Wednesday, November 09, 2011

Quick Recap Of Current Market Conditions and Movers

What's with the local bourse ... has it gone off on a tangent? Has it suddenly realised that the Greece thing has nothing to do with Malaysia? Be that as it may, sometimes, it takes a spark to move markets. The spark may be Harvest, which basically expanded investors' imagination. How much more can it go, I mean, it has more than tripled and the go limit up some more. Even if you are injecting new attractive businesses into it, it bloody well be good, plus it must be cheaply priced. But thats a whole different kettle of fish, nobody seems to dare to come out and say that something is grossly not right. As long as they do not announce anything, Harvest can still go up ... read the sentence 3 times slowly.

I have heard so many stories and tips, and its been difficult to post anything because before I can write anything or do enough research on them, they go flying.

After sifting through the whole gamut of tips and hearsay, I have narrowed down to a few that may still present some upside from current levels:

a) Benelac - one of my shopping list stocks below RM1.20 ... I like the developments surrounding the stock, RM1.50-1.60 in the short term may be possible, long term holders should hold this

b) Hibiscus - I have gone and met with management last week, learnt a lot about their projects secured and their underlying decision making criteria. I like the projects a lot. Still, they have to strike oil, but I am thinking they have a 70-30 chance based on the superior technology, pre-selection of oilfields and underlying expertise. This is as good as it get for a oil and gas exploration project, and I have seen a number. Even before they strike oil, I think the stock should be closer to RM1.00. I might be the first to say it, but if any stock is going to triple up win 12 months, I would not be surprised if its Hibiscus. Don't put all your funds in it, maybe 20%, it would still be a decent investment proposition.

c) EAH - Did not move much after my posting, I am still highly confident of the stock's prospects. Sometimes it takes a sudden spark to move the stock to a darling status, EAH ticks all the boxes, low free float, well managed, Bumi- centric-government linked projects, forward thinking management. Hey, plus it made the list of Forbes top 100 Asian companies under $1bn ... it certainly must mean something.

d) HIL - Sleeping like a bear for the longest time, perked up like a tiger for the last week. Likely to have found a buyer and owner is only willing to sell close to NTA or above 90 sen... you do the logic and math.


Kingsmen said...

benalec is sitting quietly on a piece of real estate in sijangkang. Dont know if they own that property but major developments coming down that area in the next 2-5 years....

JL said...

Would like to thank Dali for the heads up on Hibiscus. Made a bit for my client on yesterday's run. Looking forward to more opportunities.

gwynwelsh said...

Was reading an article which appeared on Taikurs and Taikuns regarding Xingquan entering into a possible loan agreement with MBMR. It was said that MBMR will loan Xingquan RM50 million in exchange for its preferential shares as well as Xingquan giving out 35% of its future profits as dividends.

What do you think?

Mohammed said...

When punters get into a tizzy over gravity defying moves in worked counters, it is feeding time for the sharks of Bursa.

Losers may have to settle for kimchee instead of shark fin soup, lol.