Look out below.

With one of the biggest drops in the Dow on record, markets are expected to gap down at the open.
Watch out for 19000-19300 on the HSI,3060-3100 on the STI, and 1100 on the KLCI.

Selling is not advisable on stocks already down 5-15% on the open. But I would nibble at stocks down 20% or more eg Bursa -C.


Well, in the light of this massive correction,I am thankful I have put warrants on Capitaland, DBS and the STI.


Here's an article from Bloomberg:

U.S. Stocks Plunge; China Triggers Global Rout; Treasuries Jump

By Eric Martin

Feb. 27 (Bloomberg) -- U.S. stocks plunged, wiping out about $600 billion in market value and erasing all of 2007's gains, after a selloff in China spread and sparked the biggest rout in four years. Treasuries had the biggest jump since December 2004.

The Dow Jones Industrial Average fell as much as 546 points, the most since the first trading day after the Sept. 11, 2001, terrorist attacks in New York and Washington. All but two companies in the Standard & Poor's 500 Index declined.

The plunge in China ``exposed the fact that there are problems developing,'' said Jim Rogers, who co-founded the Quantum hedge fund with George Soros in the 1970s. ``When you have major stock declines, they always start in marginal countries, sectors and companies.''

The Dow average sank 416.02, or 3.3 percent, to 12,216.24. The S&P 500 retreated 50.33, or 3.5 percent, to 1399.04. The Nasdaq Composite Index dropped 96.66, or 3.9 percent, to 2407.86.

``This is a fairly violent selloff,'' said Russ Koesterich, a portfolio manager at Barclays Global Investors in San Francisco, which has $1.7 trillion in assets.

Treasuries

Treasuries climbed as the rout in stocks and global bonds bolstered demand for the safest debt.

Yields on benchmark 10-year notes fell to the lowest since December as the plunge in Chinese shares set off concern investors will shy away from riskier assets. Two-year notes gained the most since August 2004. Delinquencies and defaults on bonds backed by mortgage loans to people with poor credit histories helped fuel the rally in Treasuries.

``A flight to quality and fear in the risk markets are propping up government markets,'' said George Goncalves, an interest-rate strategist in New York at Banc of America Securities LLC, one of the 21 primary dealers required to participate in Treasury auctions.

The yield on the benchmark 10-year note fell more than 11 basis points, or 0.11 percentage point, to 4.51 percent, according to New York-based bond broker Cantor Fitzgerald LP. It was the biggest drop since Dec. 3, 2004, when employment growth slowed. The yield touched 4.4485 percent, the lowest since Dec. 6, 2006.

Emerging Markets

Emerging-market bonds and currencies fell as the tumble in Chinese stocks curbed investor demand for riskier assets.

The average spread for emerging-market bonds over U.S. Treasuries rose to the highest since Dec. 7 after China's main stock market index sank 9.2 percent, the biggest drop in a decade. Brazil's real, Turkey's lira and the South African rand led a slump in developing-nation currencies.

``It started off with China and then with U.S. stocks, which is leading to risk-averse behavior,'' said Matias Silvani, who helps manage $4.7 billion of emerging-market debt at JPMorgan Asset Management in New York. ``In times like these, correlation across markets increases.''

Emerging-market bond yield spreads surged 17 basis points to 1.89 percentage points, leaving them up 25 basis points from a record low of 1.64 points on Feb. 22, according to JPMorgan Chase & Co.'s EMBI Plus index. A basis point is 0.01 percentage point.

Brazil's real fell 1.8 percent to 2.1197 per dollar from 2.0825 reais per dollar yesterday. Turkey's lira sank 1.8 percent to 1.4097 per dollar and the South African rand dropped 2.2 percent to 7.2337 per dollar.

The yen rose the most in more than 19 months against the dollar as investors shunned emerging-market assets and U.S. equities dropped, prompting an unwinding of trades betting on a decline in the Japanese currency.

Oil Climbs

Crude oil rose to the highest close this year on speculation U.S. fuel inventories declined because refineries are repairing units.

Gasoline supplies fell 1.5 million barrels in the week ended Feb. 23, according to the median of forecasts by 15 analysts before an Energy Department report tomorrow. Stockpiles of distillate fuel, including heating oil and diesel, dropped 2.6 million barrels. In February and March refiners perform maintenance and start maximizing gasoline output.

Crude oil for April delivery rose 7 cents to $61.46 a barrel on the New York Mercantile Exchange, the highest close since Dec. 22. Futures touched $62.25, the highest intraday price since Dec. 26. Prices are up 0.8 percent from a year ago.

Gold prices dropped as the plunge in equities prompted investors to bail out of precious metals.



As for stock action, I sold put warrants of DBS for a 45% gain in less than a month, and STI 2800 put warrants after they rose 233% from yesterday, but at a 60% loss. Fortunately, I did not invest as much in the latter as I did in the former.

I held tight to my Capitaland put warrants, though.

Purchases on Bursa
On the buy side, I added to my Telekom Malaysia call-warrants at 52c(closing 58c), YTL call-warrants at 64c(closing 64.5c). I also did intra-day trades of Borneo Oil, Unisem and Ta Win, while buying WIMEMS at 33.5c and Utusan at 1.09


Purchases on SGX
I bought Star Cruises at 27c, DMX at 52c,Ouhua at 38c, ICBC call-warrants(expAug07) at 51c, Hyflux call-warrants(exp Aug07) at 16.5c and Datacraft call-warrants(exp May07) at 16.5c. Additionally, I entered 18,000 HSI 21400 call-warrants(exp April 07) at a 14.8c average after they had plummetted over 30%.



I would like to share some charts with the purely technical analysts to fortify my own beliefs:

The first is a 5-day chart of the STI. Note how short-term bullish divergences on the RSI always indicates a rebound at hand.






The same is true of the Dow( and most other stocks and stock indices):










Notice how the last two hours or so, with the drop of over 200 points during this period, seems to be panicked dumping. Such steep drops over such short periods are usually followed by a violent rebound.


The KLCI has a hammer in its daily chart after today, which usually indicates that an imminent rebound has better than a 70-30 chance of eventualising:
















Actually, I would have bought even more if I weren't so damn cautious(which may be a good thing, though).

Today's price action on the Footsie thus far also shows persistent bullish divergence:






















Tomorrow's price action will either vindicate or negate my faith in my own buy and sell calls.

Wow...the plunge in blue chips is fast and furious. Venture shines!

However, I was in luck. I still have 18,000 Venture DBeCW070618, and I was happy to dispose of it at prices ranging from 14.5c to 16c, a 34.8% gain in two weeks.


This gain was achieved as Venture Corp reported better than expected earnings and the stock rose 50c to S$13.80.

On Bursa Malaysia, I sold Eng Teknologi for a 10.5% gain. The stock is holding steady despite a general weakness in the market with loser thumping gainers 860 to 139.

11: 21 am - The overall market is breaking badly, but I have decided to hold on to my purchases yesterday. Rex is actually up 1c, but is very thinly traded now.Riverview is currently unchanged but again has a huge bid/ask spread. I-Bhd is unchanged but the bid/ask spreads are lower.
5:00pm - I nibbled selectively at two blue-chip call warrants : TM-CC(down 18% when I entered) and Astro-CB(down 14% at entry), because I believe the current selldown is being exacerbated by the force-selling of a large portion of the 4.78 billion shares done last Thursday.
Today, profits were few and far between, but I still managed to sell Eng Teknologi and Yinson for a total gain of less than RM200. But my luck with Venture resulted in a total that falls just short of yesterday's total.

A correction is anticipated.

A bearish engulfing signal has appeared on the KLCI's candlestick chart. So it's time to hold back from rash speculative purchases, especially if the market has already fed you well thus far.


The KL Second Board Index looks far more promising, but is also susceptible to profit-taking.
















The STI looks overextended, but then again, it could be a bull just taking a breather, although I would rather wager that Keppel Corp and Capitaland will drag the market down significantly in the coming months.

A sense of relief over my Public Bank margin trading account.

I opened a margin trading account on the KL Stock Exchange at the outset of 2005, as I thought a superbull run blowoff was coming at the beginning of that year, if not at the end.

As it turned out, I couldn't have been more off the mark: the lower liners plunged as margin traders like me had their more speculative collateral marked down to zero.

My account didn't incur losses only because I had bought well within the 60% danger point, although the warrants in my portfolio were marked down to zero, and there were several margin calls, which I met with transfers of stocks from my only other trading account with InterCapital.

I even profited mildly(to the tune of slightly over RM2000) by punting counters which had gone limit down at least twice eg GPlus, Talam, Fountain, Ngiu Kee and SAAG.


As it turned out, my first purchases with the margin account included both my biggest winner for 2005-2006, and my longest held stock(mainly because it is STILL underwater!).

They were MNI, which I bought for RM2.66 and sold in late June 2005 for RM3.98(it was taken over by Maybank), and MSNiaga, which I entered at RM3.72(it's down 27.4% to date). Both were purchased on the same day sometime before the CNY of 2005.

Many of my rash (and speculative) purchases in early 2005 sank deeply into the red by June. GHLSys plunged 74% over that period, CFM dropped over 40% and TMS sank by more than half, just to name several losers.


Throughout the rest of the year, my account was nearly dormant, as the overall market refused to budge, and the only other purchases I madewere in November 2005, namely, HL Ind at RM3.06, Talam at RM0.33 and KEuro at RM0.32.

I greeted 2006 with a sense of dread about how I was to service the interest at well over 6% on the margin loan if the market continued to languish in the doldrums, and remisiers I knew were quitting their jobs because the daily volume was critically below the life support line.

In early February 2007, I opened the Star Marketwatch website and saw a stock called CFM listed in the top gainer list. I had forgotten all about it because it had languished in the red for so long. Calling my broker at Public Bank, I cleared all 5,000 shares at RM0.875-0.88, thankful that I had not noticed the stock as it inched up from the 40-50c range, through the 60c range,and then leapt over 3 days to the 80-90c range.

Miraculously, many speculatives in my margin portfolio took turns to leap from February to March, allowing me to sell the likes of GHLSys, Iretex, DVM(I was most relieved to dump that 15,000 shares!), KEuro and so on.

Sadly, the one I should have held on to, Muhibbah,costing me RM0.90, was sold at RM1.14. It's now at RM4.24.

This turn of events allowed me to turn over my capital, selling HLInd for MAS, and so on.

However, until the end of last year, I had just managed to service the interest with my profits, with a little left over to spare.

Since the stampede of the raging bull of 2007, I have managed to double that figure, with profits on both trading accounts leaping and jostling with each other.

I am quite grateful that the bull eventually visited the Malaysian bourse.




As for my trades today, I was lucky enough that 7% of my portfolio gained over 5%, despite the market index being down 0.83%. The highlights were Sin Heng Chan, up 21.6%, MAA, up 7.8%, M3Nergy, up 6.3%,OIB, up 6.0% and PMBTech, up 6.5%. My speculative play of the week,Borneo Oil,is up 3.6%. I pared my holdings for a contra gain of over RM1,600 today.


More importantly, the KL Second Board Index gained almost a point to 108.21 points, while the MESDAQ Index dropped 0.47% to 153.47 points.

I entered Riverview, Rex and I-Bhd today.

On the SGX, my DMX has gained 5.6%.

It's surprising how much you can make by not staring at your stock all day.

That's one reason why I buy so many counters.

Today I discovered I had a stock in my portfolio called Sin Heng Chan which had risen over 50% in the past month.

If I had not forgotten about it, I would most likely have sold it at RM1.10-1.20, which is almost 20% below where it is trading now.


Another of my forgotten bonuses was Tamcorp, which has almost doubled by the time I realised I still had it(and promptly sold it on discovery).


My mother's PPBOil is another case in point. If one has forgotten the stock, the only way one gets to know of it again is when it appears in the news, either because of a disastrous, or because of a highly favourable turn of events.

If one has been doing their homework assiduously, chances are much higher that the attention-grabbing news is favourable rather than the other way around.


For the week ahead, I am selectively entering laggard 2nd Board KL stocks like MESB, Tomei and Tanamas.

(For the other 20 stocks in my list you have to be a paying client)

A satisfying end to the trading week!

Two days ago, I advised a client to enter laggard MESDAQ and KL Second Board stocks as a way to trade safely.

When asked which ones specifically, the first name the came out of my mouth was Borneo Oil, partly because I have already made quite a fair amount on this stock, back when it was called Sugar Bun.


The man promptly bought 100,000 at prices ranging from RM1.78-1.80.

I entered a measly 10,000 shares at RM1.79 an hour before the market close, mainly because I had cleared almost 30% of my portfolio for profits and was itching to punt on something.

For good measure, I added 3,000 shares of Borneo Oil warrants at RM1.39.


I started to regret my rather rash decision as both stocks treaded water until the close.

For the next day and a half, Borneo Oil's price actually weakened, and my regret grew proportionally to the time the stock price spent underwater vis-a-vis
my cost price.

My disappointment ended soon after the afternoon session of trading commenced today.

As of today's close, my RM22,070 investment(or rather, speculation) is worth RM24,250, or a hike of almost 10%.

Another of the significant gainers in my portfolio was M3nergy, up 7.2% today, and 17.6% over my cost.

Kluang also looked strong today, up 4.1% in my portfolio.

SBCCorp(see my Nov '06 recommendation) is firm at 9.8% over my cost.

What I did sell today was SapCres for a 32% profit in less than 2 months, and some MAA for a 9.8% gain in a month.

On the SGX, I sold my Venture warrants for a 27% profit.

This was a very satisfying week, for, despite it being shortened by the CNY, I realised more profits than the combined total of the previous two weeks, which were record weeks in themselves.

February is shaping up to be a very exciting month indeed! But I intend to be very careful from March onwards,

Took some profits off the table...

...just in case a correction comes.

Not much, only RM793.

But I am encouraged to see the market absorb 1.22 billion shares in the first 45 minutes.

10:45 am update - The market has, incredibly, absorbed slightly over 2 billion shares, with many suffering slight profit-taking. However, good news paying clients!!Iris and its menagerie of brother and sister stocks have started to move!!!Also, SBC Corp, which I still have, is up 2.8%, bucking the general market trend.

12 pm update -So far, I've only locked in about RM1220 in profits this morning. A big surprise today was Kamdar, which I bought 10 lots of yesterday:it vaulted 20% in the morning session. SBCCorp has risen further to 71c,a 7% hike over my cost. I think the market may just recover in the afternoon, as the overall volume this morning ALONe was a rather staggering 2.98 billion shares.

3 PM: THE MESDAQ & Second Board craze is ON!
The Mesdaq Composite Index is currently up another 4.57% and the SBI 1.18%.

AKN and her sister company surged another 23% in the afternoon, just between them sending up the value of my portfolio by 1.8%. Redtone shot up 42% but I only have a small amount. TMS is not too shabby either, up 29%.

As at 3:23 pm , the total market volume is 3.77 billion shares and escalating FAST!

Hurrah...a record day for me on the KL Stock Exchange!

Profit-wise, I achieved my highest daily total since July 1999. The market as at 11.39am is already seeing 2.33 billion shares transacted.


Looks like if the market either suffers massive profit-taking in the afternoon or gets a push up to the close, the total volume transacted on Bursa Malaysia today should be over 4 billion,smashing last Thursday's old record by 460 million shares, this difference being equivalent to the TOTAL daily trading average of 2005.

Only entered Prolexus and Airport(at a 5c discount to last week's closing) today. Queueing to buy Sunchirin, and considering Aluminium Co. of M'sia strongly.


My own gut feel is that the market has become extremely speculative, with warrants jostling each other for double-digit percentage gains like nobody's business.


Even ailing companies' stock are flying, based on nothing but the expectation that all laggards on Bursa will soon take off.


Take PSCI, a company which has an NEGATIVE NTA of well-over (RM3).I bought a small amount last week for speculative purposes. Today, it has gained 21% in the morning session, and stands over 57% above my purchase price last week.

GPlus, a major component in my portfolio, has surged 12% this morning, and stands over 50% higher than you could have bought it for the last two weeks.

AKN, another laggard stock which makes up a major percentage in my portfolio, has zoomed 17% since last week with no supporting news.



My ENTIRE portfolio of over 130 stocks, which consists of mainly speculative plays, has added over 8% overall since the beginning of last week, outstripping a 3.3% gain in the benchmark KLCI, and with profits taken(including today's), the gain since the beginning of last week is more like 10%.

It's too easy, but I expect that rotational punting is the safest way to participate in this superbull.

I'm ever ready to sell 80% of my portfolio or more should the KLCI approach the key resistance of 1300 points.


However, an intermediate resistance is 1278 points, the pre-'97 financial crisis high when it was difficult to find second board stocks below RM10, and many warrants were trading between RM2 and RM5.

Until then, I am still going out of counters with a big profit and entering those which haven't budged much the last three months.



On the SGX, my confidence in China Haida has been vindicated, but only a little as my paper profit on the stock is 14%.


Be forewarned fellow specuvestors!


2 pm update : I'm shivering with excitement!My mum has just told me that she has cashed out of the unit trust she has been holding for me in her name since June 2000 and bought 3000 shares of TA, currently the HOTTEST stock on Bursa Malaysia! She told me she bought it for 90c three weeks ago.This morning alone, it zoomed 32c to RM2.20,a 144% profit! Yippee!!

3 pm update : The volume as at 3.02pm is a frenetic 3.20 billion shares, just 340 million short of the all-time high.Cleared out my holdings of AKNMTec, EngloTC and NTPM

5 pm update : The volume has predictably surpassed 4 billion, but the online trading software I use screwed up and I'm not able to come up with a final figure. Cleared GPlus @93c after it vaulted a ridiculous 21% today, propelling it past CFM and MNI to make it my most profitable stock in the last two years.CAM Resources shot up an equally-ridiculous 33% today, and I plan to unload it tomorrow. Took some profits on PSCI, for a mind-boggling return of 70% in a week.GTronic was disposed for a 12% gain in two weeks, while Chase was pared for a 19% gain in three weeks.The Sapura companies which I have been collecting started to party today, and SapCres is up almost 20% for me.Even sleepy Yee Lee is up 8% from my cost. Entered Alcom, Kamdar, Prlexus and Borneo Oil in the afternoon. In S'pore, I took some profit off the table on China Haida, but failed to enter Equation on time :(

The First Trading Day in the Year of the Pig is eagerly anticipated by many...

...and my dad was thinking about the stockmarket throughout the Chinese New Year break!


I can't blame him, nor my mother if she has the same reason for sleepless nights.

My mother's KLK stock, now trading for RM16.30, cost her only RM4.90.The stock gave her at least two thousand ringgit in dividends in the seven years she has been holding on to it.

She bought PPBOil six years ago for RM2.61(Friday's closing:RM12.80).

She also made big on Genting recently, and also holds Maybank and RHBCap.

So despite all my hard work, buy and hold still wins the day. Kudos to my mum!

Liqua warrants surge over 35% today.

The highlight of my portfolio, netting me a 68% gain in two months.

Ken added 16.7% today, and I sold off the remainder of my holdings.

IE was the other moderately big gainer, up 15.6% today, and 20% in my kitty.

EngloTC is firm, with a 28.8% gain on the table.

Over 80% of my portfolio was in the green today, and my long-held wish of seeing the Second Board Index breach 100 points came true, as it fired ahead 3.9%, achieving 102.12 points at the close, to overshadow the MESDAQ Index's 2.0% gain.

The SBI has completed an inverse Head & Shoulders pattern that should see it head for 106 points at the barest minimum, and after a short pullback, much higher than that, my target being at least 150 points.

A day for me to lock in profits.

Bursa Malaysia saw a record 3.54 BILLION shares traded today, and I decided, after seeing the volume leaders pull back late in the afternoon, sold some stocks I had profits on, including NOVAMSC, Symphony, SBagan and Ecofirs.

I also took a 4% rise in Isyoda stock which I bought yesterday and stuffed it in my pocket.

On the SGX, I took some profits on HSI21000 call warrants.

MESDAQ and Second Board forges ahead while SESDAQ plunges.

Today, the Bursa Malaysia resumed its surge upwards as the MESDAQ Composite Index roared further into life, surging 3.23% while the KL Second Board Index added 1.6%.


The Mainboard KLCI fared quite well too, up by a more sedate 0.92%.

I took profit on a large variety of counters, from 2% on NSTP, through 25% on Mitrajaya to 42% on LionCorp, and choose not to bore readers with the details.


My luckiest trade was in Mexter Technology(MESDAQ), which I queued for at 23.5c, which got done just 30 minutes before it was carried up by the bullish uptide, and closed 8.5% higher.

The best unrealised paper profit in my portfolio is a stock that surged 16% today: NOVAMSC; it's up 30.6% in my portfolio.

I would urge readers who haven't loaded up on laggard second liners to do so NOW(or on a pullback) as 85% of all the 800 over Bursa-listed stocks should surge at least for a day, towards the last few weeks of the bull market.

Suggestions? Well, I can't reveal my choicest picks out of respect to my paying clients, but there are some that look promising despite the fact that they are already up in my portfolio: AKNMTec, MAA, Taliwrk, EcoFirs,Isyoda and SBCCorp.
They won't ALL surge tomorrow but are worth holding at least two weeks.


On the SGX, China Haida is up 2.4%, bucking the falling trend among other China-related stocks.

Second liners record gains while blue chips languish

The MESDAQ composite in KL rose again, by 1.34%, while the Second Board Index
recorded the first gain in many days, up 0.58%, both trouncing the mainboard KLCI's
0.20% gain.

I locked in an 8.3% gain in NSCOM just to play it safe.

On the MESDAQ, I'm still holding SRidge, Sersol, IE, GHLSys and TMS.

Some second liners in my portfolio which went up today include Talam(+6.0%),Ken(+ 5.0%),Analabs(+ 3.8%),Yinson(+3.2%)and BornOil-w(+2.9%)

Among higher quality stocks, my gainers were Unisem(+2.7%), MAA and Sungei Bagan, both up 1.1%.

In Singapore, I entered CAO @ S$1.03 and am looking keenly to enter long trades in PCA Tech and Plastoform.


Good luck trading tomorrow!

Puts and Zhongguo Powerplus rule my day...

Sold my ZPP stock for a 41% gross gain, which, in a market that is generally weak(STI is down 1.5% or 49 points as I write) is quite a good two-week punt.


The other rewarding trade is my speculative buy of Keppel CorpBNPePW070710 which is now up 25% from where I bought them last week, thanks to a 30c drop in the underlying shares.

Equation seems to be holding and I'm debating whether to enter directly at 17.5c or queue behind thousands at 17c.

In Malaysia, the KL Composite is down 11.54 points, but the volume topper, ECM, is also a component of my portfolio, and up about 10% currently.

5 pm update : The MESDAQ Composite Index defied the market trend with a 1.82% surge,justifying my outperform call on the MESDAQ market ; I put my moolah where my mouth is with a speculative buy of NSCOM at 19.5c (at 4.40pm), and was rewarded with a 10% surge by the close of trade. Another MESDAQ counter, NovaMSC, is up 13% today. YTLE got away from me though. Also entered small amounts of Utusan, Borneo Oil and PSCI.

Have you got a lucky stock?

Not necessarily a stock that has made you tons of moolah at one go, but one which went up and down, but in which you still traded and emerged unscathed, despite perhaps one or several close calls?

I know I have at least two,at least for now.

One is (or was ) Renong.

Ever since it became only the third stock I ever bought at twenty-one-and-a-third years old, I have never suffered a loss on this stock.

The first money I made on the counter was during the aftermath of the Kobe earthquake when markets plunged in tandem, and I entered it ignorantly.


I made a small profit on it again later that year, and again towards the end of the year. During this time, the price yo-yoed between S$1.30 and S$2.20, never moving in a straight line(it was traded on the now defunct CLOB in Singapore).Even in '97, in the midst of a widely-unexpected , and deeply vicious downdraft in stock prices that eventually crippled me, I managed to make a not insignificant amount buying and selling Renong within a S$1.90-S$1.96 price range without coughing up a cent(in a contra trade). Several years later, when the Asian economic crisis had rendered me almost financially incapacitated, I entered Renong again, speculatively, at S$0.30, and, on selling it off at S$0.50 within days, I earned the first monies that would put me back on my feet by the beginning of 1999.

My partner in speculation celebrated our good fortune with a treat at Spaggedies at Tanglin Mall.

Just before CLOB shuttered in September '98, I made another go at Renong: buying at around S$0.15, I exited on the last day of trading on CLOB for S$0.22-25c.

In 1999, trading in Johor Bahru, I made a further small profit on this stock as it advanced with the general market.

Luck? I would wager so, since the stock has generally been going down all the while I was trading it.


The only other stock that holds even a skinny candle to Renong would be Equation(formerly Heshe) listed on the SGX.

I made speculative trades five times, the first time capturing a 13.5c to 15.5c rise in mid-September, and the last one being a 18.5c to 19.5c profit. And it's price trend since I started dabbling in it has been generally down.[Equation closed at 17c unchanged on the 9th of February.


As it stands, I sense another potential surge building up in its price action, so regular readers, put Equation on your watch list.

Time to short Genting Intl...

... and the markets mostly look like they're headed for a short- to medium- term correction, with bearish engulfing candlestick patterns emerging in the STI and KLCI among other indices.


Among ugly stocks, Genting's stock looks atrocious:















Among blue-chips, Keppel Corp looks the worst, while Singtel, UOB and SGX look technically strong(still!)

Osim looks considerably oversold.


















As for Longcheer,the stocks looks likely to fall a little more before rebounding back to the psychological barrier of $1.














Funnily however, the Hang Seng China Enterprises Index looks set for a short-term reversal upwards:

An alright day for me.

8Telecom surged 15.8% today, brightening my mood in an otherwise down day for the other members in my portfolio.

ABR and Oniontech both held their ground.

Thank God I didn't enter Longcheer(Although I wasn't planning to, I'm sure a lot of people were harmed by hype surrounding this company, as it tumbled today)

On Bursa Malaysia, Symphony House was the top performer in my portfolio, rising to stand 10.6% over my cost.Mitrajaya rose 6.8% while SAPInd upped 2.5%. Hwa-Tai-w advanced 4.7%. Sungei Bagan and Kluang both gained marginally.

Although MAA fell a little, it's still up 4.4% in my portfolio, while PacMas' drop left it 3.7% up on my cost.



The only stock I entered today was LMA, at an average of 59c.
The others dropped marginally.

Finance-related counters in my portfolio surge

KUB leaps 19% from my entry price yesterday.MAA jumps 9% and is up 5% in my portfolio.

Sadly, TA was a good call, but I left it out, opting instead to enter Kenanga at 91c yesterday.

It's up 12% now. NSTP stirred to life post-fiasco, justifying my buy call with a 3.3% advance, with Utusan tagging along with a more impressive 10% gain.

Elsewhere, EngloTC marches ahead 12%, and is now up 21% in my portfolio.Not far behind, TWSCorp is up by 11%.

On the SGX, I took a 26% gain in Oakwell and put it in my pocket.

5pm update : Sold all my KUB, and Kenanga for a 13% return. TWSCorp was disposed for a 12% profit, while Utusan was sold for a 6.7% gain.Entered GTronic at 31.5c and SAPInd at 62c

Utama banking takeover throws up a 12% return on my CMSB stock

Sold at an average of RM1.83 after buying at RM1.63 two weeks ago.Connect Country returns 14.8% after seven weeks.

Meanwhile, my prediction came true for Oakwell, now up 26% from my purchase price a week ago,Zhongguo Powerplus, up 18%, and ABR, which is up a more modest 4.3%.


Stocks I'm eyeing for the short-term on :

=Bursa - KUB, Kenanga, MAA,Kosmo,Mobif,IRIS
=SGX - Oakwell, China Haida, ChinaSun, IPC,CAO, ABR,PCA Tech, New Toyo,Guangzhou IFB


Stocks I'm salivating over for the medium-term on:

=Bursa - NTPM,GUH, Xianleng,SRidge,Tomei
=SGX - MemoryD, Yanlord, AIM, LMA, Lankom,Datacraft, Creative, OSIM, JKTech,Junma,Pharmesis

Some targets reached on key indices.

The KLCI has reached my ultimate target of 1225 points.So I would advise all who have not taken profits on blue-chip companies to start doing so in the next few days.

If the bull-run continues(which it very likely will at least until the end of this week), I am looking at the '97 pre-Asian financial crisis high of 1275 to sell 80% of all holdings that have made their move.

Of course, I won't expect the bull to be killed before the second liners experience a blowoff of sorts, but so far, most are not participating in the bull-market.

This is reflected in the Second Board Index ,which dropped 0.5% today.


Tomorrow I will be looking to enter positions in some stockbroking companies like TA, OSK and Kenanga, quality finance stocks like MAA and some second liners that have maintained their position but have not moved in any significant way.

One of my main targets will be Century Logistics. The substantial shareholder made purchases of the company stock as recently as on Dec 29th when the market price was just 4c below the current price.

The STI is way overstretched and is in danger of a sharp correction, so I nibbled a little at a SIMSCI put warrant. I also bought some puts in Keppel Corp.

BJToto-CA and YTLE(MESDAQ)both up 26% as at midday,

I am delighted! No such luck on the SGX, though my China Sun warrant is up 8% and Zhongguo Powerplus seems to be stirring to life.

3pm update: Sold 4/5 of my YTLE at 30c average(+30.4%), while I unloaded 2/3 of my BJToto-CA at 58c(+39.8%)

3:35pm: Sold another 1/5 of YTLE at 36.5c *wow*!!!

3:55pm: Took profits on Courts for a 8.5% return in a month

5pm close: Disposed my BJToto-CA for a 41% return overall and my YTLE for a 34% gain, all in one day!

PS : Richard, I HOPE you got into YTLE in time on Friday!
And thank you for being my first client :)

Some charts of stocks I'm eyeing...

Psst...listen carefully...MESDAQ and Technology

The common thread? Cup and Handle formations that portend big rises ahead!

My motivation to share...and the impending tech blowoff.

Some of you readers may think I am a real braggard with regards to my successes. And because of this, you may pooh-pooh my recommendations. Many of you may think that I am a greedy person to only want to share wholeheartedly in return for a fee.

Well, you may not be totally off the mark in that regard.

But which of us isn't greedy, and who can claim that they don't feel like boasting about a small success once in a while?


Granted that my capital is dwarfed by many an investor out there, and that successes have been few and far between in 2006.

My cardinal sin has always been spotting some good buys at near rock-bottom prices only to take profit much too early.


Cases in point include purchases of C&C at S$2.69 in November'01, BIL at 25.5c in February '02, Capitaland at S$1.01 in March '03, all of which I sold off within a year at less than a thousand dollars in profit each.

Of course, I also had duds like Genemedix at $1.85 and LJacob at 48c and so on.

I guess all my life I have craved some recognition for my efforts and successes, something my parents hardly ever gave me.

Childish? Maybe...

But who can boldly say that they aren't influenced by their upbringing to some not insignificant, if undefinable extent?

Because of some unfortunate childhood incidents, I am unlikely to have the privilege(but will be spared the pain) of bringing up a family,which a lot of you probably take for granted more than half the time, if you dared to admit it.

Me? I live in a rented room in a crowded HDB flat. My bed has no pillow and I have been using the same bedsheet(rewashed once a week, of course!) since five years ago.

Due to my phobia of moving(which I have five times in the past two years), I choose to buy little to contribute to the creature comforts that most of you retire to daily, so that they present less of a hassle when I move.

Instead, I scrimp and save every penny for a better future.

What I do have is a job with a salary that, if saved carefully , with a compounded annualised return of 10% a year, can afford me a modest roof over my head within 10 years, debt free.

My quest for the dream of one day owning a modest home of my own,which I will pay upfront for, is why I have devised this idea of researched investing focus points in exchange for a small fee.

I used to have a 50-50 profit sharing arrangement with a rather wealthy investor. With my investment advice(I actually dug up charts in the National University archives dating back to 1985) and her moolah, we jointly trickled money into the Singapore and Malaysian markets from end '97 to '99. Memorable buys included CityDev at $2.49, OCBC at $3.70, Venture at $3.70, Teledata at 15c(it ran up to over 50c before we sold it off), and, of course, Jardine Strategic at just above US$1.

In Malaysia, we bought a whole host of stocks, including Time at 25.5c, Hwa Tai at RM5.05(sold at RM13.20 in 1999) and Sime Darby at RM2.50.


To cut a long story short, I didn't need to work for two and a half years from '98 to '99.

Those were, undeniably, the most wonderful years of my life thus far.

Despite the wrong predictions last year, I still hold on to the wonderful memory of those halcyon days of 1998 and 1999.


Well, anyhoo, getting out of my reminiscent, ruminating mood into some discussion of what I managed to uncover today:

Tech majors like Cisco, Intel and , to a lesser degree, Microsoft, look set to complete a final blowoff pattern that will probably take them up to 61.8% of their 2000-2002 drop, which, in Cisco's case, would set a target at around US$36-37.


In S'pore, OSIM looks to have found a temporary bottom. If not at current levels, the floor looks to be around S$1.

China Sun and DMX seem to have found their bottoms, together with most SESDAQ companies whihc have fallen from recent year highs.

In Malaysia, tech majors like Unisem and GTronic look like they have an 80% or higher chance of rebounding after recent corrections.

A SESDAQ Gem...Yaan!

I challenge the reader to find a company which has only 61m shares in issue, listed on the hottest segment of one of the hottest markets in the hottest space in the investment universe- emerging markets.

Additionally, 38.9m of its shares are held by insider directors. Furthermore, these people have increased their already large stakes by 400,000 shares over the past three months.

There's only one reason why director-cum-insiders buy their own shares - to MAKE MONEY!

The company's name? Yaan Security Tech listed on the SGX.






















Studying the figures, this company's stock is undervalued even at today's closing(and incidentally, it's IPO price) of 21c.

I have already entered at 19.5c but added to my position at 21c today because I am very confident this stock will run very soon.

With a strong belief that the effective free float of this company is only 22m shares, I think that the only sellers are those have been holding to the IPO shares since the company's listing in May '05.

To put it in perspective, based on today's closing, one can theoretically sell their penthouse in Ardmore Park or a penthouse in one of the new developments in Marina to buy up this company, with cash left to spare.

On Bursa, I entered YTLE at 23c and was rewarded with a further rise to 24.5c at the close. Other stocks I nibbled at were BJToto, NSTP, Utusan(the latter two of the failed merger fame), Eng at a wonderfully low price of 1.90 and Kuchai at RM1.23.

Only a handful of gainers emerged in my existing portfolio, led by Courts(+6.2%) and BJCorp(+3.3%).Sumatec held steady after recent hefty gains.PacMas ,however, dropped over 4%.

In S'pore, I bought more Yaan(as mentioned), DMX, Datacraft, Autron, Zhongguo Powerplus and the newly- listed ChinaSunMEReCW070808 at 12.5c.