Monday, May 14, 2007

Yongnam trading halt ; swiber excellent Q1 results

Yongnam declared trading halt today.

This evening announcement points out that yongnam decided to 120 million new shares at 0.33 (a discount of 9% of today's closing of 0365).

It's a mixed news, if I am to interpret it. From my experience, most shares that do share placement would experience a selldown. But some forum users mentioned that yongnam had a share placement in the past and it skyrocketed despite it. The share placement is used to generate more capital for the acquisition of land in m'sia and for the construction of a steel fabrication plant, with the balance for balancing accounts.

It's good news because they are using the capital raised for expansion purposes. But the market might not think that way. All shares placement penny shares have to be paid careful attention to. But yongnam had won contracts in dubai, together with pending IR annoucement, it might not be such a bad move. I'll see how tmr the market reacts to this news. Most stocks will move towards the price of the share placement, which in this case, is 0.33. I might sell off if the reaction is bad then buy back cheaper at 0.33. See how first. Technically shorting it, haha

Swiber had a wonderful earnings report for Q1 fy 2007. I sort of expected it because today swiber suddenly rallied up 0.14 to close at all time high of $2. From the $1.29 average buy price to $2, it certainly has come a long way. Revenue increase 205.8%, with new profit increasing 101.1% from Q1 fy 2006. Swiber broke out of triangle formatinon, so I guess we'll see more increase in price tmr. Tmr is not a good day to accumulate more swiber. I must remember NOT to buy it tmr!!

HSI had a splendid day, increasing +500 from the start. If and when china bubble burst, we are so going to experience the great depression. Hearing stories on how anybody just don't know anything and invest makes it all the more scary. They seem to believe that the govt won't let the stock market crash before beijing olympics next year. While, I do hope so.

I need to prepare myself for that scenario. Better start reading more on value investing. I believe that's the time to make my purchases on excellent valued stocks and hold for long. Still waiting for my book to arrive from US.

Gems TV is so going to be dead. Issued a bad earnings report and today it had a breakaway gap on the downside. This stock is shorted so badly that volume shoots to 0.12 Billion (from the average of 5 million). Went down 21.7% alone today. This is for educational purpose. Just like ausgroup, this is in the opposite direction - down.

Dow is up 25 points, europe mostly red