Skip to main content
Stock-Take Of Malaysian Counters

Weathered the May/June storm pretty well, did not drop as much but rebounded better than most emerging markets. The Securities Commission and KLSE were hell-bent on removing the arms and legs of Coper Aul's team, stocks linked to his group include Iris, Mobif, Satang Jaya, MTD Infra (for a short period, but apparently Coper Aul opted out later), Farm Best, etc... People ask me if the recent huge dumping in Iris and Mobif will affect Coper's fortunes. I think not, in most of the syndicates' strategy, you get in without putting much of your capital, especially with Coper Aul's reputation. Blocks of shares are usually signed off from owners to be pledged for margin facility for financial engineering. More funds are usually obtained via speculative investing groups, highly leveraged hedge funds or funds that do not know what "risk" is. At the end of the day when there is the dump, chances are they would have made a bundle already, if there's any baggage, shares will be given back to owners, margin facility in owners' names, or broking houses will end up with shares and margin facility unpaid.

Strong syndicates will make money all along the way, not just at final distribution phase. Accounts would have been set up in HK, Singapore, Thailand, etc... to place "contra-buy orders" at the right time, allowing the main accounts/funds to take them out at the appropriate time. Hence despite seeing the huge falls in Iris and Mobif, you can be assured that there are a smattering of accounts throughout the region and even globally with millions in contra profits sitting nicely. The fact that SC/Bursa are more determined to lop the heads off the main culprit should not be ignored, and will be picked up by other syndicates - SC/Bursa will make life very tough on those financial engineers. At the end of the day, the main accounts for Iris and Mobif probably did not make money after all the hoo-hah as the average carrying cost is quite high, as their operations was somewhat thwarted towards the end. "Main accounts" refers to the supposedly banker account with profits to be shared between owners and syndicate. Like I said, owners may not make, but betcha Coper Aul did.

Despite all that, Malaysian first and second liner stocks and the relevant indices largely ignored the calamity. This is good as institutions stayed largely away from bad stocks. The palm oil play has picked up momentum. Very interesting to see CIMB having the iron balls to come up with an IOI Corp covered warrant, but why is the delay in listing it... scared?? Assuming the conversion px is RM16.20, the company stands to lose buckets if they do not hedge properly. Particularly since there are already some top foreign broking research looking at IOI Corp possibly hitting RM25.00 within the next 12 months. On balance, there is momentum in palm oil rally, and does not appear to be overdone. The impact of biodiesel as a new consumer category has not been fully imputed.

For the rest of the year, we can expect good upside for big palm oil stocks, in particular KLK and PPB. Other potential favs for institutional investors will include AirAsia, Maybank, UEM World, Tenaga, Resorts World and B-Toto. On the shorter term trading front, new developments should attract trading activity in Konsortium and DRB Hicom.


Popular posts from this blog

My Master, A National Treasure

REPOST:  Its been more than two years since I posted on my sifu. This is probably the most significant posting I had done thus far that does not involve business or politics. My circle of close friends and business colleagues have benefited significantly from his treatment.

My Master, Dr. Law Chin Han (from my iPhone)

Where shall I start? OK, just based on real life experiences of those who are close to me. The entire Tong family (Bukit Kiara Properties) absolutely swear that he is the master of masters when it comes to acupuncture (and dentistry as well). To me, you can probably find many great dentists, but to find a real Master in acupuncture, thats a whole different ballgame.

I am not big aficionado of Chinese medicine or acupuncture initially. I guess you have to go through the whole shebang to appreciate the real life changing effects from a master.

My business partner and very close friend went to him after 15 years of persistent gout problem, he will get his heavy attacks at least…

PUC - An Assessment

PUC has tried to reinvent itself following the untimely passing of its founder last year. His younger brother, who was highly successful in his own right, was running Pictureworks in a number of countries in Asia.

The Shares Price Rise & Possible Catalysts

Share price has broken its all time high comfortably. The rise has been steady and not at all volatile, accompanied by steady volume, which would indicate longer term investors and some funds already accumulating nd not selling back to the market.

Potential Catalyst #1

The just launched Presto app. Tried it and went to the briefing. Its a game changer for PUC for sure. They have already indicated that the e-wallet will be launched only in 1Q2018. Now what is Presto, why Presto. Its very much like Lazada or eBay or Alibaba. Lazada is a platform for retailers to sell, full stop. eBay is more for the personal one man operations. Alibaba is more for wholesalers and distributors.

Presto links retailers/f&b/services originators with en…

How Long Will The Bull Lasts For Malaysia

Are we in a bull run? Of course we are. Not to labour the point but I highlighted the start of the bull run back in January this year... and got a lot of naysayers but never mind:

p/s: needless to say, this is Jing Tian ... beautiful face and a certain kind of freshness in her looks and acting career thus far

I would like to extend my prediction that the bull run for Bursa stocks should continue to run well till the end of the year. What we are seeing for the past 3 weeks was a general lull where volume suddenly shrunk but the general trend is still intact. My reasons for saying so:

a) the overall equity markets globally will be supported by a benign recovery complemented by a timid approach to raising rates by most central banks

b) thanks to a drastic bear run for most commodities, and to a lesser extent some oil & gas players, the undertone for "cost of materials" have been weak and has pr…