28th AUGUST 2014

Following the Posts on Rumors Play about APFT, PRIVA and SCH.. APFT has since been moving steadily to RM0.20.. (as of 26-Aug-2014). Traders grabbing them at the low of RM0.17 days ago would have some a handsome quick gains of nearly 17% in less than a week. (which can annualise to 880% per annum. Well, i must say it is definitely LUCK). However, SCH has still remain at 0.275 while PRIVA has declined to 0.14 from the peak of 0.155. Overall, I am in NET gain position.

There are stocks that are less appealing because they have sustained losses, fuelling fear that business potential is on a downwards trend and so investors could shy away and causing a dip in the share price. Well, the share price does reflect investor's confidence about the company. However, this can also be a good opportunity to buy in company that has potential of reviving into profit.

I have personally picked into TWO counters which I am looking into which might have this potential.

PA RESOURCES BERHAD (7225)

PA has been trading near around RM0.125/0.13 for sometime with recent interest bring up the price to the high of RM0.145 before retreating to current level of RM0.125 again.

Dato' Ng Tong Hai, whom was previously attached with Hirotako until the company was voluntary delisted from Bursa, has emerged as new substantial shareholder for PA and is continuously increasing his stake. He has a track record of turning around business which I believe, the tiger is still fierce and alert. 

In January 2014 - PA has been awarded with RM36million solar project which the remaining of its return has to be reflected for this coming quarterly results (to be announced soon).

With the new management faces in PA, there has been increase a stedy growth in its revenue from a quarterly low of RM16m to RM40m, which could speak well of the effort put in by Dato Ng..

So the questions for short term are:

1) Prospects of Aluminium business? 

2) How well PA can exploit the renewable energy market?

3) What figure do we expect in this coming days when the quarterly result is announced?

anyway.. i definitely find RM0.125 or 0.13 is an acceptable entry price with low downside right but good upside potential.

WATTA HOLDING BERHAD (7226)

Coincidently, PA and WATTA has Bursa Code just positioned next to each other...

WATTA has recently indicated buying interest few days ago, pushing its price to the height of RM0.53 before it comes back to the level of RM0.49/0.50 currently.

Last Quarter was a loss-making quarter. It has reported RM709,000 in Q2 - but going through the financial statements, we can understand that this is ONE-OFF loss arising from provision in the accounts. Therefore, the coming quarter situation could be better for coming announcement due in few days time? Let's see... 

Some buying interest in WATTA seems coming in recently.. does this ring a bell to accumulate?

Btw, Watta business involves in the marketing and distribution of automotive batteries and related products; Services, which is involved in the marketing and distribution of telecommunication equipment and related products (e.g. repairing smart phones), and Investment holding.

At time of writing, I have shares in PA and queuing for WATTA.

Shares are always cheap at the current price if you are buying into a company that generates value in future.

Hopefully, I have picked the right one...  Happy Investing

Calow