Citytrader - since you will be away, let me wish you first. Happy Chinese New Year & May You Have A Prosperous 2014 in KLSE. Happy holidays.

Good afternoon to everyone.

Connie - why would anyone want to ban a good soul like you? Have a good weekend.

Matrix, MPHBCap should be testing its breakout price of 1.78 today.

Greenday - if you want to track good dividend yield companies, you can check out this link below:

http://www.malaysiastock.biz/Report-Analysis/Top-KLSE-Dividend-Stock.aspx

When you meant many shares giving discount now, do you mean they have retraced a lot or do you mean it is cheap relative to its intrinsic value? If it is the latter, then it is good because now you will be trading with a higher margin of safety.

I agree with Matrix that the market is weak and I suspect maybe due for a correction. I have pared down my investment substantially. Do trade cautiously.

Great stuff and congratulations on your quickie in Muhibbah.

Just cleared all my Silk holdings to lock in profits at 0.655 when it encountered strong resistance to clear 0.66. The price movement is too high and too fast over 2 days to give me any comfort. But I think there is still momentum in this share to scale higher. Like you said, all shares need to take a breather before it can trend higher. Will re-enter this counter again based on its technicals.

Matrix - early signs of MPHBCap's chart turning bullish and reversing to an uptrend with a substantial increased in volume traded. Should be testing its immediate resistance of 1.74 before it re-test its all time high of 1.78. Catalyst: entering negotiations on a tie up with another company to expand its insurance business.

You might want to put this on your radar.

Calvin - yes I do agree that the future does bodes well for the company with the expected population growth and its venture into the O&G sector, which will be their key driver of revenue growth. So, the potential Petronas contract will be a further boost to their revenue.

Calvin, it is important to note that this company currently does not have strong fundamentals. No doubt its profits increased 12% last year but it has high borrowings, negative free cash flow and a current ratio of 0.63:1 amongst other factors. The catalyst for this counter is the potential Petronas contract.

matrix - forgot to congratulate you on your PRTASCO profits as I was distracted by your trading and sex analogy.

The analogy is a good one. I like it. Yeah, trading is just like in business. We make the decisions, blame no one except ourselves for mistakes and reap whatever comes out of it. Good one.

Connie - ha ha ha! Glad you have it right for both.

Matrix, was about to suggest to you Silk Holdings for short term trade but it is now already trending up and just broken its resistance price of 0.53 with volume 5 times its average 4 week volume. Immediate support is now at 0.49.

Caution: the company does not have good fundamentals although 2013 profits increased 12% over 2012. Current ratio is 0.63:1.

Catalyst to price increase: Potential winner to a Petronas contract for offshore supply vessels as they just bought vessels large enough for Petronas need.

Happy holidays and happy trading.

Thank you inwest.

Inwest - absolutely agree with you especially with the upcoming CNY holidays. I have taken profits on most of my holdings. Have also bought into Silk for short term play.

Well supported for the time being. Worth hanging on to it longer.

Cutting loss is not an issue of FA vs TA. It is an issue of capital protection. The circumstances and reasons for a fundamentally good share to trend down is an important factor. If a share goes down in price temporarily by 10% or 20%, of course it is logical to buy in more. Then we would be buying in cheaper relative to its fair value and with a higher margin of safety.

But in a scenario where we have an external shock to the economy that rattles the stock market and causes the share to go down continuously, do we then cut loss or keep averaging down, even if it can be for a prolonged period of months to more than a year? It would be a better option to take a loss first and let the dust settle before buying back in if the share's fundamental value is still intact then.

Of course, different investors would deal with the situation differently and I respect that as long as the investor's method works for him/her. After all, we do live in an imperfect market.

Warrants can be volatile and speculative and usually traded by retailers. Probably that is why you see the different trend.

When the price of a counter gets beaten down, it affects the investor psychologically. Usually emotion gets the better of the person when objectivity is much needed and more useful. Hence, investors throw good money after bad.

The negative psychological effect peaks when the the investor keeps averaging down only to find that it can go even lower and you end up with the limbo dance, "How Low Can You Go"! Some may recall the share market crash in the 90's when cheap becomes cheaper and became cheapest until it became dirt cheap.

Thats why some investors sell off the first instance the price reverse to an uptrend hoping never to see this share again in his/her life. And by then, the psychological effect would have taken such a massive toll on the investor that he/she does not even want to re-visit the fundamentals of the company and the one mission then would be to get rid of the share.

I have been caught myself during the early days of my investment trail when I was much younger and more gung-ho but fortunately not to the extend of total loss.

So, its always good to protect ones investment to cut loss when it hits the stop loss price. Once you get used to cutting loss, it becomes second nature but the frequency of loss cutting should be minimal. If not, we need to re-visit our own investment decision making process. Its always good to decide before buying in, how much loss we are prepared to take if the share turns down. Of course, it goes without saying that researching into the fundamentals of the company is a basic requisite.

Matrix, just to share with you my trading strategy for warrants (may or may not be the right way but it works for me).

My 3 criteria for trading warrants are:
1) when I am also trading its mother share or when there is a trend reversal on its mother share.

2) expiry date of the warrant is long.

3) there is sustainable volume on the particular warrant

I trade warrants on a short term basis because it is can be quite volatile and I usually clear my positions with 5 to 10sen gain, sometimes more than that, depending on the market conditions and momentum of its mother share. So, I don't bother with the conversion/exercise price. The reality is that a lot of people trade warrants because its a cheaper entry into its mother share and they are probably not wrong. And as you know, there are warrants trading at a premium to its mother share.

Many times, I would have cleared my warrants long before I clear the mother share. With short term trades, I do not need to be immersed in the intricacies of the exercise price and what have you. Its simpler that way. So, I analyse the chart of its mother share for guidance.

Staying away from warrants is also a good call. Anyway, others may view and trade warrants differently but I am comfortable with this strategy and it works for me.

It is not easy to cut losing stks but it needs to be done. It is part and parcel of stk investment. Most investors hang on to such stks with the HOPE that it will turn good. Hope can be costly. The intrinsic value of the stk is important and useful as a guide under such circumstances. Just as useful too is the TA of the stk. Never try to go against the reality of the market.

2 sen down on thin voume is not bad. Probably indicative of investors staying invested for the time being with an expectation of another run up in price.

Price still holding well.

inwest and all 932 kakis - this song is dedicated to all of you from one of my favourite singer, for running a thread that is friendly, helpful, kind and promoting fun trading through ups and downs. Enjoy it.

http://youtu.be/BpfjXmN4-Rk

uptrend intact.

psd56 - testing the 1.77 resistance.

judging from the trend today, there should be more upside to the price in the short term.

inwest - thanks. Very kind of you. Have not locked in profits yet except for Engtex WA and will try to ride the profits as far as I can. Very happy to see that you and everyone here are making lots of money. I guess, Sparkle's wand is working magic.

psd57 - yes, healthy profit taking. Looks to be holding well so far. Lets see it can break Resistance 1 at 1.77.

Matrix, truly admire yr strict discipline. Have locked in all profits for Engtex-WA at 0.81 in view that the warrant is more volatile and the stochastics for the mother share showed a slight hint of a downtrend (may be a temporary sign as it is still an open candle). Still holding the mother share though as I believe the uptrend to my TP1 of 2.00 is still intact.

So far, it has been a good start to the year, following in yr footstep. Cheers!

Matrix, thank you for yr kind words. Did not expect Engtex to spike up today. The resolution of the water concessionaire by the S'gor govt and Ministry was the catalyst. Will ride the profits in the meantime and yes, i am constantly adjusting my exit price for profit protection. I expect profit taking to creep in over the next few trading sessions.

I have locked in profits on all my TAS to focus on Engtex and Barakah. Barakah broke out on 7/1 after the doji formed on 6/1.

caven 101 - you are right. It has a lot of growth potentials in it and we know the contracts in O&G can be huge.

caven 101 - yah, we profit together.

caven 101 - agree with you.

Moon Ng - yes, it need to stay above 1.73 convincingly before it can move on. Personally, don't think it will hit 1.78 today. Not sure if it is a good time to buy back in because the volume yesterday was record high. Can expect profit taking to creep in if it moves higher. But its a good share to hold for the medium term.

Next target price is 1.78. 1.73 taken out temporarily.

Only concern is the very high volume yesterday. Now testing today's next resistance price of 1.73.

Slow and steady rise today. Looks more sustainable this time unlike in the past when the price spike up only to fall back on profit taking.

Tk Frank - Thank you for the info. Should be testing the next resistance level at 1.82. Engtex is poised to scale higher.

bullish trend still intact for the time being.

Matrix, Engtex is bullish. Attempted to break Resistance 2 at 1.78 but failed. I scaled in some Engtex WA few days back at 0.68 when the mother share gapped up. Volume is relatively high today. Can expect volume to pick up over the next few trading sessions.

need to clear 1.68 convincingly.

volume today is the highest since listing day.

tough to break 1.70 today. need to sustain at the 1.65 to 1.68 level.

Buhkuakia - 1.68/1.69

Resistance 3 = 1.68/1.69

Momentum is building up with very high volume. Attempting to break the 3rd resistance level.

Tommylim - depends on yr trading strategy for this share. Very Short term traders will clear within T+3 while short/medium term traders will clear when it hits their target price.

Barakah has taken out the first resistance level today at 1.61 and is testing the 2nd resistance level at 1.63. The the 3rd resistance level is at 1.68/1.69. Counter is still bullish at the moment. You will have to decide yr own best selling price. Do bear in mind that you will not be able to buy at the lowest price and you will not be able to sell at the highest price.

Hot T - thanks for the info. Appreciate it.

Inwest, just saw yr 2 posts on TAS. Thank you very much for the highlight. Really appreciate it. I saw KC's and OTB's comments on the main forum and I agree with their assessments. I am in TAS for a quick trade based purely on TA. My TP is around 1.30 depending on the momentum.

Thanks.

OOps, gap closed.

Matrix - congrats. Indeed a good start to the new year. Still holding on to my TAS. Engtex gapped up today with increased volume.