Tag Archives: consumers

Stock to Watch: CSL [5214]

When China Stationery Limited (CSL) was first listed in January 2012, there was a worry that it’s IPO will not perform well since local interest on china-based companies are generally low. Almost all of the shares of red chips were on a downtrend during the proposed listing of CSL (most are still on a downtrend or remain stagnant at a low level today). Investors are not willing to take risk in these companies mainly due to the unreliability of their financial data, thereby causing the share price to be traded at an abnormally low P/E (price-to-earnings ratio).

China-based companies listed in M'sia (PE)
But the strong 3-days upward movement on the first week of its listing and a subsequent wave that brought the share to its high of RM1.90 causes the general public to reconstruct their perception on this company, as can be seen from the spike in trading activities when the share price retraced from its high. Perhaps that is the intention behind the manipulation of the share price. The prior strong uptrend may be the work of syndicates so as to allow them to dispose their holdings at a favorable price to the optimistic investors when the share price retrace. If CSL is genuinely good and is really different from other China-based companies, it’s share price will not be traded at a depressed level today. Let’s look at the chart of CSL.

Update on Zhulian [5131]

I mentioned in my previous post on Zhulian that its price is expected to rebound once it reaches the RM2.53 level. Given the improved sentiment today, the price may not reach the RM2.53 level but instead rebound tomorrow since RM2.60 is itself a support level. The formation of a dragonfly doji with high volume and the creation of 8 new lows as counted from the 21st of January provide further signal of a possible reversal.

Stocks to Watch: Pwroot [7237], Spsetia [8664]

Pwroot

pwroot
This is pretty straight forward. After a consolidation of 2 months, Pwroot is poised to move again. RM1.27 is the level to watch closely as a break/ close above would send the stocks fly. If you are a fan of Bollinger Band (BB), the first buy signal would have appear on the 18th of February, when the share closed above its middle band. Today, a further buy signal can be seen as it closed above the upper band of the BB. The support is at RM1.22/ RM1.20.

Spsetia

Spsetia

Watch Spsetia closely as well as it is forming a pennant. Using the flagpole as an estimate, the stocks could shoot up by around 40cents and stop at around its previous high of RM3.78 in the event of a break-above. Immediate support is at RM3.39.

Predicting the Market using Feng Shui

A publication in the business column attracted my attention today – Year of the Water Snake Prediction. I have always knew that there are people who have been relying on FengShui, or particularly “Flying Stars” and “5 Elements”, in identifying investment opportunities around the world, but I never expect to see such kind of advice appear in the newspaper. In this post, we shall see whether the economic predictions based on Feng Shui are aligned with those predictions of research houses and my opinion on sectors to focus in 2013.