Usually when Dow drops more than 300 points, chances are that it will rebound on the following day. But this was not the case on Friday.

So, likely scenario is US markets could remain weak in the coming days. Whether this will dampen our Asian mkts(including Bursa), we need to be extra vigilant.

As per my posting earlier, the risk/reward ratio has turned increasingly against us.

Dow dropped 317 points last Thursday on Europe's concerns. Our penny stocks were not spared the brunt yesterday. Bucking this downward pressure, I saw some counters running up, eg Stone, Kinstel, Perwaja, etc.

Why did they choose to run up at this time? Any compelling reasons? Is this yet another ploy to 'pump and dump'? Things would be clearer next week.

One thing for sure. PM Corp's selling has almost dried up(only 35,000 shares done). But there is just no catalyst to bring it up. See if the next quarterly result can offer any hope.

Ha! Ha! Buy and sell at own risks.

Rich, China stocks are somehow not so well received in Bursa and Sgx. HK H shares would be deemed as a good proxy to invest in China stocks.

Of course, things may change if China funds or big syndicates start to play up China stocks in Bursa and/or Sgx.

Asia stocks climb on China optimism today, even though Dow was down sharply last Friday. Shanghai stocks rally over 2%.

Since my earlier posting on 16 July, Asia markets, including Bursa, have enjoyed a good run. Those who have been sitting on the sidelines, worried about the Hari Raya effect, would have probably missed out on a good part of this rally. Now, the risk/reward ratio is getting increasingly against us.

Market really rewards participants who take prompt and swift actions. Buy and sell at own risks.

Calvin, thanks for the reply. I will factor in your inputs in my investment decisions. It is always prudent to get a second opinion on investment as high NTA is not necessarily the only decisive factor to drive up prices.

Calvin,

I am currently looking at Pasdec Holdings Bhd. It is a reputable property developer in Pahang. Based on its quarterly report as at 31 March 2014, its NTA per share was RM 1.68. It was trading at 82.5 sen(based on yesterday's closing price).

How do you find this counter?

PM Corp has been trading in a narrow range between 21 to 25 sen in the past 2 to 3 months. No break-out of the Bollinger Band yet.

Now that World Cup is over, we can see some 'speculative plays' in certain 'speculative' counters, led by Sumatec, Iris and Mpay, etc. Trading volume has swelled to 24 millions lots, worth RM 26 billions, today.

Whether this can bring back more retail participation, things could be clearer in the next 1 to 2 weeks.

Humbled, I miss your fun and humour. I sold some Insas and still kept some. Looks like I could not buy back Insas shares at the price that I had sold.

细水长流 is one of my favourite songs, composed by 梁文福. Let me dedicate this song to you and all other music-lovers.
http://www.youtube.com/watch?v=c0clcDm-2bM

Enjoy..

Humbled, long time I did not hear from you. Are you still holding RCE Capital? It is doing well this period.

Damiantreez, the turn may come if Mr Najib's brother joins PM Corp's board too. According to a report, this is what happened to Sumatec share price today.

21 sen has been the critical support level. Whether it will drop below that level depends on the intent of the following individuals:

1. Shark: By far, it is the most influential. He can push it up or down, depending on his take of the company and other factors;

2. Leno: She has been supporting this counter at around 21 sen level. Without her support, the counter might already be testing 21 sen support level now.

With no fresh leads, other individuals like long term investors and short term traders are mostly staying on the sidelines.

The bigger picture: Let's hear what Ms Janet Yellen has to say later, to decide on the direction of stock movements.

Sweet dreams(about PM Corp hitting RM 1.50)!

I did not study about Mulpha. I am not able to comment much. But I do know that its share price has dropped a lot from its heyday, to 43 sen today when most other counters have gone up instead.

There could be some reason for its under-performance. Please do your due diligence before investing.

High NTAs may not necessarily translate into high share price. Look at Berjaya Corp Berhad. As at 2013 3rd quarter, its NTA per share was RM 1.3234. But its share price is still hovering around 50 sen levels.

Why? There could be some other factor at play.

Calvin,

Management makes the difference in your so-called hidden factor.

Good management knows how to reward its loyal shareholders by declaring special dividends(eg huge or big dividends), bonus shares, etc. This is known as "enhancing shareholders' value".

But will the management of PM Corp do this? Not in the past. And not so likely in the future, unless management really changes its philosophy of rewarding its shareholders, which is apparently lacking at the moment until proven otherwise.

As the saying goes, "A leopard can never change its spots". PM Corp has to demonstrate to us its resolve to change for the better, before we can see better days ahead.

Just my frank views.

Wilsongan, the first and immediate price hurdle is 25 sen. If this cannot be crossed over convincingly, RM 1.50 target is just superfluous.

In Chinese study, 3 factors must be present for a subject to flourish, ie time, place and the people factors. All these factors are negative at the moment. How can PM Corp shine?

1. Time factor: The market is in a consolidation phase. No 'compelling' reason for it to defy market movement;

2. Place factor: No track record of good profit growth. No selling of valuable assets to warrant any play by the shark;

3. People factor: Exodus of forumers and/or longer-term investors, lacking in management commitment to enhance shareholders' value.

Balance sheet is the same as statements of financial position, as in the annual report.

Alternatively, you can make an email enquiry to: fgv.investors@feldaglobal.com , if you are already an investor.

Yes, look under balance sheet, current or non-current assets(with notes to assist you), if there is any mention of quoted or unquoted securities related to Cadbury(or its equivalent).

If you do not see any, most likely there is none.

(Please consult an accounting expert if in doubt)

In a stock market, info is not accessible to all. Sharks are good at exploiting this gap by creating rumours and target price to pursue their 'money spinning' plans. So, never take things at face value. We need to verify them.

You may want to check it out(from Felda's latest annual report).

Management capability is said to have a lasting impact on the company. This is akin to the theme song of a movie. The movie can be screened and watched. But the song will always be remembered and relished over a person's lifetime.

Let's go down the memory lane to recall some of the popular theme songs of the old love movies:

1. http://www.youtube.com/watch?v=NeaQfvj6Avc
2. http://www.youtube.com/watch?v=nBnarTY-4Yg
3. http://www.youtube.com/watch?v=gmyWos6sHm4
4. http://www.youtube.com/watch?v=SFGt24uXZUA
5. http://www.youtube.com/watch?v=3USct3bmFE0
6. http://www.youtube.com/watch?v=utEl0GsOcQg

Enjoy these great hits...a collection of old-time memories!

As I said earlier, I am not doing anything at the moment. Just relax my mind.

As the saying says, "Taking a pause at an appropriate juncture is to prepare for a longer journey ahead".

Zu1967, you made another round of profit to exit at 23.5 sen? I saw your sell signal with the word "Bye".

Ha! Ha! Nothing seems to escape my eyes..

A good management makes things happen. But a bad management waits for things to happen.

Let's open our eyes to see which type of management PM Corp has.

That is why Mike Kong has acknowledged Leno as his sifu. By this connection, all Mike's followers must call Leno their grand sifu.

Do not play play...

Yesterday, the whole Mui group of related companies were mainly up, along with PM Corp. Today, all come down together.

Look at MUI Berhad. Yesterday, the total volume traded was 7,311,500 shares. This morning, it was only 92,100 shares. What a great contrast! Hence, never cast doubts on what the shark is capable of doing!

PM Corp is currently languishing at 22 to 23 sen level. For it to regain its uptrend on a firmer footing, certain things must be in place:

1. The management must be doing the right things(in the eyes of the investors);
2. It must have a pro-business plan and a track record of good profit growth;
3. It must be able to retain a relatively high proportion of long term investors as opposed to short term traders in its shareholders' profile;
4. It should preferably have good media or brokerage coverage with positive outlook on the company.

A dreamer needs to be a doer too for the dream to come through. If he is not doing it by himself, he has to entrust it to someone else(eg the management)to carry out the work for him.

So, choosing a good management is key to the success of one's dream.

Better to wait for the 1st quarter's result. Who knows, in a not-so-likely event, if there is announcement of an asset sale or cash pay-out, the impact would be more immediate.

Ha! Ha! Trade at own risks.

Wow, so many of you are feeling so high, effects of the ecstasy pills?

I remember not too long ago, during then Leno was seen promoting this counter, a wider group of forumers were talking about bidding up PM Corp's price. But the next day, after waking up(from the hangover), nothing drastic happened and price did not move much.

Real investors usually invest in a company for its robust management and its ability to generate value for the shareholders? Will and can this piece of news really alter the perception of these investors?

Not as simple as 1 + 1 = 2.

Zu1967, hopefully he is right. Market is weak. I would rather wait for the result to be announced first before deciding on the next course of action.

Zu1967, you got a buy call from Swingtrader?

Currently, not doing anything yet. Just relax my mind with soothing songs.

Inspiration from this song - 姜育恒 - 再回首:
"I keep asking myself again and again in an obscure manner, only to realise that it is never too real to lead a plain and composed life."

Ha! Ha! Be contented in life sometimes!

Good music soothes our nerves and souls, away from the pursuit of material wealth.

Listen to good music, while waiting:

http://www.youtube.com/watch?v=MpM24jaoCEc
http://www.youtube.com/watch?v=mdqfuWcpibA

In a matter of 7 days, we should be able to see how well PM Corp performed financially.

Seriously speaking, I believe the shark is sitting on paper loss too for this counter as his average cost is higher for the recent lots acquired. So, the shark is also hoping for a good set of results to push up the counter.

Ha! Ha! Life is not always a bed of roses.

When we look back again in life(and our investments as well), what went right and what went wrong?

Isn't it timely to do a review too?

Looking back again...(姜育恒 - 再回首)
I keep asking myself again and again in an obscure manner, only to realise that it is never too real to lead a plain and composed life.
Upon looking back again, I awaken myself abruptly to this dream of mine;
Upon looking back again, my heart remains....only that long stretch of never-ending road keeps me company.

Lyrics from this sentimental song, a universal language man has ever created.

http://www.youtube.com/watch?v=FBKHhN7MpSw

There are basically 2 classes of stocks that 'real' investors are keen to invest:
1. Growth stocks: Investors are rewarded with capital appreciation in terms of growth and higher share prices;
2. Dividend stocks: Investors are rewarded with dividends that are potentially higher than FD rates

PM Corp does not fit into any of the above classes. It is at best an asset play stock. Once in a long while, you might be able to see some 'interesting' play by the shark on an asset sale talk.

Theoretically, how much can a share-buyback program help? Not much, except to cushion the fall. Only real demand can bring the prices up. Real demand will only be sustained if there are 'real' investors bidding for it on a 'sustainable' basis. That has to come from management's resolve to change its management philosophy drastically, to one that favours and enhances shareholders' value.

This goes without saying. If management is not keen on enhancing the welfare of the minority shareholders, why should the latter remain loyal and support its share price?

To me, this is just a dead cat bounce. There could be a few bounces before it is pronounced dead. Syndicate needs to push up the prices to clear the stock collected over the past few days. Nothing new.

Greatest joke of the month:

Dsonic CA, a covered warrant that may lapse worthless upon expiry of the warrant, was chased up to 31.5 sen yesterday, up 9.5 sen. But PM Corp, with NTA of 47 sen per share, is just languishing at 22 sen.

It is just a market of twin cities. What a joke!

The whole penny stocks market is in a consolidation. PM Corp has no 'compelling' reason to defy market movements. As I said, if there is no imminent asset sale, it will very likely remain range-bound at depressed levels.

Somebody asked me why the market has become so bad. I told him this reflects the law of the nature. Most penny stocks have gone up a lot in the last few months. So, it is only natural that they are 'pressed down' too when market conditions turn bad, hopefully to pave the way for the next upswing some time down the road(same concept as in last Dec).

The timing of the 'collapse' could not have been better:
1. Sell in May: Traders are used to this idea and this year, esp with World Cup in June. First, it was 'directed' by the syndicates that 'pushed down' the 4 counters. Next, we have stockists that ride on the bad market conditions to 'trade down' the other counters;

2. There could be 'technical' or 'relief' rebounds along the way. Even so, they are usually short-lived.

3. As PM Corp is not deemed to be the subject of the stockists' action, the rebound could be modest and short-lived too, most probably another creative work by the shark, trying to offload uncleared stock.

Just my views. Not a buy or sell call.

Market is no good. Better listen to songs. Relax.....

http://www.youtube.com/watch?v=FBKHhN7MpSw

姜育恒 - 再回首

曾经在幽幽暗暗反反复复中追问
才知道平平淡淡从从容容才是真
再回首 恍然如梦
再回首 我心依旧
只有那无尽的长路伴着我

Zu1967, some things are better off left unsaid. Rest assured I will not follow Mike to ask other people to cut loss, even if I had sold mine.

Zu1967, if you had followed my earlier postings, you should have known what I had done. I will not talk here to influence other forumers.

Pls be realistic. This latest bull run cannot even cross 25 sen. How to dream of going beyond 30 sen?

Alexofb2b, it should be around 20+ May, not so early.

In a consolidating market, some get moody and upset. To me, it is time to do a strategic review of our portfolio and market conditions. Add or subtract some counters, depending on the merit of each one.

Do not simply groan over paper losses. Take this time to review and reposition ourselves.

Penny stocks may be going into a consolidation mode soon for the next 2 months. Better beware.

Humbled, taken your profits?

23 sen is an artificial support by the shark. As I said, the shark is still clearing his stocks at current levels(could not manage to dispose more at higher prices). Given that market sentiment has turned bad today, the shark may have to lower the ask/sell prices too.

While some high-flying hawks are being shot down from the sky, this little bird can still enjoy some serenity. This is perhaps the only consolation.

Ha! Ha! Trade at own risks.