Geomancy

I have recently came across an article in a magazine which I find it very interesting and holds true based on the life that I am going through.
The summary of the article by David Koh, the Founder and Principal for Malaysian Institute of Geomancy Sciences. In this article, it mentions that One's destiny in life is determined by what I call the '4Rs'. It simply means that success is about being in the right place with the right people and saying the right thing at the right time. Everything happens for a reason".

In other words, if you are still not making it in life, it means that you are not in :-
1) right place
2) meeting the right people
3) do the right thing
4) at the right time

So is there anything you could do about your life? The answer is no, everything is fated. If Mark Zuckerberg did not meet the Winklevoss twins during his years in Harvard, then there won't be Facebook today. It was the Winklevoss twins that have given him the idea of Facebook.

I believe things happen for a reason and is fated. You are not the destiny to be somebody, then there is no point forcing it, cause no matter how hard you try, you won't be making it, unless you have the luck of the "4Rs". Do you ever experience in your life, no matter how hard you try, you are still not achieving it? However, your average Joe Next Door, is just slumbering throughout his life, but is making it big time as compared to you. That is because he always have the "4Rs" with him.

So what is the message that I would like to share in this post? What will happen, will happen, what's yours will be yours. It is all in your destiny when you were born. No need to stress out, no need to force it, just take things easy and appreciate and enjoy life. After all, life is short

Is this the end for DRB Hicom Rally?

The recent rally of DRB Hicom ("Drbhcom") makes me think that one can still good money trading in Malaysia market as the current rally of Drbhcom comes with a hugh volume to support the upward move.

The important question now is the rally over for Drbhcom. Well after going through the technical and fundamental analysis, I believe that the rally for Drbhcom is crazily chased up by the irresponsible stock operators.

Lets us start with the long term analysis, based on the long term analysis, it shows that Drbhcom has moved furiously up in 2 stages, the 1st stages is from RM 1 to RM 1.70 for a percentage gain of 70%, the second stage is from RM 1.70 to RM 2.50 for a gain of 47%.  Will Drbhcom continues it's upward move to the 3rd stage which is more than RM 3.00 for a gain of at least 30%. The answer may be yes, but the risk is too high.

The second upward stage move is supported by the news that Drbhcom is acquiring Proton. So is it justifiable for Drbhcom to rally on this news. The answer is a big no. If you tell me that Drbhcom is acquiring the casino operators in Macau, China such as Wynn Resort, Las Vegas Sands or Melco Crown, then I would say that it is justifiable for Drbhcom to experience such an upward rally. However, Drbhcom is only acquiring Proton which is a "ok only lar company, who is trying to stay a float in the automotive market which is very competitive". Moreove, with the Drbhcom acquisition of Proton, will Proton still be consider the National Car and enjoy all those tariff, duty and special treatment from customer, the answer might be a big No!

I do not want to comment much on Proton as I do not do a detail reseach on it, however based on the quarterly earning reported, Proton only show 2.8 cents for the latest quarter. You take that mutiple by four quarter and it will come up to 11.20 cents. At the current price of RM 5.41, it is a whopping price earning ratio of 50 times. Holy cow!

Anyway for the short term analysis, both the MACD and stochastic indicators are pointing to a very overbought position for Drbhcom. I believe over the short term (between 2 or 3 weeks) Drbhcom will correct itself to the RM 2.50 level at least.

Based on the quarterly earning growth for Drbhcom, it does show a good improvement from quarter to quarter. At the current price of RM 2.80, it is trading at an PE ratio of approximately 13 times which is not bad compared to Proton.

If you add up Drbhcom and Proton Quarterly earning, at the average quarterly earning of RM 7.80 cents, at the price of RM2.80, it is more acceptable as the PE ratio is only around 12 times.

Conclusion:

At the current price of RM2.80. Drbhcom appears to be in an overbought position, I believe the short term correction for this stock is inevitable, however, I believe that after aquisition of Proton and consolidating Proton earning into Drbhcom coffers, Drbhcom should be trading at the range of RM 2.00 to RM 2.60.

Disclosure:

I currently do not hold any position in Drbhcom and do not intend to trade Drhhcom for the coming short term unless it correct itself back to the 2009 crisis level at around RM 0.60 cents.

Is this Rally Over for Axiata?

This is another one of my favourite stocks that I have neglected in the past. Even though I did not participate in the rally for this stock in the past, I am still keeping it in my radar as one of my favourite stock, as I believe that one fine day, I might be all in for this stock when the time is right. However, at the time being, I will just stand aside and analyse this stock for those who want to trade this stock or already in this stock.

Is this rally over for Axiata?

Well lets look at my long and short term chart analysis follow by the recent four quarterly earning result.

Looking at the long term chart, Axiata has been trending up since March 2009 from RM 1.30 to the current level of around RM5.00. If you would have bought it at the lowest point at RM 1.30, your investment would have quadruple by now.

Based on the shape of the chart above, it looks like it is currently forming a round top which means that this stock might be coming down in the near future. In August 2011, the trading volume for Axiata is superbly high, it can means that the smart money is already getting out by creating a false signal for the dump money to go in and buy Axiata.

I might be wrong on the rounding top, but it is definitely a big no for me to invest in this stock at the very top of the chart, as the risk is too high and the chances for this stock to come down further is tremendous.

As for the short term chart, all the technical indicators such as MACD, Bollinger Band and Stochastic are currently showing a downward pattern for this stock in the coming near future. The first support for this stock should be at RM 4.68 level and after that if the Asia Market really start to go into recession starting from China, then I would expect that Axiata will go down to the RM 2.70 in the future. Even though Axiata is a strong fundamental stock for now, anything can happen, remember stock like Genting also tumble all the way down to RM 2.00 in the Asia Financial Crisis in 1997.

As for the fundamental analysis on the previous four quarterly earning, it is showing fantastic earnings growth.  This stock manage to break record revenue on the latest quarterly earning, I am not surprise that the latest quarterly earning in November 2011 will be broken again in the coming quarters. At such I would say that fundamentally this is a very strong and solid stock to invest in.

Conclusion:
Even though fundamentally this stock, Axiata, is very positive, however, technically wise, looking at the traders, speculators, stock operators perspective, this stock is due for a very sharp correction. Therefore, I would not recommend buying at this level, shall you want to invest in this stock, you should wait at the sideline for a better opportunity. Perhaps for the next Asia Crisis which I predict will happen in the coming few years.

Better be safe than sorry. There is a malay saying that I like very much and remember till now during my primary school times, it is "sikit sikit lama lama menjadi bukit". It means that little by little, long long time it will became a mountain.

What's Now For CIMB (January 2012)

Whoever is in charge of this company is doing a damn good, fantastic, superb and wonderful job. He is truly number the best fitted person in bringing up the reputation of CIMB Bank.
I did not do any research at all in the news but what my comment and my praise is based on my observation of CIMB present in the market. CIMB Branches are all located in superb location mostly facing the main road. Previously my perception of CIMB is a not so up to standard bank and run and manage by laid back bank's employee. However, my perception has changed now. CIMB in my mind now is the number 1 bank in Malaysia which have very good potential of penetrating the global market.

Anyway, back to the important topic which is "What's Now for CIMB". As per the long term chart above, CIMB has already broke it uptrend line and is currently consolidating at the RM 6.50 to RM 7.50 trading range. Most of the technical indicators that I have heavily relied on such as MACH, Stochastic and Bollinger Band did not really show any indication whether this stock is moving up or down based on my analysis.

As for the short term chart, it shows that CIMB is currently trading side way with a down trend bias.
MACD and Stochastic indicators are now pointing toward negative down move for this stock for the short term.
I have a feeling that CIMB might head down to test the important support at the RM6.60 level. It is based on my sixth sense looking at the chart as I do not have concrete points back up for it.



As for the EPS and Profit, CIMB has shown good improvement quarter over quarter. It has managed to break record one quarter after another in term of profit and EPS.

Even though now it is looking finger licking good for this banking stock, however, I must caution all investor and speculator who are currently trading heavily in banking stocks.

I believe for the coming 1-2 years time, Malaysia will get into a deep depression. It will all start from China and spread to the whole world. Malaysia biggest hit will be in the property sector, however, banking stock will be the hardest hit as well due to the crazy amount of personal and property loan that banks are currently giving out. I do not need to explain much, for all the smart people out there, you know that the property crisis is coming and the Malaysia banking industry like the United States will be hit the hardest.

Therefore, for those who wants to make good profit trading on any banking stocks in Malaysia might want to think twice whether the risk is worth taking, especially for the long term investor.

What's Now For Unisem (January 2012)

Unisem was once one of my favourite stocks. I have missed the ride up for this stock in 2009 when it was trading around RM 0.50. It is a good stock with good fundamental and also pay dividend regularly. Even though I did not make any gain for this stock during uptrend of this stock, I continue to monitor hopefully one day I will be able to ride this stock again when the time come as I believe what's go up fast can also come down fast.

Based on the long term chart, Unisem strong support is in the price of RM 1.00. If this level is penetrated, the lowest it can go down, I believe, is RM 0.50. When it ever happened again, you can surely bet on this stock as this stock is cyclical stock which move up furiously in 2-3 years time and vice versa.

As of January 2012, based on the short term chart analysis, this stock has recently broken its downward trend. It has touched the important support of RM 1.00 and manage to bounce back convincingly. I believe this stock is currently moving up to the RM 1.55 level, which is support turn resistance level for this stock.

Based on the latest quarterly earning, the EPS for this stock has reduced tremendously from the EPS 0f 6.04 in Feb 24, 2011 to the recent quarterly EPS of 0.78.

The EPS for this stock is very bad currently, I did not do a detail research and studies on what is the cause for the bad EPS, however, I believe it is due to the increase in the cost of material or the downturn in Europe which have reduced their order.

Conclusion
For the short term, one can make quick gain of this stock of about 10-15%. Unless Unisem manage to post improve in its next quarterly EPS, I do not suggest to invest in this stock for the long term.

If this stock ever go down to the RM 0.50 level, I can swear to god that I will invest every single cents that I have in this stock and ride this black stallion up for at least a 4 bagger gain.

Happy Trading 2012!!

My Latest Winning of RM 26,000

I have recently make a paper profit of RM 26,000. Am I proud of myself? The answer is no. Whatever come in fast and go out fast as well. The most important in the art of trading is being consistent.

A recent colleague of mine by the name of Leslie asked me what is the best stock to buy now. Holding a professional job with a degree graduate, Leslie is unable to decide on what stock to invest although he might be holding few hundred thousand in its coffer. Well I told him for him to start making money and learn the art of trading, he better be prepare to lose big money first.

However, my advise for him is to stay out of KLSE market at this moment in time, as most of the stocks in KLSE are already over priced and the risk is too high to enter at this moment.

So what is the stock that I have bought and managed to gain more than 15% in paper profit?
I am currently still holding this stock as I believe that this stock will bring me a profit of at least 30%  before I decide to realise my gain.

The chart above is currently showing a very strong and nice upward trend coupled with all the positive technical indicators. Fundamentally, this stock is also turning around in its business and with huge revenue potential in the coming future.

I am currently waiting for a big push by the operators/speculators with their high adrenaline rush before I will take my profit as most of those operators/speculators will have to cover back their long position.

Anyway stay tune and I will update all when I sell this stock and take good profit.

PS: By the way, this stock is not a KLSE stocks.

KLCI Index Upward Momentum to Continue?

Hi all readers, this is my first post for the year 2012. Well, time is moving really fast like a blink of an eye. I particular like the poster above, it truly shows the 1 Malaysia spirit. Anyway, I do not want to comment much about it, as my main topic here is where will KLCI Index Upward Momentum to Continue?

Long Term Chart Analysis

It has been more than 1 years plus that I did not trade in Bursa Malaysia, as I have move all my resources/bullets to the NYSE and Nasdaq Market.

Even though I am now trading in the oversea market, however, I have not forgotten the my local market KLCI as it has make me very rich once before. I am continuing to get in touch and analyse the local market chart.

As per the KLCI Index above, based on the Long Term Chart Analysis, above, most of the technical indicators such as MACD, Stochastic Bollinger Band and the rest didn't really indicate a strong signal whether KLCI is moving up or down. However, looking at the starting point of 840 (March 2009) to the current point of 1,520 (Jan 2011), it looks like a fast upward surge to me. Well, honestly I have miss this speeding train and I am quite regret about it.

Short Term Chart Analysis

Based on the Short Term Chart Analysis, KLCI upward trend looks strong and may continue to test the strong resistance at 1,600 level. Whether it will break the 1,600, only gods know. Based on the MACD and Stochastic Indicators, it does indicates that KLCI may head to test the 1,600 resistance in the near future.

Well, if you ask me whether what stocks should you buy now, my answer is better wait in the sideline if you are already out of the market. If you are still in the market, then you can wait for the KLCI to test the 1,600, if it break the level, then you stay on, but if it fail to breach the level, you should sell out and stay in the sideline. 

As for me, I am currently not in Bursa Malaysia. I am currently trading in the NYSE and Nasdaq market. I believe the risk is very at this level for KLCI and it is not worth the risk for me. What goes up fast may come down fast as well. 

Well, this post marks my come back in blogging about Bursa Malaysia. I hope that my future analysis will help all the traders in making their trading decision.

All the Best and Happy 2012 and may your profit double from here!

Is Drbhcom a Buy Now?

The answer is it is a big sell now at RM1.70 or above.

Why there is a sudden rush for Drbhcom to jump so high so fast?
Lets look at the past 4 quarterly earning:
Quarter 3, 2009 = 5.36
Quarter 4, 2009 = 13.41
Quarter 1, 2010 = 8.16
Quarter 2, 2010 = 6.84

I believe this is definitely the work of the stock operator. The stock operator has been accumulating this stock at around the level of RM1.00

At this level, it is painting a adrenalin rush picture to the crowd so that all the dump money will jump in while the smart money is getting out.

Based on the technical analysis:

Combining the 2 previous candle, the candlestick is showing a shooting star pattern which is extremely bearish.

The MACD has been far stretched and consolidation is unavoidable. Imagine getting a piece of rubber and stretch it at the other opposite side. It will surely break.

Stochastic is showing that the blue line is crossing over to the red line. I would not want to be in this stock when it happens because stochastic has the ability to show reversal before the rest of the other indicators.

However, I might be wrong in my analysis. But trust me, if you are already in, you should choose to get out. For those who are not in yet, you can start regretting that you didn't get in at the RM1 level, but you should continue to stay out.

Where is KLCI heading from here?

I believe this is a million RM question that everybody wants to know. I believe KLCI is on the verge of a major pullback/correction which will reverse the current uptrend.

So when will it happen? Honestly, I am not sure. I believe nobody know the answer either. Wait a minute, the stock operator will know the answer, but will they tell you? The answer is a big "NO".

Based on my short term technical analysis, I believe the time is almost ripe for a reversal. However, the MACD and Stochastic do not show a reversal signal yet. Therefore, I think KLCI might have a few days more or even weeks before the trend reversal happened.

However, if you look at the 1st chart above, it is pretty scary looking at how high the KLCI has gone from 800 to the current level of 1,500.

If you still think you can make good money on KLCI, I just want to tell you that the smart money have already move out, now that the dump money is slowing supporting the KLCI. Once the dump money, discover KLCI will not go any further, all hell will break lose, trust me, when the Volcano burst or the Tsunami come, you will have no time to run.

However, I might be wrong, KLCI might still go further, but the risk is too high and is like swimming on the sea knowing that the Tsunami is about to come and eat you alive.

Run baby run!

Influential People Characteristics

Influential people have the following characteristics.

1. They have integrity. Their word is their bond. When they say that they will do something, they always follow through with it. They don't steal or cheat.

2. They have an optimistic attitude. They always think a glass is half full and that everything is possible.

3. Excellence is their password. Everything they do is done to the best of their ability. They never settle for second best in any aspect of their life or behavior.

4. They are decisive. They know what they want and they make decisions quickly.

5. They are goal setters. Quick decisions are followed by setting a goal to ensure that the necessary steps are in place to reach the desired result.

6. They make a commitment to everything they do. They commit to work harder at everything they attempt and never give up.

7. They set priorities. They ensure that an important thing is handled first and a less important thing is done later.

8. They are very good with relationships. They are loyal to their friends and family and fair to everyone they encounter.

9. They are full of self confidence. There is no doubt in them about their capabilities because they know that they can handle anything life throws at them.

10. They practice good time management. They ensure that time is not wasted on frivolous things and that important things get the time that they deserve.

11. They show gratitude for what they have and generosity to those in need.

12. They are self motivated. They do not need any outside influence to motivate any of their actions as they have the ability to provide all the motivation they need to accomplish any task.

If you can master these twelve characteristics you will be amazed at how influential you become in all facets of your life. Pick one of these traits and practice it daily until it becomes second nature to you.

When you have mastered it, go on to the next one. Yes, it will take time to master them all, but think of the future you will have when you do.

The sooner you start, the sooner you will become the master of your destiny.