Why the sudden hoohaa...?

What that was expected to be the worst Friday turn out to be a biggest u-turn we’ve seen for a couple of years …. First why would a half a percent cut in the discount rate make such a big difference? No doubt this seems to be the best move by the Feds to turn things around but will this solve the underlying problem that causes the credit crunch in the first place? I don’t think it’s that straight forward…

First, the reduction by 50 points on the discount rate is some what mediocre in comparison to the situation that we’re facing right now… at least what the mortgage market is facing… second, the subprime issue is still very much in the midst of the problem… what is happening to the sudden u-turn in the equity market on Friday are merely the perception by the people that liquidity issue will be reduced from now onwards….

Seriously the Fed have got to do more than that to ensure the liquidity problem is eased… but in general, it’s still a good move by the Fed to stem the continuous drop or what I think could have been a historical Black Friday of 2007 should Bernanke had not made this decision.

And don't forget about the effect of this on inflation... it's a concern for sure...

Word of caution, the dust is not clear yet…this does not solve the problem right away, sorry no magic.

What are you thinking?

Well, during stock market boom time most people earn money by just buying what ever stocks that comes into their mind... little do they even care to read up on the company that they are buying into....To be frank there are more younger stock traders/investors these days compare to a decade ago where most of them are relatively much older in age....

The younger generation realizes much earlier that in order to be financially sounds and ultimately achieves financial freedom is through investment.
However, stocks are not like any other tangible assets (eg. Property).

Tangible assets will in time appreciate in value because as the human population grows, available land/resources on earth are scarce and depleting. The demand for such assets will only increase as time past.

Stock price on the other hand is a value that represents a corporation which the current market feels it is worth. Stock price will not necessarily go up as the time past…and this applies to good company as well. A performance of a company in the future depends very much on what the company does today. The goal, plan and vision it has today is crucial to determine it’s profitability in the future or even the survival of the business in the long run.

Having said that, by just buying a stock and keep without monitoring it’s profitability and business condition overtime is like walking across the road in the middle of the night expecting nothing will hit you.... trust me you will be hit one way or another.

Therefore entry and the exit timing is the most important thing an investor needs to master and grow its financial power. Only then one can maximize return in the shortest possible time.

So try looking into the future and anticipate the upcoming wave of interest before you invest…well a few good ones will do the trick….there’s no point in having a lot of counters…put more time and money into the few key stocks. That’s all you need…

Cables.... everyone needs them.

Well, we've been watching leader moving up quite significantly since we last talk about it...having hit a high of $1.38 about 2 weeks ago and then succumbed to profit takings activities as the CI retreats from it's attempt to break 1400...

being the largest cable and wire supplier in the country definitely has the advantage to capitalize from the recently announced projects like NCER and the IDR. Being the main supplier for TNB also 'quarantees' a significant portion of it's income flow. With the current direction from the Ministry of Energy, Water and Communication to require TNB to change it's distribution network and perform a revamp to its existingly old cables and wire to prevent power outage complaints from increasing. There's no reason why TNB would reject such directives as the company has been reporting rising profit Q-on-Q.... :)

Again, with Penang being the target to be developed into a infrastructure hub and particularly on the 18bil dollar project to develop the a land size of ~255 acre which will have hotels, commercial and residential properties.. how much can leader reap from all these...?

Plenty....and alot more to come in the future to strengthen the income flow of this company.

I would recommend a buy on this counter based on current situation with a 12-months TP of $2.13.

Dijaya Corp

With NCER being the talk of the town lately, let's not forget one good counter from the property sector Dijaya Corp. With a sizeable and valuable land bank in Klang Valley, this counter is expected to have an increase profit in the next couple of years... it is under-rated for sure... Having last traded at $1.42 as of last friday....With $1.39 serving as the first support level followed by $1.32, unless this level give way, i think it's about time to get your bullets ready for the entry. The market's gonna be volatile next week no doubt about that...

Some how i think the worst is yet to come... so don't rush in yet... the period will present itself for a nice entry point.

With a book value at about $2.18.. this stock is trading about 35% discount but the upside will take time... therefore... anything below $1.4 is a good buy... so entry point is crucial... and this is the time i can say that somehow time is on our side...

The choice is yours.

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