"Market theme" is a proven key factor that will influence the share market. When "market theme" start to play in, companies that falls within that theme will see heavy trading interest, or in direct - speculation. Usually, this kind of market theme movement will disregard the underlying company fundamental and past financial records.
For example, if FCPO contract suddenly shot up to more than RM 3000, the next thing you will see is that plantation company will be speculated upwards. Or when the media hype up the news of USD getting stronger against the local MYR, then you will see certain sector like the furniture and gloves sector being speculated upwards.
There is no right or wrong is such speculation. However, one of the main concern is - whether you are in it before the market theme kicks in, or you are only starting to go into it when the market theme already kicked in. Of course, both will yield very different sets of result, and the early birds, for this case, always get the best money.
Earlier this year, there are lots of market theme. Starting from Lim Kang Hoo theme (IWCITY and Ekovest), Jack Ma theme, packaging and logistic theme, then e-commerce, then banking and so on. All these are good if you can forecast it coming, and the main thing moving forward is to forecast which theme is coming next.
As for this, allow me to tell you that our nation will be having the next big event - 14th General Election. Since we did not really experience the election frenzy yet, I think it will be a good to look out for potential targets now.
This time around, I will like to point at some hot election seats. Since we are saying hot hot seats, then Pekan seat should be hot enough, right ? So what is happening over at Pekan ?
Lately, there was a company by the name of Merge Energy Berhad (Merge) which was awarded a RM 158 million construction project in Pekan in March.
Subsequently, Merge went on rampaging upwards as per shown in the chart.
Now, I think this company which is also involved in intensive project in Pekan should not be missed, especially when it is still at it's low level now. Of course, this company is BHS Industries Berhad (BHS - 7241)
As you can see, the technical chart highlights that BHS is currently resting at it's long term support line, which is at the range of RM 0.40. Moreover, it had also started to broke away from it's mid-term down trend line, highlighted in red color. Technically speaking, BHS can be viewed as bullish biased, with good upward potential as volume kicks in.
So what does BHS got to do with election ?
Firstly, BHS is planning a mega township in Pekan, dubbed as GTP (Green Technology Park), whereby energy supplied is created from renewable energy, which used biomass energy from waste products of palm oil plantation, such as empty fruit bunches. Secondly, this GTP will also be housing several factory such as paper mill, corrugated box manufacturing as well as tissue paper and box. The total GDV will be more approx RM 2 billion.
While the above plans are parts of the diversification plan, the original business of BHS is actually printing and publishing. Now with the new printing factory ready, BHS is expecting to kick in more revenue.
As for me, I caught interest in the line highlighted in green where it says - "the government print order which were absent in previous 2 years have now been revived and tenders were called."
I will interpret it as because the general election is drawing very near, hence the demand of print media will rise. Aside from the electronic media, the need of printing such as political magazine, leaflet, and other print media is still an important source for spread of information. For this, I can be expecting millions being poured into it, which will be very beneficial for BHS.
Now BHS can be still considered as a sleeping giant, consolidating at the range of RM 0.40. Will it get awaken by a in the later stage by some election theme speculation ? I don't know, but if it does, make sure you are in it before the big run.
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