pulled further away from the upper channel line. It appeared that my previous assumption that Dow is forming a a-b-c-d-e sub-wave ii is wrong. Its sub-wave iii has started.

FBMKLCI (1,692)

If Dow is not forming a-b-c-d-e, there is a possibility that KLCI may not form a-b-c-d-e too.

Then KLCI may move in tandem with Dow by breaking its upper channel line in the next few days and has its sub-wave iii.

Perisai Petroleum Technologi (Rm 0.365)

I found One petroleum stock rather interesting. Perisai has an OBV break out while its share price is almost at the bottom.

Is it forming a (i)-(ii), i-ii wave?

For its quarter ending 30th June, earning per share is 0.13 sen. Net assets per share is Rm 1.07. Its borrowing is rather heavy at about Rm 1.2 billion.


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