1) lowest at 52 week. rebounce 30%
2) Big sharks have been collection since 1 Month ago
3) Singapore might sell electricity to malaysia again
4) Java project might be on!
Tuesday, June 14, 2011
Monday, June 6, 2011
Buy xxxx-OR to gain stable profit
Stock counter that usually offer OR with attach warrant will usually comes with good profit.
The reason is simple.. because the OR price is evaluated at ZERO warrant premium. Take the very recent example starting from PJI to latest MBSB.
1) PJI-OR selling at 6 cents to 7 cents. when PJI share is about 13 cents. Every 2 OR Subscribe will give you 3 warrants, I guess this is what we are looking for. The reason for the OR to be price at 6 cents is actually way too cheap. But why? because the warrants is having 10 cents exercise price. So everyone would think that the warrant FAIR price should be at 3 cents upon selling.
So you get 7 cents OR + 11 cents conversion = 18 cents = 13 cents PJI + 1.5 x warrants (4.5 to 5 cents). So basically that's how OR being perceive.
But 3 cents for a warrant is just too cheap. The reason is because warrant always get goreng up and it will sure have a at least 20 to 30 % premium.
So when it comes to selling day. PJI share is at 16.5 cents, and warrants worth 10 cents each.
if you hold longer PJI share can be sold at 18.5 and warrant at 15 cents.
total investment is 2x7 cents + 2 x 11 cents = 14+ 22=36 cents.
total selling = 2x 18.5 + 3 x 15 = 37 +30=67 cents
ROI = 30/36 = 83%!!
2) MBSB - MBSB-OR if you buy at 1.100 or 1.00 (cheapest) total investment you need RM 1.00 + RM 1.00 conversion. on warrant release day. you get to have 1 mother which you can sell at 1.47 + 0.70 (warrant) = 2.17 . = 8 % gain immediately. But wait, if you hold on longer. I believe MBSB share would eventually reach 1.7 and warrant would eventually reach 0.85, that's the time your profit may reach 20% gain.
June & After May 2011 Analysis
The market being bearish most of the time at May. But in June I am expecting some bullish market soon after FTSE upgrade and also major oversell in May. But due to market correction and holiday in the beginning of June, I guess it should take somemore time for the bull to arrive.
Let's take a look at those counter I have recommended.
1) CENSOF - Buy at 1.32 and got 1 bonus share, so logically you got 1 to 2 split. current share price is RM 0.75 x2 = 1.50 so 18 /132 = 13 % profit i think not bad for 1 month investment. especially now CENSOF just got LOA for 22 million project from MOF.
2) KAWAN - though not much has happen and it is still with low volume, but if you grab it previously at 1.23 you should be able to sell it at 1.40 before the dividen entitlement. another 17 cents profit for 1.23 so 17/123 = 13% profit i should say.
3) CAREPLS - nothing much has happen for this counter. still holding it until the warrant entitlement. I guess nothing much to lose when the price is stable. waiting for better news to make this counter shoot up!
4) ASTRAL SUPREME - buy price should be at 0.245, and if you look at the historical chart, it is on weird pattern of up trend. either you can sell it at 0.28 for some profit or you can still wait for OR entitlement.
5) KFM - nothing much has happen since the buy in, will wait for entitlement date shoot up!
6) SEACERA - 64 cents are no more available after the announcement. so everything goes up to 70 cents+ and highest at 77 cents. and now is hovering at 70 cents. to sell at 77 cents you make you 13 cent profit for 64 cents investment! 13/64= 20% gain!. it also has a good quarter result. if you plan to hold this long is still a good counter. wait till the next quarter result and also entitlement date then it should have another shoot up!
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