Stock Market News (25-01-2016)

 
The period between 4th January and 3rd February is known as the broken month as this is when the 12th month of the lunar calendar, also known as the "Chou" month, clashes with the tail end of the 2015 year of the goat. Stock investors have no doubt seen the devastating effect of the broken month on the stock market. Year of the goat crashes into the "Chou" month, breaking it into pieces. The Chinese word for "Chou" stands for the treasure trove; when the treasure trove is broken, the financial losses are heavy, and the world finds itself shrouded in a gloomy atmosphere of never-ending stock declines and plunging oil prices. Stock players, have you mastered this principle of the Chinese horoscopes and numerology? From your recent failures, you can learn the principles and secrets of the stock market. Better still, if you can combine them with inferences that are based on Chinese numerology, you will gallop your way unhindered to success in the stock market.


At present, the stock market needs to create major crashes in order for investors to pick up cheap stocks. The coming year of the monkey is broken in January, so how will the stock market perform? Taking a lesson from recent bitter experiences, investors should learn to be wise when investing in stocks. When there is a sharp decline, go in and pick up the cheap stuffs, and quickly take profit by letting go of them at the first sell opportunity, otherwise you will see a sea of red when the tiger comes to fight a war with the monkey. In the coming days, it will not do investors any harm if they keep a close watch on CEPCO. This stock emerged from the market turmoil and created an upset. In 1993, CEPCO was the king among the stocks. Will it be able to make a comeback and jump on the monkey year bandwagon? Investors may want to follow this stock.

This monkey year will witness a number of big mergers and acquisitions, and the government has already made known its intension to give the Prime Minister an image makeover: A Prime Minister for All People. The Prime Minister understands that the people must live in harmony in order to build a foundation on which to build a strong nation populated by rich citizens. The Prime Minister has therefore appointed a new Biro Tata Negara director in an attempt to create a new Malaysian Race. The new director has already given a stern warning: he will deal with politicians who do not keep their promises or who are brainless, and he will come down hard with strict laws on people who spread rumours that are detrimental to racial harmony. In time, Malaysians will become united and they will not form cliques. They will march towards the target of a 1Malaysia and accomplish Vision 2020.

The Governor of Bank Negara Malaysia will retire in April. The new Governor, to stimulate the stock market, will surely want to reform policies with more emphasis on openness. Bank Negara Malaysia has lowered the bank statutory reserve ratio (SRR), which is good news for the stock market. This latest development, plus the oil price and stock turnarounds of the last 2 days, indicates that the Prime Minister is getting ready Chinese New Year ang pows to give to Chinese Malaysians. We should not waste this golden opportunity.

BORNOIL is a setup by speculators. Stocks that are most worth watching are SUPERMX, TOPGLOV and COMFORT.

The coming year of the monkey will witness greater risks in the stock market; the volatile market will be marked by sharp rises and sharp falls; and these are opportunities that investors should use to take profit. Another stock that is worth your attention is MYEG while BINTAI is a very steady stock suitable for investors who don’t have the stomach for short-term violent market fluctuations. TPC has begun to stir from its slumber. KBES will experience a new round of speculative activities.

This Master advises investors to be careful when investing, and he does not recommend you play with borrowed money. Go in when there is a dip, take profit when there is a rise. This Master earlier advised investors to go in only after 15-01-2016, and he wonders if investors have now seen the reason for such a wise and timely advice.

 


Stock Market News (11-01-2016)

Last week’s stock movements, mere waves made by a storm in a teacup, sent a very clear signal to investors: the Malaysian stock market is able to stand its ground and not easily influenced by external factors. Stock players, this is the time to quickly grab the seasonally opportunistic stocks! The well-intentioned Prime Minister understands the overriding importance of building a strong nation through the enrichment of its citizens. VALUECAP, responsible for shoring up Malaysian stocks, is directly under the administration of the Prime Minister’s Department. Investors should understand, we Chinese are going to celebrate the Chinese New Year in a short time, the PM has already prepared ang pows and is ready to give them to us through the stock market. Fellow Chinese Malaysians, we should not miss this golden opportunity.

General elections will be held in Malaysia in a year’s time. The beginning of 2016 has been difficult for Malaysia: raising of interest rates by US Federal Reserves, external factors, 
unfavourable exchange rates, plunging oil prices and other bad news. All these have cast a pall over the Malaysian economy and life has become more and more difficult for Malaysians. The year 2016 therefore is a watershed year in Malaysian politics! Right now, the Malaysian political arena is mostly populated by brainless politicians. If the PM wants to reform the economy and garner the support of the voters, he should realise that the Gen-Y voters (youths who are future masters of Malaysia) want an easy life and a cushy job, unlike voters of generations past who were patient and willing to work hard. How this Gen-Y votes shall decide the outcomes of the elections. Nowadays the micro-channel technology has created platforms or social media that can easily be abused to rouse anti-government sentiments among the Gen-Y. To calm down the anger of Gen-Y, the government has to bait them with something sweet, and the stock market is the place to create wealth for Gen-Y (easy and handsome returns). By this means, the government is able to allay the disquiet and resentment of Gen-Y and help the Barisan Nasional win their votes.

Malaysian Chinese are the best businessmen in the world. This can be seen in the large number of entrepreneurs who left Malaysia to become legends overseas. Malaysia is well endowed with natural resources and many of its citizens are graduates of elite schools. Malaysian Chinese know that grumbling will not produce any concrete results; the only way to shine in this adverse economic environment is to rely on the intelligence and wisdom of the Chinese race and to work hard. Stocks that emerge winners during the current round of stock downturns are the timber-based stocks and the furniture stocks, especially those with overseas factories such as in Thailand and Vietnam; investors should pay attention to these stocks. The rubber glove stocks are feeling the chill at their lofty perches, invest in these stocks for short-term gains only when there is a dip in their prices.


This Master strongly recommends a number of stocks, investors might want to keep a close watch on them. Among stocks that have been doing well in the recent past, the top pick is FFHB (you haven’t heard all the good news yet), followed by JAYCORP, SYF, JTIASA and WTK. SUPERMAX is the target of a possible takeover. Keep an eye on EG. As for the Sarawak-based stocks, CMSB, NAIM,  SCABLE, KKB, HSL and KPSCB, wait for the Sarawak elections which will take place around March.


Speculative stocks that will only realise gains in the long term are BORNOIL and PWORTH. You may have to wait 1 or 2 years, so be patient.You have to be patient when you invest in stocks, it’s important to make the right move at the right time: profit taking at the rise, bargain hunting at the dip. The stock ups and downs are your opportunities to create wealth. This Master wishes you the best of luck, and don’t miss the fairy peach gifted by the Monkey God in 2016. The Chinese stock market is full of land mines, a wrong step and you are blown to smithereens. To invest in Chinese stocks, you have to master the acrobatic skills and moves of the Monkey God.


Note: Did you pick up some cheap stocks during last Tuesday’s steep falls? Seeing FFHB’s strong mythical power and KAREX’s breakthrough, isn’t it worth your while to have some deep thoughts and ponder over stock investment secrets that you might have missed? If last week you weren’t able to earn your little ang pows, be positive and ask yourself: was I afraid or was I blind to the opportunities in front of me? If you haven’t earned any money, don’t blame anybody. Learn from this experience and remember to pick yourself up from where you fell. 
The 2 takeaways from the current round of minor stock market crashes are: the Chinese stock market is full of risks, the Malaysian stock market is full of opportunities.


Notes:
1) “Chinese stocks” means stocks traded on exchanges in China.
2) “Chinese stock market” means stock exchanges in China (mainly Shanghai and Shenzhen)

 


 

Stock Market News (04-01-2016)


Stock Market in Malaysia Ushers In Prosperous 2016


2015 saw a slowdown in both the Malaysian economy and the stock market; the double declines were caused by the 1MDB debts, unsubstantiated malicious attacks, political instability, the plunging ringgit as well as the 20-06-2015 stock market crash forecasted by this Master. Now, all these are water under the bridge and sunny days have returned. The Prime Minister has fulfilled his promise with the people and resolved the 1MDB issue (the settlement of debts).


2015 is the Year of the Treasure Trove built around the wood; did the investors of the timber-based stocks make big money? The export-led elites of Chinese enterprises have emerged triumphant from the 1997 financial crisis; this loser-turn-winner feat of the Chinese enterprises is a slap on the face of some brainless politicians and informs stock investors that the worst of Malaysian stock market is behind them now.


This Master has studied under the Patriarch and believes in karma, or the doctrine of reward and retribution; unfair policies have not defeated the Chinese enterprises but have made them even stronger in these adverse circumstances. 2016, Year of The Monkey, is the year when the sun shines brightly on the stock market and good times will return to Malaysia. 2017 is the 60th anniversary of Malaysian independence and an election year, the Prime Minister will surely want to see 2016 as the year when he makes the nation strong and the citizens rich (a nation of rich citizens requires all citizens to use stock market gains to offset the rising cost of living). Thanks to good fengshui or the wisdom of the Malaysian leaders, the double blessings of AIIB and TPP will be upon us in 2016. Malaysia must exploit the halo of the Monkey Spirit and make large-scale infrastructure and food industry developments the top priorities; driven by the Monkey Spirit, the building materials stocks and the construction stocks will rise from the dead and put up a strong performance.


January 2016 is the time to accumulate quality second and third liners as speculators will want to give the Chinese investors a Chinese New Year bonus, in line with the Prime Minister’s wishes. The KL Stock Exchange began 04-01-2015 with a rise but declined after that. Investors should pick stocks wisely if they want to receive fully loaded ang pows when the Chinese New Year comes around. Among the stocks this Master recommends, the top choices are those with factories in foreign countries: timber-based, electronics, rubber glove and car spare parts stocks; stocks with factories in Vietnam will perform exceptionally well. The arrival of TPP will benefit pan-Asean enterprises the most.


The lucky directions this year are east and west; this is Sarawak’s election year, Sarawak-based stocks will be the high flyers. The Prime Minister makes East Malaysia the focus of development, large-scale infrastructure constructions will be launched in East Malaysia, investors’ smart choice should be CMSB; this stock has been quiet for a long time now, the rebound will be strong. KKB moves steadily but slowly. NAIM, DAYANG, HSL will benefit from the infrastructure development. WEIDA, HARBOUR and WTK deserve some attention. Go for SCABLE only after a correction, not-so-ideal results will be announced in the coming days, start buying only after the outlook is clear, the risk is small if this stock is bought at around RM1.50.


Other stocks that this Master recommends you buy after a correction include: IJM, HAPSENG, KAWAN, HOVID, KAREX, VS, MPI, FLB, K1, KOBAY, IFCAMSC, UNISEM, KESM, 
GTRONIC. Companies with factories in Vietnam that are potentially best performers are POHUAT AND LIIHEN.


JCY is possibly a target of merger and acquisition (insider information). The Singaporean majority shareholder wants to call it quits and go back to Singapore; the asking price is around 0.40 Singapore dollar. Will the merger/acquisition be realised in this year of the Monkey? At present, semi-conductor demand sees a surge; thanks to the transformation of the car and aviation industries, electronic science and technology are taking over human labour. Does the current JCY price of around RM0.88 indicate an acquisition attempt by an interested party? Investors should tread with caution to avoid stepping on land mines.


FFHB and SYF are two other slow but steady climbers. For the long term, keep a close watch on PWORTH; it will invite speculative activities only after the RM0.18 price has been breached. BORNOIL is like cutting a big tree with a small saw, a red-hot speculative stock. XINQUAN and COMFORT should also be on your radar screen.