Stock Pick: 15%-20% potential upside

APB :
Share price well maintain at RM1.20. Good entry at 1.18-1.19 level.
Accumulate and wait for 3-6 months for next financial result.

COCOLAND
1. Healthy balance sheet with improved earning.
2. EPS - appro. 14 cent
3. Good entry at 1.26-1.35 level.

AFFIN
1. Two reserach hourses give TP of RM300-3.25 level
2. Share price maintain at 2.55 level
3. Accumulate at 2.30-2.50 level.

GOLDEN AGRI-S'PORE
1. Profit taking started from SGD0.65-SGD0.58
2. Start to accumulate - below SGD0.53

China Market- Any Adjustment?

China government may increase its interest rate again if the economy is over-heated. The market will adjust according and I think 10% adjustment will be a comfortable level for post financial crisis. Therefore, whenever any adjustment take place, remember to seek opportunity to enter the market.

For mid-to-long term investors, defensive and high dividend yield counters will be able to cushion any downward adjustment.

Recommended sectors:
1. Banking
2. Infrastruture
3. Consumer Product
4. Commodity

HK Market...Any opportunities?

Watch out for following counters if you want to take advantage on HK market.

1. ICBC Bank - HKD 5.90 ( trading buy @ 5.80-5.60 )
2. BOC - HKD 4.00 ( trading buy at 3.80-3.60 )
3. Hopewell - HKD 5.00 ( accumulate at 4.80-4.60 level, TP 6.00 )

WHY Hong Kong?

1. Liquidity - the turnover is 38X more than M'sia n market
2. Volatility - able to take advantage on the price fluctuation.

Golden Agri..Profit Taking?

The share price hit highest @ SGD0.655 on Monday. Suggested client to sell atleast 50% of the holding. Waiting for the right timing to re-enter again.

Entry point : Level 1 : SGD 0.55 #
Level 2 : SGD 0.50 #
Level 3 : SGd 0.45 #

Today Golden Agri closed @ SGD 0.59. If CPO price continue to drop, I think the share price may go down to the suggested entry price#.

CPO Invenroty increase to 2.2million tonne

With the increase in inventory level, the CPO price can not hold firmly at 2600 level. The CPO price may trading downward toward RM2350 level if the following happen:

1. export figure decrease
2. production increase

However, the CPO price may rebound back to 2600-2800 in the event the existing cold whether persist and production from other seed oil decrease.

Sort Term Trading Strategy:

Long : Level 1 : 2480
Level 2 : 2430
Level 3 : 2385

Short : Level 1 : 2550
Level 2 : 2580
Level 3 : 2625

Golden Agri and CPO Counter...CNY Ang Pow

Recap on BUY CALL on this counter on 18 Nov 2009 (SGD 0.46).


Today Golden Agri closed at SGD 0.575 ( up by 25% in less than 2 months ).

Looking at CPO price may continue its upward trend toward Feb 2010, Golden Agri may extended it movement and try to break SGD0.60 level and go higher toward SGD0.70-0.75 level.

CPO price has been moving firmly from 2200 level in October 2009 until now 2700 level (up by 22%). I believe most of the plantation companies will report better quarter result. Therefore, for those looking for CNY Ang Pow, you may try plantation counters.

Tier 1 plantation counter: RM1.00+/-
1. CEPAT-RM1.00
2. TANAMAS (GLBHD)-RM0.92

Tier 2 plantation counter: RM2.00-RM4.00
1. IJMPLNT-RM2.57
2. KMLOONG-R2.20
3. BSTEAD-RM3.46

Tier 3 plantation counter: RM4 and above
1. GENPLNT - RM6.40
2. UMCCA-RM7.96

Risk to the above suggestion: crude oil and soybean oil prices drop sharply.