Shares Sales a bit Overdone - Looking for a rebound ?

I don't really know what is actually happen to our share market. Would it be a political matter issue on Anwar Ibrahim or it is just because of our country facing a higher inflation rate of about 7 % to 8 % or maybe because of record crude oil prices in NYMEX. It's all connected. But it seems to be some of these counters are a bit overdone. There has been a lot of continuous selling to some of these counters which we might pay a little bit of attention. KL Composite Index close down -11.74 to 1,174.83 points (01.07.2008) with a lower turnover recorded 340.095 millions shares.


Sunrise Berhad which recently forms its high of RM 2.71 per share (16.05.2008) is currently traded at new low of RM 1.55 per share (01.07.2008). How much will Sunrise shares go down further ? With a nearly 90 degree sharp drop these few days, it might worth to take a look on this construction counter.

Lately because of all the constructions material have risen to all time (crazy) high, it would definitely hurt the earnings of Sunrise Berhad.

Sunrise Issued and Paid-Up Capital : RM 447,555,567.00
Class of Shares : Ordinary Shares of RM 1.00 each.

Scomi Group Berhad which recently forms its high of RM 1.17 per share (23.04.2008) is currently traded at new low of RM 0.595 per share (01.07.2008). A closely watch on the stock movement for the past two days saw the counter have been experienced a heavy selling. For this price, will it be a good buy for a rebound or just for an investment only ? Let's take a look on Scomi share buy-backs details.

Even Scomi average share buy backs cost about RM 1.296 per share as at 31.12.2007. Will an investment or a speculation at this level of price (RM 0.595) can be a safer level to bet ?

A check with Bursa Malaysia website recently show that begining of the year until now, Scomi Group only make 1 transactions of share buy-backs on 27.05.2008 this year. That is 1,000 ordinary shares at the price of RM 0.925 per share. Total share buy-backs until now stood at 14,425,200 ordinary shares.

Scomi Issued and Paid-Up Capital : RM 102,021,585.00

Class of Shares : Ordinary Shares of RM 0.10 each.

These are not the only stock that have been experience heavy selling. There are still many stocks or equity in Bursa Malaysia facing this kind of scenario. (ie. new low recorded. Green Packet - RM 1.04, Resorts World - RM 2.55, SP Setia - RM 2.84, Bumiputra-Commerce - RM 7.55)

I would call it an opportunity but sometimes to search for the bottom of the market before a significant rebound occur is just like guessing and buying a 4D's numbers.