Imminent! Repeat. Imminent!

Tracking the trading pattern of KPS today is indicative of one thing. Frantic collection.

In less than a year, KPS's price has moved close to 400%. Initial movement started in November 2006 and buying activity remains unabated until it was stifled by the fall in the Chinese markets in late February and subsequently by the sub-prime mortgage concerns in the US in early March. After that, it trended upwards to the RM1.40 level. May was mixed for KPS and prices weakened, trending downwards to the RM1.30 level. June saw its prices breaking the RM1.50- RM1.70 sen level convincingly.

This month is historical for KPS. From the RM1.70 level, within 15 trading days, it has breached the RM1.90 level, touching an intra-day high of RM1.96. There was no indication of heavy selling per se as most shares were well absorbed. Neither was there signs of huge heavy profit taking today. Last half an hour selling by weak holders sheared gains as sellers sold on fears spooked by the fall of Asian markets particularly Hang Seng and Shenzhen.

Let us look at the profile of the trading of KPS today. Huge blocks of shares of 500 lots each were done throughout the day interspersed by bigger blocks of 1,000 to 2,000 lots. Aggressive buying stopped at about half an hour before the final bell. Bargain hunters then came in to take off the weak sellers, dragging down the price to RM1.90.

I smell something is in the air. This is not a favourite syndicate counter. I think speculators with holding power have come in to take position ahead of an important announcement regarding the Pahang-Selangor Water Transfer Project (PSWTP) to be announced in the next few days. The most probable announcement will be the Japanese company has submitted the engineering design of the project to the Ministry and that action will be taken to tender out the project most likely within the next three months for the project to start work in early 2008.

I think KPS will move up a bit tomorrow,perhaps in a narrow band. If the fall in Wall Street is minimal, KPS should go beyond RM2.

Heartsong