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Wednesday, January 18, 2017

CMSB: Next Upleg Has Just Begun

In early December, I posted on the rebound in earning for CMSB (here). The improved earning - due to a turnaround in its associate OM Material - led to a rally that propelled the stock to break above its downtrend line slowly climbed up to around RM3.80-3.90.


Chart 1: CMSB's daily chart as at Jan 18, 2017_10.45am (Source: TradingView.com)

Yesterday CMSB broke above the strong horizontal line, AB at RM4.00 on big volume. This morning, we saw a follow-thru in the buying which led to further increase in the share price.


Chart 2: CMSB's weekly chart as at Jan 18, 2017_10.45am (Source: TradingView.com) 

I believe that this could be the beginning of the next upleg for CMSB as the market anticipates higher earnings from the Group from higher contribution from OM Material as well as its cement & other building material divisions due to the start of the Pan Borneo Highway. Based on technical breakout, CMSB is a good trading BUY, with immediate resistance at RM4.70, RM5.00 7 RM5.40. However, CMSB is also a good stock to consider for long-term investment due to its exposure to the growing Sarawak economy.

Note:

I hereby confirm that I do not have any direct interest in the security or securities mentioned in this post. However, I could have an indirect interest in the security or securities mentioned as some of my clients may have an interest in the acquisition or disposal of the aforementioned security or securities. As investor, you should fully research any security before making an investment decision.

Monday, January 16, 2017

Magni: Next Upleg Could Have Started

Magni broke above its "horizontal line" at RM4.38-4.40 today to close at RM4.54. If the share price can stay above the breakout level for next 1/2 day(s), Magni may continue with its prior uptrend. As noted in my recent post, Magni's financial performance has been very impressive in QE31/10/2016. Based on technical breakout, Magni - a good long-term investment- could well be a good trading BUY too.


Chart 1: Magni's weekly chart as at Jan 16, 2017 (Source: Chartnexus)


Chart 2: Magni's monthly chart as at Jan 16, 2017 (Source: Chartnexus)

Note:
I hereby confirm that I do not have any direct interest in the security or securities mentioned in this post. However, I could have an indirect interest in the security or securities mentioned as some of my clients may have an interest in the acquisition or disposal of the aforementioned security or securities. As investor, you should fully research any security before making an investment decision.

Saturday, January 14, 2017

Compiling A 8-Quarter P&L Table

Today I have posted my second instructional video on YouTube. In the first video, we looked at how to study quarterly result announcements on Bursa Malaysia. Once we have identified a stock that's either performing well financially or trading at an attractive valuation, the next step is to study the stock or the company in greater depth. I would normally do that by constructing a 8-quarter P&L table- which is the objective of this 2nd video. The link to the video is here.



Thursday, January 12, 2017

JAKS: Next Upleg Has Begun

JAKS is a pipe-maker and one of 3 Malaysian companies that has secured an IPP contract to build a power plant in Vietnam. The other 2 companies are Toyo Ink and Teknik Janakuasa (a subsidiary of Malakoff).

On January 10, PublicInvest Research called a BUY on JAKS witha fair value of RM1.50 (here). This has prompted the stock to rally yesterday above its horizontal line at RM1.09.

If JAKS can stay above the resistance-turned-support of RM1.09, then JAKS could be a good trading BUY.


Chart 1: JAKS's daily chart as at Jan 11, 2017 (Source: Chartnexus)


Chart 2: JAKS's weekly chart as at Jan 11, 2017 (Source: Chartnexus)

Note:
I hereby confirm that I do not have any direct interest in the security or securities mentioned in this post. However, I could have an indirect interest in the security or securities mentioned as some of my clients may have an interest in the acquisition or disposal of the aforementioned security or securities. As investor, you should fully research any security before making an investment decision.

MBSB: Next Upleg Has Begun

MBSB broke above its downtrend line in September last year. It then traded sideways for the next 3 months. Yesterday it broke above the horizontal line at RM0.96.

If MBSB can stay above the horizontal line at RM0.96, it may be a good trading BUY.


Chart 1: MBSB's daily chart as at Jan 11, 2017 (Source: Chartnexus)


Chart 2: MBSB's weekly chart as at Jan 11, 2017 (Source: Chartnexus)

Note:
I hereby confirm that I do not have any direct interest in the security or securities mentioned in this post. However, I could have an indirect interest in the security or securities mentioned as some of my clients may have an interest in the acquisition or disposal of the aforementioned security or securities. As investor, you should fully research any security before making an investment decision.

Wednesday, January 11, 2017

Adenan Satem: A True Malaysian Leader

I'm deeply saddened by the sudden demise of Sarawak Chief Minister, Adenan Satem. In his brief rule as the Head of the Sarawak State Government, Adenan has shown us what it takes to be a leader in a progressive multi-racial, multi-religious society.

When you lead the Government, you are no longer the leader of your party or your coalition or your race. You have transcended to be the father of the state or the nation. As a father, you must act with fairness towards everyone. Many of our leaders failed in this test. They failed because they bowled to the pressure & the heat from their party, their coalition & their people and, thus, were unable to do the right thing for all the people and the state or the nation. If Malaysia ever hopes to progress as a developed nation - with a united citizenry - we must find more leaders like Adenan Satem.

Thank you, Adenan Satem. May your soul find eternal peace!


Via Malaysiakini

Tuesday, January 10, 2017

CPO, WTIC, USD Index & USD-MYR: All Looking Toppish

CPO (closed at RM3220 today) looks toppish on the weekly and daily charts. If CPO drops below RM3114, Parabolic SAR (SAR stands for 'stop-and-reversal' indicator) would move above the CPO price and signal a reversal in CPO prices. This may coincide with a strengthening of MYR.


Chart 1: CPO's weekly chart as at Jan 10, 2017 (Source: ifs.marketcenter.com)


Chart 2: CPO's daily chart as at Jan 10, 2017 (Source: ifs.marketcenter.com)

WTIC also shows signs of weakness. It is likely that WTIC may pullback towards the uptrend line, SS at USD46.


Chart 3: WTIC's daily chart as at Jan 9, 2017 (Source: Stockcharts.com)

Rising crude oil and crude palm oil prices over the past few weeks failed to support MYR. That's because USD index continued to strengthen. Despite bearish divergence in the RSI and MACD, USD index is expected to continue to trend higher since it broke above the range of 93-101.


Chart 4: USD Index's daily chart as at Jan 9, 2017 (Source: Stockcharts.com)
 
A rising USD index will likely to drag USD-MYR higher. However, we can see that USD-MYR has been well-checked by the horizontal resistance at 4.47-4.48. Recent Bank Negara counter-measures and firmer prices for CPO & crude oil could have counter-balance a rising USD index and kept the USD-MYR below 4.50. If Trump's ascendancy to the US Presidency on January 20 were to unnerve in the market, this could well lead to a correction in USD index and a pullback in USD-MYR. However, USD-MYR is unlikely go below the 4.20 mark in the near term.


Chart 5: USD-MYR's daily chart as at Jan 10, 2017 (Source: Stockcharts.com)

Yeelee: At The Cusp of Uptrend Acceleration?

Result Update

For QE30/9/2016, YeeLee's net profit increased by 8% q-o-q or 28% y-o-y to RM10.9 million while revenue was mixed - down 6% q-o-q but up 25% y-o-y to - RM248 million. PBT rose q-o-q mainly due to higher sales of aerosol cans and palm oil mill able to turnaround in this quarter with better OER and higher fresh fruit bunches ("FFB") processed offsetting the lower sales of consumer products in trading division. {Note: The result for QE30/9/2016 was announced on November 24, 2016.]


Table: YeeLee's last 8 quarterly results


Graph: YeeLee's last 41 quarterly results

Valuation

YeeLee (closed at RM2.55 at the close of the morning session) is now trading at a PE of 10.9 times (based on last 4 quarters' EPS of 23.5 sen). At this PER, YeeLee is deemed quite attractive for a well-diversified group with large exposure to consumer spending. While its dividend yield is low at 1.4%, it's trading at a discount of 14% to its book value (of RM2.97 as at 30/9/2016).

Technical Outlook

YeeLee is in a long-term uptrend. Its uptrend is however capped by the line connecting its recent peaks, RR. The stock is now pushing against that resistance line. If it can break above this line at RM2.55-2.60, its uptrend may accelerate.


Chart 1: YeeLee's monthly chart as at Jan 10, 2017_12.30 (Source: Chartnexus)

I have also appended the weekly and daily charts to show the critical resistance level of RM2.55-2.60 that's checking the stock's upside.


Chart 2: YeeLee's weekly chart as at Jan 10, 2017_12.30 (Source: Chartnexus)


Chart 3: YeeLee's daily chart as at Jan 10, 2017_12.30 (Source: Chartnexus)
 
Conclusion

Based on good financial performance, attractive valuation & positive technical outlook, YeeLee is a good stock to hold for long-term investment. The uptrend may accelerate once the share price can breach the resistance level of RM2.55-2.60.


Note:
I hereby confirm that I do not have any direct interest in the security or securities mentioned in this post. However, I could have an indirect interest in the security or securities mentioned as some of my clients may have an interest in the acquisition or disposal of the aforementioned security or securities. As investor, you should fully research any security before making an investment decision.

Market Outlook as at January 10, 2017

FBMKLCI has broken above its downtrend line, RR at 1660. This plus similar positive indicator readings suggest that the index and market may continue to rise. The positive reading of indicators include:
  • Expanding Bollinger Band; 
  • MACD crossing above its signal line as well as going above the zero line; and
  • +DMI above the -DMI plus rising ADX.
However, we must note that the trading volume is relatively small and market breadth is still far from exciting.


Chart 1: FBMKLCI's daily chart as at Jan 10, 2017 (Source: Chartnexus)

If you look back to April 2015 when we last had an upside breakout of the downtrend line, we will see the similarity with we have today, which are +DMI above -DMI (briefly) unaccompanied by rising ADX; MACD struggling to cross above the zero line; and relatively small volume. Thus the case for a decent rally in the market - think CNY rally - is not an open-and-shut case as yet. It is still a work-in-progress and as such, we have to be careful. By that I mean you need to sell if your stocks are knocking against resistance and buying small positions even if you see a breakout. As always, good luck in your trades.


Chart 2: FBMKLCI's weekly chart as at Jan 10, 2017 (Source: Chartnexus)

Thursday, January 05, 2017

Cypark: Seasonally Stronger Earnings Recorded

Result Update

For QE31/10/2016, Cypark's net profit dropped 11% q-o-q but rose 46% y-o-y to RM12 million while revenue dropped 4% q-o-q but rose 21% y-o-y to RM68 million. Revenue dropped q-o-q mainly due to the lower income from landscaping and infrastructure project in current quarter. PBT also dropped q-o-q mainly due to the additional provision for rectification costs made for environmental engineering projects in current quarter.


 Table: Cypark's last 8 quarterly results


Graph: Cypark's last 25 quarterly results

Prospect

PublicInvest Research expects Cypark's earnings to improve in FY2018, coming from additional 20MW biomass and 5MW biogas income due to the completion of its Ladang Tanah Merah project in Negeri Sembilan by late 2017. This project will generate additional revenue of RM65 million and profits of RM15 million to the group. For more, go here.

Valuation

Cypark (closed at RM2.10 yesterday) is now trading at a PE of 10 times (based on last 4 quarters' EPS of 20.33 sen). At this multiple, Cypark is deemed fairly attractive.

Technical Outlook

Cypark is in a uptrend line with support at RM2.10.


Chart: Cypark's weekly chart as at Jan 5, 2017 (Source: Tradesignum)

Conclusion

Despite the good financial performance, attractive valuation & positive technical outlook, Cypark is still rated a BUY.

Note:
I hereby confirm that I do not have any direct interest in the security or securities mentioned in this post. However, I could have an indirect interest in the security or securities mentioned as some of my clients may have an interest in the acquisition or disposal of the aforementioned security or securities. As investor, you should fully research any security before making an investment decision.

Annjoo-PA: A Possible Trading BUY

Annjoo had a Rights Issue of 125 million RCPS (known as Annjoo-PA) on the basis of 1 RCPS for every 4 shares owned on November 3, 2016 (here). The profile of Annjoo-PA is as follows:
  • Maturity Date: 30/11/2024 (or, tenor of 8 years)
  • Exercise Ratio: 1-for-1
  • Exercise Price: RM1.30
Since its listing, Annjoo-PA has risen from RM0.70 to RM1.25 along with the rise in Annjoo's share price from RM2.00 to RM2.35 over a period of 4 weeks.  This means that Annjoo-PA is now trading at a fair premium of about 9%.

From the chart below, we can see that Annjoo is now trading at a new one-year high- surpassing the high of RM2.23 recorded on October 25, 2016. With this upside breakout, Annjoo may continue to rise to its next resistance at RM2.70-3.00.

Based on the uptrend in the underlying share price, Annjoo-PA could be a good trading BUY. Please exercise careful discretion if you choose to trade this instrument.


Chart 1: Annjoo's daily chart as at Jan 5, 2016 (Source: Chartnexus)


Chart 2: Annjoo-PA's daily chart as at Jan 5, 2016 (Source: Chartnexus)

Note:
I hereby confirm that I do not have any direct interest in the security or securities mentioned in this post. However, I could have an indirect interest in the security or securities mentioned as some of my clients may have an interest in the acquisition or disposal of the aforementioned security or securities. As investor, you should fully research any security before making an investment decision.