EOD Update (4 August 2006)

Plantation heavies finally started moving again today, after CPO futures had come down yesterday and today...funny market. Hope this will drive a continued uptrend for RSAWIT, KULIM-WB and ASIATIC. KULIM-WB is getting close to the 2.00 mark, hitting 1.94 today before settling down to close only 3 sen up at 1.90. Read somewhere that KULIM (mother share) RNAV is more than 10.00 a share, so even at 30% discount it should be valued at at least 7.00. KULIM closed up only 2 sen today at 4.20, after hitting 4.26 earlier.

Would like to highlight something here about MTOUCHE. It suddenly spiked 30 sen up yesterday to hit 3.80, before drifting back down again (today close 3.60). I don't know the reason for this, but in case people haven't noticed, GPACKET, MTOUCHE and OSKVI seem to be taking turns to move in spurts. I was expecting OSKVI to make another move soon and sure enough it did today. Was hoping for a correction first to pick up some OSKVI, but it didn't happen, so I can only sit and watch my GPACKET and MTOUCHE.

Latest purchases:

BCTTECH: +2,000 (0.77), +2,000 (0.755) ... Total 10,000

FABER: +10,000 (0.59) ... Total 10,000 (2nd round after complete exit earlier)

FABER should be reporting its quarterly mid-August, so am picking up in anticipation of a good set of results showing improving earnings, on the back of its last few successful property launches. Also, prospects of benefits in one way or other from 9MP rollout should provide a downside cushion. One possible negative is potential selling from the seemingly never-ending stream of pref share conversions which were created by its recent restructuring exercise. Still, below a certain level, it would not make sense for these people to keep selling, though it may hamper the upside in the medium term.

/ichithekiller