Wednesday, 29 August 2012

Jitters landing into Jackson Hole ? - reeling in profits first - Dyna-mac , Ezion , Genting SP

In my previous post dated 22 Aug  " click here : Stealth rally to Jackson Hole on 30 aug ? " , I picked 2 groups of second liner stocks for a 'stealth' rally to Bernanke's speech at Jackson Hole on 31 aug  : Oil and commodity  second liner stocks. 

In particular, I picked second liner  oil stock  Ezion and second liner commodity stock  Sakari.

So far thanks to sheer good luck , Sakari hit the jackpot,  gap up to 1.90 after bouncing off a reaction at 1.41 on a takeover offer  ,  while Ezion today looks like struggling to break past 1.09  after bouncing off a reaction at 1.04  but then came crashing down to breakeven at 1.06 ..    

Meanwhile  as foretold in last postNymex crude  topped out exactly at USD98 as predicted  &  then headed south for a correction  despite Hurricane Isaac which seems to be much tamer than Katrina.  

Kepcorp has already broken down on the very next day right after my last post  ( oops - so i missed that breakdown- sorry ) ..& looks like heading for 11 bounce  then  maybe 10.85

Now that my Jackson Hole stealth rally expiry date is 30 aug  which is tomorrow , and I am not too optimistic about Bernanke's speech at Jackson hole ,  today I thought it appropriate  to bail out  from about 3/4  of recent purchase , to reel in  some profits  as a matter of caution to relieve my sudden bout of jitters. 

One stock that I have missed out to include on my watchlist but recently caught my notice    is oil &gas marine engineering services stock Dyna-mac which had surged like a rocket since  its breakout on 17aug and had hit my short-term target price of 54c this morning. 

The Dow jones news wire this morning reported that Temasek-linked Fullerton Fund  Mgt had bought a stake of 3,880,000 shares   in Dyna-mac on 17 aug.

 I have no clue as to their agenda in this buying exercise  but I think the short-term swing force could have petered out on Dyna-mac for the current swing ( giving the stock rally some pause or sometime for reaction  )  even if there is a takeover by proxy underway from Kepcorp ( who already owns 250,000,000 shares or 27.77% bought in mar 2011 at 35c during IPO  ) which  is a possibility given Kepcorp's many newly awarded contracts of late  requiring subcontracting out to Dyna-mac  ( which apparently possesses some niche expertise, currently operates its yards at full capacity & trades at a nice PEG & does work for Kepcorp's competitors as well ) but maybe unlikely because of  other issues too complicated to discuss here but  anyway I will take at least half profits off the table now if I own any of the shares which unfortunately I don't ....

of course I could be wrong about the profit taking part in light of potential upmoves in future, so take my words with many pinches of salt 

 but I will watch this stock carefully over next few days . and give it a premium seat in  my watchlist.
 




as for genting sp, I am out half  at 1.385 last week , and today out  on another quarter at 1.365 .. thanks to the butterflies in my stomach as my  jackson hole dateline approaches  .

Again, of course I could be wrong in raking in profits now only to regret later in any unexpected upmove ,  but for me , one bird in hand is worth many more  in the bush..  anyway I still got some left ( about 1/4 original qty) , still  lurking in the bush to hedge my bets .. but I will not lose sleep over them  riding into Jackson hole over the weekend, having locked-in most of the profits of recent purchases.. 





No comments: