News. Seadrill Buys 10M More Sapuracrest Shares

Extract from TheStar :
Tuesday April 15, 2008
KUALA LUMPUR: Seadrill Ltd bought another 10 million shares of Sapuracrest Petroleum Bhd in early April, increasing its total shareholding to 203.82 million shares.
A filing to Bursa Malaysia showed the Oslo Stock Exchange-listed Seadrill, which is involved in offshore drilling operations, bought 2.50 million shares of Sapuracrest each day from April 7-10.
After the recent acquisitions, Seadrill’s shareholding in Sapuracrest rose to 17.44%. The share price was trading between RM1.29 and RM1.41 on those days.
Sapuracrest’s share price surged to a 52-week high on July 26 last year while it hit a 52-week low of 98 sen on March 10. At the current price of RM1.38, it is trading at a price-to-earnings ratio of 18.06 times.

Trading Ideas. Ramunia

Proposed Entry : 1.34
Stop : 1.31
S1 : 1.32
R1 : 1.39
R2 : 1.44/1.45
On daily charts : rising MACD, about to rise fast stochs. Absence of significant volume though. Price have been trending sideways since 25/03/2008.

Sheer Driving Pleasure

Market trading sideways.

Boring? Indulge in the sheer driving pleasure.

With amber-red dial colour as eye candy, 50-50 weight distribution, rear wheel drive and smooth linear power delivery, u can't be blamed for taking the longer way to your destination. Pure gratification. Or as some might say.."the heartbeat" factor.

Stockwatch

Watching :
1. Sapcres
2. Kinstel
3. Ioicorp
4. Dayang (soon to be listed)

KLCI. Brief Comments

KLCI currently seems to be still moving sideways. A break above 1263 in the immediate term and subsequently 1278 is most welcomed for more upside possiblity. A sideways trading market makes buying or selling decision more indecisive.

Rcecap. Brief comments.

Rcecap has been declining since 15/01/2008. Note that the 81 ema line is about to cross down on the 200 ema line. MACD and stochs are continuously declining too.

How much lower can it go? 0.52? 0.50? 0.47? Can anticipate further decline if 0.47 is breached.

If you held this counter and acted upon your stop loss, you would not be saying "Oh Shite!" now..

The Exit Plan

The last 1 month or so saw the decline of the composite index only to bounce up for a bit and then decline again. I believe most counters would have seen similar or more decline.

The Stop Loss Rule though very important is only the first half of the exit plan. Being able to determine your stop loss before entering a trade puts you slightly ahead of mass market retail traders, as most I believe do not assess their trade risk and stop loss prior to buying. They only hope and aim for the profit.

The second half of the exit plan rule which is of equal paramount importance is TAKING ACTION on the stop loss rule. In short, its about selling when your stop loss is hit. This part is more difficult to execute. Why? Because emotions and hope can come into play. And when that happens discipline in executing the stop loss takes a back seat. Never ever let your EMOTIONS and HOPE cloud your trading rules.

When you breach or lower your stop loss, you are essentially exposing yourself to a higher loss risk. Allowing this leeway can be contagious as it may lead to further lowering the stop loss and eventually when u have to bite the painful bullet and sell at a much lower price you realise that you could have lose less if only you had stuck to your original stop loss and act upon it.

Constant adhering and acting upon your stop loss rule will ensure longer survival in your trades and allow you to calculate and limit your risk.

Every Breath You Take. The Dean Glenn Hubbard's Parody on Ben Bernanke

Trading Ideas. MBSB

Previous posts on MBSB - failure on the pennant breakout. Since then MBSB has been on the decline. Me thinks MBSB is worth a look now in view of the decline and the current price formation. Anticipating U-turn up.

Proposed entry - 1.26 - 1.30
Stop - S3 - 1.240
S1 - 1.26
S2 - 1.22
S3 - 1.20
R1 - 1.30 (*)
R2 - 1.35
R3 - 1.39
On daily charts : Rising MACD, rising stochs

Trading Idea. Sapcres

Proposed entry - 1.47
Stop - between S1 - S3
S1 - 1.46
S2 - 1.43
S3 - 1.41
R1 - 1.49 (cluster)
R2 - 1.58
R3 - 1.72
On daily charts : Rising MACD, rising stochs, rising volume