Thursday, May 29, 2008

Stock Direction: AIRASIA - At Bottom?

It come across again in my mind that Airasia has a great downtrend performance. BUT does the downtrend going to end or has it at BOTTOM? Well what I can said now this level is consider save to buy in some (BUT not aggresively). So if buy now you wont loss much if you put a stop-loss at 0.90.

In others case I would consider it a upside bias if the stock can break 1.10 level and hold up there between 1.10 - 1.20. This would enable AIRASIA to have a trend reversal which I target at 1.70. Volume will help us to determine if the upside is going to start. So do keep an eye on the volume and the reversal wedge.

This is the comment from the HLG Research. Well, it code lower than my target 0.90. So as long as between 0.90 - 0.95, Buying is a better price. I'm eagerly waiting for the trend reversal.

Happy Trading!

Tuesday, May 27, 2008

Stock Direction: CHINWEL, EDEN

CHINWEL Hey. Spotted this counter. Can take a look.
Seem like the momentum is building up.

Another counter:
EDEN worth to watch and keep on your radar.

Happy Trading!

Thursday, May 22, 2008

Ramunia Rises On Project Termination

KUALA LUMPUR: Ramunia Holdings Bhd rose 13% or 17 sen to RM1.47 yesterday after its RM2.2 billion contract secured from an Indian concern was terminated due to its inability to provide the required performance bank guarantee and insurance certificate.

The stock initially fell to its intra-day low of RM1.22 in the morning session but shortly recovered and rose to its intra-day high of RM1.47 at the close, with over 16 million shares done.

Maintaining a trading buy on Ramunia at RM1.30 yesterday with an unchanged scenario-based target price of RM1.70, Aseambankers Research said it was net positive on the turn of events, which would accelerate MISC Bhd’s reverse takeover of Ramunia.

“Any share price weakness from this perceived negative newsflow is an opportunity to accumulate as investors will be essentially buying into MMHE — a direct proxy to Petronas’ Malaysian O&G play,” it said in a research note yesterday.

Aseambankers Research said Ramunia had conceded defeat in taking on the US$685m (RM2.2 billion) ONGC B-193 project in India, as it was unable to provide a performance bank guarantee and insurance certificate by the May 15 deadline.

Ramunia had earlier sought for an extension of time until May 31 to comply with the project’s additional requirements. It would have to forfeit the US$500,000 (RM1.6 million) bid security due to the contract cancellation.

“We are informed that it will not incur additional penalty charges from this project withdrawal as both ONGC and Ramunia have mutually agreed that the termination has no additional binding clauses. As such, Ramunia will recognise the RM1.6m loss in 3QFY08,” Aseambankers Research said.

The research house said the ONGC project was a major obstacle during the due diligence exercise carried out earlier, as it was perceived to be loss-making.

“This is consistent with our view all along that the ONGC turnkey project would not have been profitable, as it would have at best, yielded only razor-thin margins if executed well,” Aseambankers Research said.

It said the termination would drastically cut Ramunia’s outstanding order book by 77% to RM486 million.

“However, we are optimistic that the ONGC loss will be compensated with new orders from Petronas local offshore fabrication projects from FY09 onwards, which should potentially generate higher margins,” it said.

Aseambankers Research said it was cutting Ramunia’s FY08 core net profit by 31% to reflect the loss on ONGC’s project but retained FY09-10 forecasts.

NEWS OR TECHNICAL ANALYSIS?

Which one you will follow? Seem like analyst also agree with my target. haa..haa.. 1.70 will be a strong resistance. I will throw when it hit this level. Unless.... something happen. Cheers and happy riding with RAMUNIA.
- BullTrader

ACA’s Charge NasionCom Founder

SC lauds ACA’s charges against NasionCom founder

KUALA LUMPUR: The Securities Commission (SC) said it welcomes the charges brought by the Anti-Corruption Agency (ACA) against Chee Kok Wing on eight counts of receiving bribes purportedly to incentivise SC staff to ensure the listing of GP Ocean Bhd and stop the SC’s investigations into the company.

“This development serves as a strong reminder to participants in the capital market that they should deal directly with the SC and not through individuals claiming to act for or on behalf of the SC,” said SC chairman Datuk Zarinah Anwar.

Media reports yesterday mentioned that Chee, founder of telecommunications service provider NasionCom, was charged with receiving bribes totalling some RM3.85 million. The bribes were taken by Chee purportedly to be an inducement for SC’s director for issues and investment Datuk Kris Azman Abdullah to help in the listing of GP Ocean Bhd on Bursa Malaysia and to stop a probe by the SC on GP Ocean.

On April 18, 2007, the SC had charged GP Ocean officials for submitting misleading information to the SC in connection with the proposed listing of their company, GP Ocean. The case is pending. GP Ocean hogged the limelight in June 2006 when its listing plan on the Main Board was aborted after the SC investigated possible breaches of securities laws.

The SC had also charged Chee on May 28 2007 for his involvement in the submission of false information to the SC. This was in relation to NasionCom Holdings Bhd’s financial statements for the year ended Dec 31, 2005 and NasionCom’s prospectus for listing on the Mesdaq Market. Chee was NasionCom’s major shareholder and chairman from the time of its listing on Mesdaq until last year when he watered down his stake and resigned from the board.

The SC stated in its press release that it has in place transparent processes and procedures in discharging its regulatory functions, and these are available on the SC website. The SC said it had also instituted pre-submission consultations since early 2006 for all applicants and their advisers. This has enabled applicants to better understand how the SC views submissions including reasons why some submissions are rejected.

“This is complemented by post-decision meetings with applicants to explain the outcome of their submissions. Reasons for rejection are also published on the SC’s website as future guidance for applicants and their advisers,” the SC said.

The regulator added it would continue to work closely with the ACA in ensuring that any abuse of this nature will be swiftly dealt with to protect the integrity of the capital market.

In recent years, the SC has rejected a record number of submissions pertaining to company listings and other corporate proposals that did not meet the regulator’s strict standards. The SC has also taken a much shorter time to process IPO applications — about three months on average versus a time period of nine to 12 months previously.

JUST A REMINDER NOT TO READ NEWS TOO MUCH!
This remind me in the year 2004-2005 where I have less exposure to Technical Analysis and I use to be reading news and trust all the words that this GUY said. I did place a lot of hope on the company projects like broadband/wimax/etc. Ha.. ha.. ha... Luckily I did manage to sold off my holding before it collapse in 2006.
- BullTrader