Same old story...

Malaysia to decide on a partner for Proton Holdings Bhd within the next 3 months....sounds familiar? Well the Proton Holdings Bhd. reported its fourth straight quarterly loss....citing reasons such as lower car sales and declining margins..... innovative is the key word.
Proton posted a loss for its fiscal fourth quarter, ended March 31, of about a mil.
For the year, Proton's loss totaled 591.4 million ringgit, compared with a net profit of 46.7 million ringgit a year earlier. Well, the model does not work anymore?
Fourth-quarter revenue fell 29% to 1.27 billion ringgit. For the year, revenue was 4.92 billion ringgit, down 37% from 7.8 billion ringgit...any reason why?
The company, 43%-owned by state-owned investment firm Khazanah Nasional Bhd., sold 110,358 cars in the 2007 fiscal year, down 40% from a year earlier.Separately, Malaysian Prime Minister Abdullah Badawi wants Proton to seek talks with other auto makers about a strategic tie-up, after Volkswagen AG turned down a proposal to take an equity stake in the company."I have decided, since Volkswagen is not interested in the proposal that Proton wants in terms of equity, Proton needs to talk to other people," Mr. Badawi said Thursday.
Like I said earlier, anyone with brain would say no to such deal... it's a no deal!

Meanwhile, Proton expects conditions to remain challenging because of higher costs for components and intense competition....why didn't the management anticipated this?... short sighted? It expects sales to improve in 2007 with the continuation of promotions and the introduction of models in the third quarter.... i doubt.

Insas... worth the money?

It seems to me that Insas has been oversold lately...those who are still holding it probably would have given up by now... however, it will be likely for this counter to hit the spotlight again in the future...$0.60 is about to be breached. 100 days SMA is barely able to support. I think those who holds this stock or it's warrant should monitor closely and buy when the stock breaks below that price... you don't wanna missed the chance to get a place when the boat u-turn and makes it's trip back to north.

Are you doing yourself a favor?...

Most people have always been on the look out for opportunity to build wealth... to have bigger houses, nicer cars, more money to spend and lastly the most famous sought after goal among us...financial freedom.

Well, define financial freedom?... the meaning varies from people to people...but i think many would agree with me that financial freedom to many people would means the ability to live comfortable live without having to worry about their financial situation.... which in short means money is not a problem.

How many people have this luxury nowadays? It seems only 5% of the population fits in this category statistically. A report from EPF showed that 90% of the people in this country have less than 100k in savings... hmm.... 100k can only last the most 5 years for those living in urban area...let alone if he/she needs to support their family...easily the numbers would be reduced to ~2 years...based on pure spending/expenses.

The question is what can we do to prevent us from having this problem when we retire later in our lifes?...

It's a no brainer isnt it?.. investment of course!....

Question is what's the best and fastest way to do it? Unit trust, property investment, FD you may tell me...property investment needs a relatively huge capital to begin with...Unit trust and FD on the other hand may sound like the safest and sure way but the return is really mediocre when you factor in the ever rising inflation, medical costs, and many other miscellaneous costs of living.

So after all the consideration, stock investment is the only way to achieve financial stability the shortest way for me. Apart from the small amount for the stock trading fees. everything else goes back to you... lately there's an article on the rich getting richer thanks to the booming stock markets... in China as many as 1million trading accounts being registered in a month!...

I'm not saying that you'll be rich by just investing in stock market but doing it the right way is how you can get there. Warren buffet, Bill Gates do not get rich over night... these people are visionary i would say... so look deep into the future... imagine what the world might be in 10, 20 years down the road...and use that knowledge/information to help you in your selection of stocks... of course current fundamental values of those stocks you've identified matters the most... you don't wanna choose a company that get's into PN17 or worst ends up delisted/wind-up the moment you bought them. Lastly, technical analysis will provide guidance in the timing for entry into the stock market.

So use all the tools and resources in the internet to help you achieve your GOAL, and if you're new to stock investment, the only logical thing to do is to read up on this topic before you start...

You don't need much to start this wealth creation project on your own... I started mine with only RM5k....

So if you don't wanna end up old, penniless, and leaving a life filled with fear, anguish and uncertainty... you better start now for time does not wait for no one.

Ranhill bullish still?..

Fundamentally, the stock is very attractive with a QOQ profit rose almost 100% with the EPS rose to 4 sen from 1.85 sen a year ago. Net tangible asset is currently $1.64.

Widely published news on Ranhill's odds of winning the pipeline project worth ~USD7 bil and a speculation that it could claim another US150M for works done in O&G projects in Sudan puts Ranhill on the spot light under current bearish sentiment in KLCI.

The bearish market sent investors scrambling for safety counters which is supported by positive news while waiting for the return of the bull.... Ranhill is definitely on safe counter to count on... i do hope no hanky panky thingy like Tranmile... ;)

With O&G currently in play, it's very difficult for any bear to topple the bull that is driving this stock... all in all, it's definitely worthy to spend some resources on this stock.

Accumulation time for INSAS-WA?

Insas-wa has dropped more than 50% of it's value since it's peak this year at $0.58.

With an exercise price of $1, ex ratio of 1:1 and lastly about 1 year and 10 months to expiry...this warrants still look interesting to me...

Why?

1) Has about bottom out at current price of $0.22... rock solid support at $0.20.

2) KLCI will rise in due time and insas will reap once investors returns to the market.

3) Chartwise I would like to say a mini-bullish engulf appeared, potentially ending the bear's reign.

4)With time at it's side, though very much under water for now. I think it's worth considering for long term investor.

Don't under estimate this counter...cheap and offer high leverage. Well, that's my view...

On your toes!....

The day has come for us to decide on this cross road... a hangman finally appear today for YTL chart and I think it's only reasonable to see this sign...so take note for those who have bought YTL of late. Tomorrow's performance is like a traffic light signal, if it's green then stay on course... and if it's red, stop, cash out and wait for another signal to join the race.

For me irregardless of whether you're a long term or short term investors, it's only wise to maximize your money... it's not like everyday we can have the luxury to watch out for the signal right?...so get ready guys.

The sign?

Well, today the Malaysian gov announced the increase in the salary of civil servant since the last raise about 5 years ago....with the increase, it will cost the gov ~8billion anually.... what a rich country...I'm not going to comment about the service quality hence let us see for ourself the service quality change.

Anyway, why is this proposal got approved now?...it was brought up last year but rejected...so if you ask people around you....9 out of 10 will tell you that this is an election sign and it is imminent...

Without doubt this will create an even better feeling among the people(civil servant) and these people are then expected to perform their 'job' well.

So how will this affect the stock market?... hmm...a moral boost for sure.

With 9MP projects being implemented soon(hopefully), visit Malaysia year 2007, China Olympics looming and lastly the greatly anticipated election... i think we should sit down and think deep.....identify good investment vehicles, choose wisely, study and plant the seeds...then wait for the harvest.

Don't let your past experience haunts you....learn and gain from it...for a wise person is not born but created through time.

Don't stay put and watch while others build wealth....and back to the sign,... isn't it obvious?!

YTL charged up....

YTL has indeed live up to it's expectation... the stock closed at $8.45 yesterday exhibiting strong support from buyers... has the bull run reached it's end?...i think it's worth more to hold it for a little longer for traders while long term guy, let the ride begin...

You let me know if you think otherwise.

Previous postings on YTL. : http://technicalanalysiscorner.blogspot.com/search/label/YTL

You reap what you sow!

Well, people nowadays have the privilege of getting information from the internet to help them analyse and make decisions on their investment.

However, many are still lazy and refuse to learn and worst of all, they have the mentality of the all knowing(Oracle?) and the courage of the '300' to buy on instinct.

Having feel that way, they go to war with their(or maybe their loved ones) hard earn money. Victory is all they can see or feel and little do they know the danger of defeat.

Animals are designed to behave on instinct...humans are not suppose to... we have a much more complex brain. Hence we should analyze, study, research, and plan before we execute a trade.

People who can earn money from the stock market over a significant period of time are not lucky. When hard work met with coincidence, we called it luck.

People don't get lucky everytime so don't bank on it too much. If you put in effort, you'll get your reward. In real life that may not be the case, but in the stock market, you will.

Not worth investing?

Until today, Proton has failed in it's effort to search for a partner since last year... everyone was talking about it back then and i believe by now most of them have given up hope...
First of all, why is Proton's negotiations with major global automotive players seems to be a never ending process? Why Peugeot, GM, Volkswagen all failed to clinch a deal with Proton?
OK here's what the deal's like assuming you're the CEO of company X Corp looking for a deal with Proton.
1) X Corp cannot owns more than 50% of Proton's share.
- X Corp hence are unable to run the company the way it wanted it to be.
2) Proton will not restructure the company in terms of downsizing.
3) Proton will maintain it's ingenious hiring policy.
4) X Corp to put up with all Proton's financial problems.

So you say, okay. What's the benefit that I can get from Proton?
well....here you go.
1) X Corp can now capitalize on Proton's insipid car designs.
2) X Corp will potentially inherit Proton's huge debts given the rate it's cash pile is diminishing.
3) X Corp will enjoy Proton's market share of only ~30% locally.
4) X Corp risk of potentially buying an empty shell.

Hmmm... putting myself in that position, I would say "count me out!".
It's just a no-brainer isn't it...
Well... a piece of advice to Proton... be humble and learn from your peers.
First of all before you do that, consider going for a restructuring exercise... it helps.

Effect of Genting's Asiatic disposition

Back then many have been speculating that Genting will dispose Asiatic and now that IOICorp has voiced it's interest in aquisition of companies to increase it's landbank size. Given the fact that IOI's landbank has almost reach its capacity, it make sense for it to aquire Asiatic. With Asiatic's huge landbank in Indonesia via it's JV with SG and IOI's desire to expand to Indonesia, i think both parties can work something out.

Genting holds 55% percent stake in Asiatic is valued at about 4.53B. The disposal of Asiatic will streamline Genting's group and allow them to focus more on the main core business and also help to improve Genting's cash flow ever since they started funding for the Singapore casino project.

From chart wise, Genting stock price has been falling since it's share split event in the mid of April. Investors took the news positively and the stock price rose about 5% since the opening of trading.

50 days SMA still could serve as a support level and today's closing will only reinforced it. Should the deal materialize soon, it will only drive Genting's share price further away from the oversold range.

KLCI recent rise justified or 'artificial'?

Are these index related companies performing up to the financial valuations given to them? Or this is just a feel good factor bubble? 9mp, visit Malaysia 2007 and possible election are the main reasons why many investors/traders feel that the stock market will perform better than other investment tool such as commodities, forex, bonds and etc.

The country's steady economic growth, higher FDI, ever increasing capital inflows and rising BN reserves has been able to keep the bullish sentiment going for quite sometime now... question is will this continue?...well a more accurate question is, ...Have the companies listed in KLCI reached their potential based on their 2007 earning estimates? I personally believe many of them are overvalued... well partly because these companies we bought based on impending forecasted earning few years ahead from now. While some companies remained undervalued that the majority shareholders opted for privatization.

So let's not be deceived by the KLCI points merely because they kept rising... do yourself a favor by doing some analysis before you invest your hard earn money in stocks.

Last week a hangman or I would call it as after consolidation hammer appeared on the chart and as of now, the CI is up 8 points... let's wait further to see where the trend heads to...

Something 'light' for the weekend!

This is hilarious!... he's got talent, i'd say... Jim you're the man!

Can YTL stage a breakout?

From chart, YTL looks steady in heading to break the high of $8.15 again after the first attempt failed...the stock does manage to hit $8.20 during intra day few days ago... with the on-going share buy back program from YTL it might just make it easier for that to happen.

i believe it's just a matter of time(short term) for it's share price to burst above the high.

...fingers crossed... :)

Maybank or Bumibank?

Again, Malaysia went 'famous' just because it's largest bank(however you wanna call it) declared that it now require all that law firms must have a 'bumiputra' partner with at least a 50% stake before they could do any business with the bank. Discrimination, arrogant and ungrateful are the words that I have for this bank.

I thought all these while the people have been thought to spend more effort in building self competency and companies to work hard in order to complete globally?...Capability, integrity, efficiency and merit if you ask me are the main criterias to consider when I want to do business with someone and surely not the race. Most of us are Malaysians, born and live here since independance....living peacefully in a multiracial country is something we're proud of...at least today we are.

Then all the sudden came a bank who without thinking implemented such rigid and ridiculous rule in the midst of the Gov's effort to build unity in the Malaysian people... even simple civilians who never had a chance to be educated knows how important it is for someone with a high place in the community to think before he says anything. For words spoken are hard to be taken back... it reveals the intention and the perception of that person.

Having said that, now I'm pretty sure we now know this bank's view on the people of this country.In short, if Maybank thinks that it's so darn big and powerful that is does not need contribution/business from other races in this country apart from 'bumiputra'. I say, go ahead and implement it....

I bet that when all the non-'bumiputras' withdraw their commitment with this bank...It's guaranteed that this arrogant bank will move from being the largest bank to the smallest(only if it's able to survive) in a relatively short time.Now to the 'ingenious' management of this bank who came out with that foolish decision, please use your head and think before you implement anything in future.

There's a saying, "There is pride before downfall". God gives us a head to think and not for fun! For if you don't need them, you won't have them.

Don't play play ar!!!

KLCI faces another test this time around and if the bullish sentiment fails to keep it above 1340, I'm afraid we're going to have to wait for a longer period to see the emergence of an important bull which ultimately will drives the index towards and above 1400...Financial or earning report always serve as a catalyst to investors when they're evaluating a stock.

This is the basic requirement for even the most 'simple' long term investor. When the heart of all foundation is questioned, the confidence is shaken and that results in a beaten stock price for a particular company.

Why such incidence could happen?Or perhaps I should say, how could such a big company like Transmile allow such things to happen?What has gone wrong? If this can happen to Transmile, what about the rest? how are we as investors gonna have faith in such earning reports in future?


Integrity and credibility does not comes overnight... it is built and tested over a long period of time... shattering it is easy while effort to regain it will be difficult and takes time. I do hope this event will serve as a reminder to the rest of the listed companies out there to be vigilant of what they report in future.
Least we want to see is another case solely made in Malaysia.

Timecom a trading buy....

News on Digi buying into timecom has been floating around the market for quite some time since the former failed to land licences for both 3G and wimax...timecom chart has a breakout and is likely to trend up further once the MACD trend exhibit the bullish centerline crossover... with the impending departure of Maxis from the market, funds will be looking for somewhere to park....hence there's a good chance the good news will be announce soon... I made my call, now it's your turn to judge and decide...