Wednesday, March 31, 2010

Another GLC stock, similar to MYEG. BOUGHT 10,000 RCECAP @ 0.665

RCECAP business model
- provides loans to civil servants and, through a comprehensive approach to repay the money deducted monthly.

Pay Rise, Better Economy
PDRM pay increased
- PDRM's salary adjustment made 98,747 personnel happy with each pocketing home RM1,500-RM6,000 depending on rank and the salary matrix schedule.
- Malaysian Armed Forces'(ATM) request for a salary adjustment.
- New Economic Model(NEM), with ambitious GDP growth.

Stock Focus (see graphs)
- Frequent spikes
- Supportive recent announcements
- Strong Fundamental (increasing revenue + profit)

Thursday, March 25, 2010

What's my stand?

DOW JONES is moving forward with steeper momentum this time compared to the uptrend last year (see chart). Bernanke has reaffirmed his stand again last month that the interest rate has to stay low for a lengthy period to counter unemployment rate..

On top of that, DOW JONES will be releasing financial quarter reports next month. We definitely will be seeing at least equivalent good or better quarter reports.

Moving east to Asian countries, we see some measurements have been taken to cure these countries from inflation. In another words, Asian economies are doing too well for too long, and not going to wait for the western countries for recovery.

Back home, Malaysia hiked its Overnight Policy Rate (OPR) from 2.0 to 2.25 few weeks back. This step was taken to normalize the economy to calm down the strong economy growth. BNM expects a grow between 4.5-5.5% this year. Commodity like crude oil, cpo, rubber..etc. are back on high demand.

Well, we are still far away from the OPR rate of 3.5, which was steadily set before the economy crisis. OPR hike of just .25 is a long term remedy to slow down the economy growth. We won't feel it until a few doses being injected. (many months later...).

Unclepicks still thinks that the DOW JONES will further strengthen especially for the months of April-May, in conjunction with the quarter report releases. Also, locally, we will have New economic model (NEM) announcing end of the month. As usual, the big boss DJ will create a nice sentiment for the global markets to follow. Some small/mid caps in BURSA with solid fundamentals are gaining momentum, and quite attractive at the moment.

Let's hope there is no surprises, similar to Dubai or Greece problems happening in coming months.

Wednesday, March 17, 2010

Will China surprise the world?

Interesting article:
China property bubble is worse than it looks

A lot of cash is generated to the rich, and the poor has no way to go, but to get poorer.

Tuesday, March 9, 2010

SOLD 5,000 YTLPOWR-WB @ 1.020

Sold the last 5,000 YTLPOWR-WB bought in November 2009. ~5 months gained 5.7%

Monday, March 8, 2010

SOLD 3,000 YTLPOWR @ 2.300

Sold all YTLPOWR at 2.300, remainding 5,000 YTLPOWR-WB.

YTLPOWR has moved from 2.150 to 2.300 without taking a breath for the last 6 trading days. The uptrend is too steep. Will buy back when it retreats.

Bought Price: 2.170 (October 2009)
Sold Price: 2.300    (March 2010)
Dividend received: 0.0938 (Total 3 dividends)

Total return from YTLPOWR in 5 months: 10.3%

BOUGHT 15,000 MYEG @ 0.430

Bought MYEG at 0.430 in anticipating a "feeling good" sentiment. MYEG has stabled > 0.40 since May 2009. Take a look at the quarter reports, revenue, and profit not just solid, but improving. 52 weeks low 0.370, high 0.560. Two spikes spotted on Oct 2009, and January 2010. A solid GLC company selling you at PE 13, good deal?

Where are we heading?

Bursa raced for another +15 points last Friday after OPR was raised 25 basis point. Petrol subsidy system was scrapped. More good news are expected for the people, especially for East Malaysia as the Election is near  ;=)

On the other side, DOW JONES has been slowly marching to the NORTH. Positive jobs data released last Friday added another +122 points for the DOW. Unclepicks is optimistic. DOW JONES has to catch up with the strong financial quarter reports released last month.

Tuesday, March 2, 2010

SOLD 1,000 MAXIS @ 5.460

Maxis EPS dropped to 6.70 from 8.20. Selling MAXIS to balance cash ratio.

SCOMIMR fell sharply yesterday. Unclepicks will not hesitate to buy again at ~0.35 . Have you forgotten that SCOMIMR profited S$61.5 million from selling CH Offshore? What will happen to the coming quarter report?

Monday, March 1, 2010

Quarter reports

FAVCO, LHH, YTLPOWR = good quarter reports.

MUHIBAH, IJM, SCOMIMR, HUAAN = so so quarter reports, but sustainable.

*SCOMIMIR's huge loss was affected by goodwill impairment loss(one time off).

Market has no direction. But, one thing for sure, only dispose your stocks during a good rally. At this sideline time, just do nothing when there is nothing to do.