Sunday, 10 July 2011

Gossip - Merger of Kencana and SapuraCrest

Hope that with news below, our "SAPCRES" would be rocket high on tomorrow market... Let's the party ROCKs...

Kencana, SapuraCrest merger to have RM10.87b market cap

Written by Surin Murugiah of   
Monday, 11 July 2011 10:41

KUALA LUMPUR: KENCANA PETROLEUM BHD [] and SAPURACREST PETROLEUM BHD [] could be looking at a merger in which shares of both companies would be absorbed by a newco and shareholders of the both the entities will get shares in the new company.
The merger would see  the combined entity having a combined market capitalisation of more than RM10.87 billion, based on the pre-suspension prices.
Trading in the securities of Kencana and SapuraCrest had been halted from 9am to 5pm on Monday, July 11 pending a material announcement.
In separate announcements to Bursa Malaysia on July 11, the two companies said they had requested for a trading halt in their securities.
Both the companies said they had received letters from Maybank Investment Bank Bhd and CIMB Investment Bank Bhd on behalf of Integral Key Sdn Bhd (IKSB) informing it that IKSB was proposing a corporate exercise involving Kencana and SapuraCrest.
Kencana and SapuraCrest said full details of the corporate exercise would be announced in due course.
Kencana was last traded at RM2.80 while SapuraCrest closed at RM4.49 last Friday.

Maximise the profit with Trail Stop Loss

I found most of the traders have no problem in enter the market. But, they do face difficulty in determine the exit price.

Bearish Market:
For traders who has locked in the counters at early stage, here is the hard time for you. How to make a judgment call towards a reasonable exit price is very critical. Few important considerations as below need to put in place before the decision is made.
1. How to cushion your hurt and protect your capital if the price continue to go down.
2. How to derive a good exit price by not getting confused by the price fluctuation "noise" -- Price re-bounce after your selling order just filled.
I believe most of the traders do have similar experience that they would continue to hold the counter when the price go down with hope that it would re-bounce. However, most of the time the price would continue to getting lower and lower.

Bullish Market:
"Life is like roller coaster"! Similar, this happen in stock market market as well. During bull market, trader normally would lock the price at a lower price. However, they would still face the difficulty in deriving a good and most profitable exit price.
1. Trader few regret for not patient enough by executing profit taking at a lower price compared to "tomorrow".
2. Traders are too greedy to keep waiting and waiting with the hope that the price would continue to break historical high price. However, stock market is full or uncertainty that the price might collapse in the next second and all the profit that you have made might be vanished. Always remember that, "Mr.Bull climbs the steps while Mr.Bear jumps out from the window"

Thus, it is critical to master the skill to derive a good exit price in order to protect your capital as well as maximize your profit. I had found a good training material pertaining how to create a good stop loss thru "Trail Stop Loss" strategy.

Enjoy the Video Clips below:


I hope this video clips is useful and could help to maximize your profit and at the same insurance your capital well!

Case Study - TRC

1. Trend Analysis : Uptrend (Bullish)
2. Candle Stick: Doji testing resistance 1.84 (Undetermine)
3. ADX: Uptrend with strong momentum (Bullish)
4. MACD: Bullish Kissing (Bullish)
5. RSI: Break 50% (Bullish)
6. Sto: Bullish crossover with signal line touch 80% (Bullish)
7. Volume Distribution Analysis: Selling force is high (Bearish)

Conclusion: 5 Bull 1 Bear 1 Neutral

Entry Price: 1.84
Profit Taking: 1.87, 1.94, 1.98
Cut Loss: 1.74

Case Study - FAVCO

Per King's request as below:

1. Trend Analysis : Uptrend (Bullish)
2. Higher high formed (Bullish)
3. Candle stick: retrace after hitting resistance (Bearish)
4. ADX: Bullish with weak momentum (Bullish)
5. MACD: Bullish
6. RSI : Belwo 30% (Bearsih)
7. Sto: Crossing towards 20% (Bearish)

Conclusion: 4 Bull 3 Bear

Entry Price: 1.53
Profit Taking: 1.63, 1.78
Cut Loss 1.38

Case Study - Air Asia Retrace and Rebounce from Support?

Per your request on Air Asia:

1. Trend Analysis : Uptrend (Bulliish)
2. Form hihge low and higher high: (Bullish)
3. Candle Stick Analysis: Hammer at support - potential bullish reversal --> pending confirmation (Undetermine)
4. ADX: Uptrend with good momentum (Bullish)
5. MACD: MACD line and signal kissing - pending confirmation if bear or bull (Undetermine)
6. RSI: Reside on 70% - pending confirmation (Undetermine)
7. Sto: Cross below 80% and heading to 50% (Bearish)
8. Volume Distribution Analysis: Selling force is high (Bearish)

Conclusion: 3 Bull 2 Bear 3 Neautral

Entry price: 3.50
Profit Taking: 3.63, 3.87, 4.04
Cut Loss: 3.44

Remarks: From volume distribution analysis from past 5 days, it appears distribution is in progress by SM. For those who would like to enter this counter, please be caution. We will monitor the volume distribution every night after the trading session to analyze if any sign of big shark coming back to accumulate the stocks. Most importantly is to wait for tomorrow confirmation see if the counter able to re-bounce from support.

Case Study - Ulicorp

1. Trend : Uptrend (Bullish)
2. Forming higher low (Bullish)
3. ADX : Above 40 -- Oversold, +DI is above -DI --> Uptrend with strong momentum (Bullish)
4. MACD: Potential bullish / bearish crossover 4G1R (Bearish)
5. RSI:  Maintained above 50% (Bullish)
6. Stochastic: Break50% with bullish / bearish kissing (Bullish)
7. Symmetry Triangle Pattern: if breakout with TP (1.69)
8. News: ULICORP worth 2.12 per shares...
9. Volume Distribution Analysis: Big sharp is buying close to market end (14:00-15.30 time frame). Sell force are mainly from small retailer.

Conclusion: 7 Bull 1 Bear 1 Neautral

Entry price: 1.23
Profit Taking: 1.31, 1.44, 1.52, 1.67 (TP)
Cut Loss: 1.1