Two months ago, I posted a few examples of extreme buyings and sellings. Then, I suggested a talk on these cases : climax buying and selling. Only 6 of my turtles attended. Well, it took about 9 months plus to see the buyings in Jan trashed out recently. Anyone jumped in Jan ... selling today will be experiencing huge losses. I believe MANY novices and greedy-kakis bought SIME in JAN around RM9.20 or so. Some veterans one might cut-loss earlier, recognising it was a mistake to jump into a stock when it shot up. But many trapped. MANY.

Today, SIME is the second most actively traded stock!! The selling was tremendous. It went to 7.64, actually. Strong support seen at RM7.50. With bearish market, it might go to RM7.50 ... so hang-on if you are caught inside there today. ouch.

Today, SIME dragged down KLCI. KLCI down 17 points, HSI lost 500+ points and DOW down 200+points now. So, will SIME recover tmr morning? Hmm ...

SIME : I do have a turtle working with SIME. When she used SIME's note-pad to write the notes while I was teaching, I joked with her that I dont like SIME as a stock. They always do stupid business decisions. I am not sure if the new CEO doing anything much different, but being politically-linked .. this is one lagging giant. When are they going to list the plantation-arm? haha .. SIME was at RM8.80 level on 9th Sept when I had that class. Today, it has lost more than RM1 in a week? OUCH.

RSI(14) at 14. Well, 14 = sure die in Chinese. What do you think?

Sime unit expects big 'lift' from China, India

By Ooi Tee Ching
Published: 2011/09/20

PETALING JAYA: Sime Darby Bhd's industrial division is set to perform better in the current financial year ending June 2012, as it anticipates big orders from China and Australia's mining industry.
In the year ended June 2011, Sime Darby industrial division posted its highest ever operating profit of RM1.07 billion.

The division, which operates in Australia, China, Malaysia, Singapore and the Pacific Islands, is the second biggest profit contributor to the conglomerate after plantations.

Sime Darby's six core businesses are plantations, property, energy and utilities, industrial, healthcare and automotive.

"We're hopeful of doing better this year as we offer new products from Bucyrus. Our addressable market will grow to 75 per cent from 23 per cent," said Scott William Cameron, Sime's industrial division executive vice-president.
"Among the range we have, the mining equipment brings in the highest margin," he told reporters after a tour around the group's assembly yard here yesterday.

Four new products by Caterpillar that would be useful to mining companies are walking draglines, electric rope shovel, rotary blast hole drill and continuous miner.

"So far, we've secured RM3 billion worth of heavy machinery orders from our customers in the next three years," William Cameron added.

Two months ago, Caterpillar Inc, the world's largest maker of construction and mining equipment, said it had completed its purchase of rival Bucyrus International Inc for US$8.8 billion (RM27.4 billion).

Caterpillar group president Steve Wunning reportedly said the company planned to sell the Bucyrus distribution business to Caterpillar dealers that support mining customers worldwide. "This is consistent with our long-held distribution strategy of strong, entrepreneurial, independent dealers," he said.

Sime Darby, in business with Caterpillar for more than 80 years, is the heavy machinery maker's fifth largest distributor.

Asked how much it will cost Sime Darby to buy Bucyrus' distribution assets in the region it is currently operating, William Cameron replied, "we're not allowed to disclose information on that".

Also present during the tour was Sime Darby Industrial Sdn Bhd managing director Chong Kwea Seng. He said the company is set to be one of the suppliers of heavy machinery to contractors undertaking job packages of the Klang Valley Mass Rapit Transit (MRT).

"To our knowledge, the MRT job packages are scheduled to roll out in the first quarter of 2012. So, we expect contractors to place rental orders for our machinery in the second quarter," he said.

Taken from : The Edge

TEH