supermax trading profit on paper 18.36%

Based on current price of RM6.09, on paper i have a 18.36% profit for my supermax share. it is slightly over 1 month, pretty good margin. i think will exit the share today. Odds of winning (i.e to see more upside) is not as good as i buy in at RM5.06 although the analysts are still very bullish with the stock. To me, it lacks dividend.

what stock next...something i don't know?

for past two weeks i just noticed that a major shareholder of NTPM is buying its stock again. Unlike 1.5 years back, this time tabung haji is not joining the fray. Not sure if this means something is brewing again, but i think can take it as the shareholder is very positive with the company.

although my family portfolio has being having CSCSteel, now its dividend yield is 9.4% and its stock price still below book value of RM2.09. Interesting

from the edge has read that furniture companies are doing great business last year. To me since long long time ago i have thought it is a sunset industry with China and Vietnam catching up too fast and too furious. At least so far one of the Malaysian biggest export industry is still surviving.

supermax is up

just as i was complaining about my wrong position in supermax instead of in haio, the former goes to a high of 5.61 now. that is a 10.87% gain from my price of RM5.06. Hmmm...not bad.

On the other hand, if i would have bought into haio, it would have been a gain of 12.57% excluding the dividend that i can get. As of now, both are equally good it seems i do believe in shorter term supermax has the potential to gain more than Haio in term of stock price. But the more important point should be that i have diversified into both stock and both up would be great to my portfolio

trading...forget about it

my attempt to earn from short term trading over supermax fail miserably. on the contrary, if i would have bought into Haio, i would have earn 10%. another blow to tell me that i should stick fast to my buy hold strategy through high dividend high growth company. Or was it just an exeption this time? Luckily, supermax, at least in near future, won't be a bad stock to own. At least it would serve to complement my existing portfolio. There is one leasson here,diversification works- although i not manage to earn from the period under review.

today i read with amazement that under the new basel 2 capital requirement, public bank tier 1 capital will be reduced to 5.6%. The bank has guided analyst that dividend payout will be slashed to 50-55% from the current 80%. ROE will also gets affected. Is this a good news? In term of short term stock price, at least i couldn't fathom why this would be a good news. Over long term i confident the bank will be able to live through it, but it appears to me there are many other more attractive stocks out there. Well, if pbbank does dip a lot may be i think buy it instead. Let's wait to see if that happens or not

technical rebound expected

yesterday, Bursa Malaysia closed lower at 1264 on 28/1/2010. Based on 30 minute chart, it is hovering at 1261-1258 support. Resistance is at the 50% retracement of 1285, and the 61.8% at 1290. Stochastic indicator is showing a small hook-up, indicating a rebound.

RSI is still weak at 35. Today's range is between 1258 and 1268. Following the breach of the key 1286 support earlier, thesupport is lowered to the 1248 low of 30/11/09, with the immediate resistance at 1290

Reference:
from wiki, stochastics oscillator is a momentum indicator that uses support and resistance levels. It attempts to predict price turning points by comparing the closing price of a security to its price range.
The indicator is usually calculated as:

Dow is up a bit, how about bursa?

Dow up 41 a little bit. So i guess the market is not gonna continue to stay bearish. Yesterday upon buying in supermax, it slip another 2.5%. Let see how it goes. I shouldn't lament on that as nobody can spot the bottom precisely. Who knows bursa will even continue to slip or not today. Stock market has quite a lot of sentimental driven occassion

it is trading time, dude!

after a few days of heavy fall, US start to stop falling as fast. Asian markets still fall. But i decided to take a short term trading position with Supermax 7106. Buy in at RM5.06. It has since dropped RM1 + in 2 weeks. Business is still healthy and given long term wise should be still ok to have it. At current price, PE should be around 11.6 niah. It might still be a falling knife position but one never knows the exact bottom, i think at current the calculated risk is fair to go in.