Good Stories, But Not Right Now

When market is heady, there will always be stories, fundamentally based or otherwise. A good dealer or remisier should have with him/her handy a black book which tabulates all the rumours and stories going around. This will enable them to immediately comment or try to explain should anyone asks about a specific stock. We need to quickly do the math and our homework on any plausible stories - that's value add, we owe it to ourselves.

Even though stories may be enticing, but stories and rumours will always be there, especially during a bull run. Of course not all will be remotely true, if you can get 20% of them turning out to be true, that's a good hit rate already. Even if you have narrowed down to the 20%, the timing has to be right, the entry price has to be right. Trading during a bull market is not a buy-and-hold thingee.

Hot Whispers

DNP - Supposed to be worth RM2.80 as new property launches is thought to make it trade at a forward PER as low as 4x (Thematic play, hit and run. Already trades past its NTA of RM2.00, gotta be careful, although its RNAV is supposedly much higher)

N2N - Trading looks suspicious today, probably to announce 1Q2007 results very soon. Results expected to more than match the entire earnings for 2006 (A timing stock)

Time/Time.com - DIGI to buy the company (Maybe for the broadband but makes sense as it will dilute the Telenor stake automatically without requiring the foreign telco to sell down DIGI, high believability and sensibility)

LBS - Phhhttt Stock (The sound you make when you purse your lips and blow hot air out, from now on these will be identified as Phhhttt Stocks)

TWS Corp - Privatisation being hit by UMA, privatisation to win out in the end

PA - Phhhttt Stock

ECM - A lot of cash in the company, could be in for a very special dividend plus strategic senior mgmt, looks ok still

YTL group of companies - Owner bitching about overall low valuations of companies, some foreign IB looking at books and advising, may take some private to relist elsewhere (But dear-me, should remember our roots right, if you did not make your money early on from this country you would not be where you are now, now you can complain about low valuations, geez and my diamond shoes are biting into my heels as well, when drinking water must remember the source ... but the group stocks will be in for a major push upwards, albeit financially engineered like Maxis)

AsiaEP & EbWorx - Best from Mesdaq with involvement of foreign funds and IBs to leverage the companies further afield

Pelikan - Running on sale of Konsortium stake, not exciting enough

Markets overall look a bit edgy, KLCI would be down 20 points if not for Maxis. Volume and value traded diminished and that is not healthy for a market staying around its all time high.