Skip to main content

Posts

Showing posts from May, 2018

A Walk in the Park with Cypark Resources Berhad (5184)

Lately, I have been searching for a company which has good profit margins, a business model which is non-conventional (i.e., not manufacturing, banking, plantation, and trading in nature), and resilient to external market shocks. I hope I have found the right company!


This week I will be looking at Cypark Resources Berhad (5184). Cypark is a company that is involved with the provision of environmental solutions. It has 4 main business segments which are:
1. Environmental engineering: Provision of nature conservation and environmental improvement services.
2. Landscaping and infrastructure: Provision of landscape services, project management services, and infrastructure development.
3. Maintenance: Provision of specialist maintenance works on leachate treatment plants, landscape services for parks, and maintenance of public amenities.
4. Green technology & renewable energy: Solar panel, biogas, biomass, waste-to-energy, and other renewable energy projects.
The business segment with…

Technical Analysis Review: FBMKLCI Review (19/5/2018)

It has been a week since Malaysia's 14th General Election. We have witnessed the fall of a government that has ruled Malaysia for about 61 years. Lets us see how has the market has fared.

From my previous review on April 21, 2018, I expected a bullish market leading to the general election. But I noted that if the market were to break below 1,880 points, this would indicate an immediate change in market sentiment from bullish to bearish, and this would lead to a decline to around 1,810 points. Do check out my previous review in this LINK. The FBMKLCI broke below 1,880 points on April 24, 2018, and proceeded to tread lower in the following weeks.
Looking at the FBMKLCI in Chart 1 below, we can see that the bourse made a "false breakout" from a horizontal trend channel on April 20, 2018. The bourse was closed on May 9 for the general elections, and on May 10 and 11 after Pakatan Harapan, the new ruling coalition, gained a simple majority in the Parliament. The bourse…

Heveaboard Bhd (5095) Update (11 May 2018)

This week I will be reviewing Heveaboard. This is a follow-up review to my previous Heveaboard posts. 

As you are aware, many stocks on Bursa Malaysia were beaten down to its lows recently. Now, after a historic win in the 14th Malaysian General Elections by Pakatan Harapan (Alliance of Hope), will the stock market bounce back? 

The General Election held on May 9,2018, was by and large peaceful and went on without a hitch.  Malaysians are hoping for a clean, fair, and just government. This positive perception will be echoed in the stock market and will bring back market confidence.

We now turn our focus to the annual report of Hevea  that was recently published on April 30, 2018. I thought it would be a good time to perform a follow-up review of this stock. 

Technically, it is showing signs that its share price has bottomed out and has formed a base. The share price has retraced from a high of RM1.72 in October 2017 to RM0.88 in May 8, 2018, a retracement of about 50% !!  See Chart 1: Hev…

Oil prices are going up. And here are the reasons why.

Rising oil price is positive for oil and gas counters. Based on the chart of West Texas International (WTI), the worst seems to be over for oil. But will this bullish environment last? 

Based on the price chart of West Texas International below, it seems that prices have convincingly breached the $60 level.

Chart 1: West Texas International Chart as of May 4, 2018

Demand 
According to OPEC’s April 2018 estimates, daily world oil demand has been on the increasing trend; growing from 97.07 million barrels per day (mb/d) in 2017 to 98.7 mb/d in 2018. Besides, oil demand is expected to exceed the historical threshold of 100 mb/d in the fourth quarter of 2018.

Based on the above OPEC statistics, the increase in the demand for oil in 2018 of 1.63 mb/d is due to increase in demand from China of 0.42 mb/d, US of 0.23 mb/d, India of 0.20 mb/d, and Africa of 0.14 mb/d, refer to Table 1 below on Oil Demand in 2018. The demand for oil in other regions was relatively unchanged for the same year. Th…

Is it time to buy Inari Amertron Bhd (0166)?

Inari has recently corrected from a high of RM2.50 and is currently trading at RM1.90. A 60 cents or a 24% discount from its previous high, is it a good time to enter now?

For a short-term trader, taking a trade near immediate support at RM1.70 looks like a promising trade. Considering it has been on a bullish uptrend since forever, this recent price retracement looks like a God sent for those seeking to buy at lower prices. But is this a bear trap for opportunistic traders?

Chart 1: Inari Amerton Bhd Chart


Prices were certainly reacting to the recent negative news coming from US and China. Not surprising, was the recent sell down in the US tech stocks segment. News about a trade war between China and US and slowing iPhone sales have peppered the news headlines. Investors and traders should exercise some discretion as these are just market "noise."

Is the current downtrend of any concern? Yes, prices have recently traded below its 200-day Exponential Moving Average. For …