SAAG is sagging. It is quite notorious for 'goreng'. Those trapped should average down if it falls by much but must cut it off when it rebounds. All in all, its outlook is far from clear, just like the case of KNM.

RM20m sales for 1 quarter is a dangerous sign. It may be a deep end of this cyclical stock before recovery but it may also be a start of something of a same when contracts are not replenished in any meaningful sense. At 18sen, there is no doubt you should cut and run. Re-enter at lower level.

SAAG main shareholders have the habit of repeatedly doing share split, right issues, bonus issue, convertibles debt, private placement.

Besides, by telling other shareholders theoretically the company has projects to be busy on but in practice hasn't sufficient funds to take them on, it highlights a fact that the Company's cost control, project management and stragtegic planning has been poor. Having assets but no cash means assets (espeically those current assets) may be inflated beyond their fair value.

Like what KNM is facing, the oil industry's rules of game have changed. Big projects and big margins have been gone for quite a while. BRACE, BRACE.