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2008-10-09

KNM is on the way down



















KNM share price is on the way down & short selling still going till now, look like the bounds back to RM 1.24 from RM 1.10 is unlikely to happen.

From the chart, KNM prices is going to hits below RM 0.90. However, ever time KNM hits new low, vol is high on the day and the vol transaction is big ( > 150K unit in single transaction ) someone is buying in big vol. KNM is a strong company with NTA RM 1.34 and KNM boss is holding around 20% KNM share.

When this market situation end, I think KNM will have high posibility to bounds back to NTA price eazyly. For now it is not the time to go in, I just sale out my KNM share that buy on 07 Oct 08 at RM 1.04 with a loss of RM 0.05. Will buy in again when it hits RM 0.90.

1 comments:

YC Tan October 16, 2008 at 10:22 AM  

KNM is really a good fundamental shares.
Using Rule#1 Method by Phil Town (follow Warren Buffet), the Sticker Price (Worth of Share) is easily RM1.60. If you apply Margin of Safe (use 50% price), then the price to go in is RM0.80. The EPS and ROE of shares are very impressive (30% to 15% growth). Chance to keep the shares for few years to make money.

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My investment with RM5,000 initial capital have been growing since 2005.I found the stock market appears confusing and complicated, but it is most definitely based on logic "supply and demand". However, the laws of supply and demand as observed in the markets do not behave as one would expect. To be an effective trader, there is a great need to understand how supply and demand can be interpreted under different market conditions and how to take advantage of this Off Market Transactions in KLSE.

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