Monday, 26 March 2007, 1,244.32 (+8.67)

The market has resumed its uptrend over the past week of trading. The KLCI is now trading just below the psychological resistance of 1,250. Surpassing this level would be essential to bring further confidence back into the market. Many speculative counters are seen to have returned to their levels prior to the drop in the market a few weeks ago.

(Source: biz.thestar.com.my/marketwatch)

In my view, the KLCI is moving up on "wave 3" following a much needed correction since the end of February. I think following the past week's worth of market friendly news which included the abolishment of property capital gains tax investors have returned to the market. Several property counters including GUOCO have made significant gains over the past week or so. I'm confident the KLCI will surpass the 1,250 level soon and will head towards the 1,280-1,300 level in the coming months.

Patimas

Patimas has bottomed out around RM0.14-RM0.145 level and I do not think the counter will trend lower than this level in the near term. Over the past week it has hit a high of RM0.165 and some parties were seen to be constantly taking 1 lot over a period of time which possibly indicated the presence of a player in this counter. Towards the end of the day, there is usually some selling and a block of shares that prevents the counter from closing higher. In my view, the accumulation is still on-going and the counter will move when the players are ready and so long as the market remains hot.

Initial target : RM0.24-RM0.25

Dreamer's target : RM1

Rapid Synergy Bhd

I've noticed that Rapid rose 9 cents today. Recently it rose to RM2.06 (5 march 07) before dropping back to RM1.10 2 weeks later. I think this counter is worth taking a look at as I'm sure the players will push it back to above RM2 if market conditions are good.

2 cents:

Buy, Target RM2.

Current Price: RM1.25

Kumpulan Europlus & Talam Berhad
Kumpulan Europlus rose to RM0.885 (+RM0.105) today whereas Talam traded at RM0.355. These two are related companies and my opinion is that Talam will soon trend up to RM0.50.


2 Cents:
Buy Talam, Target RM0.50.




Pilecon Engineering Berhad
It looks like Pilecon may have started to move after a long slumber. This used to be one of the darlings in the 90s rising from RM0.50 to around the RM5. My 2 cents is to buy at around current levels for initial target of RM0.50 and dreamers target of RM1-RM1.50.


2 cents:
Buy Pilecon, Target = RM0.50
Dreamers Target = RM1.00 - RM1.50.



By the way, I do not hold any of these stocks besides PATIMAS. These other stocks are based on my monitoring of the market over time. Keep in mind that "Price has Memory"!

Good luck and happy trading!