Mr Investor

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 ye

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. Fo

Dufu Technology Corp Bhd (7233) (Dufu) is a listed company on the FBMKLCI. It was established about 30 years ago on October 1987. The 3 main principal activities of this company according to its website, are: 1. Development and manufacture of precision machining components for the Hard Disk Drive industry, safety and sensor industry, telecommunications industry, and consumer electronics industry 2. Design and manufacture of precision steel moulds and stamping of parts and components 3. Provision of support services If you are like me, a person who wants to know the split of revenue and profits in terms of business segments, you will be disappointed. This company does not disclose this information in such detail. It only discloses its revenue split in terms of geographical location as shown below in Chart 1: Chart 1: Revenue of Dufu based on geographical location The Hard Disk Drive Industry and its Competitors It is no secret that the global shipments for Hard Disk D

It has been some time since I last blogged about the markets. So far, I have been accurate about the markets. Do check out my previous review of the FBMKLCI .  The index staged a breakout on April 19, 2018, to close on a high of 1,895.18; its highest since July 2014 when it closed around 1,890 points. Note that it has been about 4 years since it last closed above 1,890 points.  What are the probable possibilities? In my opinion, there are three possibilities:  1. The market stages a false breakout and then moves lower to 1,810 points. 2. This is a genuine breakout, prices hold above 1,880 points, and continues moving higher. 3. Prices retrace below 1,880 to around 1,860 or 1,835 points; prices then consolidate for some time.  It should be noted that market momentum was bullish for the past 3 weeks from 8 to April 19  as prices rallied continuously.  Chart 1: FBMKLCI Chart as of April 20, 2018 Bullish momentum to carry on? I cannot deny what I see as the chart tell

Sasbadi is one of the companies that I came across numerous times back when I was a student. I was a loyal supporter of Sasbadi reference books as I found their books well organized, contained relevant information, and had a good range of exercise questions. If you were born after the 80’s I am sure you would have heard of Sasbadi. In fact, my decent examination results were partially due to purchasing their good quality reference books.  Today I’d like to take a look at Sasbadi Holdings and see whether it has any investment merit. Below is a chart of Sasbadi’s share price: Chart 1: Sasbadi Historical Share Price Based on the chart above, prices have retraced near to its initial IPO price of about 45 cents. Despite appreciating to a high of RM1.06, prices started to turned south in 2017.  Chart 2: A detailed look at Sasbadi's share price  Noticed the long-term bearish Head-And-Shoulders formation which formed in November 2016 to August 2017. Thi

It has been awhile since I last reviewed the FBMKLCI. My last review was on 26/11/2017. During that time I was bearish on the FBMKLCI and highlighted that the immediate support was around 1,700 points. Do check out my review HERE . I came close though, the FBMKLCI reached 1,708 points in December 5, 2017. Ever since then, the FBMKLCI has rallied to a high of 1,880 points as of February 2, 2018. Overall, the FBMKLCI is in an uptrend, potentially taking a breather at 1,880 points. Chart 1: FBMKLCI From the price action, I noticed that currently FBMKLCI is oversold and has met immediate resistance at 1,880. The Relative Strength Index (RSI) and the Stochastic Indicator also shows that the index is oversold. Despite the FBMKLCI being oversold, I cannot for sure say that prices will immediately turn south. Probably consolidating before continuing in its uptrend. Based on price action, I think prices may retrace due to the oversold conditions. The cautious sentiment was echoed around the Asi

Today I will be reviewing Zhulian Corporation. This company is a multi-level-marketing (MLM) company dealing with a host of beverages, health products, jewellery, home products and appliances, personal care products, beauty apparels and skin care products. This review is not a detailed review, rather an analysis of its quarterly results and its technical price action. Zhulian’s past 4 quarters cumulative earnings per share (EPS) was 11.50 cents and it is trading at a price-earnings ratio of approximately 14.4 times as of February 1, 2018. Chart 1: Price chart of Zhulian Based on its price chart, price rallied from a low of RM1.20 on January 3, 2017, to its highest point of RM2.15 on January 24, 2018, an appreciation of 180%. However, prices dipped on January 25, 2018, after the announcement of its latest Q4 2017 financial results. I guess expectations were running high on whether Zhulian could sustain the growth in its share price. At this point, prices have retraced about 50%, from