Titanic

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Composite Index

KLCI failed to hold firmly above 990 level yesterday and it is important that CI to hold strongly above 980 level in order to continue the bullish trend from here.

Composite Index

KLCI to monitor 994 for direction.

Doses of Venom

Einstein

www.hetemeel.com

Mobility is Key to Catch Fish

It is an amazing propensity of fisherman to take more than they need on a given fishing trip. Obviously, a fisherman does need to be prepared for any number of situations that could arise on the water. But many people forget that mobility is a key factor in catching fish.

If you want to catch fish efficiently, than you cannot wait for the fish to come to you. You have to ACTIVELY SEARCH FOR THEM, and eliminate unproductive water. This is the main factor that separates those that are catching fish from those that are waiting to catch fish. Read more...

Composite Index

KLCI to monitor 994 for direction.

Nanotech at full speed

Malaysia has launched its National Nanotechnology Initiative to intensify the country's capability in nanotechnology. The Deputy Prime Minister said the Government realised that the development of technologies such nanotechnology and biotechnology required extensive collaboration and networking with international partners and hoped that the setting up of the ICSU regional office here would serve as an important international link. Read more...

Nanotechnology Used In Thirty Billion Dollars Worth Of Goods In 2005
Products enabled by nanotechnology on the market today, ranging from antimicrobial refrigerators to drugs boosted by nanoparticles, carry an average price premium of 11 percent vs. comparable products. Nanotechnology is expected to be incorporated into $2.6 trillion in global manufactured goods in 2014, or roughly 15 percent of total output, Lux Research revealed in a report Monday. Read more...

Dr Hwang is Korea's highest-profile scientist and a national hero

Dr Hwang is Korea's highest-profile scientist and a national hero.
He said that he would continue in stem cell research, a field he has previously described as "an innovation that can do great things for the human race".

Stem cells, which can be manufactured in a laboratory, are a new frontier in medical science because they can be adapted to replicate and replace damaged cells. They are seen as a potential cure for diseases such as multiple sclerosis and devastating injuries including spinal cord damage. Read more...

Berjaya unit buys stake in StemLife

BERJAYA Corp Bhd, through its wholly-owned subsidiary Juara Sejati Sdn Bhd, on Tuesday and Wednesday bought 20,625,000 equity shares of bio-medical firm StemLife Bhd for RM12.9 million cash, or at an average price of 62.5 sen per share. Souce: Business Times

Composite Index

KLCI must hold firmly above 970.49 level or else we will see violent price action from there.

Composite Index

KLCI to monitor 970.49 for direction. Failure to hold firmly above this level is expected to see violent price action from floor traders.

Trading Idea - Leader

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Leader Universal is the largest single supplier of cables to Tenaga Nasional Bhd (TNB). Like any other cable maker, it works closely with its customers to make cables according to their customers' specifications. With TNB expected to favour drawing power from the Bakun Dam to Peninsular Malaysia via undersea power cables, speculation is that Leader Universal may figure in that scenario, too. Read more...

Technical Note: Leader (4529) to monitor RM0.5 for direction.

What We Think the Dow Is Worth Today

What the Dow's Worth
As of the close of business on Sept. 20, we estimated the Dow's fair value to be 12,623, about 8.7% higher than its actual closing price of 11,613 on that day. In other words, we think the Dow as a whole is roughly 9% undervalued today. It's worth noting that the market closing price on this date was less than 1% below the Dow's all-time high. Read more...

Composite Index

It is important that KLCI to hold firmly above the last breakout of 970.49 level or else it is expected to see violent price action if this level failed to hold! Happy trading.

Are Homebuilders Worth More than Book Value?

Earnings Quality
But a never-ending quest to feed the sector's voracious appetite for land eats up every penny (and then some) of all but a few builders' earnings year in and year out. In fact, over the past 10 years, the abovementioned five builders have collectively garnered more than $20 billion in net earnings, yet put out almost $25 billion in cash for inventory. The result is a cumulative free cash flow loss of a bit more than $1 billion over the period, not including contributions to joint ventures. Read more...

A new way of viewing house prices

It reveals that although housing is close to being its most expensive since before the crash in the early 1990s, it is nowhere near the level of unaffordability that would trigger a crash. The news will fuel speculation that prices have further to rise over the next year, although many experts believe price growth will drop later in 2007. Read more...

Composite Index

KLCI failed to hold firmly above 980 level yesterday. It is important that CI must hold strongly above this level for the bullish trend to continue from here.

Barefoot brokers are powerful in Malaysian market

KUALA LUMPUR, Oct 16 (Reuters) - The men who keep the Malaysian stock market ticking don't wear pin-stripe suits. Some of them don't even wear shoes.

"Tell Alan to close it at 1.24," a trader jabbers into a mobile phone as he pads around his mansion barefoot, clad in a tea-stained T-shirt and khaki pants.

The trader in the tea-stained T-shirt, who declined to be named because of the increased scrutiny, said he provides a much-needed service, saying the market would fall fast asleep without people like him.

"I'm a trader, providing liquidity for the market," he said. "Malaysia is not Singapore or Hong Kong. Here, there is too little money chasing too many shares. We are needed." Source: Reuters

Composite Index

KLCI to monitor 994 for direction but it is important that it can hold firmly above 980 level today (Mon) and tomorrow (Tues) trading.

NagaCorp to debut on Hong Kong stock exchange

The imposing Naga Casino looming over the Buddhist Insitute's facade

NagaCorp is offering 500 million shares, of which 450 million are to institutional investors and the balance to the public. Based on an offer price of HK$1.25 per share, net proceeds raised are expected to reach HK$546mil.

The listing price and allotment results will be announced on Oct 18 and dealing in the shares of NagaCorp is expected to commence on the HKEx main board on Oct 19. Read more...

NagaCorp bets on Hong Kong IPO
"Chen has big plans for NagaCorp. When his plan to inject NagaCorp into the FACB group was denied by the local authorities in 2000, he decided to find other ways to make it big for NagaCorp," said a source.

The local authorities had rejected Chen's plan to inject NagaCorp into the FACB group because the exchange's rules then declared such overseas operations out of bounds. Read more...

Tepid response to Cambodian casino offering
Philip Securities, which recorded HK$70 million worth of margin orders, said investors are reluctant to invest in NagaCorp given the political uncertainty in Cambodia. Read more...

Stemlife Bhd IPO (Mesdaq)

Stemlife Bhd IPO (Mesdaq)
Issue Price: RM0.33
Closing Date: 5 Oct 06
Listing Date: 17 Oct 06 (next Tuesday)
Fair Value - RM0.81 (SBB Securities)

If you have read anything about the science of stem cells you probably think that there is some potential for amazing scientific breakthroughs from this emerging science. This is the group of stocks that usually moves when there is news relating to stem cells in Nasdaq listing.

STEMCELLS INC (Nasdaq)
AASTROM BIOSCIENCE (Nasdaq)
GERON CORP (Nasdaq)
AVI BIOPHARMA INC (Nasdaq)
VIACELL, INC. (Nasdaq)

Composite Index

KLCI to monitor 994 for direction.

The life and numbers of Fibonacci

Fibonacci in nature
The rabbit breeding problem that caused Fibonacci to write about the sequence in Liber abaci may be unrealistic but the Fibonacci numbers really do appear in nature. For example, some plants branch in such a way that they always have a Fibonacci number of growing points. Flowers often have a Fibonacci number of petals, daisies can have 34, 55 or even as many as 89 petals! Read more...

Technical Note: 20 October 2006, this rally will be 89-day old. Can it extend its natural life beyond this date? Check the blood pressure for indication.

Zhang Ziyi & Shanghai Composite

Zhang Ziyi meets with fans in Beijing, sponsored by Maybelline - March 29th, 2006

Ziyi met with fans in Beijing at a press conference sponsored by Maybelline. Last year a similar event was held to celebrate Maybelline's 10th year of doing business in China, this year it was to introduce a new product called White Stay Mousse. Read more...


Technical Note: Shanghai Composite to monitor Zhang Ziyi fashion for direction based on Skirt Length Theory. Happy trading.

Trading Day

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For those who are new to ZenTrader Blog, this was reported on Monday, September 11, 2006 saying that: "Tebrau (1589) based on RSI analysis called for bullish outlook from here but it is important that it can hold above RM0.34 level." Check it out...

Note: My old master one day told me that if you have nothing new to tell people, tell them the old story. If you cannot see the future path, you study the historical pattern. Hope that you all like my analysis and also please come back here from time to time to read more about my Zen Prediction.

Composite Index

KLCI to monitor 970.49 for direction.

Really, Really Cheap Oil

Gasoline for $2? Michael Lynch says those good old days are just around the corner.

One last piece of hopeful evidence. Despite his rejection of psychology, Lynch does try to read the minds of large oil companies. Even after two years of high prices, he notes, they won't invest in a project unless it promises solid returns at less than $40 a barrel. That tells him that if the petrol giants thought oil prices were going to stay high they would hold on to more of their profits to invest in more exploration acreage and megaprojects. But they're not. This year ExxonMobil and BP will return to shareholders more than $40 billion in dividends and stock buybacks.

In Texas these days you still see bumper stickers on the backs of old pickup trucks that read, "Lord, just give me one more oil boom and I promise not to piss it away this time." Lynch says, "Now's the time to go long on bumper stickers and short on oil." Read more ...

Skirt Length Theory

Ziyi promoting Garnier in Shanghai: Ziyi in Shanghai on August 30, 2006 to attend a promotional press conference for Garnier skincare products. Garnier, a sister brand of Maybelline owned by L'Oreal, is intoducing their products into China and Ziyi was chosen to be their spokeswoman. Read more for latest trend in China ...

There is a theory, appropriately known as the Skirt Length Theory, which looks at the length of hemlines in relation to how the stock market is likely to perform. The theory here is that skirt length can be a forward predictor of stock market direction. In a nutshell shorter skirts mean that confidence within the economy is high. Furthermore this excitement and over exuberance could well overflow into the stock markets and lead to unbridled bullishness. The downside to all this is that longer skirts are an indication of gloominess and that the stock market could be heading south. More...

Gauging stocks by the "curve"

The economic outlook is a key factor for stock investors, and many market players will tell you to look at the slope of the Treasury yield curve if you want to know what the economy might look like down the road.

Over the last 50 years, the yield curve has inverted nine times, excluding the current inversion, according to monthly interest rate data from the Federal Reserve. A recession has followed within a few months of eight of those inversions. MORE...

Composite Index

KLCI to monitor 970.49 for direction.

Housing market worst may be over: Greenspan

Greenspan said the fall of communism, not sharp interest rate cuts by the Fed, was behind the housing boom in the early part of the decade. Cheap labor flooding into the West after the fall of the Berlin Wall had a disinflationary effect, causing bond yields to fall and house values to rise, he said. Source: Reuters

Stemlife Bhd IPO: Subscribe - prospects look bright

Issue Price: RM0.33 (Mesdaq)
Closing Date: 5 Oct 06
Listing Date: 17 Oct 06
Fair Value - RM0.81 (SBB Securities)

Dividend likely to be high. The management guidance pointed to 50% dividend payout ratio going forward.

Valuation. The stock is fairly valued at RM0.81 based on a Discounted FCFF three-stage growth methodology at a WACC of 16.09%. We have opted to value the stock using this method given that the group is relatively young and it is growing at a relatively high rate (the stem banking industry in Malaysia is estimated to grow at a CAGR of 33.8% from 2005 to 2010). Read more ...

Composite Index

KLCI failed to hold firmly above 970.49 level so the breakout was invalided but this breakout move provided good informational value to traders. CI will be more trending if it can push & stay above 974 level.

2009 Corvette Stingray

The large hood bulge you see is rumored to be concealing a supercharged 6.2-liter V-8, and packing upwards of 650 horsepower. This engine will likely use an integrated intake-manifold intercooler and should sprint from 0 to 60 mph in less than 3.4 seconds. Car&Driver

The Cycle of War

Back in the 1930s, President Roosevelt asked a professor by the name of Edward R. Dewey to study the Great Depression. Later, in 1942, as the United States was plunging full force into World War II, Dewey began the Foundation for the Study of Cycles, with a focus not only on economic ups and downs but also on the cycles tied to domestic and international armed conflicts. Read more ...

North Korea claims nuclear test
North Korea said in its official media it had carried out an underground nuclear test on Monday. The official KCNA news agency said the test was successfully conducted at 10.36am (1136 AEST). "The nuclear test was conducted by 100 per cent of our wisdom and technology," it said, claiming there was no danger of radioactive leaks. Read more ...

Banking on a land boom

"It's all very unusual," he says. "We don't know what their plan is. And I'm concerned about the expectations of those who are investing in this land and what they expect the returns might be." Read more ...

Composite Index

It is important that KLCI to hold firmly above 970.49 level today (Monday) and tomorrow's (Tuesday) trading.

Speculation on Gold and the Credit Cycle

The fact that there is more General Motors paper outstanding than five years ago is not due to GM's improved credit standing or a heightened level of expectations for returns. Obviously, the reality is quite the opposite. A most useful objective measure of credit excess (and fantasy) is the ratio of the Dow Jones Industrial Average to the price of an ounce of gold. The DJII traded at 40x the price of an ounce of gold in 2000. Today, that ratio is 24x. At the bottom of credit cycles in the previous 100 years, that ratio was more or less 1x. A rising gold price merely anticipates future downgrades in financial assets of all stripes, including equities, debt, and currencies.

The shift in the global balance of power is perhaps reflected in the futile calls by US officials for Chinese revaluation. With deaf ears to the administration, the Chinese will act according to their own timetable. If our administration's influence on the matter of dollar valuation is as scant as it appears, then what is our currency really worth? In fixing the value of the renminbi, the Chinese control the terms of the relationship. It is not the place of the debtor to dictate terms to the lender. The end game is clearly a significant devaluation of the US currency, but against what and when? Read more ...

Trading Idea - Redtone

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KUALA LUMPUR, Sept 27 (Reuters) - Malaysia's Redtone International Bhd (RTON.KL: Quote, Profile, Research) said on Wednesday it had no firm plans to list certain subsidiaries of the group.

The Sun newspaper had reported this week that Redtone might list its Travelfon Service unit within three years. Source: Reuters

TravelFon to ring in changes at REDtone
If one believes the consensus price target of 84 sen for REDtone International Bhd, the stock is offering a 20% upside potential at last Wednesday’s 70 sen close. But those who believe in the upside potential seem to be in the minority. Apart from the Kuok Group — whose unit paid 67 sen apiece for most of the 8.1 million shares sold by T Rowe Price Associates Inc on June 1 — it seems that there are hardly any takers for the stock these days. Read more ...

Technical Note: Redtone (0032) to monitor RM0.52 for direction.

The Echoes of War

Some historians have labeled the Russo-Japanese War as "World War Zero." The war was, in many respects, a dress rehearsal for the Great War (World War I) that would break out in 1914.

There was abed in this Japanese hospital a badly injured man. His head and upper body were wrapped in bandages. Japanese doctors had recently operated on him to remove a plethora of steel splinters, the residue of several massive explosions that the wounded soul stood too near. The title and name of this man was Rear Adm. Zinovy Rozhdestvenski (1848-1909), most recently the commander of a massive Russian naval fleet called the Second Pacific Squadron, most of which was now sitting on the bottom of the Sea of Japan off the island of Tsushima. Read more ...

Note: According to this article, Japanese engaged in this final conflict with Russian with the desire to end the war but somehow American played a wrong role and this war became not the final one but the new chapter of a bigger WWI! Nice article for your weekend reading.

Composite Index

Major oversea markets mostly hit new high on expectation that US Fed will pause or even reduce its key rate but for the same reason our local Bursa Malaysia has been victimized by this move as it will narrow the interest gap and reduce the expected return on RM investment. KLCI to monitor 970.49 for trading direction.

Composite Index

KLCI to monitor 970.49 & 957.08 for trading direction.

The Dot-Coms in 2000 and Housing in 2006

The FOMC pause in its series of rate hikes most likely signified that the period of rising rates has ended and that the next move will be one of ease. If we are correct in this assumption, it means that we are now in the period between the last rate increase and the first decrease. This has typically been a period where the market collapses as the focus of investors shifts from rising rates to a weakening economy and lower earnings. We think this process is about to begin. Read more ...

Why Today is Signaling Sell

Stock markets are sending out a major sell signal. Although CNBC is reporting that the Dow Jones Industrial Average (DJIA) is making new highs and investors are encouraged by the slowdown of inflation, further inspection shows that we are days away from the end of the bull market that began in 2002. Considering the positions of the other major indexes, the technical characteristics of the DJIA, and an extreme in sentiment, investors would be wise to sell their positions and preserve their assets. Read more ...

Automakers face wide profitability gap

DETROIT (Reuters) - U.S automakers face a widening gap in profitability per vehicle compared to their major Japanese rivals because of missed design opportunities, heavy discounting and high labor costs, a study released on Monday said.

The study found that General Motors Corp (GM.N: Quote, Profile, Research) lost an average of $1,271 for every car and truck it sold in North America last year.

By contrast, Toyota Motor Corp (7203.T: Quote, NEWS, Research), which is on track to overtake GM as the world's largest automaker by volume, made a profit of $1,715 per vehicle on average. Read more ...

Composite Index

KLCI to monitor 970.49 & 957.08 for trading direction.