Mr Investor

The markets have not been exciting lately, but I have an interesting stock to share. For investors who are looking for a stock to trade, I recommend Econpile Holdings Bhd (5253).  Its share price seems to be oversold and is  ready for a bullish rebound .    Based on its technical price chart, its share price started to dip at the beginning of 2018. The 30-day exponential moving average (EMA) has been its overhead resistance since early February 2018 until now. In this article, I will explore the likelihood of it breaking above its 30-day EMA overhead resistance. The 30-day exponential moving average overhead resistance could mean that this stock is in a downtrend as well.  Pakatan Harapan, Malaysia's newly elected political party's victory in the General Elections in May 2018 had an adverse effect on its share price. Upon the opening bell of the Malaysian market on May 14, 2018, its share price gaped down 8 cents, and closed at RM .788, a decline of 22.7 cents

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 Parliamen

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 Char

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