Wednesday, November 03, 2010

Commentary On Hot Stocks



Mind you, this is not a commentary on stock you should be buying or selling on fundamentals on a 6-12 month view. This is just a passing commentary on certain hot stocks for trading purposes. We all know we would not be the earliest to discover a breakout stock, but price movements analysis coupled with some basic fundamentals research would yield much trading information.

The key is coming to the conclusion whether there is sufficient further upside, or limited upside for trading purposes.

Kuchai Developments - No need to bore you with details, the key is whether there will be a G.O. or not. Without a G.O., you will not be able to realise much of the NTA. Assuming the NTA is RM2.36 - if you assume there is no syndicate play here, then the controlling shareholders are collecting. The way the share price is holding above RM1.50 may indicate much of the shares collected have not come back to the market. I would have triggered a good trade below RM1.30 as the upside was substantial. At RM1.60, the upside is still there but we don't really know what is actually going to happen. If you must trade from here, trade small.

Maju Perak - This is a classic strong trading buy. A sleepy stock forever but with enormous NTA at RM1.36, mostly land kept for development all over Perak. They have restructured the company over the past few months and have started a joint venture to go into residential development. The sharp jump in volume and price indicates either a syndicate play just starting or something more substantial. Do you dare to initiate a syndicate play with a vehicle owned by Syarikat Perbadanan Perak??? They own over 65% of the company and there's about only 130m shares. I would tend to favour the opinion that something substantial is in the works, which would make this a pretty strong trade as things seem to have just started.

K One - There was a good jump in volume in the day leading to the announcement of their spectacular quarterly results. Surprisingly, the anticipated sell on news did not happen. I like the way the stock price still held up. There are sources that say that there will be more significant corporate developments in the coming days. Good trade rating.

YTLe - This one is hard to value. Looks like they will get a chunk of the 'pie'. The higher it goes, the riskier the trade. Compared to the cash they hold, this company is getting seriously in the over exuberant category above RM1.60.

SP Setia - When I put this as my best pick for a 6 month hold, I am sure most would have gone into the warrants. That would have chalked up a return of more than 100% in less than 2 months. If you wish to hold or buy more, indications are still good for further upside. Sometimes good memory will get you to keep 100% gain but lose out on 200% gain. Despite the recent surge, indicators still good for a trade or hold.

Kinsteel - Looks good if you can get around RM1.00. It looks more like a 2-3 week hold trade rather than a contra type trade.

NOTE: The above opinion is not an invitation to buy or sell. It serves as a blogging activity of my investing thoughts and ideas, this does not represent an investment advisory service as I charge no subscription or management fees (donations are welcomed though). The content on this site is provided as general information only and should not be taken as investment advice. All site content, shall not be construed as a recommendation to buy or sell any security or financial instrument. The ideas expressed are solely the opinions of the author. Any action that you take as a result of information, analysis, or commentary on this site is ultimately your responsibility. Consult your investment adviser before making any investment decisions.

15 comments:

offstonee said...

Totally agreed with you regarding Kuchai.

HeeHow said...

Kuchai has denied any corporate exercises. Does that mean someone else has been accumulating?

offstonee said...

Denial means nothing until proven otherwise.

Choong said...

Well done again. MjPerak is on the roll.

Choong said...

Well done again. Mjperak is on the roll.

thegame said...

Hi that was risk free advice.Please do it more often and i promise you will not be held to ransom if it works adversely.thank you mr nice guy.

jeremy tan said...

Thanks Dali, went in for MJPerak at RM0.45 50000 shares. Sold at RM0.60m

If I have the chance I would buy you dinner. Do let me know : )

Buyer said...

Luv you S.Dali!! No worry I am definately not a homosexual guy!! LOL

Really appreciate if you could teach/share more on how you shortlisted those stocks from ~1000 stocks from KLCI!! By catalyst? volume?

Pls shows us some skill of "fish catching" la.....

JL said...

Need a physical address to send a bottle of unassuming wine. From wineactually.com of course.

Salvatore_Dali said...

JL,

Just leave the bottle at HAJIME Restaurant for S Dali. Once done, let me know.

kl said...

You almost made me break my promise not to do short term trades. Unfortunately, I held on and watched on the sidelines as MjPerak broke upwards. Good show. Only now I remember what they say about promises and how they are meant to be broken. Next time, maybe.

Wilson J Q Quah said...

yowser, I have faith in sp setia

lycanthrope said...

wad bout LCTH?

HeeHow said...

Is the sun rising on UEM Land? Looks like UEM Land will be the hot stock for next week.

H&H Restaurant & Catering said...

Hi Dali,
At current levels for Kuchai, Mjperak, Kinstel & Lion Forest, do you think there would be anymore upside for a hold? The falling price and low volume for these stocks seem to indicate that these are no longer hot stocks.

Thanks.