They Love Nominal Face Value

Many know about inflation but do not know what to do about it. Some know about inflation but are risk averse. Some are happily contented to forget about inflation as they have fallen in love with nominal face value. Which category do you fall into?

If you are from the first category, you must now learn how to get around it. Everyday, be it the wet market, be it the supermarket or at the hawker's stall- you see the prices of things going up. There is no falling back. Your ringgit shrinks at an incredibly fast pace. What it could buy 5 years ago for RM1, today you have to pay at least 50 sen more. Therefore your ringgit has shrunk by half. However, you continue to put your money in fixed deposits. Do you think that is a wise move?

So what options are open to you? By all means, put some money in the FD. A portion-you should look seriously to invest in feeder funds or good local mutual funds and REITS. Funds managed by ING, Prudential and Public Bank have proven track records. The balance - keep it aside to buy into some good Bursa KL counters. Look at such counters as Dutch Lady, Bursa, Maybank, Berjaya Sports-Toto, Tanjong Plc, Public Bank, CIMB Bank and Pos Holdings. When there is a fall or a serious dip, move in.

For the second category, there is no advice for you. Enjoy the sanctuary and refuge of the bank as they rob you blind.

The third category. Ignorance is bliss. Enjoy life.

Quote of the Day:

Heartsong

Shuqi- Belle of the Orient

Say what you want. To me, Shuqi is delectable, sweet, adorable and cuddly. She was truly fascinating in So Close and you can observe you up close and personal in the Hong-Kong version of the Playboy magazine.

I am very sure with a good script and in the hands of a good director, Shuqi can act. She has screen presence just like Aishwarya Rai. I believe Hollywood will soon be wooing her just like they did Gong Li, Zhang Zhiyi and Michelle Yeoh.

Heartsong

Life's Interruptions

We are subjected to interruptions in our lives. There are career interruptions. There are holiday interruptions and what have you.

A death of a loved one is always an interruption. We have to readjust our lives to the new situation. The loss of a life partner can indeed be painful and the time needed to get over it is often long and arduous.

Interruptions in studies when one change course in mid-stream or failed in our examinations is another thing to reckon with. There will certainly be costs involved.

Career interruptions is equally painful when you are bypassed by nepotism and you have to leave the organisation to seek your fortune elsewhere.

Whatever the interruptions, be resolute and pray to God and all things will come into place if only you believe and trust in Him.

Second Board - Just Waiting for Godot

So the KLSE is up, breaking all time records. Fantastic volume and value. Blue chips being chased up to the steeple of their net worth. Second liners moving albeit, less animated.

But what about the Second board? Once the playground of punters way back in 1991 and in1997, today it is as silent as a cemetery. Only a few counters are trading the ringgit category. the rest are all puny stocks. There is just no interest to hold them. Poor shareholders are burnt beyond belief. They know they have been made the ' laughing stocks' for the last decade or so.

So, what do you see the chances of the Second Board counters moving like their counterparts on the Main Board? Unlikely?

I hope they see some action soon, now that most of the shares on the Main Board are highly priced.

Or are they all waiting for Godot?

Verb-Tense Agreement

Talk with some one on English grammar. How do you think they will respond? Phobia galore that's what they will exhibit. They say there are just too many rules and it is difficult for a non-native speaker to remember when speaking or writing English.

What do you think?

I think English rules are learnable. Yes, there may be confusion of singulars and plurals; on irregular verbs and idioms and phrasal verbs. Most people however fumble with verb-tense agreement or concordance.

To me, it is very simple.

There are singular subjects and singular verbs. Subjects such as I and you will take singular verbs. For example: I walk. You walk. For subjects like he, she and it, the verbs will always be an action word with an 's' added to it. Therefore: he walks; she walks; it walks.

Plural subjects will have plural verbs. Therefore: We walk;they walk. There is no 's' added to such action words.

In the 'to be' category; it is always: I am and You are. The past tense will be: I was, he was, she was and it was . Take note: You always take the plural both in present and in the past tense. Thus, you are and you were.

Heartsong

Pretty Women

We have all set eyes on pretty women. They may not be the paramours of the silver screen or dolled up vixens in bridal make-up. But as men, they certainly appeal to us and captivate our hearts.

And how it sadden us when we see them being pursued by pretenders and 'wolves' in their fancy sports cars. But who are we to complain when we lack all these to be able to attract these creatures of comfort? The world is such. Only the lucky few that are endowed with mucho dinero can tackle these sensuous sirens. Like the flowers that bloom in spring, they must be plucked during spring-time. Comes summer, they will be side-lined. Next spring will see another carpet of lovely flowers and the flowers of yesterday will all be but forgotten.

So do not blame these beautiful girls for falling head over heels with "wolves" and pretenders in their spring-time of life. Nature makes them such. Only experience will tell them that the 'wolves' are after only one thing. Like bees they will be after new flowers when spring comes along once more.

Will they never learn, these pretty girls?

Dutch Courage Bursa ?

I am really surprised at the guts shown by fund managers and their derring-do pushing the market. Obviously there are gamblers in the market and they are there for trading gains. Will this market sustain or will it go into a tail spin when some bad news overwhelms the world markets?

There is a saying. When the fishmonger, butcher and the taxi driver starts talking about shares; you better watch out. This is the clearest sign that the market is going to turn turtle.

RCE Juggernaut?

Looks like RCE is on a big move today, amassing volume and strength. It went up almost 5 sen but settled down for a 2 1/2 sen gain when trading ends.Do you think these buys are short term investment buys or speculative buy?

If it is short-term investment buys, then the counter may go up steadily. If it is mere speculative buy, then when T+3 arrives, expect 'lorry loads' of delivery and for the price to go down the next few days.

Buying of RCE continues to be strong today (24 April 2007). Let us see when selling pressure will start?

Happy trading on RCE.

Sanjaya-The Life of American Idol 6

So Sanjaya was sent home last Friday. American Idol has now lost most of its fun element. We love his joyous presentation almost every week. He was quick to smile and was an entertainer extraordinaire in the making. How we enjoyed his rendition of Besame Mucho and his differing hairstyles each week.

We knew he 'would be going' sometime as the time draws nearer. He is no great vocalist,I grant you. We certainly would not expect him to win American Idol. We knew he would be crying tears of defeat. It would have to be sooner or later.

As we say goodbye to Sanjaya, let us see who is likely to quit the scene this week. Will it be Phil or Chris?

Quote of the Week:

"Advice is like snow -- the softer it falls, the longer it dwells upon, and the deeper in sinks into the mind." Samuel Taylor Coleridge

Heartsong

Fast food Fight

Lately,there have been so many promotions between the fast foot outlets. Chiefly, we have the straight fight between McDonalds' and BurgerKing. Also, Pizza Hut has gone into the act as well as Delifrance.

Looking at the offer, the best is still from McDonalds this April which is their 25th Anniversary. You get a free meal item for every purchase above RM3.00.

Killing time

Killing Time

What do you do when you have 90 minutes to killed every week?

I used to have this problem when my son was taking Mandarin tuition in Taman Tun Dr. Ismail. It was on Saturday afternoons just after lunch.

We would bring him for lunch first at Restaurant OK where they served the best curry mee and char keuy teow this side of KL. Then off we whiskd him to his place of study.

Initially, we did not know what to do with the 90 minutes. We would literally walk around TTDI aimlessly, spend sometime in a mamak shop and do some by-the -way shopping at the neighbourhood supermarket.

With time, we knew we could go over to One-Utama by parking on the other side of the shopping complex. We did just that and we soon were shopping at the Jaya Jusco and Giant Supermarkets buying our week's marketing requirements.

Now we are once more saddled with time to kill. Our daughter is taking up Mandarin tuition in Aman Suria. We do not have the pleasure of a supermarket nearby. We only have a 2 mamak shops and a Watsons.

It is really difficult to kill time and so I have to order a teh tarik and read until its time to fetch my daughter.

Heartsong

At a Cyber Cafe

It is interesting the first time you go to a cyber cafe. You pay the RM2 and then you do what you want to do.

First you have to get used to their desktop. As there was no Mozilla Firefox, I just typed in the web-page and went to see the stock pages as well as visit my blogs. I did some correction.

When your time runs out, a small meter on the desk-top will give you the count-down to zero and then you vamoose!

Another Mirage?

Bursa went up this morning as if nothing serious is happening in China. So the impending interest rate rise in China which will make funds more costly to dabble in the stock markets seems to affect only China?

Talk about contagion effect. It looks like the market will believe what it believes. Until the news of the interest actually materialised, I think the markets elsewhere would operate as if they are closed economies; which is not the case. So what gives?

I believe this morning upward bias is because shares have become cheaper and some fund managers have money in the kitty to buy in. Speculators may be more cautious as yesterday was quite a jolting experience!

We would have to wait until the witching hour to see whether the market has found its legs and is ready to climb somemore. Gentings, KPS and RCE look good this morning. hope they can sustain in to the afternoon.Quote o f the Day:"Don't Talk unless you can improve the silence." Unknown. Heartsong

Predicting the Market

As I look at the Malaysian stock market, I am very suspicious especially of the recent run-up. Breaking the 1,314 psychological level set in 1994 has been an obsession. It has been breached. Today market went down 18 points in early morning trade. So what next?

For those who bought into Gentings and Resorts, the best thing to do is not to look at their on-going prices but to lock up the stocks. Look if you still want to bargain buy at lower prices.

As for KPS,it looks like there is something afoot given the heavy buying pressure yesterday. Unfortunately it was only a momentary bubble which fizzled out. It is now going down the tube. The last time I looked it was RM1.37.

Observing the market is no fun.

Quote of the Day:

" We can only do no great things; only small things with love." Mother Theresa

Heartsong

Sexy Malaysians

Durex International's worldwide survey of the the length of love-making shows Malaysians are not bad after all. We have been given third placing. Malaysia Boleh!

I do not know what the Nigerians do during love-making but Durex have placed them chamber champions.

Quote of the Day:

"The values we live by are woth more when we pass them on." Mahatma Gandhi

Heartsong

The Joy of Being Young

Every time you see young people around, you wished secretly that you are in your teens. They seemed so blessed. Life can be fun. They have friends to hang out with. They carry the latest hand-phone and they drink coffee lattee at Coffee Bean or

Rolling War Wagon KPS

It has been a long time I have blogged on KPS. Ever since I chanced upon the underlying value of this counter way back in November 2006, I have been observing its price movement and volume keenly. And it has performed true to form. It has broken out from its Rip Van Winkle state and have rocketted upwards from 38 1/2 sen to above RM1.50 in a short period of 5 months.

There are many rumours in the market. The main ones are the Water Transfer project from Pahang and the Western Tolled Highway. Then there is the bonus possibility of Perak siphoning water as well to Selangor. The last rumour to hit the market is the possible takeover of Puncak Niaga by KPS. All these are good for KPS shareholders.

So what remains in the horizon is for the rumours to come true. The Water Transfer project is a matter of time. The earlier agreement between Kumpulan Darul Ehsan Holdings and KPS will most possibly be nullified now that water is both a state and federal matter following constitutional amendments which was passed. So KPS may be negated a bit here since it is no longer the honcho for the waterworks project per se. Any how, all is not lost.

The corporate takeover of Puncak Niaga is interesting. How is KPS going to fund this purchase? Not through a 100% loan as it would impact upon its operating and dividend capacities. I see a rights issue as well as warrants thrown in as sweeteners. To do a rights issue, KPS shares must go beyond RM2.50.

We are only a ringgit away from that level. Any news will push KPS up. It could be an announcement of the agreed water rates for the water transfer project; potential early discussion with the Perak Goverment on another water transfer project or the tendering of the Western Corridor tolled highway project.

I am watching for this to happen.

Heartsong

Regrets

Every one has some regrets. Some are understandable but most can be avoided. I have mine too. Poor choice of the course I took at university. Poor career choice. not saving enough money. Buying a house in the wrong neighbourhood. Buying a wrong car. Many, many more.

Talentime

I remembered the talentimes when I was at school. Kwai Wah and his rendition of “Fall in Love with You” and Richard Bateman on his accordion were memorable. I do not know where Kwai Wah is today but Richard was killed while hunting, donkey years ago. School Talentimes were generally forgettable.

Then came the era of the Bintang RTM and we had great discoveries the likes of Sudirman Hj Arshad. That era came and went. Sudirman himself has gone too.

Then came our Malaysia Idol. This national contest did attract some attention. Jaclyn Victor certainly deserves to win over Dina. Malaysia Idol 2 was an upset, though. That squeky Daniel won. Nita should have. See how she spin her magic with “Big Spender”.

Akademi Fantasia-I did not watch the earlier ones as it catered to an almost Malay audience. Mawi, however, during the last Akademi Fantasia was good and deserved it. One in a Million- the worst contest as the winner should have been Dayang from the word ‘Go’…. A tragedy of the worst kind… Suki is just a baby!

So what kind of contest do we have for 2007? The Chinese are having their Superstar finals but they appeal only to the Chinese speaking community particularly to the Cantonese. So far nothing in sight.

So let us look at the current American Idol contest. We are now down to the Final 7 after Haley Scarnato was sent home. Not a great singer but great legs! It looks like a two-horse race now with two possible outsiders as well. I must say farewell to Phil,Chris and Sanjaya. The hot breath fight will be between Melinda Doolittle and Lakisha. Jordin and Brad may caused an upset but quite unlikely.

My placings are: Melinda Doolittle for a win, Lakisha and Brad for a place. Jordin will come in 4^th. and Sanjaya 5^th.

So, let us see how it will materialise as the weeks go by.

Quote of the Day:

Heartsong

The Beggars' Syndicate

I was having a walk recently at the SS2 morning market.

'Look at that beggar. Do you ever wonder how he comes here daily?' asked my wife.

The thought had never crossed my mind.

"Well, they are ferried here daily by a syndicate. They will watch over these beggars and observed their takings. After that, they are whisked away,"said my wife, knowingly.

A very plausible explanation indeed.

So the next time, you see a beggar on the street and takes pity on him, remember you are contributing to a syndicate.


Quote of the Day"

Everybody is ignorant,only on different subjects."Will Rogers

Heartsong

Good Malay Fare in SS2

If you loved nasi lemak, then there’s one place you cannot miss. That is the warong behind the BH Petrol station in SS2. This nasi lemak is special, a bit similar to that famous nasi lemak at Tanglin near the Lake Gardens in KL.

Except for Sunday, it is opened to a large crowd, that lines up patiently for their food. A basic package cost RM1.20 and if you add the chicken rendang or fried chicken, it will cost you merely RM3.80. Good food; inexpensive pricing Ho Chiaak!

While you are at that vicinity, try the warong next door as well. It sells Kelantanese fare-laksom and nasi kerabu. Cheap, tasty and authentic. For me, I love their fried kueytiau and mee goreng. Reminds me of the mee goreng served in the canteen when I was in primary school. Simply delicious and nostalgic!

Quote of the Day:

“In a great romance, each person plays a part the other really likes.” Elizabeth Ashley

Heartsong

The Gentings-Resorts Poser

Both counters went ex-subdivision on 11 April 2007, amassing huge gains. Gentings added 50 sen and Resorts took in 28 sen. However, on the following two days, the mood turned nasty and they sold both counters down the river. Gentings went as low as RM8.35 and Resorts to RM3.40.

Why is there this contrasting scenario before the subdivision and after the subdivision of the shares? No facts have changed. The negative news of UK 's intention to subject betting licences to additional taxes or for that matter the uncertainty of the Sentosa Island casino licence has not changed. The market is fickle!

The only logical explanation is that those who had the extra lots wanted to dispose of them because there believe there was no longer any “up-side news”. To play safe,they will just hold a lot or two as keepsakes and locked away all the profits. Similarly, some Singapore fund-managers could have sold on Day 1 because of the good profit margins. Then, there are the jittery sellers who saw the breaching of the 1,300 level as Bursa Armageddon and have been liquidating. Other than that, there is just no good reason for the selling pressure.

Both Gentings and Resorts are solid blue-chips and should pay well in the medium term. As we take cognizance of the downsides of both counters, let us not be unduly disturbed by short-term analysis. Analyses are based on static facts but the market is dynamic. Anything can happen. To me, both counters are dynamic and resilient.

From time to time, I will make my comments on both theses counters. The important thing is to look for the new support price of both counters. It appears that the support price of Gentings is RM8.75 and Resorts -RM3.50.

Resorts had never offered an IPO to the investing public except for a restricted bumiputra public offer way back in the late 80s. At the current price level, Resorts is now going for RM3.50–dirt cheap by any standard. Good to collect for the medium term.

As for Gentings, when was the last time you could confidently buy up a lot or two? Just like Resorts, it is rather inexpensive at RM8.75. The Bursa seems to have run out of good counters at this point of time and my belief is, Gentings still possess good ‘intrinsic value’. So do not hesitate, invest in this counter.

For your information, I have seen the market collapsed during the First Gulf War and during the Asian currency meltdown in 1997. Believe me, on both occasions, the counters that rebounded the fastest were gaming stocks like Gentings, Resorts, B-Toto and Tanjong. Also during recession, these are the best defensive stocks. Dividend-wise, Gentings and Resorts have been paying fair dividends.

The world is Gentings’s and Resorts’s oyster. Good news can be created by the dynamic Gentings Group when opportunity arises. A changing scenario can impact prices again towards a northerly direction for both counters.

Quote of the Day:

‘All progress occurs because people dare to be different.’ Harry Milner

Heartsong

Comet Bursa

After the first attempt yesterday, it broke the 1,300 points today; adding 8 points in the process. The Composite Index at the end of today’s trading was 1,306.34. Well done Bursa!

Now comes, the hard part. Can Bursa sustain itself? I think fund-managers have been buying the last two days. Most were Singaporean funds buying up Genting and Resorts World before the share-split tomorrow.

KPS could not sustain itself after the adrenaline buying rush yesterday. It surrendered five sen to close at RM1.25 on a volume of 48,057 lots; just about half of what was done yesterday.

It would be interesting to see whether the market can hold up tomorrow now that the psychological level have been quite convincingly breached; or will the achievement be a flash in the pan or as brief as a puff from a cigarette?

Quote of the Day:

"The grand essentials of happiness are: something to do, something to love, and something to hope for." Allan K. Chalmers

Heartsong

Babel-Forlorn and Disturbing

Babel is an engrossing movie showcasing the pains, trials and tribulations of human relationships. A stray bullet fired in Morocco set the mood as it ricocheted through 4 countries bringing tragedy and impacting into the lives of persons related with that event.

Well directed and edited, Babel delves into the issue of a husband and wife and their two children. While holidaying in Morocco, Susan Jones was accidentally shot and a simple issue of getting her to a hospital became an international issue when politics comes into play. Meanwhile, a Mexican maid minding their children got on the wrong side of immigration law because she brought the Joneses children over to Mexico to attend her son’s wedding and was subsequently deported.

As for the Japanese family, it is just incidental that the gun that was used in the shooting once belong to that Japanese hunter who gave it as a gift to his Moroccan guide. The story of Chieko, the hunter's deaf daughter showcase how difficult it was to live and grow in a hearing world especially after the suicide of her mother. Somehow unrelated, I thought.

Because it is in the same genre as Crash, Syriana and The Constant Gardener, Babel failed to win the hearts of the movie community this time around and only Gustavo Santaolalla won an Academy Award for his hauntingly beautiful guitar strains on the film’s music score.

Acting was excellent. Good movie. Makes one think long and deep.

Quote of the Day:

“In giving advice seek to help, not to please, your friend.”Solon

Heartsong

Tug of War

The market was lackluster all day long. With the lack of buying support, I believe we are going to have one of those days where we can presumably doze off or go for extra long coffee breaks.

At the final bell, it was Genting and BAT that saved the day shoring up the index to close 6 points up at 1,277.48. All other counters were a tussle and a wrestle between the bargain hunter and the reluctant seller.

Meanwhile, a report of ‘water-play’ in The Star should stir up some excitement. Both Aseambankers and TA Securities reported that imminent announcements on details and call for tenders for the Selangor-Pahang inter-state water transfer project will impact positively on counters such as Gamuda, Puncak Niaga, Kumpulan Perangsang Selangor and Hiap Teck.

KPS saw a Red Sea of sellers when trading begun. From an initial trade of RM1.26, KPS was shoved down to RM1.21 almost immediately. Thenceforth it floated lazily between RM1.22 to RM1.24 throughout most of the day, ending 1 sen up at RM1.24. Volume was 62,061 lots.

As tomorrow is Friday, I expect to see more see-saw action unless there is good news locally or abroad to bolster prices.

Quote of the Day:

“A smile confuses an approaching frown.” Unknown

Heartsong

Treading Water with KPS

KPS started well opening at RM1.26 before sellers came in to moderate the price to RM1.22 to RM 1.23 most of the morning. By late afternoon, buying support buoyed the price back to RM1.30. However, as I speculated rightly, sellers came in again to erode the price back to RM1.23 by the evening close. There was heavy buying particularly at RM1.25 and RM 1.28. KPS closed up 3 sen to RM1.23. The volume traded at closing time was 98,316 lots and the calculated weighted average price done was at RM1.25.

There was a slight buying bias at the close which should augur well for KPS tomorrow.

How will KPS perform tomorrow? Let us watch.

Quote of the Day:

“What makes men chase women they have no intention of marrying? The same urge that makes dogs chase cars they have no intention of driving.” Unknown

Heartsong

The Queen

Just saw “The Queen.”

Now I know why the whole world fell in love with Dame Helen Mirren for her stunning acting as Queen Elizabeth II. Through her, you can see and feel the painful ordeal of those seven days following the death of Lady Diana. Helen Mirren gives us more than a glimpse into the hermetic heart of a living queen. Not a single false note, not a single cheap shot. A performance that is as poignant as it is entertaining. Not to be left unmentioned is Michael Sheen as the delectable Tony Blair and Helen McCrory as the adorable Cherie Blair.

The film attempted to accurately re-enact the atmosphere of British society at the time supported with real television reportage. The moments of subtle humour particularly between Blair and the Queen compensated for the now too obvious and well-known post-events of Diana’s death.

I particularly liked the part when Blair and the Queen met two months on the aftermath of Diana’s funeral and their open frankness and chattiness which then lead to a better and much open relationship between the Crown and the Labour Government.

Many thanks to Stephen Frears for bringing “The Queen” to us.

Quote of the Day:

"Before marriage, a man declares that he would lay down his life to serve you; after marriage, he won’t even lay down the newspaper to talk to you." Helen Rowland

Heartsong

300-A Copycat of Gladiator?

The more I think back, the more I am inclined to think that 300 somehow resemble Gladiator. Look at the wheat field scene showing the wife and the child, forlornly awaiting the return of the protagonist. How familiar!

Yes, the myth and legendary standoff at the Pass of Thermopylae is classic-the daring do of the 300 Spartans that galvanized the Greeks to stand up against Xerxes and saved the motherland. No one expect much of a story-line from a movie such as this.

The blood and gore is reminiscent of Braveheart, Apocalypto and Gladiator except it comes in larger dosage and the whole movie is just action, action and action. But mind you, the gore and blood-letting gets downright boring after the second clash with the Persians.

The Council scene where the Queen implored the members to send troops to Thermopylae just does not jive with the fast tempo of the action and is a sheer waste of time. The love-making scene is also very hard and artificial which we could do without as well.

Good graphics.

Quote of the Day:

“In the business world, every one is paid in two coins: cash and experience. Take the experience first; the cash will come later.”

Harold Geneen

Heartsong

Selling Down the KPS Gravy Train

Easy come, easy go. The higher you go, the harder the fall. KPS was ramped up and then profit takers came in to sell it down the river from RM1.42 to RM1.09.

The logic is plain and simple. For a trade to take place, there must be a buyer and a seller. As for the buyer, he is either a person who ‘knows’ what is in store for KPS on the medium term or just another ignorant and greedy speculator on the make. It will be hard for the speculator who liquidated out of fear when the price slumped or when the time for payment comes and he has to let go. I believe that was what happened to KPS. Too many speculators had jumped on to the bandwagon!

KPS overshot its runway when it triple jumped from 92 sen to RM 1.12 to RM1.42. The current price of RM1.20 is about right and there was alot of buying support at the RM1.10 - RM1.14 level.

All morning, KPS was trying to find its legs. Initially,it seems as if there was no bottom. It was sinking lower and lower with each passing minute. Looking at the trend this morning, it looks like the support level will possibly be RM1.10. There was continuous heavy selling of KPS between 9.30 to 10.00 am. Force selling? Can this support price be sustained?

Thank God, the buying support came after 3 pm, and KPS went up to RM1.20 for a 9 sen gain. My reading is: If it can go up slowly from now on, picking 5 to 10 sen a day, KPS should go beyond RM 1.50 by the middle of April. Volume was heavy, beyond 70,000 lots.

I believe the buyers today are genuine and they are fundamentalists or know what is in store for KPS in 2007. As such, I will expect them to “lock up” KPS for quite sometime to await the “good news”. This will automatically cause a supply shortage which will then allow KPS to climb to a higher plane on a more sustained basis.

Market closed well today. We should see a better trading day tomorrow.

Quote of the Day:

“Love Thy Neighbour but don’t get caught!” Unknown

Heartsong

She’ll Be Coming Round the Mountain…

I really loved positive prediction and evaluation of Bursa. This morning, over the radio, I heard that the market’s support level is 1,220 and it may go out to as high as 1,260. Optimism is good but we should not go overboard. As whether it will reach 1,300 is anybody’s guess but it definitely will not be soon. Market ascent does not go up in a straight line. Like the experienced mountaineer, they rest at many point stations before they actually ascent to the peak. This is a good analogy to go by. In the event that prices do go up too steeply in a normal market, profit taking will come in naturally to level off any congestion.

KPS is one such stock. Its price went up almost 100% by the close of last week’s trading. Hence, this will be a week of base-building and consolidation. Weak holders will throw out their shares and there will be new accumulation at this level of RM 1.15-1.18. By 11.45 am, some 66,000 lots have changed hands.

Meanwhile, market rumour is that an international tender for the 44.6 km tunnel works for the Pahang-Selangor raw water transfer project could be called soon, as the Government plans for work to start in early-2008. This would be a positive development which could lead to the roll-out of other main packages of the estimated RM9bil project. KPS could benefit from the early start of this project as it is involved in some packages.

KPS ended down 11 sen to RM 1.11 after heavy unloading by speculators and weak holders. Volume done was 124,000 lots. Market was generally weak and ended down 0.57 points.

Let us hope there will be a change of mood tomorrow.

Quote of the Day:

“Happiness is an attitude. We either make ourselves miserable, or happy and strong. The amount of work is the same.” Francesca Reigler

Heartsong