Is Welli actually Hadhari Cattle Industry ?

As I reflect upon the statements made by Dr. Rashid Tang Abdullah of Welli and Hadhari Cattle since May, I cannot but be amused to think he was talking about Welli and Hadhari as if they are synonymous-the same company. Maybe it is de jure. In his mind's mind, Rashid knows that they are ONE or about to become one. On its own, Welli is a big fat nada ZERO! Directionless-going no where and worse of all-prospectless. With Hadhari as lead rider , it is a strong bull and big things are for the taking-the world Halal hub in its vision. Something they are already smack right in it and to boot, with the blessings of the Malayian leadership. A new reality dawns for Welli as it will takes on the guise of Hadhari in its steps.

Undoubtedly, it is veering towards that. Hadhari is helping the new owners of Welli by buying off another minority seller, a chunky 19% to help strengthen their stranglehold on management.

The collection of Welli shares that started just before the sub-prime dam burst, is evidential that something is in the air for Welli. Perhaps an announcement that may put Welli back on the investors' radar. Of, course it was not to be as every one ran for cover when the sub-prime holocaust hit. But confidence did not ebb even though Welli hit pay dirt at 87 sen. It then rose as high as RM1.20 and then it settled down to above RM1.00. Today it is floating at the 95 sen level. The collection however continues.

Lots of 50-100 are quite common trade in spite of the bearish market. The only possible news on the horizon is the release of their 2006 Annual Report and possibly that of a first quarterly report for the current year. Will the quarterly report provide something profitably fresh for the mind of the investor to seize upon?

Or is it something bigger looming on the horizon as the dusts settles in Mongolia and Malaysia? Time will tell.

Heartsong

The Bulls May be Off to Bali....

Dow was ambivalent. US Treasury bills yields have risen. The Feds have injected more money into the market to alleviate the tight fund situation for bill buying. Flight from money-backed securities into Treasury bonds continues. More are of the opinion that the Feds will not cut the rate on September 18 as selling pressure ebbs on Wall Street and there is less fear all round on the sub-prime. Oil prices are trending downwards as Hurricane Dean loses its sting.

Meanwhile, in the east, China increases its interest rate and allowed for the first time for individuals from mainland China to buy shares off Hong Kong. The early furor has somewhat died down but I expect demand will go up once the mainland Chinese investors gets savvy enough to trade in HK shares.

The Japanese yen continues to trade higher especially against the NZ$ and the Aussie$ as the carrying trade unwinds. As long as this continues, yen will move forward. Many are speculating that the BOJ will not increase interest rate for the time being.

Back home, market closed 1% lower yesterday, brought down particularly by the selling down of Genting which has been grossly oversold and should bounce back. If at all, the market can come back on its own, it will be led by the tandem leadership of the Genting-Resort pair. External help can come in the form of a coordinated push by Value Cap and its GLC sister funds. If the move can counter foreign fund selling, we should be back on course for a rally before the September 8 Budget. If not, this is one year where we are denied that bullish phase.

My reading today before the market opens: Lackadaisical trading pattern with a downward bias to hold cash and the omnipresent "wait and see" non-committal stance. This will cause low volume trading and sap away excitement sentiments from our market.

The bulls are away in Bali and in exotic places like Aruba. Expect two boring sessions today.

Heartsong

The Wall Street Weather Forecast

Last week saw money seeding throughout the world from New York to New Zealand. In Europe, ECB pumped in money to help out financial institutions that have been cash-strapped by the sub-prime imbroglio. US and Australia followed suit. Soon it was Japan and South Korea. More need not be said.

The Fed delayed action left much to be desired and markets world-wide plummeted. By Thursday,Wall Street moved up on short covering. A technical rebound was long overdue. Then the Fed count the symbolic discount rate by 0.5 % and allowed loans for a duration of 30 days and not overnight. With that, fears were allayed and Wall Street shot up initially to 300 points. If not for the intervention of the authorities to prevent speculation, the Dow would have finished up 300 points.

Will there be follow through this coming Monday on Wall Street?

Every one knows sub-prime is not going away soon. Everyone knows unwinding of the yen carry trade will continue perhaps under less pressuring conditions. That another financial institution may be caught in a liquidity bind is not unforeseeable.

But the Feds are ready and on standby stations. Apart from the discount rate cut, they are continuing market operations by putting more money into the system. Their guarantee on Fannie Mae and Freddie Mac still stands to ensure the mortgage market continues to perform.

The fed rate is anticipated for a quarter point cut in September. This is seen to be more useful as it will help the mortgagee as well. Also it will allow cheaper funds for M&As to take place. The downside will be inflation worries and the fear that foreign governments might just dump Treasuries. Both will negatively impact economic growth.

Hurricane Dean's movement across the east coast of US and Mexico has pushed oil prices up. However, the sub-prime may cause many companies not to expand as planned and this could put a cap on oil requirements.

The comfort now is you have the central banks all working to restore their financial systems. The Fed is on standby and ready to act. There will be worries but it will be contained. As long as the majority perceives that the worse is over, the market can then start back on its journey towards the 14000 level.

Asian market should go up in reaction to the recovery in US and Europe.

We shall see how the Dow perform tomorrow night.

Heartsong

The Bear Dance

I am no joy-killer. I do not want to be one. Ever. But signs are the bears are here. They are fox-trotting to the sway of the sub-prime melody. Sub-prime is the top of the pops for more than three weeks now on the world charts from New York to Seoul. Just this morning, it started to move up the charts again after sliding for the last three days because of the new numbers played by the central banks.

One more provider, Aegis Mortgage has filed for bankruptcy and an investor bank is involved as well. From 100 points up, Dow sank to red territory. Asian markets follow suit this morning.

Bursar was happily moving up this morning in a verdant green landscape but by lunch break it has lost 6.2 points bringing the index down further to 1290.24. Morning trade was thin at 383 million shares worth RM1.29 billion ringgits. Losers outran gainers almost 2:1, that is 421 to 274. Gainers were MIDF which added 40 sen and BAT which climbed 25 sen. No big deal for BAT. MPI gained 25 sen as well and MBSB; out of blues came in with a 20 sen gain. Highly suspicious!

Portfolio stocks came in mixed. Genting added a miserable 5 sen to RM7.55. Good support noted. BJ Sports Toto climbed 2 sen while Resorts lost two sen. RCE and JAKS both dropped 1.5 sen each while Welli dropped a sen to RM1.17. Metronic was at its overnight level of 18 .5 sen.

Any hopes for a better afternoon session? By a long shot..........

I still hear the bear swaying to their favourite rhumba,"Sub-Prime Blues got Aegis".

Heartsong

More Fires on Monday?

Wall Street reduced losses on Friday because of the blood transfusion exercise into the financial system. News that central banks worldwide are pumping money into their financial systems to allay investors fears also helped. Bears retreated for a while. Will they pounced back on Monday night in New York and paw prices down again?

No one knows for sure. We are not out of the woods yet. But do not expect gung-ho strength buying. Fund managers may come in to buy some blue chips to bottom fish if they feel that the worse is contained. This will only mean that the index will remain put or incrementally better.

If Nikkei and Hang Seng perform well, Asian markets may move up. Expect situationals to sprint particularly KPS,JAKS and KHSB. Second grade blues may also jump. There will be broad based buying. This is the best scenario we can hope for.

If Asian markets play a ''wait and see'' game, the markets will be range-bound with a bias to lower prices. A weakening of the Asian barometers, Hang Seng, Nikkei and FTSE is indicative that the Dow would falter again tomorrow night. Do watch out for the futures, because they are the percussors.

Pray the market holds tomorrow.

Heartsong

Looking for Noah's Ark

Oh what a day! The investors have been put on tenterhooks. They expected the worst and sold their shares by the first twenty minutes and then market started going up again. Then it settled down and went up slightly towards the close. Damage was done. So what can these investors do, if they have sold at a loss. Their only chance is to buy back when the market should fall really badly. That would be like climbing back on Noah's ark. It means Bursa must take another hit A second drubbing will be required on the true blue chips like Maybank, Public Bank,AMMB, TNB, TM, Commerz and secondary blues like the construction and oil and gas stocks. Anything is possible now with this sub-prime and yen carrying trade roiling its vengeance in tandem across the globe.

CI was down to 1287.69,losing 25.7 points. Volume of shares traded was 1.05 billion worth 1.8 billion ringgits. There was 104 counters up and 835 down. among losers were sime which lost 20 sen and EONCap;30 sen. Putrajaya Perdana put on 38 sen, GBH;29 sen and KPS; 13 sen.

Looking at the shadow portfolio,only JAKS and Metronic closed unchanged at 87.5 sen. Genting lost 15 sen to close at RM7.45 while BJ Sports Toto shed 14 sen o RM4.82. Resorts World lost 6 sen while RCE Capital lost 4 sen to 86 sen. Welli closed down 3 sen to RM1.21.

The underlying tone of the market was weak as investors would not want to commit as it was Friday and they were also wary of what will happen to Wall Street in the near term.

Heartsong

Equities Armageddon

By far, the worse cause for market meltdowns globally.

Sub-primes and the yen carrying trade-manifestations of man's greed and the reckless pursuit of systemic weaknesses of the world's financial systems. These excesses have come home and we have to face the music and to swallow bitter medicine. As the world central banks come in to salvage what is left of the dignity of financial institutions, investors world-wide turned panicky and started unloading shares from the word, ''Go.''

Let me just give a general picture of what transpired in Bursa this morning.

The initial reaction was to sell down those stocks that you have made some money. Then you sell those that you would not like to carry some more because of uncertain trading conditions for the next few days. Cash is king and so you convert.

The performance-not really big fall. Some sell-down of blue chips caused the index to fell on the initial hour. Then market stabilised and bargain hunters came in to reduce losses on most counters. The true blues were not too bad. Let us look at some of them at the end of closing day.

True Blues

Maybank lost 40 sen
Commerz lost 40 sen
LPI lost 40 sen
EONCap lost 30 sen
DIGI lost 30 sen
Public Bank lost 20 sen.
Hong Leong Bank lost 15 sen

Second Grade Blues:

KNM lost 22 sen
Sime lost 20 sen
TNB lost 20 sen
Tanjong lost 20 sen
TM lost 15 sen
Proton lost 15 sen
UEM World lost 18 sen
DRBHicom lost 12 sen
YTL lost 40 sen
Gamuda lost 15 sen
MRCB lost 9 sen
Zelan lost 20 sen
Pelikan lost 27 sen
YTL Land lost 11 sen

I expect market to slide perhaps towards losing 30 points as more bad news filter into the market. As today is Friday,expect more selling in the last hour or so.

The market appears weak though situational water-play counters have once again run ahead in anticipation of a recovery this Monday. A pre-matured indicator?

The determinant factor will be how Dow Jones fare tonight. If Dow makes a small loss or a small gain, its effects on world market will be neutral. Then there will be hope for Bursa. Otherwise it will be the same fate that we will face as the day dawns on 13 August 2007.

PS: Market closed down 25.7 points to 1287.69 today.

Heartsong

Timing May Be Wrong Again

This morning break-out for Welli was certainly telling by the volume done and the number of block deals.

Roughly, we see:

• Two huge blocks of 1000 lot sizes
• One block of 600 lot size
• Five blocks of 500 lot size
• Eight blocks of 400 lot size
• Twenty blocks of 300 lot size
• Sixty blocks of 200 lots
• One hundred and Eighty-Five blocks of 100 lot size

That means big buyers particularly those in the know are collecting Welli dirt cheap.

Tomorrow is Friday and they have bought their fill. So they will allow Welli to fell tomorrow since Dow Jones will definitely be down and Friday is no buyers' day.

I really do not know whether Rashid Tang has any share-price boosting corporate news to announce urgently tomorrow. If they have and want too, it certainly will be the worst time to do so.

Meanwhile enjoy the loveliness of Nicole Kidman in that beautiful gown..........

Heartsong

No More False Start, Please

It was well-staged. Spread a rumour that a Chinese machinery company is buying a chunk of Welli stocks at RM4.00, and the market freaked out. The stock was chased up until RM3.20 on heavy volume buying with obviously churns by helpful syndicates. When queried by SC, the company played down the rumour saying they were uncertain who among the shareholders were selling. The stock plummeted to RM2.00 and floated around that price.

However, when the company was about to issue their 2006 Annual report and First Quarterly Report 2007, they were requested to refrain from releasing the reports because of dubious receivables. The shares of Welli fell to RM1.20 level.

Then news of the Hadhari Cattle Industry buying over 19% of Welli stocks hit the market. The shares was once more feverishly chased up to RM1.91. It settled at the RM1.70 level. The latest news of Welli buying over Dashi Chifeng shares in China as well as signing an agreement with the Inner Mongolian authorities to participate in gold mining, new town development and construction of tolled road businesses did not move the counter.

Slowly by attrition bargain hunting, the shares were eroded to the RM1.20 level. Then the sub-prime imbroglio hit world markets for 9 days. Welli went down to 99 sen.

Today, despite a sliding market. Welli held its own to tack on 12 sen to RM1.24 on heavy volume. Is something in the works? Some good news is definitely going to be announced very soon and those in the know are busy collecting them yesterday and today.

Will Welli break out and never look back? I hope so.

Heartsong

An Anaemic Response

Well, I am proven correct again. Bursa is still extremely weak as the excesses are removed from its system. Until it is adequately cleansed, do not expect Indiana Jones performance.

And what are these excesses? Who caused it?

Intrinsically, the CI is to be blamed, it has too few counters, just like the silly Dow index which has 30 stock counters. This should be reviewed to include more counters. Secondly it must be more representative. If Dow is, then Bursa isn't because Dow can really go up and down but Bursa's CI can only go down like gravity.............

Who caused it? GLC fund agencies and local mutual funds that's who; pushing it sky-high to compensate for lost time to catch up with other global markets and in the process overdoing it. Other than the 100 stocks in the CI, the rest hardly moved except for situational stocks.

This morning, it moved up about 9 points but slowly it faltered. It is now at 1294.98 up 4.85 points. Some buying of finance stocks are noted. Moderate rise; no rebound. Second liners spurted and spluttered downwards losing half of their gains.

Volume of shares traded was 290,000 lots valued at 4.2 billion. Gainers were ahead by 414 to losers-235. Taking the lead in gainers were BAT with 75 sen, Maybank;20 sen and Genting and Gamuda; 15 sen each. Losers included Opus down 32 sen, Tanjong declining 30 sen as well and KNM; 20 sen.

Shadow portfolio:

Genting- good-went up 15 sen

Resorts added 4 sen to RM3.90

RCE tacked on 2.5 sen to 85 sen

JAKS added 1.5 sen to 83 sen

Metronic added 0.5 sen to 19.5 sen

BJ Toto was at iits overnight level of RM4.86

Welli bottom fished at RM1.01 losing one sen.

Do not have high hopes for the afternoon trading session unless some miracle happens.

Heartsong

Technical Rebound Expected - Will It Satisfy???

So Dow Jones has recovered dramatically. Upped 286 points. Led by financial stocks that got their best prices ever. Deal making continues. The sub-prime issues seems to recede into the background momentarily.

So what will be in store for Bursa? Can we start at 22 points up just like we started 22 points down yesterday morning? Then we should work our way back to recover the other 22 points throughout the day. Do local funds have the muscles to do it? And the courage?

Let us watch the Bursa Saham KL drama unfolds............

Heartsong

A Hundred Million Smiles....

An international ovation for the late Sudirman when he sang in London. He sang A Hundred Million Smiles. He made Malaysians proud. We would love to bask in that spirit once more. We would love to have that joy of winning.

Will bursa be a winner just like the late Sudirman? Of course, it can. It must keep its head high. It must show fortitude and self willingness to move ahead regardless of what the skunky Yankees do with their sub-prime or those sake drinking Japs do with their boring yen carrying fiasco.

Anyway, the Dow put on 100 points. The issue is the bulls won hands down all day in New York apart from some brief intervals of calculated retreat.

How do you think Bursa will react? Hang Seng will go up and so will Nikkei today. We must do so as well.

So fellow readers-watch the market and see whether fund managers flock in to buy or are we going to be left high and dry again.........

Heartsong

Are the Bulls Back or Is it All Bullshit?

Talk about the local market and you get sick in your stomach. For one thing, this dang stock trading are interlinked because of cross national trading. Some risk taking provider could not get what it lent out and the world almost topples on its head. Myopic but true.

So Wall Street has got back all it lost on Monday. Will Bursa get back beyond 1370? Let today unfold to show whether we are a bull or a jellyfish.

Rush Hour 3 just opened up in US. Chris Tucker is making it big with his gargantuan mouth. In about twenty short minutes Bursa will open. Rush Hour 4 will start and stampede for about maximum 20 minutes and then market will find its new level. Unless the bulls really are back and willing to toss the prices up all day. Expect the CI counters to be blown way by Khazanah, EPF and all those Mat Rempit funds.

The jury is out on this one until 5 pm. We await the verdict.

Heartsong

Monkey Business As Usual

The sub-prime mortgage is taking centre stage again. Some funds are giving way to liquidation. Concerns are that other funds might do likewise. This has caused the silly guru index Dow to lose 150 points. Looks like its bear mating season now and the monkeys have taken over Wall Street.

So you still wanna play stocks with the monkeys and bears. Think twice. Cash is king.

If this sub-prime keeps popping its head up every so often, best not to play even intermediate term.

Best mode: pun, make some pocket money and flee until the sub-prime pops up again. Play this game. A few select counters will do.

Today, Bursa went weak in the knee and dropped its pants; lost 8 points. Trading mood; mostly over cautious. Like angels, they fear to tread lest their wings get clipped.

I believe the market is in an undecided mode and mood. Look at stocks that are consolidating, glanced at their trading profile for the day before taking a position.

Portfolio stocks analyses.

JAKS, along with KPS and KHSB is trending upwards. It means there is still hunger pangs out there and sufficient pent-up interest left to move this counter up. Observe it carefully as there are collection blocks above 1500 lots to one block of 2800 lots. This is no small game. These buyers know the calculated risks. Generally alot of retail trade about 50 lots and below. Firming up quite well to add 2 sen to good volume.

Genting is better by 5 sen. Nothing to shout about.

The others are off their overnight by a shade or two. Going down slowly is Resorts, perhaps treasury buying rather than supporting.

Heartsong

JAKS-Some more?

I thought I would post this excerpt from CIMB on JAKS.

The privatisation of Selangor’s water supply services in 2005 has raised the question of whether the HoA will eventually translate into the award of a formal contract. The bigger water boys like Gamuda and Taliworks (TALIWRK) could see some action given their past dealings with KPS. Jaks Resources (JAKS) is also expected to participate in Langat 2 through an expected 30% share of the construction works and possibly even a stake in the water treatment concession. – CIMB

Hope it is true because then JAKS will be hot-wired to move up today like the mother ship, KPS.

Heartsong

JAKS ROMPS HOME

Just when you thought you would have to wait until the cows come home, what do you know-Jack jumps out from the box.

With the mother ship KPS chugging along like a juggernaut, JAKS wouldn't be far off. And so it came to pass. After moving in a tight band between 88 sen and 91 sen, and just before Quasimodo went into the belfry to ring the ending bell for trading to halt, the syndicates came in. They pushed JAKS up 20.5 sen to end at RM1.03.

JAKS is a stock with resilience. It will move on its own as it builds its strength. And that will take time as transformational change is organic. The PSWTP is just one good bonus and JAKS was there to play ball.

Now that it is quite clear that the Langat II project will be implemented simultaneously with the tunnel package, let us see how JAKS will perform tomorrow particularly when JAKS has a good working relationship with KDEB, the parent company of KPS.

Viva JAKS!

Heartsong

Landslides and Quicksand

Bursa is as elusive as the girl above. One day sunny and full of hope. The next blow me down typhoon Dow, landslides and quicksand. The stock market is definitely not for those with weak hearts and feeble minds. But then the world is not made up of only the brave and the stout-hearted. We have the clods and the gormless. It adds colour and we have sometimes to pick up the pieces because of their silly antics. I am talking of those idiots operating the sub-prime mortgages.

In spite of the sell-down in New York on Friday last, Bursa performed not too badly. By noon close, fears started dissipating and buyers gained confidence to come in to shore up prices. CI was down 5.2 points to 1350.22, still above the psychological level of 1350. Losers outnumbered gainers 550 to 282. Trading volume was good approaching the billion mark (975 million shares)with a value of 1.9 billion ringgits.

The giant gainer was KPS; still running on high octane overdrive excitement,even though its only the tunnel package that is out for international pre-tender. It should subside to a level for the next game (possibly in three month's time). So expect the share price is slide on attrition selling in a day or two unless there are super news to be announced. I expect it to lose at about 25 to 30 sen. Other gainers include Green Packet, Tanjong and Shell. Losers aplenty saw Bursa down 40 sen, MMCCorp and Gamuda.

Looking at our portfolio of shares and the trading trends, I see the following:

JAKS, one hottie of a stock, riding on the KPS wave. It added 6 sen to 88.5 sen on a volume of 18 million shares. JAKS touched an intra-day of 90 sen. Heavy buying with huge blocks changing hands before the 11 o' clock witching hour. Subsequent trading were mostly retail action. I expect it to solidify at this level with a good possibility of it going beyond 90 sen this afternoon or tomorrow morning. Get ready to sell it it passes the ringgit mark.

RCE Capital, second highest turnover stock of the morning trading session (201 million shares). Went down a sen to RM1.02. I have a strange gut feeling that it will be ramped up this afternoon or tomorrow.

Genting-trading around the RM7.90 to RM8.00 level. Good support all morning. 15 million shares raded. Possibly Treasury buy-ins for just such an occasion. Resorts World ended 2 sen down at RM4.08. Volume at 8.4 million shares. Support level price, I suppose. BJ Toto, down by 2 sen too to RM4.84. Good stock . Why me, worry? (Alfred Neuman).

These stocks are causing some concerns. Metronic-Global. Obvious support at 22.5 sen even though a few loose ones got bought in at 22 sen. Welli-the push did not materialised with the launch of the NCER. We still have got one more day to go. So, not to fret.

Let us look forward to better things in the afternoon session.

Heartsong

WELLI-MULTI CORPORATION-OPTIMUS PRIME

In April 2007, a group of politically connected corporate leaders took over a small second board company, Four Seasons. Their intention-to bring to fruition the vision of PM Abdullah that Malaysia will be the international Halal Hub for the OIC. A kind of national service to Malaysia.

So they hi-tailed Dr Rashid Tang Abdulah back from their Hadhari cattle operations in Inner Mongolia to helm Welli-Multi Coporation (WMC). The next corporate move-Hadhari Cattle Industry buys 19 % of WMC at RM1.50.

WMC then move into high gear.

First stop: to set up the biggest halal gelatin plant in the world in Malaysia. There is currently no significant 100% halal gelatin producer in the world.

And why gelatin?

Gelatine is used in pharmaceuticals, foods, photography and many industrial applications. For religious and hygiene reasons, the demand for halal gelatine is expected to be in high demand especially in Islamic countries (OIC). Venturing into this project is therefore in line with the Malaysian government's initiative to be the world's Halal Hub Centre. The world market for gelatine is estimated at 315,000MT valued at over USD 2 billion.

WMC then engaged, Imtech Drygenic, a Dutch firm to design a gelatine plant to produce 5,000 metric tonnes of gelatine per annum. The plant to be located in Kedah, will commence operations in mid-2008. Hadhari Cattle Industry Malaysia will supply the cattle bone for making the halal gelatine.

Next, it commissioned Erawat Engineering, an Indian company, to supply WMC with halal gelatin capsule making equipment at its present plant in Prai Industrial Estate. The equipment will be able to produce 5bil capsules a year.Production is scheduled to begin in early 2008.

Second Stop: A Foray into Inner Mongolia

On 8th July 2007, WMC signed an agreement with the Inner Mongolian Government on to cooperate in energy, mining,metals, roads and sundry developments. It is now negotiating to buy over at least 30 % of Chi Feng Dasi Basic Industry, currently traded on Shenzhen. Dasi's main involvement are in mining and metals (silver and gold) as well as in tolled road developments in Inner Mongolia. Its revenue is RM1 billion yearly.

My reading:

WMC and Hadhari Cattle Industry (HCI) are synonymous. In time, HDI will reverse take-over WMC. When CEO Rashid talks, he talks on behalf of both WMC and HCI.

Tomorrow, PM Abdullah will unveil the NCER masterplan. Most of the projects to be announced are already speculated and only the finer details matter. To those in the know, close to the heart of the Premier is his pet Halal Hub Project and in the pilot seat is WMC.

The Stock:

WMC is ready To Move Up. The weather outside ocassioned by typhoon Dow Jones is not conducive.

Like a yoyo, it went up and down from April to June. Prices went down on attrition buying in July. It stands currently at RM 1.29.

WMC prices were capped from going up chiefly because of SC’s sanction on the release of its quarterly report. Apparently they were worried at the huge amount of receivables.CEO Rashid however gave an assurance that this was manageable and will be collected by March 2008. Legal action will be taken as warranted.

Most investors bought at the RM1.45-RM1.70 level. Only weak holders have thrown their shares. The parties who bought huge chunks are keeping it under wraps. They are waiting for a price resurrection. That time is near.

My Take:

Crystal gazing, barring unforeseen market conditions, WMC stock prices should move up if and when:

• PM's unveiling of the NCER on 30 and 31 July 2007
• The Annual Report and quarterly reports are vetted and approved by SC-very soon I hope
• WMC buys the Dutch gelatin production technology and machinery
• WMC buys the halal capsule producing machines from India
• Confirmation of stake and price in Chi Feng Dadi Basic Industry Co. Ltd.
• Potential buy of WMC shares by by Siping Lishan Machinery Manufacturing Company of China at an agreed price higher than RM1.50 per share
• Potential buy of WMC shares by a GLC(possibly Synergy Drive)
• Potential buy by a Kedah State Investment agency
• Purchase of shares by a politically connected bumiputra entrepreneur (either from Penang or Kedah)
• Purchase of shares by an international investor form the Middle-east (possibly Kuwait Finance Corporation)
• Reverse take-over of WMC by Hadhari Livestock Corporation and friendly parties

Believe me, all the above, if it does materialises, will be event-managed.

So, if you are game, do some homework and take a position on WMC.

Heartsong

A NEW JAKS BECKONS

JAKS has been baptised by fire. It was betrayed by a well connected political Judas.

It was a deep wound, close to JAKs's heart. Now, it will no longer depend on political patronage alone to get projects in Selangor after the PUAS-SPLASH privatisation fiasco. The potential 30 years contract supplying pipes to water-works in Selangor was largely ignored by Puncak Niaga that JAKS had to bring a legal case against SYABAS, Punca Niaga and the Government of Selangor. The case is still pending in the courts.

That was the wake-up call. From that singular incident of bad faith, JAKS smartened up and started to rely on itself. The days of Dato'Jamian Mohammed who lent his J to the word JAKS is now gone when he resigned. The founder, Ang Ken Seng (AKS) though, is still represented in JAKS by his two children. With new Chairman Zulkipli Abdul at the helm, a new chapter has opened up for JAKS.

To avoid the vagaries of the steel industry and the thin trading margins, JAKS has moved on. On its own it has made forays into Malacca and Kedah. In Kedah, it has nailed down a joint venture with Bina Darulaman Berhad to secure pipes and fittings for various water-works in the state. If the joint-venture materialises,a consortium company will be set up to supply pipes and fittings to Kedah for 10 years and the state will have the option to secure supplies from the consortium for another 10 year.

As not to be reliant only on pipes for the water industry alone, JAKS bought over Empire Deluxe. With this deft move, it opened itself to supplying the world's oil and gas industry. Empire Deluxe has a manufacturing plant that produces carbon steel butt-welded pipe fittings used in construction engineering and in the oil and gas related industry. All the output are fully exported to North America and Canada.

The additional revenue from Empire Deluxe will impact positively on JAK's bottom line beginning April 2007.

JAKS's financial profile is getting better. The results for the last six months from November 2006 to April 2007 was impressive. From a loss of RM4 million for the same period in 2006, JAKS made a net profit of RM5.1 million. Turnover increased 17% from RM62 million to RM70.7 million attributed to better market sentiments. This portends well for JAKS for the next 6 months.

As most of the water projects will be tendered out during the remaining months of 2007, a majority of pipe manufacturers will stand a good chance to get some parcels of them. Pipe manufacturers like JAKS will also benefit from the new properties to be developed in most of the growth areas like IDR, NCER and the like.

As the market is currently very weak, it is the best time to accumulate JAK shares. Best to buy below 80 sen.

Heartsong

A Possible Way out...............

Dow has gone kaput. Lost 500 points in two days. Sub-prime mortgage rears its ugly head again. US interest rate is speculated to move upwards. Funds are moving into bonds. A swath of red ink has hit Asian markets. Investors are running for cover from Shenzhen to Seoul.

Question in our already confused and worried mind. Apa macam?

Analysts say that Monday's possible downside will be capped because of the good news emanating from NCER.

The best thing to do is to watch the market and the counters you are thinking of buying in. forget about those stocks that you have bought even though they have gone down to the seabed. Forget about the dollar averaging game. Buy because you want to come in some more. Because you have faith in that counter.

Let us look at the portfolio for possible buy ins.

Genting: Buy if if goes below RM7.50
Genting CD: Buy if it is 1 sen
Resorts World: Buy if it is RM3.50 and below
BJ Sports Toto: Buy if it is RM4.20 and below
JAKS: Buy if it is 0.71 sen and below
RCE Capital: Buy if it is 0.78 sen and below
Metronic Global: But if it is 18 sen and below
Taliworks: Buy if it is below RM1.75
Welli-Multi Corporation: buy if below RM1.00

Sell and take profit on all that you have bought if the market bounces back.

Heartsong