Volatile and unpredictable

Volatile and unpredictable indeed is the stock market today. Opening with a big gap, its low of the day is 1136.01. It closes at 1196.45 with an intraday high of 1196.68. Volume traded is high at 3.9895 billions.

The market after giving you a severe beating turns round and says, “I am sorry.” Will it do the same thing tomorrow? Or will it say sorry first, and than beats you again.

A car running at high speed has to slow down before it turns around. Is this analogous to the stock market? Just wait and see.

Odds favor the man who waits until he is sure.

There are no secrets to success. It is the result of preparation, hard work, and learning from failure. (Colin L.Powell)

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Genting's gaming licence not automatic: Singapore
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Ideainfo & Opinion

Some of my readers say they do not know to how & where to get started to become knowledgeable in the stock market.

They wish to learn all there is to learn to become proficient in stock trading or stock investment. Well, here is one great site you can go to , and from there to other great sites.

Wish you luck, and happy learning.

The faster it drops, the quicker it stops

Following the bearish engulfing black candle, the KLCI had a 35.79 drop to 1237.08. This is the biggest one-day drop in the last 5 years. At one stage, it was down 52 points. Volume was high with 3.6993 billion shares traded.

China had the biggest one-day drop in a decade. The Hong Kong & Singapore markets were down as well.

What is likely to happen tomorrow? Should there be a panic sale, it is a good time to go in for some bargain hunting. A panic sale is one when there is fear in everybody’s face, heavy turnover and a very steep drop. Watch out for this scenario though I think there is unlikely to be one.

If 1223 is breached, 1190 & 1165 are the next support levels.

Ideainfo & opinion

AsiaEP shows a runaway gap with a white candle which has a long lower shadow. It closed the day at 82c after an intraday high of 83c. Volume has dropped a little bit, but is still on the high side. This is bullish.

At the KLCI, an engulfing black candle has appeared with reduced volume. This is bearish. If the next candle closes below the low of this candle, i.e.1, 270.40, a correction is likely to commence.

LB Aluminum was looking fairly good throughout the day. But since it closed with a long upper shadow, it is better to wait for a better picture to emerge before doing anything.

Before you attempt to beat the odds, be sure that you could survive the odds beating you.
Larry Kersten (American sociologist & author)

Citigroup has an extremely bullish view for the Malaysian Stock Market.
Click here for the details:
Citigroup: Signs of
another 'hot streak'

Stock Market - the 8th Wonder

I have just read Stock market the 8th wonder. This is one of the winners of the SIDC’s My Investment Experience contest held last year.

The article is full of wisdom and well-worded. Don't forget to read it

Two-day trade is better

We often hear people talking about one-day trade. In my opinion, two-day trade is better. Forget about the little bit of commission you save on one-day trade. We go after the pound not the penny.

In the last fifteen minutes of the day, you must make up your mind as to what you are going to do. If the odds are in favor of an uptrend continuing, you must immediately buy. The idea is to buy high and sell higher. Of course you will not be right all the time. If your judgment is proven wrong the next day, you quickly make your exit at a small loss.

The key to success in trading is to make you losses small and your gains big. If you cannot cut losses quickly, never attempt trading. Your goal is to make money, and not after the excitement.

Ideainfo & Opinion

By now most of us would have read Googling For Growth by Tee Lin Say.

AsiaEP is likely to move up fast from the opening bell. Its CEO, Bernard Tan, has painted a very rosy picture of it. At 49c, I have bought some of its shares. I shall sit tight on them for awhile.

Nextnation’s private placement is not completed yet. Until then, it seems that stock will not move much. Its next quarterly report which is expected to be good will probably be announced after the 15^th of next month. In the meantime, if it can hold on to its present price of around 68c with an upward bias, everything will turn out fine.

I-Power has the tendency to have lighting flashes. It will continue to be in play. The uptrend of IOI Property will remain intact. Don’t kill the golden goose. It has more golden eggs to lay.

The winds and waves are always on the side of the ablest navigators
Edward Gibbon

You cannot afford to be ignorant

Ignorance is bliss; it’s folly to be wise. Not so, when you are in the stock market.

There are at least four stages you must go through before you have any chance to survive in this ‘jungle of savages’ where survival is of the fittest.

The first stage, known as ‘Unconscious Incompetence’ is that you don’t know that you don’t know, and you don’t know what you don’t know. After you have lost money, you are demoralized and begin to realize that there is indeed a skill to be learned.

In the second stage, called ‘Conscious Incompetence’ you know that you don’t know, but not what you don’t know. You look around for the best books to buy and study. You begin to learn.

In the third stage, you know that you know and what you know. However, you are not 100% sure that you can apply your knowledge to gain profit. You have to think and plan, and spent a lot of time doing it. This third stage is called, ‘Conscious Competence’.

The forth stage is called, ‘Unconscious Competence’. You have become an expert; you don’t have to think to perform brilliantly. Actions of wisdom become your second nature and instinctual. When you have reached this stage, you are ready for the war; you are on your way to your first million.

You can have anything you want if you want it desperately enough. You must want it with an exuberance that erupts through the skin and joins the energy that created the world…Sheilah Graham (U.S. columnist, 1904-1988)

Ideainfo-Xc (the inner voice)

It’s another field day for the Malaysian Stock Market with record turnover of 4.7817 billions shares. The KLCI closed at 1,276.52 (-1.7) . A black spinning top appeared. This is a sign that the market is losing momentum.
The Mesdaq index, however, closed higher at 153.97 (+5.14) with very heavy volume traded. Today’s scenario is clearly a reflection that interest has shifted to the lower liners and the penny stocks.
I-Power jumped 10.5c to close at 55c with exceptionally high turnover of close to 111 million shares. A big white candle has occurred. This is a bullish sign. Upon completion of its bonus issue, the counter is much more liquid now. I believe that there is some impending good news.
Nextnation added 4.5c to close at 68c. Though its volume traded has improved, it is not the time to celebrate yet. The last three candles are all white. I hope to see a forth one tomorrow.
IOI Property has improved by 1.50 since I mentioned it a week ago. The stock has the potential to go higher.

Somewhere in your make-up, there lies sleeping, the seed of achievement which, if aroused and put into action, would carry you to heights such as you may never have hoped to attain…Napoleon Hill

Ideainfo – Xc (The inner voice)

The bears at YTLE were no match for the bulls. It was really against my expectation. Well, there can never be certainty at chart reading, only odds. The stock is now in uncharted new- high ground. Only god knows how high it will go.

The KLCI put on 16.13c to close at 1,278.24. The volume traded at 4.7026 billion shares is the highest in the history of the Malaysian Stock Exchange. Perhaps, now is the time to ask “What’s a good thing to sell instead of only asking what a good thing to buy is.”

In the Mesdaq counters, Symphny & YTLE were among the star performers. There are others that are just coming into the picture.

I like FSBM, ASIAEP & SRIDGE for some short –term profit.

The opinion expressed above is my own and is not a recommendation to buy or sell.

Ideainfo-Xc (Feb 21, 2007) the inner voice

In the twinkling of an eye, three days have passed. The market will be back to life in a few hours time. Most likely it will start off well. Blue chips may take a breather; mesdaq counters and lower liners are likely to take the limelight.

There were a lot of profit-taking at YTLE. The news of its involvement inWIMAX has probably been discounted. Its latest high of 81c will not be breached for some time.

Because of the REIT factor and foreign influx of funds, property shares will do well. The best-safety bet is IOI Property with its sound solid management & balance sheet coupled with good earnings.

The deal between IJM and KEURO appears to be on track as reflected in the share price. Talam will benefit immensely if IJM eventually controls KEURO. The stock is on the move. Keep it in view.

ASIAEP has moved up a few sen since I mentioned it. It should be heading for higher ground.

Good luck and all the best for a prosperous New Year.

Cheers!

Tai Chi is Good For You

Tai Chi is an ancient Chinese martial art. In the olden days only the Royal Families were allowed to practise it.
Tai Chi, when practised everyday, will promote good health and longevity. Presently, almost every country in the world has come to know it.

Ideainfo-Xc

Ideas and information when exchanged benefit all and sundry. Our friends know many things we do not know. When three people are together, there is bound to be one teacher (Chinese proverb). I disagree. I say, when three people are together, there are three teachers.

The more we learn, the more there is to learn, and the more we know, the more we realize we do not know.

Anything educational, interesting, informative, and helpful are welcome--- be it a quotation, cliché, maxim, witty sayings or the like.

We all know that good health is indispensable in life. Make money the best you can, but not at the expense of health, friendship or reputation.

Do you know what Nitric Oxide is and why it is important to longevity? For your knowledge, click here.

Gong Xi Fa Cai

Here's Ben wishing all of you a Happy & Prosperous New Year.

Best Regards,
Ben Gan

Market Commentary

YTLE has fantastic volume of 105,673,200 shares traded. After an intraday high of 81c and a low of 59c, it closed at 65c for a gain of 8c. A long white candle with a long upper shadow has appeared. This is an inverted hangman occurring at high level; it is a bearish sign. It is calling you to sell.

Totomaster was probably right when he said that RUB was the most undervalued stock. His blog at http://klserealm.blogspot.com has good reading material. You should visit it.

As at 30.6.06, RUB has deposit, cash and bank balances of 593m. Its paid-up capital is only 294.5m. The company has good current earnings as well as good potential for growth. The present share price certainly does not reflect its true worth. One thing that puzzles me is that the company has not declared any dividend since its listing.

To those who have the patience, they will surely be rewarded eventually.

IOIPROP moved up 20c to close at 9.80. It will move up higher.

VADS’ 4Q result of 18.36c per share is commendable. Its annual EPS of 52.92c shows good earnings growth of 84.13%. Last year, its EPS was only 28.74. At the last closing price of 6.75, there is plenty of value for money. It has declared and paid an interim dividend of 10cTE. A final dividend of 15c tax free will be paid. This stock is good for the long term.

The KLCI is going from strength to strength. How high will it go? Who knows?

This blog disclaims all liability for its comments. You buy and sell at your own risk, absolutely.

Market Commentary

The Mesdaq index gapped up 4.29 points to close at 136.78 with improved volume. It’s the time to look at Mesdaq counters, now.

STEMLIFE, YTLE, & ASIAEP are some stocks on the move. Kenanga Research has a strong-buy call on ASIAEP with a 12- month target price of 99c. It says that ASIAEP is a homegrown Google and Baidu in the making. Visit http://b2b.itah.com, and you will have a better understanding. The market capitalization of Google and Baidu stands at US$149b & US$4b respectively.

In the last 10 trading days, ASIAEP has moved up from a low of 30.5c to close at 50.5c yesterday with good volume. Ride with the wave if you wish to make some New Year angpows but do so at your own risk.

Nextnation is a great disappointment. In a screen of green, it’s the only red spot. What a shame! While others were heading north, this one was heading southwest. I hope Tey Poh Yee, the CEO of Nextnation, will bring some life to it soon.

RUBHD & IOI Property did pretty well. They should move up further.

This blog disclaims all liability for its comments.

AIGB; AMMB & RUBHD Quarterly Result

AIGB‘s earnings per share of 9.66c for its 3^rd Qtr is commendable. Compare to the EPS of its previous corresponding period of 5.37c, it has improved by 79.89%. Its revenue of 437,408,000 has also improved by 70 over percent from 251,849,000 previously. It closed the day high at 1.89. Its price is likely to improve tomorrow.

Its parent company, AMMB has only EPS of 6c for its 3^rd Qtr. However, its share price ended the day at 3.46.

Ranhill Utilities also did well with EPS of 16.52c for its 2^nd Qtr ended 31.12.2006.

RUBHD; IOI Property

Against a correction of the KLCI, RUBHD and IOI Property held up pretty well.
I think they are worth looking at now. The former closed at 2.46 and the latter at 9.25.

Normally a quiet and ill-liquid counter, IOI Property has been creeping up. There was an improvement in volume lately. Interest is shifting to this counter.

This blog disclaims all liability for its comments

My Investment Experience

The other day, I was talking about my winning essay. The essay has now appeared in TheStar Business of today (Feb 12, 2007) under the heading HAVE INTELLIGENT INVESTMENT STRATEGY.

I hope readers will read it and learn some wisdom from it.

Thanks.

2007 Year of the Pig

A bullish year of the pig will soon be here
With smart moves, make 2007 a memorable year
Prosperity is coming back
Foreign funds are back on track

Bulls are here to have their says
Bears at home will stay, I pray
Miss not the rise of the tides and the waves
Put your money in the stock market, be brave

Think intelligently, invest confidently
Get the feel the glory of victory
Be merry; be wealthy; most of all be healthy
These are my wishes for you and your families.

Tomorrow is a vision
Yesterday is a dream
Today is a reality
Live well; be happy; be happy; be happy.

Nextnation

Nextnation has been trending lower and lower. Yesterday it closed at 60c with a slight improvement of volume. The intraday low was 57c which coincided with the low of
Sep 6, 2006.

A hammer (a candle with a long lower shadow) has appeared. As the hammer is at a support level, I read this as a bullish sign. I shall buy at the opening bell today. The latest news is this:
Kuala Lumpur, 29 January 2007– Nextnation Communication Berhad’s (MESDAQ: NEXTNAT) wholly owned subsidiary, Ozura Sdn. Bhd. (“Ozura”), a leading international publisher and developer of mobile entertainment announced today its partnership with ChinaByte in the creation of an exclusive China-based mobile gaming community portal – MOSTAR.

Market Commentary

The KLCI showed its resilience in the last 15 minutes. It ended the day 5.26 points at 1,248.83. Volume traded was at its all time high at 2.5682 billion shares. The uptrend looks likely to continue.

Ornastel put on 14c to close at 1.32 with 22,498 lots traded. A white marubuzu candle appeared, and this is bullish.

Symphny did quite well today. It improved 3c to close at 34c with good volume traded. The counter has been quiet for some time. It may be the beginning of better things to come.

This blog disclaims all liability for its comments.

Market Commentary

Bursa had record turnover of 2.3468 billion shares today. The KLCI closed at 1,243.57, up 6.94 points from yesterday’s close. Though, no weakness is detected in the uptrend, now is not the time to throw caution to the wind.

AIGB closed at 1.92 with another long white candle. Volume traded at 117,300 lots was slightly lower than that of yesterday. The chart looks bullish, and if it can clear 1.94 convincingly tomorrow, it has a good chance to surpass its all time high at 2.00

‘Bleeding’ at LKT appears to have abated. Accordingly to Kenanga Research, the 4^th Q earnings were likely to show a loss of 6m due to forex losses and one-time inventory cut-off. It appeared that there were some internal problems as reflected by the sudden resignation of its former president. Fundamentally, the company is sound with earnings per share revised to 39c for 2006, 51c for 2007 and 65c for 2008. The target price is 4.20.

Ornastel has announced a first and final dividend of 10c less 27% tax. At 1.20 or below, there is value for money. Today it closed at 1.18. It is worthwhile to consider buying.

This blog disclaims all liability for its comments.

AIGB

AIGB, a 51% subsidiary company of AMMB, performed exceptionally well to day. It opened at 1.69 and went up to a high of 1.85 before closing at 1.81 for a gain of 13c. Volume transacted at 154,995 lots was extremely high, relatively. We have not seen such high volume for this stock for a long time. The chart shows that resistance will be at 1.94.

For those who are interested in dividend counters, this is one for your portfolio, and for those who wish to ride with the wave, here’s your chance to make a quick buck.

This blog disclaims all liability for its comments

Market Commentary

The KLCI gapped up today to close at 1,225.73 with some 1.689 billion shares traded. It put on another 16.25 points.

There is nothing to crow about in the second, third or mesdaq counters except for YTLE which had a fantastic run-up. It opened at 24.5c. I had expected it to pull back to 23c for a good opportunity to buy. It did pull back, but only up to 24c from where it went straight up to 37c before closing at 35c for a gain of 10.5c.

The company is going into providing broadband and other value added services through its associate company Bizsurf which is one of the seventeen licensed service providers that have applied for and are being considered for the 2.3GHz spectrum band for WiMAX deployment.

The velocity of its price improvement will attract profit-taking. But, for the present, there appear to be more goodies on the card.

Writer disclaims all liability for his comments.

YTL e-Solutions

This stock has been in lethargic mood for some two and a half years. Last Friday, a big white candle appeared. The stock improved 5.5 c to close at 24.5c after an intraday high of 25.5c. Volume was exceptionally high with 382,570 lots traded reflecting high interest in the stock.

The company is a mesdaq counter under strong and able management of the YTL group of companies

In my opinion 23c is a good entry point.

Whether you choose to buy, sell, or hold, you do so at your own risk. This blog disclaims all liability for its comments, opinion, etc.

First Law of Motion

Sir Isaac Newton, the man who saw an apple dropped and discovered the gravity of the earth was a 17^th century scientist. His first law of motion states that:

"An object at rest tends to stay at rest and an object in motion tends to stay in motion with the same speed and in the same direction unless acted upon by an unbalanced force." Objects "tend to keep on doing what they're doing." In fact, it is the natural tendency of objects to resist changes in their state of motion. This tendency to resist changes in their state of motion is described as inertia.

In applying this law to the stock market, we assume that a trend in motion will continue until it is actually reversed. So keep in mind never to buy in a downtrend. Buy only in an uptrend.

He who pays the piper calls the tune

Read as much as you can. Listen at the people around you. But don’t listen to them.

You pay for your stock. So you decide what you want and when you want it. Never let others finalize your decision.

When you make mistakes, take solace that everyone does. If you don’t make any mistake, it’s a sure sign that you are playing too safe. Take calculated risk, not blind betting.

Those who blame others for their own stupidity are the losers. Don’t be one of them.

You buy and sell at your own risk absolutely. Your destiny is in your own hands.

Leaders or Laggards

In horse racing, as soon as the horses have lined up for a race, all betting will be stopped. After you have placed your bets, the only thing you can do is to watch and wait. You can only count your winnings or your losses after the race.

Now, if there is one special race course which allows you to place your bets, add more to, or lessen them even when the horses have jumped out from their start-ups and during the race, wouldn’t you have tremendous advantages to bet? You are also allowed to take your profits or cut your losses during the race. In other words, you can do live betting, just like in soccer.

There is indeed such a race course. It’s the stock market!

Using the above scenario as an analogy, which ones will you choose, leaders or laggards?

The above is only an opinion. You have the rights to differ.