EOD Update (9 August 2006)

SJER-related stocks like TEBRAU and UEMWRLD continued to slide today due to the announced freeze on land transactions in that area. The key issue here is how long the freeze will be in place and what it actually hopes to achieve ... I mean, really achieve? I can't really figure out a logical reason for its continued enforcement.

Besides, TEBRAU and UEMWRLD are not in the business of selling bare land. So what's with the selldown of their shares? The market bear's argument is that freezing transactions by speculators will halt the upward appreciation of land prices in the area. Ok, so how much land "in that area" do others have and would it really generate enough impact on market prices anyway? I don't know the answer to those questions, but my bet is "not much" on both counts. So I will file this freeze together with all previous other temporary, unexplainable measures we have seen before. Funnily enough, EKOVEST doesn't seem to be affected much by this over the last 2 days.

Latest purchase:

UEMWRLD: +2,000 (1.38) ... Total 12,000


/ichithekiller