One word, bad.

As the share price is plunging, who want to buy those right issue? that's why they are keep on delaying it.

Btw, my speculation that TMI recent rise may due to some party (including underwriters) intention to push up the price so that right issue can be proceeded, if share price dropping too low, right issue is difficult to place out.
They will try to maintain its share price as long as they could.

Fyi, dividend has been proposed (4 cents) when its last reporting its 4th Q result. Just it need to go through the paper work for the dividend payment date only which will be announced later on.

Unless company make a U-turn to reject its own dividend proposal.

KLK suddenly some fella come out to sell few thousand lot, surpress its share price from origin 10.60 to TCP closing price of 10.00.

The toxic assets will fall into the hand of gov or tax payers not investors, aka good for financial shareholders.

The move is no different what Malaysia was doing by setting Danaharta to acquire those foreclosured/seized properties under bank so that banks' balance sheet become cleaner and start lending again back 1998-1999.

Having said that, the toxic plan is baked into and already anticipated by the market already, don't surprise market behave "buy on rumour, sell on news"

This post has been edited by cherroy: Mar 23 2009, 10:15 AM

Tomorrow UMNO assembly start, all PLC (political linked counters) are being chased upon.

Good excuse for some gorenging, whether you will be gorenging or be gorenged, much depended on market force/sentiment and your timing of it.

Market is seeming very active, keep blinking here and there. So long haven't see this kind of blinking blinking page already.

7900 for DJ is a strong resistance level. 800 for S&P.

Locally KLCI 880-900 is a strong resistance level.

Without breakthrough with convincing volume, too early to say it is a real rally. We are still in bear market rally, which happened to be bear market rally is much violent and swing more than ordinary real bull run rally.

But I do see some parties are trying very hard on TMI because of right issue.

Next month for 1Q result should be pretty ugly across, but market is anticipating it.

So many plan has come out, why this toxic plan is so special compared to previous TARP or stimulus package? or after that the exciting feel still will just disappeared again just like previous plans?
Only time will tell.

I feel uneasy about the oil price approaching USD60. If inflation is revived before economy recover, it can kill the confidence again.

Bull will surely re-emerge one day, which I am 99% sure of it. (particularly based on experience)

We won't forever in recession, economy will bounce back once confidence is rebuilding. Just like what had happened on Asian countries back 1997.

But confidence is not built overnight, it is a slow process. We might get huge bounce based on some good news in intermediate from time to time, after sliding too much, but this excitement could be awhile then market moves sideway for awhile, before real bull finally emerging.
In the process, it could take year or years.

Do you believe economy and stock market will go up straight away because of xyz, abc plan like nothing has happened after we had some crisis the may be happening once or maximum twice in our life-time? I have a hard time to believe it.

Although downside room somehow is rather limited now, because too much money being injected into the market, while with the like even long term US treasuries yield is going down because of Fed's move, money is simply nowhere to go. That's the primary support of currency stock market, unless the company goes under which is different story.

Don't get me wrong, I feel bullish about stock market because stocks are worth to get right now especially with FD rate so low. But I won't believe this rally can go very far.

I still prefer my plan of nibbling a few in between from month to months.

Just my view and opinion.

Futures turning red!

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Added on March 24, 2009, 10:09 amMassive profit taking is going on despite overseas market hold up pretty well.

This post has been edited by cherroy: Mar 24 2009, 10:09 AM

Walau so low price the right issue.

Somoremore 5:4. Bad for dilution and number of outstanding share out there.

Until political scene finally settling down, (UMNO issue, PM transformation and cabinet reshuffling) FF won't be come in in a significant way nor fund managers dare to pour in big even if interested.

That's why we see mostly penny stocks are moving big due to retail interest and goreng syndicate around.
If you are a real pure fund manager (not those EPF, PNB one), you will sideline until political issue settling down, before moving in big.

If other regional bourses have no political risk while Malaysia has, then which one will you (if you are a FF manager) go then?

It could be "V" shape but it could be "M" shape as well.

It just mean investors are still not confidence which there are more retailers compared to fund managers are buying into the market at the moment.

Another point is that I don't see why market should go all the way just with a toxic plan announced. It can help to cure the financial mess, but it is not an instant miracle medicine.

Do company instantly getting lot of orders from overseas because the toxic plan? No
Do people get more job and unpaid leave is cancelled because of toxic plan? No
Do most people (especially electronic related) work 5 days as usual compared to 3/4 days per week because of toxic plan? No
Got OT or operators? No.

They key turning point for the economy and stock market (which usually ahead of economy 6 months or earlier) is job creation and spending power. If you don't create more job and more income which increase the spending power, those goods manufactured by factory has nowhere to go. Eventually corporate profit won't be improving so does stock market which is basically rely on corporate profit level to determine its share price.

Don't get me wrong, the plan is positive for economy and financial market. Just like I said before, the plan is good for financial company shareholders, bad for gov and taxpayers, even if it is a good plan, it is not an instant 100% surely will work.
You know confidence is something a very strange thing, sometimes, it works, sometimes it doesn't, very hard to explain. But destroy it, just matter of split second, or a few event then takes years for re-building.

Basically, the whole world need to build up confidence to spend again but not on leveraged spending just like 2-3 years ago. Now we know previous few years of spending and economy growth especially in US is just a smoke in the air, it is not real, but build on leverage which is not sustainable.
Now we just to go back the rebuilding.

Mesdaq counters are genereally highly being manipulated. TA is useless.

Mesdaq counter, sometimes, I find it just like a joke, a few hundred thousand revenue/turnover for a quarter, which cincai company outside there also have lar. Even Kopitiam business also can achieve it.

Any buyback program need to seek for shareholders approval, but it will expire after a year or so, after expired, it just renews and seek shareholders approval again.

Whether they actually implement the buyback from the market, it depended on company wish. They can buy zero share in between as well.

It has no effect on the market with this kind of news.

Now you only notice ar?

I put a funny scenario (which is happening in real life, surely not all case is like that, if you monitor it long enough)

When share at 3.50, TP 4.00,
recommendation: buy

When share at 2.50 TP 3.50
Recommendation: buy

When share at 2.00 TP 3.00
Recommendation : buy

When share at 1.50 TP 2.00
Recommendation : hold

When share at 1.00 TP 1.00
Recommendation : sell

Then share bounce back from 1.00 to 4.00 after new bull run emerge after years time.

No doubt, it is a good number, but need to look at overall perspective. A lot of people don't mention the second part of the report
qouted from CNBC news.


Number of house sales going up, but price going down. Just mean like supermarket putting mega sales, then people are flocking to buy, but actually people will continously to do so if price doesn't go down, still to early to tell. You surely will see lot of people when there is a mega sales going on in supermarket. But after the mega-sales, people still go shopping, nobody knows.

Without job creation or income increasing, people cannot afford to buy more houses.

Key situation is always job and income, which is the basic of any economy.

For UMNO election, recent result just means there are some political risk.

NJ may not be get what he wants in the team, especially for second post and deputy chairman post. Yesterday result shows that it is far from conclusie especially the Youth post.
If his prefer candidate are not elected, then he may have problem in cabinet reshuffle.

Let wait and see how this political scene evolves.

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Added on March 26, 2009, 10:13 amThere is one bad news in the market, Maybank and TMI combined right issue will mop up 10 billion liquidity from the market.
As reported, EPF and Khazanah will take up significant chunk in it. So EPF might not buy a lot in the market for near term.

This post has been edited by cherroy: Mar 26 2009, 10:13 AM

If it happens, it is not favour to the stock market at all.

Stock market doesn't want to see is political instability especially in a poor economy condition

Holland and England is nearby only. So slight out of course, go to wrong place.