Speculation Today

Silver Buy Call!

2013-07-05T01:07:00.003+08:00

I'm continuing my Silver buy call!

Also, I hope you guys have profited from my calls in Handal, and Kossan and many more.

Of course no one person can generate all perfect calls. As long as you have holding power, it shouldn't be a problem. In my humble opinion, TM is a company that is severely undervalued. It is the internet backbone provider, and should be taken more seriously in this day and age. Step aside Maxis and Digi!

My target for near term should be above RM6.00

Gold and Silver prices slammed, yet again!

2013-06-24T00:44:00.005+08:00

Those who think they are late to the game, time to get in before it's too late! Once the big players clear their massive shorts, the prices are going to skyrocket!

TM berhad

2013-06-15T01:06:00.000+08:00

A company to watch out for. Is severely undervalued for such a big company. With only over 3 billion shares traded, the company is currently valued below RM20 billion. I optimistically value the company at RM35 billion, which values each share at RM10.00 at the very least. Remember, this company owns and operates the country's backbone internet infrastructure, with substantial holdings by foreign Telco companies as well.

Internet + Cable TV = Maxis + Astro

Just do the Math. With plenty of room for growth in the Internet and Data business, as well as plenty of room for Cable TV growth, I don't see why the share price should remain low forever.

In an uncertain world economy, this company pays steady dividends, and operates in an almost inelastic demand business environment (would you be able to live without internet?), TM presents a good buying opportunity, and we can already see the funds collecting.

Nikkei Slide continues to impede on KLCI's advancement

2013-05-27T11:10:00.003+08:00

Nikkei Index

KLCI Trading Activity 27th May 2013

The Kuala Lumpur Stock Exchange continues to be impeded by Nikkei's fall this morning. Stocks in focus still encompasses the Oil and Gas sector. It has been a while now since Telecoms are in play.

and....Nikkei plunges, hits circuit breaker

2013-05-23T16:01:00.004+08:00

Nikkei Plunges 7.3%

Has the great crash begun? Stay tuned...

Bitcoin : Time to re-enter?

2013-05-22T14:32:00.002+08:00

After peaking off at around USD260 per Bitcoin, it fell to USD60-ish. Now trading at USD120 region, it is almost half of its value during its peak. Is it time to consider re-entry into Bitcoins? Recent trading volume has shown significant decline, but I see more and more reported acceptance of Bitcoins by retailers. While it might remain a novelty idea for sometime, this might be the defining moment for Bitcoin. With less trading volume, it could mean more stability for the cryptocurrency, a much sought after characteristic that business owners want. A stable currency is a good foundation to work towards being the de-facto alternative method to buy and sell online without big brother snooping around.

Bitcoin Chart; Uptrend Momentum?

That said, a great entry price would be around USD80 if anyone can get it. Perhaps Bitcoin is not so much of a fad after all!

Silver Crashing , as Predicted

2013-05-20T15:29:00.003+08:00

Silver Crash 20/5/2013, Charts from FXCM

Support Line indication at $17-$18/ounce

Prior to this, I did mention not to go all-in to buy silver just yet. Hopefully some readers followed my call. This morning, silver was slammed by as much as $2 !!! It was reported over the weekend that HKMEx was to cease trading and settlement to be made in cash.
Could this had been the reason? After all, the world's markets are rigged, just like any big soccer match.

Anyhow, prices are recovering as we speak. But, keep a keen eye on the mentioned support line.

Gold and Silver slammed: Another End Game Scenario?

2013-05-16T14:32:00.001+08:00

Silver Price

Gold Price

Looks like Silver is heading back to $22, and Gold is probably heading back to $1350 range.

I should advise on collection for Silver now, while Gold is a wait and see. Even so, only invest half of your intended amount, as the other half should be used incase if Gold and Silver broke previous lows. Be mindful that stocks for both precious metals could be limited, and don't take my advise as if. Do your own research.

On the other hand, the KLCI failed to break 1800, and as of today, is trading at 1770, down 12 points from open. There are some major profit taking, which is normal. I believe that the real condition of the economy : no real profits, lackluster demand; will begin to set in, and take its toll on unreasonably high valuation for some companies.

Upwards momentum in KLCI forged with high trading volume

2013-05-13T18:09:00.002+08:00

KLCI chart

At closing, trading volume of the KLSE stood at 2.8 billion units! That's right!
Crazy times indeed! The chart also shows potential upward momentum, with blue chip index stocks recording handsome gains. Second liners such as MRCB, DRBHICOM, E&O, DIALOG also made substantial gains, as well as related warrants.

Also, a little update on the US market. At Friday's market close for the US market, rumors floated on about the Fed considering tapering off their Quantitative Easing. Could this be the end of the road right here?

Over the weekend, it was reported that a SARS-related strain of virus killed 2 in Saudi. There were also two such cases in France. While the avian flu seemed to have not recorded new cases in China thus far, it seems that global population is facing an uphill battle against deadly influenza. Keep a keen eye. For now, I am still recommending a collection of Supermax Berhad shares.

Handal Resources Berhad (Stock Code: 7253)

2013-05-09T17:08:00.001+08:00

Hope you guys managed to capture gains from DIALOG, GAMUDA, MRCB, E&O, SUPERMAX and all my other recommendations. Of course, no one's perfect but my thorough background analysis should have helped to limit your losses.

Of course, in an upwards market anyone can claim to be a genius. So, in this latest write-up, I will cover a company that I've been following for sometime. Though I have not bought any shares in it, since I'm in such a good mood today, I've decided to share it with you guys out there!

Handal Resources Berhad (Stock Code 7253) have been trading very lightly since beginning of the year, peaking at RM0.45. Today it closed at RM0.395
With all the buzz that similar companies have received lately, such as the likes of TH HEAVY, and ALAM MARITIM, I thought it might be time for us all to have a look at Handal.

Handal Resources Berhad (HANDAL: Stock Code 7253)

For one, I like the name: Handal means "Smart" or "Skillful" in Malay. At the risk of sounding shallow in my analysis, its profit margins are quite similar as compared to THHEAVY and ALAM MARITIM. Also, I like the current price in which it is trading at, which presents a good bottom, and entry price.

At only 160 million shares being issued, and a market capitalization of RM63.2 million, this presents a really good opportunity and upside potential for speculators. Even THHEAVY is valued at RM500 million. Besides, Handal is trading well below its Net Tangible Assets Per Share of RM0.63

That said, with plenty of projects expected to be coming in, as higher oil prices will definitely drive more exploration for oil by the region's oil companies. Projects that are not economical when oil prices were low, are now worth the risk. Handal will be servicing these companies.

Anyway, more information here: http://www.handalresources.com/

Dow sustains above 15,000

2013-05-08T12:58:00.005+08:00

Dow index is currently hovering above 15,000! On Monday, KLCI broke 1800!
Could this be the beginning of the unprecedented bull run ushered in by unlimited money printing, coupled with lowering of interest rates?

Possible KLCI Downtrend ?

Currently trading (by lunch break 8th May 2013) at 1775.00, the index has to at least break above 1800.00 psychology level to prove a sustained rally.

If that happens, sticking to namely index pegged stocks should be a good play. Late comers can choose from stocks that have not went up yet; YTL, YTL POWER, PPB.
Speculators can take a look at related stock warrants.

Ready your chips, and roll the dice!

Aftermath of Malaysia's 13th General Elections

2013-05-06T12:41:00.002+08:00

After GE13: KLCI Climbs to All Time High

While the incumbent Barisan Nasional won this elections, they did it with a reduced majority. If the trend continues, by the next election, the Opposition might be able to prevent the incumbent from attaining a simple majority.

Nevertheless, the markets zoomed upwards to all time highs, by leaping upwards almost a 130 points on news that the incumbent, known to be pro-business had won. The market stabilized at +50 points at lunch break.

Most counters were up very significantly, that included mainly the banks: CIMB, Maybank.
As for Supermax, news of its owner supporting the Opposition party, drove down its prices another 5 cents to RM1.95

Though Supermax is purely export business, speculators continue to dump its shares on fear of potential blowback. In my opinion, this presents a good collection opportunity for the avian flu play. Not all is lost. This counter is severely undervalued.

CSL also had a mild rebound, as expected.

Keep Calm and Collected This Weekend

2013-05-04T12:34:00.004+08:00

Like any democratic nation, Malaysia too has to vote. Keep calm and do your thing.
While it has taken nearly 60 years for the opposition parties to come together and be a major contending force against the incumbent, Malaysians are not nearly as mature as many would think, yet.

Perhaps it will take another 10 to 20 years for Malaysians to actively engage each other "maturely" in political talk. By maturity, I mean being able to accept criticisms and not support a certain political affiliation blindly. To me, policies that can benefit the people, can come from either side of the political divide. Support constructive policies, and not the political branding alone. Support the candidate, and not the political party alone.

As for money politics, live with it. Malaysia's not the worst. Boy would it be fantastic to reduce political inclinations to spend money. But it requires a certain maturity in the peoples' mindset. Not when they readily ask for "benefits" every time they cast a vote. Vote for a person who might preserve your freedom.

As in the words of Ben Franklin: He who sacrifices freedom for security deserves neither

Speculating Psychology

2013-05-02T01:23:00.000+08:00

"Any tips on companies that I can buy?" is the question often asked to me.
I would often reply and give a few names, being lazy to further explain that it is not the right mindset to have. Infact, we might probably all agree that it is better to teach a man to fish, than to give him fishes.

Well...
Speculating is a life-long journey, and one must always be hungry to learn, to understand new disruptions in life. For example, who would have thought that is was possible to print your own art (physically), or your own magazine (for a rifle) using a 3D printer? It is the invigorating sense of you are not perfect, thus you must be better mantra that fuels every speculator's desire.

When I first started speculating in the stock market, I often ran out of ideas of what companies to buy. Nowadays, I have so many ideas that I almost never run out. So, how does one arrive on that ability?

There are many sources which I obtain my ideas from, business news being the last, these days. I highly recommend the broad understand of trends, before doing anything. This means, one should pursue the understanding of how the world works, and how it might work in a week, or few months from now. That includes the understanding of a little economics, business climate, and overall public sentiments.

Then you can slowly narrow down the types of businesses you might be in if you were an entrepreneur. Of course, having an understanding and ability to read technical charts, and candlesticks helps a lot in day to day trading ideas as well. I particularly love to browse around the "most active counters", and "top losers". When significant moves happen, it tends to signal to the market that something is "coming". Perhaps a buying opportunity, or a sell signal. One can then look for related news. That, in my opinion is how news should work to one's advantage. As for analysts reports, they only work to serve their masters, and most often favorable reports are only issued after a significant "unexpected" price movement or positive news developments.

A smart speculator must find out these things before it happens. Of course, if you have information from your "sources" then all these are probably irrelevant.

Just a thought.

Gold Price Rebounding

2013-04-30T01:01:00.001+08:00

Gold Price Rebounding : Live Charts from FXCM

So much for wanting to collect Gold at a much lower price! I've been recommending friends and family to collect at below USD1400, but looks like it is heading to USD1500 soon! Expect more volatility before it heads vertical!

The smarter strategy is to buy half of your investment amount now, and another half later. There might be a possibility of collecting at a much lower price, some estimates put it at USD1100. It is wise to bear in mind that most gold producers have a production price of around USD1200 to USD1300, and at current prices they are barely scraping a profit.
When prices are so low, they have to close shop and stop producing!!!

So, when shortages happen.....BOOM! Prices go VERTICAL. Make your own conclusions.

Malaysia Decides 5th May 2013, Money Printing to Continue Regardless

2013-04-27T23:37:00.001+08:00

Flags, Banners, Flyers are abound in the days leading to Malaysia's 13th General Elections.
While I don't particularly have a preference in any of the political parties, I would say that the focus would be on "Corruption Issues", followed by Economic Prospects. Whoever's able to address the issues, in my opinion will be able to fish the most votes.

Regardless, the printing press will continue to crank up more money to pay for unsustainable promises of state welfare, as well as other benefits. Don't worry, let the youngsters who are working pay for them, while the seniors enjoy for years to come. GE 13's results will be decided by mostly first-time voters. So, by forgetting to handout goodies to the mostly new voters, could the incumbent have made a grave miscalculation?

Start protecting yourself from uncertainties. Own global companies, with diversified operations and customer base. It's not a secret that I love Glove makers lately, not only for its defensive characteristics, but due to the "avian flu" outbreak. All signs are pointing towards an epidemic. Buy precious metals, buy good companies, and buy masks & rubber gloves.

Election Jitters, and My Prediction

2013-04-25T12:35:00.001+08:00

Well, in case you didn't already realize, the retailer market in Bursa is just pathetic.
Since people already expected a "bad" market since last year February, they have already left the market more or less.
A lot more lost money in Genneva Gold as well. Now that Gold prices have tanked, I wonder what they have to say for themselves.

Thus, the idea of investors selling off before elections, are quite "low in likeliness" as the funds have been supporting the market.
Foreign and local, all are buying and pushing the markets higher, as Malaysian stocks are considered "safe haven" historically speaking.
And our blue chip counters pay good dividends.

The search for yield highlights Malaysian companies' ability to stand tall during crisis.

Election jitters aside, even if incumbent loses majority, the market might still go up.
Why? The parties related to the new power will push it up, to show "the people's support"
If incumbent retains majority, the market will go up even more to also show "the people's support"

That said, you should be looking at worldwide situation where corporate profits are shrinking, and think to yourself, where else can funds search for yield?

Answer is "emerging markets" like Malaysia. Stay away from Airlines, and Property developers for now. Time to move in to more "defensive" stocks.

But definitely, own rubber glove counters.

Supermax Berhad & Other Glove Counters

2013-04-23T20:29:00.003+08:00

Since beginning a buy coverage on the primary glove counters in Bursa Malaysia, the prices have skyrocketed and fell back down.

Nevertheless, there's no signs that the avian flu H7N9 have subsided. Infact, number of infections and deaths have steadily climbed. Also, what caught my eye is EPF's (Employee Provident Fund of Malaysia) action of continuous selling of (Supermax Berhad) shares into the market.

Perhaps its just election jitters, something big is coming. Either way, investment banks are starting to upgrade Supermax's target price to at least 50% more than its current trading price. Also, the continual depression of latex prices, and lower than average fuel prices can only prove to benefit glove makers, helping to bump up its profit margins.

Today's post should also serve as a reminder that if this outbreak extends into an epidemic, stock markets will be expected to fall. Could this be the straw that breaks the camel's back? The world is already seeing falling factory productions and consumption. Some economists believe we are already in a depression. A severe epidemic like the avian flu will only serve to amplify the effects of the slowing economy.

Either way, Supermax Berhad, in my opinion will serve as a good hedge on the underperforming economy, potentially falling stock market, and avian flu outbreak.

If anything, BUY!

Gold & Silver Prices Rebound, Rubber Glove Counters rise

2013-04-18T23:24:00.001+08:00

After the historic waterfall tumble in Gold & Silver prices, it seems to have stabilized. Gold is again challenging the $1400 per ounce range, while Silver the $24 range. More news to come from Gold producers going broke. At such a low price, it is simply challenging to make a decent profit to pay for operations. Thus, logically this presents a good buying opportunity, as supply decreases in the market.

Also, recent increased reports of bird flu infections and deaths is not UNEXPECTED, when I made my buy call. TopGlove and Supermax made significant gains since my call. Further upside? Let's wait for it to fully play out. Now's just the beginning...

Supermax Berhad

TopGlove Berhad

While precious metals bombed, so did Boston

2013-04-16T10:55:00.002+08:00

The single-day biggest drop for Gold in 30 years? Boston bombed? Coincidence? Distraction? False flag?

One can certainly make a killing in the market, or lose his/her pants. I'm going to be holding on to my Glove counters, as talks of the avian flu going epidemic! My heart goes out to the victims of today's incidents.

Silver/Gold Prices & Recession

2013-04-15T12:24:00.001+08:00

Massive Waterfall in Silver Price

As Asian markets opened this morning, news of China and Japan's economy weakening drove prices lower than when US markets closed for the weekend. Gold should prove to be a superb entry between $1300 and $1400, while Silver should prove to be a superb entry between $21 and $25. Prices are just becoming too out of wack! Own physical!

Brent Crude Price

Oil price failed to breakout upwards, but instead is falling. Shortage of demand in many previously big consumer markets, could mark impending weakening market, paving the way to indicate that recession is already in place for many countries, and will kick-in for many more countries. However, it is worth noting that prices might still stay higher than 2008 levels due to increasing difficulty in petroleum extraction. The same is true for Gold & Silver mining. Ore qualities are diminishing fast, and coupled with higher oil prices, cost of production will stay high. Thus, low prices for both Gold, and Silver will not stay forever.

Gold and Silver prices slammed down!

2013-04-14T13:03:00.000+08:00

Gold Price Chart

A definite must-not-miss opportunity to really get into Gold and Silver investing. As of this weekend, Silver closed at USD25.85/oz and Gold at USD1477/oz

I previously mentioned that there could be a potential that Silver could hit a low before shooting upwards, in a short squeeze scenario. However, even at current prices, Gold and Silver has hit the support lines, and are at 2010 lows. Collection should be done now, but one should only invest up to half the amount they had in mind, and leave the remaining to collect at prices lower, should it go lower. Silver at any price below USD35 is a good buy, and Gold at any price below USD1800 is a good buy.

Predictions however put Silver at USD21 and Gold at USD1200-1300 range, should the support line be broken.

Silver Price Chart

My personal prediction is that Silver will be pushed just a little below USD25, to wipe out the paper contracts taking a long position, before the price heads upwards. Good buying opportunities for Gold & Silver in between the two support lines.

Bitcoin Hits $200!

2013-04-09T21:58:00.000+08:00

Meanwhile, in other news...Bitcoin has hit a high of $200!!!

For KLSE, watch out for:

1. WTK Berhad -Trading above its lows, but still way below previous highs. With fibreboard companies heading for highs (Heveaboard Bhd), WTK could prove to have further upside, trading at slightly over RM1.00

2. Supermax and TopGlove- With avian flu spreading like wild fire in China, it could prove to be a good bet, considering that today, prices fluctuated downwards, which presents a good collection opportunity. The last time the avian flu epidemic happened, prices of both Supermax and TopGlove rose multiple times. A sector to watch!

Update Thursday 11th Apr 2013

1. Bitcoins began to crash to below $100!!! At BTC-e it's trading at $60. So is it a ponzi scheme like many opponents have mentioned? One thing's for sure, I started out in Bitcoins just to speculate. Thus I didn't lose much. It's just play money.

2. Stay safe, and stick to REAL assets: precious metals

Star Publications Berhad (STAR)

2013-04-05T23:57:00.004+08:00

Looks like a good buy now that it has hit an all time low. Price has been quite stable on the low side. Buying activities are seen. Perhaps an election play coming? After all, it is linked to the Barisan Nasional component party, MCA.

Earnings from the previous financial sheet has projected upon me that earnings are improving. Moreover, Star is actively promoting their new jobs site. They are introducing a revolutionary new way for job seekers to gain attention of employers, via Visume (Video Resume). Job seekers can upload their pitches to improve their standing in landing a job.

So far so good.Additionally, the reduction in number of newspaper copies sold, is balanced well with The Star's online news presence, being one of the top sites that Malaysians visit daily. I also like this company due to it being held by strong hands (MCA, Big funds in Singapore). I expect some upside for this company's share price.

Have a happy weekend!

Malaysian General Elections

2013-04-03T23:32:00.001+08:00

So it's official!

Parliament is being dissolved, and some parties say that elections will be within a week or two!

The KLSE dropped 2 percent today, but managed to close green. Possible intervention by major institutions. After all, retailers have long since left the market. Any major selling or buying should be done by the big boys.

Now's the time to do some shopping. I would personally stay away from Telcos. Expected squeeze in earnings.

On the bright side, Litecoins have since risen from USD0.55 to over USD5.00 since the time I mentioned it.