I think it is better to be careful and read carefully before making such postings.The Dow fell because of concerns in the emerging markets.
China's biggest bank ICBC note not HSBC (perhaps in haste one gets muddled up :)) was selling an investment product structured by China Credit Trust which guarantees returns of 10% a year.This product is due for payment this Friday to a tune of RM1.6 billion.There are concerns that China Credit Trust might not pay up.There have always been concerns of China's shadow banking where promoters try to market investment products to the unsuspecting public..something like the film "The wolf of Wall Street".
My guess tomorrow will see regional markets weaken as the Chinese authorities have to bring confidence to the banking system before Friday. Hope it helps.

hi bonescythe...take it with a pitch of salt.Sometimes your best intentions goes unnoticed.Part of human nature I guess..Unlike the US market which thrives on liquidity an analyst's recommendation is just a pebble in the ocean.It does not affect the market unless of course it is Warren Buffet.Over here in Malaysia the liquidity is not strong enough to leave a footprint chartwise.It is plain hazing and vapourises.The film "The Wolf of Wall Street" being a true story where Jordan Belfort cheated investors of some US$200 million and he went to jail.So you can rest be assured even your best intentions will attract negative comments. I do notice that in a sense it is a paradox.Most of us are taught to buy mutual funds but we are not taught to fish.And if we were to look at the top performing unit trust which is disclosed in one of the blogs here in i3investor for the last 5 years performance a well known pedigree unit trust is not even in the top 3.Just sharing my views and I support your initiative.

Happy new year to you.
Looking forward to your new thread format and listen to your views
and experiences.Next year will be even more volatile year I presume for
trading as 2 sectors are difficult to trade ie. property due to regulations in place and palm oil sector at best would be neutral in the first half.Oil and gas would be momentum driven as valuations are expensive and not noted for kind dividends.

Hope you are Ok bro. Matrix.Agree with ooi1955.
I just went for physiotherapy for plantar fascitis and learned
a couple of things.Steroid injection is a no,no.It takes time for
inflammation to cool and you have to do stretching exercises and
herbal patches.
It is good you are doing a charitable cause. Was in North Thailand last year and visited the dharmagiri orphanage set up by a Malaysian monk in Mae Hon Son. It was a an eye opener and it was a fantastic experience there.

No Connie, the definition of penny stocks is a bit arbitrary...there are stocks below RM1 which have good fundamentals no doubt as some of the stocks par value are 50 sen so you have to look at par value. A good indication...look at the day's top volume stocks and you get a feel where the penny stocks lie and you see warrants and stocks attracting high volume play where you exit at maybe 3 bids to make a tidy profit.You would probably exit intraday or play at T +3 duration.

Tough call # connie.
Good fundamental stocks are not penny stocks...it is literally a goreng stock as volumes disappear in 72 hours ...so you have to Touch and Go :):).
With the new tariff hikes in West Malaysia, syariah stocks rebalancing as some 183 counters are being kicked out (see my last posting), property counters are under siege with the Budget announcements and palm oil stocks showing no recovery with Sime Darby showing 50% drop in profits for 1Q earnings....stock selections become few and momentum based which favours Inwest 88 investment strategy. :)

Yeah...penny stocks...Touch and Go?

#invest88.......how are you doing? I am doing ok. What approach do you use when investing ..SA(?) or GA(Gut analysis?)as I saw your comments.
#sephiroth
Go to www.sc.com.my. On top right corner you see 29 November 2013 Islamic Capital Market.Click on it. There are 2 pdf files 29 November and 31 May 2013.You need to cross check as the 29th. November 2013 is the "filtered" list.
Yeah...invest88..how do you trade 37 stocks in 20 working days? Hihi..must be programmed trades?
With the government's proposed electricity tariff hikes and our Aduns in Selangor and Penang getting a pay rise{non issue really but the quantum?) it looks like I may have to follow invest88 and trade 37 stocks in a month.With inflation creeping and if I do nothing I would be dead man walking.:):)

#invest88 SC has just released a list of Shariah compliant securities where 158 securities have been excluded and the new list was trimmed down to 653 stocks now.
Notable deletions include Fibon, Engtex, Pantech , Yinson, Ann Joo , Tiong Nam Logistics, Patimas, MRCB etc.The fund managers are given 6 months to rebalance their portfolio......so these stocks may come under selling pressure which includes Tan Chong, Keck Seng,Air Asia to name a few.

invest88,great to know you have been through the highs and lows and come away an experienced player.Sometimes after playing the stock market one develops a gut feeling whether the stock will be in a position to break-out.Well at least you were there during the Superbull run and if you follow the random walk theory almost any counter will run.Today times have changed and the focus is on penny stocks.

Great job you doing here invest88 and keep it up.
One thing is for sure there so many ways to skin a cat and swee88
approach is different but delivers.
I guess the challenge is to monitor the stocks closely once you initiate a position especially the mid penny stocks range.Once a volume is created there is a burst for a few days , price stays that way for a few days in a range trading and you know the momentum has ended. But whether you like it or not this is where the volume play is mid size penny stocks not small cap stocks.

On the property sector GST will impact on the developers come 1st April 2015.The raw materials or inputs bought by the developer cannot be claimed back as these inputs are "exempt supply " and not "zero - rated supply" meaning that the developers will have to bear these costs or pass on these costs to the house buyer.The net effect will be these residential properties will cost even more.It might even defeat the purpose of house ownership.

Hi Bro matrix,
Thanks for the updates. I sure hope she can speak English as I am lost in translation in Mandarin.Snow Tibetan Mastiff? Really? If I remember correctly it is the most expensive dog in the world and China has banned its exports.Very furry and tall dog.Hope you can bring back one:)
The UMNO elections are over and with the Budget next Friday I guess property stocks would be on your radar now .

Hi bro matrix,
Care to tell which travel agency you can recommend for the China / Thailand trip? No, I have never been to the desert before ..was wondering whether it is really hot and not a fun way to get satayed.It is on my bucket list and would like to give it a shot.
Certainly I do agree that we need a combination of FA and TA to trade.
More so as I feel the Malaysian landscape has now changed from the roaring nineties.Previously it was driven by strong personalities that moved the markets.Today most of the price action are momentum based as there is a death of market leadership by bellwether stocks in the likes of Renong,Ekran etc.
There is simply no depth in the market to choose better quality stocks " But lots of hard works every working day try to find some winners, still catch some losers too.. "
That Bro Matrix...you are dead right..it sums up the challenge we face today.There is simply no liquidity to give pace to the momentum.

Have a nice holiday.

Hi bsngpg,

Please do not be hard with yourself with regard to understanding the financial numbers.Sometimes we are stumped with numbers that we do not know what or where to start.I am sure you are an expert in your own area of speciality.What we need to do is to see the forest from the trees and assess the risk of the company and also the sector ie. property sector.It is critical for the company to have free cash flow to declare for the dividends, service the loans and acquire the land banks.The effect is how will the share price perform based on just a few simpistic factors to consider as there are a host of other factors influencing the cash flow.
But looking at it objectively just to digress a bit most property developers make money not from property launches etc.The big money is made from transfer pricing where the listed company buy land from private parties apparently on a willing buyer and willing seller basis.Some of these transactions are made with related parties and they have above average profits already which is round one. Round two is awarding the tender for the construction and development of the land ie. road building, infrastructure and building. These could be awarded to construction companies which the directors are "in the know".Lastly when the condominium for example the air conditioners and built-in kitchen cabinets which are part of the promotional launch package..guess what who is the supplier of the kitchen hobs etc?
It is perfectly legal by the way and it cascades down the level of profits.So that is something to think about when you choose to invest in a property counter compared to a bank which is heavily regulated and some banks have policies to reward their shareholders ie. 70% of net profits to be paid back as dividends. You can look at other sectors like rubber gloves, reits etc.if you are looking at dividends for your retirement planning.Just my comments and sharing.

Glad to be of assistance matrixcool.I am plain novice here compared to CityTrader and yourself and I need "PG" ..parental guidance to guide me with regard to TA.:)
Guess some of you here are Buddhists reading from some of the remarks.October will be a busy Kathina month.Am Budhhist also.

ProfitMan,
Engtek : Research Report by PublicInvestment Bank : Fair Value RM1.51.
It is posted here under Market Blogs.

choolooi,
I guess you must be Malaysian Burmese with historical ties with Myanmar.

Thanks CitiTrader...hope you have a good trip.
Just that..it was like the stock KPS which matrixcool missed out and it rebounded fast and holding pretty firm.No need to say "P" lah..same over here ..maybe I need "PG". Just sharing and for your KIV if any.

Hi CitiTrader,
What are your views on PRKCorp?
Hope matrixcool is listening in.Looks nice on the chart pattern.

Hope you got onto Engtek, CitiTrader.

Thanks to CityTrader and matrixcool on interpretation of Engtex.Today is crucial as it is hovering around 1.22- 1.24 past few sessions and has broken out of 1.24 today.Not sure about bull trap as it has tried to break-out on high volumes a few times.The technicals like RSI looks pretty strong.

Yes agreed. You need to have to look at counters that are "basing" or building up a base with incremental volumes.That way it is a good chance of break-out and start an uptrend.A sudden spike in price without continuation volume is not a healthy stock to trade.
Engtek , I have been following closely , fits the criteria of basing and firm volumes.

Thanks to Htyeap and ProfitMan for highlighting the link from tradesignum.It helps to have complimentary tools besides i3investor screen to look at stocks for screening.
I guess at the end of the day Matrixcool will have a hard time entertaining our requests to look at stocks.Hope we can give him a break and go with the flow and let him pick his choices and we take our chances. Have a Kit Kat Day :)

I am inclined to go with CityTrader.Trading on momentum follows the orice break-outs and trend reversals and there is no lowest price possible.Sometimes when you pick for example RHB Cap or Pantech when it is heavily oversold you might caught in a bear trap as you have to clear a lot of sellers and it takes a few days for an uptrend to return.So buying at a lowest price possible may not be a good thing because you may not know how many sellers are stacking up as price inches up.
There will be a revaluation of Syariah compliant stocks in November as highlighted by septhiroth.Now imagine Tan Chong Motors being sold down as it is one of the affected stocks if I am not mistaken.What then is a cheap price even with good fundamentals?
What I am surprised is that funds have been buying Syariah compliant stocks all along because the guidelines were already there and in place.If the company wants to go into other businesses which can give the stakeholders higher ROEs on their capital we should give them our blessing.So when the analysts go for the quarterly reviews with the management they would know that the company would be Syariah compliant at that point in time and start adjusting their portfolios accordingly. So why the fuss now? It looks like the regulatory bodies overseeing Syariah compliant issues or oversight committees are not doing a dynamic auto-mechanism to allow full funtioning of the stock market without affecting the quality of the blue chips.
To me it is a changing goal post and that is bad for the market.
It would be interesting if someone here have a list of those stocks and grab those stocks because they have strong fundamentals it is only the TAs that will weaken their stock price due to the upcoming event.
Just my 2 sen worth.

Sometimes we need patience as right now we are seeing congestion buyers and sellers are equally strong.The fact it closed to match yesterday's closing price showed that the selling is well absorbed.
So it is beginning to move out from the consolidation phase.

It is good for big volume and close at RM1.24 as all the sellers were absorbed at the day's closing high.Stock to watch.

Yes agreed.During Peter Lynch's time the bull and bear market cycle is longer and fairly predictable.Now with savvy traders and funds with lots of cash coming in this will shorten bull and bear market cycles.
It would better to look at a shorter time frame for investment ie. 6 to 9 months.

Do read the latest issue on The Edge where there is an interview with group MD.They have plans to resubmit the application to buy Bank Mestika Indonesia and also looking at a Chinese bank in the near future.
There is also the recent resignation of Maybank's President of BII Indonesia and he is speculated to join another banking group.

Posted by Hafiz Millip > Sep 15, 2013 10:06 PM | Report Abuse

Look, if anyone of you want recommendation by paid analysts then just pick this jewels by RHB. http://klse.i3investor.com/servlets/pfs/19589pub.jsp There's no glory picking someone who obviously doing us a great favour in this forum only to get bash for nothing...its sick...

Well said Hafiz....now wonder if Public Investment Bank will feel the heat now....with its 41% share of the total unit trusts market in Malaysia...it better goreng ..goreng..and kaw...kaw too! :)

Thanks matrixcool for replying.
Thought that you had forgotten about it.No problem mate as I follow your thread closely.Huayang is on the buy list by some research houses.It has recently announced a bonus issue.
Perhaps you can give me your comments strictly on an objective basis.If it hits your trailing stop loss...would you hold it just because of the impending bonus issue? The problem here is one of value..it is giving out a bonus issue not free warrants.Now that is the dilemma I face...keep it and become an " forced investor" as you highlighted your experience in the stock market...or exit to find a new trending stock?Same here ...the fight between the heart and the mind.
Perhaps I would like to share with you for the benefit of many newbies who are closely following you with regard to the property sector.
The Budget on October 25 will be critical for all of us as the government is committed to reduce its fiscal deficit and opt for a balanced budget.
With regard to the property sector there are proposals to increase the real property gains tax(RPGT) which is 15% presently if one sells after 2 years (for new houses).Bank Negara might not even encourage developer's interest bearing scheme(DIBS) as the Sale and Purchase Agreement must reflect the discounted price.
With this in limbo and there is an element of uncertainty the property counters currently are in a bearish market.What is surprising even defensive REITS also are in a downtrend.Hope it helps and I look forward to your postings.

Yes..........keep contributing Mr. Ooi TB and Mr. KC Chong.Although I was taken aback in my posting to KC Chong some time ago when I asked something about CFFO as I come across FCF I did get an earful from KC Chong as I was familiar with FCF and it was a term commonly used in research reports.But that is not the point.
We are all here to learn and adapt to the changing market dynamics all the time.It is more so now as foreign funds have left the equity market and we are facing prospects of rising inflation.
We need to tear apart the stock price and see where it goes from here.Today I am using a hybrid of TA and FA because maybe that is the character of the Malaysian market.Unlike the Nasdaq and the US market , it is heavily supported by retail,fund managers and hedge funds on opposite sides of the divide ie. buy or sell and they have multiple options to hedge their risks.We have limited options here.
If we keep nailing people off here...soon this thread would be a "ghost town" and nobody contributes sensibly.
Try to be fair to all people who are here to make their money work for their retirement.
Eventually whether it is Hafiz, Saturn, OTB orKC Chong....you will have your own set of followers.That is how Peter Lynch, Warren Buffet etc. build upon their support base and catapult them to what they are now ...without us subscribing to their recommendations would they be successful?
There are hidden gems here in i3investor.com ...peope who make time to come up with stock and trading ideas and educating the novices along the way.I am sure of it.Keep up the good work to those who contribute.
Somebody once said......that separates the boys from the men.If you are a man...why follow the "bear trap " and become as foolish as the boy?
Let the hunt begins.

Great to hear Saturn and Hafiz offer an olive branch to each other.
We all look forward to it.I am sure we can tap on their resources for the betterment of the investment community here.I am sure all of us are serious investors and we need inputs and comments without getting personal.
Today in the Edge there is a massive write up on the Iskandar region with developers showcasing their project launches.
You must admit it was the government's initiative to create value and build townships....and I keep noticing the word "catalytic projects".
I remembered not too long ago when Malaysia was hitting 8% GDP growth rate...we had Cyberjaya and MSC Super Corridor and they were supposed to create jobs.There was even talk of setting up an equivalent of a movie studio , animation etc.
Were we not betting then?

Old wine in a different bottle perhaps?

Personally you need to check out the party LBS join-venture with on the last parcel in Zhu Hai.It is good LBS will pay special dividends over the next 4 years.It would mimic like a fixed deposit.The only caveat you need to check out on this Chinese developer ie. its ratings, gearing and free cash flow and its historical track record of dividend payments.If you feel it is up to mark then it is your call.
LBS was pretty quiet on the domestic scene for the last few years due to the above strategy adopted by its management to go offshore.It is a basically a mass scale developer ie. apartments going by its historical launches here and not a niche developer or boutique developer like Sunrise (now taken over ) or Tan & Tan.
I also think it was in the same China venture bandwagon which Farlim, another listed company,took but unfortunately for Farlim, not a good outcome.Unfortunately they did not take a copy of Sun Tzu's Art of War when operating in China.

Tough call Qii.Against the external market sentiments as described by you. the Malaysian economic fundamentals have to be addressed rather drastically as foreign direct investments have dried up with the latest report of a Chinese smelter cancelling its plans to set up base in Malaysia.As reported by one research house the bulk of the domestic investments were hugely concentrated in the property sector if I am not mistaken about 45%.
Unless we have a strong leadership to bite the bullet and expand the revenue base by widening the tax base and at the same time narrowing down the budget deficit and public sector borrowings ie. the twin devils facing both the foreign investor buying into government treasury bills and local investors trying to pick a gem of a jewel ie. profit margins are not impacted by the weakening ringgit and minimum wages where the current reportings have showed that net profits for most sectors have slowed with the exception of the banking sector.
The other main concern if you are a major shareholder of a public listed company....would you repatriate your profits from the sale of your overseas investments?According to one report and even Bank Negara acknowledged it is that we have seen growing outflow of private capital since 2008 General Elections.
I think the market is a leading indicator of future set of events because it discounts the hopes and worries.It would be a volatile market as it hinges on current account surplus which is narrowing,Petronas contributions to the government coffers based on prevailing Brent oil price not withstanding the statement by OPEC recently that in 2 to 3 years time US production of shale oil will increase and US would be a next exporter of crude oil and gas.Also palm oil prices have not recovered. It used to be RM2,800.00 per metric ton now hovering at RM2,400.00.
Yes I do agree one need to be invested but it takes guts to stay the course.Having your money parked in fixed deposits is equally a bad option as inflation would kick in with the subsidy fuel rationalisation.

Regional Asian markets down with India and Laos more pronounced.Is buying of US dollar the cause as investors seek the shelter of US dollar in times of crisis and for the first time there is a united Congress which bodes well for leadership?If that is true the US$ will be the one to watch.

DJ up 15 points from a high of 100 points today....not too good.

Fitch and Moody's have already made their assessment of Malaysia..now waiting for the wildcard Standard & Poor's.Wonder when will they make their announcement?

Yes agreed that KWTan should be commended for organizing and coordinating the contest.Although I am not in because I am in the same mindset as inwest 88 I applaud the 19 participants to make this site interesting and lively.
I also appreciate OTB coming in to mediate on issues between Hafiz and Saturn and hope all will take it in the right spirit.
On a key note I would say something about the private challenge between Hafix and Saturn.The market punishes you if you make the wrong call.
Today President Barack Obama made a last minute change in his policy and decided to ask for Congress's approval to sanction for his military action against Syria.That is a mark of a true statesman because, perhaps, he thought he may not make the right call. It is an act of humbleness not arrogance.I am looking at it objectively.So while the other participants have the luxury of choosing other stocks midway to achieve the 30% target ..they do not have the luxury.So it is a bit unfair to Hafix and Saturn.

Hi Tan Choon Chuan,

Hi Tan..There are 2 things to consider which the Finance Ministry is mulling presently.
Increase the Real Property Gains Tax(RPGT) which is 15% presently if you sell your property within 2 years which is for the sale of houses in the secondary market.The House Buyers Association or something to the effect is recommending increase to 25% and extend to 3 years.
For new property launches the government is considering doing away with developer's interest bearing scheme.This is avoid speculation because you are tempting investors to buy houses with attractive schemes to commit the buyers.With firm bookings the developer can approach the banks for banking facilities as banks are toeing the line to avoid over lending in the property sector.So you have to consider this aspect in your investment decisions.Hope it helps.

Hi Matrixcool,
I notice your stock selections are not really penny stocks but in the higher range towards the upper end of the ringgit. Is it better to trade on the above criteria because you can see the chart more clearly?
My guess is that penny stocks work in tight range and it is difficult to get confirmation of a breakout because it will settle down immediately the next day.I find monitoring penny stocks more stressful to enter and exit where your stocks picks you still have time to execute at minimal losses or premium.
Now with the reporting season most stocks are giving out higher dividends, free treasury shares, bonus shares and warrants.Prices explode prior to reporting date and that is a confirmation of a breakout...otherwise this stock has no trend at all.Would you still keep the stock ie. your example Hua Yang because it has not much liquidity or follow the trend and exit completely to lock-in your profits ?
Thanks.

Wow...I pity @Tan KW.
He is going to have a lot of work in his hands.
The part of intraday trding ....it is very hard to confirm or colloborate. For example say Maybank a few days ago when it was bashed down say for example from RM9.99 and bounce back to RM10.10 within the same day....how would @Tan KW know that ? According @Tan KW rules it is based on closing prices so intraday trading is out because there is a problem of verification.
I am just helping to fine tune the process and help Tan KW along the way. You may have to consider this also.

Tan KW..........what you are proposing means a lot of work for yourself in updating the records as it is a trading environment.It also means you have little time for yourself in terms of personal investing.
Invest88 proposes a static environment...make your decisions now and stay the course and wait for the results end December.
I think the issue here is timing to buy the stocks between September and December.Also if you have a stock that makes 30%...why stop at 30%?It could go higher....because this stock's super performance will compensate for the poorer performance of the others, say the other 3 stocks and pull his average up.Think of Aokam Perdana in its glory days.
Also the stock picker may want to exit if he finds the stock trading at high PERs and chose to close out his position to get a good performance as the stock can crash under its own weight once the Unusual Market Query is issued :).
Then, and only then , the person who makes the right timing to buy and sell the stocks during this period is certainly a person who knows to read the market well.
So the issue here do you put 100% weightage and start making the stock selection on 2nd September? Or a person could sit out the whole 3 months and come only in December and with luck...really luck..may end up the champion.
Just my observations and this site here is getting more healthy and objective contributions.

hi Tan KW...it is a good idea you are doing that as I felt it is timely and we welcome sharing of ideas and not to run down another person which I see that this website has deteriorated recently. You are right by putting a trading mechanism or rather to seek confirmation on the rules of the game.
From now until end December the stock picker has the right to make the call ie. sell rather than hold to capture the trading profits or got stop out by the market crash which is currently happening.If he does not make the call we assume it is buy and hold until end December if he does not give you his instructions.With that he can elect to pick another stock along the way.

Agree.It is best not to be overconcentrate on financials..it is a picture of the health of the company at a given time.It does not have any feel of the strategy going forward.Pos Malaysia will face a daunting task when users of checking accounts will be charged 50 sen per cheque effective April 2014 as Bank Negara is encouraging customers to use interbank transfers at 10 sen per transaction.
That will have some impact on Pos Malaysia earnings as mails now are shrinking in volume due to technological changes in communication.
Now is the result reporting season and one can notice some companies are announcing higher dividends, treasury shares or warrants for minority shareholders to cling onto the shares on a long term basis.
Is it worth it? With ringgit weakening against the us dollar and the prospect of inflation emerging the stock will have to perform well in the current cycle to give either capital growth or higher dividends going forward.Sometimes watching a stock trend is equally important whether the stock is ready to mount the challenge in the current bearish environment.
My 2 sen comments.

kcchong,
What is CFFO? Usually analysts would depend on FCF on tracking the company's use on credit / cash to determine the health of the company operations.Which is a better guide?
In the case of Inari Berhad was wondering where you got the balance sheet as I doubt any brokers cover it.
Inari shows good growth in revenue and profits as per your analyst as it intends to hit the RM3 billion mark in revenue as it acquires an offshore asset.
The problem is the nature of the industry which one has to acquire equipment continuously to keep pace with the demands of the technological changes in the consumer electronic market.
You are right on corporate governance as I do not know where the stakeholders came from and they have to be one of the existing players in the industry.
The only drawback I notice with global Malaysian players , most of the profits are parked offshore and the dividends are paltry.Most of these stocks are capital growth stories with no form of insurance like good dividend payout eg. like banks like Maybank and Public Bank.
Your views? Thanks.

Extracted from Malaysian Chronicle

http://www.malaysia-chronicle.com/index.php?option=com_k2&view=item&id=148601:msia-will-be-hit-another-asian-financial-crisis-may-be-brewing-this-time-from-india&Itemid=2#axzz2cZu4ztiR

Thanks...I did not do too well there.Think the system is based on price breakout rather than momentum which is too late and the window is too small to make capital gain based on my experience and since then stopped trading. :(

Hi Mr. Ooi,

Just joined the forum recently.Are you still with T3B?
Because the company you highlighted is a difeerent company...not to sure though.
Thanks.

hi kcchongnz,
Would appreciate a copy of your FA template with regard to the 5 rules of investing.Hope you can send to cb.mong@gmail.com.
Thank you.