Monday, July 13, 2009

Market Commentary

Just looking at the markets today, some may not know what to make of it. Its like uncertain and the energy is misplaced and incoherent. Looking at the leaders board, Konsort has raced up the volume list, the stock that links it up is Pelikan. They have a mutual substantial shareholder, look it up. There are talks that Pelikan is being planned for a MBO or a private equity buyout (part of the reason why I highlighted it as a buy below RM1.00). Both should be OK for a swift trade. Not encouraged, only for smart and savvy traders who can move in and out quick by looking at volume and trends.

The other thing one can surmise from the gainers is that the realignment caused by the "new" FTSE-KLCI 30 index, which I have highlighted as "very important". The adjustment process favours certain stocks which takes out some of their free float capacity. Hence look for firm support for Tanjong and Commerce.

Some strategic accumulation can be seen in IOI Corp, which looks to me to be a good base building level, or some "substantial shareholder" thinking that this is the "right levels" to accumulate strongly.
Fergetabout UEM Land or Tebrau, never liked their run up as the story is still wishy washy. No follow through, corporate plans all habuk, tarak api punya. I don't like many stocks now as I think markets do look tired, but if you point a gun to my head to force me to buy one stock to hold till rest of they year, I would probably say E&O.

p/s photos: Elanne Kong & Janice Man


hng said...

With current uncertain market, stay defensive but still retain at least 60% invested. Consistent earning (eg. Tanjong), REITs (eg. ARREITs)and stocks offer higher dividend (eg. keladi) are my preferred choice

hal-2050 said...

You wrote:
"Fergetabout UEM Land or Tebrau, never liked their run up as the story is still wishy washy."

These 2 plus a few others like KNM, Equine, Kinsteel, etc, which have high daily volume, appear to be the favourite hit-n-run vehicles of savvy, professional daytraders (comprising mostly, I suspect, the in-crowd like remisiers, stock brokers, and fund managers, all of whom enjoy very low transaction fees) who make rapid-fire in-out trades and are happy to make a 1-sen or even half-sen profit.

For example, taking a 2,000 lot stake will net the player a cool RM1,000 profit (before deducting transaction costs) even if the counter goes up by just half a sen.