Thursday, 19 July 2012

Taking Profit : exiting Kepcorp's fierce rally on good Q2 results & toppish market

2 posts ago on 3 Jul  , entitled " Short Squeeze : Kepcorp on a fierce rally" , when Kepcorp was trading at about $10.80 , I expected it to go past $11.20 when I mentioned in the last paragraph of that post  :

Today I was rewarded for my guts to re-enter at a higher price barely an hour after my exit yesterday when i realised my prognosis of a strong reaction was wrong.  It went up to close at 14.4c today ... this time round , I will be mindful not to sell my kepcorp wrts until kepcorp gets pass $11--  until the big  & small boys who betted  the farm &  shorted big time  into this euro summit get their asses completely burnt."

after that post from 3 jul  , though  kepcorp went through a reaction at 10.95(  which was within my expectations  ) , I stuck to my guns and did not sell out on the reaction  because I wanted to ride my kepcorp wrts all the way past  my $11 barrier as I was very bullish about this fierce rally as mentioned above ... 

 Yesterday I had expected a good Dow for last nite.  I knew the Kepcorp earnings are coming out today 19 jul 5pm ..  I expected kepcorp to break the $11 barrier to about $11.30-40 for this earnings season ... 

With a base of 400 wrts at 12.5c bought earlier on 2 jul above ,    I decided to pyramid up, adding yesterday 330 lots of kepcorp wrts at  14.4c at about  0930 hrs when kepcorp was trading at about $10.95.   see below on "yesterday done order".. This brings my total kepcorp wrts to 730 lots at average price of  13.35c --today it hit a high of 17.4c( see below watchlist ). 

 At about 1553hrs yesterday after hsi hit base & bounced  , kepcorp broke my $11 barrier ( removing  540 lots sitting pretty on ask Queue )  and went up 9c  to 11.09.. it closed at 11.05. 

Last nite the dow went up 103 pts and this morning kepcorp opened gap up and closed almost at day high of 11.24   ..and my wrts rose to 17.1c ... see above watchlist .. 

 At 5pm today Kepcorp announced good 2Q results , a 35.4% rise year on year on property unit gains , paying out div of 18c/shr but expects offshore margin constraints in coming months. 

 I feel that Kepcorp price would be  rather toppish at 11.30-40 ( at least in the short term) and I expect a  STi down reaction anytime now  ( 3040/50 looks peakish )   , so  I will dump 2/3 if not all of my kepcorp wrts tomorrow morning when it comes close .

Looking back , it  has  been a long wild ,  satisfying ride   ever since we called a bottom to kepcorp at 9.60 ( see    8 may post-click here    and  also click here 2 jul post on "Betting on Germany vs Italy with kepcorp wrts  ) 

1 comment:

Anonymous said...

Hi Bille,

Congratulations! Good Call

STI down 60 pts from 3040 and Kepcorp down 20c from 11.28 since your call to this market top..