Toll hike, Weak Ringgit, Rising Living expenses, with all the negative news around us everyday and life is getting tougher, but lets not drag down by the negative energy. As being thought by my Sifu, where I will quote his statement here " Don't complaint, buy shares!"
The logic behind this is stop nagging and look for the shares that will get benefit from the hike and invest in it to get back your money. For an example, you can always buy "Highway Stock" when there is a rate hike as this willl boost the profit of such company and of course you will get good dividend from it.
Today we are going to share u "tips" to benefit from Valuecap.
As FBMKLCI is now already above 1700, is Valuecap still
relevant to support the market??? Looking at the situation, Valuecap is not relevant to support the
market anymore as the index is now back above 1700 but we believe that Valuecap
will still deploy money into the market as our PM need this to make sure the
market players are confident again and also making sure that his word count as
he is now at the most dangerous time of his political career. In order to secure his position,
he will have to do something to make sure the cronies are happy or else the
cronies might turn their back on him. So what will he do? we assume the state fund will buy up some of the cronies stock to provide a good chance for them to cash out from most of their current investment.
Let’s not discuss whether is this a good move to the nation and the rakyat as we can’t change this fact, hence let’s look for a solution that will benefit U & ME.
This is the jizz of "No complain, buy stocks!"
As a player in the market and also an opportunist, what
shall we do and aim to make sure we will be benefit from the action that will be taken by the
government?
It’s actually quite easy to answer this question
1st We look for the shares that being perceived
as the cronies counter.
2nd Make sure when can Valuecap start to buy.
3rd After making sure of the date, buy before
Valuecap especially when the share retraced.
4th Sell the shares to Valuecap together with the
cronies with handsome profit
5th Wait for the market to fall and REPEAT!
So for the 1st question, what’s the cronies stocks that we shall look at?
1st FGV
As we mentioned last week, Felda Global Ventures (FGV) is something that we should look at it
seriously. As we all know, this company was initiated by our 2nd PM
Tun Razak where his son whom is the current PM had continue his good work by
listing the company in year 2012.
Other than being a brainchild of our current PM’s family, we
should also be aware that there are more than 55 Parliament seats are under FGV’s
settlers. This mean there are about 55 or over Parliament seat will be in danger if FGV
is not performing. As Malaysia Parliament were formed by 222 parliament seats,
hence 55 is equal to almost a quarter or 24.77% of the parliament.
So what will
U do if U are in our PM’s position?
Will U use Valuecap to “invest” in FGV in
order to secure your position? I will definitely do that.
2nd UEMS
UEMS, were well known as a GLC since the Tun M’s era. This
is a counter that have lots of land in Johor where lots of Parliament seats are
under this area, as we saw tension are growing in that state especially after
sacking the DPM and also the relationship with the Sultan’s family. We believe
Johor related counters such as UEMS and KUB might be also one of the target for
Valuecap to buy in, as this is to create a cash out platform in order to
exchange for political support.
3rd MRCB
MRCB were not doing very well previously due to the previous
management, however this is also a traditional GLC link stock that shouldn’t be
forget.
4th SEACERA (7073)
This was not being well known as a political related stock
as the past. However, we would like to highlight this stock as it had started to move and rose in May 2014 where
there were news reported saying the company had submit proposal to build
electric fence at the border of Thailand and Malaysia and also submitted tender
to be part of the builder for Menara Warisan. The stock price had shot up after
then where the highest is RM1.33.
The core business of the company was selling ceramic tiles and have moved
in to property development but there were some undisclosed news saying they are closed to the most powerful man in Malaysia and went to some of the business
trip together, hence they are able to submit proposal for these 2 big projects.
The share price had moved to RM1.33 of its highest and there
are speculations saying that the electric fence project might get a go on this
coming budget. (I’m not sure how true is this piece of market talk or so call
rumors or whether how reliable it is as there are always lots of so called news
in the market, but the share price had moved recently hence this piece of
rumors could be true.) We believe the stock may challenge RM1 IF this piece of
news is true and RM1.33 the previous high might be in target.
I think this might be the best to play as the share capital
of the stock is small and its cheap compare to the others. Its good for small
fish like me as this stock offer a chance of small bet but big gain.
5th MHB
MHB a share that was traded as high as RM8.82 and is now
traded RM1.10. The share is a subsidiary of Petronas where the share price came
down as project were not given to this company, however, we believe this
company might be a good play for the cronies to get cash by moving it up.
*Pls like our FB page and turn on the notification from our
page as we will keep u updated on the latest Cronies stock that will be on
target once we found it.
2nd Question
After having 5 stocks to monitor on top, let’s move on to the 2nd question. When can Valuecap start to buy?
In the previous article, we saw that Valuecap were being
given aggressive dateline on 15 October to start purchasing, but the person in
charge think its hard as they have regulatory steps and approvals from the
shareholders hence he think Valuecap will only be ready by 2nd half
of November. So is telling us, we still have 1 month to mop up the shares
before Valuecap.
Source: http://themalaysianreserve.com/new/story/valuecap-share-buy-%E2%80%98spree%E2%80%99-starts-november
However, we saw some very special situation on last Friday which
is 16th October.
FGV were closed 5 bids higher as there are someone who came
in to the market to mop up all the shares available. We can see that there are
10,000 lots or 1,000,000 units of shares which worth around RM1.74 million were
being mop up last minute. Who could that possibly be? It wouldn’t be small fish
like me, could that possibly be Valuecap? Or maybe the insider? Well, we will
stop to speculate here but we believe this might be some insider. Looking at
such a situation, we believe FGV might have a chance to touch RM2 in 3 months’
time.
Other than FGV, we did also saw UEMS had big fish “Makan” in
the last 15 minutes which turn the share price from red to green.
PMetal, another stock that got the same thing like UEMS.
MRCB which is also have big makan at the last 15 minutes.
Seacera, started to move from the noon, however, all the
available stock were mopped up by somebody at 4.50pm which u see in the blue
box. This might be the insider? If it is really insider then we believe it wouldn’t
be hard for the share to move to RM1 and above.
Though this big “makan” at the last 15 minutes wasn’t able
to justify whether the Valuecap has enter the market yet, however, this big “makan”
indicate something.
We also wouldn’t rule out that this big “makan” might be
related to the Budget that will be announcing on 23rd October. If
this is really related to budget then we might see these shares continue to
move on this Monday onwards until the good news is out.
*Pls like our FB page and turn on the notification from our page as we will keep u updated on the latest Cronies stock that will be on target once we found it.
3rd Step
If the big “makan” above is not from
Valuecap but insider, then we may follow the insiders to play until before the
budget out. Hence we might have half month more to collect these shares and
sell it to Valuecap on the 2nd half of November.
4th
Sell the shares to Valuecap together with the
cronies with handsome profit.
5th
Wait for the market to fall and REPEAT!
RISK!
It looks like a good plan isn’t it? But wait! Never forget
about the risk too!
1st the largest risk of this strategy is our PM’s
budget might get rejected due to the rebellion and also the non-confident vote from
the opposition, these might causes Valuecap to stop its action, however, this
is not the end as we are able to manage the risk. How?
Manage Risk, how?
The budget will be announcing on 23rd October
which is on Friday, hence we could still participate in those stocks on Monday and
sell it before the Friday closing. This is because the stock will still move
before the announcement and they will only vote after our PM finish his budget proposal.
Hence, the market will only react on the next Monday if there is a vote of no
passing the proposal.
On the other hand, readers shall not forget the most
important principal which is "buy on rumours and sell on news. Its important to
take profit after the news are out!
*Pls like our FB page and turn on the notification from our page as we will keep u updated on the latest Cronies stock that will be on target once we found it.
We think the strategy above should be good for our readers
to make some handsome gain, however, the strategy will need ur trading skill to
make sure u r able to make money too and trading skill is something that we couldn't share here as it is very tedious.
We have shared our best and all the
things we know, however, we wouldn’t be 100% confirm about all the news that we
get are 100% reliable. THIS IS BECAUSE WE ARE LIVING IN OUR BELOVED MALAYSIA and things get
to change quickly, Valuecap might move in earlier or later or maybe even not in November
though it was already reported in newspaper that they will be in on 2nd
half of November.
Source: http://themalaysianreserve.com/new/story/valuecap-share-buy-%E2%80%98spree%E2%80%99-starts-november
Once again, we would like to reiterate again that this blog
is here to help out our readers and try to let them make some handsome gain
from this volatile market.
May all the Huat be with us. Huat ah!
