Priceworth International Bhd (Rm 0.31)

Pworth was actively traded on Monday and Tuesday with volume of 158 million and 160 million respectively. It added 4 sens on Monday but closed unchanged on Tuesday at 31 sens.

Since it has move higher than its wave (iii) high of 29 sens and the correction from mid October to early December is of a lower degree, I have revised my wave count for Pworth as shown below.

From Mid October to early December, Pworth was forming the sub-wave i and ii of its wave (v). Since December it has been forming the sub-wave iii of wave (v). At this moment it is at the tail-end of its mini wave 3 of sub-wave iii. 

I expect Pworth to have another surge on Wednesday to complete its small v of minor (v) of mini wave 3 if this mini wave 3 has only five minor waves. However if it has nine minor waves then Pworth will continue to move higher to complete this mini wave 3 at a higher level.

Remember the article appeared in 'The Edge' in June 2017

Pworth forecasts a Rm100 million net profit for FY18 with timber production at 9.3 million cu.m. That means the monthly timber production is about 775,000 cu.m a month when Pworth starts to extract timber from the 101,161 hectares of forest reserve in Trus Madi, Sabah.

The latest monthly timber production figure announced by Pworth was 18,475 cu.m. for the month of November 2017. Has Pworth started to extract timber from Trus Madi ?

I hope it is not 'Terus Mati'.

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USD/MYR - At best Rm 3.85 to 1 USD

Looking at the daily chart, I would say, at best, the Malaysian ringgit can strengthen to around 3.85 to complete the wave 2 before weaken to above 4.50 to complete the wave 3 of B.

If my wave count for USD/MYR is correct, you can guess who is going to win the coming GE14.

Before the 1997 Asian Currency Crisis, for many years USD/MYR was able to stay around Rm 2.6 to 1 USD. I expect another 'shakeout' to complete the wave 3 of B in 2018 before the ringgit can slowly strengthen to Rm 2.6 to 1 USD again after a few years.

Based on the USD/MYR wave count, KLCI is more likely to form the wave 3 of B in tandem with the USD/MYR chart.

The 2nd scenario of major wave 5 formation for KLCI that I mentioned yesterday is less likely.

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Weekly Update

Dow (25,295)

Dow is forming the minor wave v of mini wave 9 of sub-wave v of wave (v) of its major wave 7. It has reach a possible turning point for the starting of its major wave 8 with a 15% pullback.

However instead of stopping at minor wave v, it is also possible that Dow can continue with its bull run by forming its minor wave vi, vii, viii and ix for its mini wave 9.

In fact after completed its mini wave 9 and its sub-wave v, Dow still can continue its bull run by forming sub-wave vi, vii, viii and ix for its wave (v).

FBMKLCI (1,817)

Assuming KLCI is forming the wave B of its mega wave (6)

KLCI at this moment is forming the wave (iii) of B.

If wave (iii) has only 9 waves, it is at the mini wave 7.

There is another more bullish wave count for KLCI that I have mentioned in August 2015 as shown below

But it was dropped subsequently because of the bearish sentiment in this country due to political situation, 1MDB issue and the weak Ringgit.

If KLCI can surge beyond its July 2014's high of 1,892 the alternative wave count is the major wave 5 formation.

Then the KLCI at this moment is forming the sub-wave iii of wave (iii) of its major wave 5.

ATTA Global Group Bhd (Rm 0.95)

Very likely ATTA is forming the wave B of (2).

From the 30-minute interval chart, it has one more up, the mini wave 5 of sub-wave iii of B.

Inari Amertron Bhd (Rm 3.69)

Inari continues with its major wave 7 formation.

It is about to complete the wave (vii) of  its major wave 7.

Insas Bhd (Rm 0.98)

Whether I like it or not, the correction since early July 2017 is the major wave 4 for Insas.

I have adjusted the wave count for major wave 3 as shown. there is a possibility that the major wave 5 has started. Conservatively I am looking at a target of Rm 1.80. And frankly speaking I am not satisfied with Rm 1.80 when I am considering the 402 million share of Inari that Insas is holding. That is 0.636 inari share per Insas share. At Inari's Friday closing price of Rm 3.69, the 0.636 share alone is worth Rm 2.34 without considering other assets and businesses of Insas

And I don't understand why the prices of Insas and Inari that used to move in tandem but started to move in an opposite direction since September 2017.

Initially I thought Inari was going to announce fantastic earning and Insas was going to announce very poor earning for quarter ending 30 September 2017. But by end of November when they announced their respective results, I was surprised to see Inari's earning at only 3.41 sens a share with net assets per share at Rm 0.45 whereas Insas's earning is 5.95 sens a share and net assets per share at Rm 2.41. I guess I just have to buy more Insas's share and hope for the best.

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Happy New Year 2018

A small bear is likely to come in for a 15% correction in 2018.

If you have done well in 2017, congratulation and can celebrate. If you have done not that well or you have done badly then we shall look forward to 2018 to have a better performance.

Dow (24,719)

Dow is about to end its mini wave 9. Watch out for failure minor wave v. Is this going to be the end of sub wave v, wave (v) and major wave 7?

Major wave 8 is expected to be about -15%.

FBMKLCI (1,796)

KLCI added 36 points (+2%) over the last 4 trading days of 2017 to confirm that it has yet to start its major wave C pullback.

It remained in its wave B formation. It might complete its wave B with a double-top formation. Wave C is expected to pullback about 15%.

                         

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Dutaland Bhd (Rm 0.545)

Duta started to move up strongly with high volume in August upon the announcement that Boustead Plantation has proposed to buy from Duta 11,579.31 hectares of plantation land for Rm 750 million.

From August's low of 41 sens Duta share price moved to a high of 73 sens (+78%) by end of October. The subsequent price consolidation brought the price to 52 sens by end of November. Since then Duta has formed 5 little waves in up-trend direction.

There is a possibility that Duta has completed its wave (iv) correction and is on its way to complete its wave (v).

From Duta's latest quarterly report, it has a net cash position of Rm 5 millions. Once the land sale is completed, Duta will have cash of Rm 755 millions, which is 89 sens of cash a share in addition to its 26 hectares of land at Kenny Height that has a market value of Rm 1.068 billion. Duta's share in Kenny Height is 58% with Olympia having the balance of 42%.

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FBMKLCI - Crucial moment

FBMKLCI (1,736)

KLCI dropped sharply to 1,736 level today, losing 14 points or 0.84%. Last Thursday's high of 1,759 could be the end of sub-wave ii and KLCI could be forming its sub-wave iii of (iii) of C currently. It is heading for 1,520 level for its 15% pullback.

However, if KLCI can have a U-turn starting tomorrow and can move all the way up, up and up, the picture will be different.

Then KLCI is going for wave (iii), (iv) and (v) of its wave B. But once KLCI continues to drop in the next few days, we can forget about this possibility and should expect KLCI to reach 1,520 level to complete its current wave C formation.

ATTA Global Group Bhd (Rm 0.855)

ATTA surged 14.77% or 11 sens to close at 85.5 sens with high volume of 3.7 millions shares. The December low of 68 sens is either the wave A of its mega wave (2) and the current run-up is the wave B.

Or it is the mega wave (2) and the current run-up is the mega wave (3).

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Dow and FBMKLCI

Dow (24,585)

Dow continues to move higher in the last few days with new record highs and has eliminated the possibility that sub-wave v has ended as the mini wave 9 has five minor waves.

FBMKLCI (1,759)

Within 3 trading sessions KLCI has gained 40 points and has surpassed my projected target of 1,750 for sub-wave ii.

With this sharp magnitude it appeared to me that the current rebound is more likely to be a wave (iv) of C as shown below and I expect KLCI to move lower and lower again.

Where wave C is going to have 9 waves for a 15% pullback to complete the mega wave (6).

But if KLCI can continue to move higher and higher in the next few weeks, it is possible that the wave B of (6) has not been completed yet and wave C with 15% pullback has not yet started.

The June high of 1,792 is not the end of major wave 3 of B, it is the wave (i) of 3 of B.

The low of 1,713 on 4th December is the wave (ii) of 3 of B.

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