Free shoutbox @ ShoutMix

Saturday, February 2, 2008

STOCK RECOMMENDATION ~ GEMSTV

BACKGROUND

GemsTV Holdings Limited (“GemsTV”) specializes in manufacturing genuine colored gemstone jewelry in exclusive handcrafted designs which are sold directly to customers through a "reverse auction'' system via television home shopping and the Internet. GemsTV eliminates the need for multiple intermediaries by vertically integrating the traditional gemstone and jewelry supply chain.

IPO price : $1.08
No. of Shares: 1,030,468 m
NAV: SGD $0.228
Current Price: SGD $0.275



Will weak consumer spending in US affect the sales revenue of GemsTV? The thing that I like about GemsTV is this company has a debt free balance sheet and strong net cash.

Technical analysis

Let's have a look on high volume when the price surged up indicated by a white candle from the chart above. On 5th Dec 2007, the price went up from $0.44 to $0.55 with such a high volume of 87.7 m. Later on, the price consolidated for more than a month to $0.25 with a low volume. And then on 24th Jan 2008, we can see quite good volume (7.13 m) noted. Is it a good sign? Is it a good time for you to enter?

Let's see on the trend line. It's obviously a downtrend line. We need to break this line before the stock can reverse its direction. Looking at the chart, it seems that we need to break at $0.310 with a high volume.

RSI and stochastic indicators are showing sign of reversal within the oversold region. :)

RECOMMENDATION

If you are a value investor, I believe now is a good time for you to accumulate the stock. The price is very cheap ($0.275) considering the company has NAV $0.228 and strong net cash.
If you are a trader, we need to see the stock break at $0.310 with a high volume. Once this point broken, we can set a target price at $0.415. WOw more than 50% upside from the current price.

Steady Bull recommends to BUY this stock at $0.275 with a target price $0.415 as downside risk is limited to NAV at $0.228.

Huat arh!!!!!!!!!!!!!! HAPPY CNY 2008

CHANGe YOuR LIFE

Discover the 90/10 Principle. It will change your life (at least the way u react to situations)

What is this principle? 10% of life is made up of what happens to you. 90% of life is decided by how you react.

What does this mean? We really have no control over 10% of what happens to us. We cannot stop the car from breaking down. The plane being late in arriving, which throws our whole schedule off. A driver may cut us off in traffic. We have no control over this 10%. The other 90% is different. You determine the other 90%.

How? By your REACTION. You cannot control a red light, but you can control your reaction. Don't let people fool you; YOU can control how you react.

Let's use an example. You are eating breakfast with your family. Your daughter knocks over a cup of coffee onto your business shirt. You have no control over what just happened. What happens next will be determined by how you react. You curse. You harshly scold your daughter for knocking the cup over. She breaks down in tears. After scolding her, you turn to your spouse and criticize her for placing the cup too close to the edge of the table. A short verbal battle follows. You storm upstairs and change your shirt. Back downstairs, you find your daughter has been too busy crying to finish breakfast and get ready for school. She misses the bus. Your spouse must leave immediately for work. You rush to the car and drive your daughter to school. Because you are late, you drive 40 miles an hour in a 30 mph speed limit. After a 15-minute delay and throwing $60 (traffic fine) away, you arrive at school. Your daughter runs into the building without saying goodbye. After arriving at the office 20 minutes late, Because of how you reacted in the morning.

Why did you have a bad day?
A) Did the coffee cause it?
B) Did your daughter cause it?
C) Did the policeman cause it?
D) Did you cause it?

The answer is D.

You had no control over what happened with the coffee. How you reacted in those 5 seconds is what caused your bad day. Here is what could have and should have happened. Coffee splashes over you. Your daughter is about to cry. You gently say, "It's ok honey, you just need to be more careful next time". Grabbing a towel you rush upstairs. After grabbing a new shirt and your briefcase, you come back down in time to look through the window and see your child getting on the bus. She turns and waves. You and your spouse kiss before you go to work. You arrive 5 minutes early and cheerfully greet the staff. Your boss comments on how good the day you are having.

Notice the difference? Two different scenarios. Both started the same. Both ended different. Why? Because of how you REACTED. You really do not have any control over 10% of what happens. The other 90% was determined by your reaction. Here are some ways to apply the 90/10 principle. If someone says something negative about you, don't be a sponge.

Let the attack roll off like water on glass. You don't have to let the negative comment affect you! React properly and it will not ruin your day. A wrong reaction could result in losing a friend, being fired, getting stressed out etc.

How do you react if someone cuts you off in traffic?
Do you lose your temper? Pound on the steering wheel?
Does your blood pressure rocket?
Do you try and bump them? WHO CARES if you arrive ten seconds later at work?
Why let the cars ruin your drive?

Remember the 90/10 principle, and do not worry about it. You are told you lost your job. Why lose sleep and get irritated? It will work out. Use your worrying energy and time into finding another job. The plane is late; it is going to mangle your schedule for the day. Why take out your frustration on the flight attendant? She has no control over what is going on. Use your time to study, get to know the other passengers. Why get stressed out? It will just make things worse.

Now you know the 90-10 principle. Apply it and you will be amazed at the results. You will lose nothing if you try it. The 90-10 principle is incredible. Very few know and apply this principle. The result? Millions of people are suffering from undeserved stress, trials, problems and heartaches. There never seem to be a success in life. Bad days follow bad days. Terrible things seem to be constantly happening. There is constant stress, lack of joy, and broken relationships. Worry consumes time. Anger breaks friendships and life seems dreary and is not enjoyed to the fullest. Friends are lost. Life is a bore and often seems cruel.

Does this describe you? If so, do not be discouraged. You can be different! Understand and apply the 90/10 principle. It will change your life.

WHaT iS THe MOSt iMPOrTaNT thING? :)

Whatever you do, what counts are EXPERIENCE AND SKILLS and how to combine the two.

LEARN AND NEVER GIVE UP!!!!!!!!!!!!!!!!!!!!!!!

Friday, February 1, 2008

STOCK RECOMMENDATION ~ GEMSTV

GEMSTV (Current Price $0.305)

I will give you a detail analysis tonight. We expect to see a nice rally for this. Technically, it looks pretty good. We just need more volume to break the downtrend. :)

Don't forget some of the brokers give a high target price for Gemstv. We might see $0.415 anytime soon. Huat arh!!!!!!!!!!!!!!!!!

Thursday, January 31, 2008

JObLeSS ClaIMS RISe SHARPLY, DOw TONiTE???

Future for DOW is pointing a lower open (Dow future now -134)as sentiment was badly hurt by a sharp rise in jobless claims from 69,000 to 375,000. As a contrary, jobless rate for Q4 in Singapore fell to 1.6%. It seems very hard for US to avoid recession even though FED has tried their best to cut the rate sharply by 1.25%. What else can US do to avoid another turmoil in the market???? Corporate tax rate??? Let's think about it. :)

FED SLaShED ITs kEy INtEREST RaTEs AgAIN BY 0.50%

As expected, FED cut its rates again ~ FED funds rate to 3% and Discount rate to 3.5%. Stock rallied as soon as FED announced they cut its rates but the rally was short lived.

WHY WHY WHY WHY WHY???? Is it because wall streets has rallied for the past 2 days and price already factor in the rate cuts? Or maybe jobless rate (will be announced on Friday)will give us a hint that recession is on sight????

Let see what will happen to ASIAN market today. Do you think market will cheer the rate cut?? It's interesting to see. Will ASIAN market go upwards even though the closing for DOW was negative (-37.47)???

In my opinion, we will see some relieve rally today. HUAT ARH!!!!!!!!!!!!!!!!