Stock Market Books

Tuesday, December 18, 2012

Trading opportunities

To be successful in trading the stock market, one has to monitor the market constantly and keep looking for trading opportunities.

There are eight stocks jumped into my screen which matched my Meta Stock program screening criteria. Meta Stock is an award winning investment software in America for many years and earned good reputation.

 The stocks selected are 1. Zelan, 2. HO WAH GENTING BHD(HWGB), 3. Dutaland, 4.Green Packet, 5.Tiger, 6. IJMLand, 7. Borneo Oil, 8.Coastal contract.

Zalan closed at RM 0.25 last Friday. The low on that day was 0.245. It has come down from the high of RM 0.55 on Feb 14, 2012.  On Monday, it closed at RM 0.245.

RM 0.245 is close to the low of RM 0.235 achieved on Sep 26, 2011.
If history were to repeat itself, Zelan will eventually move back to challenge the high of RM 0.55 achieved on Feb 14, 2012.

Before, it can move that far, it has to overcome the resistance at RM 0.295, RM 0.355, RM 0.425, and then RM 0.55.

14 day RSI recorded at 25.27 last Friday which is a oversold position.
Zelan’s wholly-owned unit Zelan CONSTRUCTION Sdn Bhd has been awarded a RM 179.32 million contract for the construction of whart structures at Pelabuhan Tanjung Pelepas in Johor by MMC CORPORATION BHD’s unit.

Zelan’s price was slowly slipping when it announced that its Meena Plaza project in Abu Dhabi ran into trouble after project owner Meena Holdings LLC’s decided to end the contract.

Its unit Zelan Holdings (M) Sdn Bhd’s Abu Dhabi branch received a letter dated Nov 21, 2012 from Meena Holdings LLC which gave a 14-day notice to terminate the contract and to liquidate the performance bond.

This construction company made 14.65 million ringgit for FY 2012 compared to a net loss of RM 257.428 million for FY 2011.
HO WAH GENTING BHD(HWGB) closed at 0.31 last Friday.  On Monday, it was closed at 0.295. The recent low for this stock is 0.29 on Dec 7, 2012.

Over the last three months or so, it has rebounded back to the high of 0.375 on Sept 24, 2012 and 0.385 on Nov 12, 2012 respectively after it touched the low of 0.27 on Sept 11, 2012 and 0.30 of Oct 15, 2012.
Since one of the basic principles of technical analysis said that history will repeat itself, therefore, it is possible that the sock might rebound to 0.375or 0.385 any moment from now.

RSI 14 recorded at 53.04 on last Friday which is heading for a overbought position of 70.  The low of RSI 14 was 41.50 on Dec 10, 2012 and the share price on that day was 0.295.

HWGB made a net loss of RM 6.997 million for FY 2011 compared to a net gain of RM 9.851 million for FY 2010.

To recap, there were some buying interest on Sep 26, 2012 when news that the group has secured RM800 million worth of light-emitting diode(LED) contracts from two Japan-based customers.

Dutaland closed at RM 0.53 last Friday. On Monday, this stock closed at 0.525.  The recent low for this stock is 0.505 on Dec 12, 2012.tiger

Over the last five months, this stock has rebounded back to the high of 0.57 on Aug 13, 2012 and 0.625 on Oct 31, 2012 respectively after it hit the low of 0.45 on July 18, 2012 and 0.475 on Sep 11, 2012.

This is trading on a medium term.  On a shorter term, the recent fluctuation was from 0.505 of Nov 16, 2012 to 0.55 of Nov 22.

There is a possibility that this stock might challenge the high of 0.62  if it exceeded 0.55.

RSI 14 recorded at 54.68 on last Friday. The low of RSI 14 was 40.98 and on that day the share price was 0.505.

Traders love the fluctuation of this stock.

This plantation counter recorded a net loss of RM 4.978 million for FY 2011 compared to a profit of RM 689,000 for FY 2010.

Green packet closed at 0.45 last Friday. In the Japanese candlestick chart, a doji was seen last Friday. A doji is a cross sign where the stock is open and close at the same price reflecting the tussle between the buyers and the sellers and normally the buyers will be on the upper hand and the stock will move up in a day or two.

A similar doji was seen on Nov 27, 2012. On that day, the price was closed on 0.465. Later, it moved to 0.515 in seven market days. On Monday, it closed at RM 0.445.

This stock slipped to a low of RM 0.405 on Oct 11, with RSI 14 recorded at 36.78.  Later it was pushed to the high of 0.68 just within 10 trading days.

RSI 14 hit 34.91 on last Friday which is close to the oversold position of 30.

Technical traders expect a rebound soon from the chart observation.
On Dec 6, 2012, market was focused on this stock following news that it is one of the eight recipients of the 2.6GHz spectrum award from the Malaysian Communication and Multimedia Commission (MCMC).

On Nov 28, it was announced that GREEN PACKET BHD registered a narrower net loss of RM 17.5 million in the third quarter(3Q) ended September 2012, a 28% fall in net loss compared with RM 24.3 million in the corresponding quarter in 2011.

Tiger Synergy closed at 0.325 last Friday which was a doji sign. A doji was also seen on Dec 4 and Dec 6, where the low was recorded at 0.325 and 0.335 respectively.  Later, it flied to the high of 0.435 in two market days.

The chart traders are hoping that history will repeat itself.  This stock hit the low of 0.30 on Nov 22, 2012 and later rebound to 0.42 within six market days.  Risk takers are all eyes on this stock. On Monday, this stock closed at 0.315, the day low was recorded at 0.31.

Tiger Synergy will hold a board meeting later this month to decide whether to call for an EGM to discuss the resolutions for two major shareholders, Hayat Maya Sdn Bhd and Syawaras Sdn Bhd, seeking the removal of the entire board. Hayat Maya and Syawaras collectively own 14.69% of Tiger Synergy.

IJMland closed at 2.03 with a four price doji, depicting a candlestick bar where the open, high, low, and close are all the same.
A similar doji was seen on Oct 8, 2012 with a price of 2.06. Later, it climbed to the price of 2.21 within eight market days.

IJMland is a stock with good fundamental. On Monday, it closed at RM 2.01.

It has made a net profit of RM 193.709 million for FY 2012 compared to a net profit of RM 217.653 million a year earlier.

BORNEO OIL BHD closed at 0.42 last Friday with a bullish dragonfly doji.
A similar doji was seen on Nov 6, 2012 with a closing price of 0.435.  Later, the price of this stock moved to the high of 0.52 within nine market days. Market speculators love this stock dearly because of its periodical movement.

This stock is actively trade today.  At 5:00 pm, this stock recorded at the price of 0.44 and the day low was 0.405.  Chart traders are already gluing their eyes on this stock.

This stock has made a net loss of RM 4.979 million in FY 2012 compared to a net profit of RM 72.393 million a year ago.

Coastal contract closed at 2.00 last Friday with a black candle. On Monday, it closed at RM 2.02 with a white candle.

This stock started its uptrend cycle from Oct 29, 2012 at RM 1.80 with the top of wave one to record at RM 2.03 on Nov 20, 2012.

Wave three started its move on Nov 28, 2012 at RM 1.89 to top the target price of RM 2.12 on Dec 11, 2012.

It is expected that this stock will still continue its uptrend movement to challenge the target price of RM 2.74 recorded on Feb 9, 2012.  It has to surpass the resistance of 2.15(May 4, 2012), 2.36(Mar 9, 2012), and 2.46(Feb 15, 2012) before moving any further.

The second tenet of technical analysis is that prices tend to move in trends. At this moment, the chart still shows an uptrend, with the price rising over time.

 This company recorded a net profit of RM 190.954 million for FY 2011 compared to a net profit of RM 200.787 million a year earlier.
On Sep 21, 2012, it announced that it has secured contracts for the sale of two anchor handling tug supply (AHTS) units and one subsea support vessel (SSV) worth about RM 111 million.

Coastal has RM 743 million worth of vessel orders awaiting delivery up to 2012. 

This article is written on Dec 17, 2012 after the close of the market.

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