Bad karma reaching some greedy people(finally!)

Why I re-entered a long position in Turiya ( formerly Sitt Tatt ) today

1. The company is trading at a 67% discount to its latest NTA

2. The stock has held what on hindsight appears to be a double bottom of an all-time low of 14 - 15 sen in Aug '15 - May '16, after unsuccessfully penetrating the support-turned-resistance of 26.5c (2008 low). Failure to penetrate this key level on the first attempt is understandable given the 26.5 level coincides with the 2005-2008 'double bottom'.

3. The major shareholder holds almost 67% of its outstanding 229 million shares, likely at a much higher entry cost, making the free float extremely small at about 75 million shares.

4. None of the big shareholders sold when the stock vaulted to a May high of 27 sen, and volume shrank when the stock tumbled back down below 20 sen, making the probability of an accumulation phase currently quite high.

5. The chart shows that the stock has been flatlining for almost 4 years, making the likelihood of a further decline much more remote.

6. Even though the latest balance sheet looks dire with 1.743 million cash supporting 48.391 million in borrowings, the latter are likely secured by the company's main asset - Wisma Chase Perdana, currently valued at about 140 million, which can easily offset the net debts of the company if sold. The company is also in a slight net current asset ( ~ 155,000) position.

7. I'm getting in at a cost of M$ 173 less than my original entry of about 20 sen, and after earning M$ 480.20 in net profits after two rounds trading this stock from 2014 till July 2016.


8. In summary, my confidence level for profiting from this stock in the near future is 85%

Hang Seng Index looks likely to be forming a pennant consolidation pattern