EOD Update (23 Dec 2005)

OSKVI tanked, MTOUCHE undergoing correction, dont know if it will tank next week, probably not ... GPACKET hit low of 2.10 bfr rebounding to close unchanged at 2.15..

Am getting a bit impatient with SCOMI and SCOMIMR. With so many other opportunities around as a result of prices drifting relentlessly down, it seems a shame to tie up capital in non-moving stocks. Although the FA/value guys always say one should have patience to be a true "INVESTOR", I dont necessarily subscribe to that view... opportunity costs are just what the name implies... costs. Easy money not made is almost as painful as money lost. Well, almost...

LIONCOR rebounding as expected, after debt deferment plan approved by creditors. Up 5c today to close at 47c. Should have bought more when it went as low as 34.5c a few days ago. But its current fundamentals too weak to warrant taking too big a punt.

Latest purchase:

MIDF: +8,000 (1.03) ... Total 8,000 ... with NTAPS of close to RM2.00, this stock is starting to look way too cheap, especially when it owns not one, but two discount houses which would be sought after by IB-wannabes.

Oh yeah, the counter I referred to in the Dec 19 update is MASTEEL. Have given up trying to acquire more on the sly, as sell offers below 0.60 always get mopped up at the last minute and I never get hit on the queue. Will decide whether to pay more for additionals next week.

This stock is starting to look like a real bargain find, amongst the steel industry players. Its small size gives it flexibility and latest quarter showed better earnings from previous quarter, compared to seas of red ink being reported by other listed steel players. Recent switch to natural gas as fuel source, amongst other cost-cutting measures, has improved margins and shows management's foresight and ability to take quick, decisive action. Thats the kinda management we all like, innit? Also currently trading at less than 50% of its IPO price of 1.30 in Feb this year, but that was priced on the back of the previous year's bumper steel prices and earnings due to unanticipated demand from China and India. Details of purchase are as follows:

MASTEEL: +4,000 (0.585), +5,000 (0.59)... Total 9,000

Latest disposal:

SCOMI: -3,000 (1.04), -1,000 (1.05)... Balance 6,000 @ 1.02. Have a feeling there's not much downside risk from here (in fact it seems to be creeping up), but its moving way too slow for me. Need the capital for other counters.

Am not cutting or trimming stake in SCOMIMR (17,000) for now, as still believe prospects for securing new coal carrying contracts from IPP's next year are strong + its AHTS vessels (from newly-acquired Chuan Hup) are in short supply throughout the whole world, due to frenzied oil & gas activity.

/ichithekiller