Friday, 29 March 2013

Favco - Hitting The New High

As happy as Muhibah goes, Favco, one of the subsidiaries of Muhibbah, had started being actively traded compare to the usual time on the same day the mother company share price go up on 19th March.

Last friday Favelle Favco Cranes(M) Sdn Bhd, a wholly owned subsidiary of Favelle Favco received RM 78.8m orders for the supply contract for offshore cranes in February to March 2013. Looks like there are still many more goodies that is to be awarded to construction companies before the dissolution of the parliament. Beside this contract, I strongly believe that there is another project which is going to spin the share price is the 118-storeys high - Warisan Merdeka Tower.

As this tower is set to take over the Petronas Twin Towers as Malaysia tallest building, news regarding the application for the development order would be approved if the developer complied with six conditions in which the developer, as of now, only left one condition that had yet to be complied, hence pending the awarding of the contract.

Building such skyscraper will definitely need a crane. Looking at Favco group who owns the largest hammerhead cranes and luffing tower crane in the world, I won't feel surprise if Favco is being awarded for the project when the times come.
Let's had a technical outlook at the chart to have a clearer picture on recent performance of the share price.

Closing price of Favco today standing above the resistance of RM 1.79, getting closer to the 5-year high of RM 1.85. Once the resistance of RM 1.85 is break, the share price will test the psychology price of RM 2.00 which is very likely to happen coupled Muhibah effects and some insider trading and goodies bag that is hidden behind the company.

Short term looking, I am looking for the price to hit RM 1.90.

Cheers and Happy Trading,
Bone's Apprentice

Muhibbah - Marching on a Surprise March

I believe quite a number of speculator are making some losses on shorting FKLI as most of them thought that parliament is going to dissolve this week thus bringing some impact to the market. As they are waiting and waiting for the time to come, index continue to break into unbelievable digits as resistance level at 1630 looks like paper as the heavy weights push the index all the way up above 1670. Now I am wondering whether index will lift up to 1700 to form a double top, followed with a bear dancing on the stage right after the announcement of GE is made.

A surprise month I would say, not only for KLCI but for Muhibbah as well. As the group surprisingly announced two contract that had been awarded last week, i) Muhibbah Marine Engineering Sdn Bhd, has been awarded shipbuilding contracts by Jasa Merin Sdn Bhd worth RM216m. ii)Muhibah and its partners have bagged a contract to design and install noise barriers and enclosures for Mass Rapid Transit Corporation Sdn Bhd worth RM 202m.

Let's have a look on the chart as the share price tend to move first before any major announcement,

The price started to kick start at RM 0.87 two days before the first announcement made and the counter is actively traded on the announcement day. Today as the price close at RM1.22, probably it might take a rest and come back after the volume resumes to it's frying pan. I am looking at a potential pick up at any range from RM 1.16 to RM 1.20 which I believe the price will continue to climb when the volume come back again in the coming days. Should the project be a big and good one, we might be looking for the stock to hit RM 1.50, coupled with cronies effect as Muhibah is somehow heavily linked with politics.

My short term TP will be RM 1.35.

Cheers and Happy Trading,
Bone's Apprentice

Sunday, 17 March 2013

YTLLAND - A Breakout from the Downtrend

Recently, almost every week I will receive some rumors saying that when the parliament is going to dissolve with a date along with some reasons as well. However, it seems that the date of this coming GE still lies within a blanket of mystery for most of us. No matter how the GE is going to affect the market, I believe that there is always an opportunity in the market which is possible to bring us some handsome profit.

I have with me some handsome chart of which I had looked at which including some good properties counter here - YTLLand.

Let's have a look at the chart of YTLLand,

YTLLand just breakout from it's 1 year downtrend on 8th of March, and the price is maintaining above  RM 0.94 during the adjustment period after the surge up with very low volume. As long as the price is able to maintain at this level, i believe YTLLand will revisit RM 0.98 again after it break the current resistance at RM 0.94. Should the momentum be nice and good, I think YTLLand should not take a long time to hit RM1 and ride on subsequently.

My short term TP 1: RM0.94 TP: 0.98

Cheers and Happy Trading,
Bone's Apprentice

Friday, 15 March 2013

The Rise of the Black Snake

According to Chinese Zodiac, there are twelve animals for the twelve years of cycle in addition of five elements which are associated with their own "life force". 2013 is the year of snake, a water snake to be specified as the water is the associated for this year. Water represents flow which is the flexibility and fluidity and there is no certain forms for fluid, at the same time can also be very powerful. Snake, the first impression for people to it will be acute, cunning, vain and of course vicious. These characteristics making this combination determined a very unpredictable year. So i do hope that all investors will be more aware in this inscrutable year.

So far early of this year, this water snake already telling everyone that this year is belong to it through water related counter listed in KLSE. Gamuda touch RM4 as it might sell its 40% stake of SPLASH Holdings and Puncak is performing very well since Chinese New year.

Well, enough for the sharing of feng shui story. Now i would like to share some counter which is on my watchlist. 

Gtronic has been improving their net profit for the past three years and giving out around 8 cents of dividends. This counter has been quiet for 2 months after the two active traded day in January while the price is maintaining at the level between RM 1.70 and RM 1.80. For the past 3 trading days, it has breakout from this range and standing above it. If this is not a false breakout, i am targeting the price at RM 2.00 

Another counter i looking at is EDEN, let's have a quick look on the chart.

The volume spike up on 1st of March, although the candlestick on that day might be indicating someone disposing the shares on that day as we can see a shadow on it. However, the RM0.275 seems is a good support and the chart is maintaining it's patter. My short term TP will be RM 0.32 but advise to cut loss if  it break the support of RM 0.275

Cheers and Happy trading,
Bone's Apprentice

Friday, 1 March 2013

Movie Review - Spiders 3D

Rather than staring at the stagnant screen in the laptop, I had a chance to stare at some of the moving screens in the cinema - Spiders 3D. Frankly speaking, the title says it all, as I am expecting something like Anaconda or Jaws, Shark Night kind of movie again with some bloodshed and mutated animal attacks towards the human being.

This time around, I am keen to see what kind of spiders that this movie is going to bring about, and of course, I would say that the poster that had been posted all around the shopping malls and cinema had been rather quite captivating to say, however.... everything is not perfect when there is a "but".

Well, at the initial stage, things are rather alright with Mr Jason working with New York Trans, and in the midst of divorce with his wife which is a scientist cum doctor Rachel. Everything seems to be fine and good, but not until the story starts to get stupid and more and more stupider when the plotting goes from bad to worst. Mainly contributed by illogical stuffs, lousy plot, bad acting and the frequent screen switch which is destroying the feel.

I feel that the director are definitely cutting a lot of cost in this production. My bad feeling starts when I am expecting some good blast and fire cracker coupled with a good amount of havoc in the city when the satellite piece feel from space, the screen is cut and switch to the office scene rather than giving the viewer a sight of how the satellite piece land on the road and penetrate down to the tunnel. I am actually expecting for something like a blast in the Transformer series screen, or at least some kind of Die Hard series kind of explosion would be good.

The quarantine of Jason daughter is brainless. Why she needs to be quarantine? And the actor really lacks of emotions. The spiders in the movie are created in a biased manner - Spiders will do jumping attack on soldier but not on the actor and actress throughout the whole encounter. Oh, not to forget about those soldiers that are stupid as well and don't know how to act like a professional soldier at all, you have to see it to believe how a normal person can out beat a soldier - And that is stupid.

Overall, the show is kind of lousy with lousy digital animation. Then Spider Queen that is outside the city is so big, but when it is inside the tunnel, it is so small - Out of scale (Fail).

Well, one of the good special acceptable point is that the spiders are protected with good armors which can be considered as bullet proof.. But what about bombs, shells and missile??? Even Godzilla will get defeated after severe bombing, shelling and eating some missile. This must be one of the holy crap Spiders I would to say. Hahahaha.

The show is so stupid that the ending takes less than 1 minute in my personal feeling. The Spider Queen got killed in a train crash + explosion inside the tunnel, everything is a goner including the nest, and the actor amazingly came out from the tunnel without any suspense, hug the wife and daughter, and that's all. Show finish.

Bonescythe Overall Rating 1/10

Cheers and hope you don't bring too big an expectation when watching this... Budget Movie? Ouch..