Friday, August 22, 2014

Penang Trip




It is confirmed that I will be driving up to Penang tmr morning ... yeah .. kinda excited and hope I could sleep early today.

I m thinking of taking second-bridge ... and should reach there for lunch.

Check-in 2pm ... bath and prepare for 3pm talk. It will be nice to meet few of them, and some travelled from Kedah(wow).

Then, at night will be meeting some trading-kaki for drinks. Planning 8pm or so.

Sunday morning 9am still got another session ... and then, off home I go after that.

Topic : How to trade breakout(will give my latest example Fitters) and technical rebound.

Those wish to join, contact me at cpteh@yahoo.com

See ya

TEH


Wednesday, August 20, 2014

From hot to not?



This morning, The Star showing the signs? I posted to my group to be cautious and take profits in many penny counters such as Marco, Asiapac, Keladi ... yesterday was GPA and many of such penny-rally counters.



AsiaPac : I bought yesterday as it breakout of 32cents ... managed to sell half in the morning, then some panic-selling around making it lower than my cost now. Stuck with another half, clear if 32cents broken.



Ideal : Was ideally at 80cents yesterday ... now at 64cents. Who is selling? Ideally ... it should be ..



IJacobs : Suspended pending announcment . Then ... from 72cents now 57 cents ...



Marco : This one treated me well ... bought 20.5 due to breakout sold 24, bought back 23.5 before closing yesterday and today sell 24.5-25 done in the morning. It went to hit 26(a member told me he sold at 26). It closed 21. Due to panic-selling, I thought of buying back at 20cents? It was not done.



PDZ : The operator(s) decided to release some ... and take profits? Went above 40cents, closed below 30cents? Who is selling? Halim? Mara? Or ... someone else?



PUC :


Sumatec : Dived 28% today, unfortunate for those chased in the morning. This is one hot-stock everyone is talking about when it breakout 52cents resistance. Hope none of my members punted as I do not trade her.



Zelan : Recently was in play too ... up from 26cents to 46cents ... now we are seeing 36cents. Very speculative? Avoid, then.

These are RISK of trading penny-speculative counters ... if we are late-comers, we have to sell for losses. Is the game over? Averaging down is a definite NO to me. Cut-loss?

Generally, if we are newbies and novices ... we should not be trading such stocks.

TEH

Tuesday, August 19, 2014

What is hot, what is not.

Tuesday ... raining ... a relaxing day.

Went to Shah Alam for some Kementerian tasks, then ... dropped at Plaza SA for nice drink ... well, not monitoring much ... penny-stocks shooting!!

Well, penny-rally making many penny stocks moving furiously. Yeah ... goreng-time on for many retailers to jump in and out.

Marco : Breakout of 20cents yesterday, I bought 20.5cents ... zzz ...

Keladi : Breakout too ... buy buy buy.

TalamT : Bought 13cents, was queueing for 12.5cents for days ...

GPA : breakout 15cents ... now 19 cents ... UMA soon?

PDZ : really boleh ... really hot. VERY hot. UMA? What is that, bursa?

Sumatec : broken 50cents ... now 60cents ...

Ideal : Well ... shooting so so high, but today(now dived 19%) ... interesting how this is being goreng-ed.

There are many more being discussed in the group ...

What is not hot?



DRB : Today we see 2.13 ... well, market is not favouring these ... with target price given so high, but the recent bad-news about Audi pulling it down? i do like DRB at current level. See if RM2.13 could hold?


FGV : Broken Rm3.95 yesterday, we have last line drawn RM3.82 ... remember the one day event when it went all the way to Rm3.82 in very short-period? CPO dropping a lot ... avoiding plantation-counters.



UEMS : Big-cap property counters not in play ... need to go for micro-cap. Or those counters speaking of intention of moving into property ... re-valuing their lands, that kinda of stories attracting more attention. UEMS? Well ... 1.98 is coming?

As KLCI up 7points now ... many are HOT. Short-terms trading. Avoid those not.

Penang trip : It is confirmed. I m driving up this Saturday morning!! Excited to see many there.

TEH



Saturday, August 16, 2014

Penang Trip's talk

Morning ... so, travelling to Penang next weekend is confirmed. I have to postpone/cancel some of my tuition classes for that.


I will focus in talking about BREAKOUT as it is the current trend. If one could catch a breakout, that will be great and easily cover the small fees I am charging.



LBAlum : I discussed this during e-meeting on Monday(11th) and posted it to the stock-watch group on Wed(13th) morning as it started to move ... some just grabbed at 74-76cents, but I would rather wait for breakout.


LBAlum : Catching her at 80cents or below is not easy ... it was at 78cents when many in our group alerting it. I was checking on the volumes ... and it shot up very fast to 80cents, I just grabbed the market price. As some sold around 85, I grabbed more at 82-83, actually. I was waiting for closing, and sold half at 87cents. Still keep half ... next week above 90cents? If it is not a good candle-forming on Monday, I will out. Yes, short-term trading carries high RISK. So, do mange that and the emotion ... it should be ok.

So, I will be talking about "breakout" ... and some of the breakout-play I have taken recently ... example, Inari, PMetal .. to the recent Silkhld, Seacera...terday's LBAlum. SMRT still failing to breakout to new high tho I have traded her during 74cents breakout. Now ... we are checking 92cents breakout. Wait.

I need to book a place in Penang, and I will need to know how many is coming by Wednesday. So, those wish to join my Penang's talk ... contact me at cpteh@yahoo.com

Many more breakouts in the making. Do not miss them.

have a nice weekend.

TEH


Friday, August 15, 2014

Hot Stock : SMRT




SMRT moving higher ... breakout of 0.915 today, might be due to the announcement yesterday. Few days ago, some asked if could buy in as they are not in the 'boat' yet. I said ... buy 90 cents should be OK but, need to wait for breakout. Today ... about 9.30am, it broken to new high, now at 93-94 level.

Well, many still holding at 80cents level ... some still hold from our initial 70cents entry level. I have traded her many times and quite glad with this counter. But, never fall in love in any counters. Never.

Emerging Gem with New Growth Engine – Tertiary Education by ZJ

-We recently met up with SMRT Holdings Bhd (SMRT)’s Chairman and Chief Executive Officer,
Dato’ Dr Palaniappan A/L Ramanathan Chettiar, together with his management team for an
update and went away feeling positive about the Group’s prospect, driven by its education
business.

-New growth driver - CUCMS. To recap, SMRT has, up to January 2014, primarily been a
provider of integrated human resource (HR) development software solutions that also offer
complementary HR-related services such as consulting, outsourcing, learning and talent search.
Then, in June 2013, the Group announced its proposed acquisition of 70%-stake in In-Fusion
Education Sdn Bhd (IESB) for RM27.4 mln. IESB owns and operates the Cyberjaya University
College of Medical Sciences (CUCMS) in Cyberjaya, Selangor. With the completion of the
acquisition in January 2014, SMRT has effectively diversified into the provision of tertiary
education in medical sciences.

-Briefly on CUCMS. CUCMS was set up in October 2005 under the Private Higher Educational
Institutions Act, 1996. As the name indicates, the university college specializes in the provision
of courses related to medical sciences. The main campus of CUCMS is located in Cyberjaya,
Selangor, and spans across 5.5 acres of land with a total built up of 200,000 sf. It has a
capacity to accommodate 3,500 students at any point in time. And given the nature of the
courses where a sizable portion of students are off-campus doing clinical training during certain
stage of their programs, we understand that CUCMS could technically enroll up to 6,000
students using its existing facilities without incurring further investment, by managing the course
time-tables. At the moment, the university college has approximately 2,400 students.

In terms of ranking, CUCMS is rated Tier 5 on Setara rating while its medical school achieved a
Tier 4 rating from the Malaysian Qualifications Agency (MQA) (note: there are 6 tiers with Tier 1
as weak and Tier 6 as outstanding)

Transfer to Main Market – Greater Appeal to Institutional Investors

The board of SMRT, through its appointed investment banker, has on 30 June 2014 announced 
the proposed transfer of the listing of its entire issued and paid up share capital together with 
the outstanding warrants from the ACE Market to the Main Market of Bursa Malaysia. 

In the announcement, SMRT has detailed out the requirements for the proposed transfer, all of 
which it has fully complied. The criteria involved include:- 

o achieving a minimum cumulative profit track record of RM20 mln over the last 3 to 5 
years with at least RM6 mln in the most recent financial year; 

o healthy financial position with sufficient working capital for the next 12 months, positive 
operating cash flow and absence of cumulated losses in the most recent audited 
balance sheet; and 

o having a minimum public shareholding spread of at least 25%. 

Good timing. We opine that the proposed transfer is at an opportune time, where the Group’s 
earnings are expected to grow substantially. The transfer to Main Market would enable SMRT 
to attract the attention of institutional shareholders, who are mostly not keen or not allowed to 
invest in the ACE Market. From our checking on Bursa Malaysia website and SMRT’s 2013 
annual report, we noted that there are no institutional shareholders at this juncture. Upon the 
successful transfer to Main Market, we believe the Group may draw interest from institutional 
shareholders with its growth story as an education player. SMRT endeavors to complete the 
transfer exercise by 4th quarter of 2014. 

Private placement shares @RM0.64/share. SMRT also announced on 1 July 2014 that the 
Board has fixed the issue price of its private placement shares at RM0.64/share. The issue 
price represents a discount of 9.4% over the 5-day volume weighted average market price of 
SMRT shares up to 30 June 2014. To recap, the Group had in May 2014 announced to 
undertake a private placement exercise. Based on the 19.5 mln private placement shares to be 
issued, the Group is expected to raise some RM12.5 mln in proceeds, which it would use for 
working capital and bank borrowing repayment purposes (after defraying the expenses 
associated with the exercise). We anticipate to see the emergence of some institutional 
shareholders through this placement exercise. 

Recommendation 

We recommend a long term BUY call on SMRT and peg our fair value to RM1.01. We like the stock for its growth potential in the tertiary education sector led by its hands-on management. 

We noted the share price of the stock has run up substantially in 2014 from circa 20 sen to the current 
level. We attribute the excitement to various factors, including the expected significant jump in 
SMRT’s earnings following the completion of the acquisition exercise in January 2014 and business 
turnaround in CUCMS; as well as investor realization of the growth prospect of the enlarged Group 
going forward. 

We expect the profile of SMRT to improve further with the impending transfer to Main 
Market. Nevertheless, we do advocate investors to be cognizant of possible correction or 
consolidation in share price that may ensue following the recent exponential rise. We recommend 
investors to accumulate the stock gradually and prudently to reap the long term prospects of SMRT. 

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Ok, read all we want ... now, what is our action? Buy? Or if u r in position, lower price ... add more? Or ... just watch it moving higher to RM1(selling point?) and just busy talking about it?

Note : I have just added my position this morning. Trade at your own risk and do ask those know-how.

TEH

Thursday, August 14, 2014

Breakout Play

There are many-many counters breaking into new 52-week high or even historical high. We are in the bull run if you could not feel it yet?


VS : This is VS today. In the beginning of JULY, we discussed it at our tratles meeting, it was trading at 1.60 plus. A bull running market ... push it RM1.80 ... then RM1.90 ... then above RM2. It hit RM2.11 high recently, and I sold at RM2.10 yesterday. Well, good trade ... but it shot above RM2.11 today. It opened at RM2.13 ... which I just grabbed, came down and all my queues from RM2.10 to RM2.12 done too. I sold half at RM2.21 and RM2.22. Some members still holding at different levels, as I traded a few times now. Well, still have half to sell ... RM2.30 plus tmr?

Note : Can still hold if u r not trading. How high will it go?


PJDev : Breakout yesterday(again and again) ... I grabbed 1.94 closing price. Today it went above RM2, hit 2.06, closed 2.04. I am going to move into PJDev-wc once it breaks RM1.08(soon??).

Well, PJDev is in news(with OSKProp) ... and it is no secret. But, we need to take actions to profit from that piece of news?

Note : I am still holding ... many in my trading group still holding at around 1.80 levels.



Mitra : I sold Mitra yesterday(shooting star) and today(0.995 opening price) as I bought on Tuesday due to breakout. At times, breakout could fail ... so, we must take action to take profits(or cut-loss). Good profit for one-two days trade. Support seen at 93cents now, closed 96cents.



Willow : Written in the forbes for one of the best stocks around, ok ... put in the trading list. Breakout on Tuesday ... I grabbed 88cents but have to sell her the next day(yesterday) as it hit 95cents ... coming down, sold half at 93cents ... then sold all 91.5 cents. Today it confirmed my short-term bearish view ... and will watch to buyback at 88 ... or perhaps lower?


Next breakout in the making?

MPHB : Buying into her ... nice breakout 2.62 in the making, previous high at 2.65. Well, suddenly media said she is under-valued. These day ... as bull-market is running, media and many like to use the term 'under-valued'. Hmm ... I wonder why they never mentioned these under-valued companies in 2008-2009? Why not? Anyway, since they said MPHB is under-valued ... ok-la, use the chart for entry.

Stock-watch : It is my closed trading group.

Many more trades done ... good trading months as many new high and breakout-play. Breakout-play is a good strategy to profit from current rally, especially penny and/or ACE counters.

So, I am going to Penang to give a short 3-hour workshop to newbies/novices on how to trade breakout.

Date : 23rd Aug (next Sat)

Time : 3pm to 6pm

Venue : to be confirmed.

For more detailed ... contact : cpteh@yahoo.com or

join me at https://www.facebook.com/groups/cpteh/

Sell losers, add into winners.

TEH

Making Mistakes in buying




I was lazying after 11am ... busy will be 8.45am to 9.30am ... then, relax ... read some news-biz. Now is almost 12.30pm, market is closing for lunch ... and at times, I will just go off for lunch.

I will want to write about many-many mistakes, blunders, errors, trading-sins, bad decisions ... and such. I have it all, I think. Hmm ... how is one to be experienced if we never do mistakes or afraid of being wrong? How is one to improve if we so much afraid of losing money? What is trading without losing? And the excitement of having good trades?

That is trading. Being a trader, one needs to accept the up-down(not good for weak heart? haha). Keep the emotion in control ... it is an easier said than done issue for newbies.

 Mistakes/Blunders : In buying

1. Buying after reading a broker report recommending BUY call with high target price and believing it in.

2. Buying after heard tips given by a 'friend' or someone else, as if it could spread to our level... many would have accumulated ... to distribute to late-comers?

3. Buying without an exiting plan ... don't know where to cut-loss, where to take profit. After sell, afraid it will shoot higher, then regret.

4. Buying it high in the morning when market bullish ... as it retraces lower later ...

5. Buying for the shake of buying ... fingers itchy ma, must buy something, then only feel that we are IN.

6. Buying due to good news such as good quarter-report etc etc

7. Buying when in mood to buy (LOL) such as it is your birthday, you feel good-luck, so you buy.

8. Buying when you have 'instinct' that a stock will shoot higher ... well, if u r an experienced person, it is ok but not for newbies.

9. Buying too many counters ... until no money in hands to buy anymore. Over-diversified as everything in market also like.

10. Buying because the stock price is low(cheap la)

Buying ... or bye-ing?

Time for lunch ... and classes.

TEH

Wednesday, August 13, 2014

Remisiers and Dealers

Morning ...


I have a lunch appointment with an ex-dealer yesterday. It is great to chat with these people who are inside the 'trading' industry. They could give me many insight of the operations and such. Well, I gathered many things from a short 1-hour chat.

There is a difference between 'dealers' and 'remisiers'.

Dealers : Normally, young graduates ... after completing their module 6&7 with SIDC, they will becoming IB's dealers. They are employed, with fix salary and commissions. Bonus and such depends on their performance. If they could get more clients to open trading account under them, and each time the clients trade, the IBank will earn some trading fees. The dealer's performance depending on the amount of fees changed from the clients trades.

Remisiers : Similar manner, just that they are partners of IBanks, which they have a deal of profit sharing (normally 50-50) of the trading fees charged. As remisier, it is their 'rice bowl' Their clients need to trade in order for them to be paid. They are not employed by the bank. Many dealers will eventually like to be remisiers, as one is moving from E to S quadrant. Self-employed ... if you have a large client-base, you could earn well.

So ... I will never be a dealer ... I have no intention to be remisier. I dislike the 'looking for client'(sales and marketing) and I dislike filling in forms, photostating, updating etc etc(paperwork). But, I do think I will sit for the module 6&7 ... for knowledge purposes.

I still feel remisiers should do their homework before they ask their clients to buy-sell. Some remisiers want to earn that commission will simply ask their clients to buy ... on tips. There are some more responsible remisiers. Most clients wish to be given 'tips' to trade.

Do not blame your dealers or remisiers if you done a bad trade. No one could tell when markets will turn ... and we should trade at our own risk.

I still remember my first dealer from OSK(KK). He is a young guy ... and as I was a total newbie, I see him as 'sifu' ... a person who should know in-out of stock-markets. Hmm ... that view has changed totally(haha). Yeah ... I was naive. The first broker report I read was RanHill. With target price RM4.20(I think) and it was trading at RM2.30, it is a buy, right? That is how we newbies buying stocks!! But, I consulted my dealer ... and he gave me a thumping YES. It is a must buy ... well, JAN 2008 ... what are we expecting when KLCI at new high?

Note : Ranhill was taken private at 90cents some time ago. Then, they were seeking to be re-listed but rejected by Bursa(long story, cut short). Well, RTO on Symphony .. Symphony gapped up to 25cents from 15cents(many of us bought at this level).

Most dealers are young and not so experienced in stock-markets. Newbies should not take their words as 'everything' ... and should do own homework. Ask those experienced ones. Many will help.

There are many experienced remisiers ... many responsible ones. We can always opt to change our remisiers or trading account(s) if the current one is not giving good service. I do know few good remisiers ... but I wish to maintain 'neutral' rather than promoting any remisiers. I am glad with my remisiers(I have two).

I do not mind meeting up with remisiers during my off-peak period(Nov-Dec). Do keep in touch, dont worry ... I am not remisier's competitor ... in fact, we could be 'partners' and see how we could help each other by helping your clients?

Good trading day ahead.

TEH