Tuesday 6 March 2007

Closing, Tuesday 6 March 2007 - 1,130.96 (+20.27)

The market closed off its high of 1,137.82 today but many penny stocks and speculative counters closed strongly - at or near their intraday highs. Among the stocks I was monitoring - Symphony shot up 9cents to RM0.405 (+28.57%), Symphony-WA up RM0.06 to RM0.19 (+46.15%), Patimas up RM0.02 to RM0.16 (+14.29%) and Patimas-WA up RM0.025 to RM0.095 (+35.71%). I was tempted to go in several times during the day but uncertainty over whether the market was going to head lower in the afternoon kept me out. Eventhough the KLCI closed 7 points below its high, many retail counters were closing strongly so reluctantly I went in purchasing Patimas at RM0.155 and Symphony-WA at RM0.185 and RM0.19. Hoping that the DOW will rise tonight, tomorrow should have a relatively strong opening which would present selling opportunities if one would like to exit.

My point of view, Patimas looks like it's going to be the next IRIS. In 2005, IRIS rose from RM0.08 to RM1.38 - it was rumoured to be played up by Repco Low. Seeing that several directors wanted to sell their stake in Patimas to IRIS in exchange for IRIS shares, I suspect there may be some sort of link between these two counters. Patimas's NTA is RM0.16 and they have been making money every year up to the current year. I'm betting that if the market runs similar to that spurt in 2000 where the KLCI hit 1,000 points or pre-asian crisis times, there will be no counter under RM1. Seeing that this counter has positive NTA, has had a strong profit record and betting that the market will remain hot, it may be a long shot, but my "crazy target" would be in excess of RM1.

As for Symphony, this stock has been played to a high of around RM2.80 or RM2.40 a few years ago. The adjusted all time high is RM1.60 (taking into account share split etc). Potentially, I think Symphony can hit RM1. It reached a high of RM0.68 a week or two ago before the sharp drop in the market. The warrants expire in 2 years and have a pretty high exercise price. However, when the market is hot, logic is usually thrown out of the window - have a look at Insas-WA for example.

Anyhow, I reckon tomorrow's morning session will be up assuming the DOW closes in positive territory tonight. Hopefully our market will continue its uptrend soon.

Happy Trading!

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