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

Friday, January 15, 2010

Rubber declines, Steel reverses gain. Property Stocks

This is a rotten day for rubber stocks. There was heavy selling pressure since yesterday on news that most of the stocks were overpriced ahead of their 2010 earnings and overbought above RSI 90. I sold all my holdings of Adventa since yesterday.

Steel stocks reverse their recent gains.
Kinsteel ralied from RM1.01 to closed at RM1.08 yesterday, reached a year high of RM1.16 today but reverses back to close at RM1.08
Kinsteel has advanced 20% since I bought it at RM0.96
Both Ann Joo and S. Steel both in the negative range today.
Look to add S. Steel when it retraces. Similarly for Leader. Both have impressive earnings.

Sunway has ran ahead of its 2010 earnings ( last Q eps 3.3 sen so my fair value RM1.32)
Looking at IJM (my preference)and Gamuda potential job awards in 2010.
HunzaPty ( Q eps 8.8 sen ) share price has surged to RM1.80 since I picked it at RM1.60 last week
BRDB (Q eps 8.6 sen) hasn't move yet.

Property stocks with fair value range of RM 1.50 to RM1.60 range, in my opinion:
Mah Sing ( Q eps 3.73 sen ), IJM Land ( Q eps 3.8 sen )
In the fair value range of RM1.30 to RM1.40 - > Glomac ( Q eps 3.26 sen ), Sunway ( Q eps 3.3 sen ), IGB ( Q eps 3.45 ) YNH Prop ( Q eps 3.56 sen )
In the fair value range of RM1.20 -> DNP ( Q eps 3.16 sen )
In the fair range of below RM1.00 -> E & O ( Q eps 1.62 sen )

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