Be very wary in this market. After sitting out of the rally for so long, retailers are getting impatient and are starting to move into the market in a big way. Stocks that appeal to retailers are slowly but surely being coaxed back to life. All kind of inducement are being used to draw in the buyers- tips, research reports, newspaper articles and technical breakouts (for which I'll plead guilty as charged). And, suddenly you will see a heap of activity (read: volume). It is just too enticing. The most difficult thing to resist is temptation!
Look at the 60-minute chart for OSKVI below. A technical breakout at RM0.68 on November 3 (at the close of morning session). A high of RM1.08 in the first hour of November 6 (barely 3 days later). A steady selldown ensued over the next 8 trading days and the share is now back to RM0.65!!!
Wham, bam, thank you mam.
Chart: OSKVI's 60-min chart as at Nov 11, 2009_10.10am (Source: Quickcharts)Always take precaution by having protective stops!
When in the TOP10 active list, you see warrants around, it can tell you that the tail end of the rallies might come soon. Why I don't like but this is the realities...
ReplyDeleteNow, it depends on the market maker when the merry go round will stop. Earning surprise stock may run but those with high debts beware.
Good day Alex, what your comment on LIONFIB that recently announced it's strong earning for its first quater? Is this stock will able to maintain its earning momentum throughout the financial year?
ReplyDeleteTEXCHEM also announced its 3rd quarter result recently which sees it turnaround to profitable, do you think the profitibility of TEXCHEM is sustainable?
Hi Solomon,
ReplyDeleteHistory repeats itself, but with a slight difference. I think the last round we had a sharp run-up for CWs because they were fairly new. I do not think we will have the same run-up this round. Just be a bit careful when you see huge volume amongst cheap shares. We are seeing some signs of that lately.
I bought scomi at 0.63. Recently scomi annouced right issue and the share dropped. Should i sell it?
ReplyDeleteHi KENNY,
ReplyDeleteI have been following TEXCHEM for quite a while. It's a stock that is struggling to recapture its glory days. It has two marginally profitable quarters, QE30/9/2009 (pre-tax of RM2.7 Mil) and QE30/6/2009 (pre-tax of RM2.1 Mil). Is this a turnaround? I'll wait for more convincing set of numbers.
LionFIB looks very promising. Its last 2 quarters' EPS of 26 sen. I need to study the accounts further.
Hi David Chan,
ReplyDeleteI have been thinking about Scomi for the past few days. Your comment prompted me to pose something on this stock.
Alex, given the uncertainty surrounding all the talk about recovery in the major economies, I am thinking of buying into high div. Reit as defensive plays. Which would you recommend? Are Hektar or Axis reits compelling?
ReplyDeleteThanks.
William Tang
Hi Sie Yoeng,
ReplyDeleteI'll readily admit that I cannot understand REIT's accounting. The appreciation in the value of investment properties seems to be taken up as profit. One of these days I will look into REITs & get a better grasp of this asset class. Until then, I do not think I am in a position to comment on REITs.