I was so very happy when i found Brem. I was so excited and i jumped up and down like I had just found a gem. I can't remember when was the last time i had this kind of feeling. I was telling myself, it would be perfect if i found a good potential trade especially when my airasia-ce were going to expire soon so that i could switch part of my portfolio to a potential trade. It was hard for me to find a good potential trade.
Brem Holding Berhad is engaged in general contracting, property development, property investments and investment holdings. It operates in four segments: civil engineering and construction, property development, property investments and investment holding, and water supply and services. It operates in Malaysia, Papua New Guinea and The People’s Republic of China. In Malaysia, its areas of operation are civil engineering and construction, property development, property investments and investment holding. In Papua New Guinea, its areas of operation are water supply and services, and civil engineering and construction. In the People’s Republic of China, its areas of operation are property development and investment holding. Its major subsidiaries include Brem Construction Sdn. Bhd., Brem Aluminium & Glass Sdn. Bhd., Brem Maju Sdn. Bhd., Harmony Property Sdn. Bhd., Global Water Sdn. Bhd., Naga Istimewa Sdn. Bhd., Cosmo-One Realty Sdn. Bhd. and Intan Kemuncak Sdn. Bhd.
Why i was so happy when i noticed Brem? I noticed Brem-wa was trading at RM0.125 on 21 July 2009. It dropped to RM0.065 on 31 July 2009 when i noticed it in the top-losers list. It dropped 50% in just 9 trading days. That was a huge decline! I checked Brem fundamental and everything looked ok for me. Weird!
If Brem-wa were to recover to its 21 July 2009 price of RM0.125, I would have earn 100% profit. That's why I like to trade stocks/warrants that had just undergone a sharp decline.
I did not trade Brem/Brem-wa when i first found them. Brem-wa jumped to RM0.10 within another 3 trading days since then. It jumped a whopping 53%! HUGE GAIN!
On 3 August 2009, I posted on my blog that I thought a correction was coming. (http://cathoon.blogspot.com/2009/08/correction-coming.html). I started to sell part of my portfolio. I was right. There was a correction.
Brem-wa started to decline then. It dropped to RM0.065 (again) on 25 August 2009. I noticed that Brem resistance is at RM1.20 and Brem-wa resistance is at RM0.065. So i bought some Brem-wa on 25 August 2009. Again, today i bought some more Brem-wa at RM0.065.
Technically, RSI, Stochastic and Bollinger Band are showing oversold signals. Brem (Brem-wa mother) is trading at a very thin volume. That is good.
Fundamentally, Brem's P/E is 11.41. It is reasonable (if not low) comparing to its construction sector peers. Brem's NTAB is RM2.97. Brem is trading at RM1.27, so it is trading below its NTAB. Good! Besides, Brem has a proven stable earning record. Brem makes profit for 9 consecutive quarters (at least)! Good! Brem is actively buying back its shares. Good!
Now i think we just need a catalyst to make Brem/Brem-wa jumps. Brem is going to announce its quarterly result very soon. Let's hope this quarterly report can jump start the rally.
Brem-wa's premium is -0.39%, it is a discount! Gearing is 19.54, expiry date is 24/11/2009 (another 89 days to go).
Ok, good luck in your trading.
GOon
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