I think psychological barrier of RM1.00 is affecting MYCRON from meletup.

Based on the above article, CSC Steel and Mycron should go up because they are the main beneficiaries of Megasteel closure.

Rebar players like Masteel, Southern Steel and Annjoo mostly use scrap steel for production. Hence, closure of Megasteel does not benefit them.

From Mr Koon Yew Yin:

A few days ago, I posted my article “Megasteel closure will benefit other steel manufacturers” to encourage investors to buy CSC Steel which will benefit the most, in my opinion. Those who believed me, would have bought and now would be waiting for the price to go higher.

In the last few days, investors simply rush in to buy shares of steel companies indiscriminately without the clear understanding of the various kinds of steel products and their manufacturing process. As a result almost all the share prices of steel manufacturers including rebar (for concrete reinforcement in construction) players such as Masteel, Southern Steel, Annjoo; downstream players like Choo Bee, Leon Fuat, AYS, Leader Steel and etc went up indiscriminately.

However, one must realize that Megasteel only produces HRC (hot roll coil) and CRC (cold roll coil). HRC is the raw material used to manufacture CRC. Therefore, CRC players which use HRC as raw material will therefore benefit as they are now able to import cheaper HRC from China (due to Megasteel closure). Consequently, the main beneficiaries of Megasteel closure will be CRC players like CSC Steel, Mycron, Yong Kong and Eonmetal.

CRC has wide usage in various industries like construction (building facet, roofing, fencing, piping and etc), automotive, electrical appliances and many more. Currently CRC players in Malaysia are protected as government recently extended anti-dumping on imported CRC products from China, Vietnam and Korea ranging from 3.06% to 23.78% for period of 5 years starting from 24 May 2016.

Other downstream players that use CRC as raw material will only benefit if the CRC suppliers pass through part of the saving to them.

Rebar players like Masteel, Southern Steel and Annjoo mostly use scrap steel for production. Hence, closure of Megasteel does not benefit them.

However, global steel prices have been bottoming out since early 2016 due to closure of underutilized and inefficient factories in China. Steel prices have generally rallied more than 40% from the bottom in Dec 2015. This is the main reason why all steel players have started to show profit. Many steel players which were trading as if they were on the brink of bankruptcy are now performing better and able to generate decent profits. Previously all steel players have suffered as a result of cheap steel import from China which led to high impairment and unsold inventories.

In addition, in June 2016, the Edge reported that rebar players have lodged a complaint to MITI on steel dumping by China and are currently awaiting result pending investigation. If successful, they will be protected by the government imposing a safeguard tax on imported steel bars. This could potentially be good news to rebar players but one must note that high rise building uses the most rebar, unlike infrastructure projects like bridges and MRT.

Investors must realize that there is an oversupply of houses, offices and condominiums in every town and city in Malaysia. As a result the demand for rebars and water pipes will definitely be less and companies like Masteel, Ann Joo Southern Steel and Choo Bee will be affected.

I am not telling you to buy or sell any share. I am writing this piece to share what I know about this steel industry.

I am obliged to tell you that I am holding a lot of CSC Steel shares and if you buy it, you are doing it at your own risk.

Yes moneySIFU, Mycron is a laggard today.

Dumb dumb hold CSC Steel and Mycron Steel for 6 months to 1 year and averaging down when there is an opportunity.

Inter-Pacific Securities Sdn Bhd head of research Pong Teng Siew told theedgemarkets.com:

However, one bright spot he cited is the steel sector, which is also because it came from a low base. "There is a good chance of (steel counters) still climbing up in the coming months," he added.

Date: 19.09.2016

In a nutshell, domestic CRC steel players' share price have still been far trading below their potential fundamental value for the next 4 quarters (from July 2016 - June 2017). The values as shown below:

CSC Steel Mycron Steel
Projected next 4Q earnings (RM'000) 110,072 63,282
Projected EPS (sen) 29.9 22.4
Target PE (x) 9.0 8.0
Fundamental value (RM) 2.69 1.79
Potential upside (%) 37.2 94.0

In a nutshell, domestic CRC steel players' share price have still been far trading below their potential fundamental value for the next 4 quarters (from July 2016 - June 2017). The values as shown below:

CSC Steel Mycron Steel
Projected next 4Q earnings (RM'000) 110,072 63,282
Projected EPS (sen) 29.9 22.4
Target PE (x) 9.0 8.0
Fundamental value (RM) 2.69 1.79
Potential upside (%) 37.2 94.0

In a nutshell, domestic CRC steel players' share price have still been far trading below their potential fundamental value for the next 4 quarters (from July 2016 - June 2017). The values as shown below:

CSC Steel Mycron Steel
Projected next 4Q earnings (RM'000) 110,072 63,282
Projected EPS (sen) 29.9 22.4
Target PE (x) 9.0 8.0
Fundamental value (RM) 2.69 1.79
Potential upside (%) 37.2 94.0

Dumb dumb hold for 6 months to 1 year while averaging down when there is opportunity.

http://www.theedgemarkets.com/my/node/303997

However, one bright spot he cited is the steel sector, which is also because it came from a low base. "There is a good chance of (steel counters) still climbing up in the coming months," he added.

Dumb dumb hold for 6 months to 1 year while averaging down when there is opportunity.

http://www.theedgemarkets.com/my/node/303997

However, one bright spot he cited is the steel sector, which is also because it came from a low base. "There is a good chance of (steel counters) still climbing up in the coming months," he added.

The Royal Malaysian Customs Department will enforce the collection of anti-dumping duties and this measure will be effective for five (5) years, from 24 May 2016 to 23 May 2021. With the imposition of anti-dumping duties on imports of Cold Rolled Coils of Alloy and Non-Alloy Steel from the alleged countries, it is expected that the issue of unfair trade practices will be addressed.

The anti-dumping duties have already started on 24 May 2016. Why bull8888 said government will announce it.

Dear moneySIFU/bull8888, the anti-dumping duty of 30 - 40% is it for import of CRC.

I switched from CHOOBEE to Mycron. Mycron is also in Mr Ooi's red hot list.

Hopefully tomorrow can break and close at above RM2.

Tonight we see Federal Reserve got raise interest rate or not. I bet no.

http://www.thestar.com.my/business/business-news/2016/09/15/hot-and-cold-steel/

It is only temporary profit taking. Steel stocks will recover.

Steel stock play just started, iron ore price is at 5 years low, this steel play will last at least until 2017.

http://www.thestar.com.my/business/business-news/2016/09/15/hot-and-cold-steel/

It is only temporary profit taking. Steel stocks will recover.

Steel stock play just started, iron ore price is at 5 years low, this steel play will last at least until 2017.

Posted by Ooi Teik Bee > Sep 16, 2016 03:06 PM | Report Abuse

ChooBee (TP: 2.95) is the best followed by CSCSTEL(TP:2.97), these are my picks.
I am not telling you to buy, I just answer your question. I have both ChooBee and CSCSTEL in my portfolio.
Thank you for your support. Truth will prevail, I am not worried.
Thank you.

Posted by Ooi Teik Bee > Sep 16, 2016 03:06 PM | Report Abuse

ChooBee (TP: 2.95) is the best followed by CSCSTEL (TP: 2.97), these are my picks.
I am not telling you to buy, I just answer your question. I have both ChooBee and CSCSTEL in my portfolio.
Thank you for your support. Truth will prevail, I am not worried.
Thank you.

（中国．北京19日讯）宝钢、武钢两大钢铁央企的重组方案即将公布。财新网报道，国务院国资委已于8月最后一个星期通过宝武重组方案，并于9月初上报国务院。

合并方案的核心内容是宝钢将扮演整合者的角色，吸收合并武钢，武钢整体并入宝钢。新成立的集团拟命名“宝武钢铁集团”，原武钢集团成为新集团的子公司，拟更名为“武钢新产业发展公司”。

但报道同时称，上述方案尚在高层审批过程中，合并细节或新公司具体名称仍有变数。


文章来源：
星洲日报‧财经‧2016.09.19

But it is so hard to trade because the buy Q is so small until I have difficulty in selling.

http://www.thestar.com.my/business/business-news/2016/09/15/hot-and-cold-steel/

It is only temporary profit taking. Steel stocks will recover.

ALL steel stocks in red. The Megasteel closure news just known by people last weekend. The steel theme play still has space to go up. It has not end yet. Maybe tomorrow ALL steel stocks back in green.

KYY and OTB just promoted ChooBee and CSCSTEL during the weekend. It cannot end so fast one.

Very low number of free float shares in the market for ChooBee. It can be easily jacked up but it can also easily dump down. Today is T + 3. Wait till the final minute only can see the actual price.

Still got one more steel stock: LSTEEL is not done yet. Kindly please provide as well.

Shrobin calculated total value of AirAsia = RM4.30. But now still no sign that it is breaking away from present hibernation mode. Hope tomorrow will be better. Pekor still waiting for RM3.30. You are not the only one. Many are supporting you quietly.

Ringgit also rise back to USD4.10.

I have read Sek Hock See's article many times. I am wondering whether it is a new news or an old news. The key sentence is "I can confirm that we have received a takeover offer recommendations" but the buyer is not named.

When can AirAsia fry again? DRBHCOM and FGV both flying yesterday.

But call warrants not doing well because the mother share did not rise up much.

http://www.themalaymailonline.com/malaysia/article/input-error-caused-kl-bound-airasia-flight-to-land-in-melbourne

Tricked by old news (7 Sep 2015) by Calvin.

This forum very peaceful without Supermx2 and God_Of_Truth disturbing. Peaceful investing.

Tomorrow, Thursday and Friday, AirAsia and all its call warrants must go up. The selling due to the false alarm of Zika virus is overdone, dropping from RM3.30 to RM2.83 (a massive 47 sen). There should be a relief rally.

Dear ProfitMan, AirAsia has been under heavy selling pressure due to Zika virus outbreak until RM2.86 on 6/9/2016. But Tan (TA Securities analyst) said that the Zika virus will not have any significant impact on airline companies such as AirAsia Bhd and AirAsia X Bhd (AAX).

When contacted by The Edge Financial Daily, AAX chief executive officer Benyamin Ismail responded that no impact is expected from Zika virus on AAX’s passenger number as well as the tourism industry.

What do you think the next direction of AirAsia?

Tan (TA Securities analyst) said that the Zika virus will not have any significant impact on airline companies such as AirAsia Bhd and AirAsia X Bhd (AAX).

When contacted by The Edge Financial Daily, AAX chief executive officer Benyamin Ismail responded that no impact is expected from Zika virus on AAX’s passenger number as well as the tourism industry.

http://www.theedgemarkets.com/en/node/301888

Okay! with the above news, Air Asia will rebound tomorrow onwards.

Three analysts told The Edge Financial Daily that it was simply a knee-jerk market reaction to the Zika virus news. They pointed out that unlike the Influenza A (H1N1) virus or severe acute respiratory syndrome virus, the Zika transmission rate is very slow and will not have much impact on glove makers’ revenue and profit.

Tan said that the Zika virus will not have any significant impact on airline companies such as AirAsia Bhd and AirAsia X Bhd (AAX).

When contacted by The Edge Financial Daily, AAX chief executive officer Benyamin Ismail responded that no impact is expected from Zika virus on AAX’s passenger number as well as the tourism industry.

http://www.theedgemarkets.com/en/node/301888

http://www.thestar.com.my/news/nation/2016/09/06/nation-first-zika-patient-gets-to-go-home/

Ya loh, everyday dropping, sienzzz...

Dear Icon8888, is RM2.80 a strong support which will rebound?

Posted by francishuat > Sep 5, 2016 06:41 PM | Report Abuse

You know what, I think tomorrow will gap up. Chart shows rather consistent that its well support at RM2.8x
===============================================================

I think so as well. 26.08.2016 chart.

Dear Pekor, we see tomorrow got technical rebound or not.

If AAX can go up, that means Zika is negligible already. So Air Asia also can go up.

Why AAX can go up but AirAsia going down? Both also under the Zika affect..

We must monitor the number of Zika cases in Singapore everyday. After sometime, it will stabilize. And AirAsia price will also stabilize and waiting for the next run up.

I will dumb dumb hold C36 until Christmas eve.

http://www.theedgemarkets.com/my/article/immediate-support-airasia-remains-rm280-says-alliancedbs-research

Immediate support for AirAsia remains at RM2.80, says AllianceDBS Research.