Remember the LORD for it is he who gives you the ability to produce wealth and so confirms his covenant... Deut. 8:18

Thursday, October 22, 2009

Kinsteel catching up

Traded 2 counters: Kinsteel (steel sector) and Supermax (gloves/health sector)..

Masteel had some positive news on Tuesday and its share rose above RM1.00 from around 93 sen. In my previous posting, I had pointed the highs and lows of several steel companies counters with their ratio on the current share prices. I remembered Kinsteel at previous year high of RM1.80 and Masteel at RM1.30.

So I figure that Kinsteel at around 95 sen will play catch up. And it did....! Kinsteel have more upside in its share price considering that its fair value at 82 sen and will probably get a re-rating from analyst. Watch Kinsteel prices compared to Masteel.

Similarly Southern Steel (laggard) is playing catch-up with Ann Joo Resources. If memory serves me right, previous year high of Ann Joo was RM4.20 with Southern Steel at RM3.80. You might want to consider grabbing Southern Steel shares (still cheap) before it does catch up Ann Joo's.

There's another similarity in share prices currently between Lion Ind and Perwaja although Lion Ind previous year high above RM4. Knowing all these may help you spot some winners.

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