Oil and gas.....

Well, oil and gas run has surely begin since early of this month...how long will this continue?...with oil price hovering at about USD75+ per barrel... it's no wonder people are rushing in the grab a piece of the pie...

well, not all O&G counters are 'worth buying in now...some are too pricey for it's future earning...

only a few is good to even consider... the one i would like to focus on is KNM.

Being award the Pahang biodiesel plant project(~125mil) and the previous few projects by it's subsidiaries (~250mil) is going to start contributing to it's Dec 2007 statement of financial position positively...

Well, that's not all cause there's going to be more projects to be unveil in the new future...

Chart wise, it's testing the support band of $4.80-$4.90... fundamentally, the business model is solid and the state of it's corporate governance is relatively excellent... so watch out....9 months tp is $6.30

Ranhill

How's much faith do we have on Ranhill's oil discovery at Citarum block to be huge enough(~200 barrels)? Will the ~RM25bil oil pipe project take off?...will banks even consider loaning money to the project?

How badly do you think we need this project? How economically viable do you think this project is and what are the chance it stand in posing as a treat to Singapore's status as a premier oil storage hub?...i think unless we see more promising events coming up on this projects, or perhaps Petronas backing it financially, we should really trade Ranhill cautiously...

With it's total receivables standing at about $1.2bil...ranhill couldn't afford to continue to let this number rise further and hurt it's balance sheet.

In short, don't get carried away... people are buying base on future earnings and not real profit yet. If you're into real long term, who cares.... but traders... be alert.

Time is right...

For those who missed out on IDR counters that shot up before you guys managed to buy, don't worry nor feel left out for opportunity always presents itself in stock market...

Mulpha closed at $1.65 today...time to pick up for the next IDR wave... cheers.

Steel counter at a steal...

This is one counter that basically all investors should have at least for 6 months down the road...

Well, standing at NAV is $2.19 with relatively good track record and with a PE of about 6.5 this stock is a steal at $1.47(today's closing).

With the cement price cap lifted last month, steel price is still capped... but will this be history soon?...i believe so.

Why?...here a a few...

1) With so much constructions involved in 9mp, the gov just cannot afford to let the steel issue cripple the flow of those projects which is crucial for the development of the country...

2) Developer cannot absord the price difference no more...

3) Illegal transaction are rampant due to shortage...

4) Small developers will wind up and the Gov will be blamed and this is not good for the feel good factor nor the election...

So conclusion...buy.....lots of them and keep.

Free style...anyone?

When we talk about investment style, many people tend to stand behind their own technique... which only make sense because why would someone practise and preach on a particular approach/technique of investing if it's not working? It's not like they're getting paid for doing that.. are they? i really don't think so...

In fact, how many people do you know that teaches you what technique to use these days apart from some trading/investment books written by some very famous and successful people in the investment community. I'd say, almost none... Why?

Because of the very hard fact that human cannot be taught effectively when it comes to making money...and when I said, making money I'm refering to being independant and generating money on our own capability for the rest of your life.. being able to continuously learn and evolve to suit the condition of the investment field.

I believe many successful investors/traders nowadays all learn the hard way... start out with little knowledge, little money and above all, with the courage similar if not less than "The 300"...dare to fight and die for something they believe in.

Back then those people don't have as much resources for reference as we have today and information is not widely available hence dampering their chances of survival and raising the odds against those brave souls at that time.

While we no longer have to live with that, I still believe that for one to be successful in stock investment, that person has to go through the same journey to experience and develop ones own investment model that suit ones personal character/style.

I believe every individual have his/her own level of risk tolerance(ability to withstand loses), capital size, level of satisfaction pertaining to triple R (risk and reward ratio), lifestyle and couple of factors more which come into mind when someone makes their decision in a financial deal.

As such, there's really no way, one can adopt another persons trading or investment style blindly... there's got to be some serious fine tuning for sure... for it's your own money and future afterall... and basically we bear the consequences of our own actions.

So start the journey early... for time waits for no one.

Swee Joo...

This investment holding company based in Malaysia with core business focusing mainly in provisioning of shipping services which last year contributed about 95% of its total revenue for last year.

ROE is healthy and good.. Second quarter profit meets expectation..

With it's curret expansion plan on going and 2 new tankers Asia Star and Asia Bright both due to arrive end of this month and early of next year respectively, I seriously think there's a possibility of expanding into the more lucrative business of tranporting crude oil... with TPP oil pipe project approved and once this project takes off, it'll definitely shed more light on this area..

A 20% growth is relatively easy to achieve...so Swee Joo is a good buy for medium term.