Thursday, 25 July 2013

Supermax - Bursting to Super Growth

Our local share market had not been seeing any slow down in terms of digit while our KLSE continues its journey towards the north in hitting and breaking the 1800 mark, and since then, had not been any sight of stopping for a U-turn, but rising up towards 1810 as well. I had to agree that our local market is seemingly easy to be handled by a few big corporation and cronies.

As we had seen how construction counter had taken a consistent ride contributed in a major manner with the current mega projects like KVMRT, big infrastructure like KLIA 2, highways and other government projects, while Properties counter had been recovering as well, probably it might be time to look into some fundamentally well counter which had not taken a spike upwards.

It came to my interest to look at Supermax (Supermx 7106), a prominent rubber gloves counter which had been rather laying low during the bullish season in the market while her counterparts like Kossan and Hartalega had been busy trying to break through some season high. What could be waiting for Supermax now?

Let me show you some interesting charts in Supermax.

Looking at the chart in a very layman term will be seeing huge volume of shares being transacted in the market accompanied with some bullish white candles, indicating a huge interest in the share as we can see the black candles are basically accompanied with somehow a low volume in the market.

While what I can see here is that Supermax will be taking a consolidation in the price as to shake out some impatient customer in this process, this will be a good time for some good accumulation as I would be able to foresee that once the volume of the share resume towards more than 5million share traded, then that will be some good moments for the share to see at least another 10 % to 20% spike upwards.

And with it's increase performance on the first quarter on the back of a revenue at RM320million, I would believe that the following quarter will be consistent with their order books well booked around the year as there might be more pending good news to be released in the market soon.

In a short to mid term basis, I would think that Supermax will be able to test RM 2.50 in no time over better performance.

Bone short term TP: RM 2.30

Cheers and Happy trading

Tuesday, 16 July 2013

Redtone - Stay Tune for the Tone

Property and Oil & Gas sector is the darling of investor in market for the moment, but there is still some counter awaiting to explode in other industry as well. I believe there will be something to be announce in Telco sector base on what I can see on the movement of the share price. But which Telco counter to punt in? Of course I am not going to pick those heavyweight, perhaps those small player of the industry will have a better potential.

Gpacket, had try to break it's resistance at RM 0.45 and now is consolidate at it strong support currently. Another company in this similar industry, a solution provider of broadband and wifi for organisation, being one of the major wifi infrastructure builder in the country now has caught my attention on it. The recent spike on the share price is mainly due on the transaction of the Royal Family of Johor and Tan Sri Vincent Tan.

Before the activities of Tan Sri VT and Royal Family of Johor being transacted, the share price is building up slowly with relatively increasing volume compare with previous 3 months. Is this what the director trying to do before they sell their stake off? Well, the person they dealing with is VT one of the major player in the market. Don't mess up with him and never ever try to do so.  

Let me show you on the chart to get a better idea on the recent activities.

The share price is trading in the range of RM 0.685 to RM 0.72 with immediate support at RM 0.65. With low volume transacted for the past 6 weeks, it seems tend to get out of the sight of public. When the volume return with around 7 million shares transacted, I believe it the time for the share price to wake up as well. I expecting the share price will be recording a new high again at RM 0.80 and climbing back to RM 0.98 in coming weeks.

Cheers and Happy Trading,

Monday, 8 July 2013

Perdana - Brewing with Black Oil

What is coming up next in coming week? This should be one of the very common question for trader to ask during the weekends before another new week start with full of question marks. Are we going to expect a wave of profit taking or the momentum will continue in breaking into new heights?

While gold had been plunging a lot from it's peak, shedding billions in value, some analyst are trying to portray a mighty bear trying to unseat the weakening bull. Of course for any typical Asian, there are still investor/trader that will be buying the metal if they see the price continue to drop. Who knows they will hit a good jackpot when hot money from equities start to flow back to this shining metal in the coming days?

While one of the hot topic had been with something to do with bank's loan to property market, there are also talks on the rising price of crude oil in reaching a expensive mark again as crude oil has break through the psychological price of USD 100 per barrel.As of this, probably I would like to bring to your - Perdana, which could be one of the counter that might see some good breakthrough as well.

Perdana, involved in upstream oil and gas industry, had been holding on it's strong uptrend since August last year. Let's have a quick look on the recent chart.

The stock had started to rallied back then when it is still at it's RM 0.60 range back then at August 2012, and the trend had not taken a major set back with the rally continuing up until RM 2.00 and took a dip with the overall market sentiments. The big question is - Is Perdana finished at RM 2.00?

As we can identify a few turning point which is quite visibly taken on RM 1.60, RM 1.90 and RM 2.00, I believe at RM 1.90, with volume consolidating for the past 6 trading days with a good price being maintained at RM 1.90 range, the stock is still highly positioned to challenge the RM 2.00 mark and breakthrough RM 2.00 again. On the other side, the overall market momentum in this industry is hot enough to keep even MISC rolling up again. Looking at MHB, SKPetro, Dayang, Coastal, Perisai, Scomi, THHeavy, I would believe that Perdana will be poised to challenge RM 2.00 in no time and will be looking at sit around RM 2.10 in the coming days. For a longer tenure, I would foresee that Perdana might be able to secure it's position in RM 2.50 while waiting for a next flight of good news to maintain and roll it's value higher.
Bone Short Term TP : RM 2.00

Have a nice day and happy trading

Friday, 5 July 2013

Gadang - Ripe For Ride

The market had been rather unpredictable after the 13th GE which had saw many of my comrades being slayed alive from the shorting of FKLI as they are expecting a major fall based on the previous result in which BN failed to retain 2/3 majority. As we had seen major market over broad had been shedding off some gains in the previous rally, the local malaysian market had been rather holding off at above 1750 as we are expecting the market to continue to hold until UMNO next AGM.

As we had saw many property counter had been doing real good and putting up gains in few folds, I would like to bring to you an unexploited counter that had rather a full potential in the coming days to see it blasting over the sky.

Gadang holding berhad, a construction company which had a good diversity on infrastructure development, properties development and also involved in OnG infrastructure development. The recent cash bag which saw Gadang banging on a more than RM 1b project on affordable housing project will see their account rolling on more revenue and attracting more investor into looking at the company now as we might see a growth in the company revenue as their machine are starting to pile the ground and move the earth soon.

Gadang had been active in its field in construction all along but lying in a low profile all the time. I would believe that it should be the time for Gadang to see its share price starting to reflect its value beneath as I show you the recent chart in Gadang.

 As in the past, Gadang trading volumes hardly see it surpassing the 5 million shares traded in a day, while most of the time is just lying flat and not active, but not until now which we had seen more than 15 million being traded in a single day which had marked the time where the stock will be on it's sparking moment as we will anticipate rows of good news to be digested by the public.

Looking at the chart, we might be able to see a simple consolidation of the volume in several stages, accompanied by the consolidating prices at the range of 80 cents. I would believe that when the volume resumes, packed with the solid fundamentals and recent bagged in projects and their own residential project at Sg Besi namely The Vyne that is soon to be recorded in to their book with an estimate of more than RM 800m in GDV, I would be looking for Gadang in reaching RM 1.50 to RM 1.80 in the coming stages.

Are you still deciding to be in for the ride or join the ride? You decide!

Bone Short Term TP : RM 1.00

Best regards and Happy tossing.