KNM Group Berhad Facing Insider Problems ?

When I was reading a few article posted by some of the share market bloggers I have found out a few special article written by Mr Dali (Malaysian-Finance Blogspot) about KNM Group Berhad. Someone from outside is referring something fishy is going on inside KNM Group Berhad. They even mention that better not to buy any of this KNM Group Berhad counter's because someone told them not to do so.

It started when Dali in his article Portfolios According To Outlook For 2009 (December 30, 2008) recommended KNM Group was in his shopping list (stock picks) for 2009. Someone by the name of Wang left a message to Dali.

Here was his comments - it seems dali has no idea what is happening to KNM.. I wonder why he still recommends this counter among his top picks... You know what they say? share price never lies... dali, quickly retract ur call before its too late... hahaha... anyway, its a typical fund manager's blind favorite...sigh... check KNM account please... a fraud is brewing... dali...

Dali Responded to Wang on January 1, 2009.

Wang, if there is something you like to share, please do, but do not make statements without any elaboration. If there is a fraud brewing, please at least hint what it is all about. I could say that your mother is not a woman, and stop at that. That would surely piss you off, but if I offer some proof or logical deduction, you may thank me for it.

Right now, I cannot thank you but feel a bit pissed off. Hope you understand, looking forward to your elaboration or deduction.

Life is not always one smart person and the rest are idiots, so don't try to make yourself out as the one smart person. If someone wants to rip us off, we can only guard ourselves with publicly available information.

We cannot be going around to their rigs and check that they are actually drilling, or pore through the books and confirm with their auditors, rig managers, technology officer, etc... that they are doing their job.

Your comment about fund managers being typical idiots is also uncalled for, unless you justify or elaborate why buying this stock makes them a typical idiot fund manger. I will write about why I like KNM a bit later. Look forward to hearing from you.

Please read further on this article What's Shaking KNM (January 02, 2009) by Dali. This is to understand further more on KNM future. To be continue ..............

KL Composite Break The Major Resistance. Start Your Engine.

Yesterday without any hesitation when the market make a move in the first 30 min, I foreseen there is some promising move from the KL Composite Index together with some of the speculative counters.

I place my order without thinking whether this market movement was a purely one or not. I used to say that this market seems to be heading north. (Accumulate more KNM and Equine)

Based on the chart and my last month article (Malaysia Stock Exchange. Accumulate on Weaknesses ?) on December 21, I did mention that we can start to accumulate any of our favourite shares in a preparation for a Chinese New Year Rally. Right at the moment I would prefer to accumulate any shares that usually stay at the Top 20 most active shares.

Couple with yesterday volume created and with the share prices increase, indeed the time has arrive for the share prices to move forward but remember this is just a technical rebound. A reversal trend that would last a while for just a few months. Maybe 2 to 3 months.

Yesterday night I made a research on where is the next course of KL Composite Index might be heading to and how long it will stay at upper level when the KL Composite Index reach its peaks ? If we examine the past and historical data, usually towards the Chinese New Years and after Chinese New Year the market will stay at least until March or April. (March UMNO election)

Let us re-examine the chart during 1997 Asian Financial Crisis. This is just a guidance for us to understand the share market behaviour. Many of the analysts might not agree with the way I compare the current 2008 World Financial Crisis with the 1997 Asian Financial Crisis. The crisis that occurs during 1997 crisis is totally different from the current 2008 crisis. This one I have to agreed with most of the analysts if we want to make a comparison between both of them but in crisis we need to understand that a crisis are always a crisis.

Share market never really understands whether the crisis is big or small. As long as the crisis strike and it is big within the region or the any parts of the world. Share market is the first place to react negatively. How it will react ? It depends on all other aspect as well. (i.e financial rescue)

No doubt the crisis is different but if we take a look on the charts pattern it look almost the same. Previously few of my trade did help me a lot in terms of guiding me how to trade according to past historical chart. It helps a lot.

Today I'm still surviving in the share market not because I'm clever or intelligence or I'm very good in watching the share market movements but it is because I always follow the chart guidance. Charts are only a guidance to show us when is the right time to trade but it is not a tool to show us when is the right time to buy or to sell any of the shares.

REMEMBER - These upwards are just a trend reversal for a few weeks only and it is not that the Bulls are coming back strong. It is just that the Bears are taking a rest after having a long fight with the Bulls for almost one year (downtrend). NEED TO RESPECT the BULLS because this coming Chinese New Year is an OX year.

Will KL Composite Index Start The New Year With A BANG ?

We are entering a New Year of 2009. Well ...we hope that this year will be a great year for us to trade despite a very disappointed year of 2008. We all know that during the beginning year of 2008 the KL Composite Index rose to its historic high of 1,516.22 points on Jan 11 and during the window dressing the index just closed at 876.75 points.

From its high in January compare to its last day close recorded in December the index has lost nearly 640 points. It is quite a disaster for Malaysian share market but overall not many of them have been caught by this sharp downturn due to our country political turmoil.

Thanks to the new political tsunami that happens in Malaysia during March 8, 2008 general election. Not only we face the political tsunami, many investors or individual stay at the sidelines when the Barisan Nasional government face a political mess with the leader of the Pakatan Rakyat party - Datuk Seri Anwar Ibrahim.

Lately if we read some of the news about the commodities around the world, there is some development in the commodity prices. Past these few days commodities prices has started to trade higher with some of the commodities prices trying to breaks its resistance. This I would call it as a technical rebound after the commodities prices has experiencing a sharp falls during the past 5 months.

We must remember that whenever there is a continuously fall in prices technically it will climb up a little bit to recover some of it losses. We still can remember that when the prices of crude palm oil started to tumble, the Malaysia share market experiencing a sharp falls.

Today there is some sign that these commodities has started to recover and indeed it will help some the public listed company especially the plantation counters, oil and gas counters to move higher. With the recovery of these prices, it will help the recovery of share prices and these will lead up to push the KL Composite Index to move higher.

Lately we also can see that there is some recovery in crude oil prices. After staying below USD 40.oo a barrel for quite some time, now the crude oil prices is staying above the USD 40 level. It would be better if the crude oil prices can break the USD 45 level and stay above that level. This might be an opportunity for the KL Composite Index to make some recovery after facing huge losses last year.