Wednesday, May 02, 2007

Time to bargain hunt

After closing for a day last Thursday, the KLSE closed on Tuesday and Wednesday to celebrate Labour Day and Vesak Day. Investors and fund managers may have gone away for a long holiday break. The stock market had been rather quiet and drifted lower for the past two shortened weeks due to profit taking while some low liners made further head way towards their peak for the year. A mixed market, as indicated by the Yi.

Well, one has been bargain hunting the past week or so, since some of my favorite stocks have fallen about 30% from their recent year highs. If the stocks rebound to their year highs in the expected rally, then one can make 40%+ from the investments. If they make new highs, wow!

Hopefully, this round the second boarders will also move up in tandem, they are the real laggards, so that everyone in the market can make some money. The second board counters had gone nowhere quick for the last couple of years. They used to be the favorites of housewives and retailers back in the 1990s. Funds shun them because these small cap stocks are usually illiquid. Can they ever fly sky high again? Sure, when the time is ripe. Therefore do not overlook them, although investors may have to hold the stocks longer than Main Board counters for good returns on investment.

It is time to bargain hunt and accumulate, if you have not done so the past one week. Not long to wait for the KLSE to rebound – according to the Yi chart. Just do overtrade at this time, buy what you can hold. So there you go. Good Luck!

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