Tuesday, June 19, 2007

Construction stocks sector play

Today most of the construction stocks rallied strongly. All 3 of my construction stocks reached a new level of price, with CSC at 0.415, Yongnam at 0.430 and Lian beng at 0.405. All of them more than broke even (slightly deep in profit) when I bought them in April/May period.

Yongnam rose a lot today after goldman sachs released a very positive research report on it. Last Fri's analyst briefing is actually for goldman sachs, hmm.. They raised the target price for yongnam from 0.430 to 0.460, citing high chance of snagging steelwork and strutting contracts for the IR (>50% of the contracts are believed to be awarded to yongnam, wow...) and more contracts in Dubai. Should be award in Aug/Sept period.

Pls read the full report here: http://www.remisiers.org/research//YongnamGS19.06.07.pdf

Their report gave me great confidence to invest more into Yongnam. I always like yongnam because it had great presence in middle east. Local construction works can only get you so far, you need to venture overseas for the branding and the exposure for bigger contracts. This would provide good relief due to the cyclical nature of constructions sector here. The report also cited government pushing for more steel construction rather than reinforced concrete, to prevent over-reliance on sand. This can only be good for yongnam. Demand had been so good that they even set up a steel fabrication plant over at M'sia.

Too bad it didn't go around 0.385, otherwise I would have bought another batch of yongnam as I've mentioned in previous postings. Never mind, chance would come again when irrational Mr. Market is in bad mood. In the meantime, wait and do nothing.

Yellow page had something some positive news. They are collaborating with nokia to deliver localised search content with nokia handphone users. I think it's something like a platform where nokia handphone users can conduct local search using Yellow pages expertise in the directory services. Something like their internet yellow page but on nokia phones. I don't know if it'll be worth a lot of money, but it'll certainly create brand awareness and at least people would know yellow pages had gone from their thick thick books to internet. Good news!

Swiber slided down but recovered to close pretty well. I guess the hype over this stock is over for now (which is good!!). Too fast and too soon is not good for anybody. Let the price consolidate first, build up a strong base, then we can continue the upsurge. Still damn pretty good stock.

Cosco too...always regret why I didn't buy it back at 2.60 something. Went up 0.140 today with rumors flying around of another contract awarded. Crazy...everyday also got contracts won for cosco.

Amara surged up 0.020 today, haha, too bad didn't buy. Charts are still very nice.

I think tmr Pac andes will XR (ex-rights) already. I'll wait for them to send me the rights offer. I'm only eligible for 4 lots more, since I've got 4 lots holding at today's book closure. Heard there's an option to buy more rights too, which I'll do too. See lucky enough to get more rights at 0.52. Might see Pac andes shares drop a lot tmr to take into acct of the rights issue.

Here's my plan:

1. Look out for chances to go into yongnam. I'll buy near support level when overall market sentiment is bad. Add in another 5 to 10 lots.

2. The rest....hold and hold for dear life.

Hopefully my strategy can help me to break off my losses by end of this year. I was hoping to reach total portfolio losses to 15k by end of this year. Already achieved. Now for the magical 10k losses benchmark. See how long it'll take :)

Dow futures -5, europe mainly red.