Catching the Falling Knife Heroes & Zeroes

The month of October had not been too generous for us as investors, even though this is our Budget month. The opening index in October is 1,658.36 and closes at 1672.46, it moves up 0.85%. And in the coming month, November will be a critical month for the US Presidential Election. And for us in Malaysia, will the windows dressing happening again in this year end? 

Catch the falling knife, who will be injured?

In this post, we will talk about a few companies which had posted a not so profitable Quarter Result and the share price dropped immediately in the following day. What happened in the second day (T+2)? But before that, this post is just a case study, this is not a post to urge you to catch the falling knife. Do not be a HERO if you are not well trained or well prepared...

The possible reasons that trigger the investors to panic sell, therefore the share price drop drastically are:
1. Something happened to the Management Team;
2. The Quarterly Result is not as good as expected.

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Double COMBO: GADANG vs MITRA

In my previous post, i talk about the impact of Malaysia Budget towards our FBMKLCI and also construction index. I monitor these 2 counters for past few weeks. The magic might be happening already. (Refer to my previous post on my view of Malaysia Budget 2016 towards our equity market, http://gainvestor10sai.blogspot.my/2015/10/malaysia-budget-2016-when-is-right-time.html)

Let us look at the construction index. There is a cup with handle and the breakout point at 271.42, with a resistance at 284. With the budget announcement coming, perhaps it will challenge the resistance. If the market sentiment is positive, then, it should not be a problem overtaking the 284.

Construction Index

In this post, i gonna roughly going through 2 construction counters, namely GADANG and MITRA. If our Budget 2016 is not disappointing, i think there will be another round of breakout for the construction counters.