Investors positive on Malaysian stocks: Macquarie

INVESTORS still see potential upside in Malaysian stocks with the market expected to strengthen in 2009, Macquarie Research says.The research house, which spent a week marketing in Malaysia, Singapore and Hong Kong, said investor demand was surprisingly good."The main questions that arose revolved around what bombed stocks should be bought."Additionally, investors were also wondering if the current strength in plantations should be bought or sold," it said in a research note.Macquarie said most investors still thought of Malaysia as low beta, where risks and returns are low. They were also surprised that one can make money in the country and outperform regional markets in bear rallies.This in itself probably led investors to rethink their positioning if they expect a rally in the second and third quarters of 2009."We recommend investors move out of cash into equities in first quarter because we expect a bear market rally this year," the research house said.Macquarie's top picks are Genting Bhd, AMMB Holdings, KNM Group, TM International and Tenaga Nasional Bhd.Elaborating on the stock choices, it said TM International was chosen due to its cheap valuation and growth. "Most investors felt they would wait till the potential cash call is completed," the research house said.It said TNB was quite topical in the second half of the week after the government adjusted tariffs in favour of the company.The main positive is that the regulatory regime continues to demonstrate favour for Tenaga and the introduction of a tariff formula is now more likely than in recent history."The main pushback was that investors wanted to wait for further clarity on the regulatory front," Macquarie said.As for Genting, the stock has been forgotten since the third and fourth quarters of 2008, and investors sat up when they realised how cheap it is - excluding the market value of its Singapore subsidiary.The main concern for Genting is that a number of investors did not believe Sentosa would be a success because they compared it with Macau and Las Vegas.

source:http://www.btimes.com.my/Current_News/BTIMES/articles/macwa/Article

A Trade on Gamuda

I bought Gamuda at RM1.88 which i noticed it was lying on its support line. When i bought Gamuda, stochastic was in oversold region and RSI almost in oversold region. I did not wait till MACD and RSI gave me the signal to buy since it was on its support line. Gamuda had been moving side way.

I was confident construction sector would benefit from our government stimulus plan. Besides, Gamuda was fundamentally strong.

I sold Gamuda on 13/2/2008 when it gained almost 10%.Although Gamuda did break above it 14D, 25D and 50D MA which was indicating a buy signal, I was concerned that Gamuda had reached it resistance level. So, i closed my position at RM2.07. I was satisfied with my gain.

It was emotionally hard for me to make the decision. As a normal human being, i was subjected to GREED and FEAR. Discipline is important in our trading success. So i followed my trading plan and sold at the resistance level (RM2.07).

Why do we need to have a trading plan, if we are not following the plan?!

I am glad I closed the position. The next trading day, Gamuda was down 5.5% or 11sen.

Genting

Genting is currently sitting at its strong support at RM3.58. It is probably its 4-year lowest price. In the last 12 months, Genting fell 53%, dragged down by fears over its weak UK
operations and uncertain prospects for its upcoming Sentosa IR.

Genting’s share price has also taken a beating, falling another 10% following RWB’s controversial Walker Digital related-party transaction.

Although 2008 started off well for the local stock market, the rally was short-lived as a
series of domestic and global-led events dragged share prices down south for the rest
of the year. Even the domestic-driven gaming sector was not spared – share prices of
gaming-related stocks sagged by an average of 43% during 2008, falling more than
the 39% dive in the broader market, which was a big surprise.

Resilience was particularly evident during the year-end festivities and school holidays when the Genting Highlands Resort enjoyed not only full occupancy for all of its hotel rooms but also strong patronage of its theme parks and casinos. Even during the slower post year-end and pre-Chinese New Year period, patronage of its casino floors remained healthy, showing that off-peak operations are still strong.

If the global economic slowdown extends beyond 2010, this could be a blessing in disguise for the Genting Highlands Resort given that it is one of the cheapest holiday destinations within the
region.

For technical points of view, RSI and stochastic are in oversold region. There is still no obvious signal from MACD. But it is always better to buy when it is trading at its support line. Notice that, in the last 4 days, volume picked up a lot. It could be a sign that institution players are accumulating Genting's shares.

I expect to see Genting moving up within this 2 weeks.

許月鳳e墓碑?

http://www.000ly.com/admin_Main/moldPage/2.asp?buildObid=650

（雪蘭莪‧八打靈再也）網友惡搞，竟然設立網站祭拜霹靂九洞州議員許月鳳！
這個中國網站由不知名人士創立，擺放觀音菩薩的照片，並列下許月鳳的生平簡介及出生日期。更令人驚訝的是，創辦人還寫下許月鳳的忌日，日期為週一（2月9日）。


令人啼笑皆非的是，許月鳳的網站“陵墓”還允許公眾人士進行各種拜祭活動，如掃墓、點燈掃香、祭酒、祭食、送花及點歌；每按一下活動的按扭，都會在許月鳳的“陵墓”前出現相關活動的照片。
展示最新祭拜情況
這個惡搞的“許月鳳之墓”在瀏覽者“拜祭”時，還會展示最新的祭拜情況，還注明時間及拜祭活動。
創立的人除了擺放許月鳳的參選照片，作為墓碑的照片外，還附加兩張分別是與選民交流及選民踐踏許月鳳照片的照片。
惡搞的網友還在網站上留言“安息吧！”。
這個名為“中國陵園墓產品展示网”公開給所有人上載前人的照片，以作為追思用途。不料，惡搞的網友竟然祭拜許月鳳。

http://www.000ly.com/admin_Main/moldPage/2.asp?buildObid=650

Limited Downside

WCT, Resorts, Genting, Bursa and Annjoo look like they have already hit the bottom and there are limited downside.

"Rule No. 1 : Never lose money.
Rule No. 2 : Never forget rule No. 1"
Warren Buffett

All these stocks have dropped 50% or more from 12 month peak. Hence, this provides us with a handsome profit when they rebound.

More importantly, they are backed by reputable management. Solid fundamental.

From technical points of view, they are in oversold region.

Black 5 Februray 2009 For Malaysia

I hates corruption.

We need a government who serve people with action, justice and ethic.

http://www.malaysiakini.com/
http://www.malaysiakini.com/cn/
http://www.malaysiakini.com/bm/
http://www.malaysiaindru.com/

Save Our Country. Uphold Democracy.

Happy Chinese new year!

i, finally, managed to closed my positions on 28/1/2009. It was quite hard to close the position due to the options low liquidity. Ya, i learn something from this trade. Liquidity is important. There was a big gap between its bid and ask price too.

Commission took a huge part of my profit. I think it is not a big problem as there are many cheap online brokers available. I still feel glad as i am able to make a profit (USD 80)in my first options trading.

For your information, now i am paper trading options using Optionsxpress Virtual Trade.

a trade on Options.

I am interested in trading US options due to its sophistication and low cost of online-trading in US market. Options allow us to profit no matter the market is uptrend, downtrend or moving sideway. But in my humble opinion, we need to learn higher skills compared to investing in stock market, if we really want to be successful in options trading.


On 5/1/2009, i paper traded Callaway Golf Cp (ELY). I bought a contract of FEB 10 PUT and a contract of FEB 12.5 PUT.

From the chart, we can see that Callaway Golf Cp is moving sideway. I bought the 2 put options when Callaway Golf Cp was near its resistance. There was DOJI appeared on its candlestick chart. Appearance of DOJI signaled uncertainty and it normally appears at resistance and support.





Stochastic is a powerful indicator when we expect a stock to move within a range. Stochastic indicator signaled a overbought situation.





RSI was slowing. +DI is neutral and ADX is slowing.





Although MACD gave a buy signal, i did not put much weight on it. I expected the current down trend of the whole economy was going to persist and I did not think Callaway Golf Cp would have enough catalysts to push the price above its resistance level.





I still have not closed the position as the whole market is still in downtrend. I plan to close the position of both contracts on 26/1/2009 (a day before Callaway Golf Cp earning announcement). Callaway Golf Cp is expected to release its earning announcement on 27/1/09 (before market opens).





Normally options will have higher implied volatility (IV) on days before earning announcement, thus, options will have higher value.





I would not speculate on its earning, but I really would love to close my position for a higher options value.






Currently, FEB 10 PUT value has increased a whopping 27% and FEB 12.5 PUT value has increased 23%. All these happened within half a month!


As 26/1/2009 is Chinese New Year, I don't think I would be facing my PC and updating my blog. So I would tell you guys the result of my position after that.





Enjoy Your Trading.

IJM

In 1984, three enterprising local construction companies - IGB Construction Sdn Bhd, Jurutama Sdn Bhd and Mudajaya Sdn Bhd - merged in a bid to to form IJM to compete more effectively against bigger foreign rivals.

i paper trade IJM at RM2.60 when DOJI appeared on its candlestick chart.

+DI is gaining strength, RSI in oversold region and there was a buying signal from MACD.

The price was sitting on its 14d, 25d and 50 day MA, thus giving IJM a very solid support. Moreover, its price is cutting above 14d MA. Ya, it is a buy signal.

For stochastic, it is in oversold region.

I also truly think Malaysia government will pump more money into construction sector in order to revive the economy.

Sold IJM at RM3.38 when there was DOJI, again, appeared on its candlestick chart.

I did not wait till MACD gives me the signal to sell as RSI, stochastic and bollinger band indicated overbought signals. RM3.38 was around IJM resistance.

This trade helped me to recover some of my previous loses on IJM when i still had not learn technical analysis. Technical analysis not just helps me recover my loses on IJM, in fact, i made some handsome profit too.

Technical on IOICORP

IOI Corporation Berhad is an investment holding company engaged in the cultivation of oil palm and processing of palm oil. It operates in five segments mainly plantation segment, property development segment, property investment and resource-based manufacturing segment The other operations segment is engaged in management and operation of hotels and resorts, landscape services.

i paper trade IOICORP at RM3.68 based on its technical and fundamental points.

From technical aspect, IOICORP is sitting on it upward-trending line. It is always better to buy a stock near it trend line. 25d MA is giving IOICORP a support

+DX indicator is pointing upward signaling uptrend is getting stronger. RSI is gaining too.

Stochastic is at around 30%, almost in the oversold region. Both redline and blue line are fight neutrally.

Trading volume is declining. This always happens when the stock is in consolidating phrase.

Although there is no confirmation from MACD, i paper trade IOICORP based on the fact international palm oil price did not manage to drop much although there is worry about the health of current world economy especially when US companies are starting to annouce their quarterly financial report.

Stop loss at RM3.44, Resistance at RM4.47.

Enjoy your trading. GOon